EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0923*
HOUSE BILL 923
F2 3lr0732
CF SB 662
By: Delegates B. Barnes, Solomon, and Smith
Introduced and read first time: February 9, 2023
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
Higher Education – Appointment of Secretary and Student 2
Financial Assistance – Alterations 3
FOR the purpose of providing that the Secretary of Higher Education is appointed by, and 4
serves at the pleasure of, the Governor; altering eligibility criteria for, and the 5
process for awards from, the Delegate Howard P. Rawlings Program of Educational 6
Excellence Awards; altering eligibility criteria for services provided to students 7
through the Next Generation Scholars of Maryland Program; altering the 8
administration of the Maryland Community College Promise Scholarship to require 9
community colleges to award scholarships from the Maryland Community College 10
Promise Scholarship in place of the Office of Student Financial Assistance within the 11
Maryland Higher Education Commission; repealing certain provisions of law related 12
to the intent of the General Assembly for the Commission to be reorganized to 13
establish the Office of Student Financial Assistance as a separate independent 14
agency in a certain fiscal year; and generally relating to the appointment of the 15
Secretary of Higher Education and student financial assistance programs in the 16
State. 17
BY repealing and reenacting, with amendments, 18
Article – Education 19
Section 11–104(a) and (b), 18–303, 18–303.1(c) and (d), 18–303.3, 18–304, 18–307, 20
18–3601, 18–3602, 18–3603, and 18–3604 21
Annotated Code of Maryland 22
(2022 Replacement Volume) 23
BY adding to 24
Article – Education 25
Section 18–3603.1 26
Annotated Code of Maryland 27
(2022 Replacement Volume) 28
2 HOUSE BILL 923
BY repealing 1
Chapter 639 of the Acts of the General Assembly of 2022 2
Section 3 3
BY repealing 4
Chapter 640 of the Acts of the General Assembly of 2022 5
Section 3 6
BY repealing and reenacting, with amendments, 7
Article – Education 8
Section 18–303 and 18–303.3 9
Annotated Code of Maryland 10
(2022 Replacement Volume) 11
(As enacted by Section 1 of this Act) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Education 15
11–104. 16
(a) [(1) In accordance with paragraph (2) of this subsection, the] THE Governor 17
shall appoint, with the advice and consent of the Senate, a Secretary of Higher Education. 18
[(2) (i) The Commission shall submit to the Governor the names of 3 19
nominees for the position of Secretary from which the Governor shall make the 20
appointment. 21
(ii) The Governor may reject the list and request the Commission to 22
submit the names of additional nominees.] 23
(b) (1) The Secretary shall: 24
(i) Select, organize, and direct the staff of the Commission; 25
(ii) Perform the duties the Commission assigns; 26
(iii) See that the policies and decisions of the Commission are carried 27
out; 28
(iv) Serve at the pleasure of the [Commission] GOVERNOR; and 29
(v) Be a member of the Governor’s Executive Council. 30
(2) (i) After consideration of the recommendations of the Commission, 31
the Governor shall include in the annual budget request the salary for the Secretary. 32 HOUSE BILL 923 3
(ii) The Secretary is entitled to the salary provided in the State 1
budget. 2
18–303. 3
(a) Subject to subsection (e) of this section, each recipient of a Delegate Howard 4
P. Rawlings Educational Excellence Award shall: 5
(1) Be accepted for admission in the regular undergraduate program at an 6
eligible institution or be enrolled in a 2–year associate degree program in which the course 7
work is acceptable for transfer credit for an accredited baccalaureate program in an eligible 8
institution; 9
(2) Except as provided in § 18–303.2 of this subtitle, be a resident of this 10
State; 11
(3) Demonstrate a definite financial need to: 12
(i) For an Educational Assistance Grant, the Office; or 13
(ii) For a Guaranteed Access Grant, the Office or an institution of 14
higher education that complies with § 18–303.3 of this subtitle; and 15
(4) Accept any other conditions attached to the award. 16
(b) Except as provided in subsection (c) of this section, each recipient of a 17
Guaranteed Access Grant shall: 18
(1) Have [attained a grade point average of at least 2.5 on a 4.0 scale or its 19
equivalent at the end of the first semester of the senior year in high school and have] 20
completed high school or, failing to do so, on the recommendation of the recipient’s high 21
school principal, provide evidence satisfactory to the Office of extenuating circumstances; 22
(2) [Begin college within 1 year of completing high school or, failing to do 23
so, provide evidence satisfactory to the Office of extenuating circumstances; 24
(3) Be under the age of 22 years at the time of receiving the first award; 25
(4) Have successfully completed a college preparatory program in high 26
school; 27
(5)] Enroll in college as a full–time student; 28
[(6)] (3) Subject to subsection (d) of this section, have an annual family 29
income below a poverty index determined by the Commission; and 30
