# Education (GED)

## Title 10. Definitions and Maryland Charter for Higher Education

### Subtitle 1. Definitions

#### Section 10-101

(a) In this division the following words have the meanings indicated.

(b) "Charter" means the Maryland Charter for Higher Education.

(c) "Commission" means the Maryland Higher Education Commission.

(d) "For-profit institution of higher education" means an institution of higher education that generally limits enrollment to graduates of secondary schools, awards degrees at the associate, baccalaureate, or graduate level, and is not a public or private nonprofit institution of higher education.

(e) "Governing board" means:

  (1) The Board of Regents of the University System of Maryland;

  (2) The Board of Regents of Morgan State University;

  (3) The Board of Trustees of St. Mary's College of Maryland; and

  (4) The Board of Trustees of Baltimore City Community College.

(f) "Governing body" means:

  (1) A governing board;

  (2) A board of trustees of a community college;

  (3) The governing entity of private nonprofit institutions of higher education;

  (4) The governing entity of a for-profit institution of higher education; or

  (5) The governing entity of a regional higher education center.

(g) "Independent institution of higher education" means a private nonprofit institution of higher education that generally limits enrollment to graduates of secondary schools, serves a public purpose, and awards degrees at the associate, baccalaureate, or graduate level.

(h)

  (1) "Institution of higher education" means an institution of postsecondary education that generally limits enrollment to graduates of secondary schools, and awards degrees at either the associate, baccalaureate, or graduate level.

  (2) "Institution of higher education" includes public, private nonprofit, and for-profit institutions of higher education.

(i)

  (1) "Institution of postsecondary education" means a school or other institution that offers an educational program in the State for individuals who are at least 16 years old and who have graduated from or left elementary or secondary school.

  (2) "Institution of postsecondary education" does not include:

    (i) Any adult education, evening high school, or high school equivalence program conducted by a public school system of the State; or

    (ii) Any apprenticeship or on-the-job training program subject to approval by the Apprenticeship and Training Council.

(j) "Private career school" means a privately owned and privately operated institution of postsecondary education other than an institution of higher education that furnishes or offers to furnish programs, whether or not requiring a payment of tuition or fee, for the purpose of training, retraining, or upgrading individuals for gainful employment as skilled or semiskilled workers or technicians in recognized occupations or in new and emerging occupations.

(k)

  (1) "Private nonprofit institution of higher education" means an institution of higher education that:

    (i) Benefits no person through any part of its net earnings;

    (ii) Is legally authorized to operate as a nonprofit organization by each state in which it is physically located;

    (iii) Is determined by the Internal Revenue Service to be an organization to which contributions are tax-deductible in accordance with 26 U.S.C. 501(c)(3); and

    (iv) Generally limits enrollment to graduates of secondary schools and awards degrees at the associate, baccalaureate, or graduate level.

  (2) "Private nonprofit institution of higher education" includes an independent institution of higher education.

  (3) "Private nonprofit institution of higher education" does not include an institution engaging in a reportable incident unless the Commission has determined that the incident does not constitute private inurement.

(l) "Program" or "educational program" means an organized course of study that leads to the award of a certificate, diploma, or degree.

(m) "Public senior higher education institution" means:

  (1) The constituent institutions of the University System of Maryland and the University of Maryland Center for Environmental Science;

  (2) Morgan State University; and

  (3) St. Mary's College of Maryland.

(n) "Regional higher education center" means a higher education facility in the State that:

  (1) Is operated by a public institution of higher education in the State or a private nonprofit institution of higher education operating under a charter granted by the General Assembly and includes participation by two or more institutions of higher education in the State;

  (2) Consists of an array of program offerings from institutions of higher education approved to operate in the State by the Commission or by an act of the General Assembly that specifically satisfies the criteria set forth in Sec. 10-212(b) of this title;

  (3) Offers multiple degree levels; and

  (4) Is either approved by the Commission to operate in the State or is established by statute.

(o) "Reportable incident" means any of the following as reportable on a private nonprofit institution of higher education's Form 990 of the Internal Revenue Service:

  (1) The engagement in an excess benefit transaction with a disqualified person;

  (2) The providing of a grant or other assistance by the institution to a member of the governing body;

  (3) The reporting of receivables from or payables to a member of the governing body;

  (4) The institution was a party to a business transaction connected to a member of the institution's governing body;

  (5) The institution was a party to a prohibited tax shelter transaction;

  (6) The institution participated in an equity-based compensation arrangement; or

  (7) The institution paid compensation contingent on the revenue of the institution or any related organization.

