EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 11, 2023
CHAPTER ______
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
2 HOUSE BILL 923
BY adding to 1
Article – Education 2
Section 18–303.4 and 18–3603.1 3
Annotated Code of Maryland 4
(2022 Replacement Volume) 5
BY repealing 6
Chapter 639 of the Acts of the General Assembly of 2022 7
Section 3 8
BY repealing 9
Chapter 640 of the Acts of the General Assembly of 2022 10
Section 3 11
BY repealing and reenacting, with amendments, 12
Article – Education 13
Section 18–303 and 18–303.3 14
Annotated Code of Maryland 15
(2022 Replacement Volume) 16
(As enacted by Section 1 of this Act) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Education 20
11–104. 21
(a) [(1) In accordance with paragraph (2) of this subsection, the] THE Governor 22
shall appoint, with the advice and consent of the Senate, a Secretary of Higher Education. 23
[(2) (i) The Commission shall submit to the Governor the names of 3 24
nominees for the position of Secretary from which the Governor shall make the 25
appointment. 26
(ii) The Governor may reject the list and request the Commission to 27
submit the names of additional nominees.] 28
(b) (1) The Secretary shall: 29
(i) Select, organize, and direct the staff of the Commission; 30
(ii) Perform the duties the Commission assigns; 31
(iii) See that the policies and decisions of the Commission are carried 32
out; 33
HOUSE BILL 923 3
(iv) Serve at the pleasure of the [Commission] GOVERNOR; and 1
(v) Be a member of the Governor’s Executive Council. 2
(2) (i) After consideration of the recommendations of the Commission, 3
the Governor shall include in the annual budget request the salary for the Secretary. 4
(ii) The Secretary is entitled to the salary provided in the State 5
budget. 6
18–303. 7
(a) Subject to subsection (e) of this section, each recipient of a Delegate Howard 8
P. Rawlings Educational Excellence Award shall: 9
(1) Be accepted for admission in the regular undergraduate program at an 10
eligible institution or be enrolled in a 2–year associate degree program in which the course 11
work is acceptable for transfer credit for an accredited baccalaureate program in an eligible 12
institution; 13
(2) Except as provided in § 18–303.2 of this subtitle, be a resident of this 14
State; 15
(3) Demonstrate a definite financial need to: 16
(i) For an Educational Assistance Grant, the Office; or 17
(ii) For a Guaranteed Access Grant, the Office or an institution of 18
higher education that complies with § 18–303.3 of this subtitle; and 19
(4) Accept any other conditions attached to the award. 20
(b) Except as provided in subsection (c) of this section, each recipient of a 21
Guaranteed Access Grant shall: 22
(1) Have [attained a grade point average of at least 2.5 on a 4.0 scale or its 23
equivalent at the end of the first semester of the senior year in high school and have] 24
completed high school or, failing to do so, on the recommendation of the recipient’s high 25
school principal, provide evidence satisfactory to the Office of extenuating circumstances; 26
(2) [Begin college within 1 year of completing high school or, failing to do 27
so, provide evidence satisfactory to the Office of extenuating circumstances; 28
(3) Be under the age of 22 years at the time of receiving the first award; 29
(4) Have successfully completed a college preparatory program in high 30
school; 31 4 HOUSE BILL 923
(5)] Enroll in college as a full–time student; 1
[(6)] (3) Subject to subsection (d) of this section, have an annual family 2
income below a poverty index determined by the Commission; and 3
[(7)] (4) Satisfy any additional criteria the Commission may establish. 4
(c) (1) Subject to paragraph (2) of this subsection, an individual who has 5
successfully obtained a high school diploma by examination under § 11–808 of the Labor 6
and Employment Article is exempt from the requirements of subsection (b) of this section. 7
(2) An individual described under paragraph (1) of this subsection is 8
eligible for a Guaranteed Access Grant if the individual: 9
(i) Has scored a passing score of at least 165 145 per module on the 10
diploma by examination; 11
(ii) [Begins college within 1 year of achieving the score described 12
under item (i) of this paragraph or, failing to do so, provides evidence satisfactory to the 13
Office of extenuating circumstances; 14
(iii) Is under the age of 22 years at the time of receiving the first 15
award; 16
(iv)] Enrolls in college as a full–time student; and 17
[(v)] (III) Subject to subsection (d) of this section, has an annual 18
family income below a poverty index determined by the Commission. 19
(d) (1) To determine the annual family income eligibility of an applicant for a 20
Guaranteed Access Grant, the Office or an institution of higher education that complies 21
with § 18–303.3 of this subtitle may not consider an amount received by the applicant as 22
an earned income credit under § 32 of the Internal Revenue Code. 23
(2) When awarding a Guaranteed Access Grant to a student who 24
prequalified for the award under subsection (e)(1) or (2) of this section, the Commission 25
shall use the annual family income determination used when the student prequalified. 26
(e) (1) Except as provided in paragraph (2) of this subsection, a student in 27