4 HOUSE BILL 923
[(7)] (4) Satisfy any additional criteria the Commission may establish. 1
(c) (1) Subject to paragraph (2) of this subsection, an individual who has 2
successfully obtained a high school diploma by examination under § 11–808 of the Labor 3
and Employment Article is exempt from the requirements of subsection (b) of this section. 4
(2) An individual described under paragraph (1) of this subsection is 5
eligible for a Guaranteed Access Grant if the individual: 6
(i) Has scored a passing score of at least 165 per module on the 7
diploma by examination; 8
(ii) [Begins college within 1 year of achieving the score described 9
under item (i) of this paragraph or, failing to do so, provides evidence satisfactory to the 10
Office of extenuating circumstances; 11
(iii) Is under the age of 22 years at the time of receiving the first 12
award; 13
(iv)] Enrolls in college as a full–time student; and 14
[(v)] (III) Subject to subsection (d) of this section, has an annual 15
family income below a poverty index determined by the Commission. 16
(d) (1) To determine the annual family income eligibility of an applicant for a 17
Guaranteed Access Grant, the Office or an institution of higher education that complies 18
with § 18–303.3 of this subtitle may not consider an amount received by the applicant as 19
an earned income credit under § 32 of the Internal Revenue Code. 20
(2) When awarding a Guaranteed Access Grant to a student who 21
prequalified for the award under subsection (e)(1) or (2) of this section, the Commission 22
shall use the annual family income determination used when the student prequalified. 23
(e) (1) Except as provided in paragraph (2) of this subsection, a student in 24
grade 7 or grade 8 who applies and qualifies for a Guaranteed Access Grant on the basis of 25
financial need as established by the Commission shall prequalify for a Guaranteed Access 26
Grant to be used at the time of enrollment in an institution of higher education by agreeing 27
in writing, as a secondary and undergraduate student, to: 28
(i) Satisfy the attendance policy of the applicable school; 29
(ii) [Refrain from substance abuse; 30
(iii)] Provide information required by the Commission or the State 31
Board of Education; 32
HOUSE BILL 923 5
[(iv)] (III) Apply for admission to an institution of higher education 1
during the student’s senior year of high school; 2
[(v)] (IV) Complete and file on a timely basis applications for federal 3
student aid for each year that the student plans to enroll in postsecondary education; 4
[(vi)] (V) Participate in the Next Generation Scholars of Maryland 5
Program established in § 18–303.1 of this subtitle until the student graduates from high 6
school and matriculates at an institution of higher education; 7
[(vii)] (VI) Maintain a cumulative grade point average of at least 2.5 8
on a 4.0 scale or its equivalent; and 9
[(viii)] (VII) Satisfy any other program requirements set by the Office, 10
the Commission, the State Board of Education, or the State Department of Education. 11
(2) A student in grade 9 or grade 10 shall prequalify for a Guaranteed 12
Access Grant to be used at the time of enrollment in an institution of higher education if 13
the student: 14
(i) Otherwise meets the conditions of paragraph (1) of this 15
subsection; and 16
(ii) 1. Is eligible for free or reduced priced meals; or 17
2. Attends a school that participates in the U.S. Department 18
of Agriculture Community Eligibility Provision and the student is identified by: 19
A. Direct certification; or 20
B. Income information provided by the family of the student 21
to the local school system on an alternative form developed by the Department. 22
18–303.1. 23
(c) The Program shall provide guidance and services to students who qualify for 24
a Guaranteed Access Grant in accordance with § 18–303(e) of this subtitle AND STUDENTS 25
WHO QUALIFY TO RECEI VE FREE LUNCH UNDER THE NATIONAL SCHOOL LUNCH 26
PROGRAM to assist the students in successfully: 27
(1) Completing a college preparatory curriculum; 28
(2) Graduating from high school; 29
(3) Matriculating at an institution of higher education as defined in § 30
18–303 of this subtitle; and 31 6 HOUSE BILL 923
(4) Making timely progress to complete a degree program. 1
(d) (1) The Department shall: 2
(i) Publicize the Program through community outreach and 3
marketing materials; 4
(ii) Award grants to nonprofit organizations to administer the 5
Program; 6
(iii) Solicit applications from nonprofit organizations to administer 7
the Program in local school systems; and 8
(iv) Give priority to applications: 9
1. From Maryland–based nonprofit organizations; and 10
2. That include business and institution of higher education 11
partners. 12
(2) The Program may continue to provide services to students [when]: 13
(I) WHEN they attend an institution of higher education; OR 14
(II) WHO HAVE PARTICIPATED IN THE PROGRAM FOR AT LEAST 15
1 FULL YEAR AND RELOCA TE TO ANOTHER COUNTY IN THE STATE THAT DOES NOT 16
PARTICIPATE IN THE PROGRAM. 17
18–303.3. 18
(a) A public institution of higher education in the State, or a private nonprofit 19
