The Commission shall establish minimum requirements for issuing certificates, diplomas, and degrees by institutions of postsecondary education.

Except as provided in § 11–202.1 of this subtitle, an institution of postsecondary education may not commence or continue to operate, do business, or function without a certificate of approval from the Commission. Except as provided in §§ 11–202.1 and 11–202.2 of this subtitle, an institution of higher education that enrolls Maryland students in a fully online distance education program in the State may not commence or continue enrollment of Maryland students without registering with the Commission as provided under § 11–202.2 of this subtitle. An institution required to register under paragraph (2) of this subsection that is not accredited by an accrediting body recognized and approved by the United States Department of Education may not receive a registration from the Commission. The Commission shall issue a certificate of approval to an institution of postsecondary education if it finds that: The facilities, conditions of entrance and scholarship, and educational qualifications and standards are adequate and appropriate for: The purposes of the institution; and The programs, training, and courses to be offered by the institution; and The proposed programs to be offered by the institution meet the educational needs of the State. If the Commission believes that an institution of postsecondary education that applies for a certificate of approval does not meet the conditions or standards necessary for the issuance of the certificate, the Commission shall give the institution written notice of the specific deficiencies. Within 20 days of receipt of a notice of deficiencies, the institution may request a hearing before the Commission. Within 60 days of receipt of the request the Commission shall hold a hearing to determine if the certificate of approval should be issued. If, within 6 months from the date on which the application for certification was submitted to the Commission, the institution has received neither a certificate of approval under subsection (b) of this section nor written notice of deficiencies under this subsection, the institution may request within 20 days a hearing before the Commission to determine if the certificate of approval should be issued. If the Commission believes that an institution of higher education that is required to register under subsection (a)(2) of this section or § 11–202.2 of this subtitle does not meet the conditions or standards necessary for the issuance of the registration, the Commission shall give the institution written notice of the specific deficiencies within 6 months after receipt of an application for registration. Within 20 days after receipt of a notice of deficiencies, the institution may request a hearing before the Commission. Within 60 days after receipt of the request for a hearing under subparagraph (i) of this paragraph, the Commission shall hold a hearing to determine if the registration should be issued. If, after 6 months from the date on which the application for registration was submitted to the Commission, the institution has received neither a registration nor written notice of deficiencies under this subsection, the institution may request a hearing within 20 days before the Commission. Within 60 days after receipt of the request for a hearing under subparagraph (i) of this paragraph, the Commission shall hold a hearing to determine if the registration should be issued. After a hearing held under this subsection, the Commission shall render a decision within 30 days. Any institution of postsecondary education that is denied a certificate of approval by the Commission after a hearing granted under subsection (c) of this section or any institution of higher education that is denied a registration after a hearing granted under subsection (c–1) of this section has the right to judicial review provided by Title 10, Subtitle 2 of the State Government Article. The decision of the Commission shall be presumed correct, and the institution has the burden of proving otherwise. The Commission shall be a party to the proceeding.

A private nonprofit institution of higher education operating under a charter granted by the General Assembly may operate without a certificate of approval from the Commission. Subject to the requirements imposed by this section, and except as prohibited in paragraph (2) of this subsection, a religious educational institution may operate without a certificate of approval from the Commission and may enroll Maryland students in a fully online distance education program in the State without a registration from the Commission if the institution: Is established for religious educational purposes; Provides educational programs only for religious vocations or purposes; Offers only sectarian instruction designed for and aimed at individuals who hold or seek to learn the particular religious faiths or beliefs taught by the institution; and States on the certificate or diploma the religious nature of the award. A religious educational institution that is accredited by an accrediting body recognized by the United States Department of Education may not operate without a certificate of approval from the Commission. Each religious educational institution authorized to operate without a certificate of approval or without a registration under subsection (b) of this section: Shall submit to the Commission, every 2 years, a renewal application that includes a financial statement reviewed by an independent accountant retained by the institution and a copy of the current catalog of courses; and May not commence or continue to operate, do business, or function unless the Commission determines on the basis of the financial statement submitted by the institution that the institution possesses adequate financial resources to support the institution’s educational program. The Commission shall adopt regulations establishing procedures and standards for the submission and evaluation of the application for exemption, renewal application, and reports and financial statements submitted by religious educational institutions. A religious educational institution seeking to operate without a certificate of approval under subsection (b) of this section that is denied the right to operate has the right to judicial review as provided by the Administrative Procedure Act. Nothing in this section precludes a religious educational institution authorized to operate without a certificate of approval under subsection (b) of this section from seeking a certificate of approval from the Commission. A religious educational institution authorized to operate without a certificate of approval under subsection (b) of this section shall disclose on all transcripts, catalogs, advertisements, and publications of the institution that the institution does not have a certificate of approval from the Commission. With regard to a religious educational institution authorized to operate without a certificate of approval under subsection (b) of this section, a person may not: Make a statement, whether verbal or written, that the institution is approved by, or has a certificate of approval from, the Commission, including a statement on any certificate, diploma, academic transcript, or other document issued by the institution or in any advertisement or publication, or on a website; or Enroll a student in the institution unless, before enrollment, the person gives written notice to and obtains a written acknowledgment from the student that: The institution’s instructional program is only designed for and aimed at persons who hold or seek to learn the particular religious faith or beliefs of the church or religious institution, and provides only educational programs for religious vocations or purposes; An institution of higher education is not required to accept for transfer credits earned at the institution; An institution of higher education is not required to recognize an award earned at the institution; A potential employer may determine that an award earned at the institution does not meet minimum educational requirements for employment; With respect to a religious counselor program, State licensing boards are not required to recognize the program as a prerequisite of licensure; and If applicable, the institution: Is not accredited; or Is accredited by an accrediting body that is not recognized by the United States Department of Education. The written acknowledgment obtained from a student under subsection (h) of this section shall be: In a form approved by the Commission; Signed by both the student and a representative of the institution; and Permanently retained in the student’s file by the institution. A person who violates subsection (g), (h), or (i) of this section is liable for a penalty of up to $5,000 for each violation.

