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.
*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
Committee Report: Favorable
House action: Adopted
Read second time: February 27, 2025
CHAPTER ______
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 MEANINGS 19
INDICATED. 20 2 HOUSE BILL 920
(2) “ADMINISTRATIVE HOLD ” MEANS ANY HOLD OR LI MITATION ON A 1
STUDENT’S ACCOUNT AT AN INST ITUTION OF POSTSECON DARY EDUCATION THAT 2
PREVENTS THE STUDENT FROM ENROLLING IN CO URSES, OBTAINING OR RESIDIN G 3
IN CAMPUS HOUSING , USING FACILITIES, OR OTHERWISE LIMITIN G THE STUDENT’S 4
ACCESS TO THE INSTIT UTION’S FACILITIES OR RESO URCES. 5
(3) “CHARGE OFF” MEANS AN ACCOUNTING MECHANISM BY WHICH 6
AN INSTITUTION OF PO STSECONDARY EDUCATIO N INDICATES IT NO LO NGER 7
EXPECTS TO COLLECT A N INSTITUTIONAL DEBT , REGARDLESS OF WHETHE R THE 8
INSTITUTION: 9
(I) REMOVES THE DEBT FROM ITS RECORDS; 10
(II) PURSUES THE STUDENT O WING THE DEBT ; 11
(III) ACCEPTS PAYMENT FOR T HE DEBT; OR 12
(IV) SELLS THE DEBT. 13
(4) “DEMOGRAPHIC CATEGORIE S” MEANS THE FOLLOWING GROUPS 14
AND POPULATIONS : 15
(I) RACE; 16
(II) ETHNICITY; 17
(III) AGE; 18
(IV) GENDER; 19
(V) IN–STATE OR OUT–OF–STATE RESIDENCY ; 20
(VI) ENROLLMENT STATUS ; AND 21
(VII) DEGREE, CERTIFICATE, OR CREDENTIAL CONFER RED OR 22
PURSUED. 23
(5) (I) “INSTITUTIONAL DEBT ” MEANS AN EXTENSION O F CREDIT, 24
DEBT, OR OBLIGATION OWED O R INCURRED BY A STUD ENT, IN THE STUDENT ’S 25
CAPACITY AS A STUDEN T, TO AN INSTITUTION OF POSTSECONDARY EDUCAT ION. 26
(II) “INSTITUTIONAL DEBT ” INCLUDES CREDIT , DEBT, OR 27 HOUSE BILL 920 3
OBLIGATION FOR : 1
1. TUITION CHARGES ; 2
2. ROOM AND BOARD CHARGES ; AND 3
3. FINES AND FEES. 4
(6) “NONJUDICIAL COLLECTIO N” MEANS COLLECTION OF 5
INSTITUTIONAL DEBT O WED BY A STUDENT TO A STATE AGENCY BY THE CENTRAL 6
COLLECTION UNIT IN THE DEPARTMENT OF BUDGET AND MANAGEMENT . 7
(7) “TUITION PAYMENT PLAN ” MEANS AN AGREEMENT U NDER WHICH 8
AN INSTITUTION OF PO STSECONDARY EDUCATIO N ALLOWS A STUDENT T O ENROLL 9
FOR AN ACADEMIC TERM AND DEFER PAYMENT OF PARTIAL OR FULL COST S 10
ASSOCIATED WITH THAT TERM. 11
(8) “VOLUNTARY PAYMENT ” MEANS A PAYMENT MADE BY A STUDENT 12
TO AN INSTITUTION OF PO STSECONDARY EDUCATIO N TO PAY AN INSTITUT IONAL 13
DEBT, IN WHOLE OR IN PART , THAT WAS NOT MADE IN ACCORDANCE WITH A CO URT 14
JUDGMENT OR A NONJUD ICIAL COLLECTION . 15
(B) (1) ON OR BEFORE OCTOBER 1, 2026, AND EACH OCTOBER 1 16
THEREAFTER , AN INSTITUTION OF POSTSECOND ARY EDUCATION SHALL SUBMIT TO 17
THE COMMISSION A REPORT O N INSTITUTIONAL DEBT IN ACCORDANCE WITH 18
SUBSECTION (C) OF THIS SECTION. 19
(2) ON OR BEFORE DECEMBER 1, 2026, AND EACH DECEMBER 1 20
THEREAFTER , THE COMMISSION SHALL , IN ACCORDANCE WIT H § 2–1257 OF THE 21
STATE GOVERNMENT ARTICLE, SUBMIT A REPORT TO T HE GENERAL ASSEMBLY 22
SUMMARIZING THE REPO RTS SUBMITTED TO THE COMMISSION BY INSTITU TIONS OF 23
