EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0522*
HOUSE BILL 522
F2 3lr1617
By: Delegates Lopez, Feldmark, Griffith, Harris, Kaufman, Pasteur, Queen,
Rogers, Ruth, Stewart, Terrasa, and Vogel
Introduced and read first time: February 1, 2023
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
Institutions of Postsecondary Education – Institutional Debt – Report 2
FOR the purpose of requiring institutions of postsecondary education to submit a report on 3
institutional debt to the Maryland Higher Education Commission each year; 4
authorizing the Commission to assess a civil penalty against an institution for failure 5
to submit a report or knowingly including inaccurate information in a report; 6
establishing certain notice, appeal, and hearing procedures before a civil penalty 7
may be assessed against an institution; and generally relating to institutional debt 8
reporting by institutions of postsecondary education. 9
BY adding to 10
Article – Education 11
Section 11–212 12
Annotated Code of Maryland 13
(2022 Replacement Volume) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Education 17
11–212. 18
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 19
INDICATED. 20
(2) “ADMINISTRATIVE HOLD ” MEANS ANY HOLD OR LIMITATION ON A 21
STUDENT’S ACCOUNT AT AN INSTITUTION OF POSTSECONDARY EDUCATION THAT 22
PREVENTS THE STUDENT FROM ENROLLING IN CO URSES, REQUESTING OR 23 2 HOUSE BILL 522
OBTAINING A TRANSCRIPT, USING FACILITIES , OR OTHERWISE LIMITING THE 1
STUDENT’S ACCESS TO THE INSTITUTION ’S FACILITIES OR RESO URCES. 2
(3) “CHARGE OFF” MEANS AN ACCOUNTING MECHANISM BY WHICH 3
AN INSTITUTION OF POSTSECONDARY EDUCATION INDICATES IT NO LONGER 4
EXPECTS TO COLLECT A N INSTITUTIONAL DEBT , REGARDLESS OF WHETHE R THE 5
INSTITUTION: 6
(I) REMOVES THE DEBT FROM ITS RECORDS; 7
(II) PURSUES THE STUDENT O WING THE DEBT ; 8
(III) ACCEPTS PAYMENT FOR T HE DEBT; OR 9
(IV) SELLS THE DEBT. 10
(4) “DEMOGRAPHIC CATEGORIES” MEANS THE FOLLOWING GROUPS 11
AND POPULATIONS : 12
(I) RACE; 13
(II) ETHNICITY; 14
(III) AGE; 15
(IV) GENDER; 16
(V) IN–STATE OR OUT–OF–STATE RESIDENCY; 17
(VI) ENROLLMENT STATUS ; AND 18
(VII) DEGREE, CERTIFICATE, OR CREDENTIAL CONFERRED OR 19
PURSUED. 20
(5) (I) “INSTITUTIONAL DEBT ” MEANS AN EXTENSION O F CREDIT, 21
DEBT, OR OBLIGATION OWED O R INCURRED BY A STUD ENT TO AN INSTITUTIO N OF 22
POSTSECONDARY EDUCAT ION. 23
(II) “INSTITUTIONAL DEBT ” INCLUDES CREDIT, DEBT, OR 24
OBLIGATION FOR : 25
1. TUITION CHARGES; 26
HOUSE BILL 522 3
2. ROOM AND BOARD CHARGES; AND 1
3. FINES AND FEES. 2
(6) “NONJUDICIAL COLLECTIO N” MEANS COLLECTION OF 3
INSTITUTIONAL DEBT O WED BY A STUDENT TO A STATE AGENCY BY THE CENTRAL 4
COLLECTION UNIT IN THE DEPARTMENT OF BUDGET AND MANAGEMENT . 5
