This chapter implements the provisions of Education Article, §§11-201—11-204, Annotated Code of Maryland. The purpose of this chapter is to require that out-of-State institutions: Maintain intellectual and academic integrity; Have adequate financial resources and be operated in accordance with acceptable principles of sound financial management; Have a clearly defined mission, with goals and objectives consistent with the purposes of higher education and related to the programs to be offered by the institution in Maryland; Consistently maintain a faculty, a program of instruction, physical facilities, and resources adequate to the: Satisfactory delivery of the program approved to be offered in Maryland; and Attainment of educational quality; Admit, retain, and graduate only those students who meet quantitatively and qualitatively creditable standards of achievement appropriate to the institution; Issue announcements and advertisements that accurately portray to the public the purposes, practices, and program offerings of the institution at the approved site or sites in Maryland; Provide appropriate student services; and Operate under an effective administrative structure. This chapter is to be interpreted to encourage and permit innovations aimed at improving the effectiveness of higher education through the use of new technologies, techniques, and modes of delivery that are consistent with quality education. The requirements in this chapter apply to all out-of-State institutions, including colleges and universities, and separately incorporated graduate institutions or centers that require or seek a certificate of approval to operate in Maryland, or continue to operate in Maryland, and grant formal awards within the State. The requirements in this chapter also apply to existing out-of-State institutions that are seeking approval to offer a new degree level in Maryland. The approval granted to an out-of-State institution to operate in Maryland and award degrees applies only to the formal awards, instructional programs, and locations designated in the certificate of approval. Programs to be reviewed under this authority include: New certificates or degree levels; and Program suspensions or discontinuances. Application of Chapter to Out-of-State SARA Institutions. Regulations .04-1—.22 of this chapter do not apply to out-of-State SARA institutions that do not operate in Maryland. The requirements of this chapter apply to out-of-State SARA institutions that operate in Maryland. In this chapter, the following terms have the meanings indicated. Terms Defined. Academic Credit. “Academic credit” means the certification of a student's successful completion of a unit of a course of study leading to a formal award granted by an out-of-State institution approved to offer a collegiate degree, such as an associate or higher degree. “Academic credit” does not include credit that may be awarded for remedial education. “Associate degree-granting institution” means an institution that awards a degree at the associate level in two or more instructional programs and does not award a higher degree. Classroom Instruction. “Classroom instruction” means live instruction for academic credit that allows immediate interaction between student and instructor, such as lectures, laboratory instruction, seminars, colloquia, interactive instructional television, and, if immediate live feedback is available from an instructor, independent study and computer-aided instruction. “Classroom instruction” does not include instruction through correspondence, non-interactive learning, credit for prior learning, cooperative education activities, practica, internships, externships, apprenticeships, portfolio review, departmental examinations, or challenge examinations. “Closed site” means a business, organization, educational entity, or government site that offers courses solely for its own employees. “Commission” means the Maryland Higher Education Commission. “C-RAC guidelines” means the Interregional Guidelines for the Evaluation of Distance Education adopted by the Council of Regional Accrediting Commissions. “Credit for prior learning” means credit granted toward the award of a certificate or degree for experiential learning that can be shown through various means of assessment to be the equivalent of learning gained through formal collegiate instruction. “Degree-granting institution” means an associate degree-granting institution or an institution offering baccalaureate or higher degrees. “Distance education” means education that uses one or more of the following technologies to deliver instruction to students who are separated from the instructor, and to support regular and substantive interaction between the students and the instructor synchronously or asynchronously: Internet; One-way and two-way transmissions through open broadcasts, closed circuit, cable, microwave, broadband lines, fiber optics, satellite or wireless communication devices; Audio conferencing; and Video cassette, DVDs, and CD-ROMs, if the cassette, DVDs, and CD-ROMs are used in a course in conjunction with a technology listed in §B(8)(a)—(c) of this regulation. “Formal award” means a certificate or degree that is conferred by the faculty and ratified by the out-of-State institution's governing board in recognition of successful completion of the requirements of a program. “Full-time faculty member” means an employee: Whose primary professional responsibility is instruction, research, scholarship, or service; Who performs those functions normally expected of a full-time faculty member at an institution of higher education, including curriculum development, student advising, and institutional service; Who is employed on an annual or renewable contract of at least 9 months long that stipulates an annual salary; and Who is not employed full-time by another employer. “Home state” means the SARA member state in which an institution holds its legal domicile. “New degree” means a degree level not specified in an out-of-state institution's certificate of approval such as an associate level, bachelor's level, master's level, doctoral level, or first professional level. “Operate in Maryland” means to: Establish or provide a physical location in the State for students to receive synchronous or asynchronous instruction for credit leading to a degree or certificate; Require students to physically meet in a location in the State for instructional purposes more than twice during a full-term (quarter or semester) course for a total of more than 6 hours; or Have more than ten students, in a single program, placed simultaneously at one site in the State in a supervised internship, practicum, or field experience as a required part of a degree or certificate program, unless the internship, practicum, or field experience: Is arranged and administered by a national placement center; Occurs at the National Institutes of Health, the U.S. Food and Drug Administration, or another federal agency that, in the determination of the Secretary, recruits students nationwide from eligible academic programs, regardless of the student’s specific institution of higher education; or In the determination of the Secretary, has de minimus contacts with Maryland and is subject to the sufficient oversight of another regulatory body or government agency. “Out-of-State institution” means a degree-granting institution whose primary campus exists outside of Maryland and the authority to grant degrees is conferred by another state. “Out-of-State SARA institution” means an out-of-State institution approved by its home state to participate in SARA. “Program” means a structured and coherent course of study with clearly defined objectives and intended student learning outcomes, requiring the completion of a specified number of course credits from among a prescribed group of courses, which leads to the award of a certificate or degree. “Regional higher education center” has the meaning stated in Education Article, §10-101(k), Annotated Code of Maryland. “Remedial education” means a course or series of courses or services, or both, designed to remedy deficiencies in preparation for college-level work, especially in reading, writing, mathematics, and study skills that cannot be applied to credit for a degree or certificate. “SARA” means a State Authorization Reciprocity Agreement overseen by the National Council for State Authorization Reciprocity Agreements and administered by the Southern Regional Education Board, the New England Board of Higher Education, the Midwestern Higher Education Compact, or the Western Interstate Commission for Higher Education. “SARA distance education” means interstate instruction, originating in the U.S. or a U.S. territory, offered by any means where the student and faculty member are in separate physical locations, including, but not limited to, online, interactive video, or correspondence courses or programs. “Secretary” means the Secretary of Higher Education. “Segment of higher education” means: The University System of Maryland; Morgan State University; St. Mary's College of Maryland; The Maryland community colleges; The Maryland Independent College and University Association; and The Maryland Association of Private Colleges and Career Schools. This chapter does not apply to an out-of-State institution offering a course or a program on a military installation if: The recruitment and enrollment of students is limited to active duty military personnel, dependents of active duty military personnel, or civilians employed at the installation; The institution waives its right to claim veterans' benefits for enrollees; and The institution applies for and is granted an exemption from this regulation. At least 30 days before the proposed initiation date of a course of instruction, the chief executive officer of the out-of-State institution shall submit to the Secretary, on the forms provided, a written application for an exemption from the approval process set forth in Regulation .07 of this chapter. The application shall include: A copy of the agreement or memorandum of understanding that specifies that the out-of-State institution may not recruit or enroll students unless they are active duty military personnel, dependents of active duty military personnel or civilians employed at the installation; and A statement waiving the institution's right to claim veterans' benefits for enrollees. There is no application fee for an exemption for a course or program on a military installation. The Secretary shall approve the exemption if the application is complete. An out-of-State institution that has no more than ten students in a single program placed simultaneously at one site in the State in a supervised internship, practicum, or field experience as a required part of a degree or certificate program shall: Submit to the Secretary, by June 30 of each year, an annual report detailing the number of students placed at each internship, practicum, or field experience location; and Register any online programs in accordance with Education Article, §11–202.2, Annotated Code of Maryland. The annual report to the Secretary shall be made in a form and manner required by the Secretary. An out-of-State institution or other out-of-State entity may not use the name “college”, “university”, “regional higher education center”, or word of similar import, in a manner that connotes the offering of a postsecondary educational course or program, unless that institution has first met the criteria established by, and obtained a certificate of approval from, the Commission in the manner provided by law. Change of Institutional Designation. An out-of-State institution may not change its institutional designation within the State without the approval of the Commission. An institution shall pay a fee of $250 with an application to the Commission to change its institutional designation. An out-of-State institution shall use within the State a title appropriate to the programs and degrees it offers in the State. Before the Commission may evaluate the readiness of an out-of-State institution to operate in Maryland or award new degrees in the State, including the offering of an instructional program or a degree level not previously approved, the institution shall present evidence demonstrating the educational need to establish operations, offer programs, and award the degrees in question in the State. The evidence required by §A of this regulation shall include: The degree to be awarded; The area of specialization; The purpose or objective of the program or course of study to be offered; Specific academic content of the program or course of study; The quality of the proposed program in comparison to existing programs; An analysis of the market for the program; and The State's equal educational opportunity obligations under State and federal law. In addition, the out-of-State institution shall demonstrate that the proposed program, for which the institution is making application: Meets a critical and compelling regional or Statewide need; and Is consistent with the Maryland State Plan for Postsecondary Education. The out-of-State institution shall clearly state the demand and need for a program, for which the institution is making application, in terms of meeting present and future needs of the region and the State in general. Two kinds of need may be identified: Societal needs, including the tradition of liberal arts education, which provides immeasurable returns to the State in part by instilling in citizens a capacity for advanced learning and individual and societal benefits regardless of workforce or market demand considerations; and Occupational needs relative to meeting workforce requirements or upgrading vocational or technical skills. Market Demand Data. The out-of-State institution shall present data projecting market demand and the availability of openings in the job market to be served by the new program for which the institution is making application. The type of information submitted will vary, depending on the program, but may include workforce and employment projections prepared by the federal and State governments as well as professional and trade associations. With the exception of programs in the liberal arts, recently collected, existing, or new market surveys shall be used which clearly provide quantifiable and reliable data from prospective employers on the educational and training needs, and the anticipated number of vacancies, expected over the next 5 years. In assessing demand for a new program, for which the institution is making application, an institution shall also present data showing the current supply of graduates in that program area in the State and region. An out-of-State institution seeking initial approval may not operate in Maryland, do business, recruit or enroll students, begin instruction, or promote advanced publicity through advertisements, announcements, or other similar media on proposed courses or programs to be offered in Maryland until it obtains approval from the Secretary in accordance with this chapter. The Secretary's approval to operate in Maryland, if granted, shall be for a period of 1 year and may be renewable on an annual basis for the first 5 years of operation in Maryland, and thereafter for an extended period of time up to 5 years. An out-of-State institution that has received a certificate of approval to operate in Maryland may not add a new program until it has complied with §D(3) of this regulation. Procedures to Apply for Initial Approval to Operate in Maryland. To receive initial approval to operate in Maryland, the chief executive officer shall submit to the Secretary, on the forms provided, a written application for authorization to offer one or more postsecondary educational courses or programs in a specific location in Maryland. The completed application and all supportive documentation shall be provided at least 5 months before the out-of-State institution proposes to begin operation. An institution shall submit a non-refundable application fee in the amount of: $7,500 for up to two degree programs; and An additional $850 for each degree program over two programs. The application to offer degree and certificate programs shall include: Identification of the institution; The specific address, if known, or the geographical location of proposed operation, including, at a minimum, the county or city, with the specific address to be provided when known; Proposed start date and term of operation; Identification of authorized representatives; Board of trustees resolution of financial solvency; Except as provided in §D(4)(a) of this regulation, certificate of incorporation as a foreign (out-of State) corporation from the Department of Assessments and Taxation; Institutional accreditation status with an organization recognized as an accrediting agency by the U.S. Department of Education to grant institutional accreditation; Copies of awards to be granted; Programmatic data, including the degree or certificate, the curriculum, and proposed schedule of classes; A detailed and accurate description of the proposed programs and operations including: All degree and certificate programs to be offered by the institution; A description of the objectives of each degree and certificate program including the mode of instructional delivery; A description of the student population to be served; and A description of a teach-out plan allowing enrolled students to complete their program if the institution decides to cease operation in Maryland; Evidence of a critical and compelling regional or Statewide need and demand for specific academic degree programs in a specific geographic region of the State in accordance with Regulation .06 of this chapter; Data projecting market demand and the availability of openings in the job market to be served by each new program; Qualification of instructors and staff; Library resources; Certificate of compliance with fire and safety codes; Copies of advertisements; and If applicable, a letter of sponsorship from the employer or institution that is requesting the out-of-State institution to offer a program in Maryland. Certificate of Incorporation. A public institution is not required to submit a certificate of incorporation as a foreign corporation. A business entity affiliated with a public institution is required to submit a certificate of incorporation. The institution may apply to offer courses only if the full complement of courses comprise not more than 3 courses or 9 credits of a degree or certificate program. The application to offer courses shall include: Identification of the institution; The specific address, if known, or the geographic location of proposed operation, including, at a minimum, the county or city, with the specific address to be provided when known; Proposed start date and term of operation; Certificate of incorporation as a foreign (out-of-State) corporation, if required by State law; Institutional accreditation status with an organization recognized as an accrediting agency by the U.S. Department of Education to grant institutional accreditation; Programmatic data, including the degree or certificate, the curriculum, and the proposed schedule of classes; A description of the objectives of each course including the mode of instructional delivery; A description of the student population to be served; Evidence of a critical and compelling regional or Statewide need and demand for specific academic degree programs in a specific geographic region of the State in accordance with Regulation .06 of this chapter; Qualification of instructors and staff; Certificate of compliance with fire and safety codes; and If applicable, a letter of sponsorship from the employer or institution that is requesting the institution to offer a course in Maryland. Application to Operate in Maryland as a Closed Site Out-of-State Institution. An application to offer degree and certificate programs as a closed-site institution shall include all of the application requirements specified in §D(3) of this regulation. An application to offer not more than 3 courses or 9 credits of a degree or certificate program as a closed-site institution shall include all of the application requirements specified in §D(5) of this regulation. In addition, the institution shall supply a memorandum of understanding from the Maryland entity sponsoring the institution. The memorandum of understanding shall specify that the institution is operating as a closed-site and that courses are offered solely for its own employees. Application Review, Notice, and Period for Comments and Objections. Upon submission by an out-of-State institution of the application and documentation required by §D of this regulation, the Secretary shall review the application and documentation