institution of higher education that is eligible for State aid under § 17–103 of this article, 20
may verify the eligibility of an applicant for, and on verification of the eligibility administer, 21
a Guaranteed Access Grant in accordance with this section. 22
(b) An institution may verify: 23
(1) The eligibility of an applicant who: 24
(i) Is identified by the Office as potentially eligible for a Guaranteed 25
Access Grant under § 18–303 of this subtitle; and 26
(ii) Applies for admission to the institution; or 27
(2) The renewal eligibility of a student who: 28 HOUSE BILL 923 7
(i) Received a Guaranteed Access Grant under § 18–303 of this 1
subtitle in the prior award year; and 2
(ii) Is an admitted student at the institution in the current award 3
year. 4
(c) An institution shall: 5
(1) Verify that an applicant qualifies for a Guaranteed Access Grant under 6
the requirements of § 18–303 of this subtitle; 7
(2) Evaluate the applicant’s income eligibility criteria using federal [V1 8
standard] STANDARDS FOR verification and in accordance with the income eligibility 9
criteria established by the Office; 10
(3) Maintain records used by the institution to determine the eligibility of 11
applicants for a period of 5 years after the end date of the award year associated with the 12
student’s last award; and 13
(4) Provide the Commission with an audit, in accordance with rules 14
adopted by the Commission, to show that awards verified and administered under this 15
section have been made properly. 16
(d) (1) Subject to paragraph (2) of this subsection, a verification obtained by 17
an applicant under subsection (b) of this section may be used at any eligible institution 18
described under § 18–305 of this subtitle. 19
(2) The amount of the Guaranteed Access Grant awarded to an applicant 20
may be adjusted in accordance with the cost of attendance at the institution at which the 21
applicant uses the award. 22
18–3601. 23
(a) In this subtitle the following words have the meanings indicated. 24
(b) “Annual adjusted gross income” means the total of the combined adjusted 25
gross income of the applicant and the applicant’s parents, or the applicant and the 26
applicant’s spouse if the applicant is married, as reported on the most recent federal or 27
State income tax return. 28
(C) “AWARD” MEANS A SCHOLARSHIP AWARD FROM THE MARYLAND 29
COMMUNITY COLLEGE PROMISE SCHOLARSHIP . 30
[(c)] (D) “Community college” includes Baltimore City Community College. 31
8 HOUSE BILL 923
[(d)] (E) “Local promise scholarship” means a community college scholarship 1
program in effect on July 1, 2018, that provides a scholarship to any high school senior who 2
is eligible for enrollment at the community college. 3
[(e)] (F) (1) “Tuition” means the basic instructional charge for courses offered 4
at a community college. 5
(2) “Tuition” includes any fees for: 6
(i) Registration; 7
(ii) Application; 8
(iii) Administration; 9
(iv) Laboratory work; and 10
(v) Other mandatory fees. 11
(3) “Tuition” does not include: 12
(i) Costs associated with the parts of a registered apprenticeship 13
that take place at a location that is not a community college; or 14
(ii) Any fees for room and board that are related to an on–campus 15
residential facility for students. 16
18–3602. 17
(a) There is a program of Maryland Community College Promise Scholarships in 18
the State that are awarded under this subtitle. 19
(b) The purpose of the program is to provide tuition assistance for students to 20
attend a community college in the State. 21
(c) The Office AND EACH COMMUNITY C OLLEGE shall publicize the availability 22
of Maryland Community College Promise Scholarships. 23
(D) THE OFFICE SHALL ALLOCATE MARYLAND COMMUNITY COLLEGE 24
PROMISE SCHOLARSHIP FUNDING T O EACH COMMUNITY COL LEGE IN THE STATE 25
BASED ON THE PROPORT ION OF FULL –TIME EQUIVALENT STUD ENTS AT EACH 26
COMMUNITY COLLEGE , AS DEFINED IN § 16–305(B)(7) OF THIS ARTICLE, FOR EACH 27
COMMUNITY COLLEGE TO AWARD MARYLAND COMMUNITY COLLEGE PROMISE 28
SCHOLARSHIP AWARDS TO STUDENTS. 29
18–3603. 30 HOUSE BILL 923 9
(a) (1) (I) [A student must] SUBJECT TO SUBPARAGRA PH (II) OF THIS 1
PARAGRAPH , A STUDENT MAY apply annually to [the Commission] A MARYLAND 2
COMMUN ITY COLLEGE LOCATED IN THE COUNTY OR , IN THE CASE OF A REG IONAL 3
COMMUNITY COLLEGE , IN THE REGION WHERE THE APPLICANT LIVES to receive a 4
Maryland Community College Promise Scholarship award. 5
(II) IF THE COMMUNITY COLL EGE LOCATED IN THE C OUNTY OR 6
REGION WHERE THE APPLICANT LIVES DOES NOT OFFER THE DEGREE OR 7
CERTIFICATION PROGRA M IN WHICH THE APPLI CANT WANTS TO ENROLL , THE 8
STUDENT MAY APPLY TO THE COMMUNITY COLLEG E OUTSIDE THE COUNTY OR, IN 9
THE CASE OF A REGION AL COMMUNITY COLLEGE , OUTSIDE THE REGION WHERE THE 10
APPLICANT LIVES TO RECEIVE A MARYLAND COMMUNITY COLLEGE PROMISE 11
SCHOLARSHIP AWARD . 12
(2) [The Office] A COMMUNITY COLLEGE annually shall select eligible 13
applicants and offer a Maryland Community College Promise Scholarship award to each 14
selected applicant to be used for tuition at [a] THE community college [of the applicant’s 15