(7) “VOLUNTARY PAYMENT ” MEANS A PAYMEN T MADE BY A STUDENT 6
TO AN INSTITUTION OF POSTSECONDARY EDUCATION TO PAY AN INSTITUTIO NAL 7
DEBT, IN WHOLE OR IN PART , THAT WAS NOT MADE IN ACCORDANCE WITH A COURT 8
JUDGMENT OR A NONJUD ICIAL COLLECTION . 9
(B) (1) ON OR BEFORE OCTOBER 1, 2024, AND EACH OCTOBER 1 10
THEREAFTER , AN INSTITUTION OF POSTSECONDARY EDUCATION SHALL SUBMIT TO 11
THE COMMISSION A REPORT ON INSTITUTIONAL DEBT IN ACCORDANCE WITH 12
SUBSECTION (C) OF THIS SECTION. 13
(2) ON OR BEFORE DECEMBER 1, 2024, AND EACH DECEMBER 1 14
THEREAFTER , THE COMMISSION SHALL , IN ACCORDANCE WITH § 2–1257 OF THE 15
STATE GOVERNMENT ARTICLE, SUBMIT A REPORT TO T HE GENERAL ASSEMBLY 16
SUMMARIZING THE REPORT S SUBMITTED TO THE COMMISSION BY INSTITU TIONS OF 17
POSTSECONDARY EDUCAT ION UNDER THIS SECTION . 18
(C) THE REPORT REQUIRED UNDER SUBSECTION (B) OF THIS SECTION 19
SHALL INCLUDE THE FOLLOWING INFORM ATION FROM THE PREVIOUS FISCAL YEAR: 20
(1) TOTAL STUDENT ENROLLMENT , DISAGGREGATED BY 21
DEMOGRAPHIC CATEGORI ES; 22
(2) TOTAL DOLLAR AMOUNT OF INSTITUTIO NAL DEBT , 23
DISAGGREGATED BY : 24
(I) DEMOGRAPHIC CATEGORIE S; 25
(II) NUMBER OF ENROLLED AN D FORMER STUDENTS WH O HOLD 26
INSTITUTIONAL DEBT ; 27
(III) LENGTH OF TIME INSTIT UTIONAL DEBT HAS BEE N OWED; 28
(IV) TYPE OF CHARGES FOR W HICH INSTITUTIONAL D EBT WAS 29
INCURRED; AND 30
4 HOUSE BILL 522
(V) PERCENTAGE AND TOTAL NUMBER OF STUDENTS WITH 1
INSTITUTIONAL DEBT WHO RECEIVED A FEDERAL PELL GRANT; 2
(3) STATUS AND COLLECTION OF INSTITUTIONAL DEB T, INCLUDING: 3
(I) PERCENTAGE AND TOTAL AMOUNT OF INSTITUTIONAL 4
DEBT HELD IN GOOD ST ANDING AND PAST DUE ; 5
(II) NUMBER OF ENROLLED ST UDENTS AND FORMER ST UDENTS 6
WHO MADE VOLUNTARY PAYMENTS T O THE INSTITUTION ; 7
(III) PERCENTAGE OF AND TOT AL AMOUNT OF INSTITUTIONAL 8
DEBT CHARGED OFF ; 9
(IV) NUMBER OF STUDENT ACC OUNTS REPORTED TO A CREDIT 10
REPORTING AGENCY ; 11
(V) PERCENTAGE AND NUMBER OF STUDENT ACCOUNTS 12
REFERRED TO A THIRD PARTY FOR DEBT COLLECTION OR SALE , INCLUDING DEBT 13
COLLECTION AGENCIES , DEBT COLLECTORS , AND DEBT BUYERS ; 14
(VI) PERCENTAGE AND NUMBER OF STUDENT ACCOUNTS 15
SUBJECT TO LITIGATIO N BY THE INSTITUTION ; 16
(VII) PERCENTAGE AND NUMBER OF STUDENT ACCOUNTS 17
SUBJECT TO DEBT COLL ECTION BY THE INSTIT UTION, INCLUDING INSTALLMENT 18
PLANS AND VOLUNTARY PAYMENT S; AND 19
(VIII) FOR PUBLIC INSTITUTIO NS ONLY, PERCENTAGE AND 20
NUMBER OF STUDENT AC COUNTS REFERRED TO N ONJUDICIAL COLLECTIO N; 21
(4) ADMINISTRATIVE HOLD A CTIONS BY THE INSTIT UTION, 22
INCLUDING: 23
(I) NUMBER OF ENROLLED STUDENTS AN D FORMER STUDENTS 24
WHOSE TRANSCRIPTS HA VE BEEN WITHHELD AND THE LENGTH OF TI ME HELD; AND 25
(II) NUMBER OF ENROLLED ST UDENTS AND FORMER ST UDENTS 26
