Maryland 2023 Regular Session

Maryland House Bill HB522 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0522
6	6
7	7	HOUSE BILL 522
8	8	F2 3lr1617
9	9
10	10	By: Delegates Lopez, Feldmark, Griffith, Harris, Kaufman, Pasteur, Queen,
11	11	Rogers, Ruth, Stewart, Terrasa, and Vogel
12	12	Introduced and read first time: February 1, 2023
13	13	Assigned to: Appropriations
14	14
15	15	A BILL ENTITLED
16	16
17	17	AN ACT concerning 1
18	18
19	19	Institutions of Postsecondary Education – Institutional Debt – Report 2
20	20
21	21	FOR the purpose of requiring institutions of postsecondary education to submit a report on 3
22	22	institutional debt to the Maryland Higher Education Commission each year; 4
23	23	authorizing the Commission to assess a civil penalty against an institution for failure 5
24	24	to submit a report or knowingly including inaccurate information in a report; 6
25	25	establishing certain notice, appeal, and hearing procedures before a civil penalty 7
26	26	may be assessed against an institution; and generally relating to institutional debt 8
27	27	reporting by institutions of postsecondary education. 9
28	28
29	29	BY adding to 10
30	30	Article – Education 11
31	31	Section 11–212 12
32	32	Annotated Code of Maryland 13
33	33	(2022 Replacement Volume) 14
34	34
35	35	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
36	36	That the Laws of Maryland read as follows: 16
37	37
38	38	Article – Education 17
39	39
40	40	11–212. 18
41	41
42	42	(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 19
43	43	INDICATED. 20
44	44
45	45	(2) “ADMINISTRATIVE HOLD ” MEANS ANY HOLD OR LIMITATION ON A 21
46	46	STUDENT’S ACCOUNT AT AN INSTITUTION OF POSTSECONDARY EDUCATION THAT 22
47	47	PREVENTS THE STUDENT FROM ENROLLING IN CO URSES, REQUESTING OR 23 2 HOUSE BILL 522
48	48
49	49
50	50	OBTAINING A TRANSCRIPT, USING FACILITIES , OR OTHERWISE LIMITING THE 1
51	51	STUDENT’S ACCESS TO THE INSTITUTION ’S FACILITIES OR RESO URCES. 2
52	52
53	53	(3) “CHARGE OFF” MEANS AN ACCOUNTING MECHANISM BY WHICH 3
54	54	AN INSTITUTION OF POSTSECONDARY EDUCATION INDICATES IT NO LONGER 4
55	55	EXPECTS TO COLLECT A N INSTITUTIONAL DEBT , REGARDLESS OF WHETHE R THE 5
56	56	INSTITUTION: 6
57	57
58	58	(I) REMOVES THE DEBT FROM ITS RECORDS; 7
59	59
60	60	(II) PURSUES THE STUDENT O WING THE DEBT ; 8
61	61
62	62	(III) ACCEPTS PAYMENT FOR T HE DEBT; OR 9
63	63
64	64	(IV) SELLS THE DEBT. 10
65	65
66	66	(4) “DEMOGRAPHIC CATEGORIES” MEANS THE FOLLOWING GROUPS 11
67	67	AND POPULATIONS : 12
68	68
69	69	(I) RACE; 13
70	70