to ensure that the institution has satisfied the requirements of this chapter. Upon receipt of a complete application and documentation, the Secretary shall inform all institutions of higher education and segments of higher education of the proposal. A 30-day period for comments and objections shall be allowed. Any institution of higher education or segment of higher education desiring to raise an objection shall do so during the 30-day comment period. The Secretary shall consider all comments and objections received before making the final decision. The Secretary may not consider an objection raised after the 30-day period. The Secretary may ask the applicant institution for additional information in response to comments and objections received. The 30-day period for comments and objections does not apply to a closed-site institution. Secretary's Grant of Approval to Operate in Maryland. The Secretary shall grant the certificate of approval to the out-of-State institution to operate in Maryland on such conditions as may be considered appropriate, if the Secretary is satisfied that: The application and documentation submitted by the institution is in compliance with this chapter and the institution is in compliance with this chapter; The institution is fully accredited by an organization recognized as an accrediting agency by the U.S. Department of Education to grant institutional accreditation; and The programs to be offered in Maryland are similar to programs offered at its main or primary campus, unless the Secretary finds that the institution has provided sufficient justification otherwise. The Secretary shall notify the chief executive officer of the institution in writing of the official action taken by the Secretary. Secretary's Denial of Approval to Operate in Maryland. If the Secretary is not satisfied that an out-of-State institution is in compliance with this chapter, the Secretary shall issue a notice of deficiencies and deny approval to the institution. Within 20 days of receipt of a notice of deficiencies, the institution denied approval to operate in Maryland may request a hearing before the Commission as provided in Education Article, §11-202(f), Annotated Code of Maryland. The hearing before the Commission shall be conducted in accordance with the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and COMAR 13B.04.01. If the institution requests a hearing, the Commission may refer the hearing to the Office of Administrative Hearings. After the hearing in §G(3) of this regulation, the Commission may take the following action: Grant approval to operate; Deny approval to operate; or Remand the case to the Secretary for further action as directed by the Commission. If the institution does not file a timely request for a hearing on the notice of deficiencies, the Secretary's decision becomes final. Completed Application and Documentation. An application is complete as of the day on which an out-of-State institution submits documentation satisfactory to the Secretary that the institution has completed the application process. If the Secretary has neither issued a certificate of approval nor a written notice of deficiency within 6 months of the completed application, the institution may request a hearing before the Commission to determine whether a certificate of approval shall be issued. The request shall be made within 20 days of the expiration of the 6-month period. The hearing shall be conducted in accordance with the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and COMAR 13B.04.01. Judicial Review. An out-of-State institution that is denied a certificate of approval by the Commission after a hearing granted under §G or H of this regulation has the right to judicial review provided by State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland. The decision of the Commission is presumed correct and the institution has the burden of proving otherwise. The Commission shall be a party to the proceeding. An out-of-state SARA institution that does not operate in Maryland may provide SARA distance education in the State. An out-of-State SARA institution may not operate in Maryland unless it first obtains a certificate of approval from the Commission pursuant to Education Article, §11-202, Annotated Code of Maryland. An out-of-State SARA institution that operates in Maryland may not offer a program in Maryland unless the program is offered in compliance with Education Article, §11-206, Annotated Code of Maryland. An out-of-State SARA institution is subject to all generally applicable laws and regulations of Maryland, as may be amended by the General Assembly, including but not limited to the Maryland Consumer Protection Act. An out-of-State institution seeking to continue to operate in Maryland at a previously approved location for an additional year may not operate in Maryland, do business, recruit or enroll students, begin instruction, or promote advanced publicity through advertisements, announcements, or other similar media on proposed courses or programs to be offered in Maryland until it obtains approval from the Secretary in accordance with this chapter. Procedures to Apply for Approval to Continue to Operate in Maryland at a Previously Approved Location. To receive approval to continue to operate in Maryland at a previously approved location for an additional year, whether to offer previously approved courses and programs or to offer new courses and programs, the chief executive officer shall submit to the Secretary on the forms provided a written application for authorization to continue to operate in Maryland. With the exception of an out-of-State institution that is located at and part of a regional higher education center, an out-of-State institution shall submit a nonrefundable application fee in the amount of: $7,500 for up to two degree programs; and An additional $850 for each degree program over two programs. The completed application and all supportive documentation for continued operation shall be provided at least 5 months before any existing approval expires. The application shall include: Identification of the institution; Specific mailing address of current operation; Proposed date of continued operation; Identification of authorized representatives; Board of trustees resolution of financial solvency; Certificate of incorporation as a foreign (out-of-State) corporation, if required by State law; Institutional accreditation status with an organization recognized as an accrediting agency by the U.S. Department of Education to grant institutional accreditation; Copies of awards; Programmatic data, including the degree or certificate, the curriculum, and proposed schedule of classes; A detailed and accurate description of any proposed new programs and operations including: The degree and certificate programs to be offered by the institution for these programs; A description of the objectives of each new degree and certificate program including the mode of instructional delivery; A description of the student population to be served; and A description of a teach-out plan allowing enrolled students to complete their program if the institution decides to cease operation in Maryland; Evidence of a critical and compelling regional or Statewide need and demand for the specific new academic degree programs in a specific geographical region of the State in accordance with Regulation .06 of this chapter; Data projecting market demand and the availability of openings in the job market to be served by each new program; Qualification of instructors and staff; Library resources; Certificate of compliance with fire and safety codes; Copies of advertisements; and Enrollment data as prescribed by the Secretary. Procedures to Apply for Approval for Extended Operation in Maryland. During or after the fifth year of operation in Maryland and during any subsequent renewal cycle, an out-of-State institution may apply for approval to operate in Maryland for an extended period of time up to 5 years. To receive approval to continue to operate in Maryland at a previously approved location for an extended period, whether to offer previously approved courses and programs or to offer new courses and programs, the chief executive officer shall submit to the Secretary on the forms provided a written application for authorization to continue to operate in Maryland. The completed application and all supportive documentation for continued operation shall be provided at least 5 months before any existing approval expires. The application shall include: Identification of the institution; Specific geographical location of current operation; Proposed date of continued operation; Identification of authorized representatives; Board of trustees resolution of financial solvency; Certificate of incorporation as a foreign (out-of-State) corporation; Institutional accreditation status with an organization recognized as an accrediting agency by the U.S. Department of Education to grant institutional accreditation; Copies of awards; Programmatic data, including the degree or certificate, the curriculum, and proposed schedule of classes; Qualification of instructors and staff; Library resources; Certificate of compliance with fire and safety codes; Copies of advertisements; and Enrollment data as prescribed by the Secretary. Application Review, Notice, and Period for Comments and Objections. Upon submission by an out-of-State institution of the application and documentation required by §B or C of this regulation, the Secretary shall review the application for renewal and documentation to ensure that the institution continues to satisfy the requirements of this chapter. Upon receipt of a complete application and documentation, the Secretary shall inform all institutions of higher education and segments of higher education of the proposal. A 30-day period for comments and objections shall be allowed. Any institution of higher education or segment desiring to raise an objection shall do so during the 30-day comment period. The Secretary shall consider all comments and objections received before making the final decision. The Secretary may not consider an objection raised after the 30-day period. The Secretary may ask the applicant institution for additional information in response to comments and objections received. The 30-day period for comments and objections does not apply to a closed-site institution. Secretary's Grant of Approval to Operate in Maryland. The Secretary shall renew the out-of-State institution's approval to operate in Maryland at a previously approved location on such conditions as may be considered appropriate, if the Secretary is satisfied that: The application for renewal and documentation submitted by the institution is in compliance with this chapter and the institution is in continued compliance with this chapter; The institution remains fully accredited by an organization recognized as an accrediting agency by the United States Department of Education; and The programs to be offered in Maryland remain similar to programs offered at its main or primary campus. The Secretary shall notify the chief executive officer of the institution in writing of the Secretary's decision. Secretary's Denial of Approval to Continue to Operate in Maryland. If the Secretary is not satisfied that an out-of-State institution is in continued compliance with this chapter, the Secretary shall issue a notice of deficiencies and deny renewal of the approval to the institution. Within 20 days of receipt of a notice of deficiencies, the institution denied renewal of the approval to operate in Maryland may request a hearing before the Commission as provided in Education Article, §11-202(f), Annotated Code of Maryland. The hearing before the Commission shall be conducted in accordance with the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and COMAR 13B.04.01. If the institution requests a hearing, the Commission may refer the hearing to the Office of Administrative Hearings. After the hearing in §F(3) of this regulation, the Commission may take the following action: Grant the renewal of approval to operate; Deny the renewal of approval to operate; or Remand the case to the Secretary for further action as directed by the Commission. If the institution does not file a timely request for a hearing on the notice of deficiencies, the Secretary's decision becomes final. Completed Application and Documentation. An application is complete as of the day on which an out-of-State institution submits documentation satisfactory to the Secretary that it has completed the application process. If the Secretary has neither issued a certificate of approval nor a written notice of deficiency within 6 months of the completed application, the institution may request a hearing before the Commission to determine whether a certificate of approval shall be issued. The request shall be made within 20 days of the expiration of the 6-month period. The hearing shall be conducted in accordance with the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and COMAR 13B.04.01. Judicial Review. An out-of-State institution that is denied a renewal of its certificate of approval by the Commission after a hearing granted under §F or G of this regulation has the right to judicial review as provided by State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland. The decision of the Commission is presumed correct and the institution has the burden of proving otherwise. The Commission shall be a party to the proceeding. Further Requests by Institution. After an out-of-State institution has received extended operational approval, the Commission shall apply the standards set forth in Regulation .06 of this chapter to a request by the institution for approval to: Offer courses not previously approved; Offer a program not previously approved; or Operate in Maryland at a site not previously approved. If the approval is granted, the approval will be in effect for the duration of the extended approval period. If, on the basis of available documentation, the Secretary believes that an out-of-State institution does not meet the conditions or standards on which its certificate of approval, or any other approval issued by the Commission or Secretary, was based, the Secretary shall give the institution written notice specifying the deficiencies believed to exist. The written notice shall specify the alleged deficiencies, direct the out-of-State institution to correct them within a period of not less than 30 days, and specify the appropriate sanctions if the institution fails to correct the deficiencies. Hearing. If the out-of-State institution requests a hearing on the notice of deficiencies, 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 is received by the Commission within 20 days of the institution's receipt of the notice of deficiencies. The hearing shall be conducted in accordance with the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and 13B.04.01. Subject to §F of this regulation, action on the notice of deficiencies shall be stayed until a determination 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 out-of-State institution or suspend or revoke the institution's certificate of approval or any other approval issued by the Commission or Secretary. In imposing any sanctions under this regulation, the Commission shall consider: The seriousness of the deficiency; The harm caused by the deficiency; The good faith of the out-of-State institution and any corrective actions taken; Any history of previous deficiencies; and Other pertinent circumstances. Judicial Review. An out-of-State institution that is aggrieved by an order of the Secretary or Commission has the right to judicial review provided by State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland. The decision of the Commission is presumed correct and the institution has the burden of proving otherwise. The Commission shall be a party to the proceeding. Judicial Remedies. The Secretary may seek an injunction or other judicial remedy at any time following written notice of the deficiencies and before the Commission's final decision, if the Secretary determines that the public interest requires enforcement of the provisions of Education Article, Title 11, Annotated Code of Maryland, or any applicable regulations. If a court grants relief before a hearing that was requested on a timely basis, the Commission shall schedule the hearing in regard to the notice of deficiencies within 2 weeks of the issuance of the court's order, unless the out-of-State institution requests a delay. The hearing shall be conducted in accordance with the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland. An out-of-State institution shall maintain continuous full accreditation by an organization recognized as an accrediting agency by the U.S. Department of Education to grant institutional accreditation. Candidacy status and official probationary status may not be considered as a valid substitution for full institutional accreditation. Proposed specialized fields of study, maintaining professional accreditation by an association recognized by the United States Department of Education shall meet the same standards applicable to the resident campus program. Out-of-State institutions shall present written evidence of compliance with institutional and professional accrediting associations' policies related to off-campus educational activities. Institutional academic policies for admission, graduation, and the awarding of academic credit shall be consistent with policies maintained by the parent institution for resident students and shall be consistent with the State's minimum requirements for colleges operating in Maryland as provided in COMAR 13B.02.02.15, .16, and .19. A credit hour is an amount of student work defined by an institution that is consistent with commonly accepted practice in postsecondary education and that reasonably approximates not less than: One hour of classroom or direct faculty instruction and a minimum of 2 hour of out-of-class student work each week for approximately 15 weeks for one semester or trimester hour of credit, or 10 to 12 weeks for one quarter hour of credit, or the equivalent amount of work over a different period of time; or At least an equivalent amount of work as required in §A(1)(a) of this definition for other academic activities as established by the institution, including laboratory work, internships, practica, studio work and other academic work leading to the award of credit hours; and In determining the amount of work associated with a credit hour, to take into account a variety of delivery methods, measurements of student work, academic calendars, disciplines, and degree levels. An out-of-State institution awarding academic credit for practica, clinical experiences, internships, and cooperative work experiences shall ensure that the credit is being awarded for actual academic learning. A student shall demonstrate competence through testing or through other appropriate evaluative measures. A degree-granting institution offering baccalaureate and higher degrees may not award more than 45 semester hours of the minimum 120 hours required for the baccalaureate degree or a proportional amount of a greater number of hours through credit offered in this manner. An associate degree-granting institution may not award more than 30 semester hours of the minimum 60 hours required for the associate degree or a proportional amount of a greater number of hours through credit offered in this manner. An out-of-State institution may not award more than 1/2 the number of credits required for graduation, regardless of the method of assessing the credit, for credit for prior learning or experience. An out-of-State institution may grant credit for prior learning or experience based upon successful completion of an acceptable standardized examination such as the College-Level Examination Program. An out-of-State institution may not award more than: 30 semester hours of the minimum 120 hours required for the baccalaureate degree or a proportional amount of a greater number of hours; or 15 semester hours of the minimum 60 semester hours required for the associate degree or a proportional amount of a greater number of hours, for credit for prior learning, granted based on examinations developed by the institution and on portfolio assessments. An out-of-State institution shall have on file copies of whatever examinations, test results, portfolios, and portfolio assessment reviews that are used for the award of credit for prior learning. Faculty of the institution in the appropriate discipline shall conduct the assessment. The institution shall maintain the results of the assessments in the student's academic file. The out-of-State institution shall provide for