Maryland 2024 Regular Session

Maryland House Bill HB708 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	hb0708
6	6
7	7	HOUSE BILL 708
8	8	F2 4lr2026
9	9	HB 522/23 – APP
10	10	By: Delegates Lopez and Griffith
11	11	Introduced and read first time: January 26, 2024
12	12	Assigned to: Appropriations
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Institutions of Postsecondary Education – Institutional Debt – Report 2
19	19
20	20	FOR the purpose of requiring institutions of postsecondary education to submit a report on 3
21	21	institutional debt to the Maryland Higher Education Commission each year; 4
22	22	authorizing the Commission to assess a civil penalty against an institution for failure 5
23	23	to submit a report or knowingly including inaccurate information in a report; 6
24	24	establishing certain notice, appeal, and hearing procedures that the Commission 7
25	25	must follow before assessing a civil penalty against an institution; and generally 8
26	26	relating to institutional debt reporting by institutions of postsecondary education. 9
27	27
28	28	BY adding to 10
29	29	Article – Education 11
30	30	Section 11–212 12
31	31	Annotated Code of Maryland 13
32	32	(2022 Replacement Volume and 2023 Supplement) 14
33	33
34	34	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
35	35	That the Laws of Maryland read as follows: 16
36	36
37	37	Article – Education 17
38	38
39	39	11–212. 18
40	40
41	41	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 19
42	42	INDICATED. 20
43	43
44	44	(2) “ADMINISTRATIVE HOLD ” MEANS ANY HOLD OR LI MITATION ON A 21
45	45	STUDENT’S ACCOUNT AT AN INST ITUTION OF POSTSECON DARY EDUCATION THAT 22
46	46	PREVENTS THE STUDENT FROM ENROLLING IN CO URSES, OBTAINING OR RESIDIN G 23
47	47	IN CAMPUS HOUSING , USING FACILITIES, OR OTHERWISE LIMITING THE STUDENT’S 24 2 HOUSE BILL 708
48	48
49	49
50	50	ACCESS TO THE INSTIT UTION’S FACILITIES OR RESO URCES. 1
51	51
52	52	(3) “CHARGE OFF” MEANS AN ACCOUNTING MECHANISM BY WHICH 2
53	53	AN INSTITUTION OF PO STSECONDARY EDUCATIO N INDICATES IT NO LO NGER 3
54	54	EXPECTS TO COLLECT A N INSTITUTIONAL DEBT , REGARDL ESS OF WHETHER THE 4
55	55	INSTITUTION: 5
56	56
57	57	(I) REMOVES THE DEBT FROM ITS RECORDS; 6
58	58
59	59	(II) PURSUES THE STUDENT O WING THE DEBT ; 7
60	60
61	61	(III) ACCEPTS PAYMENT FOR T HE DEBT; OR 8
62	62
63	63	(IV) SELLS THE DEBT. 9
64	64
65	65	(4) “DEMOGRAPHIC CATEGORIE S” MEANS THE FOLLOWING GROUPS 10
66	66	AND POPULATIONS : 11
67	67
68	68	(I) RACE; 12
69	69
70	70	(II) ETHNICITY; 13
71	71
72	72	(III) AGE; 14
73	73
74	74	(IV) GENDER; 15
75	75
76	76	(V) IN–STATE OR OUT–OF–STATE RESIDENCY ; 16
77	77
78	78	(VI) ENROLLMENT STATUS ; AND 17
79	79
80	80	(VII) DEGREE, CERTIFICATE, OR CREDENTIAL CONFER RED OR 18
81	81	PURSUED. 19
82	82
83	83	(5) (I) “INSTITUTIONAL DEBT ” MEANS AN EXTENSION OF CREDIT, 20