choice]. 16
(b) An applicant is eligible for a Maryland Community College Promise 17
Scholarship AWARD if the applicant: 18
(1) Is eligible for in–State tuition; 19
(2) Enrolls as a candidate for a vocational certificate, a certificate, or an 20
associate’s degree or participates in a registered apprenticeship after graduating from a 21
high school or successfully completing a GED in the State: 22
(i) Except as provided in [items (ii) and (iii)] ITEM (II) of this item, 23
at the community college located in the county or, in the case of a regional community 24
college, in the region, where the applicant lives; OR 25
(ii) [If the community college located in the county or region where 26
the applicant lives does not offer the degree or certification program in which the applicant 27
wants to enroll, then at any community college in the State that offers the program; or 28
(iii)] At a community college in the State that has an on–campus 29
residential facility for students; 30
(3) Except as provided in subsection (c)(3) of this section, has earned a 31
cumulative grade point average of: 32
(i) For an initial award, at least 2.3 on a 4.0 scale or its equivalent 33
at the end of the first semester or the end of the year of the senior year in high school; or 34 10 HOUSE BILL 923
(ii) While enrolled at a community college in the State, at least 2.5 1
on a 4.0 scale or its equivalent; 2
(4) Has an annual adjusted gross income of not more than: 3
(i) $100,000 if the applicant is single or resides in a single–parent 4
household; or 5
(ii) $150,000 if the applicant is married or resides in a two–parent 6
household; 7
(5) (i) Enrolls in: 8
1. At least [12] 6 credits per semester at the community 9
college; or 10
2. A sequence of credit or noncredit courses that leads to 11
licensure or certification; or 12
(ii) Participates in a registered apprenticeship program; and 13
(6) (i) Timely submits a Free Application for Federal Student Aid 14
(FAFSA) or any other applications for any State or federal student financial aid, other than 15
a student loan, for which the applicant may qualify; or 16
(ii) Is ineligible to submit a FAFSA, qualifies for in–State tuition 17
under § 15–106.8 of this article, and timely submits an application for any State student 18
financial aid, other than a student loan, for which the applicant may qualify. 19
(c) (1) An applicant who receives any other educational grants or scholarships 20
that cover the applicant’s full cost of attendance at the community college is ineligible to 21
receive an award under this subtitle. 22
(2) An applicant who has earned a bachelor’s degree or an associate’s 23
degree is ineligible to receive an award under this subtitle. 24
(3) An applicant who graduated from high school 5 or more years before 25
the date of application is not subject to the grade point average requirements established 26
in subsection (b)(3)(i) of this section for an initial award. 27
(d) On request the community college shall assist an applicant to submit a FAFSA 28
or any other applications for State or federal student financial aid. 29
18–3603.1. 30
HOUSE BILL 923 11
(A) A COMMUNITY COLLEGE SH ALL VERIFY THE ELIGI BILITY OF AN 1
APPLICANT FOR A MARYLAND COMMUNITY COLLEGE PROMISE SCHOLARSHIP 2
AWARD IN ACCORDANCE WITH THIS SECTION . 3
(B) (1) A COMMUNITY COLLEGE SH ALL: 4
(I) VERIFY THAT AN APPLIC ANT QUALIFIES FOR A MARYLAND 5
COMMUNITY COLLEGE PROMISE SCHOLARSHIP AWARD UNDER THE 6
REQUIREMENTS OF § 18–3603 OF THIS SUBTITLE; 7
(II) EVALUATE THE APPLICAN T’S INCOME ELIGIBILITY USING 8
FEDERAL STANDARD S FOR VERIFICATION A ND IN ACCORDANCE WIT H INCOME 9
ELIGIBILITY CRITERIA ESTABLISHED BY THE OFFICE; 10
(III) MAINTAIN RECORDS USED BY THE COMMUNITY COL LEGE 11
TO DETERMINE THE ELI GIBILITY OF APPLICAN TS FOR NOT LESS THAN A PERIOD OF 12
5 YEARS AFTER THE END DATE OF THE AWARD YEAR ASSOC IATED WITH THE 13
STUDENT’S LAST AWARD; AND 14
(IV) PROVIDE THE COMMISSION WITH AN AU DIT, IN 15
ACCORDANCE WITH RULE S ADOPTED BY THE COMMISSION, TO SHOW THAT AWARDS 16
VERIFIED AND ADMINIS TERED UNDER THIS SEC TION HAVE BEEN MADE PROPERLY. 17
(2) A VERIFICATION OBTAINE D BY AN APPLICANT UN DER 18
PARAGRAPH (1)(I) OF THIS SUBSECTION M AY BE USED AT ANOTHE R COMMUNITY 19
COLLEGE. 20
(C) (1) THE OFFICE SHALL REVIEW THE AUD IT PROVIDED TO THE 21
COMMISSION UNDER SUBS ECTION (B)(1)(IV) OF THIS SECTION NO T LESS THAN ONCE 22
EVERY 3 YEARS TO VERIFY THAT RECIPIEN TS MET THE ELIGIBILITY REQU IREMENTS 23
FOR AN AWARD . 24
(2) (I) IF THE OFFICE DETERMINES THAT A COMMUNITY COL LEGE 25
MADE AN INCORRECT AW ARD TO AN INELIGIBLE STUDENT, THE COMMUNITY 26
COLLEGE SHALL REMIT TO THE COMMISSION THE TOTAL AMOUNT OF THE AWARD 27
MADE IN ERROR . 28
(II) THE COMMISSION SHALL PAY ALL AMOUNTS RECEIVED 29
UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH TO THE NEED–BASED STUDENT 30
FINANCIAL ASSISTANCE FUND UNDER § 18–107 OF THIS TITLE. 31
12 HOUSE BILL 923
(III) THE COMMUNITY COLLEGE MAY NOT REQUIRE A ST UDENT 1
TO REPAY THE COMMUNI TY COLLEGE FOR AN IN CORRECT AWARD MADE F ROM THE 2
MARYLAND COMMUNITY COLLEGE PROMISE SCHOLARSHIP . 3
18–3604. 4