WHOSE DIPLOMA S HAVE BEEN WITHHELD AND THE LENGTH OF TIME H ELD; 27
(5) A LIST OF PERSONS USE D BY THE INSTITUTION FOR 28
INSTITUTIONAL DEBT –RELATED ACTIVITIES , INCLUDING ORIGINATIN G LOANS, 29
ESTABLISHING AND FAC ILITATING INSTALLMEN T PLANS OR DEBT PAYMENT , AND 30 HOUSE BILL 522 5
INITIATING LAWSUITS ; 1
(6) A COPY OF ANY MODEL IN STRUMENT USED BY THE INSTITUTION 2
TO ESTABLISH AN INSTITU TIONAL DEBT , INCLUDING A PROMISSO RY NOTE, AN 3
ENROLLMENT AGREEMENT , OR A CONTRACT ; 4
(7) A SUMMARY OF AND CITATION TO THE INSTITUTION’S POLICIES 5
RELATING TO AN ENROLLED STUDENT’S FINANCIAL OBLIGATION S, INCLUDING: 6
(I) ADMINISTRATIVE HOLDS; 7
(II) DEBT COLLECTION ; AND 8
(III) REPORTS TO CREDIT REP ORTING AGENCIES ; AND 9
(8) ANY OTHER INFORMATION THE COMMISSION DETERMINES IS 10
RELEVANT TO EVALUATI NG INSTITUTIONAL DEB TS. 11
(D) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO REQUIRE AN 12
INSTITUTION OF POSTS ECONDARY EDUCATION T O REPORT PERSONAL ID ENTIFYING 13
INFORMATION OF AN EN ROLLED STUDENT OR A FORMER STUDENT . 14
(E) (1) THE COMMISSION MAY ASSESS A PENALTY AGAINST AN 15
INSTITUTION OF POSTS ECONDARY EDUCATION IF THE INSTITUTION FAILS TO 16
SUBMIT A REPORT REQUIRED UN DER SUBSECTION (B) OF THIS SECTION OR 17
KNOWINGLY INCLUDES I NACCURATE INFORMATIO N IN THE REPORT AS 18
DETERMINED BY THE COMMISSION. 19
(2) (I) BEFORE ASSESSING A PE NALTY, THE COMMISSION SHALL 20
SEND THE INSTITUTION OF POSTSECONDARY EDU CATION A NOTICE OF THE 21
CHARGES AGAINST THE INSTITUTION AND GIVE THE INSTITUTION AN OPPOR TUNITY 22
WITHIN 20 DAYS OF THE DATE OF RECEIPT OF THE NOTIC E TO REQUEST A HEARING . 23
(II) A NOTICE OF CHARGES UN DER SUBPARAGRAPH (I) OF THIS 24
PARAGRAPH SHALL : 25
1. DESCRIBE THE DEFICIENCIES IN THE REPORT; AND 26
2. DIRECT THE INSTITUTIO N TO CORRECT THE 27
DEFICIENCIES WITHIN 30 DAYS FROM THE DAY TH E INSTITUTION RECEIV ED THE 28
NOTICE FROM THE COMMISSION. 29
(3) IF THE INSTITUTION OF POSTSECONDARY EDUCAT ION REQUESTS 30 6 HOUSE BILL 522
A HEARING WITHIN THE 20–DAY PERIOD: 1
(I) THE COMMISSION SHALL PROM PTLY HOLD A HEARING , BUT 2
NOT LATER THAN 60 DAYS AFTER RECEIPT O F THE REQUEST FOR A HEARING; AND 3
(II) THE INSTITUTION SHALL HAVE THE OPPORTUNITY TO BE 4
HEARD PUBLICLY BEFOR E THE COMMISSION IN THE INSTITUTION’S OWN DEFENSE , 5
IN PERSON, AND BY COUNSEL. 6
(4) IF THE COMMISSION DETERMINES THAT AN I NSTITUTION OF 7
POSTSECONDARY EDUCATION FAILS TO SUBMIT THE REPORT REQUIRED UNDE R 8
SUBSECTION (B) OF THIS SECTION OR K NOWINGLY INCLUDES IN ACCURATE 9
INFORMATION IN THE REPORT , THE COMMISSION MAY IMPOSE A CIVIL P ENALTY, 10
NOT EXCEEDING $10,000, FOR EACH VIOLATION . 11
(F) THE COMMISSION SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 12
SECTION. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14
1, 2023. 15