an on-site administrative staff responsible for the overall administrative operation of educational activities, including counseling, advising, testing, orientation, financial aid services, and maintenance of academic records. In addition to being responsible for the administration of the policies and procedures established by the parent institution, the designated administrators are responsible for meeting the expectations set forth in this chapter. The duties, responsibilities, and size of the staff shall be adequate to the purpose and size of educational activities offered. The faculty employed by the out-of-State institution shall be competent on the basis of their formal education and professional experience to enable them, through effective instruction and other activities, to achieve the educational objectives of the institution. A faculty member shall have completed formal studies at an institution that is accredited by an organization recognized as an accrediting agency by the U.S. Department of Education to grant institutional accreditation or internationally recognized institution at least through the master's or first professional degree, or its equivalent, in the field in which the faculty member teaches. “Equivalent” means documented outstanding achievement in the arts, music, letters, science, research, business or industry, or public service. A faculty member shall demonstrate successful experience and provide continuing evidence of keeping abreast of developments in the faculty member's field. At least 1/3 of the classes offered shall be taught by full-time faculty of the parent institution. Faculty members who engage in instruction shall be able to communicate effectively in both written and spoken English. Institutional Waiver of Definition of Full-Time Faculty. An out-of-State institution may apply to the Commission for a waiver from the definition of “full-time faculty member” found in Regulation .03B of this chapter. In order to obtain a waiver, an institution shall demonstrate that the unique role, scope, and mission of the institution require a waiver in order for the institution to operate in Maryland. After making the demonstration required in §E(2) of this regulation, the institution shall: Designate by name the faculty members whose primary responsibility is instruction, scholarship, research, or service who will perform the duties normally required of full-time faculty; Document that designated faculty members substantially participate in the development or implementation of one or more of the following activities at the institution requesting the waiver: Academic programs, Professional programs, Research programs, Service programs, Admission or admission policies, Academic advising, Faculty appointments, or Institutional governance; Document that the designated faculty shall, as a group, participate in all of the activities listed in §D(3)(b) of this regulation; and Document that the designated faculty shall perform the requirements of full-time faculty under §C of this regulation. Documentation includes, but is not limited to the following: Minutes of meetings; Contractual obligations; or Job descriptions. The request for a waiver shall be placed on the agenda of a regularly scheduled public meeting of the Education Policy Committee. The Chairman of the Education Policy Committee shall present the Committee's finding to the Commission at its next regularly scheduled public meeting. The decision of the Commission is considered final and not subject to further review. If the Commission is satisfied that an institution meets the requirements of this section, it may grant a waiver to the institution on such terms and conditions, including time limitations, as the Commission considers appropriate. An out-of-State institution offering programs or courses, or both, in Maryland, shall provide adequate and appropriate library resources within State boundaries and within reasonable distance of the instructional site. Usage statistics shall be kept to determine to what extent these resources are available and accessible. Waiver. In extraordinary circumstances, an out-of-State institution may request a waiver of the requirements of §A of this regulation. The request for a waiver shall be placed on the agenda of a regularly scheduled public meeting of the Education Policy Committee. The Chairman of the Education Policy Committee shall present the Committee's findings to the Commission at its next regularly scheduled public meeting. The decision of the Commission is considered final and not subject to further review. A waiver may be granted if the waiver is justified by: The specialized or technical nature of the institution's curriculum; or An executed contract or contracts with another library or libraries ensuring students adequate access to another appropriate collection either through location or through information technology. In determining the adequacy of the library collection of an existing institution, the Secretary shall consider relevant guidelines of professional associations and library associations. Student services and activities shall realistically reflect the stated objectives, purposes, and philosophy of the out-of-State institution. The needs and welfare of students shall be of primary concern if there is to be motivation toward worthwhile academic achievement. Student policies shall encourage associations among students, faculty, and the administration, and shall provide opportunities for the development of individual potential. An out-of-State institution shall ensure that all students have access to a well developed program of counseling, testing, advisement, orientation, financial aid, career development, and placement. The institution may determine the specific organization of services, as well as the resources and staffing provided, as long as provision for the services noted in this section are made. Student activities that complement the instructional program are particularly encouraged. An out-of-State institution should establish student government organizations that are representative and provide a responsible forum for student views as well as a vehicle for student input into institutional decision making. While participation in varsity athletics, student organizations, and student governance is a valuable adjunct to the instructional program, these activities are not part of the instructional program itself, and the institution may not award academic credit for participation in these activities. An out-of-State institution shall keep complete and accurate records of admission, enrollment, grades, scholarships, transfers of credits, transcripts, graduates, and other essentials in accordance with standard practice. An out-of-State institution shall: Maintain student records in accordance with acceptable national standards regarding institutions of higher education; Ensure the physical security and confidentiality of student records, and store physical records in fire-proof cabinets; Have adequate security to prevent loss of records maintained in electronic systems; and Have a document security plan appropriate to its record-keeping system. An out-of-State institution shall develop a statement of the rights, privileges, and responsibilities of students, and make this statement available to students through the catalog, student handbook, or other appropriate means. An out-of-State institution shall adhere to published student grievance procedures which assure a fair and timely review of student complaints. Because the effective operation of an institution depends largely upon the physical atmosphere of the surroundings, the cleanliness, state of repair, and attractive appearance of the out-of-State institution's grounds and buildings shall provide an adequate and effective educational environment. An out-of-State institution shall provide safe, accessible, functional, and appropriately maintained facilities. Facilities shall meet applicable federal, State, and local fire, safety, and health standards. An out-of-State institution shall have a schedule for cleaning, repair, and maintenance of buildings and grounds. An out-of-State institution shall appropriately assign specific responsibilities for care of grounds, campus security, traffic safety and control, fire protection, utilities, and plant upkeep. An out-of-State institution shall appropriately assign specific responsibilities for storage, handling, and disposal of dangerous and toxic materials. An out-of-State institution shall provide laboratory and classroom space appropriate to its curriculum. An out-of-State institution shall provide office space and conference space to full-time and part-time faculty and administrators. General Requirements. An out-of-State institution shall publish in print or electronically on a regular and continuing basis an official catalog or other official publication that describes the institution and its program and course offerings, relative to its operations in Maryland, accurately and completely. The catalog is the official document of the institution. The catalog and other publications of the institution shall present accurate, up-to-date information about the administration and operation of the institution. The institution shall make the catalog available to all students before the beginning of the period of instruction covered by the catalog and during that period of instruction. An institution shall ensure that all publications containing information normally included in the catalog are consistent with the catalog. The catalog or other appropriate publications shall contain, at a minimum, the following information: The date of publication; The current academic calendar; A comprehensive table of contents and appropriate indices; A statement of the origin and the objectives of the institution; The roster of the official governing board; The entrance requirements, academic regulations, support services, graduation requirements, and general procedures; The financial policies of the institution, including all costs, schedule of payments, and refunds of all types of charges for academic and other services; A detailed description of all types of financial assistance available from the institution, including private, State, and federal programs; A description of each course and each program and its prerequisites, if applicable, to be offered during the year or years for which the catalog is issued; A clear indication if a particular course is not offered regularly; A statement of student rights and responsibilities, including: A student grievance procedure; Constraints on students, such as automobiles, parking, and parietal rules, including rules for the maintenance of order on campus and in other facilities under the institution's control; and A contact office for the resolution of complaints; and A statement of nondiscrimination, student privacy legislation, and provisions for barrier-free access to the handicapped in accordance with State and federal regulations, if applicable. Statements and policies contained in official publications shall be in accordance with State and federal law. An out-of-State institution operating in Maryland and delivering instruction in Maryland by distance education shall provide evidence to the Secretary of compliance with the C-RAC guidelines. The governing body of a regional higher education center may submit to the Commission a request for proposals for the offering of a baccalaureate degree program at a center in accordance with §C of this regulation. A board of trustees of a community college may submit to the Commission a request for proposals for the offering of a baccalaureate degree program not currently offered in the region in accordance with §C of this regulation. Before submitting a request for proposals to the Commission, a regional higher education center or a community college shall: Seek input from students, workforce development councils, and other civic, educational, community, and business groups when assessing the educational needs of the region; Determine the regional or Statewide need for graduates of each program for which a request for proposals is submitted; Identify the enrollment patterns, special characteristics of students, and other unique circumstances that would require a program to be offered in a particular manner; and Determine that the degree program is necessary to meet the academic and economic development needs of the region or State. Upon receiving a request for proposals for the offering of a baccalaureate degree program from the governing body of a regional higher education center or board of trustees of a community college, the Commission shall circulate that request to the public and nonpublic senior higher education institutions in the State within 30 days of having received the request. In consultation with the Commission, the governing body of the regional higher education center or board of trustees of the community college making the request may accept or reject a proposal for offering a baccalaureate degree program submitted by a public or nonpublic senior higher education institution in accordance with §D of this regulation. If none of the public and nonpublic senior higher education institutions in the State submits an acceptable response to the request for proposals circulated by the Commission within a 30-day period, the governing body of the regional higher education center or board of trustees of the community college making the request may submit the request for proposals to one or more out-of-State senior higher education institutions. Before offering the degree program that is the subject of the request for proposals, an out-of-State senior higher education institution shall seek the approval of the Commission under Education Article, Title 11, Annotated Code of Maryland, and the procedures in Regulation .04 of this chapter. Education Article, §§10-212, 11-105, 11-201—11-207, and 16-108, Annotated Code of Maryland Effective date: July 27, 1979 (6:15 Md. R. 1285) Chapter recodified from COMAR 13.50.02 to 13B.02.01 Regulations .01—.05 repealed and new Regulations .01—.21 adopted effective January 12, 1998 (25:1 Md. R. 16) Regulation .02B amended effective June 23, 2003 (30:12 Md. R. 790); December 22, 2003 (30:25 Md. R. 1850); December 31, 2007 (34:26 Md. R. 2263) Regulation .21A amended effective December 22, 2003 (30:25 Md. R. 1850) Regulation .22 adopted effective December 31, 2007 (34:26 Md. R. 2263) Chapter revised effective April 20, 2009 (36:8 Md. R. 597) Regulation .02E adopted effective December 21, 2015 (42:25 Md. R. 1545) Regulation .03B amended effective November 24, 2014 (41:23 Md. R. 1375); December 21, 2015 (42:25 Md. R. 1545); May 7, 2018 (45:9 Md. R. 462) Regulation .04 amended as an emergency provision effective July 1, 2011 (38:14 Md. R. 788); amended permanently effective October 17, 2011 (38:21 Md. R. 1279) Regulation .04-1 adopted effective November 24, 2014 (41:23 Md. R. 1375) Regulation .04-1 amended effective December 21, 2015 (42:25 Md. R. 1545) Regulation .05B amended as an emergency provision effective July 1, 2011 (38:14 Md. R. 788); amended permanently effective October 17, 2011 (38:21 Md. R. 1279) Regulation .07D amended as an emergency provision effective July 1, 2011 (38:14 Md. R. 788); amended permanently effective October 17, 2011 (38:21 Md. R. 1279) Regulation .07F amended effective January 19, 2026 (53:1 Md. R. 24) Regulation .07-1 adopted effective December 21, 2015 (42:25 Md. R. 1545) Regulation .08B amended as an emergency provision effective July 1, 2011 (38:14 Md. R. 788); amended permanently effective October 17, 2011 (38:21 Md. R. 1279) Regulation .12 amended effective October 13, 2025 (52:20 Md. R. 1002) Regulation .21 amended effective May 7, 2018 (45:9 Md. R. 462) This chapter implements the provisions of Education Article, §§11-201—11-204, Annotated Code of Maryland. The purpose of this chapter is to require that in-State institutions: Maintain intellectual and academic integrity; Have adequate financial resources and be operated in accordance with acceptable principles of sound financial management; Have a clearly defined mission, with goals and objectives consistent with the purposes of higher education; Consistently maintain a faculty, a program of instruction, physical facilities, and resources adequate to the: Satisfactory realization of its mission and goals, and Attainment of educational quality; Admit, retain, and graduate only those students who meet quantitatively and qualitatively creditable standards of achievement appropriate to the institution; Issue announcements that accurately portray to the public the purposes and practices of the institution; Provide appropriate student services; and Operate under an effective administrative structure. An in-State institution shall maintain a broad and firm foundation of general education supportive of and complementary to specialized areas of knowledge. The depth and breadth of the general education component are of paramount significance in providing students with the intellectual tools necessary to deal effectively with personal, social, and political issues. This chapter is to be interpreted to encourage and permit innovations aimed at improving the effectiveness of higher education through the use of new technologies, techniques, and modes of delivery that are consistent with quality education. The requirements in this chapter apply to all in-State institutions that require or seek a certificate of approval to operate, or continue to operate, and grant formal awards within the State. Those private in-State institutions that are exempt under charters granted by the General Assembly, as provided in Education Article, §11-202(c), Annotated Code of Maryland, are covered under §D of this regulation and Regulations .05, .10, .11, and .12 of this chapter. The requirements in this chapter also apply to existing in-State institutions that are seeking approval to offer a new degree level in Maryland. The approval granted to an in-State institution to operate and award degrees applies only to the formal awards, instructional programs, and locations designated in the certificate of approval and is not applicable to off-campus programs that are separately authorized by the Commission. Programs to be reviewed under this authority include: New certificates or degree levels; Off-campus program offerings; and Program suspensions or discontinuances. In this chapter, the following terms have the meanings indicated. Terms Defined. Academic Credit. “Academic credit” means the certification of a student's successful completion of a unit of a course of study leading to a formal award granted by an in-State institution approved to offer a collegiate degree, such as an associate or higher degree. “Academic credit” does not include credit that may be awarded for remedial education. “Associate degree-granting institution” means an institution that awards a degree at the associate level in two or more instructional programs and does not award a higher degree. “Certificate of advanced study” means a certificate awarded for successful completion of at least 30 semester credit hours of graduate study beyond the master's degree. Classroom Instruction. “Classroom instruction” means live instruction for academic credit that allows immediate interaction between student and instructor, such as lectures, laboratory instruction, seminars, colloquia, interactive instructional television, and, if immediate live feedback is available from an instructor, independent study and computer-aided instruction. “Classroom instruction” does not include instruction through correspondence, non-interactive learning, credit for prior learning, cooperative education activities, practica, internships, externships, apprenticeships, portfolio review, departmental examinations, or challenge examinations. “Closed site” means a business, organization, educational entity, or government site that offers courses solely for its own employees. “Commission” means the Maryland Higher Education Commission. “C-RAC guidelines” means the Interregional Guidelines for the Evaluation of Distance Education adopted by the Council of Regional Accrediting Commissions. “Credit for prior learning” means credit granted toward the award of a certificate or degree for experiential learning that can be shown through various means of assessment to be the equivalent of learning gained through formal collegiate instruction. “Degree-granting institution” means an associate degree-granting institution and an institution granting baccalaureate or higher degrees. “Distance education” means education that uses one or more of the following technologies to deliver instruction to students who are separated from the instructor, and to support regular