(a) Beginning in the 2019–2020 academic year, the annual scholarship award 5
shall be not more than $5,000 per recipient, or actual tuition, whichever is less. 6
(b) (1) Except as provided in paragraph (3) of this subsection, any State or 7
federal student financial aid, other than a student loan, received by the recipient shall be 8
credited to the recipient’s tuition before the calculation of any award amount provided 9
under this subtitle. 10
(2) (i) 1. Initial SCHOLARSHIP awards shall be provided to 11
recipients based on greatest demonstrated financial need. 12
2. Priority for SCHOLARSHIP awards in subsequent years 13
shall be given to [prior]: 14
A. PRIOR year recipients who remain eligible for the 15
program; 16
B. ALL ELIGIBLE STUDENTS WHO ARE ENROLLED IN AT 17
LEAST 12 CREDITS PER SEMESTER , OR ENROLLED IN A SEQ UENCE OF CREDIT OR 18
NONCRED IT COURSES THAT LEAD TO LICENSURE OR CERTIFICATION ; AND 19
C. IF ANY FUNDS REMAIN T O BE ALLOCATED , STUDENTS 20
ENROLLED IN AT LEAST 6 CREDITS PER SEMESTER . 21
3. Notwithstanding § 18–3603(b) of this subtitle, an eligible 22
recipient who does not receive an award under this subparagraph due to insufficient 23
funding of the program remains eligible for the program the following academic year. 24
(ii) Eligible applicants who do not receive an award under this 25
subtitle shall be notified and placed on a waiting list. 26
(3) If a recipient is eligible for a local promise scholarship, an award 27
provided under this subtitle shall be credited to the recipient’s tuition before the award of 28
the local promise scholarship. 29
(c) (1) Subject to paragraphs (2) and (3) of this subsection, each recipient may 30
hold the award until the earlier of: 31
HOUSE BILL 923 13
(i) 3 years after first enrolling as a candidate for a vocational 1
certificate, a certificate, or an associate’s degree at a community college in the State; or 2
(ii) The date that the individual is awarded an associate’s degree. 3
(2) [The Office] A COMMUNITY COLLEGE may extend the duration of an 4
award for an allowable interruption of study if the recipient provides to the [Office] 5
COMMUNITY COLLEGE satisfactory evidence of extenuating circumstances that prevent 6
the recipient from continuous enrollment. 7
(3) Each recipient may hold the award in accordance with paragraph (1) of 8
this subsection only if the recipient: 9
(i) Continues to be eligible for in–State tuition; 10
(ii) 1. Continues to enroll in and complete at least [12] 6 credits 11
per semester, or a sequence of credit or noncredit courses that leads to licensure or 12
certification, or their equivalent, as determined by the [Office] COMMUNITY COLLEGE ; or 13
2. Continues to participate in a registered apprenticeship 14
program. 15
(iii) Maintains a cumulative grade point average of at least 2.5 on a 16
4.0 scale or its equivalent for the requisite credit–bearing coursework for the remainder of 17
the award or, failing to do so, provides to the [Office] COMMUNITY COLLEGE satisfactory 18
evidence of extenuating circumstances; 19
(iv) Makes satisfactory progress toward a vocational certificate, a 20
certificate, or an associate’s degree; 21
(v) Continues to meet the income limitations under § 18–3603(b)(4) 22
of this subtitle; and 23
(vi) Continues to timely submit an application under § 18–3603(b)(6) 24
of this subtitle. 25
Chapter 639 of the Acts of 2022 26
[SECTION 3. AND BE IT FURTHER ENACTED, That it is the intent of the General 27
Assembly that the Maryland Higher Education Commission be reorganized to establish the 28
Office of Student Financial Assistance as a separate independent agency in fiscal year 29
2024.] 30
Chapter 640 of the Acts of 2022 31
14 HOUSE BILL 923
[SECTION 3. AND BE IT FURTHER ENACTED, That it is the intent of the General 1
Assembly that the Maryland Higher Education Commission be reorganized to establish the 2
Office of Student Financial Assistance as a separate independent agency in fiscal year 3
2024.] 4
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 5
as follows: 6
Article – Education 7
18–303. 8
(a) Subject to subsection (e) of this section, each recipient of a Delegate Howard 9
P. Rawlings Educational Excellence Award shall: 10
(1) Be accepted for admission in the regular undergraduate program at an 11
eligible institution or be enrolled in a 2–year associate degree program in which the course 12
work is acceptable for transfer credit for an accredited baccalaureate program in an eligible 13
institution; 14
(2) Except as provided in § 18–303.2 of this subtitle, be a resident of this 15
State; 16
(3) Demonstrate a definite financial need to: 17
(i) For an Educational Assistance Grant, the Office; or 18
(ii) For a Guaranteed Access Grant, [the Office or] an institution of 19
higher education that complies with § 18–303.3 of this subtitle; and 20
(4) Accept any other conditions attached to the award. 21
(b) Except as provided in subsection (c) of this section, each recipient of a 22
Guaranteed Access Grant shall: 23
(1) Have completed high school or, failing to do so, on the recommendation 24
of the recipient’s high school principal, provide evidence satisfactory to the Office of 25
