EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0912* SENATE BILL 912 F2 2lr3081 CF HB 734 By: Senator Pinsky Introduced and read first time: February 11, 2022 Assigned to: Rules A BILL ENTITLED AN ACT concerning 1 Higher Education – Student Financial Assistance – Alterations and 2 Appropriation 3 FOR the purpose of requiring the Maryland Higher Education Commission to use a certain 4 annual family income determination when awarding a Guaranteed Access Grant; 5 authorizing the Next Generation Scholars of Maryland Program to continue 6 providing certain services to students when they attend an institution of higher 7 education; altering the maximum award amount for an Educational Assistance 8 Grant; providing that a recipient of a Guaranteed Access Grant who becomes 9 ineligible because of a change in family income shall remain eligible for the full 10 award term applicable to the recipient with a reduced award amount calculated by 11 the Commission; requiring the Governor to include in the annual budget bill a 12 certain appropriation for Delegate Howard P. Rawlings Educational Excellence 13 Awards; altering the qualifications for the 2+2 Transfer Scholarship Program; and 14 generally relating to student financial assistance programs. 15 BY repealing and reenacting, without amendments, 16 Article – Education 17 Section 18–303(a)(3), (b)(6), (c)(1) and (2)(v), and (e), and 18–303.1(a), (c), and (e) 18 Annotated Code of Maryland 19 (2018 Replacement Volume and 2021 Supplement) 20 BY repealing and reenacting, with amendments, 21 Article – Education 22 Section 18–303(d), 18–303.1(d), 18–304(c), and 18–2503(10) 23 Annotated Code of Maryland 24 (2018 Replacement Volume and 2021 Supplement) 25 BY adding to 26 Article – Education 27 Section 18–304(d) 28 2 SENATE BILL 912 Annotated Code of Maryland 1 (2018 Replacement Volume and 2021 Supplement) 2 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3 That the Laws of Maryland read as follows: 4 Article – Education 5 18–303. 6 (a) Subject to subsection (e) of this section, each recipient of a Delegate Howard 7 P. Rawlings Educational Excellence Award shall: 8 (3) Demonstrate a definite financial need to: 9 (i) For an Educational Assistance Grant, the Office; or 10 (ii) For a Guaranteed Access Grant, the Office or an institution of 11 higher education that complies with § 18–303.3 of this subtitle; and 12 (b) Except as provided in subsection (c) of this section, each recipient of a 13 Guaranteed Access Grant shall: 14 (6) Subject to subsection (d) of this section, have an annual family income 15 below a poverty index determined by the Commission; and 16 (c) (1) Subject to paragraph (2) of this subsection, an individual who has 17 successfully obtained a high school diploma by examination under § 11–808 of the Labor 18 and Employment Article is exempt from the requirements of subsection (b) of this section. 19 (2) An individual described under paragraph (1) of this subsection is 20 eligible for a Guaranteed Access Grant if the individual: 21 (v) Subject to subsection (d) of this section, has an annual family 22 income below a poverty index determined by the Commission. 23 (d) (1) To determine the annual family income eligibility of an applicant for a 24 Guaranteed Access Grant, the Office or an institution of higher education that complies 25 with § 18–303.3 of this subtitle may not consider an amount received by the applicant as 26 an earned income credit under § 32 of the Internal Revenue Code. 27 (2) WHEN AWARDING A GUARANTEED ACCESS GRANT, THE 28 COMMISSION SHALL USE THE ANNUAL FAMILY IN COME DETERMINATION U SED 29 WHEN THE STU DENT PREQUALIFIED UN DER SUBSECTION (E)(1) OF THIS SECTION. 30 (e) (1) Except as provided in paragraph (2) of this subsection, a student in 31 grade 7 or grade 8 who applies and qualifies for a Guaranteed Access Grant on the basis of 32 SENATE BILL 912 3 financial need as established by the Commission shall prequalify for a Guaranteed Access 1 Grant to be used at the time of enrollment in an institution of higher education by agreeing 2 in writing, as a secondary and undergraduate student, to: 3 (i) Satisfy the attendance policy of the applicable school; 4 (ii) Refrain from substance abuse; 5 (iii) Provide information required by the Commission or the State 6 Board of Education; 7 (iv) Apply for admission to an institution of higher education during 8 the student’s senior year of high school; 9 (v) Complete and file on a timely basis applications for federal 10 student aid for each year that the student plans to enroll in postsecondary education; 11 (vi) Participate in the Next Generation Scholars of Maryland 12 Program established in § 18–303.1 of this subtitle until the student graduates from high 13 school and matriculates at an institution of higher education; 14 (vii) Maintain a cumulative grade point average of at least 2.5 on a 15 4.0 scale or its equivalent; and 16 (viii) Satisfy any other program requirements set by the Office, the 17 Commission, the State Board of Education, or the State Department of Education. 18 (2) A student in grade 9 or grade 10 shall prequalify for a Guaranteed 19 Access Grant to be used at the time of enrollment in an institution of higher education if 20 the student: 21 (i) Otherwise meets the conditions of paragraph (1) of this 22 subsection; and 23 (ii) 1. Is eligible for free or reduced priced meals; or 24 2. Attends a school that participates in the U.S. Department 25 of Agriculture Community Eligibility Provision and the student is identified by: 26 A. Direct certification; or 27 B. Income information provided by the family of the student 28 to the local school system on an alternative form developed by the Department. 