and substantive interaction between the students and the instructor synchronously or asynchronously: Internet; One-way and two-way transmissions through open broadcasts, closed circuit, cable, microwave, broadband lines, fiber optics, satellite or wireless communication devices; Audio conferencing; and Video cassette, DVDs, and CD-ROMs, if the cassette, DVDs, and CD-ROMs are used in a course in conjunction with a technology listed in §B(9)(a)—(c) of this regulation. “Formal award” means a certificate or degree that is conferred by the faculty and ratified by the in-State institution's governing board in recognition of successful completion of the requirements of a program. “FTE” means full-time equivalent. “Full-time faculty member” means an employee: Whose primary professional responsibility is instruction, research, scholarship, or service; Who performs those functions normally expected of a full-time faculty member at an institution of higher education, including curriculum development, student advising, and institutional service; Who is employed on an annual or renewable contract of at least 9 months length that stipulates an annual salary; and Who is not employed full-time by another employer. “In-State institution” means a degree-granting institution whose primary campus is in Maryland and whose authority to grant degrees is conferred by Maryland. “Institution granting baccalaureate or higher degrees” means an institution that awards a degree at the baccalaureate or graduate level, including: 4-year colleges and universities; and Separately incorporated graduate institutions and centers. “Lower division certificate” means a certificate awarded for successful completion of at least 12 semester credit hours at the freshman or sophomore levels, or both. “Major field of study” means that portion of the course work of a program related directly to the academic discipline in which the student is specializing. “New degree” means a degree level not specified in an in-State institution's certificate of approval or authorized by its charter such as an associate level, bachelor's level, master's level, doctoral level, or first professional level. “Non-accredited in-State institution” is an in-State institution that is not accredited by an organization recognized as an accrediting agency by the U.S. Department of Education to grant institutional accreditation. “Off-campus program” means: More than 1/3 of the required course work in a major field of study leading to an undergraduate or graduate degree or graduate certificate offered by an approved or chartered in-State institution at a location other than the principal location of the sponsoring institution during any 12-month period; or Course work offered at a location other than the principal location of an approved or chartered in-State institution that is advertised as leading to an undergraduate or graduate degree or to a graduate certificate at that location, regardless of the portion of a program offered at that location. “Off-campus site” means a facility other than the main campus of an approved or chartered in-State institution that: Is not a closed site but is open to the general public; Offers three or more off-campus programs by that institution; and Does not offer substantially all the instruction necessary to offer an undergraduate degree. “Out-of-State institution” means a degree-granting institution whose primary campus is outside of Maryland and whose authority to grant degrees is conferred by another state. “Post-baccalaureate certificate” means a certificate awarded for successful completion of at least 12 semester credit hours at the graduate or upper divisional level, the majority of which are at the master's or specialized postgraduate level. “Post-master's certificate” means a certificate awarded for successful completion of at least 12 semester credit hours of graduate study beyond the master's degree. “Program” means a structured and coherent course of study with clearly defined objectives and intended student learning outcomes, requiring the completion of a specified number of course credits from among a prescribed group of courses, which leads to the award of a certificate or degree. “Regional higher education center” means a higher education facility in the State that: Includes participation by two or more institutions of higher education in the State; Offers an array of program offerings; Offers multiple degree levels; and Is either affiliated with an institution of higher education or is established by statute. “Remedial education” means a course or series of courses or services, or both, designed to remedy deficiencies in preparation for college-level work, especially in reading, writing, mathematics, and study skills that cannot be applied to credit for a degree or certificate. “Secretary” means the Secretary of Higher Education. “Segment of higher education” means: The University System of Maryland; Morgan State University; St. Mary's College of Maryland; The Maryland community colleges; The Maryland Independent College and University Association; and The Maryland Association of Private Colleges and Career Schools. “Separately incorporated graduate institution or center” means a public or private institution of higher education that: Is a separately incorporated entity not owned or operated by an approved college or university offering baccalaureate or higher degrees; Awards the master's, doctoral, or first professional degree in one or more academic disciplines, but does not award the baccalaureate degree; and Offers appropriate courses in support of the academic disciplines. “Upper division certificate” means a certificate awarded for successful completion of at least 12 semester credit hours at the junior or senior levels, or both. A person, firm, association, corporation, or other entity may not use the name “college”, “university”, “regional higher education center”, or word of similar import, in such manner as to connote the offering of a postsecondary educational course or program, unless that person, firm, association, or corporation has first met the criteria established by, and obtained a certificate of approval from, the Commission in the manner provided by law. Change of Institutional Designation. An in-State institution may not change its institutional designation without the approval of the Commission. An institution shall pay a fee of $250 with an application to the Commission to change its institutional designation. An in-State institution shall use a title appropriate to the programs and degrees it offers. Before the Commission may evaluate the readiness of an institution to operate or award new degrees in the State, including the offering of an instructional program or a degree level not previously subject to approval or recommendation or not authorized by an institution's charter, the institution shall present evidence demonstrating the educational need to establish operations, offer programs, and award the degrees in question in the State. The evidence to be considered shall include: Degree to be awarded; Area of specialization; Purpose or objective of the program or course of study to be offered; Specific academic content of the program or course of study; Quality of the proposed program in comparison to existing programs; Analysis of the market for the program; and State's equal educational opportunity obligations under State and federal law. In addition, the institution shall demonstrate that the proposed program, for which the institution is making application, meets a critical and compelling regional or Statewide need and is consistent with the Maryland State Plan for Postsecondary Education. The institution shall clearly state the demand and need for a program, for which the institution is making application, in terms of meeting present and future needs of the region and the State in general. Two kinds of needs may be identified: Societal needs, including the tradition of liberal arts education, which provides immeasurable returns to the State in part by instilling in citizens a capacity for advanced learning and individual and societal benefits regardless of workforce or market demand considerations; and Occupational needs relative to meeting workforce requirements or upgrading vocational or technical skills. Market Demand Data. The institution shall present data projecting market demand and the availability of openings in the job market to be served by the new program for which the institution is making application. The type of information submitted will vary, depending on the program, but may include workforce and employment projections prepared by the federal and State governments, professional associations, and trade associations. With the exception of programs in the liberal arts, recently collected, existing, or new market surveys shall be used, which clearly provide quantifiable and reliable data from prospective employers on the education and training needs and the anticipated number of vacancies expected over the next 5 years. In assessing demand for a new program for which the institution is making application, an institution shall also present data showing the current and projected supply of prospective graduates in that program area in the State and region. A prospective in-State institution may not operate, do business, recruit or enroll students, or begin instruction until it obtains approval from the Commission in accordance with this regulation. An existing associate degree-granting institution seeking approval to offer baccalaureate or higher degrees may not recruit or enroll students, or begin instruction for the proposed new degree program until it obtains approval from the Commission in accordance with this regulation. An application for institutional approval shall be submitted in two stages in a format prescribed by the Secretary and accompanied by additional information as required. A prospective in-State institution shall complete the two stages before the Commission may grant approval. A prospective in-State institution shall submit two separate non-refundable application [fee] fees for a Stage One Application and a Stage Two Application in the amount of: $7,500 for up to two degree programs; and An additional $850 for each degree program over two programs. Application for Approval at Stage One. A prospective in-State institution shall provide a Stage One application to the Secretary that includes the following items in a form and manner prescribed by the Secretary: Evidence of a critical and compelling regional or Statewide need and demand for specific academic degree programs in a specific geographic region of the State in accordance with Regulation .05 of this chapter; Evidence of adequate financial resources to establish and maintain an institution of higher education as provided in Regulation .07 of this chapter; Financial information in a form and manner prescribed by the Secretary to include: For an existing in-State institution, financial statements for each of the past 3 years or fewer, if the institution has operated for fewer than 3 years, or for an institution owned by a parent institution, organization, corporation, or other entity, separate financial statements for the institution and the parent institution, organization, corporation, or entity, and any intermediate subsidiaries; and For both existing and prospective in-State institutions, a 4-year projection of anticipated income and expenditures that demonstrates that tuition and other sources of income shall be sufficient to provide a sound financial operation and assure diversity of intellectual interest and resources; and A detailed and accurate description of the prospective in-State institution's proposed programs and operations to include: All degree and certificate programs to be offered by the institution; A description of the objectives of each degree and certificate program including the modes of instructional delivery; The specific address, if known, or the geographic location of the institution to include at a minimum the county or city, with the specific address to be provided when known; A description of the student population to be served; The curriculum for each program to be offered; and The nature of faculty and resources required to support the degree programs. Elements of the projection under §E(1)(c)(ii) of this regulation shall demonstrate that the institution: Possesses financial resources sufficient to realize its mission; Has a long-range financial plan including income sources in addition to tuition; and Plans its expenditures by budgeting for approved programs and courses in the State. Additional Information. If the Secretary determines that conditions warrant, the Secretary may require a prospective in-State institution to submit any additional information that the Secretary determines necessary to obtain a Stage One decision. The Secretary may require an independent market analysis performed by a firm or individual whose name appears on a prequalified list approved by the Secretary. Notice and Period for Comments and Objections. Upon receipt of a completed Stage One proposal, the Secretary shall inform all institutions of higher education and segments of higher education of the proposal. A 30-day period for comments and objections shall be allowed. Any institution of higher education or segment of higher education desiring to raise an objection shall do so during the 30-day comment period. The Secretary shall consider all comments and objections received prior to making the final Stage One decision. The Secretary may not consider an objection raised after the 30-day period. The Secretary may ask the prospective in-State institution for additional information in response to comments and objections received. Secretary's Decision. If the Secretary determines to approve the Stage One proposal, the Secretary shall make public the Secretary's final decision of approval on the Stage One proposal of the prospective in-State institution at a regularly scheduled meeting of the Commission. After the Secretary has approved the Stage One proposal, the Secretary shall notify the institution that it may proceed to Stage Two. If the Secretary is not satisfied that a prospective in-State institution has met the criteria set forth in §E of this regulation, the Secretary shall issue a notice of deficiencies and deny approval to the institution. Appeals. Within 20 days of receipt of a notice of deficiencies, the prospective in-State institution may request a hearing before the Commission as provided in Education Article, §11-202(f), Annotated Code of Maryland. Within 20 days of the public announcement of an approval, an institution of higher education or segment of higher education that timely objected under §G of this regulation may request a hearing before the Commission. If any party requests a hearing, the hearing before the Commission shall be conducted in accordance with the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and COMAR 13B.04.01. After the hearing provided for in §I(3) of this regulation, the Commission may grant approval for Stage One or deny approval for Stage One. If a timely request for a hearing is not filed, the Secretary's decision becomes final. Application for Approval at Stage Two. Upon notice from the Secretary that a prospective in-State institution has met the requirements of Stage One, the institution shall provide: Documentation required for Stage Two in a form and manner prescribed by the Secretary; Documentation indicating how the institution shall satisfy Regulations .13—.22 of this chapter; Evidence that the institution has sufficient insurance or self-insurance to maintain the solvency of the institution in case of loss by fire or other causes, to protect the institution in instances of personal or public liability, and to ensure continuity of the institution; If applicable, the required financial guarantee provided in accordance with Regulation .07 of this chapter; and A license to operate as a business entity in the State issued by the State Department of Assessments and Taxation or other appropriate State office. On-Site Visit. If the Secretary is satisfied that the documentation submitted by the prospective in-State institution satisfies the requirements of Stage Two, the Secretary shall appoint an evaluation team to conduct an on-site visit to the institution to ensure that the institution complies with the regulations of this chapter. The evaluation team shall be advisory to the Secretary. At least 1 member of the evaluation team shall be affiliated with an out-of-State institution. The appropriate segmental executive or segmental executive's designee shall serve ex-officio as an observer. During the on-site visit, the team shall conduct a detailed review of the institution's programs. The team shall prepare a report to the Secretary on the extent to which the institution is compliant with the regulations of this chapter. The institution shall be responsible for all financial obligations related to the on-site visit. Completed Application. An application is complete as of the day on which a prospective in-State institution submits documentation satisfactory to the Secretary that it has completed the application process, including completion of the on-site visit, and evidence of the financial guarantee as provided for in Regulation .07 of this chapter. If the Secretary has issued neither a certificate of approval nor a written notice of deficiencies within 6 months of the submission of the application, the institution may request a hearing before the Commission to determine whether a certificate of approval shall be issued. The request shall be made within 20 days of the expiration of the 6-month period. The hearing shall be conducted in accordance with the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and COMAR 13B.04.01. Secretary's Grant of Approval to Operate. If, based on the evaluation team report and other available information, the Secretary is satisfied that the prospective in-State institution is in compliance with this chapter and the minimum requirements of the chapter are met, the Secretary shall grant approval to operate. The Secretary shall issue a certificate of approval to operate and grant degrees on any condition and for a period of time as may be considered appropriate. The Secretary shall specify in the certificate of approval the degrees, formal awards, instructional programs, and location approved by the Secretary. Secretary's Denial of Approval to Operate. If the Secretary is not satisfied that a prospective in-State institution is in compliance with this chapter, the Secretary shall issue a notice of deficiencies and deny approval to the institution. Within 20 days of receipt of a notice of deficiencies, the institution denied approval may request a hearing before the Commission as provided in Education Article, §11-202(f), Annotated Code of Maryland. The hearing before the Commission shall be conducted in accordance with the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and COMAR 13B.04.01. If the institution requests a hearing, the Commission may refer the hearing to the Office of Administrative Hearings. After the hearing provided for in §M(3) of this regulation, the Commission may take the following action: Grant approval to operate; Deny approval to operate; or Remand the case to the Secretary for further action as directed by the Commission. If the institution does not file a timely request for a hearing on the notice of deficiencies, the Secretary's recommendation becomes the final action of the Commission. Judicial Review. A prospective in-State institution that is denied approval for Stage One or a certificate of approval by the Commission after a hearing granted under §I, K, or M of this regulation has the right to judicial review provided by State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland. The decision of the Commission is considered correct and the institution has the burden of proving otherwise. The Commission shall be a party to the proceeding. Post-Approval Review. The Secretary shall appoint an evaluation team to conduct an on-site visit to the in-State institution at the end of an institution's first instructional year to ensure that the institution is in compliance with the requirements of this chapter and any other condition upon which the Commission based the institution's approval to operate. The institution shall be responsible for all financial obligations related to the on-site visit. If, on the basis of available documentation, the Secretary has reason to believe that an institution is not in compliance with this chapter or the terms of the institution's approval, the Secretary may institute the procedures in Regulations .08 and .09 of this chapter. The