71	71	(II) ETHNICITY; 14
72	72
73	73	(III) AGE; 15
74	74
75	75	(IV) GENDER; 16
76	76
77	77	(V) IN–STATE OR OUT–OF–STATE RESIDENCY; 17
78	78
79	79	(VI) ENROLLMENT STATUS ; AND 18
80	80
81	81	(VII) DEGREE, CERTIFICATE, OR CREDENTIAL CONFERRED OR 19
82	82	PURSUED. 20
83	83
84	84	(5) (I) “INSTITUTIONAL DEBT ” MEANS AN EXTENSION O F CREDIT, 21
85	85	DEBT, OR OBLIGATION OWED O R INCURRED BY A STUD ENT TO AN INSTITUTIO N OF 22
86	86	POSTSECONDARY EDUCAT ION. 23
87	87
88	88	(II) “INSTITUTIONAL DEBT ” INCLUDES CREDIT, DEBT, OR 24
89	89	OBLIGATION FOR : 25
90	90
91	91	1. TUITION CHARGES; 26
92	92	HOUSE BILL 522 3
93	93
94	94
95	95	2. ROOM AND BOARD CHARGES; AND 1
96	96
97	97	3. FINES AND FEES. 2
98	98
99	99	(6) “NONJUDICIAL COLLECTIO N” MEANS COLLECTION OF 3
100	100	INSTITUTIONAL DEBT O WED BY A STUDENT TO A STATE AGENCY BY THE CENTRAL 4
101	101	COLLECTION UNIT IN THE DEPARTMENT OF BUDGET AND MANAGEMENT . 5
102	102
103	103	(7) “VOLUNTARY PAYMENT ” MEANS A PAYMEN T MADE BY A STUDENT 6
104	104	TO AN INSTITUTION OF POSTSECONDARY EDUCATION TO PAY AN INSTITUTIO NAL 7
105	105	DEBT, IN WHOLE OR IN PART , THAT WAS NOT MADE IN ACCORDANCE WITH A COURT 8
106	106	JUDGMENT OR A NONJUD ICIAL COLLECTION . 9
107	107
108	108	(B) (1) ON OR BEFORE OCTOBER 1, 2024, AND EACH OCTOBER 1 10
109	109	THEREAFTER , AN INSTITUTION OF POSTSECONDARY EDUCATION SHALL SUBMIT TO 11
110	110	THE COMMISSION A REPORT ON INSTITUTIONAL DEBT IN ACCORDANCE WITH 12
111	111	SUBSECTION (C) OF THIS SECTION. 13
112	112
113	113	(2) ON OR BEFORE DECEMBER 1, 2024, AND EACH DECEMBER 1 14
114	114	THEREAFTER , THE COMMISSION SHALL , IN ACCORDANCE WITH § 2–1257 OF THE 15
115	115	STATE GOVERNMENT ARTICLE, SUBMIT A REPORT TO T HE GENERAL ASSEMBLY 16
116	116	SUMMARIZING THE REPORT S SUBMITTED TO THE COMMISSION BY INSTITU TIONS OF 17
117	117	POSTSECONDARY EDUCAT ION UNDER THIS SECTION . 18
118	118
119	119	(C) THE REPORT REQUIRED UNDER SUBSECTION (B) OF THIS SECTION 19
120	120	SHALL INCLUDE THE FOLLOWING INFORM ATION FROM THE PREVIOUS FISCAL YEAR: 20
121	121
122	122	(1) TOTAL STUDENT ENROLLMENT , DISAGGREGATED BY 21
123	123	DEMOGRAPHIC CATEGORI ES; 22
124	124
125	125	(2) TOTAL DOLLAR AMOUNT OF INSTITUTIO NAL DEBT , 23
126	126	DISAGGREGATED BY : 24
127	127
128	128	(I) DEMOGRAPHIC CATEGORIE S; 25
129	129
130	130	(II) NUMBER OF ENROLLED AN D FORMER STUDENTS WH O HOLD 26
131	131	INSTITUTIONAL DEBT ; 27
132	132
133	133	(III) LENGTH OF TIME INSTIT UTIONAL DEBT HAS BEE N OWED; 28
134	134
135	135	(IV) TYPE OF CHARGES FOR W HICH INSTITUTIONAL D EBT WAS 29
136	136	INCURRED; AND 30