In this subtitle the following words have the meanings indicated. “Fully online distance education program in the State” means a program, originating outside the State, offered by an out–of–state institution in which: A student domiciled in Maryland enrolls; 51% or more of the program is offered through electronic distribution; and The Commission determines that the portion of the program offered at a location in the State, if any, does not require a certificate of approval under § 11–202 of this subtitle for the institution to operate in the State. “Out–of–state institution” means an institution of higher education whose primary campus exists outside Maryland and whose authority to grant degrees is conferred by another state. An institution of higher education that enrolls Maryland students in a fully online distance education program in the State shall file an application to register with the Commission before or within 3 months of enrolling the first Maryland student. This section does not apply to an institution of higher education that enrolls Maryland students in a fully online distance education program in the State that: Is subject to program review by the Commission under § 11–206 or § 11–206.1 of this subtitle; Participates in the Southern Regional Education Board’s Electronic Campus; or Participates in the State Authorization Reciprocity Agreement (SARA). After filing an application under paragraph (1) of this subsection, an institution that has enrolled a Maryland student before obtaining a registration under this section may continue to operate without a registration while the Commission considers the institution’s application, conducts a hearing concerning the institution’s application, or participates in judicial review regarding an institution’s application. An institution that continues to operate without a registration under subparagraph (i) of this paragraph shall furnish a performance bond or other form of financial guarantee to the State in an amount set by regulation that is in addition to and separate from a performance bond or other form of financial guarantee required under § 11–203 of this subtitle. Each institution of higher education required to register under this section shall: Be accredited by an accrediting body recognized and approved by the United States Department of Education; Submit to the Commission: Every 2 years, a financial statement reviewed by an independent accountant retained by the institution; An affidavit from the president or chief executive officer of the institution affirming: That the institution has not filed for bankruptcy protection under Title 11 of the United States Code during its existence; and The willingness of the president or the chief executive officer to abide by the provisions of this section; Proof of good business standing in the state in which the central administration of the institution is incorporated; and Proof of good academic standing submitted by: The regulatory higher education entity in the state in which the central administration of the institution is located; or If the state in which the institution is located does not have a regulatory higher education entity, the accrediting body that accredited the institution; Promptly notify the Commission of a change in ownership or a change in majority control; Comply with the Principles of Good Practice for distance education established by the Commission through regulation; Make public and post on the institution’s website: Whether the institution is registered in Maryland; and The process by which to make complaints against the institution; Comply with the refund policy and procedures established by the Commission; and Be subject to complaint investigation by the Office of the Attorney General or the Commission or both. The refund policy and procedures established by the Commission shall allow for: At least 2 weeks of required orientation or preenrollment instruction in a fully online distance education program in the State at no charge for a student who has completed less than 24 credits of college–level learning from an accredited institution; and A prorated refund methodology that provides a refund to any student not covered by item (i) of this item who has completed 60% or less of a course, term, or program within the applicable billing period; or A prorated refund methodology that provides a refund to any student who has completed 60% or less of a course, term, or program within the applicable billing period. Subject to paragraph (2) of this subsection, the Commission shall require the payment of a fee set by regulation, as a condition of registration. Subject to subparagraph (ii) of this paragraph, the fees charged shall be: A fixed amount for all institutions regardless of type, location, or student enrollment; and Set to cover the approximate cost of implementing a system of registration. Notwithstanding subparagraph (i) of this paragraph, the Commission may charge an institution that enrolls not more than 20 Maryland students a fee that is less than the amount of the fee charged to other institutions. The Commission shall make public and post on its website: A list of registered institutions of higher education that offer fully online distance education programs in the State; and If the Commission denies or revokes the registration of an institution, the name of the denied or revoked institution. On or before December 1 each year, the Commission shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly: The number of institutions of higher education that apply for registration under this section; The type and size of the institutions that apply; The number of institutions approved for registration; The number of institutions denied registration; The number of Maryland students enrolled in institutions required to register under this section; The results of the requirements of § 11–202.3 of this subtitle; The number of institutions found to be in violation of the requirement to register under this section; Any fines imposed, and in what amounts, on institutions that violate this section; and Any fine revenues collected from institutions for violation of this section.

At least twice a year, the Commission shall peruse federal databases and other information sources to determine whether there are Maryland students who are enrolled in a fully online distance education program offered by an institution of higher education that is required to register with the Commission under § 11–202.2 of this subtitle, but that has failed to register with the Commission.

Subject to paragraph (2) of this subsection, the Commission may require any institution of postsecondary education that is required to obtain a certificate of approval or an institution of higher education that is required to register under § 11–202.2 of this subtitle to furnish a performance bond or other form of financial guarantee for either the certificate of approval or the registration to the State conditioned that the institution will: Perform faithfully all agreements or contracts it makes with its students; and Comply with this article. In addition to and separate from the requirements of subsection (d)(4) of this section, the Commission shall require each private career school and for–profit institution of higher education that operates in the State, and each for–profit institution of higher education that is required to register with the Commission under § 11–202.2 of this subtitle, to furnish a performance bond or irrevocable letter of credit in an amount equal to the school’s or institution’s non–Title IV adjusted gross tuition and fees for the prior July 1 through June 30. Except as provided under subsection (a)(2) of this section and subject to paragraph (2) of this subsection, any bond or guarantee required under this section shall be in the form and amount the Secretary requires. A performance bond or irrevocable letter of credit required under this section shall be between the surety and the Commission. The total liability of a surety on a bond or guarantee under this section may not exceed the amount of the bond or guarantee. If the total amount of claims filed against a bond or guarantee exceeds the amount of the bond or guarantee, the surety shall pay the amount of the bond or guarantee to the Secretary for distribution to the claimants. By regulation, the Commission: May create and provide for the operation of two separate guaranty funds for: For–profit institutions of higher education; and Private career schools; and May create and provide for the operation of a guaranty fund for institutions of higher education that are required to register under § 11–202.2 of this subtitle. The for–profit institutions of higher education fund and the private career school fund shall be used: In the event of a school closure by a for–profit institution of higher education or a private career school, to provide a full refund of tuition and fees incurred by a student that have not been reimbursed or discharged; Subject to paragraph (3) of this subsection, to provide a refund, as determined by the Secretary, of tuition and fees incurred by a student that have not been reimbursed or discharged, if a for–profit institution of higher education or a private career school fails to: Perform faithfully any enrollment agreement or contract with the student; or Comply with any provisions of this article; or For any other reason directly related to the original purpose of the fund deemed appropriate by the Secretary. The fund for institutions of higher education that are required to register under § 11–202.2 of this subtitle shall be used to reimburse any student at any of these institutions who is entitled to a refund of tuition and fees because the institution has failed to perform faithfully any agreement or contract with the student or failed to comply with any provision of this article. After 3 years of claims history during which no claim against the fund has been sustained on behalf of a Maryland student participating in a fully online distance education program offered in the State by an institution registered under § 11–202.2 of this subtitle, the Commission shall exempt that institution from the requirement to contribute to the fund. Notwithstanding subsubsubparagraph A of this subsubparagraph, an institution shall be required to contribute to the fund following a claim against the fund being sustained on behalf of a Maryland student participating in a fully online distance education program offered in the State by the institution. Notwithstanding subsubparagraph 2 of this subparagraph, a student who takes courses from an institution exempted from contribution to the fund under subsubparagraph 2 of this subparagraph may make a claim against the fund in accordance with subsubparagraph 1 of this subparagraph. The funds shall be continuing, nonlapsing funds, not subject to § 7–302 of the State Finance and Procurement Article. Any unspent portions of the funds may not be transferred or revert to the General Fund of the State, but shall remain in the funds to be used for the purposes specified in this subsection. No other State money may be used to support the funds. The Commission shall be subrogated to and may enforce the claim of any student to the extent of any actual or authorized reimbursement from the funds. Subject to subparagraph (ii) of this paragraph, a student shall follow the complaint process of the institution before making a claim under paragraph (2)(i)2 of this subsection to a guaranty fund established under this section. If an institution does not respond within 30 days after the receipt of a complaint filed under subparagraph (i) of this paragraph, the student may make a claim to a guaranty fund established under this section. Each for–profit institution of higher education or private career school that is required to obtain a certificate of approval and, subject to paragraph (2)(iii)2 of this subsection, each institution of higher education required to register under § 11–202.2 of this subtitle shall pay an annual fee into the appropriate fund. The Commission shall determine the amount of the fee based on the probable amount of money needed for the funds for each fiscal year. If the money in the guaranty funds is insufficient to satisfy duly authorized claims, the participating institutions may be reassessed and shall pay the additional amounts required. The Commission may not issue a certificate of approval or registration to, and shall revoke any certificate of approval or registration previously issued to, an institution that fails to pay any annual fee or reassessment. The Commission shall deposit into the appropriate fund any penalty assessed against a for–profit institution of higher education, institution of higher education required to register under § 11–202.2 of this subtitle, or private career school, respectively, under the terms of § 11–204 of this subtitle. The funds shall be maintained by the State Comptroller who may deposit the assets of the funds in any manner that is consistent with the purposes of the funds. All interest or other return on fund investments shall be credited to the funds. The Commission, through the Attorney General, may enforce any claim to which the Commission has been subrogated under this subsection. An institution that closes one or more programs in a manner that is a disorderly closure as defined in § 11–211 of this subtitle is in violation of the enrollment agreement or other contract with a student enrolled at the time of the closure. A Maryland student enrolled in an institution within 120 days before the date of the disorderly closure shall be entitled to reimbursement from the performance bond or irrevocable letter of credit of all non–Title IV tuition and fees paid to the institution. Reimbursement made under subparagraph (i) of this paragraph shall be issued to all Maryland students, including those who transfer to another institution. The Commission shall adopt regulations to carry out the provisions of this subsection. On or before December 1 each year, the Commission shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly, regarding: The number of claims made against each guaranty fund established under this section; The type, size, and program of the institutions against which the claims are made; The reason for the claim, including whether the private career school or for–profit institution of higher education closed and, if so, whether some students were able to finish their program despite the closure and, if so, how many; The number of claims that are approved and the associated payouts from the funds; and The number of claims that are denied.