POSTSECONDARY EDUCAT ION UNDER THIS SECTI ON. 24
(C) THE REPORT REQUIRED UNDE R SUBSECTION (B)(1) OF THIS SECTION 25
SHALL INCLUDE THE FO LLOWING INFORMATION AS REFLECTED ON THE LAST DAY 26
OF THE PREVIOUS FISC AL YEAR: 27
(1) TOTAL STUDENT ENROLLM ENT, DISAGGREGATED BY 28
DEMOGRAPHIC CATEGORI ES; 29
(2) TOTAL DOLLAR AMOUNT O F INSTITUTIONAL DEBT , 30
DISAGGREGATED BY : 31
4 HOUSE BILL 920
(I) DEMOGRAPHIC CATEGORIE S; 1
(II) NUMBER OF ENROLLED AN D FORMER STUDENTS WH O OWE 2
INSTITUTIONAL DEBT ; 3
(III) LENGTH OF TIME INSTIT UTIONAL DEBT HAS BEE N OWED; 4
(IV) TYPE OF CHARGES FOR W HICH INSTITUTIONAL D EBT WAS 5
INCURRED; 6
(V) PERCENTAGE A ND TOTAL NUMBER OF S TUDENTS WITH 7
INSTITUTIONAL DEBT W HO RECEIVED A FEDERA L PELL GRANT; AND 8
(VI) DEBT AMOUNT THAT ACCR UED DURING THAT FISC AL YEAR 9
AND DEBT AMOUNT THAT ACCRUED BEFORE THAT FISCAL YEAR; 10
(3) STATUS AND COLLECTION OF INSTITUTIONAL DEB T, INCLUDING: 11
(I) PERCENTAGE AND TOTAL AMOUNT OF INSTITUTIO NAL 12
DEBT HELD IN GOOD ST ANDING AND PAST DUE ; 13
(II) THE NUMBER AND TOTAL AMOUNT OF INSTITUTIO NAL 14
DEBTS UNDER TUITION PAYMENT PLANS , INCLUDING THE PERCEN TAGE THAT ARE 15
IN GOOD STANDING OR PAST DUE; 16
(III) THE NUMBER AND TOTAL AMOUNT OF INSTITUTIO NAL 17
DEBTS UNDER STUDENT LOANS OWED TO THE IN STITUTION, INCLUDING THE 18
PERCENTAGE THAT ARE IN GOOD STANDING AND PAST DUE; 19
(IV) NUMBER OF ENROLLED ST UDENTS AND FORMER ST UDENTS 20
WHO MADE VOLUNTARY P AYMENTS TO THE INSTITUTION D URING THAT FISCAL YE AR 21
AND THE TOTAL AMOUNT PAID; 22
(V) PERCENTAGE AND TOTAL AMOUNT OF INSTITUTIO NAL 23
DEBT CHARGED OFF DUR ING THAT FISCAL YEAR ; 24
(VI) NUMBER OF STUDENT ACC OUNTS REPORTED TO A CREDIT 25
REPORTING AGENCY DUR ING THAT FISCAL YEAR; 26
(VII) PERCENTAGE AND NUMBER OF STUDENT ACCOUNTS 27
REFERRED TO A THIRD PARTY FOR DEBT COLLE CTION OR SALE DURING THAT 28
FISCAL YEAR, INCLUDING DEBT COLLE CTION AGENCIES , DEBT COLLECTORS , AND 29
DEBT BUYERS, AND TOTAL AMOUNT COL LECTED; 30 HOUSE BILL 920 5
(VIII) PERCENTAGE AND NUMBER OF ST UDENT ACCOUNTS 1
SUBJECT TO LITIGATIO N BY THE INSTITUTION DURING THAT FISCAL Y EAR AND THE 2
TOTAL AMOUNT COLLECT ED; AND 3
(IX) FOR PUBLIC INSTITUTIO NS ONLY, PERCENTAGE AND 4
NUMBER OF STUDENT AC COUNTS REFERRED TO N ONJUDICIAL COLLECTIO N DURING 5
THAT FISCAL YEAR AND THE TOTAL AMOUNT COL LECTED; 6
(4) ADMINISTRATIVE HOLD A CTIONS BY THE INSTIT UTION, 7
INCLUDING: 8
(I) NUMBER OF ENROLLED ST UDENTS OR FORMER STU DENTS 9
WITH AN ADMINISTRATI VE HOLD DUE TO INSTI TUTIONAL DEBT ; AND 10
(II) NUMBER OF ENROL LED STUDENTS OR FORM ER STUDENTS 11
WHO HAVE COMPLETED A LL REQUIRED COURSES BUT ON WHOM A DEGREE HAS NOT 12
BEEN CONFERRED DUE T O INSTITUTIONAL DEBT ; 13
(5) A LIST OF PERSONS USED BY THE INSTITUTION F OR 14
INSTITUTIONAL DEBT –RELATED ACTIVITIES , INCLUDING ORIGINATIN G LOANS, 15
