# COMAR Title 13B — Maryland Higher Education Commission

## Subtitle 01 — Nonpublic Schools

### Chapter 03 — Classification of Nonpublic Institutions of Higher Education

#### Regulation .04 Criteria for Classification.

*COMAR 13B.01.03.04*

A. An institution of higher education shall be determined to be a private nonprofit institution of higher education under §10-101 of the Education Article if it:

  (1) Benefits no person or entity through any part of its net earnings;

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

  (3) Has been determined by the IRS to be an organization to which contributions are tax deductible in accordance with 26 U.S.C. §501(c)(3);

  (4) Had no reportable incidents in the previous calendar year that:

    (a) Are determined by the Secretary to constitute private inurement; and

    (b) Were not satisfactorily corrected prior to the submission of the report in Regulation .05 of this chapter; and

  (5) Timely files the report required under Regulation .05 of this chapter.

B. An institution shall be determined to be a for-profit institution of higher education under Education Article, §10-101, Annotated Code of Maryland, if it:

  (1) Does not request classification as a private nonprofit institution of higher education by filing the report required under Regulation .05 of this chapter;

  (2) Benefits any person or entity through any part of its net earnings;

  (3) Is not legally authorized to operate as a nonprofit organization by each state in which it is physically located;

  (4) Has not been determined by the IRS to be an organization to which contributions are tax deductible in accordance with 26 U.S.C. §501(c)(3);

  (5) Had any reportable incidents in the previous calendar year that:

    (a) Are determined by the Secretary to constitute private inurement; and

    (b) Were not satisfactorily corrected prior to the submission of the report in Regulation .05 of this chapter;

  (6) Knowingly fails to disclose a reportable incident in the report required under Regulation .05 of this chapter; or

  (7) Does not timely file the report required under Regulation .05 of this chapter.