If the Commission believes that an institution of postsecondary education does not meet the conditions or standards on which its certificate of approval, registration, or any other approval issued by the Commission or Secretary, was based, the Commission shall give the institution written notice specifying the deficiencies believed to exist. The notice shall specify the alleged deficiencies, and direct the institution to correct them within a period of not less than 30 days. If the institution requests a hearing, the Commission shall hold a hearing on the matter within 60 days of receipt of the request, subject to the requirement that any request for a hearing must be received by the Commission within 20 days of the institution’s receipt of the notice of deficiencies. Subject to subsection (f) of this section, action on the notice of deficiencies shall be stayed until a determination is made after the hearing. Notwithstanding § 11–206(b)(3) of this subtitle, at the discretion of the Secretary, action on any approval request by an institution issued a notice of deficiencies may be stayed until a determination is made after the hearing. If a hearing is not requested within the specified time period, or if the notice of deficiencies is upheld in whole or in part after a hearing, the Commission may reprimand the institution or suspend or revoke the institution’s certificate of approval or any other approval issued by the Commission or Secretary. Instead of or in addition to reprimanding a for–profit institution of higher education, institution of higher education required to register under § 11–202.2 of this subtitle, or private career school, or suspending or revoking any approval issued to a for–profit institution of higher education or private career school or registration issued to an institution of higher education under § 11–202.2 of this subtitle, the Commission may impose a penalty of up to $5,000 for each violation as specified in regulations adopted by the Commission. In accordance with the provisions of this section, the Commission shall deposit any penalty assessed against a for–profit institution of higher education, institution of higher education required to register under § 11–202.2 of this subtitle, or private career school into the respective guaranty fund if such funds exist. Otherwise, all penalties shall be deposited into the General Fund of the State. In addition to any other sanction imposed under this section, an institution of higher education that is required to register under § 11–202.2 of this subtitle that willfully and knowingly violates the provisions of this subtitle shall be: Subject to revocation of registration; and Prohibited from enrolling Maryland students in fully online distance education programs in the State. Maryland students who attend an institution prohibited from enrolling Maryland students under paragraph (1)(ii) of this subsection shall be allowed to complete a fully online distance education program in the State that is in progress. If an institution is required to register under § 11–202.2 of this subtitle and the institution does not file an application to register with the Commission within 3 months of enrolling its first Maryland student or the institution enrolls additional Maryland students in violation of this section, the institution shall be subject to a fine not exceeding $20,000. In imposing any sanctions under this section, the Commission shall consider: The seriousness of the deficiency; The harm caused by the deficiency; The good faith of the institution and any corrective actions taken; Any history of previous deficiencies; and Other pertinent circumstances. An institution that is aggrieved by an order of the Commission has the right to judicial review provided by Title 10, Subtitle 2 of the State Government Article. The decision of the Commission shall be presumed correct and the institution has the burden of proving otherwise. The Commission shall be a party to the proceeding. The Secretary may at any time following written notice of the deficiencies and prior to the Commission’s final decision seek an injunction or other judicial remedy in accordance with § 11–107 of this title, if the Secretary determines that the public interest requires enforcement of the provisions of this article or any applicable regulations. If a court grants relief prior to a hearing that was requested on a timely basis, the Commission shall schedule a hearing in regard to the notice of deficiencies within 2 weeks of the issuance of the court’s order, unless the institution requests a delay.

The Commission may summarily order the revocation or suspension of a certificate of approval of a private career school if: The school’s owner or director, or any person in whose name the approval is issued, is convicted of a crime of moral turpitude or a crime relating to the operation of the school if: The conviction is final; and The period for appeal has expired; An agency that exercises concurrent authority over the private career school has revoked any approval to operate required by law; or Without prior approval of the Commission, the certificate of approval of a school is sold, pledged, or transferred, or there is a change of ownership of a school. The Commission may summarily order a revocation or suspension of a certificate of approval of a private career school under subsection (a) of this section only if it gives the school: Prior oral or written notice of the proposed revocation or suspension and a brief, informal opportunity for response; Prior or prompt subsequent written notice of the revocation or suspension and the findings on which the revocation or suspension is based; and After the revocation or suspension is effective, an opportunity to be heard promptly before the Commission. In any hearing held on the grounds for revocation under subsection (a) of this section, the Commission may limit the issues to be determined to whether: The alleged conviction in fact occurred; The alleged revocation under subsection (a)(2) of this section in fact occurred; or The alleged sale, pledge, or transfer, or change of ownership of the private career school in fact occurred. Notwithstanding paragraph (1) of this subsection, in any hearing held on the grounds for revocation under subsection (a) of this section, a private career school may present matters in mitigation of the offense alleged by the Commission.