grade 7 or grade 8 who applies and qualifies for a Guaranteed Access Grant on the basis of 28
financial need as established by the Commission shall prequalify for a Guaranteed Access 29
Grant to be used at the time of enrollment in an institution of higher education by agreeing 30
in writing, as a secondary and undergraduate student, to: 31
(i) Satisfy the attendance policy of the applicable school; 32 HOUSE BILL 923 5
(ii) [Refrain from substance abuse; 1
(iii)] Provide information required by the Commission or the State 2
Board of Education; 3
[(iv)] (III) Apply for admission to an institution of higher education 4
during the student’s senior year of high school; 5
[(v)] (IV) Complete and file on a timely basis applications for federal 6
student aid for each year that the student plans to enroll in postsecondary education; 7
[(vi)] (V) Participate in the Next Generation Scholars of Maryland 8
Program established in § 18–303.1 of this subtitle until the student graduates from high 9
school and matriculates at an institution of higher education; 10
[(vii)] (VI) Maintain a cumulative grade point average of at least 2.5 11
on a 4.0 scale or its equivalent; and 12
[(viii)] (VII) Satisfy any other program requirements set by the Office, 13
the Commission, the State Board of Education, or the State Department of Education. 14
(2) A student in grade 9 or grade 10 shall prequalify for a Guaranteed 15
Access Grant to be used at the time of enrollment in an institution of higher education if 16
the student: 17
(i) Otherwise meets the conditions of paragraph (1) of this 18
subsection; and 19
(ii) 1. Is eligible for free or reduced priced meals; or 20
2. Attends a school that participates in the U.S. Department 21
of Agriculture Community Eligibility Provision and the student is identified by: 22
A. Direct certification; or 23
B. Income information provided by the family of the student 24
to the local school system on an alternative form developed by the Department. 25
18–303.1. 26
(c) The Program shall provide guidance and services to students who qualify for 27
a Guaranteed Access Grant in accordance with § 18–303(e) of this subtitle AND STUDENTS 28
WHO QUALIFY TO RECEI VE FREE OR REDUCED–PRICE LUNCH UNDER THE NATIONAL 29
SCHOOL LUNCH PROGRAM to assist the students in successfully: 30
6 HOUSE BILL 923
(1) Completing a college preparatory curriculum; 1
(2) Graduating from high school; 2
(3) Matriculating at an institution of higher education as defined in § 3
18–303 of this subtitle; and 4
(4) Making timely progress to complete a degree program. 5
(d) (1) The Department shall: 6
(i) Publicize the Program through community outreach and 7
marketing materials; 8
(ii) Award grants to nonprofit organizations to administer the 9
Program; 10
(iii) Solicit applications from nonprofit organizations to administer 11
the Program in local school systems; and 12
(iv) Give priority to applications: 13
1. From Maryland–based nonprofit organizations; and 14
2. That include business and institution of higher education 15
partners. 16
(2) The Program may continue to provide services to students [when]: 17
(I) WHEN they attend an institution of higher education; OR 18
(II) WHO HAVE PARTICIPATED IN THE PROGRAM FOR AT LEAST 19
1 FULL YEAR AND RELOCA TE TO ANOTHE R COUNTY IN THE STATE THAT DOES NOT 20
PARTICIPATE IN THE PROGRAM. 21
18–303.3. 22
(a) A public institution of higher education in the State, or a private nonprofit 23
institution of higher education that is eligible for State aid under § 17–103 of this article, 24
may verify the eligibility of an applicant for, and on verification of the eligibility administer, 25
a Guaranteed Access Grant in accordance with this section. 26
(b) An institution may verify: 27
(1) The eligibility of an applicant who: 28
HOUSE BILL 923 7
(i) Is identified by the Office as potentially eligible for a Guaranteed 1
Access Grant under § 18–303 of this subtitle; and 2
(ii) Applies for admission to the institution; or 3
(2) The renewal eligibility of a student who: 4
(i) Received a Guaranteed Access Grant under § 18–303 of this 5
subtitle in the prior award year; and 6
(ii) Is an admitted student at the institution in the current award 7
year. 8
(c) An institution shall: 9
(1) Verify that an applicant qualifies for a Guaranteed Access Grant under 10
the requirements of § 18–303 of this subtitle; 11
(2) Evaluate the applicant’s income eligibility criteria using federal [V1 12
standard] STANDARDS FOR verification and in accordance with the income eligibility 13
criteria established by the Office; 14
(3) Maintain records used by the institution to determine the eligibility of 15
applicants for a period of 5 years after the end date of the award year associated with the 16
student’s last award; and 17
(4) Provide the Commission with an audit, in accordance with rules 18
adopted by the Commission, to show that awards verified and administered under this 19
section have been made properly. 20
(d) (1) Subject to paragraph (2) of this subsection, a verification obtained by 21
an applicant under subsection (b) of this section may be used at any eligible institution 22
described under § 18–305 of this subtitle. 23
(2) The amount of the Guaranteed Access Grant awarded to an applicant 24