(p) "Secretary" means the Secretary of Higher Education.

(q) "State Plan for Higher Education" means the plan for postsecondary education and research required to be developed by the Maryland Higher Education Commission under Sec. 11-105(b) of this article.

### Subtitle 2. Maryland Charter for Higher Education

#### Section 10-201

This subtitle is the Maryland Charter for Higher Education which is a statement of policy for higher education in Maryland.

#### Section 10-202

Public higher education in Maryland should be based on the following principles:

(1) The people of Maryland expect quality in all aspects of public higher education: teaching, research, and public service;

(2) Public higher education should be accessible to all those who seek and qualify for admission;

(3) Public higher education should provide a diversity of quality educational opportunities;

(4) Adequate funding by the State is critical if public higher education is to achieve its goal;

(5) The people of Maryland are entitled to efficient and effective management of public higher education;

(6) The people of Maryland are entitled to capable and creative leadership in public higher education; and

(7) Public higher education should be committed to promoting diversity and inclusion at each institution by attracting and graduating a diverse student body committed to service.

#### Section 10-203

(a) It is the goal of the State that public senior higher education institutions be funded at 100 percent of funding guidelines developed by the Maryland Higher Education Commission.

(b) Funding policies shall allocate State resources efficiently while providing incentives for quality and institutional diversity.

(c) Funding proposals for public senior higher education institutions shall include:

  (1) Base funding in accordance with the role and mission of the institution, as approved by the Maryland Higher Education Commission;

  (2) Special initiative funding:

    (i) For academic programs at historically Black colleges and universities; and

    (ii) For the reward of academic innovation and enhancement; and

  (3) Capital funding to support construction, operation, and maintenance of a physical plant that is consistent with each institution's mission.

(d)

  (1) Funding proposals for regional higher education centers may include:

    (i) Ongoing operating support to provide access to affordable postsecondary education in unserved and underserved areas of the State;

    (ii) Incentive funding to promote collaboration among the institutions of higher education and regional higher education centers; and

    (iii) Capital funding to support construction, operation, and maintenance of a physical plant consistent with the approved mission statement of the center.

  (2) Operating funds for each regional higher education center that is administered by the University System of Maryland shall be included in the appropriation of the system office as a separate line item in the Governor's operating budget.

(e) Student financial aid programs should be developed in order to provide reasonable access to the appropriate academic programs for individuals who exhibit financial need, who are educationally disadvantaged, or who exhibit special merit.

#### Section 10-204

Public institutions of higher education shall:

(1) Provide postsecondary education to students;

(2) Transmit culture and extend knowledge through general higher education;

(3) Teach and train students for careers and advanced study;

(4) Protect academic freedom;

(5) Promote civic responsibility;

(6) Enhance economic development of the State through research, training, and extension services to business and industry;

(7) Provide public services for citizens of the State; and

(8) Assure that women and minorities are equitably represented among faculty, staff, and administration, so that the higher education community reflects the diversity of the State's population.

#### Section 10-205

(a) It is the goal of the State that at least 55% of Maryland's adults age 25 to 64 will hold at least an associate's degree by the year 2025.

(b) It is the goal of the State that all degree-seeking students enrolled in a public community college earn an associate's degree before leaving the community college or transferring to a public senior higher education institution.

(c) Institutions of higher education should utilize educational resources to provide the greatest possible benefit to the citizens of the State and to foster economic development.

(d) In each region of the State, institutions of higher education should cooperate to ensure an effective and efficient education system.

(e) In developing missions and programs, the Maryland Higher Education Commission and each governing board and its constituent institutions shall consider the role, mission, and function of other public senior higher education institutions, particularly those institutions offering unique programs and services in the same geographical region.

#### Section 10-206

The Governor and General Assembly shall:

(1) Establish broad policy regarding higher education;

(2) Delegate implementation of the policy to appropriate boards, commissions, institutions, and officials;

(3) Provide for the adequate financing of public higher education; and

(4) Demand accountability and effective management from public institutions of higher education.

