EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0541* HOUSE BILL 541 F2, F3 4lr3090 CF 4lr1483 By: Delegates Henson, Bagnall, Bartlett, D. Jones, Kipke, Lehman, Pruski, Rogers, Schmidt, and Simmons Introduced and read first time: January 24, 2024 Assigned to: Appropriations A BILL ENTITLED AN ACT concerning 1 Anne Arundel County – Student Loan Assistance Repayment Program for 2 Educators – Established 3 FOR the purpose of establishing the Anne Arundel County Student Loan Assistance 4 Repayment Program for Educators to assist in the repayment of certain student 5 loans owed by educators who meet certain eligibility requirements; authorizing the 6 governing body of Anne Arundel County to establish the Program for educators 7 employed by the Anne Arundel County Public School System; requiring the county 8 to establish the amount and terms and conditions of the Program; and generally 9 relating to the establishment of the Anne Arundel County Student Loan Assistance 10 Repayment Program for Educators. 11 BY adding to 12 Article – Education 13 Section 18–4001 through 18–4005 to be under the new subtitle “Subtitle 40. Anne 14 Arundel County Student Loan Assistance Repayment Program for Educators” 15 Annotated Code of Maryland 16 (2022 Replacement Volume and 2023 Supplement) 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 SUBTITLE 40. ANNE ARUNDEL COUNTY STUDENT LOAN ASSISTANCE REPAYMENT 21 PROGRAM FOR EDUCATORS. 22 18–4001. 23 2 HOUSE BILL 541 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 1 INDICATED. 2 (B) “HIGHER EDUCATION LOAN ” MEANS ANY LOAN FOR U NDERGRADUATE 3 OR GRADUATE STUDY TH AT IS OBTAINED FOR T UITION, EDUCATIONAL EXPENSES , 4 OR LIVING EXPENSES F ROM: 5 (1) A COLLEGE OR UNIVERSITY , GOVERNMENT , OR COMMERCIAL 6 SOURCE; OR 7 (2) AN ORGANIZATION , AN INSTITUTION , AN ASSOCIATION , A 8 SOCIETY, OR A CORPORATION THA T IS EXEMPT FROM TAX ATION UNDER § 501(C)(3) 9 OR (4) OF THE INTERNAL REVENUE CODE OF 1986. 10 (C) “PROGRAM” MEANS THE ANNE ARUNDEL COUNTY STUDENT LOAN 11 ASSISTANCE REPAYMENT PROGRAM FOR EDUCATORS. 12 18–4002. 13 (A) IN ANNE ARUNDEL COUNTY, THE GOVERNING BOARD OF THE COUNTY 14 MAY ESTABLISH A STUD ENT LOAN ASSISTANCE REPAYMENT PROGRAM FO R 15 EDUCATORS EMPLOYED B Y THE ANNE ARUNDEL COUNTY PUBLIC SCHOOL SYSTEM. 16 (B) THE PURPOSE OF THE PROGRAM IS TO ATTRACT , RECRUIT, AND RETAIN 17 A DIVERSE CADRE OF Q UALIFIED EDUCATORS I N THE ANNE ARUNDEL COUNTY 18 PUBLIC SCHOOL SYSTEM THAT IS REFLEC TIVE OF THE STUDENT POPULATION 19 WITHIN THE COUNTY SC HOOLS. 20 (C) SUBJECT TO SUBSECTION (D) OF THIS SECTION , THE COUNTY SHALL 21 ASSIST IN THE REPAYM ENT OF HIGHER EDUCAT ION LOANS OWED BY AN INDIVIDUAL 22 WHO: 23 (1) RECEIVES A GRADUATE , PROFESSIONAL , OR UNDERGRADUATE 24 DEGREE FROM AN ACCRE DITED COLLEGE OR UNI VERSITY; 25 (2) OBTAINS EMPLOYMENT AS AN EDUCATOR IN THE ANNE ARUNDEL 26 COUNTY PUBLIC SCHOOL SYSTEM; 27 (3) COMMITS TO SERVE IN T HE ANNE ARUNDEL COUNTY PUBLIC 28 SCHOOL SYSTEM FOR A PERIOD O F NOT LESS THAN 5 YEARS; 29 (4) RECEIVES AN INCOME TH AT IS LESS THAN THE MAXIMUM 30 ELIGIBLE TOTAL INCOME LEVE LS ESTABLISHED BY TH E COUNTY, INCLUDING ANY 31 ADDITIONAL SOURCES O F INCOME THE INDIVID UAL MAY EARN ; 32 HOUSE BILL 541 3 (5) IS NOT IN DEFAULT ON ANY STUDENT LOAN ; AND 1 (6) SATISFIES ANY OTHER C RITERIA ESTABLISHED UNDER THE 2 PROGRAM BY THE COUNTY . 3 (D) AN APPLICANT FOR ASSI STANCE IN THE REPAYM ENT OF A COMMERCIAL 4 LOAN SHALL DEMONSTRA TE TO THE COUNTY THA T THE COMMERCIAL LOA N WAS 5 USED FOR TUITION , EDUCATIONAL EXPENSES , OR LIVING EXPENSES F OR GRADUATE 6 OR UNDERGRADUATE STU DY. 7 18–4003. 8 LOAN ASSISTANCE UNDER THE PROGRAM SHALL BE IN T HE AMOUNT AND ON 9 THE TERMS AND CONDIT IONS ESTABLISHED BY THE COUNTY. 10 18–4004. 11 THE PROGRAM SHALL BE ADMI NISTERED BY THE ANNE ARUNDEL COUNTY 12 PUBLIC SCHOOL SYSTEM. 13 18–4005. 14 (A) FUNDS FOR THE PROGRAM SHALL BE AS P ROVIDED ON AN ANNUAL 15 BASIS IN THE COUNTY BUDGET IN AN APPROPR IATION SEPARATE FROM THE 16 COUNTY’S APPROPRIATION TO T HE OPERATING BUDGET OF THE ANNE ARUNDEL 17 COUNTY BOARD OF EDUCATION. 18 (B) FUNDS FOR THE PROGRAM MAY BE USED T O COVER ADMINISTRATI VE 19 EXPENSES OF THE PROGRAM. 20 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 21 October 1, 2024. 22