may be adjusted in accordance with the cost of attendance at the institution at which the 25
applicant uses the award. 26
18–3601. 27
(a) In this subtitle the following words have the meanings indicated. 28
(b) “Annual adjusted gross income” means the total of the combined adjusted 29
gross income of the applicant and the applicant’s parents, or the applicant and the 30
applicant’s spouse if the applicant is married, as reported on the most recent federal or 31
State income tax return. 32
8 HOUSE BILL 923
(C) “AWARD” MEANS A SCHOLARSHIP AWARD FROM THE MARYLAND 1
COMMUNITY COLLEGE PROMISE SCHOLARSHIP . 2
[(c)] (D) “Community college” includes Baltimore City Community College. 3
[(d)] (E) “Local promise scholarship” means a community college scholarship 4
program in effect on July 1, 2018, that provides a scholarship to any high school senior who 5
is eligible for enrollment at the community college. 6
[(e)] (F) (1) “Tuition” means the basic instructional charge for courses offered 7
at a community college. 8
(2) “Tuition” includes any fees for: 9
(i) Registration; 10
(ii) Application; 11
(iii) Administration; 12
(iv) Laboratory work; and 13
(v) Other mandatory fees. 14
(3) “Tuition” does not include: 15
(i) Costs associated with the parts of a registered apprenticeship 16
that take place at a location that is not a community college; or 17
(ii) Any fees for room and board that are related to an on–campus 18
residential facility for students. 19
18–3602. 20
(a) There is a program of Maryland Community College Promise Scholarships in 21
the State that are awarded under this subtitle. 22
(b) The purpose of the program is to provide tuition assistance for students to 23
attend a community college in the State. 24
(c) The Office AND EACH COMMUNITY C OLLEGE shall publicize the availability 25
of Maryland Community College Promise Scholarships. 26
(D) (1) THE OFFICE SHALL ALLOCATE MARYLAND COMMUNITY 27
COLLEGE PROMISE SCHOLARSHIP FUNDING T O EACH COMMUNITY COL LEGE IN THE 28
STATE BASED ON THE PR OPORTION OF FULL–TIME EQUIVALENT PELL–ELIGIBLE 29 HOUSE BILL 923 9
STUDENTS AT EACH COM MUNITY COLLEGE , AS DEFINED IN § 16–305(B)(7) OF THIS 1
ARTICLE, FOR EACH COMMUNITY C OLLEGE TO AWARD MARYLAND COMMUNITY 2
COLLEGE PROMISE SCHOLARSHIP AWARDS TO STUDENTS. 3
(2) IF A COMMUNITY COLLEG E DOES NOT AWARD ALL FUNDING 4
ALLOCATED TO THE COM MUNITY COLLEGE UNDER PARAGRAPH (1) OF THIS 5
SUBSECTION, THE COMMUNITY COLLEGE SHALL DISTRI BUTE THE REMAINING 6
FUNDING TO OTHER COM MUNITY COLLEGES TO M AKE MARYLAND COMMUNITY 7
COLLEGE PROMISE SCHOLARSHIP AWARDS TO STUDENTS IN THE AWAR D YEAR. 8
18–3603. 9
(a) (1) (I) [A student must] SUBJECT TO SUBPARAGRA PH (II) OF THIS 10
PARAGRAP H, A STUDENT MAY apply annually to [the Commission] A MARYLAND 11
COMMUNITY COLLEGE LO CATED IN THE COUNTY OR, IN THE CASE OF A REG IONAL 12
COMMUNITY COLLEGE , IN THE REGION WHERE THE APPLICANT LIVES to receive a 13
Maryland Community College Promise Scholarship award. 14
(II) IF THE COMMUNITY COLL EGE LOCATED IN THE C OUNTY OR 15
REGION WHERE THE APP LICANT LIVES DOES NO T OFFER THE DEGREE O R 16
CERTIFICATION PROGRA M IN WHICH THE APPLI CANT WANTS TO ENROLL , THE 17
STUDENT MAY APPLY TO THE COMMUNITY COLLEG E OUTSIDE THE COUNTY OR, IN 18
THE CASE OF A REGIONAL COMMUN ITY COLLEGE, OUTSIDE THE REGION W HERE THE 19
APPLICANT LIVES TO R ECEIVE A MARYLAND COMMUNITY COLLEGE PROMISE 20
SCHOLARSHIP AWARD . 21
(2) [The Office] A COMMUNITY COLLEGE annually shall select eligible 22
applicants and offer a Maryland Community College Promise Scholarship award to each 23
selected applicant to be used for tuition at [a] THE community college [of the applicant’s 24
choice]. 25
(b) An applicant is eligible for a Maryland Community College Promise 26
Scholarship AWARD if the applicant: 27
(1) Is eligible for in–State tuition; 28
(2) Enrolls as a candidate for a vocational certificate, a certificate, or an 29
associate’s degree or participates in a registered apprenticeship after graduating from a 30
high school or successfully completing a GED in the State: 31
(i) Except as provided in [items (ii) and (iii)] ITEM (II) of this item, 32
at the community college located in the county or, in the case of a regional community 33
college, in the region, where the applicant lives; OR 34
10 HOUSE BILL 923
(ii) [If the community college located in the county or region where 1
the applicant lives does not offer the degree or certification program in which the applicant 2
wants to enroll, then at any community college in the State that offers the program; or 3
(iii)] At a community college in the State that has an on–campus 4
residential facility for students; 5
(3) Except as provided in subsection (c)(3) of this section, has earned a 6
cumulative grade point average of: 7
(i) For an initial award, at least 2.3 on a 4.0 scale or its equivalent 8
at the end of the first semester or the end of the year of the senior year in high school; or 9
(ii) While enrolled at a community college in the State, at least 2.5 10
on a 4.0 scale or its equivalent; 11
(4) Has an annual adjusted gross income of not more than: 12
(i) $100,000 if the applicant is single or resides in a single–parent 13
household; or 14
(ii) $150,000 if the applicant is married or resides in a two–parent 15
household; 16
(5) (i) Enrolls in: 17