84	84	DEBT, OR OBLIGATION OWED O R INCURRED BY A STUD ENT, IN THE STUDENT’S 21
85	85	CAPACITY AS A STUDEN T, TO AN INSTITUTION OF POSTSECONDARY EDUCAT ION. 22
86	86
87	87	(II) “INSTITUTIONAL DEBT ” INCLUDES CREDIT , DEBT, OR 23
88	88	OBLIGATION FOR : 24
89	89
90	90	1. TUITION CHARGES; 25
91	91
92	92	2. ROOM AND BOARD CHARGE S; AND 26 HOUSE BILL 708 3
93	93
94	94
95	95
96	96	3. FINES AND FEES. 1
97	97
98	98	(6) “NONJUDICIAL COLLECTIO N” MEANS COLLECTION OF 2
99	99	INSTITUTIONAL DEBT O WED BY A STUDENT TO A STATE AGENCY BY THE CENTRAL 3
100	100	COLLECTION UNIT IN THE DEPARTMENT OF BUDGET AND MANAGEMENT . 4
101	101
102	102	(7) “TUITION PAYMENT PLAN ” MEANS AN AGREEMENT UNDER WHICH 5
103	103	AN INSTITUTION OF POSTSECONDARY EDUCATION ALLOWS A STUDENT TO ENROLL 6
104	104	FOR AN ACADEMIC TERM AND DEFER PAYME NT OF PARTIAL OR FUL L COSTS 7
105	105	ASSOCIATED WITH THAT TERM. 8
106	106
107	107	(8) “VOLUNTARY PAYMENT ” MEANS A PAYMENT MADE BY A STUDENT 9
108	108	TO AN INSTITUTION OF POSTSECONDARY EDUCAT ION TO PAY AN INSTIT UTIONAL 10
109	109	DEBT, IN WHOLE OR IN PART , THAT WAS NOT MADE IN ACCORDANCE WITH A CO URT 11
110	110	JUDGMENT OR A NONJUD ICIAL COLLECTION . 12
111	111
112	112	(B) (1) ON OR BEFORE OCTOBER 1, 2025, AND EACH OCTOBER 1 13
113	113	THEREAFTER , AN INSTITUTION OF PO STSECONDARY EDUCATIO N SHALL SUBMIT TO 14
114	114	THE COMMISSION A REPORT O N INSTITUTIONAL DEBT IN ACCORDANCE WITH 15
115	115	SUBSECTION (C) OF THIS SECTION. 16
116	116
117	117	(2) ON OR BEFORE DECEMBER 1, 2025, AND EACH DECEMBER 1 17
118	118	THEREAFTER , THE COMMISSION SHALL , IN ACCORDANCE WITH § 2–1257 OF THE 18
119	119	STATE GOVERNMENT ARTICLE, SUBMIT A REPORT TO T HE GENERAL ASSEMBLY 19
120	120	SUMMARIZING THE REPO RTS SUBMITTED TO THE COMMISSION BY INSTITU TIONS OF 20
121	121	POSTSECONDARY EDUCAT ION UNDER THIS SECTI ON. 21
122	122
123	123	(C) THE REPORT REQUIRED U NDER SUBSECTION (B) OF THIS SECTION 22
124	124	SHALL INCLUDE THE FO LLOWING INFORMATION AS REFLECTED ON THE LAS T DAY 23
125	125	OF THE PREVIOUS FISCAL YEAR: 24
126	126
127	127	(1) TOTAL STUDENT ENROLLM ENT, DISAGGREGATED BY 25
128	128	DEMOGRAPHIC CATEGORI ES; 26
129	129
130	130	(2) TOTAL DOLLAR AM OUNT OF INSTITUTIONA L DEBT , 27
131	131	DISAGGREGATED BY : 28
132	132
133	133	(I) DEMOGRAPHIC CATEGORIE S; 29
134	134
135	135	(II) NUMBER OF ENROLLED AN D FORMER STUDENTS WH O OWE 30
136	136	INSTITUTIONAL DEBT ; 31
137	137	4 HOUSE BILL 708
138	138
139	139
140	140	(III) LENGTH OF TIME INSTIT UTIONAL DEBT HAS BEE N OWED; 1
141	141
142	142	(IV) TYPE OF CHARGES FOR W HICH INSTITUTIONAL DEBT W AS 2
143	143	INCURRED; 3
144	144
145	145	(V) PERCENTAGE AND TOTAL NUMBER OF STUDENTS W ITH 4
146	146	INSTITUTIONAL DEBT W HO RECEIVED A FEDERA L PELL GRANT; AND 5
147	147
148	148	(VI) DEBT AMOUNT THAT ACCRUED D URING THAT FISCAL YEAR 6