#### Section 10-207

The Maryland Higher Education Commission shall:

(1) Advise the Governor and General Assembly on statewide higher education policy;

(2) Conduct statewide planning for higher education;

(3) Coordinate and arbitrate among different segments of higher education in the State;

(4) Review, negotiate as necessary, and grant final approval of mission statements for each public institution of higher education and each regional higher education center that requests or receives State funding;

(5) Assess the adequacy of operating and capital funding for public higher education and establish operating funding guidelines based on comparison with peer institutions and on other relevant criteria;

(6) Establish and maintain a higher education information system for planning, coordination, and evaluation purposes;

(7) Coordinate the State's program of performance accountability reporting for public institutions of higher education; and

(8) Administer statewide programs of student financial assistance for higher education.

#### Section 10-208

The governing boards of public senior higher education institutions shall, with respect to institutions under their jurisdiction:

(1) Set education policy and adopt mission statements;

(2) Establish goals that are consistent with the roles and missions approved for the institutions;

(3) Select presidents;

(4) Establish guidelines for admission standards that are consistent with the roles and missions approved for the institutions;

(5) Set guidelines for tuition and mandatory fees;

(6) Evaluate and approve short-range and long-range plans; and

(7) Evaluate and approve institutional budget submissions.

#### Section 10-209

(a) The University System of Maryland shall provide through its various campuses and programs a continuum of educational services, including undergraduate education, graduate education, professional programs, and research.

(b) The goal of the University System of Maryland is to achieve and sustain national eminence with each component fulfilling a distinct and complementary mission.

(c) The University System of Maryland shall:

  (1) Promote excellence at each campus, in accordance with the skills of the faculty, the needs of the region, and the academic programs offered;

  (2) Develop a mission for each campus which builds upon the unique strength of the campus and embodies a diversity of programs;

  (3) Recruit and retain nationally and internationally prominent and diverse faculty members;

  (4) Actively pursue research funding and private support;

  (5) Promote economic development by creating a well educated work force through undergraduate, graduate, and professional education, targeted research, education extension services, and technical assistance;

  (6) Increase access for economically disadvantaged and minority students;

  (7) Stimulate outreach to the community and the State through close relationships with public elementary and secondary schools, business and industry, and governmental agencies;

  (8) Encourage collaboration among institutions for the benefit of the students; and

  (9) Address and respond to continuing higher education needs in order to maintain an educated work force in the State.

(d)

  (1) The Board of Regents of the University System of Maryland shall appoint a Chancellor who shall be the Chief Executive Officer of the University System of Maryland and the Chief of Staff for the Board. The Chancellor and the staff of the Board shall serve as coordinators and system planners for the University System of Maryland.

  (2) The Chancellor shall:

    (i) Advise the Board of Regents on systemwide policy;

    (ii) Conduct systemwide planning;

    (iii) Coordinate and arbitrate among the institutions and centers of the University System of Maryland;

    (iv) Assist the institutions in achieving performance goals in accordance with the Accountability Reporting Program; and

    (v) Provide technical assistance to institutions and centers such as legal and financial services.

(e) Each campus of the University System of Maryland shall have a president who is the chief executive officer of the institution.

(f) The University System of Maryland shall:

  (1) Maintain and enhance the University of Maryland, College Park Campus as the State's flagship campus with programs and faculty nationally and internationally recognized for excellence in research and the advancement of knowledge;

  (2) Admit as freshmen to the University of Maryland, College Park Campus highly qualified students who have academic profiles that suggest exceptional ability;

  (3) Provide access to the upper division undergraduate level of the University of Maryland, College Park Campus for students who have excelled in completing lower division study; and

  (4) Provide the University of Maryland, College Park Campus with the level of operating funding and facilities necessary to place it among the upper echelon of its peer institutions.

(g) The University System of Maryland shall maintain and enhance a coordinated Higher Education Center for Research and Graduate and Professional Study, in the Baltimore area based on the joint graduate and research programs of the University of Maryland, Baltimore Campus and the University of Maryland Baltimore County, which is one of the State's research institutions.

(h) The University System of Maryland may recognize University College as a campus for continuing higher education.

#### Section 10-210

(a) The community colleges of the State shall provide a diverse range of education services, with particular emphasis on community centered programs and programs that afford open access to persons with a variety of educational backgrounds.

(b) The community colleges of the State shall:

  (1) Provide a core curriculum of general education, including courses in the arts and sciences, that should be available to all students;

  (2) Provide lower level undergraduate courses, in accordance with credit transfer guidelines set by the Maryland Higher Education Commission, for students who aspire to continue their education at a senior institution;

  (3) Provide technical and career education programs;

  (4) Provide training in skills and fields of study of importance to the region's business community;

  (5) Provide a wide variety of continuing education programs to benefit citizens of the community;

  (6) Provide developmental and remedial education for citizens with needs in these areas; and

  (7) Provide public services to the community's citizens.