1. At least [12] 6 credits per semester at the community 18
college; or 19
2. A sequence of credit or noncredit courses that leads to 20
licensure or certification; or 21
(ii) Participates in a registered apprenticeship program; and 22
(6) (i) Timely submits a Free Application for Federal Student Aid 23
(FAFSA) or any other applications for any State or federal student financial aid, other than 24
a student loan, for which the applicant may qualify; or 25
(ii) Is ineligible to submit a FAFSA, qualifies for in–State tuition 26
under § 15–106.8 of this article, and timely submits an application for any State student 27
financial aid, other than a student loan, for which the applicant may qualify. 28
(c) (1) An applicant who receives any other educational grants or scholarships 29
that cover the applicant’s full cost of attendance at the community college is ineligible to 30
receive an award under this subtitle. 31
HOUSE BILL 923 11
(2) An applicant who has earned a bachelor’s degree or an associate’s 1
degree is ineligible to receive an award under this subtitle. 2
(3) An applicant who graduated from high school 5 or more years before 3
the date of application is not subject to the grade point average requirements established 4
in subsection (b)(3)(i) of this section for an initial award. 5
(d) On request the community college shall assist an applicant to submit a FAFSA 6
or any other applications for State or federal student financial aid. 7
18–3603.1. 8
(A) A COMMUNITY COLLEGE SH ALL VERIFY THE ELIGI BILITY OF AN 9
APPLICANT FOR A MARYLAND COMMUNITY COLLEGE PROMISE SCHOLARSHIP 10
AWARD IN ACCORDANCE WITH THIS SECTION. 11
(B) (1) A COMMUNITY COLLEGE SH ALL: 12
(I) VERIFY THAT AN APPLIC ANT QUALIFIES FOR A MARYLAND 13
COMMUNITY COLLEGE PROMISE SCHOLARSHIP AWARD UND ER THE 14
REQUIREMENTS OF § 18–3603 OF THIS SUBTITLE; 15
(II) EVALUATE THE APPLICAN T’S INCOME ELIGI BILITY USING 16
FEDERAL STANDARDS FO R VERIFICATION AND I N ACCORDANCE WITH IN COME 17
ELIGIBILITY CRITERIA ESTABLISHED BY THE OFFICE; 18
(III) MAINTAIN RECORDS USED BY THE COMMUNITY COL LEGE 19
TO DETERMINE THE ELI GIBILITY OF APPLICAN TS FOR NOT LESS THAN A PERIOD OF 20
5 YEARS AFTER THE END DATE OF THE AWARD YE AR ASSOCIATED WITH T HE 21
STUDENT’S LAST AWARD; AND 22
(IV) PROVIDE THE COMMISSION WITH AN AU DIT, IN 23
ACCORDANCE WITH RULE S ADOPTED BY THE COMMISSION, TO SHOW THAT AWARDS 24
VERIFIED AND ADMINIS TERED UNDER THIS SEC TION HAVE BEEN MADE PROPE RLY. 25
(2) A VERIFICATION OBTAINE D BY AN APPLICANT UN DER 26
PARAGRAPH (1)(I) OF THIS SUBSECTION M AY BE USED AT ANOTHE R COMMUNITY 27
COLLEGE. 28
(C) (1) THE OFFICE SHALL REVIEW T HE AUDIT PROVIDED TO THE 29
COMMISSION UNDER SUBS ECTION (B)(1)(IV) OF THIS SECTION NOT L ESS THAN ONCE 30
EVERY 3 YEARS TO VERIFY THAT RECIPIENTS MET THE E LIGIBILITY REQUIREME NTS 31
FOR AN AWARD . 32
12 HOUSE BILL 923
(2) (I) IF THE OFFICE DETERMINES THA T A COMMUNITY COLLEG E 1
MADE AN INCORRECT AW ARD TO AN INELIGIBLE STUDENT, THE COMMUNITY 2
COLLEGE SHALL REMIT TO THE COMMISSION THE TOTAL AMOUNT OF THE AWARD 3
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 COMMUNITY COLLEGE MAY NOT REQUIRE A ST UDENT 8
TO REPAY THE COMMUNI TY COLLEGE FOR AN IN CORRECT AWARD MADE F ROM THE 9
MARYLAND COMMUNITY COLLEGE PROMISE SCHOLARSHIP . 10
18–3604. 11
(a) Beginning in the 2019–2020 academic year, the annual scholarship award 12
shall be not more than $5,000 per recipient, or actual tuition, whichever is less. 13
(b) (1) Except as provided in paragraph (3) of this subsection, any State or 14
federal student financial aid, other than a student loan, received by the recipient shall be 15
credited to the recipient’s tuition before the calculation of any award amount provided 16
under this subtitle. 17
(2) (i) 1. Initial SCHOLARSHIP awards shall be provided to 18
recipients based on greatest demonstrated financial need. 19
2. Priority for SCHOLARSHIP awards in subsequent years 20
shall be given to [prior]: 21
A. PRIOR year recipients who remain eligible for the 22
program; 23
B. ALL ELIGIBLE STUDENTS WHO ARE ENROLLED IN AT 24
LEAST 12 CREDITS PER SEMESTER , OR ENROLLED IN A SEQ UENCE OF CREDIT OR 25
NONCREDIT COURSES TH AT LEAD TO LICENSURE OR CERTIFICATION ; AND 26
C. IF ANY FUNDS REMAIN T O BE ALLOCATED , STUDENTS 27
ENROLLED IN AT LEAST 6 CREDITS PER SEMESTER . 28
3. Notwithstanding § 18–3603(b) of this subtitle, an eligible 29
recipient who does not receive an award under this subparagraph due to insufficient 30
funding of the program remains eligible for the program the following academic year. 31
(ii) Eligible applicants who do not receive an award under this 32
subtitle shall be notified and placed on a waiting list. 33 HOUSE BILL 923 13
(3) If a recipient is eligible for a local promise scholarship, an award 1
provided under this subtitle shall be credited to the recipient’s tuition before the award of 2
the local promise scholarship. 3
(c) (1) Subject to paragraphs (2) and (3) of this subsection, each recipient may 4
hold the award until the earlier of: 5
(i) 3 years after first enrolling as a candidate for a vocational 6
certificate, a certificate, or an associate’s degree at a community college in the State; or 7
(ii) The date that the individual is awarded an associate’s degree. 8
(2) [The Office] A COMMUNITY COLLEGE may extend the duration of an 9