post-approval evaluation team shall serve as the evaluation team for the purposes of Regulation .08 of this chapter. Before considering the initial approval of a public institution granting baccalaureate or higher degrees, the Commission shall receive assurance from the institution's governing board that it will support adequate funding for capital and operating costs of the institution. Private Institutions Granting Baccalaureate or Higher Degrees. For a private institution granting baccalaureate or higher degrees, the governing board, or the incorporators if the board has not yet been selected, shall provide a surety bond or letter of credit issued by a surety company or banking institution authorized to transact business in Maryland with a credit rating satisfactory to the Commission in an amount: Adequate to provide refunds for students for current tuition and fee liability and to cover the administrative cost associated with the instrument claim; but Not less than $500,000. The surety bond or letter of credit shall be in place for 6 years. If, during the term of the guarantee, the institution's current tuition and fee liability exceeds the level of the initial guarantee, the required level may be adjusted at the discretion of the Secretary. Private Associate Degree-Granting Institutions. For a private associate degree-granting institution, the governing board, or the incorporators if the board has not yet been selected, shall provide a surety bond or letter of credit issued by a surety company or banking institution authorized to transact business in Maryland with a credit rating satisfactory to the Commission in an amount: Adequate to provide refunds to students for current tuition and fee liability and to cover the administrative cost associated with the instrument claim; but Not less than $300,000. The surety bond or letter of credit shall be in place for 4 years. If, during the term of the guarantee, the institution's current tuition and fee liability exceeds the level of the initial guarantee, the required level may be adjusted at the discretion of the Secretary. If an institution intends to cease or ceases operations, the institution shall use the balance of the financial guarantee with the approval of the Secretary or the Secretary's designee in order to: Conduct an orderly closure of the institution; and Refund tuition monies owed to students. An approval granted by the Secretary or the Commission remains in effect in accordance with its terms unless the Secretary or the Commission has limited the approval for a certain period of time in the approval action. Upon the expiration of an approval issued by the Commission, the Secretary may renew or reaffirm an in-State institution's approval if the Secretary is satisfied that the institution is in continued compliance with relevant approval criteria. The Secretary shall monitor the continued compliance of approved in-State institutions in accordance with the requirements of this chapter. To maintain the authority to operate, for-profit in-State institutions, and non-accredited in-State institutions, both for-profit and non-profit, shall annually submit documents to the Commission relevant to the financial and academic health of the institution on a schedule and in a form specified by the Secretary that shall include, but are not limited to, the following: Audited financial statements for the past fiscal year; Financial ratios indicating the relationship of annual expenditures to annual revenues to include a primary reserve ratio, an equity ratio, and a net income ratio; Advertising budget as a percentage of total expenditures; Instructional expenses as a percentage of total expenditures; Reinvestment of gross revenues to support educational purposes and programs; Student recruitment and enrollment trends; An academic profile of entering students; Retention and graduation rates; Student loan default rates and agreements with private lenders; Faculty salaries and benefits; Faculty longevity and turnover data; Curriculum vitae of faculty and administrative staff members; Changes in accreditation status; and Litigation status including any adverse administrative actions. If the Secretary has reason to believe an approved in-State institution is not in compliance with the minimum requirements of this chapter, the Secretary shall inform the institution and request a written response. The Secretary may appoint an advisory evaluation team in accordance with Regulation .06J(2) of this chapter to make an on-site visit to the in-State institution to determine compliance with the minimum requirements of this chapter. The advisory evaluation team shall submit an advisory team report to the Secretary on the compliance of the in-State institution with the requirements of this chapter. The Secretary shall provide the institution with a copy of the report. If deficiencies are found, the team report may recommend actions to be taken by the institution being evaluated to correct the deficiencies. Upon receiving the team report, the institution has 20 days to submit to the Secretary a response to the report. After receiving the team report and the institution's response, the Secretary shall prepare an evaluation report based on all the information available to the Secretary on the compliance of the in-State institution with the requirements of this chapter. If the Secretary is satisfied that the in-State institution is in compliance with the requirements of this chapter, the Secretary shall reaffirm the institution's approval. If the Secretary is not satisfied that the in-State institution is in compliance with the requirements of this chapter, the Secretary shall issue a notice of deficiencies in accordance with Regulation .09 of this chapter. Hearing. If the Secretary has issued neither a reaffirmation nor a notice of deficiencies within 6 months of the Secretary's receipt of the last required written submission from the in-State institution, the institution may request a hearing before the Commission to determine whether a reaffirmation should be given. The request shall be made within 20 days of the expiration of the 6-month period. The hearing shall be conducted in accordance with the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and COMAR 13B.04.01. Accreditation. Within 4 years of an in-State institution receiving approval to operate within the State, the institution shall apply for accreditation with an organization recognized as an accrediting agency by the U.S. Department of Education to grant institutional accreditation. Within 8 years of an institution granting baccalaureate or higher degrees or within 6 years of an associate degree-granting institution receiving approval to operate within the State, the institution shall become accredited by an organization recognized as an accrediting agency by the U.S. Department of Education to grant institutional accreditation. Non-accredited in-State institutions approved by the State prior to January 1, 2007, shall apply by December 31, 2012, for accreditation by an organization recognized as an accrediting agency by the U. S. Department of Education to grant institutional accreditation, and shall become accredited by December 31, 2015. Except as provided in §L(5) of this regulation, the Secretary shall withdraw an institution's authority to operate in Maryland if the institution fails to become accredited by an organization recognized as an accrediting agency by the U. S. Department of Education to grant institutional accreditation within the time periods required by §L(1), (2), and (3) of this regulation. The Secretary may extend for a specified period the time required for an institution to obtain accreditation under §L of this regulation. If an institution’s accreditation is terminated, the institution’s authority to operate in Maryland shall cease effective the date that accreditation is terminated, unless the institution continues to be accredited by an organization recognized as an accrediting agency by the U.S. Department of Education to grant institutional accreditation. Effect of the removal of recognition of an accrediting agency by the U.S. Department of Education (USDOE). If an institution ceases to be accredited by an organization recognized as an accrediting agency by the USDOE because the USDOE terminates its recognition of the accrediting agency, the institution shall inform the Commission of its accreditation status in writing within 7 calendar days of the accrediting agency’s loss of recognition. Except as provided in §M(3) of this regulation, if an institution ceases to be accredited by an organization recognized as an accrediting agency by the USDOE because the USDOE terminates its recognition of the accrediting agency, the institution’s authority to operate in Maryland shall cease effective the date that the USDOE terminates its recognition of the accrediting agency, unless the institution continues to be accredited by an organization recognized as an accrediting agency by the USDOE to grant institutional accreditation. If an institution ceases to be accredited by an organization recognized as an accrediting agency by the USDOE because the USDOE terminates its recognition of the accrediting agency, and the institution is not accredited by another organization recognized as an accrediting agency by the USDOE to grant institutional accreditation, the Secretary may grant the institution a temporary approval to operate, and impose terms and conditions as the Secretary deems appropriate, provided that: Within 60 days of the accreditation agency’s loss of recognition or the effective date of this regulation, whichever occurs later, the institution shall apply for accreditation from an organization recognized as an accrediting agency by the USDOE, and shall inform the Commission of the new accrediting agency and the institution’s application status; and Within 4 years of the accreditation agency’s loss of recognition, the institution shall become accredited by an organization recognized as an accrediting agency by the USDOE to grant institutional accreditation. Withdrawal of Approval. Except as provided in §M(4)(b) of this regulation, the Secretary shall withdraw an institution’s authority to operate in Maryland if the institution fails to meet the time periods required by §M(3) of this regulation. The Secretary may, upon conditions that the Secretary deems appropriate, extend for a specified period the time requirements under §M(3) of this regulation. The provisions of §M of this regulation apply to a decision by the USDOE, effective on or after July 1, 2016, to withdraw an accrediting agency’s recognition. If, on the basis of available documentation, the Secretary believes that an in-State institution does not meet the conditions or standards on which its certificate of approval, or any other approval issued by the Commission or Secretary, was based, the Secretary shall give the institution written notice specifying the deficiencies believed to exist. The written notice shall specify the alleged deficiencies, direct the in-State institution to correct them within a period of not less than 30 days, and recommend appropriate sanctions if the institution fails to correct the deficiencies. Hearing. If the in-State institution requests a hearing on the notice of deficiencies, 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 shall be received by the Commission within 20 days of the institution's receipt of the notice of deficiencies. The hearing shall be conducted in accordance with the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and COMAR 13B.04.01. Subject to §F of this regulation, action on the notice of deficiencies shall be stayed until a determination after the hearing. Notwithstanding Regulation .11B of this chapter, the Secretary may stay action on any request for approval of a new program by an in-State institution issued a notice of deficiencies, 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 in-State institution or suspend or revoke the institution's certificate of approval or any other approval issued by the Commission or Secretary. In imposing any sanctions under this regulation, the Commission shall consider: The seriousness of the deficiency; The harm caused by the deficiency; The good faith of the in-State institution and any corrective actions taken; Any history of previous deficiencies; and Other pertinent circumstances. Judicial Review. An in-State institution that is aggrieved by an order of the Secretary or Commission has the right to judicial review provided by State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland. The decision of the Commission is presumed correct, and the institution has the burden of proving otherwise. The Commission shall be a party to the proceeding. Judicial Remedies. The Secretary may seek an injunction or other judicial remedy at any time following written notice of the deficiencies and before the Commission's final decision, if the Secretary determines that the public interest requires enforcement of the provisions of Education Article, Title 11, Annotated Code of Maryland, or any applicable regulations. If a court grants relief before a hearing that was requested on a timely basis, the Commission shall schedule the 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 hearing shall be conducted in accordance with the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland. If an in-State institution wishes to offer a new degree not previously offered by the institution unless already controlled by Regulation .06 of this chapter, the institution, through its governing board, shall submit a proposal and request the Commission to assess the readiness of the institution to grant the degree in accordance with Commission policies and procedures. Review. In response to a request for approval of a new degree, the Secretary may appoint a team to make an on-site visit. If appointed, the team's assessment and recommendations shall be presented to the Secretary. The institution is responsible for the costs of the review. The Secretary shall grant full approval to an institution exhibiting the capability to award a new degree. The Secretary may grant conditional approval to an institution demonstrating potential capability to award the degree. The Secretary shall prepare a report for the Commission on the Secretary's action. Associate Degree-Granting Authority. The Secretary may not grant approval to offer new associate degrees to: A public institution granting baccalaureate or higher degrees; or A private institution granting baccalaureate or higher degrees that does not offer an associate degree. In extraordinary situations, the Secretary may grant approval to offer a new associate degree-level program to a private institution granting baccalaureate or higher degrees that offers associate degrees when that program is justified by the: Institution's mission; Unique nature of the program; and Need for the program. If an in-State institution wishes to offer an instructional program not authorized in the institution's certificate of approval or charter or not previously subject to approval or recommendation of the Commission, the institution shall submit a proposal and a request for approval or recommendation through its governing board to the Commission in accordance with this chapter and policies and procedures specified by the Secretary. The Secretary shall review and act upon an application for a new program in accordance with the Commission's policies and procedures within 60 days of the date the completed proposal is received by the Commission. In-State institutions may offer credit-bearing course work amounting to less than 1/3 of the required course work of a major field of study leading to a degree or certificate at a location other than that of the sponsoring institution/campus without Commission approval. Off-Campus Programs. An in-State institution shall obtain the Secretary's approval or recommendation for off-campus programs before students are enrolled. With the exception of public associate-degree granting institutions offering instruction within their primary service area, if an in-State institution wishes to offer off-campus programs during any 12-month period, the institution shall submit a proposal and a request for approval through its governing board to the Commission in accordance with instructions provided by the Secretary. The Secretary shall review and act upon the application for an off-campus program under procedures established by the Commission. When an in-State institution applies for approval of a third off-campus program at a specific proposed off-campus site, the sponsoring institution shall submit to the Secretary a plan for the future development of that site and a request for review and response to that plan in a format provided by the Secretary. The Secretary shall evaluate the off-campus site under the requirements and procedures established in this chapter and shall approve the off-campus site if it is satisfied that the off-campus site satisfies the minimum requirements in this chapter. A prospective in-State institution shall design its organization to bring together the institution's total resources in an effectively coordinated effort that will accomplish the institution's stated objectives. The institution shall inform all individuals in the organization of their responsibilities and of those of the other principal administrative positions. The members of the administration and the governing board of the prospective in-State institution shall have a demonstrated history of ethical practice. A member of the administration or governing board may not have a history of fraudulent practices. Governing Board. A private institution seeking initial approval shall have a governing board that conforms to the requirements of regulations in existence at the time of the application. Board members shall represent the founders, benefactors, and public, and are responsible for directing the accomplishment of the purposes for which an institution was founded. Board members of higher education institutions are responsible for: Establishing broad policy and long-range planning; Appointing and evaluating the chief executive officer; Developing financial resources and providing oversight of financial management; Playing a major role in the development of external relations; and Maintaining the administrative integrity of the institution. Board members may not use their positions on the board for personal material gain, with the exception of private institutions. Meetings shall be held at regularly stated times. The institution shall prepare an agenda of the meeting and keep accurate minutes of the meeting on file. The duties, responsibilities, and relationship of the board with the administration, faculty, and other staff members shall be clearly defined in an organizational chart. Decisions shall be made based on consultation with affected parties. The board shall concentrate on broad policy matters and avoid concerning itself with administrative detail. Chief Executive Officer. Within the organizational structure, the chief executive officer shall delegate responsibilities and authority to the administrative staff and provide for a regular evaluation of the administrative staff. The results of an evaluation are solely for internal institutional purposes. The chief executive officer shall: Be responsible to the board for the entire operation of an institution or of all institutions in a multi-campus or multi-college system; Serve as a liaison between the board and the staff, and be directly responsible for the administration of the policies and procedures as set forth by the board; Provide leadership for the development and operation of all institutional functions; Be committed to the comprehensive purpose of the institution; Ensure the development and use of appropriate procedures of plant maintenance and fiscal management; Maintain a sound administrative structure for the orderly operation of the institution; and Be responsible for communications between the institution and the community served. Chief Academic Officer. An in-State institution shall have a chief academic officer who is not the chief executive officer. When required by the size and complexity of the institution, the institution may have several academic officers sharing the responsibilities of a chief academic officer. The chief academic officer shall: Be responsible for implementing the educational goals of the institution; and Develop and enforce the academic standards and procedures of the institution. The chief academic officer shall be qualified by academic training and appropriate experience to fulfill the responsibilities of the position. Chief Business Officer. An in-State institution shall have a chief business