This section does not apply to: New programs proposed to be implemented by public and private nonprofit institutions of higher education using existing program resources in accordance with § 11–206.1 of this subtitle; Programs offered by institutions of higher education that operate in the State without a certificate of approval in accordance with § 11–202.1(b) of this subtitle; and The Cyber Warrior Diversity Program established under Subtitle 14 of this title. Prior to the proposed date of implementation, the governing body of an institution of postsecondary education shall submit to the Commission each proposal for: A new program; or A substantial modification of an existing program. The Commission shall review each such proposal and: With respect to each public institution of postsecondary education, either approve or disapprove the proposal; Except as provided in § 16–108(c) of this article, with respect to each private nonprofit or for–profit institution of higher education, either recommend that the proposal be implemented or that the proposal not be implemented; and With respect to a private career school, either approve or disapprove the proposal. If the Commission fails to act within 60 days of the date of submission of the completed proposal, the proposal shall be deemed approved. Except as provided in paragraph (3) of this subsection, a public institution of postsecondary education and private career school may not implement a proposal without the prior approval of the Commission. Except as provided in paragraph (3) of this subsection, and subject to subparagraph (ii) of this paragraph, a program that has not received a positive recommendation by the Commission may be implemented by: Subject to the provisions of § 17–105 of this article, a private nonprofit institution of higher education; or A for–profit institution of higher education. If a private nonprofit or for–profit institution of higher education implements a proposal despite the recommendation from the Commission that a program not be implemented, the institution shall notify both prospective students of the program and enrolled students in the program that the program has not been recommended for implementation by the Commission. If the Commission disapproves a proposal, the Commission shall provide to the governing body that submits the proposal a written explanation of the reasons for the disapproval. After revising a proposal to address the Commission’s reasons for disapproval, the governing body may submit the revised proposal to the Commission for approval. Prior to discontinuation, each institution of postsecondary education that proposes to discontinue an existing program shall provide written notification to the Commission specifying: The name of the program; and The expected date of discontinuation. By rule or regulation, the Commission may require the payment by a private career school of a refund to any student or enrollee who, because of the discontinuation of an ongoing program, is unable to complete such program. The Commission shall review and make recommendations on programs in private nonprofit and for–profit institutions of higher education. In this subsection, “governing board” includes the board of trustees of a community college. The Commission shall adopt regulations establishing standards for determining whether two or more programs are unreasonably or unnecessarily duplicative. The regulations shall: Clearly identify all specific criteria and factors used by the Commission to determine whether two or more programs are unreasonably or unnecessarily duplicative; Prioritize meeting State and regional workforce needs and preserving existing programs that are able to meet these workforce needs; and Prioritize collaboration between institutions of higher education. The Commission may review existing programs at public institutions of postsecondary education if the Commission has reason to believe that academic programs are unreasonably or unnecessarily duplicative or inconsistent with an institution’s adopted mission. The Commission may make a determination that an unreasonable or unnecessary duplication of programs exists on its own initiative or after receipt of a request for determination from any directly affected public institution of postsecondary education. If the Commission makes a determination under paragraph (4) of this subsection the Commission may: Make recommendations to a governing board on the continuation or modification of the programs; Require any affected governing board to submit a plan to resolve the duplication; and Negotiate, as necessary, with any affected governing board until the unreasonable or unnecessary duplication is eliminated. Notwithstanding the provisions of subparagraph (i) of this paragraph, if the Commission determines that two or more existing programs offered by institutions under the governance of different governing boards are unreasonably or unnecessarily duplicative, the governing boards of the institutions of postsecondary education at which the programs are offered shall have 180 days from the date of the Commission’s determination to formulate and present to the Commission a joint plan to eliminate the duplication. If in the Commission’s judgment the plan satisfactorily eliminates the duplication, the governing board of the affected institutions shall be so notified and shall take appropriate steps to implement the plan. If in the Commission’s judgment the plan does not satisfactorily eliminate the duplication, or if no plan is jointly submitted within the time period specified in paragraph (6) of this subsection, the governing board of the affected institutions shall be so notified. The Commission may then seek to eliminate the duplication by revoking the authority of a public institution of postsecondary education to offer the unreasonably or unnecessarily duplicative program. Prior to imposing a sanction under paragraph (5) of this subsection, the Commission shall give notice of the proposed sanction to the governing board of each affected institution. Within 20 days of receipt of the notice, any affected institution may request an opportunity to meet with the Commission and present objections. If timely requested, the Commission shall provide such opportunity prior to the Commission’s decision to impose a sanction. The Commission’s decision shall be final and is not subject to further administrative appeal or judicial review.

In this section the following words have the meanings indicated. “Private nonprofit institution of higher education” has the meaning stated in § 10–101(k) of this article. “Public institution of higher education” means: A public senior higher education institution; and A community college. A president of a public institution of higher education may propose to establish a new program or abolish an existing program if the action: Is consistent with the institution’s adopted mission statement under Subtitle 3 of this title; and Can be implemented within the existing program resources of the institution. A president of a private nonprofit institution of higher education may propose to establish a new program if the action: Is consistent with the mission statement published in the official catalog of the private nonprofit institution; and Can be implemented within the existing resources of the institution. The president of a public institution of higher education shall report any programs that are proposed to be established or abolished in accordance with paragraph (1) of this subsection to: The institution’s governing board; and The Maryland Higher Education Commission. The president of a private nonprofit institution of higher education shall report any programs that are proposed to be established in accordance with paragraph (2) of this subsection to the Commission. Upon receipt of a proposed new program, the Commission shall notify all other institutions of higher education in the State. The governing board of a public institution of higher education shall: Review the actions taken under subsection (b) of this section; Ensure that any new program proposed to be established by a president: Is consistent with the institution’s approved mission statement under Subtitle 3 of this title; Meets a regional or statewide need consistent with the State Plan for Higher Education; Meets criteria for the quality of new programs, developed in consultation with the Commission; and Can be implemented within the existing program resources of the institution, verified by a process established in consultation with the Commission. The Board of Regents of the University System of Maryland shall approve the proposed new program within 60 days if the program meets the criteria in subsection (c)(2) of this section, subject to the provisions of subsections (e) and (f) of this section. Within 30 days of receipt of a notice of an institution’s intent to submit a new program to the Commission in accordance with subsection (b) of this section, the Commission may file, or the institutions of higher education in the State may file with the Commission, an objection to implementation of a proposed graduate program provided the objection is based on: Inconsistency of the proposed program with the institution’s approved mission for a public institution of higher education and the mission statement published in the official catalog of a private nonprofit institution of higher education; Not meeting a regional or statewide need consistent with the State Plan for Higher Education; Unreasonable program duplication which would cause harm to the State or students attending institutions of higher education in the State; or Unnecessary program duplication in violation of the State’s equal educational opportunity obligations under State and federal law. Subject to paragraph (3) of this subsection, the Commission shall adopt regulations on procedures for conducting an analysis of the objections described in paragraph (1) of this subsection that: Clearly identify all of the specific criteria and factors used by the Commission; and For an objection under paragraph (1)(iii) of this subsection, use a set of baseline data and common sources and that prioritize: Meeting State and regional workforce needs; Preserving existing programs that are able to meet State and regional workforce needs; and Collaboration between institutions of higher education. The Commission, in consultation with the Attorney General, shall adopt regulations for standards for conducting an analysis of an objection under paragraph (1)(iv) of this subsection. If an objection is filed under subsection (e) of this section by the Commission or an institution within 30 days of receipt of a notice of an institution’s intent to establish a new program, the Commission shall immediately notify the institution’s governing board and president. The Commission shall determine if an institution’s objection is justified based on the criteria in subsection (e) of this section. An objection shall be accompanied by detailed information supporting the reasons for the objection. If the Commission determines that an objection is justified, the Commission shall negotiate with the institution’s governing board and president to modify the proposed program in order to resolve the objection. If the objection cannot be resolved within 30 days of receipt of an objection, the Commission shall make a final determination on approval of the new program for a public institution of higher education or a final recommendation on implementation for a private nonprofit institution of higher education. A hearing for review of the Secretary’s determination of an institution’s objection under subsection (f) of this section shall: Be conducted in open session, including discussions and any formal action taken by the Commission; Allow each party, including the Secretary, the proposing institution, and the objecting institution, to have not less than 10 minutes to present their positions regarding the determination, without interruption; and Require the approval of a majority of the members then serving on the Commission. On or before January 1, 2025, the Commission shall develop and publish on its website an administrative procedures guide for the Commission’s program review process developed under this section. The Commission shall update the administrative procedures guide at least once each year. The Commission shall: Identify programs established under subsection (b) of this section that are inconsistent with the State Plan for Higher Education; and Identify low productivity programs at public institutions of higher education. If the Commission identifies any programs that meet the criteria set forth in paragraph (1) of this subsection, the Commission shall notify the president of the institution. If the Commission notifies a president of an institution under paragraph (2) of this subsection, within 60 days the president of the institution shall provide to the Commission in writing: An action plan to abolish or modify the program; or Justification for the continuation of the program. The Commission and the governing boards of the public institutions of higher education shall jointly develop a definition and accepted criteria for determining low productivity programs. The Commission shall: Monitor the program development and review process established under this section; Report annually to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the nature and extent of any duplication or proliferation of programs; and Make available a copy of the report under item (2) of this subsection to the public institutions of higher education and the private nonprofit institutions of higher education.

