EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0708*
HOUSE BILL 708
F2 4lr2026
HB 522/23 – APP
By: Delegates Lopez and Griffith
Introduced and read first time: January 26, 2024
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
Institutions of Postsecondary Education – Institutional Debt – Report 2
FOR the purpose of requiring institutions of postsecondary education to submit a report on 3
institutional debt to the Maryland Higher Education Commission each year; 4
authorizing the Commission to assess a civil penalty against an institution for failure 5
to submit a report or knowingly including inaccurate information in a report; 6
establishing certain notice, appeal, and hearing procedures that the Commission 7
must follow before assessing a civil penalty against an institution; and generally 8
relating to institutional debt reporting by institutions of postsecondary education. 9
BY adding to 10
Article – Education 11
Section 11–212 12
Annotated Code of Maryland 13
(2022 Replacement Volume and 2023 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Education 17
11–212. 18
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 19
INDICATED. 20
(2) “ADMINISTRATIVE HOLD ” MEANS ANY HOLD OR LI MITATION ON A 21
STUDENT’S ACCOUNT AT AN INST ITUTION OF POSTSECON DARY EDUCATION THAT 22
PREVENTS THE STUDENT FROM ENROLLING IN CO URSES, OBTAINING OR RESIDIN G 23
IN CAMPUS HOUSING , USING FACILITIES, OR OTHERWISE LIMITING THE STUDENT’S 24 2 HOUSE BILL 708
ACCESS TO THE INSTIT UTION’S FACILITIES OR RESO URCES. 1
(3) “CHARGE OFF” MEANS AN ACCOUNTING MECHANISM BY WHICH 2
AN INSTITUTION OF PO STSECONDARY EDUCATIO N INDICATES IT NO LO NGER 3
EXPECTS TO COLLECT A N INSTITUTIONAL DEBT , REGARDL ESS OF WHETHER THE 4
INSTITUTION: 5
(I) REMOVES THE DEBT FROM ITS RECORDS; 6
(II) PURSUES THE STUDENT O WING THE DEBT ; 7
(III) ACCEPTS PAYMENT FOR T HE DEBT; OR 8
(IV) SELLS THE DEBT. 9
(4) “DEMOGRAPHIC CATEGORIE S” MEANS THE FOLLOWING GROUPS 10
AND POPULATIONS : 11
(I) RACE; 12
(II) ETHNICITY; 13
(III) AGE; 14
(IV) GENDER; 15
(V) IN–STATE OR OUT–OF–STATE RESIDENCY ; 16
(VI) ENROLLMENT STATUS ; AND 17
(VII) DEGREE, CERTIFICATE, OR CREDENTIAL CONFER RED OR 18
PURSUED. 19
(5) (I) “INSTITUTIONAL DEBT ” MEANS AN EXTENSION OF CREDIT, 20
DEBT, OR OBLIGATION OWED O R INCURRED BY A STUD ENT, IN THE STUDENT’S 21
CAPACITY AS A STUDEN T, TO AN INSTITUTION OF POSTSECONDARY EDUCAT ION. 22
(II) “INSTITUTIONAL DEBT ” INCLUDES CREDIT , DEBT, OR 23
OBLIGATION FOR : 24
1. TUITION CHARGES; 25
2. ROOM AND BOARD CHARGE S; AND 26 HOUSE BILL 708 3
3. FINES AND FEES. 1
(6) “NONJUDICIAL COLLECTIO N” MEANS COLLECTION OF 2
INSTITUTIONAL DEBT O WED BY A STUDENT TO A STATE AGENCY BY THE CENTRAL 3
COLLECTION UNIT IN THE DEPARTMENT OF BUDGET AND MANAGEMENT . 4
(7) “TUITION PAYMENT PLAN ” MEANS AN AGREEMENT UNDER WHICH 5
AN INSTITUTION OF POSTSECONDARY EDUCATION ALLOWS A STUDENT TO ENROLL 6
FOR AN ACADEMIC TERM AND DEFER PAYME NT OF PARTIAL OR FUL L COSTS 7
ASSOCIATED WITH THAT TERM. 8
(8) “VOLUNTARY PAYMENT ” MEANS A PAYMENT MADE BY A STUDENT 9
TO AN INSTITUTION OF POSTSECONDARY EDUCAT ION TO PAY AN INSTIT UTIONAL 10