officer who is not the chief executive officer. The chief business officer shall: Manage the business and financial affairs of the institution; Keep the chief executive officer and the board apprised of the institution's financial condition; and Act as financial adviser to the chief executive officer and the board. The chief business officer shall be qualified by appropriate training and experience to fulfill the responsibilities of the position. Administrative Staff. The administrative staff shall have an organizational structure that is appropriate to the size and purpose of the in-State institution. An in-State institution shall define and clearly communicate the duties and responsibilities of all employees. The administrative personnel shall furnish effective leadership for institutional development and viability. Administrators shall be qualified by appropriate training and experience to perform their responsibilities. For private in-State institutions, the Commission shall give prior approval to substantial changes in majority ownership, direct or indirect. An in-State institution shall have a statement of mission and goals. An adequate statement of institutional goals shall incorporate: The institutional identity, to include: A summary of the institution's character and purpose; A designation of the institution's functional emphasis as instruction, research, or public service; The degree levels offered and relative emphasis given to undergraduate and graduate instruction; and The institution's current or proposed Carnegie classification; The constituencies served by the institution, including: A general description of the student body, including: The geographic origin of students, and Admission standards and the anticipated academic preparation of entering students; Relationships with special constituencies such as elementary and secondary schools, government, business, and industry; and The institution's instructional program emphasis. Publication of Mission and Goals. An in-State institution shall publish a comprehensive statement of its mission that is consistent with Education Article, Annotated Code of Maryland, with the philosophy of the institution's board, and with the Maryland State Plan for Postsecondary Education. The in-State institution shall set forth the statement in §C(1) of this regulation in the institution's catalog. The institution shall periodically review its mission and goals statement. For public institutions, this statement shall remain consistent with the identification of the role, function, and mission of the institution of higher education and segment of higher education as established in the Commission's Statewide plan, as revised from time to time. Admissions Policy. An in-State institution's admissions policy shall be related to the objectives and resources of the institution, and clearly stated. An in-State institution that maintains an open-door policy shall make adequate provision for placement testing, counseling, and compensatory services. There shall be a demonstrable correlation between admissions policies and educational practices. Because the admissions policy affects all aspects of institutional planning, funding, and staffing, an institution shall carefully plan the admissions policy to determine whether it is serving the needs and interests of its students, or how it could be doing so more effectively. The admissions policy shall be nondiscriminatory, and in compliance with all State and federal laws with regard to nondiscrimination. Individuals to Be Admitted. A student admitted to an in-State institution shall: Be a graduate of a high school accredited either by its own state department of education or by a regional accrediting association recognized by the United States Department of Education; or Have received a high school equivalency certificate or a high school equivalency diploma. Notwithstanding §B(1) of this regulation, an institution may admit to college level courses and programs individuals who present evidence, through testing or other means, of the ability to profit from the instruction. In making decisions about the potential of these individuals to complete a course or courses, or programs, the institution may consider previous formal education, equivalency of other learning by examination, and competencies gained through practical experience, maturity, or other appropriate criteria. In those instances when a student has been admitted under exceptions to existing institutional policies, the in-State institution shall retain an explanation of those exceptions and a record of the student's academic success in collegiate credit-bearing courses. The receiving institution shall limit the credit earned in or transferred from an associate degree-granting institution to approximately 1/2 the baccalaureate degree program requirement, not to exceed 70 credits. The receiving institution shall limit these transferred credits to the first 2 years of the undergraduate educational experience. Associate Degree. Credit Hour Requirement. An associate degree requires the satisfactory completion of not less than 60 or more than 70 credit hours, representing a planned sequence of learning experiences. Beginning with the Fall 2015 academic year, the standard number of credit hours required for an associate's degree from a public community college is 60 credit hours. The standard number of credit hours required under §A(1)(b) of this regulation does not apply if: The degree program is defined as more than a 2-year associate's degree; Professional accreditation requires a higher number of credit hours or requires course work that cannot be completed in 60 credit hours; or Certification requirements result in a need for credit hours in excess of 60. In consultation with the Commission, the governing board of a public community college may approve additional exceptions to the credit hour requirements of this subsection. An in-State institution shall require a minimum average of 2.0 on a 4.0 scale for graduation for both degree and certificate programs. A student shall earn at least 15 credit hours at the institution granting the degree. An institution may not include credit awarded for remedial education towards the credit hours required for graduation. Baccalaureate Degree. Credit Hour Requirement. An in-State institution shall require the satisfactory completion of not less than 120 credit hours, distributed according to the requirements of the curriculum, for a baccalaureate degree. The standard number of credit hours required for a baccalaureate degree from a public senior higher education institution is 120 credit hours. The standard number of credit hours required under §B(1)(b) of this regulation does not apply if: The degree program is defined as a 5-year baccalaureate program; Professional accreditation requires a higher number of credit hours or requires course work that cannot be completed in 120 credit hours; or Certification requirements result in a need for credit hours in excess of 120. In consultation with the Commission, the governing board of a public senior higher education institution may approve additional exceptions to the credit hour requirements of this subsection. An institution shall require a minimum average of 2.0 on a 4.0 scale for graduation for both degree and certification programs. A student shall earn at least 30 credit hours, of which at least 15 credit hours are upper divisional credit hours, at the institution awarding the degree. An institution may not include credit awarded for remedial education towards the credit hours required for graduation. An in-State institution shall have appropriate policies concerning students who do not make adequate progress toward a degree or certificate. A credit hour is an amount of student work defined by an institution that is consistent with commonly accepted practice in postsecondary education and that: Reasonably approximates not less than: One hour of classroom or direct faculty instruction and a minimum of 2 hour of out-of-class student work each week for approximately 15 weeks for one semester or trimester hour of credit, or 10 to 12 weeks for one quarter hour of credit, or the equivalent amount of work over a different period of time; or At least an equivalent amount of work as required in §D(1)(a) of this definition for other academic activities as established by the institution, including laboratory work, internship, practica, studio work and other academic work leading to the award of credit hours; and In determining the amount of work associated with a credit hour, to take into account a variety of delivery methods, measurements of student work, academic calendars, disciplines, and degree levels. General Education Requirement. An in-State institution shall provide to its students, within the required curriculum for graduation, a general education that is designed to provide the student with the skills and knowledge necessary to: Communicate effectively in oral and written English; Read with comprehension; Reason abstractly and think critically; Understand and interpret numerical data; Understand the scientific method; Recognize and appreciate cultural diversity; Understand the nature and value of the fine and performing arts; and Demonstrate information literacy. A private institution shall satisfy the general education requirement by: Requiring each associate degree program to include not less than 20 credit hours and that each baccalaureate degree program shall include not less than 40 credit hours of required arts and science core courses, with at least one 3-credit hour course from each of the following five areas: Arts and humanities; English composition; Social and behavioral sciences; Mathematics; and Biological and physical sciences; An integrated and structured general education experience required of all students, adopted by the governing board of the institution, which shall be demonstrated to the Commission at the time of initial approval or reaffirmation of approval, to achieve the goals of general education as defined in §E(1) of this regulation; or A process to measure competencies and to award credit in the areas of general education adopted by the governing board of the institution, which shall be demonstrated to the Commission to achieve the goals of general education in accordance with guidelines approved by the Commission. General education requirements for public institutions are governed by COMAR 13B.06.01. Credit for Practica, Clinical Experience, Internships, and Cooperative Work Experiences. An in-State institution awarding credit hours for practica, clinical experiences, internships, and cooperative work experiences shall ensure that the credit hours are being awarded for actual academic learning. A student shall demonstrate competence through testing or through other appropriate evaluative measures. An institution granting baccalaureate or higher degrees may not award more than 45 credit hours of the minimum 120 credit hours required for the baccalaureate degree or a proportional amount of a greater number of credit hours for practica, clinical experiences, internships, and cooperative work experiences. An associate degree-granting institution may not award more than 30 credit hours of the minimum 60 credit hours required for the associate degree or a proportional amount of a greater number of credit hours for practica, clinical experiences, internships, and cooperative work experiences. Credit for Competency-Based Education. An institution may award credit hours for competency-based education, such as credit for prior learning or demonstration of skills and knowledge in specific areas, based on: Successful completion of an acceptable standardized examination such as the College Level Examination Program; An examination developed by the institution; A portfolio assessment; or Another assessment method approved by the Secretary to demonstrate competencies. An institution that awards credit for competency-based education shall follow nationally accepted standards for the notation of such credit on a student's transcript. Institutional Policy. An institution that awards credit for competency-based education shall submit to the Secretary a written policy that articulates standards for the assessment and awarding of credit hours to students. The institution shall: Develop and approve the policy through appropriate governance channels, including seeking input from students and faculty; Submit the policy to the Secretary for approval; Review and update the policy at least every 3 years to ensure that it reflects current practice; and Resubmit the policy to the Secretary for approval when changes are made. The Secretary shall: Review the institution's policy; Approve the policy if the Secretary determines that the policy is complete and that all assessment methods will be effective for assessing students' competencies; and Maintain the written policy on file at the Commission. An institution may not implement its policy until it receives the Secretary's written approval. Faculty of the institution in the appropriate discipline shall conduct each assessment. Maintenance of Copies. An institution shall maintain copies of all examinations, test results, portfolios, portfolio assessment reviews, and other methods approved by the Secretary to assess learning for the award of credit hours for competency-based education. The copies shall be maintained for 1 year after a student graduates or for 5 years after a student was last enrolled, as applicable. Report to Secretary. Where graduates of an institution earn more than half of the credit hours toward their degree or certificate program through competency-based education, the institution shall submit an annual report to the Secretary. The report shall be: In the form required by the Secretary; and Submitted by October 1st of each year for the prior academic year. The report shall detail: The number of degrees and certificates awarded in this manner; The number of credits for competency-based education granted per degree or certificate awarded; and The methods used for assessing and awarding credit for competency-based education. An in-State institution shall require satisfactory completion of the requirements of a program of studies representing a planned sequence of learning experiences that consists of: At least 12 credit hours at the freshman or sophomore levels, or both, to confer a lower division certificate; At least 12 credit hours at the junior or senior levels, or both, to confer an upper division certificate; At least 12 credit hours at the graduate or upper divisional level, the majority of which are at the master's or specialized postgraduate level, to confer a post-baccalaureate certificate; At least 30 credit hours or the equivalent of graduate-level courses to confer a master's degree; At least 12 credit hours of graduate study or the equivalent beyond the master's degree, to confer a post-master's certificate; At least 30 credit hours of graduate study or the equivalent beyond the master's degree, to confer a certificate of advanced study; At least 2 years of study beyond the master's level, including completion of a thesis or dissertation, to confer a doctoral degree; or All institutional requirements for becoming a practitioner in a field such as law, medicine, dentistry, pharmacy, or theology, to confer a first professional degree. An in-State institution may award an informal award certifying satisfactory completion of a course or sequence of courses that are either noncredit or less than 12 credit hours. An in-State institution may not award transfer of course credit hours for courses completed: By correspondence, unless credit for these courses was earned at a college or university accredited by an organization recognized as an accrediting agency by the United States Department of Education to grant institutional accreditation and would be accepted by that institution as credit toward a degree; or In institutions or organizations that are not legally authorized to grant standard college degrees, unless the courses have been evaluated and recommended by the American Council on Education or other nationally recognized bodies, or are a part of an articulation agreement approved by the Commission. An in-State institution may accept transfer credit hours for courses that are: From another in-State institution approved by the Commission; From an in-State institution that is: Exempted by law from approval by the Commission, and Accredited by an organization recognized as an accrediting agency by the United States Department of Education to grant institutional accreditation; From an out-of-State institution that is accredited by an organization recognized as an accrediting agency by the United States Department of Education to grant institutional accreditation; or Part of an articulated agreement with a high school for which course competencies are specified, with copies of the agreement being maintained on file. COMAR 13B.06.01 governs the transfer of credit hours from public associate degree-granting institutions to public institutions granting baccalaureate or higher degrees. Second-Degree Students. Students newly enrolling at an in-State institution who are seeking an associate degree or a baccalaureate degree and who hold a baccalaureate degree from a college or university accredited by an organization recognized as an accrediting agency by the United States Department of Education to grant institutional accreditation may be deemed to have satisfied the Maryland general education requirement under §E of this regulation, but not necessarily the total general education requirements of the institution. Students newly enrolling at an in-State institution who are seeking an associate degree and who hold an associate degree from a college or university accredited by an organization recognized as an accrediting agency by the United States Department of Education to grant institutional accreditation may be deemed to have satisfied the Maryland general education requirement for the associate degree under §E of this regulation, but not necessarily the total general education requirements of the institution. Instruction Delivered by Distance Education. An in-State institution delivering instruction in Maryland by distance education shall provide evidence to the Secretary of compliance with the C-RAC guidelines. The faculty employed by an in-State institution shall be competent on the basis of their formal education and professional experience to enable them, through effective instruction and other activities, to achieve the educational objectives of the institution. A faculty member shall have completed formal studies at an institution accredited by an organization recognized as an accrediting agency by the United States Department of Education to grant institutional accreditation or internationally recognized institution at least through the master's or first professional degree, or its equivalent, in the field in which the faculty member teaches. “Equivalent” means documented outstanding achievement in the arts, music, letters, science, research, business or industry, or public service. A faculty member shall demonstrate successful experience and provide continuing evidence of keeping abreast of developments in the faculty member's field. The highest educational requirements for faculty members who teach courses of a technical or vocational nature at an associate degree-granting institution shall be compatible with their teaching assignments, with practical experience being given special consideration. An associate degree-granting institution shall ensure the quality of the general education courses offered by: Assigning a full-time employee, with appropriate credentials, to be responsible for coordinating and supervising the general education offerings; Having a plan for relating the general education requirements to the curriculum offered by the institution; and Ensuring that faculty teaching in the general education courses comply with the requirements set forth for all faculty in this chapter. Faculty members who engage in instruction shall be able to communicate effectively in both written and spoken English. At least 35 percent of the full-time faculty in colleges offering baccalaureate or higher degrees, and 50 percent of the full-time faculty in universities and in separately incorporated graduate institutions or centers shall hold a terminal degree in the field in which they teach. At least 50 percent of the total credit hours offered by an institution within a normal academic year of 2 semesters or 3 trimesters, normally September to May, which are creditable toward a formal award, shall be taught by full-time faculty members at the institution. Full-time faculty members of the