On or before January 1, 2025, and each January 1 thereafter, the Commission shall review each academic program that has been recently approved and each academic program that has been approved in the 4 immediately preceding school years that was subject to an objection of a historically Black college or university, as described in § 10–214 of this article, to determine whether the historically Black college or university, the State, or students attending institutions of higher education in the State suffered harm resulting from approval of the program. On or before September 1, 2025, and each September 1 thereafter, the Commission shall report its findings under subsection (a) of this section, in accordance with § 2–1257 of the State Government Article, to the Senate Education, Energy, and the Environment Committee and the House Appropriations Committee.

In this section, “institution” means: A public senior higher education institution; or A private nonprofit institution of higher education. Beginning January 1, 2025, the Commission shall require each institution to submit a letter of intent to the Commission that identifies each new graduate level program that an institution intends to propose for approval under § 11–206 or § 11–206.1 of this subtitle. The Commission shall require each institution to submit a letter of intent every 6 months. The letter of intent shall include all new graduate programs the institution intends to propose within the 6–month to 2–year time period following submission of the letter of intent. The Commission shall use a letter of intent submitted by an institution under this section: To facilitate collaboration between institutions; and To provide feedback to an institution before the institution submits the new program to the Commission for approval, including any Commission concerns regarding unreasonable or unnecessary program duplication. The Commission may not use a letter of intent to establish any preference or priority for approval of a program proposal. This section may not be construed to give an institution the right of first refusal for any program included in a letter of intent submitted to the Commission under this section. Subject to paragraphs (2) and (3) of this subsection, the Commission shall establish requirements for submitting a letter of intent under this section, including the format, deadlines, and review criteria of the letters. The Commission may not post an institution’s letter of intent publicly. After review of the letters of intent submitted by each institution under this section, the Commission shall determine whether an intended program is similar to an existing program or another intended program included in another institution’s letter of intent. If the Commission determines that an intended program is similar to another program under subparagraph (i) of this paragraph, the Commission may notify the affected institutions of its determination, provide feedback, and encourage discussion and collaboration between the institutions. Except as provided in paragraph (2) of this subsection, the Commission may approve a program proposal submitted under § 11–206 or § 11–206.1 of this subtitle only if the institution has included the program in a letter of intent submitted to the Commission. The Commission may approve a new program proposed by an institution under § 11–206 or § 11–206.1 of this subtitle that was not included in a letter of intent if the institution submits proof satisfactory to the Commission: Of the exigent circumstances leading to the development of the proposed program; and That the benefit of the program to the State or region outweighs the State’s interest in reasonable public notice and institutional collaboration. The Commission shall establish objective standards and a fair and transparent process for consideration and approval of a proposed program under subparagraph (i) of this paragraph. In this subsection, “Fund” means the Proposed Programs Collaborative Grant Fund. There is a Proposed Programs Collaborative Grant Fund. The purpose of the Fund is to provide financial assistance to incentivize institutions of higher education to collaborate with other institutions of higher education, at the discretion of each institution, to establish and implement a new graduate program. The Commission shall: Administer the Fund; Develop an application process to apply for a grant from the Fund; and Award grants to institutions as intended by the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: Money appropriated in the State budget to the Fund; Interest earnings; and Any other money from any other source accepted for the benefit of the Fund. The Fund may be used only for expenses incurred by an institution for collaborating or attempting to collaborate with other institutions to establish and implement a new graduate program identified in a letter of intent under this section, including expenses for: Salaries of faculty who work together to determine if collaboration is feasible for the institutions; and Costs associated with: Providing transportation from one institution to another institution for shared classes or facilities; and Sharing resources across institutions, including research collaboration, student exchange programs, joint marketing or recruitment, faculty exchange programs, and online program collaboration. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. Expenditures from the Fund may be made only in accordance with the State budget. Money expended from the Fund for expenses incurred by institutions for collaborating or attempting to collaborate to establish and implement a new graduate program is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the new program.

Notwithstanding the provisions of §§ 11–206 and 11–206.1 of this subtitle and subject to subsection (b) of this section, the Commission shall develop and implement a program review process for new proposed programs that: Are offered only online and to a majority of out–of–state students; and Enable the institutions of higher education in the State to compete with out–of–state competitors in the online marketplace. The process developed and implemented under subsection (a) of this section shall allow the Commission or an institution of higher education in the State to file with the Commission an objection to implementation of the proposed program, provided the objection is based on: Inconsistency of the proposed program with the institution’s approved mission for a public institution of higher education or the mission statement published in the official catalog of a private nonprofit institution of higher education; Not meeting a need consistent with the State Plan for Higher Education; Unreasonable program duplication of a fully online program that would cause harm to the State or students attending institutions of higher education in the State; or Unnecessary program duplication of a fully online program in violation of the State’s equal educational opportunity obligations under State and federal law. The Commission shall include the program review process developed under this section in the administrative procedures guide required under § 11–206.1(h) of this subtitle.