137	137	4 HOUSE BILL 522
138	138
139	139
140	140	(V) PERCENTAGE AND TOTAL NUMBER OF STUDENTS WITH 1
141	141	INSTITUTIONAL DEBT WHO RECEIVED A FEDERAL PELL GRANT; 2
142	142
143	143	(3) STATUS AND COLLECTION OF INSTITUTIONAL DEB T, INCLUDING: 3
144	144
145	145	(I) PERCENTAGE AND TOTAL AMOUNT OF INSTITUTIONAL 4
146	146	DEBT HELD IN GOOD ST ANDING AND PAST DUE ; 5
147	147
148	148	(II) NUMBER OF ENROLLED ST UDENTS AND FORMER ST UDENTS 6
149	149	WHO MADE VOLUNTARY PAYMENTS T O THE INSTITUTION ; 7
150	150
151	151	(III) PERCENTAGE OF AND TOT AL AMOUNT OF INSTITUTIONAL 8
152	152	DEBT CHARGED OFF ; 9
153	153
154	154	(IV) NUMBER OF STUDENT ACC OUNTS REPORTED TO A CREDIT 10
155	155	REPORTING AGENCY ; 11
156	156
157	157	(V) PERCENTAGE AND NUMBER OF STUDENT ACCOUNTS 12
158	158	REFERRED TO A THIRD PARTY FOR DEBT COLLECTION OR SALE , INCLUDING DEBT 13
159	159	COLLECTION AGENCIES , DEBT COLLECTORS , AND DEBT BUYERS ; 14
160	160
161	161	(VI) PERCENTAGE AND NUMBER OF STUDENT ACCOUNTS 15
162	162	SUBJECT TO LITIGATIO N BY THE INSTITUTION ; 16
163	163
164	164	(VII) PERCENTAGE AND NUMBER OF STUDENT ACCOUNTS 17
165	165	SUBJECT TO DEBT COLL ECTION BY THE INSTIT UTION, INCLUDING INSTALLMENT 18
166	166	PLANS AND VOLUNTARY PAYMENT S; AND 19
167	167
168	168	(VIII) FOR PUBLIC INSTITUTIO NS ONLY, PERCENTAGE AND 20
169	169	NUMBER OF STUDENT AC COUNTS REFERRED TO N ONJUDICIAL COLLECTIO N; 21
170	170
171	171	(4) ADMINISTRATIVE HOLD A CTIONS BY THE INSTIT UTION, 22
172	172	INCLUDING: 23
173	173
174	174	(I) NUMBER OF ENROLLED STUDENTS AN D FORMER STUDENTS 24
175	175	WHOSE TRANSCRIPTS HA VE BEEN WITHHELD AND THE LENGTH OF TI ME HELD; AND 25
176	176
177	177	(II) NUMBER OF ENROLLED ST UDENTS AND FORMER ST UDENTS 26
178	178	WHOSE DIPLOMA S HAVE BEEN WITHHELD AND THE LENGTH OF TIME H ELD; 27
179	179
180	180	(5) A LIST OF PERSONS USE D BY THE INSTITUTION FOR 28
181	181	INSTITUTIONAL DEBT –RELATED ACTIVITIES , INCLUDING ORIGINATIN G LOANS, 29
182	182	ESTABLISHING AND FAC ILITATING INSTALLMEN T PLANS OR DEBT PAYMENT , AND 30 HOUSE BILL 522 5
183	183
184	184
185	185	INITIATING LAWSUITS ; 1
186	186
187	187	(6) A COPY OF ANY MODEL IN STRUMENT USED BY THE INSTITUTION 2
188	188	TO ESTABLISH AN INSTITU TIONAL DEBT , INCLUDING A PROMISSO RY NOTE, AN 3
189	189	ENROLLMENT AGREEMENT , OR A CONTRACT ; 4
190	190
191	191	(7) A SUMMARY OF AND CITATION TO THE INSTITUTION’S POLICIES 5
192	192	RELATING TO AN ENROLLED STUDENT’S FINANCIAL OBLIGATION S, INCLUDING: 6
193	193
194	194	(I) ADMINISTRATIVE HOLDS; 7
195	195
196	196	(II) DEBT COLLECTION ; AND 8