extenuating circumstances; 26
(2) Enroll in college as a full–time student; 27
(3) Subject to subsection (d) of this section, have an annual family income 28
below a poverty index determined by the Commission; and 29
(4) Satisfy any additional criteria the Commission may establish. 30
HOUSE BILL 923 15
(c) (1) Subject to paragraph (2) of this subsection, an individual who has 1
successfully obtained a high school diploma by examination under § 11–808 of the Labor 2
and Employment Article is exempt from the requirements of subsection (b) of this section. 3
(2) An individual described under paragraph (1) of this subsection is 4
eligible for a Guaranteed Access Grant if the individual: 5
(i) Has scored a passing score of at least 165 per module on the 6
diploma by examination; 7
(ii) Enrolls in college as a full–time student; and 8
(iii) Subject to subsection (d) of this section, has an annual family 9
income below a poverty index determined by the Commission. 10
(d) (1) ON OR BEFORE AUGUST 1 EACH YEAR, THE COMMISSION SHALL 11
ESTABLISH THE ANNUAL FAMILY INCOME USED T O DETERMINE A STUDEN T’S 12
ELIGIBILITY FOR A GUARANTEED ACCESS GRANT AND AN EDUCATIONAL 13
ASSISTANCE GRANT. 14
(2) To determine the annual family income eligibility of an applicant for a 15
Guaranteed Access Grant, [the Office or] an institution of higher education [that complies 16
with § 18–303.3 of this subtitle] may not consider an amount received by the applicant as 17
an earned income credit under § 32 of the Internal Revenue Code. 18
[(2)] (3) (I) When awarding a Guaranteed Access Grant to a student 19
who prequalified for the award under subsection (e)(1) or (2) of this section, the 20
[Commission] INSTITUTION OF HIGHE R EDUCATION shall use the annual family income 21
determination used when the student prequalified. 22
(II) THE COMMISSION SHALL PROV IDE A LIST OF ALL STUDENTS 23
WHO HAVE PREQUALIFIE D FOR THE AWARD UNDE R SUBSECTION (E)(1) OR (2) OF 24
THIS SECTION TO EACH INSTITUTION OF HIGHE R EDUCATION. 25
(e) (1) Except as provided in paragraph (2) of this subsection, a student in 26
grade 7 or grade 8 who applies and qualifies for a Guaranteed Access Grant on the basis of 27
financial need as established by the Commission shall prequalify for a Guaranteed Access 28
Grant to be used at the time of enrollment in an institution of higher education by agreeing 29
in writing, as a secondary and undergraduate student, to: 30
(i) Satisfy the attendance policy of the applicable school; 31
(ii) Provide information required by the Commission or the State 32
Board of Education; 33
16 HOUSE BILL 923
(iii) Apply for admission to an institution of higher education during 1
the student’s senior year of high school; 2
(iv) Complete and file on a timely basis applications for federal 3
student aid for each year that the student plans to enroll in postsecondary education; 4
(v) Participate in the Next Generation Scholars of Maryland 5
Program established in § 18–303.1 of this subtitle until the student graduates from high 6
school and matriculates at an institution of higher education; 7
(vi) Maintain a cumulative grade point average of at least 2.5 on a 8
4.0 scale or its equivalent; and 9
(vii) Satisfy any other program requirements set by the Office, the 10
Commission, the State Board of Education, or the State Department of Education. 11
(2) A student in grade 9 or grade 10 shall prequalify for a Guaranteed 12
Access Grant to be used at the time of enrollment in an institution of higher education if 13
the student: 14
(i) Otherwise meets the conditions of paragraph (1) of this 15
subsection; and 16
(ii) 1. Is eligible for free or reduced priced meals; or 17
2. Attends a school that participates in the U.S. Department 18
of Agriculture Community Eligibility Provision and the student is identified by: 19
A. Direct certification; or 20
B. Income information provided by the family of the student 21
to the local school system on an alternative form developed by the Department. 22
18–303.3. 23
(a) A public institution of higher education in the State, or a private nonprofit 24
institution of higher education that is eligible for State aid under § 17–103 of this article, 25
[may] SHALL verify the eligibility of [an] EACH applicant FOR THE GUARANTEED 26
ACCESS GRANT PROGRAM and on verification of the eligibility administer, a Guaranteed 27
Access Grant in accordance with this section. 28
[(b) An institution may verify: 29
(1) The eligibility of an applicant who: 30
(i) Is identified by the Office as potentially eligible for a Guaranteed 31
Access Grant under § 18–303 of this subtitle; and 32 HOUSE BILL 923 17
(ii) Applies for admission to the institution; or 1
(2) The renewal eligibility of a student who: 2
(i) Received a Guaranteed Access Grant under § 18–303 of this 3
subtitle in the prior award year; and 4
(ii) Is an admitted student at the institution in the current award 5
year.] 6
[(c)] (B) An institution shall: 7
(1) Verify [that an] WHETHER EACH applicant qualifies for a Guaranteed 8
Access Grant under ALL OF the requirements of § 18–303 of this subtitle; 9