In this section, “Graduate Professional Certificate Program” means a program that: Offers and awards a graduate certificate for successful completion of the number of courses required by the appropriate national professional association or state licensure or certification board for business and health professions and occupations; and Satisfies the requirements beyond the baccalaureate level for licensure or certification in a profession or occupation. An institution of higher education may establish a Graduate Professional Certificate Program if the institution offers a degree program directly related to the area of licensure or certification. The president of an institution of higher education shall notify the governing board of the institution and the Commission of the institution’s intent to offer a Graduate Professional Certificate Program. The Program shall be approved by the Commission and implemented consistent with the provisions of this section.

An institution of higher education may request to establish a program that leads to certification or licensure in school leadership, including to be an assistant principal, licensed principal, or distinguished principal. The institution of higher education making a request under this subsection shall present evidence to the Commission that the program will evaluate candidates based on their potential to be effective school leaders, including by reviewing evidence that the candidate: Has a record of successful teaching; and Has performed well in teacher leadership roles. An institution of higher education may request to establish a program that offers graduate level courses in school administration for continuing certification. The institution of higher education making the request under this subsection shall present evidence to the Commission that the program’s curriculum will enable graduates to: Successfully organize and manage schools and school systems; Manage highly skilled professionals working in a modern professional work environment; and Effectively conduct peer observation and evaluation of other school personnel.

The Commission shall establish a program evaluation unit to evaluate new programs and substantial modifications. The unit established in this section shall have at least 10 staff members who are employees of the Commission. The staff members assigned to this unit shall be in addition to the current workforce of the Commission. The unit established in this section shall assist the Commission in reviewing and evaluating proposals for new programs and substantial modifications of existing programs in accordance with §§ 11–206 and 11–206.1 of this subtitle. Beginning in fiscal year 2023, the Governor shall include in the annual budget bill an appropriation in an amount sufficient to employ the 10 staff members required under this section.

The Commission shall: Establish procedures for transfer of students between the public segments of postsecondary education; Recommend cooperative programs among segments of postsecondary education to assure appropriate flexibility in the higher education system; and In conjunction with the governing boards, establish standards for articulation agreements. The procedures established under subsection (a) of this section shall require: A receiving institution that denies the transfer of a credit or course to an enrolled student to notify the transfer coordinator or institutional designee of the sending institution and the enrolled student about the denial within a time period that the Commission determines to be the latest possible time for the notification and specify the rationale for the denial; The transfer coordinator or institutional designee of the sending institution, after receiving notice of a denial of the transfer of a credit or course, in conjunction with the receiving institution’s designee, to conduct a review within a time period the Commission determines to be appropriate; and Each public institution of higher education to submit an annual report to the Commission listing any denials of the transfer of a credit or course and the reasons for the denials. The Commission, in collaboration with the public institutions of higher education, shall develop and implement a statewide transfer agreement whereby at least 60 credits of general education, elective, and major courses that a student earns at any community college in the State toward an associate of arts or associate of science degree shall be transferable to any public senior higher education institution in the State for credit toward a bachelor’s degree by July 1, 2016. The agreement under paragraph (1) of this subsection shall require that any credits earned for a course at a community college in the State in accordance with § 15–117(b)(3) of this article be transferable to any public institution of higher education in the State. A public institution of higher education in the State may not deny the transfer of credits in accordance with subparagraph (i) of this paragraph for any reason. The Commission, in collaboration with the public institutions of higher education, shall develop and implement a statewide reverse transfer agreement whereby at least 30 credits that a student earns at any public senior higher education institution in the State toward a bachelor’s degree are transferable to any community college in the State for credit toward an associate’s degree by July 1, 2016. The Commission and each public institution of higher education shall develop and implement incentives for students to obtain an associate’s degree before enrolling in a public senior institution of higher education. The Commission may recommend procedures and guidelines for consideration by the governing boards of institutions of postsecondary education on: Improvement and coordination of student financial assistance programs; and Other subjects of general interest and concern to the higher education community in the State.

Any credits earned for a course at a community college in the State in accordance with § 15–117(b)(3) of this article may be transferable to any private nonprofit institution of higher education in the State. A private nonprofit institution of higher education in the State shall review and consider the transfer of credits in accordance with subsection (a) of this section.

In this section, “national accreditation” means teacher education accreditation by an accrediting agency recognized by the Department and the Commission. An institution of higher education in this State may not offer a program of undergraduate or graduate studies that would certify a recipient to teach unless the institution has received: Approval to operate by the Commission or under operation of law; and National accreditation; or Approval by the Department. An institution of higher education shall determine whether to seek national accreditation or approval by the Department as described under paragraph (1) of this subsection. When determining whether an accrediting agency is recognized, the Department and the Commission shall consider whether the national accrediting agency uses national professional standards that are comparable to the standards that are used by the Department when approving a teacher preparation program. The Department and the Commission shall jointly agree on the standards used by the Department to determine approval under subsection (b)(1)(ii) of this section. The national accreditation process for an institution of higher education subject to this section shall be conducted in accordance with the protocol established by a national accrediting agency and the Department. In conjunction with accrediting agencies, the Department shall develop and administer a program of technical support, available on request, to assist institutions of higher education in the State that seek national accreditation or approval by the Department under subsection (b) of this section. In addition to the technical support provided to an institution of higher education under paragraph (1) of this subsection, the Department shall pay: Any fee that a national accrediting agency charges an institution of higher education in connection with the accreditation process; Any training fee that a national accrediting agency charges a State representative who serves with a review team of an accrediting agency in conjunction with an accreditation visit to an institution of higher education in the State; and One–half of the expenses incurred by an institution of higher education in connection with the accreditation visit of a review team of a national accrediting agency. The Department shall adopt regulations to implement this section. The Governor shall provide sufficient funds in the Department’s annual budget for the additional costs incurred by the Department under this section.