parent institution shall teach at least 1/3 of the credit hours offered in an off-campus program. Institutions Granting Baccalaureate or Higher Degrees. There shall be at least one full-time faculty member with a degree in an appropriate discipline in each degree program, except as provided in §I(2) of this regulation. For degree programs with a collective title involving more than one major discipline and with areas of concentration in unrelated disciplines, such as general studies, interdisciplinary studies, or liberal studies, there shall be at least one full-time faculty member with a degree in an appropriate discipline in each area of concentration. In programs at an associate degree-granting institution in which 20 or more degrees are granted annually, there shall be at least one full-time faculty member with an appropriate degree in an appropriate discipline. Institutional Waiver of Definition of Full-Time Faculty. An institution may apply to the Commission for a waiver from the definition of “full-time faculty member” found in Regulation .03B of this chapter. In order to obtain a waiver, an institution shall demonstrate that the unique role, scope, and mission of the institution require a waiver in order for the institution to operate. After making the demonstration required in §K(2) of this regulation, the institution shall: Designate by name the faculty members whose primary responsibility is instruction, scholarship, research, or service who will perform the duties normally required of full-time faculty; Document that designated faculty members substantially participate in the development or implementation of one or more of the following activities at the institution requesting the waiver: Academic programs; Professional programs; Research programs; Service programs; Admission or admission policies; Academic advising; Faculty appointments; or Institutional governance; Document that the designated faculty shall, as a group, participate in all of the activities listed in §K(3)(b) of this regulation; Document that the designated faculty shall perform the requirements of full-time faculty under §§F, G, and H of this regulation; and Document that full-time faculty members, as defined in Regulation .03B of this chapter, shall fulfill the requirements of §§I and J of this regulation. Documentation may include but not be limited to the following: Minutes of meetings; Contractual obligations; or Job descriptions. The request for a waiver shall be placed on the agenda of a regularly scheduled public meeting of the Education Policy Committee. The Chairman of the Education Policy Committee shall present the Committee's findings to the Commission at its next regularly scheduled public meeting. The decision of the Commission is considered final and not subject to further review. If the Commission is satisfied that an institution meets the requirements of this section, it may grant a waiver to the institution on such terms and conditions, including time limitations, as the Commission considers appropriate. Part-time faculty shall have appropriate qualifications for their assignment. Graduate teaching assistants: Shall be students in good standing in a graduate program leading to a degree in the academic discipline that they are assigned to teach, or to a degree in an appropriately related discipline; May only provide classroom instruction in courses at a degree level lower than the one they are pursuing; Teaching a course, shall be supervised by a faculty member of the institution who has ultimate responsibility for the course; and Shall be able to communicate effectively in both written and spoken English. The in-State institution shall have evidence of a defined nondiscriminatory faculty selection and evaluation process that is systematically planned and executed. Faculty professional assignments: Shall be based directly on institutional policy; Shall be reasonable and consistent with professional standards; and May not exceed published professional standards of the institution. Teaching faculty shall schedule and publish office hours for purposes of student advising and counseling. Faculty Handbook. An in-State institution shall publish a faculty handbook that encompasses the institution's personnel practices affecting faculty members, as well as other appropriate policies. The faculty handbook shall have accurate and current information. General. A library/learning resource center shall provide print and nonprint materials, services, media, and related equipment and facilities designed to facilitate and improve learning and to foster inquiry. A library/learning resource center's program and services shall: Be available to students, faculty, and the community as appropriate; and Include functions as the mission and goals of the institution may require. Collection Adequacy. An in-State institution shall have an accessible library materials collection adequate to support the educational program. The type and variety of books and materials depend upon the nature of the institution, and they shall relate realistically to the institution's educational goals, curricula, size, complexity, or degree level, and the diversity of its teaching, learning, and research requirements. For institutions seeking initial approval, the minimum number of bound volume equivalents (BVEs), as defined by national library associations, required to be accessible on the date when the first students are enrolled is calculated according to the following cumulative formula: Waiver. In extraordinary circumstances, an institution may request a waiver of the minimum collection required by §B(2) of this regulation. The request for a waiver shall be placed on the agenda of a regularly scheduled public meeting of the Education Policy Committee. The Chairman of the Education Policy Committee shall present the Committee's findings to the Commission at its next regularly scheduled public meeting. The decision of the Commission is considered final and not subject to further review. A waiver may be granted if the waiver is justified by: The specialized or technical nature of the institution's curriculum; or An executed contract or contracts with another library or libraries ensuring students adequate access to another appropriate collection either through location or through information technology. In determining the adequacy of the library collection of an existing institution, the Secretary shall consider relevant guidelines of professional associations and library associations. Library/learning resource center professionals shall: Be sufficient in number; and Have appropriate professional education to perform the functions required by the institution's mission and goals. Library/learning resource center professionals shall have faculty status or appropriate administrative professional status. Faculty and student usage statistics shall be kept to determine to what extent the library/learning resource center's resources are available and accessible. In addition to monitoring activities, the in-State institution shall use these statistics to identify additional resources required to meet the needs of the faculty and students and estimate the strengths of the current resources. An in-State institution shall include in its operating budget adequate funds to provide library services on its campus and for off-campus instruction. An in-State institution offering off-campus programs within the State shall provide adequate and appropriate library resources within State boundaries and within reasonable distance of the instructional site. The institution shall keep usage statistics to determine to what extent these resources are available and accessible. The Secretary shall approve executed contracts providing for library resources to supplement, and not to substitute for, the holdings of the institution's library/learning resource center, if the in-State institution ensures adequacy and accessibility. The institution shall maintain evidence of the extent of student usage of the supplemental resources. Student services and activities shall realistically reflect the stated objectives, purposes, and philosophy of the in-State institution. The needs and welfare of students shall be of primary concern if there is to be motivation toward worthwhile academic achievement. Student policies shall encourage associations among students, faculty, and the administration, and shall provide opportunities for the development of individual potential. An in-State institution shall ensure that all students have access to a well developed program of counseling, testing, advisement, orientation, financial aid, career development, placement, health services, food dispensing, and a college bookstore. The institution may determine specific organization of services, as well as the resources and staffing provided, as long as provision for the services noted in this section is made. Student activities that complement the instructional program are particularly encouraged. An in-State institution should establish student government organizations that are representative and provide a responsible forum for student views as well as a vehicle for student input into institutional decision making. While participation in varsity athletics, student organization, and student governance is a valuable adjunct to the instructional program, these activities are not part of the instructional program itself, and the institution may not award academic credit for participation in these activities. An in-State institution shall keep complete and accurate records of admission, enrollment, grades, scholarships, transfer of credits, transcripts, graduates, and other essentials in accordance with standard practice. An in-State institution shall: Maintain student records in accordance with acceptable national standards regarding institutions of higher education; Ensure the physical security and confidentiality of student records, and store physical records in fire-proof cabinets; Have adequate security to prevent loss of records maintained in electronic systems; and Have a document security plan appropriate to its record-keeping system. An in-State institution shall develop a statement of the rights, privileges, and responsibilities of students, and make this statement available to students through the catalog, student handbook, or other appropriate means. An in-State institution shall adhere to published student grievance procedures that assure a fair and timely review of student complaints. Because the effective operation of an in-State institution depends largely upon the physical atmosphere of the surroundings, the cleanliness, state of repair, and attractive appearance of the institution's grounds and buildings shall provide an adequate and effective educational environment. An in-State institution shall provide safe, accessible, functional, and appropriately maintained facilities. Facilities shall meet applicable federal, State, and local fire, safety, and health standards. An in-State institution shall have a schedule for cleaning, repair, and maintenance of buildings and grounds. An in-State institution shall appropriately assign specific responsibilities for care of grounds, campus security, traffic safety and control, fire protection, utilities, and plant upkeep. An in-State institution shall appropriately assign specific responsibilities for storage, handling, and disposal of dangerous and toxic materials. An in-State institution shall provide laboratory and classroom space appropriate to its curriculum. An in-State institution shall provide office space and conference space to full-time and part-time faculty and administrators. An in-State institution shall operate in accordance with sound principles of financial management. An in-State institution shall expend its revenue to provide adequately for instruction, administration, learning resources, student services, maintenance, equipment, and supplies. The institution's expenditures for specific functions shall be consistent with the goals and objectives of the institution. Annual expenditures of an in-State institution shall be consistent with the annual revenue, financial plan, and other resources of the institution. The institution shall have adequate controls over expenditures in accordance with sound principles of financial management. An in-State institution shall have appropriate and adequate financial planning to ensure the stability of the institution. An in-State institution shall maintain its accounts in accordance with recognized national standards regarding institutions of higher education. An in-State institution shall have a financial management process that includes the following functions: Ascertaining the institution's needs for funds; Generating adequate funds to meet the institution's needs; Using funds in a responsible manner to satisfy the institution's needs; Evaluating whether identified needs have been satisfied in the most efficient and effective manner; Maintaining a certified copy of its annual financial statements; and Providing a copy of the certified annual financial statements to the Commission upon request. Audits. An in-State institution shall have a financial audit conducted at least every 2 years by an independent certified public accountant or a State legislative auditor, which provides a detailed and accurate picture of the financial status of the institution since the preceding audit. The audit shall be an unqualified audit. In the case of management issues raised by an audit, the latest audit shall indicate resolution of exceptions noted in the previous audit. An institution shall maintain a copy of its certified annual audit. A copy of the certified annual audit shall be made available to the Commission upon request. General Requirements. An in-State institution shall publish in print or electronically on a regular and continuing basis an official catalog that describes the institution and its program and course offerings accurately and completely. The catalog is the official document of the institution. The catalog and other publications of the institution shall present accurate, up-to-date information about the administration and operation of the institution. The institution shall make the catalog available to all students before the beginning of the period of instruction covered by the catalog and during that period of instruction. An institution shall ensure that all publications containing information normally included in the catalog are consistent with the catalog. The catalog or other appropriate publications shall contain, at a minimum, the following information: The date of publication; The current academic calendar; A comprehensive table of contents and appropriate indices; A statement of the origin and the objectives of the institution; The roster of the official governing board; A complete roster of faculty and administrators showing earned degrees and the granting institution; The entrance requirements, academic regulations, support services, graduation requirements, and general procedures; The financial policies of the institution, including all costs, schedule of payments, and refunds of all types of charges for academic and other services; A detailed description of all types of financial assistance available from the institution, including private, State, and federal programs; A description of each course and each program and its prerequisites, if applicable, to be offered during the year or years for which the catalog is issued; A clear indication if a particular course is not offered regularly; A full description of student support services, including: Personal counseling; Academic counseling and advisement; Health services; Services for veterans, disadvantaged individuals, and other special groups; Intercollegiate athletics and recreation; Extracurricular activities; Cooperative work experiences; Student participation in institutional decision making; Alumni activities; Housing; Food services; and Bookstore; A statement of student rights and responsibilities, including: A student grievance procedure; Constraints on students, such as automobiles, parking, and parietal rules, including rules for the maintenance of order on campus and in other facilities under the institution's control; and A contact office for the resolution of complaints; A statement of nondiscrimination, student privacy legislation, and provisions for barrier-free access to the handicapped in accordance with State and federal regulations, if applicable; and For public institutions, the Commission's student transfer policies. Statements and policies contained in official publications shall be in accordance with State and federal law. In this regulation, the following terms have the meaning indicated: Foster Care Recipient. “Foster care recipient” means an individual who was placed in an out-of-home placement by the Maryland Department of Human Services and: Resided in an out-of-home placement in the State at the time the individual graduated from high school or successfully completed a general equivalency development examination (GED); or Resided in an out-of-home placement in the State on the individual’s 13th birthday and was placed into guardianship or adopted out of an out-of-home placement after the individual’s 13th birthday. “Foster care recipient” includes a younger sibling of an individual described in §A(1)(a) of this regulation if the younger sibling is concurrently placed into guardianship or adopted out of an out-of-home placement by the same guardianship or adoptive family. “Out-of-home placement” has the meaning stated in Family Law Article, §5-501, Annotated Code of Maryland. Tuition. “Tuition” means the charges imposed by a public institution of higher education for enrollment at the institution. “Tuition” includes charges for registration and all fees required as a condition of enrollment. “Unaccompanied homeless youth” means a child or youth who: Has had a consistent presence in the State for at least 1 year before enrollment in a public institution of higher education that is documented by school, employment, or other records; Is not in the physical custody of a parent or guardian; Is a homeless child or youth, as defined by the McKinney-Vento Homeless Assistance Act; and Was determined to be a homeless child or youth by: A Maryland local school system homeless liaison, as defined by the McKinney-Vento Homeless Assistance Act; A director or a designee of the director of a Maryland-based program funded under the Runaway and Homeless Youth Act; A director or a designee of the director of a Maryland-based program funded under Title IV, Subtitle B of the McKinney-Vento Homeless Assistance Act; or The financial aid director at the public institution of higher education in which the youth seeks to enroll. “Vocational certificate” means a certification or licensure program offered by a public institution of higher education: Through courses for credit; or Through noncredit courses if the Commission approves the courses for State funding. When determining whether a youth is an unaccompanied homeless youth, a financial aid administrator shall verify annually that the youth qualifies as an independent student under the federal College Cost Reduction and Access Act, 20 U.S.C. §1087vv(d)(1)(H). A foster care recipient or an unaccompanied homeless youth is exempt from paying any tuition at a public institution of higher education, regardless of that foster care recipient’s or unaccompanied homeless youth’s receipt of any scholarship or grant if: The foster care recipient or unaccompanied homeless youth is enrolled at the institution on or before the date that the foster care recipient or unaccompanied homeless youth reaches the age of 25 years; The foster care recipient or unaccompanied homeless youth is enrolled as a candidate for a vocational certificate, an associate’s degree, or a bachelor’s degree; and The foster care recipient or unaccompanied homeless youth has filed for federal and State financial aid by March 1 each year. If a foster care recipient or an unaccompanied homeless youth receives a scholarship or grant for postsecondary study and is enrolled before the recipient’s 25th birthday as a candidate for a vocational certificate, an associate’s degree, or bachelor’s degree at a public institution of higher education, the scholarship or grant may not be applied to the tuition for the foster care recipient or unaccompanied homeless youth. A foster care recipient or an unaccompanied homeless youth who is exempt from tuition under this section continues to be exempt until the earlier of: 5 years after first enrolling as a candidate for an associate’s degree or a bachelor’s degree at a public institution of higher education in the State; or The date that the foster care recipient or