#### Section 10-211

(a) The private nonprofit institutions of higher education in the State are an important educational resource and are vital to the provision of postsecondary education in the State.

(b) The State shall continue to provide financial aid as provided by law to private nonprofit institutions of higher education to foster this important educational resource.

(c)

  (1) In this subsection, "cultural diversity" means the inclusion of those racial and ethnic groups and individuals that are or have been underrepresented in higher education.

  (2) On or before July 1 of each year, each private nonprofit institution of higher education eligible for State aid under Sec. 17-103 of this article shall submit a report on the institution's programs to promote and enhance cultural diversity on its campus to the Maryland Independent College and University Association.

  (3)

    (i) On or before September 1 of each year, the Maryland Independent College and University Association shall submit a report on the status of the programs reported to the Association under paragraph (2) of this subsection to the Commission.

    (ii) The report submitted to the Commission under subparagraph (i) of this paragraph shall include an analysis of the best practices used by private nonprofit institutions of higher education to promote and enhance cultural diversity on their campuses.

#### Section 10-212

(a) Regional higher education centers in the State are important educational resources and are vital to the delivery of postsecondary education in the State.

(b) A regional higher education center shall:

  (1) Provide access to affordable higher education programs to citizens in unserved or underserved areas of the State;

  (2) Respond to the needs of businesses and industries in the areas in which they serve; and

  (3) Encourage participation by institutions of higher education for the benefit of students and serve the needs of, and provide programs to, elementary and secondary schools, business and industry, and governmental agencies.

(c) The governing body of a regional higher education center may submit a request for proposals for the offering of a baccalaureate degree program at the center in accordance with Sec. 16-108 of this article.

#### Section 10-213

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Business entity" means a person that conducts or operates a trade or business in the State.

  (3) "Partnerships Program" means the Higher Education/Business Partnerships Program established under this section.

(b)

  (1) In order to improve the accessibility of businesses to resources of the public senior higher education institutions of the State, the University System of Maryland, Morgan State University, and St. Mary's College of Maryland, under the direction of the Governor and in consultation with the Department of Commerce, shall develop and implement a Higher Education/Business Partnerships Program.

  (2) The goals of the Partnerships Program shall be to provide opportunities for businesses to better utilize resources that the public senior higher education institutions of the State have to offer and to foster continuing links between the institutions and the business community throughout the State.

(c) Under the Partnerships Program, the public senior higher education institutions of the State shall enter into agreements with business entities for cooperative arrangements for any one or more of the following activities:

  (1) Employment of a graduate student in an eligible work-study job by a business entity in a business sector that is related to the student's field of study and is consistent with the strategic economic development goals established for the State with specific eligibility criteria determined by the institution and the Department of Commerce;

  (2) Sponsored research administered by the institution; and

  (3) Sponsorship by the business entity of business-specific training developed or conducted by the faculty of the institution.

#### Section 10-214

The General Assembly finds that:

(1) The State of Maryland wishes to provide all of its citizens with equal access to higher education at excellent and affordable public colleges and universities;

(2) The General Assembly has carefully reviewed the Memorandum Opinions and Orders of the United States District Court for the District of Maryland, issued October 7, 2013, and November 8, 2017, in the action, The Coalition for Equity and Excellence in Maryland Higher Education, et al. v. Maryland Higher Education Commission, et al., 06-CV-02773-CCB;

(3) The District Court found that the State failed to eliminate a traceable de jure era policy of unnecessary duplication of programs at historically black colleges and universities in the State that has exacerbated the racial identifiability of Maryland's historically black colleges and universities;

(4) Maryland's historically black colleges and universities, which are Bowie State University, Coppin State University, Morgan State University, and University of Maryland Eastern Shore, should receive additional support to remedy the findings of the District Court;

(5) The additional support shall be provided in the form of additional funding in the amount of $577,000,000, which shall be provided in amounts as calculated under Sec. 15-126 of this article in each of fiscal years 2023 through 2032, and shall be allocated among the institutions; and

(6) The provisions of Sec.Sec. 15-126 and 15-127 of this article shall ensure that Maryland's historically black colleges and universities shall receive this support.

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Md. Code Ann., Educ. (as displayed at mgaleg.maryland.gov, October 16, 2026)