ESTABLISHING AND FAC ILITATING INSTALLMEN T PLANS OR DEBT PAYM ENT, AND 16
INITIATING LAWSUITS ; 17
(6) A COPY OF ANY MODEL IN STRUMENT USED BY THE INSTITUTION 18
TO ESTABLISH AN INST ITUTIONAL DEBT , INCLUDING A PROMISSO RY NOTE, AN 19
ENROLLMENT AGREEMENT , A TUITION PAYMENT PLAN , OR A CONTRACT ; 20
(7) A SUMMARY OF AND CITAT ION TO THE INSTITUTI ON’S POLICIES 21
RELATING TO AN ENROL LED STUDENT’S FINANCIAL OBLIGATI ONS, INCLUDING: 22
(I) TUITION PAYMENT PLANS ; 23
(II) STUDENT LOANS OWED TO THE INSTITUTION ; 24
(III) ADMINISTRATIVE HOLDS ; 25
(IV) DEBT COLLECTION ; AND 26
(V) REPORTS TO CREDIT REP ORTING AGENCIES ; AND 27
(8) ANY OTHER INFORMATION THE COMMISSION DETERMINES IS 28
RELEVANT TO EVALUATI NG INSTITUTIONAL DEB TS. 29 6 HOUSE BILL 920
(D) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO REQUIRE AN 1
INSTITUTION OF POSTS ECONDARY EDUCATION T O REPORT PERSONAL ID ENTIFYING 2
INFORMATION OF AN EN ROLLED STUDENT OR A FORMER STUDENT . 3
(E) (1) SUBJECT TO PARAGRAPH S (2) AND (3) OF THIS SUBSECTION , THE 4
COMMISSION MAY ASSESS A CIVIL PENALTY AGAINST AN I NSTITUTION OF 5
POSTSECONDARY EDUCAT ION IF THE INSTITUTI ON FAILS TO SUBMIT A REPORT 6
REQUIRED UNDER SUBSE CTION (B) OF THIS SECTION OR K NOWINGLY INCLUDES 7
INACCURATE INFORMATI ON IN A REPORT AS DETERMINED BY THE COMMISSION. 8
(2) (I) BEFORE ASSESSING A PENALTY , THE COMMISSION SHALL 9
SEND THE INSTITUTION OF POSTSECONDARY EDU CATION A NOTICE OF T HE 10
CHARGES AGAINST THE INSTITUTION AND GIVE THE INSTITUTION AN O PPORTUNITY 11
TO REQUEST A HEARING WITHIN 20 DAYS AFTER THE DATE OF RECEIPT OF THE 12
NOTICE. 13
(II) A NOTICE OF CHARGES UN DER SUBPARAGRAPH (I) OF THIS 14
PARAGRAPH SHALL : 15
1. DESCRIBE THE DEFICIEN CIES IN THE REPORT ; AND 16
2. DIRECT THE INSTITUTIO N TO CORRECT THE 17
DEFICIENCIES WITHIN 30 DAYS AFTER THE DAY T HE INSTITUTION RECEI VED THE 18
NOTICE FRO M THE COMMISSION. 19
(3) IF THE INSTITUTION OF POSTSECONDARY EDUCAT ION REQUESTS 20
A HEARING WITHIN THE 20–DAY PERIOD: 21
(I) THE COMMISSION SHALL PROM PTLY HOLD A HEARING NOT 22
LATER THAN 60 DAYS AFTER RECEIPT O F THE REQUEST FOR A HEARING; AND 23
(II) THE INSTITUTION SHALL HAVE THE OPPORTUNITY TO B E 24
HEARD PUBLICLY BEFOR E THE COMMISSION IN THE INS TITUTION’S OWN DEFENSE , 25
IN PERSON, AND BY COUNSEL . 26
(4) IF THE COMMISSION DETERMINES THAT AN INSTITUTION OF 27
POSTSECONDARY EDUCAT ION FAILS TO SUBMIT A REPORT REQUIRED UNDE R 28
SUBSECTION (B) OF THIS SECTION OR K NOWINGLY INCLUDES IN ACCURATE 29
INFORMATION IN A REPORT, THE COMMISSION MAY IMPOSE A CIVIL PENALTY, NOT 30
EXCEEDING $10,000, FOR EACH VIOLATION . 31
(F) THE COMMISSION SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 32 HOUSE BILL 920 7
SECTION. 1
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 2
1, 2025. 3
Approved:
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Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.