award for an allowable interruption of study if the recipient provides to the [Office] 10
COMMUNITY COLLEGE satisfactory evidence of extenuating circumstances that prevent 11
the recipient from continuous enrollment. 12
(3) Each recipient may hold the award in accordance with paragraph (1) of 13
this subsection only if the recipient: 14
(i) Continues to be eligible for in–State tuition; 15
(ii) 1. Continues to enroll in and complete at least [12] 6 credits 16
per semester, or a sequence of credit or noncredit courses that leads to licensure or 17
certification, or their equivalent, as determined by the [Office] COMMUNITY COLLEGE ; or 18
2. Continues to participate in a registered apprenticeship 19
program. 20
(iii) Maintains a cumulative grade point average of at least 2.5 on a 21
4.0 scale or its equivalent for the requisite credit–bearing coursework for the remainder of 22
the award or, failing to do so, provides to the [Office] COMMUNITY COLLEGE satisfactory 23
evidence of extenuating circumstances; 24
(iv) Makes satisfactory progress toward a vocational certificate, a 25
certificate, or an associate’s degree; 26
(v) Continues to meet the income limitations under § 18–3603(b)(4) 27
of this subtitle; and 28
(vi) Continues to timely submit an application under § 18–3603(b)(6) 29
of this subtitle. 30
Chapter 639 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
Chapter 640 of the Acts of 2022 5
[SECTION 3. AND BE IT FURTHER ENACT ED, That it is the intent of the General 6
Assembly that the Maryland Higher Education Commission be reorganized to establish the 7
Office of Student Financial Assistance as a separate independent agency in fiscal year 8
2024.] 9
SECTION 2. AND BE IT FURTHER EN ACTED, That the Laws of Maryland read 10
as follows: 11
Article – Education 12
18–303. 13
(a) Subject to subsection (e) of this section, each recipient of a Delegate Howard 14
P. Rawlings Educational Excellence Award shall: 15
(1) Be accepted for admission in the regular undergraduate program at an 16
eligible institution or be enrolled in a 2–year associate degree program in which the course 17
work is acceptable for transfer credit for an accredited baccalaureate program in an eligible 18
institution; 19
(2) Except as provided in § 18–303.2 of this subtitle, be a resident of this 20
State; 21
(3) Demonstrate a definite financial need to: 22
(i) For an Educational Assistance Grant, the Office; or 23
(ii) For a Guaranteed Access Grant, [the Office or] an institution of 24
higher education that complies with § 18–303.3 of this subtitle; and 25
(4) Accept any other conditions attached to the award. 26
(b) Except as provided in subsection (c) of this section, each recipient of a 27
Guaranteed Access Grant shall: 28
(1) Have completed high school or, failing to do so, on the recommendation 29
of the recipient’s high school principal, provide evidence satisfactory to the Office of 30
extenuating circumstances; 31
(2) Enroll in college as a full–time student; 32 HOUSE BILL 923 15
(3) Subject to subsection (d) of this section, have an annual family income 1
below a poverty index determined by the Commission; and 2
(4) Satisfy any additional criteria the Commission may establish. 3
(c) (1) Subject to paragraph (2) of this subsection, an individual who has 4
successfully obtained a high school diploma by examination under § 11–808 of the Labor 5
and Employment Article is exempt from the requirements of subsection (b) of this section. 6
(2) An individual described under paragraph (1) of this subsection is 7
eligible for a Guaranteed Access Grant if the individual: 8
(i) Has scored a passing score of at least 165 per module on the 9
diploma by examination; 10
(ii) Enrolls in college as a full–time student; and 11
(iii) Subject to subsection (d) of this section, has an annual family 12
income below a poverty index determined by the Commission. 13
(d) (1) ON OR BEFORE AUGUST 1 EACH YEAR, THE COMMISSION SHALL 14
ESTABLISH THE ANNUAL FAMILY INCOME USED T O DETERMINE A STUDEN T’S 15
ELIGIBILITY FOR A GUARANTEED ACCESS GRANT AND AN EDUCATIONAL 16
ASSISTANCE GRANT. 17
(2) To determine the annual family income eligibility of an applicant for a 18
Guaranteed Access Grant, [the Office or] an institution of higher education [that complies 19
with § 18–303.3 of this subtitle] may not consider an amount received by the applicant as 20
an earned income credit under § 32 of the Internal Revenue Code. 21
[(2)] (3) (I) When awarding a Guaranteed Access Grant to a student 22
who prequalified for the award under subsection (e)(1) or (2) of this section, the 23
[Commission] INSTITUTION OF HIGHE R EDUCATION shall use the annual family income 24
determination used when the student prequalified. 25
(II) THE COMMISSION SHALL PROV IDE A LIST OF ALL STUDENTS 26
WHO HAVE PREQUALIFIE D FOR THE AWARD UNDE R SUBSECTION (E)(1) OR (2) OF 27
THIS SECTION TO EACH INSTITUTION OF HIGHE R EDUCATION. 28
(e) (1) Except as provided in paragraph (2) of this subsection, a student in 29
grade 7 or grade 8 who applies and qualifies for a Guaranteed Access Grant on the basis of 30
financial need as established by the Commission shall prequalify for a Guaranteed Access 31
Grant to be used at the time of enrollment in an institution of higher education by agreeing 32