197	197
198	198	(III) REPORTS TO CREDIT REP ORTING AGENCIES ; AND 9
199	199
200	200	(8) ANY OTHER INFORMATION THE COMMISSION DETERMINES IS 10
201	201	RELEVANT TO EVALUATI NG INSTITUTIONAL DEB TS. 11
202	202
203	203	(D) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO REQUIRE AN 12
204	204	INSTITUTION OF POSTS ECONDARY EDUCATION T O REPORT PERSONAL ID ENTIFYING 13
205	205	INFORMATION OF AN EN ROLLED STUDENT OR A FORMER STUDENT . 14
206	206
207	207	(E) (1) THE COMMISSION MAY ASSESS A PENALTY AGAINST AN 15
208	208	INSTITUTION OF POSTS ECONDARY EDUCATION IF THE INSTITUTION FAILS TO 16
209	209	SUBMIT A REPORT REQUIRED UN DER SUBSECTION (B) OF THIS SECTION OR 17
210	210	KNOWINGLY INCLUDES I NACCURATE INFORMATIO N IN THE REPORT AS 18
211	211	DETERMINED BY THE COMMISSION. 19
212	212
213	213	(2) (I) BEFORE ASSESSING A PE NALTY, THE COMMISSION SHALL 20
214	214	SEND THE INSTITUTION OF POSTSECONDARY EDU CATION A NOTICE OF THE 21
215	215	CHARGES AGAINST THE INSTITUTION AND GIVE THE INSTITUTION AN OPPOR TUNITY 22
216	216	WITHIN 20 DAYS OF THE DATE OF RECEIPT OF THE NOTIC E TO REQUEST A HEARING . 23
217	217
218	218	(II) A NOTICE OF CHARGES UN DER SUBPARAGRAPH (I) OF THIS 24
219	219	PARAGRAPH SHALL : 25
220	220
221	221	1. DESCRIBE THE DEFICIENCIES IN THE REPORT; AND 26
222	222
223	223	2. DIRECT THE INSTITUTIO N TO CORRECT THE 27
224	224	DEFICIENCIES WITHIN 30 DAYS FROM THE DAY TH E INSTITUTION RECEIV ED THE 28
225	225	NOTICE FROM THE COMMISSION. 29
226	226
227	227	(3) IF THE INSTITUTION OF POSTSECONDARY EDUCAT ION REQUESTS 30 6 HOUSE BILL 522
228	228
229	229
230	230	A HEARING WITHIN THE 20–DAY PERIOD: 1
231	231
232	232	(I) THE COMMISSION SHALL PROM PTLY HOLD A HEARING , BUT 2
233	233	NOT LATER THAN 60 DAYS AFTER RECEIPT O F THE REQUEST FOR A HEARING; AND 3
234	234
235	235	(II) THE INSTITUTION SHALL HAVE THE OPPORTUNITY TO BE 4
236	236	HEARD PUBLICLY BEFOR E THE COMMISSION IN THE INSTITUTION’S OWN DEFENSE , 5
237	237	IN PERSON, AND BY COUNSEL. 6
238	238
239	239	(4) IF THE COMMISSION DETERMINES THAT AN I NSTITUTION OF 7
240	240	POSTSECONDARY EDUCATION FAILS TO SUBMIT THE REPORT REQUIRED UNDE R 8
241	241	SUBSECTION (B) OF THIS SECTION OR K NOWINGLY INCLUDES IN ACCURATE 9
242	242	INFORMATION IN THE REPORT , THE COMMISSION MAY IMPOSE A CIVIL P ENALTY, 10
243	243	NOT EXCEEDING $10,000, FOR EACH VIOLATION . 11
244	244
245	245	(F) THE COMMISSION SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 12
246	246	SECTION. 13
247	247
248	248	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14
249	249	1, 2023. 15