DEBT, IN WHOLE OR IN PART , THAT WAS NOT MADE IN ACCORDANCE WITH A CO URT 11
JUDGMENT OR A NONJUD ICIAL COLLECTION . 12
(B) (1) ON OR BEFORE OCTOBER 1, 2025, AND EACH OCTOBER 1 13
THEREAFTER , AN INSTITUTION OF PO STSECONDARY EDUCATIO N SHALL SUBMIT TO 14
THE COMMISSION A REPORT O N INSTITUTIONAL DEBT IN ACCORDANCE WITH 15
SUBSECTION (C) OF THIS SECTION. 16
(2) ON OR BEFORE DECEMBER 1, 2025, AND EACH DECEMBER 1 17
THEREAFTER , THE COMMISSION SHALL , IN ACCORDANCE WITH § 2–1257 OF THE 18
STATE GOVERNMENT ARTICLE, SUBMIT A REPORT TO T HE GENERAL ASSEMBLY 19
SUMMARIZING THE REPO RTS SUBMITTED TO THE COMMISSION BY INSTITU TIONS OF 20
POSTSECONDARY EDUCAT ION UNDER THIS SECTI ON. 21
(C) THE REPORT REQUIRED U NDER SUBSECTION (B) OF THIS SECTION 22
SHALL INCLUDE THE FO LLOWING INFORMATION AS REFLECTED ON THE LAS T DAY 23
OF THE PREVIOUS FISCAL YEAR: 24
(1) TOTAL STUDENT ENROLLM ENT, DISAGGREGATED BY 25
DEMOGRAPHIC CATEGORI ES; 26
(2) TOTAL DOLLAR AM OUNT OF INSTITUTIONA L DEBT , 27
DISAGGREGATED BY : 28
(I) DEMOGRAPHIC CATEGORIE S; 29
(II) NUMBER OF ENROLLED AN D FORMER STUDENTS WH O OWE 30
INSTITUTIONAL DEBT ; 31
4 HOUSE BILL 708
(III) LENGTH OF TIME INSTIT UTIONAL DEBT HAS BEE N OWED; 1
(IV) TYPE OF CHARGES FOR W HICH INSTITUTIONAL DEBT W AS 2
INCURRED; 3
(V) PERCENTAGE AND TOTAL NUMBER OF STUDENTS W ITH 4
INSTITUTIONAL DEBT W HO RECEIVED A FEDERA L PELL GRANT; AND 5
(VI) DEBT AMOUNT THAT ACCRUED D URING THAT FISCAL YEAR 6
AND DEBT AMOUNT THAT ACCRUED BEFORE THAT FISCAL YEAR; 7
(3) STATUS AND COLLECTION OF INSTITUTIONAL DEB T, INCLUDING: 8
(I) PERCENTAGE AND TOTAL AMOUNT OF INSTITUTIO NAL 9
DEBT HELD IN GOOD ST ANDING AND PAST DUE ; 10
(II) THE NUMBER AND TOTAL AMOUNT OF INSTITUTIO NAL 11
DEBTS UNDER TUITION PAYMENT PLAN S, INCLUDING THE PERCEN TAGE THAT ARE 12
IN GOOD STANDING OR PAST DUE; 13
(III) THE NUMBER AND TOTAL AMOUNT OF INSTITUTIO NAL 14
DEBTS UNDER STUDENT LOAN S OWED TO THE INSTITUT ION, INCLUDING THE 15
PERCENTAGE THAT ARE IN GOOD STANDING AND PAST DUE; 16
(IV) NUMBER OF ENROLLED STUDENTS AN D FORMER STUDENTS 17
WHO MADE VOLUNTARY P AYMENTS TO THE INSTI TUTION DURING THAT FISCAL YEAR 18
AND THE TOTAL AMOUNT PAID ; 19
(V) PERCENTAGE AND TOTAL AMOUNT OF INSTITUTIO NAL 20
DEBT CHARGED OFF DURING THAT FISCAL YEAR; 21
(VI) NUMBER OF STUDENT ACCOUNTS REP ORTED TO A CREDIT 22
REPORTING AGENCY DURING THAT FISCAL YEAR; 23
(VII) PERCENTAGE AND NUMBER OF STUDENT ACCOUNTS 24
REFERRED TO A THIRD PARTY FOR DEBT COLLE CTION OR SALE DURING THAT 25
FISCAL YEAR, INCLUDING DEBT COLLE CTION AGENCIES , DEBT COLL ECTORS, AND 26
DEBT BUYERS, AND TOTAL AMOUNT COL LECTED; 27
(VIII) PERCENTAGE AND NUMBER OF STUDENT ACCOUNTS 28
SUBJECT TO LITIGATIO N BY THE INSTITUTION DURING THAT FISCAL YEAR AND THE 29
TOTAL AMOUNT COLLECT ED; AND 30
HOUSE BILL 708 5
(IX) FOR PUBLIC INSTITUTIO NS ONLY, PERCENTAGE AND 1
NUMBER OF STUDENT AC COUNTS REFERRED TO N ONJUDICIAL COLLECTIO N DURING 2
THAT FISCAL YEAR AND THE TOTAL AMOUNT COLLECT ED; 3
(4) ADMINISTRATIVE HOLD A CTIONS BY THE INSTIT UTION, 4
INCLUDING: 5
(I) NUMBER OF ENROLLED STUDENTS OR FORMER STUDENTS 6