149	149	AND DEBT AMOUNT THAT ACCRUED BEFORE THAT FISCAL YEAR; 7
150	150
151	151	(3) STATUS AND COLLECTION OF INSTITUTIONAL DEB T, INCLUDING: 8
152	152
153	153	(I) PERCENTAGE AND TOTAL AMOUNT OF INSTITUTIO NAL 9
154	154	DEBT HELD IN GOOD ST ANDING AND PAST DUE ; 10
155	155
156	156	(II) THE NUMBER AND TOTAL AMOUNT OF INSTITUTIO NAL 11
157	157	DEBTS UNDER TUITION PAYMENT PLAN S, INCLUDING THE PERCEN TAGE THAT ARE 12
158	158	IN GOOD STANDING OR PAST DUE; 13
159	159
160	160	(III) THE NUMBER AND TOTAL AMOUNT OF INSTITUTIO NAL 14
161	161	DEBTS UNDER STUDENT LOAN S OWED TO THE INSTITUT ION, INCLUDING THE 15
162	162	PERCENTAGE THAT ARE IN GOOD STANDING AND PAST DUE; 16
163	163
164	164	(IV) NUMBER OF ENROLLED STUDENTS AN D FORMER STUDENTS 17
165	165	WHO MADE VOLUNTARY P AYMENTS TO THE INSTI TUTION DURING THAT FISCAL YEAR 18
166	166	AND THE TOTAL AMOUNT PAID ; 19
167	167
168	168	(V) PERCENTAGE AND TOTAL AMOUNT OF INSTITUTIO NAL 20
169	169	DEBT CHARGED OFF DURING THAT FISCAL YEAR; 21
170	170
171	171	(VI) NUMBER OF STUDENT ACCOUNTS REP ORTED TO A CREDIT 22
172	172	REPORTING AGENCY DURING THAT FISCAL YEAR; 23
173	173
174	174	(VII) PERCENTAGE AND NUMBER OF STUDENT ACCOUNTS 24
175	175	REFERRED TO A THIRD PARTY FOR DEBT COLLE CTION OR SALE DURING THAT 25
176	176	FISCAL YEAR, INCLUDING DEBT COLLE CTION AGENCIES , DEBT COLL ECTORS, AND 26
177	177	DEBT BUYERS, AND TOTAL AMOUNT COL LECTED; 27
178	178
179	179	(VIII) PERCENTAGE AND NUMBER OF STUDENT ACCOUNTS 28
180	180	SUBJECT TO LITIGATIO N BY THE INSTITUTION DURING THAT FISCAL YEAR AND THE 29
181	181	TOTAL AMOUNT COLLECT ED; AND 30
182	182	HOUSE BILL 708 5
183	183
184	184
185	185	(IX) FOR PUBLIC INSTITUTIO NS ONLY, PERCENTAGE AND 1
186	186	NUMBER OF STUDENT AC COUNTS REFERRED TO N ONJUDICIAL COLLECTIO N DURING 2
187	187	THAT FISCAL YEAR AND THE TOTAL AMOUNT COLLECT ED; 3
188	188
189	189	(4) ADMINISTRATIVE HOLD A CTIONS BY THE INSTIT UTION, 4
190	190	INCLUDING: 5
191	191
192	192	(I) NUMBER OF ENROLLED STUDENTS OR FORMER STUDENTS 6
193	193	WITH AN ADMINISTRATIVE HOLD DUE TO INSTITUTIONAL DEBT; AND 7
194	194
195	195	(II) NUMBER OF ENROLLED STUDENTS OR FORMER STUDENTS 8
196	196	WHO HAVE COMPLETED A LL REQUIRED COURSES BUT ON WHOM A DEGREE HAS NO T 9
197	197	BEEN CONFERRED DUE T O INSTITUTIONAL DEBT ; 10
198	198
199	199	(5) A LIST OF PERSONS USED BY THE INSTITUTION FOR 11
200	200	INSTITUTIONAL DEBT –RELATED ACTIVITIES , INCLUDING ORIGINATIN G LOANS, 12
201	201	ESTABLISHING AND FAC ILITATING INSTALLMEN T PLANS OR DEBT PAYM ENT, AND 13
202	202	INITIATING LAWSUITS ; 14
203	203
204	204	(6) A COPY OF ANY MODEL IN STRUMENT USED BY THE INSTITUTION 15
205	205	TO ESTABLISH AN INST ITUTIONAL DEBT , INCLUDING A PROMISSO RY NOTE, AN 16
206	206	ENROLLMENT AGREEMENT , A TUITION PAYMENT PL AN, OR A CONTRACT ; 17
207	207
208	208	(7) A SUMMARY OF AND CITAT ION TO THE INSTITUTI ON’S POLICIES 18
