In this subtitle the following words have the meanings indicated. “Assistive technology” means any item, equipment, or device that is designed to enable an individual with a disability to become more independent or a more productive member of the community with an improved quality of life. “Assistive technology” includes wheelchairs, motorized scooters, Braille equipment, voice simulation systems, scanners, assistive listening devices, telecommunications devices for the deaf, augmentative communication systems, environmental control systems, computers and adaptive peripherals, building modifications for accessibility, motor vehicles, and vehicle modifications. “Board” means the Board of Directors of the Program. “Department” means the Department of Disabilities. “Fund” means the Assistive Technology Loan Fund. “Program” means the Assistive Technology Loan Program. “Secretary” means the Secretary of Disabilities.

There is an Assistive Technology Loan Program in the Department.

The purpose of the Program is to provide assistance for the purchase of assistive technology.

There is a Board of Directors of the Program.

The Board consists of: the Secretary of Information Technology or the Secretary’s designee; a representative from the Maryland Department of Health, Developmental Disabilities Administration, appointed by the Secretary of Health; a representative of the State Department of Education Division of Rehabilitation Services, appointed by the State Superintendent of Schools; and eight members of the public appointed by the Governor with the advice and consent of the Senate. Of the eight members of the public appointed by the Governor: four shall have significant experience in finance, accounting, investment management, or consumer lending; and four shall have disabilities or assist individuals with disabilities. The term of a member appointed by the Governor is 4 years. At the end of a term, a member continues to serve until a successor is appointed and qualifies. A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies. A member appointed by the Governor may not serve more than two terms.

From among its members, the Board annually shall elect a chair.

Six members of the Board are a quorum. The Board shall meet at least quarterly or more often as necessary to carry out its duties efficiently. A member: may not receive compensation as a member of the Board; but is entitled to reimbursement for expenses under the Standard State Travel Regulations as provided in the State budget. Except as provided in subsection (c) of this section, a member may not financially benefit directly or indirectly from the activities of the Fund. The Department shall provide staff to the Board.

Subject to §§ 7-609(a) and 7-610 of this subtitle, the Board may provide a guarantee of a loan or a subsidy of loan interest for a loan to an individual for the purchase of assistive technology.

To apply for a guarantee of a loan or a subsidy of loan interest, an applicant shall submit to the Board an application on the form that the Secretary provides. The Board shall review the applications for guarantees of loans and subsidies of loan interest and approve or deny them based on information provided to or obtained by the Board.

The Board may enter into an agreement with an applicant to guarantee a loan or provide a subsidy for loan interest to the applicant only if the applicant demonstrates: that the loan to be guaranteed or the subsidy of loan interest will be used to acquire assistive technology; the ability to repay the loan; creditworthiness; and the inability to qualify for a loan from a lending institution without a loan guarantee or a subsidy of loan interest. The Board may elect to provide the borrower with an interest rate equivalent to the guaranteed rate by either guaranteeing the loan or subsidizing the interest rate if: a participating lending institution approves a loan without the requirement of a guarantee; and the interest rate is higher than the interest rate otherwise available for a guaranteed loan.

Except as provided in this subtitle, the Board and lender jointly shall determine the amount and terms of the guarantee of the loan or the subsidy of loan interest. The total aggregate amount of a loan guarantee may be up to 100% of the loan. The total aggregate amount of the loan guarantees to be provided from the Fund in any given year shall be set annually by the Board in accordance with the requirements of the banks underwriting the loans at any given time.

If a borrower violates any provision of a loan guarantee or subsidy agreement or ceases to meet the requirements of this subtitle, on reasonable notice to the borrower, the Board may: withhold from the borrower further loan guarantees or subsidies until the borrower complies with the agreement or requirements; and exercise any other remedy that the loan guarantee or subsidy agreement provides.

There is an Assistive Technology Loan Fund in the Department. The purpose of the Fund is to provide guarantees of loans and subsidies of loan interest for the purchase of assistive technology. The Board shall administer the Fund. The Treasurer shall hold the Fund separately and the Comptroller shall account for the Fund. The Fund is a continuing, nonlapsing fund that is not subject to § 7-302 of the State Finance and Procurement Article. Any investment earnings of the Fund shall be paid into the Fund. If, at any time, the balance of the Fund exceeds the amount that the Board considers necessary to meet its obligations, on resolution of the Board, the excess shall revert to the General Fund.

The Fund consists of: premiums and fees charged for the guarantees of loans or the subsidies of loan interest; income from investment earnings; proceeds from the sale, disposition, lease, or rental of collateral relating to the guarantees of loans or subsidies of loan interest; money appropriated by the State to the Fund; and any other money made available to the Fund. The Fund shall be used to pay: guaranty payments required by loan defaults; subsidies of loan interest; expenses for administrative, legal, actuarial, technical assistance, and other services; and any other expenses and disbursements that the Board authorizes for administering the Fund and financing the guarantees of loans and the subsidies of loan interest for the purchase of assistive technology.

Each year, the Treasurer shall report to the Board and the Secretary on: the status of the money invested under this subtitle; the market value of the assets in the Fund as of the date of the report; and the interest received from investments during the period that the report covers.

On or before January 1 of each year, the Board, through the Secretary, shall report to the Governor and, subject to § 2-1257 of the State Government Article, to the General Assembly, on the number, amount, and use of loans and subsidies for which the Program has provided guarantees of loans and subsidies of loan interest under this subtitle.