29 18–303.1. 30 (a) (1) In this section the following words have the meanings indicated. 31 4 SENATE BILL 912 (2) “Fund” means the Next Generation Scholars of Maryland Program 1 Fund. 2 (3) “Program” means the Next Generation Scholars of Maryland Program. 3 (c) The Program shall provide guidance and services to students who qualify for 4 a Guaranteed Access Grant in accordance with § 18–303(e) of this subtitle to assist the 5 students in successfully: 6 (1) Completing a college preparatory curriculum; 7 (2) Graduating from high school; 8 (3) Matriculating at an institution of higher education as defined in § 9 18–303 of this subtitle; and 10 (4) Making timely progress to complete a degree program. 11 (d) (1) The Department shall: 12 [(1)] (I) Publicize the Program through community outreach and 13 marketing materials; 14 [(2)] (II) Award grants to nonprofit organizations to administer the 15 Program; 16 [(3)] (III) Solicit applications from nonprofit organizations to administer 17 the Program in local school systems; and 18 [(4)] (IV) Give priority to applications: 19 [(i)] 1. From Maryland–based nonprofit organizations; and 20 [(ii)] 2. That include business and institution of higher education 21 partners. 22 (2) THE PROGRAM MAY CONTINUE TO PROVIDE SERVICES TO 23 STUDENTS WHEN THEY A TTEND AN INSTITUTION OF HIGHER EDUCATION . 24 (e) In accordance with subsection (c) of this section, the services to be provided to 25 students participating in the Program shall include: 26 (1) A high school graduation plan; 27 (2) Summer work or internship opportunities; 28 SENATE BILL 912 5 (3) Financial aid literacy assistance; 1 (4) Career interest assessments; 2 (5) Mentorship and one–on–one counseling; 3 (6) Visits to college campuses and workplaces; 4 (7) An intensive summer bridge or matriculation assistance program for 5 students entering an institution of higher education directly from high school; and 6 (8) A plan to matriculate and graduate from an institution of higher 7 education. 8 18–304. 9 (c) (1) Except as provided in paragraphs (2) and (3) of this subsection, a 10 Delegate Howard P. Rawlings Educational Excellence Award may be awarded in $100 11 increments. 12 (2) (i) The amount of an Educational Assistance Grant made to a 13 student in the student’s first 2 academic years of enrollment may not be less than $400 or 14 more than [$3,000] $7,000. 15 (ii) Beginning in the third academic year of enrollment and for each 16 academic year thereafter: 17 1. If the student successfully completed at least 30 credits in 18 the prior academic year, the amount of an Educational Assistance Grant made to a student 19 may not be less than $400 or more than [$3,000] $7,000; or 20 2. If the student successfully completed at least 24 but less 21 than 30 credits in the prior academic year, the award amount shall be equal to the amount 22 the student would have otherwise received multiplied by the ratio of the number of credits 23 successfully completed divided by 30. 24 (3) (i) All applicants who fulfill the requirements established in § 25 18–303(a) and (b) of this subtitle shall receive a Guaranteed Access Grant. 26 (ii) [The] EXCEPT AS PROVIDED IN SUBPARAGRAPH (IV) OF 27 THIS PARAGRAPH , THE amount of a Guaranteed Access Grant made to a student in the 28 student’s first 2 academic years of enrollment shall be equal to 100 percent of the student’s 29 financial need as determined by the Office, not to exceed the equivalent annual expenses 30 of a full–time resident undergraduate at the 4–year public institution of higher education 31 within the University System of Maryland, other than the University of Maryland Global 32 Campus and University of Maryland, Baltimore Campus, with the highest annual expenses 33 6 SENATE BILL 912 for a full–time resident undergraduate. 1 (iii) [Beginning] EXCEPT AS PROVIDED IN SUBPARAGRAPH (IV) 2 OF THIS PARAGRAPH , BEGINNING in the third academic year of enrollment and for each 3 academic year thereafter: 4 1. If the student successfully completed at least 30 credits in 5 the prior academic year, the award amount shall be equal to 100 percent of the student’s 6 financial need as determined by the Office, not to exceed the equivalent annual expenses 7 of a full–time resident undergraduate at the 4–year public institution of higher education 8 within the University System of Maryland, other than the University of Maryland Global 9 Campus and University of Maryland, Baltimore Campus, with the highest annual expenses 10 for a full–time resident undergraduate; or 11 2. If the student successfully completed at least 24 but less 12 than 30 credits in the prior academic year, the award amount shall be equal to 100 percent 13 multiplied by the ratio of the number of credits successfully completed divided by 30. 14 (IV) IF A RECIPIENT OF A GUARANTEED ACCESS GRANT 15 BECOMES INELIGIBLE B ECAUSE OF A CHANGE I N FAMILY INCOME , THE RECIPIENT 16 SHALL REMAIN ELIGIBL E FOR THE AWARD FOR THE FULL AWARD TERM APPLICABLE 17 TO THE RECIPIENT UND ER THIS SUBTITLE , BUT THE COMMISSION SHALL REDU CE 18 THE AWARD BASED ON A SLIDING SCALE DEVELOPED BY TH E COMMISSION. 19 (D) BEGINNING IN FISCAL Y EAR 2024, THE GOVERNOR SHALL INCLUD E IN 20 THE ANNUAL BUDGET BI LL AN APPROPRIATION OF $75,000,000 FOR DELEGATE 21 HOWARD P. RAWLINGS EDUCATIONAL EXCELLENCE AWARDS MADE UNDER THI S 22 SUBTITLE. 23 18–2503. 24 To qualify for a 2+2 Transfer Scholarship, an applicant shall: 25 (10) Have demonstrated financial need, defined [as a federally calculated 26 expected family contribution (EFC) of $10,000 or less as reported on the student’s FAFSA] 27 BY THE COMMISSION; and 28 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 29 1, 2022. 30