209	209	RELATING TO AN ENROL LED STUDENT’S FINANCIAL OBLIGATI ONS, INCLUDING: 19
210	210
211	211	(I) TUITION PAYMENT PLANS ; 20
212	212
213	213	(II) STUDENT LOANS OWED TO THE INSTITUTION; 21
214	214
215	215	(III) ADMINISTRATIVE HOLDS ; 22
216	216
217	217	(IV) DEBT COLLECTION ; AND 23
218	218
219	219	(V) REPORTS TO CREDIT REP ORTING AGENCIES ; AND 24
220	220
221	221	(8) ANY OTHER INFORMATION THE COMMISSION DETERMINES IS 25
222	222	RELEVANT TO EVALUATI NG INSTITUTIONAL DEBTS . 26
223	223
224	224	(D) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO REQUIRE AN 27
225	225	INSTITUTION OF POSTS ECONDARY EDUCATION T O REPORT PERSONAL ID ENTIFYING 28
226	226	INFORMATION OF AN EN ROLLED STUDENT OR A FORMER STUDENT . 29
227	227	6 HOUSE BILL 708
228	228
229	229
230	230	(E) (1) THE COMMISSION MAY ASSESS A PENALTY AG AINST AN 1
231	231	INSTITUTION OF POSTS ECONDARY EDUCATION I F THE INSTITUTION FA ILS TO 2
232	232	SUBMIT A REPORT REQU IRED UNDER SUBSECTIO N (B) OF THIS SECTION OR 3
233	233	KNOWINGLY INCLUDES I NACCURATE INFORMATIO N IN THE REPORT AS 4
234	234	DETERMINED BY THE COMMISSION. 5
235	235
236	236	(2) (I) BEFORE ASSESSIN G A PENALTY, THE COMMISSION SHALL 6
237	237	SEND THE INSTITUTION OF POSTSECONDARY EDU CATION A NOTICE OF T HE 7
238	238	CHARGES AGAINST THE INSTITUTION AND GIVE THE INSTITUTION AN O PPORTUNITY 8
239	239	WITHIN 20 DAYS AFTER THE DATE OF RECEIPT OF THE NOTICE TO REQ UEST A 9
240	240	HEARING. 10
241	241
242	242	(II) A NOTICE OF CHARGES UN DER SUBPARAGRAPH (I) OF THIS 11
243	243	PARAGRAPH SHALL : 12
244	244
245	245	1. DESCRIBE THE DEFICIEN CIES IN THE REPORT ; AND 13
246	246
247	247	2. DIRECT THE INSTITUTIO N TO CORRECT THE 14
248	248	DEFICIENCIES WITHIN 30 DAYS AFTER THE DAY THE INSTITUT ION RECEIVED THE 15
249	249	NOTICE FROM THE COMMISSION. 16
250	250
251	251	(3) IF THE INSTITUTION OF POSTSECONDARY EDUCAT ION REQUESTS 17
252	252	A HEARING WITHIN THE 20–DAY PERIOD: 18
253	253
254	254	(I) THE COMMISSION SHALL PROM PTLY HOLD A HEARING , BUT 19
255	255	NOT LATER THAN 60 DAYS AFTER RECEIPT O F THE REQUEST FOR A HEARING; AND 20
256	256
257	257	(II) THE INSTITUTION SHALL HAVE T HE OPPORTUNITY TO BE 21
258	258	HEARD PUBLICLY BEFOR E THE COMMISSION IN THE INS TITUTION’S OWN DEFENSE , 22
259	259	IN PERSON, AND BY COUNSEL . 23
260	260
261	261	(4) IF THE COMMISSION DETERMINES THAT AN INSTITUTION OF 24
262	262	POSTSECONDARY EDUCAT ION FAILS TO SUBMIT THE REPORT REQUIRE D UNDER 25
263	263	SUBSECTION (B) OF THIS SECTION OR K NOWINGLY INCLUDES IN ACCURATE 26
264	264	INFORMATION IN THE R EPORT, THE COMMISSION MAY IMPOSE A CIVIL PENALTY , 27
265	265	NOT EXCEEDING $10,000, FOR EACH VIOLATION . 28
266	266
267	267	(F) THE COMMISSION SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 29
268	268	SECTION. 30
269	269
270	270	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 31
271	271	1, 2024. 32