In this section, “near completer” means an individual who has completed some college credits but does not have a college degree and is no longer attending an institution of higher education. The Commission, in collaboration with institutions of higher education, shall create a statewide communication campaign to identify near completers in the State and to encourage near completers to re–enroll in an institution of higher education to earn a degree. For each of fiscal years 2020 through 2024, the Governor shall include in the State budget $125,000 to the Commission to fund a statewide communication campaign. The communication campaign shall: Make use of a variety of marketing media, including billboards, brochures, and electronic resources; Provide a centralized contact point for near completers to get information about and assistance with re–enrolling; Make readily available contact information for each public institution of higher education in the State; Focus on near completers who: Earned a minimum grade point average of 2.0 on a scale of 4.0 while in college; and Earned at least 45 credit hours if the individual attended a community college; or Earned at least 90 credit hours if the individual attended a senior higher education institution; and For the 2022–2023 and 2023–2024 academic years, focus on near completers who are no longer attending an institution of higher education because of personal or financial reasons related to the COVID–19 pandemic. The Commission shall develop and implement a centralized web–based match program for near completers that facilitates the matching of a near completer with any institution of higher education at which the near completer would be able to complete the degree. The Commission shall encourage each institution of higher education in the State to participate in the match program at no cost to the institution. An institution that participates in the match program shall provide the Commission with information regarding near completers who attended the institution, as requested by the Commission and in the format identified by the Commission. On receipt of information under subparagraph (i) of this paragraph, the Commission shall: Determine any matches between a near completer and institutions; and Send information to the near completer regarding the matches, any incentives offered for near completers by the State or by the institutions, and any other financial aid available to the near completer. For each of fiscal years 2020 through 2024, the Governor shall include in the State budget $50,000 to the Commission to develop and implement the match program for near completers described under this subsection. A near completer is eligible for a grant under this section if the near completer: Earned a minimum grade point average of 2.0 on a scale of 4.0 while in college; and Earned at least 45 credit hours if the individual attended a community college; or Earned at least 90 credit hours if the individual attended a senior higher education institution. The Governor shall include in the State budget the amount specified in paragraph (3) of this subsection to the Commission to provide to a near completer the following amount: For a near completer who re–enrolls in a community college, up to one–third of the in–county tuition charge; or For a near completer who re–enrolls in a public senior higher education institution, up to one–third of the resident undergraduate tuition charge. The Governor shall include the following amounts in the State budget to the Commission for near completer grants under paragraph (2) of this subsection: For fiscal year 2020, $250,000; and For each of fiscal years 2021 through 2024, $375,000. A grant provided under this subsection may be used only for tuition and may not be used for fees or other charges or expenses related to attending an institution of higher education. All nonloan aid received by the near completer shall be credited to the near completer’s tuition before the calculation of the grant amount provided under this subsection. Grants shall be provided on a first–come, first–served basis. The Commission and institutions of higher education may implement other near completer initiatives in addition to the campaign and match program required under this section. By December 1, 2019, and every December 1 through 2025, the Commission shall submit a report, in accordance with § 2–1257 of the State Government Article, to the General Assembly on the details of the statewide communication campaign and the match program, including implementation of the campaign and match program and a detailed account of the expenditures under the grant program established in subsection (d) of this section.

In this section the following words have the meanings indicated. “Annual revenue” means the revenue generated during an institution of postsecondary education’s fiscal year that can be included in its calculation related to compliance with 20 U.S.C. § 1094(a)(24). “Federal funds” means any federal financial assistance provided to an institution of postsecondary education through a grant, a contract, a subsidy, a loan, a guarantee, an insurance policy, or any other means. “Federal funds” includes federal financial assistance that is disbursed to a for–profit institution of higher education or a private career school under any federal law on behalf of a student to be used to attend the institution or school. “Federal funds” does not include any monthly housing stipend provided under the federal Post–9/11 Veterans Educational Assistance Act of 2008. Subject to subsection (c) of this section, this section applies to: A for–profit institution of higher education approved to operate in the State; A for–profit institution of higher education that enrolls Maryland residents in a fully online distance education program in the State; and A private career school approved to operate in the State that has not been determined by the Internal Revenue Service to be an organization to which contributions are tax deductible in accordance with § 501(c)(3) of the Internal Revenue Code. An institution or a school described in subsection (b) of this section shall: Be approved by the Commission to receive education assistance under the federal Post–9/11 Veterans Educational Assistance Act of 2008; and Have received funds to pay for students’ tuition, fees, or other institutional charges through Title IV of the federal Higher Education Act of 1965 during the prior academic year for which the tuition, fees, and other institutional charges collected per full–time equivalent student enrolled would not be covered in full by the amount of the maximum level of federal Pell Grant funds. At least 10% of the institution’s or school’s annual revenue shall be from a source other than federal funds. An institution or a school described under subsection (b) of this section may not enroll new Maryland residents in a program if, beginning in fiscal year 2023: In 2 out of 3 of the immediately preceding fiscal years the institution or school fails to satisfy the provisions of subsection (d) of this section; or For 2 consecutive years the institution or school fails to satisfy the provisions of subsection (d) of this section. On or before December 1, 2020, the Commission shall adopt regulations to carry out this section.

In this section the following words have the meanings indicated. “Closing institution” means a private career school or an institution of postsecondary education that closes at least one program in a manner that is a disorderly closure. “Disorderly closure” means the cessation of educational instruction, as determined by the Commission, of a program in which: The institution did not provide a satisfactory amount of time, as determined by the Commission, for all Maryland students to complete the program; The institution did not transition all Maryland students into another program at the institution; or The institution did not enter into at least one school–to–school teach–out agreement. “Eligible transfer institution” means a private career school or an institution of postsecondary education that: Has a certificate of approval from the Commission in accordance with § 11–202 of this subtitle; Is registered with the Commission in accordance with § 11–202.2 of this subtitle; or Is exempt from registering with the Commission in accordance with § 11–202.2 of this subtitle; Is in good standing with its accreditor and, if applicable, its licensing body; If applicable, has cohort loan default rates, as most recently reported by the U.S. Department of Education, that are less than or equal to: The cohort loan default rates of the closing institution; or The national average cohort loan default rates for all institutions; Is not currently under financial aid restrictions by the U.S. Department of Education; and Within the previous 5 years: Has not entered into any settlement agreements related to a consumer protection law with a law enforcement agency; and Has not had any judgments related to a consumer protection law entered against it in favor of a law enforcement agency. “Fully online distance education program in the State” has the meaning stated in § 11–202.2 of this subtitle. “Institutional debt” means: The amount outstanding on any credit, including unpaid charges, extended by or on behalf of the institution that a student is obligated to repay, whether the amount has been reduced to judgment or the institution classifies it as a loan; or A nonfederal loan or debt agreement that is issued expressly for postsecondary education expenses and that is guaranteed by: A private career school; An institution of postsecondary education; or A private educational lender that is affiliated with a private career school or an institution of postsecondary education. “Institutional financial aid agreement” means any contract, promissory note, part of an enrollment agreement, or other agreement in which a student agrees to pay an institutional debt. This section applies to a private career school or an institution of postsecondary education, as defined in § 10–101 of this article, that: Operates in the State; or Enrolls at least 25 students in a fully online distance education program in the State and that has total tuition revenue from Maryland students greater than $100,000 in the immediately preceding academic year. In addition to any other requirement of this title, an institution identified in subsection (b) of this section shall provide to the Commission a close–out agreement. A close–out agreement provided under this paragraph shall be updated as required by the Commission. A close–out agreement under this subsection shall state that: The institution will make all reasonable efforts to ensure that any closure of a program that enrolls Maryland students is not a disorderly closure; Unless exempted by the Commission, the chief executive officer and the members of the governing body of the institution were never in an executive position or a member of a governing body of an institution in which a disorderly closure occurred; Any institutional financial aid agreement offered to a Maryland student shall contain language stating that, in the event of a disorderly closure, the institutional debt is void and may not be recovered, collected, or enforced. A school–to–school teach–out agreement shall: Be arranged by the closing institution; Be between an eligible transfer institution, the closing institution, and the Commission; and Unless waived for good cause by the Commission, specify that the eligible transfer institution: If the closing institution has a physical presence in the State, is located within a reasonable distance of the closing institution; Shall accept the transfer of 75% of completed credits from students affected by the disorderly closure; Shall allow a Maryland student affected by the disorderly closure to complete the student’s program with substantially the same number of credit hours as was required by the institution operating the closing program; and May not charge a Maryland student tuition or fees in excess of the lesser of: The remaining amount that a Maryland student affected by the disorderly closure would have paid to the closing institution to complete the program; or The transfer institution’s applicable tuition and fees; and Specify that, on request by a Maryland student affected by the disorderly closure, the closing institution shall provide a complete academic record and an official transcript to the Maryland student at no cost to the Maryland student or the State. It shall be an unfair, abusive, or deceptive trade practice as defined in § 13–301 of the Commercial Law Article for any institution, person, or entity to collect on a Maryland student’s institutional debt if: The institutional financial aid agreement does not contain the language required under subsection (c)(2)(iv) of this section; or The institutional debt is owed by a Maryland student who attended a program in which a disorderly closure occurred. The Commission shall adopt regulations to carry out the provisions of this section.