[(2) Evaluate the applicant’s income eligibility criteria using federal 10
standards for verification and in accordance with the income eligibility criteria established 11
by the Office;] 12
(2) CALCULATE AND OFFER T HE GUARANTEED ACCESS GRANT 13
AWARD TO THE APPLICA NT UPON THE APPLICAN T’S AWARD LETTER FOR 14
ADMISSION; 15
(3) SUBMIT TO THE OFFICE ON OR BEFORE JUNE 1 EACH YEAR FOR 16
THE UPCOMING SCHOOL YEAR, INFORMATION ON THE S TUDENTS TO WHOM THE 17
INSTITUTION OF HIGHE R EDUCATION OFFERED A GUARANTEED ACCESS GRANT 18
AWARD; 19
[(3)] (4) Maintain records used by the institution to determine the 20
eligibility of applicants for a period of 5 years after the end date of the award year associated 21
with the student’s last award; [and] 22
[(4)] (5) Provide the Commission with an audit, in accordance with rules 23
adopted by the Commission, to show that awards verified and administered under this 24
section have been made properly; AND 25
(6) EVALUATE THE APPLICAN T’S INCOME ELIGIBILITY CRITERIA 26
USING FEDERAL STANDA RDS FOR VERIFICATION AND IN ACCORDANCE WITH T HE 27
INCOME ELIGIBILITY C RITERIA ESTABLISHED BY THE OFFICE. 28
(C) (1) THE OFFICE SHALL REVIEW T HE AUDIT PROVIDED TO THE 29
COMMISSION UNDER SUB SECTION (B)(5) OF THIS SECTION NO T LESS THAN ONCE 30
EVERY 4 YEARS TO VERIFY THAT RECIPIENTS MEET THE ELIGIBILITY 31
REQUIREMENTS FOR AN AWARD. 32 18 HOUSE BILL 923
(2) (I) IF THE OFFICE DETERMINES THA T AN INSTITUTION OF 1
HIGHER EDUCATION MAD E AN INCORRECT AWARD TO AN INELIGIBLE STUDENT, THE 2
INSTITUTION OF HIGHE R EDUCATION SHALL RE MIT TO THE COMMISSION THE 3
TOTAL AMOUNT OF THE AWARD MADE IN ERROR . 4
(II) THE COMMISSION SHALL PAY ALL AMOUNTS RECEIVED 5
UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH TO THE NEED–BASED STUDENT 6
FINANCIAL ASSISTANCE FUND UNDER § 18–107 OF THIS TITLE. 7
(III) THE INSTITUTION OF HI GHER EDUCATION MAY N OT 8
REQUIRE A STUDENT TO REPAY THE COMMUNITY COLLEGE FOR AN INCOR RECT 9
AWARD MADE FROM THE GUARANTEED ACCESS GRANT. 10
(d) (1) Subject to paragraph (2) of this subsection, a verification obtained by 11
an applicant under subsection (b) of this section may be used at any eligible institution 12
described under § 18–305 of this subtitle. 13
(2) The amount of the Guaranteed Access Grant awarded to an applicant 14
may be adjusted in accordance with the cost of attendance at the institution at which the 15
applicant uses the award. 16
18–304. 17
(a) In this section, “academic year” means: 18
(1) The fall, spring, and summer semesters; and 19
(2) Any semester shorter in length than the term of a regular semester. 20
(b) (1) [Except as provided in § 18–307 of this subtitle, the Office] AN 21
INSTITUTION OF HIGHE R EDUCATION THAT COM PLIES WITH § 18–303.3 OF THIS 22
SUBTITLE shall determine the amount of each [Delegate Howard P. Rawlings Educational 23
Excellence] GUARANTEED ACCESS Award based on the financial need of the applicant. 24
(2) In determining the amount of financial need, the [Office] INSTITUTION 25
OF HIGHER EDUCATION shall consider regional cost–of–living differences. 26
(3) In determining the percent of financial need used to calculate an award 27
for a community college student receiving a [Delegate Howard P. Rawlings Educational 28
Excellence] GUARANTEED ACCESS Award, the [Commission] INSTITUTION OF HIGHE R 29
EDUCATION shall use [the following percentages: 30
(i) For fiscal year 2007, not less than 55%; and 31
HOUSE BILL 923 19
(ii) For fiscal year 2008 and each fiscal year thereafter,] not less than 1
60%. 2
(c) (1) Except as provided in paragraphs (2) and (3) of this subsection, a 3
Delegate Howard P. Rawlings Educational Excellence Award may be awarded in $100 4
increments. 5
(2) (i) The amount of an Educational Assistance Grant made to a 6
student in the student’s first 2 academic years of enrollment may not be less than $400 or 7
more than $3,000. 8
(ii) Beginning in the third academic year of enrollment and for each 9
academic year thereafter: 10
1. If the student successfully completed at least 30 credits in 11
the prior academic year, the amount of an Educational Assistance Grant made to a student 12
may not be less than $400 or more than $3,000; or 13
2. If the student successfully completed at least 24 but less 14
than 30 credits in the prior academic year, the award amount shall be equal to the amount 15
the student would have otherwise received multiplied by the ratio of the number of credits 16
successfully completed divided by 30. 17
(3) (i) All applicants who fulfill the requirements established in § 18
18–303(a) and (b) of this subtitle shall receive a Guaranteed Access Grant. 19
(ii) Except as provided in subparagraph (iv) of this paragraph, the 20
amount of a Guaranteed Access Grant made to a student in the student’s first 2 academic 21
years of enrollment shall be equal to 100 percent of the student’s financial need as 22
determined by the [Office] INSTITUTION OF H IGHER EDUCATION , not to exceed the 23
equivalent annual expenses of a full–time resident undergraduate at the 4–year public 24
institution of higher education within the University System of Maryland, other than the 25