in writing, as a secondary and undergraduate student, to: 33
16 HOUSE BILL 923
(i) Satisfy the attendance policy of the applicable school; 1
(ii) Provide information required by the Commission or the State 2
Board of Education; 3
(iii) Apply for admission to an institution of higher education during 4
the student’s senior year of high school; 5
(iv) Complete and file on a timely basis applications for federal 6
student aid for each year that the student plans to enroll in postsecondary education; 7
(v) Participate in the Next Generation Scholars of Maryland 8
Program established in § 18–303.1 of this subtitle until the student graduates from high 9
school and matriculates at an institution of higher education; 10
(vi) Maintain a cumulative grade point average of at least 2.5 on a 11
4.0 scale or its equivalent; and 12
(vii) Satisfy any other program requirements set by the Office, the 13
Commission, the State Board of Education, or the State Department of Education. 14
(2) A student in grade 9 or grade 10 shall prequalify for a Guaranteed 15
Access Grant to be used at the time of enrollment in an institution of higher education if 16
the student: 17
(i) Otherwise meets the conditions of paragraph (1) of this 18
subsection; and 19
(ii) 1. Is eligible for free or reduced priced meals; or 20
2. Attends a school that participates in the U.S. Department 21
of Agriculture Community Eligibility Provision and the student is identified by: 22
A. Direct certification; or 23
B. Income information provided by the family of the student 24
to the local school system on an alternative form developed by the Department. 25
18–303.3. 26
(a) A public institution of higher education in the State, or a private nonprofit 27
institution of higher education that is eligible for State aid under § 17–103 of this article, 28
[may] SHALL verify the eligibility of [an] EACH applicant FOR THE GUARANTEED 29
ACCESS GRANT PROGRAM and on verification of the eligibility administer, a Guaranteed 30
Access Grant in accordance with this section. 31
[(b) An institution may verify: 32 HOUSE BILL 923 17
(1) The eligibility of an applicant who: 1
(i) Is identified by the Office as potentially eligible for a Guaranteed 2
Access Grant under § 18–303 of this subtitle; and 3
(ii) Applies for admission to the institution; or 4
(2) The renewal eligibility of a student who: 5
(i) Received a Guaranteed Access Grant under § 18–303 of this 6
subtitle in the prior award year; and 7
(ii) Is an admitted student at the institution in the current award 8
year.] 9
[(c)] (B) An institution shall: 10
(1) Verify [that an] WHETHER EACH applicant qualifies for a Guaranteed 11
Access Grant under ALL OF the requirements of § 18–303 of this subtitle; 12
[(2) Evaluate the applicant’s income eligibility criteria using federal 13
standards for verification and in accordance with the income eligibility criteria established 14
by the Office;] 15
(2) CALCULATE AND OFFER THE GUARANTEED ACCESS GRANT 16
AWARD TO THE APPLICA NT UPON THE APPLICAN T’S AWARD LETTER FOR 17
ADMISSION; 18
(3) SUBMIT TO THE OFFICE ON OR BEFORE JUNE 1 EACH YEAR FOR 19
THE UPCOMING SCHOOL YEAR, INFORMATION ON THE S TUDENTS TO WHOM THE 20
INSTITUTION OF HIGHE R EDUCATION OFFERED A GUARANTEED ACCESS GRANT 21
AWARD; 22
[(3)] (4) Maintain records used by the institution to determine the 23
eligibility of applicants for a period of 5 years after the end date of the award year associated 24
with the student’s last award; [and] 25
[(4)] (5) Provide the Commission with an audit, in accordance with rules 26
adopted by the Commission, to show that awards verified and administered under this 27
section have been made properly; AND 28
(6) EVALUATE THE APPLICAN T’S INCOME ELIGIBILITY CRITERIA 29
USING FEDERAL STANDARDS FOR VERIFICATION AND IN ACCORDANCE WITH T HE 30
INCOME ELIGIBILITY C RITERIA ESTABLISHED BY THE OFFICE. 31 18 HOUSE BILL 923
(C) (1) THE OFFICE SHALL REVIEW T HE AUDIT PROVIDED TO THE 1
COMMISSION UNDER SUBS ECTION (B)(5) OF THIS SECTION NOT LESS THAN ONCE 2
EVERY 4 YEARS TO VERIFY THAT RECIPIENTS MEET THE ELIGIBILITY 3
REQUIREMENTS FOR AN AWARD. 4
(2) (I) IF THE OFFICE DETERMINES THA T AN INSTITUTION OF 5
HIGHER EDUCATION MAD E AN INCORRECT AWARD TO AN INELIGIBLE STU DENT, THE 6
INSTITUTION OF HIGHE R EDUCATION SHALL RE MIT TO THE COMMISSION THE 7
TOTAL AMOUNT OF THE AWARD MADE IN ERROR . 8
(II) THE COMMISSION SHALL PAY ALL AMOUNTS RECEIVED 9
UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH TO THE NEED–BASED STUDENT 10
FINANCIAL ASSISTANCE FUND UNDER § 18–107 OF THIS TITLE. 11
(III) THE INSTITUTION OF HIGHE R EDUCATION MAY NOT 12
REQUIRE A STUDENT TO REPAY THE COMMUNITY COLLEGE FOR AN INCOR RECT 13
AWARD MADE FROM THE GUARANTEED ACCESS GRANT. 14
(d) (1) Subject to paragraph (2) of this subsection, a verification obtained by 15
an applicant under subsection (b) of this section may be used at any eligible institution 16
described under § 18–305 of this subtitle. 17
(2) The amount of the Guaranteed Access Grant awarded to an applicant 18
may be adjusted in accordance with the cost of attendance at the institution at which the 19
applicant uses the award. 20
18–303.4. 21
(A) (1) BEGINNING WHEN FINANC IAL AID INFORMATION IS AVAILABLE 22
EACH YEAR, BUT NOT LATER THAN OCTOBER 1 EACH YEAR, THE OFFICE SHALL 23