In this section the following words have the meanings indicated. “Program” means the federal Workforce Pell Grant Program by which Pell Grants may be awarded to students enrolled in a short–term program in accordance with Section 83002 of the One Big Beautiful Bill Act, as amended. “Registered apprenticeship” means an apprenticeship program that is registered with, and approved by, the U.S. Department of Labor or the Maryland Apprenticeship and Training Council. “Short–term program” means a program of study that is: At least 150 hours of instruction; Less than 600 hours of instruction; At least 8 weeks; Less than 15 weeks; and Not a correspondence course as defined in Title 34, Subtitle B, Chapter VI, Part 600 of the Code of Federal Regulations in effect on July 1, 2021. The purpose of this section is to implement the Workforce Pell Grant Program in the State. The Governor, after consulting with the Governor’s Workforce Development Board, shall determine whether a short–term program offered at an institution of postsecondary education meets the requirements of this section. Subject to subparagraph (ii) of this paragraph, an institution of postsecondary education, regardless of having a physical presence in the State, may not: Disburse Program funds to a student in the State; or Advertise, market, or inform students in the State about the availability of Program funds for a short–term program. Subparagraph (i) of this paragraph does not apply if an institution of postsecondary education, regardless of having a physical presence in the State, obtains: The approval of the Governor under this section for each short–term program for which the institution of postsecondary education seeks to disburse Program funds; and A determination from the Secretary of the U.S. Department of Education that the institution of postsecondary education meets the requirements of the Program for each short–term program for which the institution of postsecondary education seeks to disburse Program funds. For the approval to remain effective, every 2 years an institution of postsecondary education shall provide information verifying the short–term program remains in compliance with this section and the Program. If the Attorney General or court of appropriate jurisdiction finds the institution of postsecondary education engaged in unfair, deceptive, or abusive trade practice under Title 13 of the Commercial Law Article related to the Program, the Governor shall revoke an approval. Subject to paragraph (2) of this subsection, a short–term program seeking approval under this section shall: Provide an education aligned with the requirements of: A high–skill or high–wage occupation as identified by the State under the Carl D. Perkins Career and Technical Education Act; or An in–demand industry sector or occupation; Meet the hiring requirements of employers in the sectors or occupations identified under item (i) of this paragraph; Lead to a recognized postsecondary credential that is stackable and portable across more than one employer; or Prepare students enrolled in the short–term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards students with the credential on completion of the short–term program; and Prepare students to pursue one or more certificates or degrees at an institution of postsecondary education by ensuring that: On completion of the short–term program and enrollment in a related certificate or degree program, a student will receive academic credit that an institution of postsecondary education will accept toward that certificate or degree; and The academic credit described under item 1 of this item will be accepted toward meeting the certificate or degree program requirements. The related technical instruction component of a registered apprenticeship program offered at an institution of postsecondary education satisfies the requirements of paragraphs (1)(i), (ii), and (iii) and (3)(iii) of this subsection. In addition to the requirements of paragraphs (1) and (2) of this subsection, an institution of postsecondary education seeking approval under this section shall provide: Documentation that, for the 12 months preceding the date on which the institution of postsecondary education applied for approval, the institution offered the short–term program and the short–term program met all requirements of this section; Documentation that the short–term program has a completion rate of at least 70% within 150% of the normal time for completion for each federal aid award year; Documentation that the short–term program has a job placement rate of at least 70% after 180 days of completion for each federal aid award year; Documentation that the tuition and fees for the short–term program are in compliance with the requirements of the Program; and Any information the Governor’s Workforce Development Board or the Commission requests to verify compliance with this section and the Program. The Governor’s Workforce Development Board, the Commission, or any other authorized entity may collect an application fee to complete the evaluation. A registered apprenticeship program approved for workforce Pell Grants shall include in the curriculum both on–the–job learning and classroom learning, including artifacts and demonstrated performance or competency assessment, under the general supervision of the faculty. In the operation of a short–term program that is authorized under this section, an institution of postsecondary education may not: Partner, contract, or affiliate with an entity, institution, or organization other than a registered apprenticeship, to offer instruction for the short–term program unless the contracting entity, institution, or organization: Clearly and prominently discloses that the contracting entity is a company that is separate from the institution of postsecondary education and describes all of the services that the contracting entity is contracted to provide for the institution in the following places: On the institution of postsecondary education’s website; In marketing materials about the short–term program; and In oral communications with prospective students of the short–term program; and Is not involved with the institution of postsecondary education’s governance, decision making over the design or development of course curriculum or instruction, setting of short–term program admission standards, determining enrollment targets, or creation of new short–term programs; Unless a loan is 0% interest, partner or affiliate with an entity that offers student loans, lines of credit, or income sharing agreements for the short–term program; Charge tuition and fees to any student enrolled in the short–term program that are greater than the maximum amount of Pell Grant funds available for any student in that short–term program, as established by the Secretary of Education, for the period of time that the short–term program is offered; or Offer the short–term program using non–credit–bearing courses unless those courses will transfer to at least one institution of postsecondary education regardless of program completion. The Governor’s Workforce Development Board shall request and collect relevant data from each institution of postsecondary education offering an approved short–term program. The data collected under subparagraph (i) of this paragraph may include: Information regarding employer partnerships; Job placement sectors; and The alignment of short–term program curricula with the hiring requirements of in–demand industry sectors. Each institution of postsecondary education offering an approved short–term program shall provide the data requested by the Governor’s Workforce Development Board under this paragraph in the form and manner required by the Board. On or before September 30 each year, the Governor’s Workforce Development Board and the Commission shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, a summary of the information collected under paragraph (1) of this subsection and the demographic and financial aid information of State students who enrolled in short–term programs approved under this section. The Governor’s Workforce Development Board and the Commission may adopt regulations necessary to carry out this section.