WITH AN ADMINISTRATIVE HOLD DUE TO INSTITUTIONAL DEBT; AND 7
(II) NUMBER OF ENROLLED STUDENTS OR FORMER STUDENTS 8
WHO HAVE COMPLETED A LL REQUIRED COURSES BUT ON WHOM A DEGREE HAS NO T 9
BEEN CONFERRED DUE T O INSTITUTIONAL DEBT ; 10
(5) A LIST OF PERSONS USED BY THE INSTITUTION FOR 11
INSTITUTIONAL DEBT –RELATED ACTIVITIES , INCLUDING ORIGINATIN G LOANS, 12
ESTABLISHING AND FAC ILITATING INSTALLMEN T PLANS OR DEBT PAYM ENT, AND 13
INITIATING LAWSUITS ; 14
(6) A COPY OF ANY MODEL IN STRUMENT USED BY THE INSTITUTION 15
TO ESTABLISH AN INST ITUTIONAL DEBT , INCLUDING A PROMISSO RY NOTE, AN 16
ENROLLMENT AGREEMENT , A TUITION PAYMENT PL AN, OR A CONTRACT ; 17
(7) A SUMMARY OF AND CITAT ION TO THE INSTITUTI ON’S POLICIES 18
RELATING TO AN ENROL LED STUDENT’S FINANCIAL OBLIGATI ONS, INCLUDING: 19
(I) TUITION PAYMENT PLANS ; 20
(II) STUDENT LOANS OWED TO THE INSTITUTION; 21
(III) ADMINISTRATIVE HOLDS ; 22
(IV) DEBT COLLECTION ; AND 23
(V) REPORTS TO CREDIT REP ORTING AGENCIES ; AND 24
(8) ANY OTHER INFORMATION THE COMMISSION DETERMINES IS 25
RELEVANT TO EVALUATI NG INSTITUTIONAL DEBTS . 26
(D) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO REQUIRE AN 27
INSTITUTION OF POSTS ECONDARY EDUCATION T O REPORT PERSONAL ID ENTIFYING 28
INFORMATION OF AN EN ROLLED STUDENT OR A FORMER STUDENT . 29
6 HOUSE BILL 708
(E) (1) THE COMMISSION MAY ASSESS A PENALTY AG AINST AN 1
INSTITUTION OF POSTS ECONDARY EDUCATION I F THE INSTITUTION FA ILS TO 2
SUBMIT A REPORT REQU IRED UNDER SUBSECTIO N (B) OF THIS SECTION OR 3
KNOWINGLY INCLUDES I NACCURATE INFORMATIO N IN THE REPORT AS 4
DETERMINED BY THE COMMISSION. 5
(2) (I) BEFORE ASSESSIN G A PENALTY, THE COMMISSION SHALL 6
SEND THE INSTITUTION OF POSTSECONDARY EDU CATION A NOTICE OF T HE 7
CHARGES AGAINST THE INSTITUTION AND GIVE THE INSTITUTION AN O PPORTUNITY 8
WITHIN 20 DAYS AFTER THE DATE OF RECEIPT OF THE NOTICE TO REQ UEST A 9
HEARING. 10
(II) A NOTICE OF CHARGES UN DER SUBPARAGRAPH (I) OF THIS 11
PARAGRAPH SHALL : 12
1. DESCRIBE THE DEFICIEN CIES IN THE REPORT ; AND 13
2. DIRECT THE INSTITUTIO N TO CORRECT THE 14
DEFICIENCIES WITHIN 30 DAYS AFTER THE DAY THE INSTITUT ION RECEIVED THE 15
NOTICE FROM THE COMMISSION. 16
(3) IF THE INSTITUTION OF POSTSECONDARY EDUCAT ION REQUESTS 17
A HEARING WITHIN THE 20–DAY PERIOD: 18
(I) THE COMMISSION SHALL PROM PTLY HOLD A HEARING , BUT 19
NOT LATER THAN 60 DAYS AFTER RECEIPT O F THE REQUEST FOR A HEARING; AND 20
(II) THE INSTITUTION SHALL HAVE T HE OPPORTUNITY TO BE 21
HEARD PUBLICLY BEFOR E THE COMMISSION IN THE INS TITUTION’S OWN DEFENSE , 22
IN PERSON, AND BY COUNSEL . 23
(4) IF THE COMMISSION DETERMINES THAT AN INSTITUTION OF 24
POSTSECONDARY EDUCAT ION FAILS TO SUBMIT THE REPORT REQUIRE D UNDER 25
SUBSECTION (B) OF THIS SECTION OR K NOWINGLY INCLUDES IN ACCURATE 26
INFORMATION IN THE R EPORT, THE COMMISSION MAY IMPOSE A CIVIL PENALTY , 27
NOT EXCEEDING $10,000, FOR EACH VIOLATION . 28
(F) THE COMMISSION SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 29
SECTION. 30
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 31
1, 2024. 32