COMPILE AND CERTIFY LISTS FOR THE ENTIRE STATE THAT RANK APPLI CANTS FOR 24
THE GUARANTEED ACCESS GRANT AWARD BY FINANC IAL NEED. 25
(2) REGULARLY, THE OFFICE SHALL PROVIDE TO EACH INSTITUTION 26
OF HIGHER EDUCATION IN THE STATE THE LISTS COMPI LED AND CERTIFIED IN 27
ACCORDANCE WITH PARA GRAPH (1) OF THIS SUBSECTION . 28
(B) (1) EACH INSTITUTION OF H IGHER EDUCATION SHAL L USE THE LISTS 29
PROVIDED BY THE OFFICE IN ACCORDANCE WITH SUBSECTION (A) OF THIS SECTION, 30
AND THE REQUIREMENTS UNDER §§ 18–303 AND 18–304 OF THIS SUBTITLE , TO 31
DETERMINE THE APPLIC ANTS WHO SHALL BE OF FERED A GUARANTEED ACCESS 32
GRANT AWARD BY THE IN STITUTION AND THE AM OUNT OF THE AWARD . 33
HOUSE BILL 923 19
(2) THE INSTITUTION SHALL SEND THE FINANCIAL A ID AWARD 1
NOTIFICATION TO AN A PPLICANT TO OFFER TH E APPLICANT A GUARANTEED 2
ACCESS GRANT AWARD . 3
(C) AN APPLICANT MAY ACCE PT THE OFFER OF A GUARANTEED ACCESS 4
GRANT AWARD FROM AN I NSTITUTION OF HIGHER EDUCATION. 5
(D) (1) EACH SEMESTER , EACH INSTITUTION SHA LL SUBMIT TO THE 6
OFFICE A LIST OF THE STUDENTS WHO WERE AW ARDED A GUARANTEED ACCESS 7
GRANT FOR THE SEMESTE R AND THE AMOUNTS AW ARDED. 8
(2) THE OFFICE SHALL REIMBURS E EACH INSTITUTION F OR THE 9
GUARANTEED ACCESS GRANT AWARDS ON THE L IST SUBMITTED IN ACC ORDANCE 10
WITH PARAGRAPH (1) OF THIS SUBSECTION . 11
(E) (1) (I) THE OFFICE SHALL COMPILE AND CERTIFY LISTS OF 12
STUDENTS WHO PREVIOU SLY RECEIVED A GUARANTEED ACCESS GRANT AWARD 13
AND ARE ELIGIBLE FOR A RENEWAL AWARD . 14
(II) THE OFFICE SHALL PROVIDE TO EACH INSTITUTION OF 15
HIGHER EDUCATION IN THE STATE THE LISTS COMPI LED AND CERTIFIED IN 16
ACCORDANCE WITH SUBP ARAGRAPH (I) OF THIS PARAGRAPH . 17
(2) (I) EACH INSTITUTION OF H IGHER EDUCATION SHAL L USE THE 18
LISTS PROVIDED BY TH E OFFICE IN ACCORDANCE WITH PARAGRAPH (1) OF THIS 19
SUBSECTION, AND THE REQUIREMENTS UNDER §§ 18–303 AND 18–304 OF THIS 20
SUBTITLE, TO DETERMINE THE STU DENTS WHO SHALL BE O FFERED A GUARANTEED 21
ACCESS GRANT RENEWAL AWARD B Y THE INSTITUTION . 22
(II) THE INSTITUTION SHALL SEND THE FINANCIAL A ID AWARD 23
NOTIFICATION TO A ST UDENT TO OFFER THE S TUDENT A GUARANTEED ACCESS 24
GRANT RENEWAL AWARD . 25
(3) THE OFFICE SHALL REIMBURS E EACH INSTITUTION F OR THE 26
GUARANTEED ACCESS GRANT RENEWAL AWARDS MADE IN ACCORDANCE WITH 27
PARAGRAPH (1) OF THIS SUBSECTION . 28
(F) THE OFFICE SHALL ADOPT RE GULATIONS TO IMPLEME NT THIS 29
SECTION. 30
18–304. 31
(a) In this section, “academic year” means: 32
20 HOUSE BILL 923
(1) The fall, spring, and summer semesters; and 1
(2) Any semester shorter in length than the term of a regular semester. 2
(b) (1) [Except as provided in § 18–307 of this subtitle, the Office] AN 3
INSTITUTION OF HIGHE R EDUCATION THAT COMPLIES WITH § 18–303.3 OF THIS 4
SUBTITLE shall determine the amount of each [Delegate Howard P. Rawlings Educational 5
Excellence] GUARANTEED ACCESS Award based on the financial need of the applicant. 6
(2) In determining the amount of financial need, the [Office] INSTITUTION 7
OF HIGHER EDUCATION shall consider regional cost–of–living differences. 8
(3) In determining the percent of financial need used to calculate an award 9
for a community college student receiving a [Delegate Howard P. Rawlings Educational 10
Excellence] GUARANTEED ACCESS Award, the [Commission] INSTITUTION OF HIGHE R 11
EDUCATION shall use [the following percentages: 12
(i) For fiscal year 2007, not less than 55%; and 13
(ii) For fiscal year 2008 and each fiscal year thereafter,] not less than 14
60%. 15
(c) (1) Except as provided in paragraphs (2) and (3) of this subsection, a 16
Delegate Howard P. Rawlings Educational Excellence Award may be awarded in $100 17
increments. 18
(2) (i) The amount of an Educational Assistance Grant made to a 19
student in the student’s first 2 academic years of enrollment may not be less than $400 or 20
more than $3,000. 21
(ii) Beginning in the third academic year of enrollment and for each 22
academic year thereafter: 23
1. If the student successfully completed at least 30 credits in 24
the prior academic year, the amount of an Educational Assistance Grant made to a student 25
may not be less than $400 or more than $3,000; or 26
2. If the student successfully completed at least 24 but less 27
than 30 credits in the prior academic year, the award amount shall be equal to the amount 28
the student would have otherwise received multiplied by the ratio of the number of credits 29
successfully completed divided by 30. 30
(3) (i) All applicants who fulfill the requirements established in § 31
18–303(a) and (b) of this subtitle shall receive a Guaranteed Access Grant. 32
HOUSE BILL 923 21
(ii) Except as provided in subparagraph (iv) of this paragraph, the 1
amount of a Guaranteed Access Grant made to a student in the student’s first 2 academic 2
years of enrollment shall be equal to 100 percent of the student’s financial need as 3
determined by the [Office] INSTITUTION OF HIGHER EDUCATION , not to exceed the 4
equivalent annual expenses of a full–time resident undergraduate at the 4–year public 5
institution of higher education within the University System of Maryland, other than the 6
University of Maryland Global Campus and University of Maryland, Baltimore Campus, 7
with the highest annual expenses for a full–time resident undergraduate. 8