University of Maryland Global Campus and University of Maryland, Baltimore Campus, 26
with the highest annual expenses for a full–time resident undergraduate. 27
(iii) Except as provided in subparagraph (iv) of this paragraph, 28
beginning in the third academic year of enrollment and for each academic year thereafter: 29
1. If the student successfully completed at least 30 credits in 30
the prior academic year, the award amount shall be equal to 100 percent of the student’s 31
financial need as determined by the [Office] INSTITUTION OF HIGHE R EDUCATION , not 32
to exceed the equivalent annual expenses of a full–time resident undergraduate at the 33
4–year public institution of higher education within the University System of Maryland, 34
other than the University of Maryland Global Campus and University of Maryland, 35
Baltimore Campus, with the highest annual expenses for a full –time resident 36
undergraduate; or 37
20 HOUSE BILL 923
2. If the student successfully completed at least 24 but less 1
than 30 credits in the prior academic year, the award amount shall be equal to 100 percent 2
multiplied by the ratio of the number of credits successfully completed divided by 30. 3
(iv) If a recipient of a Guaranteed Access Grant becomes ineligible 4
because of a change in family income, the recipient shall remain eligible for the full award 5
for the full award term applicable to the recipient under this subtitle if the recipient 6
remains eligible to receive a federal Pell Grant. 7
(D) EACH INSTITUTION OF H IGHER EDUCATION SHAL L INCLUDE IN AN 8
AWARD LETTER TO A STUDENT THE AVAILABILITY OF THE EDUCATIONAL 9
ASSISTANCE AWARD ADMINISTERED BY THE OFFICE, INCLUDING: 10
(1) A DESCRIPTION OF THE OFFICE AND THE EDUCATIONAL 11
ASSISTANCE AWARD; 12
(2) INFORMATION ON EDUCATIONAL ASSISTANCE AWARD 13
TIMELINES; AND 14
(3) A POINT OF CONTACT AT THE OFFICE FOR STUDENTS . 15
[(d)] (E) Beginning in fiscal year 2024 and each fiscal year thereafter, the 16
Governor shall include in the annual budget bill an appropriation of at least $112,000,000 17
for Delegate Howard P. Rawlings Educational Excellence Awards made under this subtitle. 18
18–307. 19
(a) (1) Except as provided in subsection (d) of this section, the Office shall 20
compile and certify lists for the entire State that rank applicants by financial need FOR 21
THE EDUCATIONAL ASSISTANCE AWARD. 22
(2) AFTER AWARDS FROM INS TITUTIONS OF HIGHER EDUCATION 23
HAVE BEEN MADE AND A CCEPTED FOR THE GUARANTEED ACCESS GRANT, THE 24
OFFICE SHALL AWARD ELIGIBLE STUDENTS TH E EDUCATIONAL ASSISTANCE 25
AWARD BASED ON FINANC IAL NEED FROM ANY REMAINING FU NDING FOR THE 26
DELEGATE HOWARD P. RAWLINGS EDUCATIONAL EXCELLENCE AWARDS. 27
(b) All funds for annual initial grants FOR THE EDUCATIONAL ASSISTANCE 28
AWARD shall be awarded from the statewide list on the basis of greatest financial need. 29
(c) [(1) On or before April 15 each year, the Office shall send a notification to 30
each individual who applied for a Delegate Howard P. Rawlings Educational Excellence 31
Award indicating: 32
(i) Whether or not the student is a recipient of an award; and 33 HOUSE BILL 923 21
(ii) If applicable, the amount awarded to the student. 1
(2) On or before May 1 of each year, the Office shall send each Senator and 2
each Delegate a list of individuals in each legislative district to whom Delegate Howard P. 3
Rawlings Educational Excellence Awards are awarded. 4
(d)] (1) (i) If State funds are available for this purpose, institutions of 5
higher education in the State may provide Delegate Howard P. Rawlings Educational 6
Excellence Awards to students who otherwise meet the requirements for receiving a 7
Delegate Howard P. Rawlings Educational Excellence Award but who apply after the 8
March 1 deadline or have other extenuating circumstances. 9
(ii) Each year the Commission shall transfer at least $2 million of 10
the funds available under § 18–107(b) of this title for the purposes of this subsection. 11
(2) The Commission shall: 12
(i) Establish guidelines for the awarding of Delegate Howard P. 13
Rawlings Educational Excellence Awards by the institutions of higher education to the 14
students; 15
(ii) Adopt regulations necessary for the implementation of this 16
subsection. 17
(3) (i) The Commission shall allocate available funds to institutions of 18
higher education based on the proportion of State residents enrolled at each institution who 19
receive federal Pell Grants. 20
(ii) An institution of higher education that receives funds under this 21
paragraph shall provide the Commission with an annual audit describing the disposition 22
of the funds. 23
SECTION 3. AND BE IT FURTHER ENACTED, That it is the intent of the General 24
Assembly that, beginning in fiscal year 2026, the Governor shall include funding for 25
financial aid offices at public institutions of higher education to implement Section 2 of this 26
Act. 27
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 28
effect July 1, 2025. 29
SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in Section 30
4 of this Act, this Act shall take effect July 1, 2023. 31