EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0920*
HOUSE BILL 920
F2 5lr1267
HB 708/24 – APP
By: Delegates Spiegel, Kaufman, Lopez, and Terrasa
Introduced and read first time: January 31, 2025
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 and hearing procedures that the Commission must follow 7
before assessing a civil penalty against an institution; and generally relating to 8
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 2024 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 MEAN INGS 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 T HE STUDENT’S 24 2 HOUSE BILL 920
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 , REGARDLESS OF WHETHE R 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 O F 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 920 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 U NDER WHICH 5
AN INSTITUTION OF PO STSECONDARY EDUCATIO N ALLOWS A STUDENT T O ENROLL 6
FOR AN ACADEMIC TERM AND DEFER PAYMENT OF PARTIAL OR FULL COST S 7
ASSOCIATED WITH THAT TERM. 8
(8) “VOLUNTARY PAYMENT ” MEANS A PAY MENT MADE BY A STUDE NT 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, 2026, 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, 2026, 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 UNDE R SUBSECTION (B)(1) OF THIS SECTION 22
SHALL INCLUDE THE FO LLOWING INFORMATION AS REFLECTED ON THE LAST DAY 23
OF THE PREVIOUS FISC AL YEAR: 24
(1) TOTAL STUDENT ENROLLM ENT, DISAGGREGATED BY 25
DEMOGRAPHIC CATEGORI ES; 26
(2) TOTAL DOLLAR AMOUNT O F INSTITUTIONAL 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 920
(III) LENGTH OF TIME INSTIT UTIONAL DEBT HAS BEE N OWED; 1
(IV) TYPE OF CHARGES FOR W HICH INSTITUTIONAL D EBT WAS 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 ACCR UED DURING THAT FISC AL YEAR 6
AND DEBT AMOUNT THAT ACCRUED BEFORE THAT FISCAL YEAR; 7
(3) STATUS AND COLLECTION OF INSTITUTIONAL DEBT , 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 PLANS , 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 LOANS OWED TO THE IN STITUTION, INCLUDING THE 15
PERCENTAGE THAT ARE IN GOOD STANDING AND PAST DUE; 16
(IV) NUMBER OF ENROLLED ST UDENTS AND FORMER ST UDENTS 17
WHO MADE VOLUNTARY PAYMENT S TO THE INSTITUTION DURING THAT FISCAL Y EAR 18
AND THE TOTAL AMOUNT PAID; 19
(V) PERCENTAGE AND TOTAL AMOUNT OF INSTITUTIO NAL 20
DEBT CHARGED OFF DUR ING THAT FISCAL YEAR ; 21
(VI) NUMBER OF STUDENT ACC OUNTS REPORTED TO A CREDIT 22
REPORTING AG ENCY DURING THAT FIS CAL 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 COLLECTORS , 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 Y EAR AND THE 29
TOTAL AMOUNT COLLECT ED; AND 30
HOUSE BILL 920 5
(IX) FOR PUBLIC INSTITUTIO NS ONLY, PERCENTAGE AND 1
NUMBER OF STUDENT AC COUNTS REFERRED TO N ONJUDICIAL COLLECTION DUR ING 2
THAT FISCAL YEAR AND THE TOTAL AMOUNT COL LECTED; 3
(4) ADMINISTRATIVE HOLD A CTIONS BY THE INSTIT UTION, 4
INCLUDING: 5
(I) NUMBER OF ENROLLED ST UDENTS OR FORMER STU DENTS 6
WITH AN ADMINISTRATI VE HOLD DUE TO INSTI TUTIONAL DEBT ; AND 7
(II) NUMBER OF ENROLLED ST UDENTS OR FORMER STU DENTS 8
WHO HAVE COMPLETED A LL REQUIRED COURSES BUT ON WHOM A DEGREE HAS NOT 9
BEEN CONFERRED DUE T O INSTITUTIONAL DEBT ; 10
(5) A LIST OF PERSONS USED BY THE INSTITUTION F OR 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
ENROLLM ENT 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 DEB TS. 26
(D) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO REQU IRE 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 920
(E) (1) SUBJECT TO PARAGRAPH S (2) AND (3) OF THIS SUBSECTION , THE 1
COMMISSION MAY ASSESS A CIVIL PENALTY AGAINST AN INSTIT UTION OF 2
POSTSECONDARY EDUCAT ION IF THE INSTITUTI ON FAILS TO SUBMIT A REPORT 3
REQUIRED UNDER SUBSE CTION (B) OF THIS SECTION OR K NOWINGLY INCLUDES 4
INACCURATE INFORMATI ON IN A REPORT AS DETERMINED BY THE COMMISSION. 5
(2) (I) BEFORE ASSESSING 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
TO REQUEST A HEARING WITHIN 20 DAYS AFTER THE DATE OF RECEIPT OF THE 9
NOTICE. 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 T HE INSTITUTION RECEI VED 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 NOT 19
LATER THAN 60 DAYS AFTER RECEIPT O F THE REQUEST FOR A HEARING; AND 20
(II) THE INSTITUTION SHALL HA VE THE OPPORTUNITY T O 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 A REPORT REQUI RED UNDER 25
SUBSECTION (B) OF THIS SECTION OR K NOWINGLY INCLUDES IN ACCURATE 26
INFORMATION IN A REPORT, THE COMMISSION MAY IMPOSE A CIVIL PENALTY, NOT 27
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, 2025. 32