(iii) Except as provided in subparagraph (iv) of this paragraph, 9
beginning in the third academic year of enrollment and for each academic year thereafter: 10
1. If the student successfully completed at least 30 credits in 11
the prior academic year, the award amount shall be equal to 100 percent of the student’s 12
financial need as determined by the [Office] INSTITUTION OF HIGHE R EDUCATION , not 13
to exceed the equivalent annual expenses of a full–time resident undergraduate at the 14
4–year public institution of higher education within the University System of Maryland, 15
other than the University of Maryland Global Campus and University of Maryland, 16
Baltimore Campus, with the highest annual expenses for a full –time resident 17
undergraduate; or 18
2. If the student successfully completed at least 24 but less 19
than 30 credits in the prior academic year, the award amount shall be equal to 100 percent 20
multiplied by the ratio of the number of credits successfully completed divided by 30. 21
(iv) If a recipient of a Guaranteed Access Grant becomes ineligible 22
because of a change in family income, the recipient shall remain eligible for the full award 23
for the full award term applicable to the recipient under this subtitle if the recipient 24
remains eligible to receive a federal Pell Grant. 25
(D) EACH INSTITUTION OF H IGHER EDUCATION SHAL L INCLUDE IN AN 26
AWARD LETTER THE FINANCIAL AID AW ARD NOTIFICATION TO A STUDENT THE 27
AVAILABILITY OF THE EDUCATIONAL ASSISTANCE AWARD ADMINISTERED BY THE 28
OFFICE, INCLUDING: 29
(1) A DESCRIPTION OF THE OFFICE AND THE EDUCATIONAL 30
ASSISTANCE AWARD; 31
(2) INFORMATION ON EDUCATIONAL ASSISTANCE AWARD 32
TIMELINES; AND 33
(3) A POINT OF CONTACT AT THE OFFICE FOR STUDENTS . 34
[(d)] (E) Beginning in fiscal year 2024 and each fiscal year thereafter, the 35
Governor shall include in the annual budget bill an appropriation of at least $112,000,000 36
for Delegate Howard P. Rawlings Educational Excellence Awards made under this subtitle. 37 22 HOUSE BILL 923
18–307. 1
(a) (1) Except as provided in subsection (d) of this section, the Office shall 2
compile and certify lists for the entire State that rank applicants by financial need FOR 3
THE EDUCATIONAL ASSISTANCE AWARD. 4
(2) AFTER AWARDS FROM INS TITUTIONS OF HIGHER EDUCATION 5
HAVE BEEN MADE AND A CCEPTED FOR THE GUARANTEED ACCESS GRANT, THE THE 6
OFFICE SHALL AWARD EL IGIBLE STUDENTS THE EDUCATIONAL ASSISTANCE 7
AWARD BASED ON FINANC IAL NEED FROM ANY RE MAINING FUNDING FOR THE 8
DELEGATE HOWARD P. RAWLINGS EDUCATIONAL EXCELLENCE AWARDS. 9
(b) All funds for annual initial grants FOR THE EDUCATIONAL ASSISTANCE 10
AWARD shall be awarded from the statewide list on the basis of greatest financial need. 11
(c) [(1) On or before April 15 each year, the Office shall send a notification to 12
each individual who applied for a Delegate Howard P. Rawlings Educational Excellence 13
Award indicating: 14
(i) Whether or not the student is a recipient of an award; and 15
(ii) If applicable, the amount awarded to the student. 16
(2) On or before May 1 of each year, the Office shall send each Senator and 17
each Delegate a list of individuals in each legislative district to whom Delegate Howard P. 18
Rawlings Educational Excellence Awards are awarded. 19
(d)] (1) (i) If State funds are available for this purpose, institutions of 20
higher education in the State may provide Delegate Howard P. Rawlings Educational 21
Excellence Awards to students who otherwise meet the requirements for receiving a 22
Delegate Howard P. Rawlings Educational Excellence Award but who apply after the 23
March 1 deadline or have other extenuating circumstances. 24
(ii) Each year the Commission shall transfer at least $2 million of 25
the funds available under § 18–107(b) of this title for the purposes of this subsection. 26
(2) The Commission shall: 27
(i) Establish guidelines for the awarding of Delegate Howard P. 28
Rawlings Educational Excellence Awards by the institutions of higher education to the 29
students; 30
(ii) Adopt regulations necessary for the implementation of this 31
subsection. 32
HOUSE BILL 923 23
(3) (i) The Commission shall allocate available funds to institutions of 1
higher education based on the proportion of State residents enrolled at each institution who 2
receive federal Pell Grants. 3
(ii) An institution of higher education that receives funds under this 4
paragraph shall provide the Commission with an annual audit describing the disposition 5
of the funds. 6
SECTION 3. AND BE IT FURTHER ENACTED, That it is the intent of the General 7
Assembly that,: 8
(1) beginning in fiscal year 2026, the Governor shall include funding for 9
financial aid offices at public institutions of higher education to implement Section 2 of this 10
Act; and 11
(2) the Maryland Higher Education Commission shall work with the 12
Segmental Advisory Council and the Financial Assistance Advisory Council to establish 13
regulations to implement Section 2 of this Act, including award deadlines and procedures 14
for renewal awards. 15
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 16
effect July 1, 2025. 17
SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in Section 18
4 of this Act, this Act shall take effect July 1, 2023. 19
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.