unaccompanied homeless youth is awarded a bachelor’s degree. Education Article, §§11-105, 11-201—11-207, and 15-106.1, Annotated Code of Maryland Effective date: July 1, 1980 (7:13 Md. R. 1280) Chapter recodified from COMAR 13.50.04 to 13B.02.02 Regulations .01—.14, Minimum Requirements for Degree-Granting 4-Year Colleges and Universities, repealed effective December 14, 1987 (14:25 Md. R. 2661) Regulations .01—.16, Minimum Requirements for 4-Year Degree-Granting Institutions, adopted effective December 14, 1987 (14:25 Md. R. 2661) Regulation .02B amended effective April 17, 1989 (16:7 Md. R. 812) Regulations .01—.16, Minimum Requirements for 4-Year Degree-Granting Institutions, repealed and Regulations .01—.22, Minimum Requirements for Degree-Granting Institutions, adopted effective April 10, 1995 (22:7 Md. R. 537) Regulation .03 amended effective February 8, 1999 (26:3 Md. R. 175); September 17, 2001 (28:18 Md. R. 1622) Regulation .06 amended effective March 23, 1998 (25:6 Md. R. 490) Regulation .06C, E amended as an emergency provision effective March 6, 1996 (23:7 Md. R. 549) Regulation .06C, E amended as an emergency provision effective June 30, 1996 (23:15 Md. R. 1084); amended permanently effective October 21, 1996 (23:21 Md. R. 1468) Regulation .09C, F amended effective March 23, 1998 (25:6 Md. R. 490) Regulation .11B amended effective September 17, 2001 (28:18 Md. R. 1622) Regulation .16 amended effective December 4, 1995 (22:24 Md. R. 1901); February 8, 1999 (26:3 Md. R. 175) Regulation .17K amended effective March 23, 1998 (25:6 Md. R. 490) Regulation .18B amended effective March 23, 1998 (25:6 Md. R. 490) Chapter revised effective May 19, 2008 (35:10 Md. R. 973) Chapter revised effective June 15, 2009 (36:12 Md. R. 838) Regulation .03B amended effective July 26, 2010 (37:15 Md. R. 999); May 7, 2018 (45:9 Md. R. 462) Regulation .04B amended as an emergency provision effective July 1, 2011 (38:14 Md. R. 788); amended permanently effective October 17, 2011 (38:21 Md. R. 1279) Regulation .06D amended as an emergency provision effective July 1, 2011 (38:14 Md. R. 788); amended permanently effective October 17, 2011 (38:21 Md. R. 1279) Regulation .08L amended effective March 27, 2017 (44:6 Md. R. 327) Regulation .08M adopted effective March 27, 2017 (44:6 Md. R. 327) Regulation .16 amended effective October 28, 2013 (40:21 Md. R. 1780); July 21, 2014 (41:14 Md. R. 798); October 13, 2025 (52:20 Md. R. 1002) Regulation .16I amended effective July 26, 2010 (37:15 Md. R. 999) Regulation .16O amended effective May 7, 2018 (45:9 Md. R. 462) Regulation .23 adopted effective March 28, 2016 (43:6 Md. R. 410) This chapter sets forth requirements for program development by all institutions of higher education, including public, independent, private for-profit, 2-year, and 4-year institutions. In this chapter, the following terms have the meanings indicated. Terms Defined. “Area of concentration” means a sequential arrangement of courses within a program that: At the associate’s level is at least 12 semester credit hours, and not greater than 30 semester credit hours; At the bachelor’s level is at least 24 semester credit hours; At the master’s level is at least 12 semester credit hours above the bachelor’s degree; and At the doctoral level is at least 18 semester credit hours above the master’s degree. “Articulation agreement” has the meaning stated in COMAR 13B.06.02.02. “Certificate” includes: Lower division certificate; Upper division certificate; Post-baccalaureate certificate; Post-master's certificate; Professional certificate; Certificate of advanced study; and Directed Technology Certificate. “Commission” means the Maryland Higher Education Commission. “C-RAC guidelines” means the Interregional Guidelines for the Evaluation of Distance Education adopted by the Council of Regional Accrediting Commissions. “Degree” includes: Associate of Applied Science (A.A.S.); Associate of Arts (A.A.); Associate of Arts in Teaching (A.A.T.); Associate of Fine Arts (A.F.A.); Associate of Science (A.S.); Associate of Science in Engineering (A.S.E.); Bachelor of Arts (B.A.); Bachelor of Fine Arts (B.F.A.); Bachelor of Professional Studies (B.P.S.); Bachelor of Science (B.S.); Bachelor of Technical Studies (B.T.S.); Master’s; and Doctorate. “Distance education” means education that uses one or more of the following technologies to deliver instruction to students who are separated from the instructor, and to support regular and substantive interaction between the students and the instructor synchronously or asynchronously: Internet; One-way and two-way transmissions through open broadcasts, closed circuit, cable, microwave, broadband lines, fiber optics, satellite or wireless communication devices; Audio conferencing; and Video cassette, DVDs, and CD-ROMs, if the cassette, DVDs, and CD-ROMs are used in a course in conjunction with a technology listed in §B(6)(a)—(c) of this regulation. “Distance education course” means a course in which the instructional content is delivered exclusively via distance education, except that requirements for coming to campus for orientation, testing, or academic support services do not exclude a course from being classified as a distance education course. “Distance education program” means a program for which all the required coursework for program completion may be completed by distance education courses. “Formal award” means a certificate or degree granted in recognition of successful completion of the requirements of a program, conferred by the faculty and ratified by an institution's governing board. “Historically black institution (HBI)” means a Maryland public historically black institution, including Bowie State University, Coppin State University, Morgan State University, and University of Maryland Eastern Shore. “Independent institution” means a private nonprofit institution of higher education. “In-State institution” means an institution of higher education whose primary campus is in Maryland and whose authority to grant degrees is conferred by Maryland. “Institution of higher education” means an institution of postsecondary education that generally limits enrollment to graduates of secondary schools, and awards degrees at the associate, bachelor’s, or graduate level. “Internship” means a supervised work experience or field placement in a student's program. “Joint degree” means a single degree offered by two or more institutions bearing the name and seal of each in which all cooperating institutions are substantively involved in required course work, faculty exchange, and shared use of facilities. Off-Campus Program. “Off-campus program” means, for institutions other than community colleges: A program in which more than 1/3 of the required course work leading to a bachelor’s degree or a certificate beyond the bachelor's level is offered by an institution at a location other than the principal location of the institution during any 12-month period; or Course work offered at a location other than the principal location of an institution that is advertised as leading to a degree or a certificate beyond the bachelor's level at that location, regardless of the portion of a program offered at that location. “Off-campus program” means, for community colleges, course work offered outside the community college service area. On-campus Education. “On-campus education” means education in which the instruction occurs when the learner or learners and the instructor or instructors are in the same location, synchronously to all students. “On-campus education” may incorporate elements of technology, and may be web-enhanced, e.g., instruction with standard meeting places and times, which include an electronic component to deliver homework assignments or require e-mail exchanges between the instructor and students. “On-campus program” means a program that is not a distance education program. “Parallel program” means a program at a community college and a program at a public 4-year institution of higher education having comparable objectives. “Primary degree” means a single degree offered by one institution having responsibility for at least 2/3 of the course requirements in which cooperating institutions participate by the appropriate and complementary addition of courses, faculty, and facilities intended to complete the degree requirements of the primary institution. “Private for-profit institution” means a privately owned and operated institution of higher education that is intended to operate as a business. “Program” means a structured and coherent course of study with clearly defined learning objectives and intended student learning outcomes, requiring the completion of a specified number of credit hours from among a prescribed group of courses, leading to the award of a certificate or degree. “Program modality” means: Distance education; or On-campus education. “Program proposal” means a proposal for a new program or a proposal for a substantial modification of an existing program submitted for review in the form and manner required by the Secretary. “Regional higher education center” or “RHEC” has the meaning stated in Education Article, §10-101, Annotated Code of Maryland. “Secretary” means the Secretary of Higher Education. “Segment” means: The University System of Maryland; Morgan State University; St. Mary's College of Maryland; The Maryland Independent College and University Association; The Maryland Association of Private Colleges and Career Schools; and The Maryland Association of Community Colleges. “State Plan” means the document entitled Maryland State Plan for Postsecondary Education. “Undergraduate major” means, varying by degree program and subject area: A minimum of 30 semester credit hours, 1/2 of which must be upper-divisional credit, in one field or in an interdisciplinary or multidisciplinary field; and A coherent, sequential, and integrated program of study-in-depth which is intended to provide: A body of knowledge; Methods of study; and Practice appropriate to a subject area. Except as provided in §C of this regulation, each institution of higher education shall pay an academic program review fee for each program review action as provided in this regulation. The following schedule sets forth the fees for academic program review actions. An institution of higher education requesting a program review action related to a program offered at a regional higher education center is exempt from payment of an academic program review fee. The Commission shall review program proposals for public institutions, independent institutions, and private for-profit institutions of higher education. For public institutions, the Commission shall review and approve or disapprove program proposals for: New programs; and Substantial modifications. For independent institutions and private for-profit institutions, the Commission shall review and recommend or not recommend implementation of program proposals for: New programs; and Substantial modifications. An institution shall submit a program proposal for a new program to establish: A program leading to a formal award in a subject area in which the award is not presently authorized; A program in a subject area in which a formal award is offered at a different degree level (for example, an institution awards a Bachelor of Science (B.S.) in chemistry and wishes to award a Master of Science (M.S.) in chemistry, or an institution wishes to offer an associate degree in addiction counseling, but currently offers only a lower-division certificate in addiction counseling); A new undergraduate major by combining course work offered in two or more existing programs (for example, an institution wishes to offer a program in biochemistry by permitting students to combine course work offered in its current programs in biology and in chemistry); or A formal award of a different type in a subject matter area in which another formal award at the same level is already offered (for example, an institution awards the Master of Science in Management (M.S.) and wishes to offer a Master of Business Administration (M.B.A.), or an institution awards an Associate of Applied Science (A.A.S.) and wishes to offer an Associate of Arts (A.A.) or Associate of Science (A.S.)). An institution shall submit a program proposal for a substantial modification to: Change more than 50 percent of an existing program’s course work, unless all of the proposed changes are required by an accreditor, licensing board, or other state or national entity that governs academic program elements required to enter into a particular field or industry; Offer an existing program as an off-campus program or at a regional higher education center; or Establish a new area of concentration within an existing program. Program Review Process. If the Commission fails to act on a program proposal within 60 days after the submission of the program proposal to the Commission, the program is officially approved without any further action of the Commission. If the Commission disapproves or does not recommend a proposal, the Commission shall provide to the institution's governing board a detailed written explanation of the reasons for the disapproval or non-recommendation under this chapter. After revising a proposal to address the Commission's reasons for disapproval or non-recommendation, the governing body may resubmit the revised proposal to the Commission in accordance with the schedule in Regulation .27 of this chapter, thereby triggering a new 60-day time frame for Commission action. Implementation of Programs. A public institution may not implement a new program or a substantial modification to an existing program without the prior approval of the Commission. Implementation of Program by Independent Institution. If an independent institution has implemented a new program or a substantial modification to an existing program contrary to the non-recommendation of the Commission that was based on a finding of unreasonable or unnecessary duplication, the Commission may recommend that the General Assembly reduce the institution's appropriation by the amount of aid associated with the full-time equivalent enrollment in that program. The provision in §G(2)(a) of this regulation does not preclude the independent institution from implementing the new program or substantial modification. If the General Assembly reduces program funding, the affected independent institution may apply annually to the Commission for reconsideration of the program review decision. A private for-profit institution may implement a program notwithstanding the non-recommendation of the Commission. If an independent institution or a private for-profit institution implements a program despite a recommendation from the Commission that the 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. Program Suspension. An institution may temporarily suspend a program and examine its future direction. During a period of program suspension, an institution has the opportunity to: Study its future commitment to a particular field of study; and Determine whether the program should be: Maintained in present form; Consolidated with other program offerings; or Discontinued. The suspension of a program relieves an institution from having to submit a program proposal to the Commission to reactivate a discontinued program. Criteria and Process for Program Suspension. A program may be suspended for a period of time not to exceed 3 years. The catalog and other official publications shall indicate the official status of the program. New students may not be admitted into a program during the period of suspension. Currently enrolled students shall be given the opportunity to satisfy degree requirements. Before suspending a program, the institution shall notify the Secretary in writing. After a 3-year period, the institution shall either discontinue or reactivate the program and notify the Secretary in writing. The Commission does not review a program proposed for discontinuance by an institution. However, an institution shall provide written notice to the Commission in advance of a program’s discontinuance. In this regulation, “sequential arrangement” means an arrangement of approved courses comprising between 12 and 30 semester hours offered by a community college on or before June 30, 2014. A community college that has publicized a sequential arrangement as an “option” for students may submit a program proposal as provided in §C of this regulation to have the sequential arrangement approved as an area of concentration. A community college may request that the Commission approve a sequential arrangement as an area of concentration by submitting a proposal that: Provides the area of concentration name; Outlines the curriculum design, including course descriptions, names, and credit hours; Explains the centrality of the proposed area of concentration to the institution’s mission; Identifies when the option first became available; and Identifies with specificity: The educational need for the area of concentration, to include the regional or statewide need as identified in the State Plan; or The transfer and articulation arrangements that the area of concentration will facilitate or support. Notwithstanding the provisions of regulation 13B.02.03.02-1, the Secretary may establish program review fees for singular and multiple options submitted under this regulation. A request that a sequential arrangement be approved as an area of concentration must be submitted to the Commission by June 30, 2017. The Commission has delegated to the Secretary the responsibility and authority to act in its behalf on program proposals for new programs and substantial modifications submitted by institutions of higher education operating in Maryland under Education Article, §§11-206 and 11-206.1, Annotated Code of Maryland. Delegation Subject to Conditions and Limitations. The Secretary shall prepare and present a report to the Commission at each meeting summarizing all actions taken since the prior report, and the report may include: The name of the program proposal or articulation agreement; The degree to be offered; The name of the proposing institution; The relationship to institutional and segment role and mission; The relationship to the goals, objectives, and initiatives of the State Plan; and The disposition of the program proposal. If the Secretary approves, disapproves, recommends for, or recommends against a program proposal, the proposing or objecting institutions are entitled, on request, to have the matter reviewed by the Commission in accordance with the Commission's procedures in Regulation .28 of this chapter. The Secretary shall report to the Commission every 2 years on programs experiencing low productivity. Four long-term goals, quality, access and choice, accountability, and HBI enhancement, guide the Commission's program approval responsibilities, with each goal having the following focus: Quality shall focus on the effectiveness of institutional actions, including: The extent to which an institution fulfills its stated mission; The centrality of a proposed program to the institution's approved mission; and The adherence of a proposed program to commonly accepted standards of academic practice as found in Regulation .06 of this chapter; Access and choice for Maryland citizens to higher education shall focus on the needs of citizens for higher education programs, services, and research, including: Financial assistance; Transferability of credit; Economic development; Equal opportunity concerns; and Expansion of educational opportunities and choices for minority and educationally disadvantaged students at institutions of higher education; Accountability shall focus on whether there is a comprehensive set of reliable and valid indicators, appropriate to the mission of the institution, which can assess an institution's effectiveness in delivering the proposed program; and HBI enhancement shall focus on whether the proposed program advances the expansion of mission, program uniqueness, or institutional identity at HBIs. A program proposal for a new program shall address the following areas: Centrality to mission and planning priorities, relationship to the program emphasis as outlined in the mission statements, and an institutional priority for program development; Critical and compelling regional or Statewide need as identified in the State Plan; Quantifiable and reliable evidence and documentation of market supply and demand in the region and service area; Reasonableness of program duplication, if any; Relevance to the implementation or maintenance of high-demand programs at HBIs; Relevance to the support of the uniqueness and institutional identities and missions of HBIs; Adequacy of curriculum design, program modality, and delivery to related learning outcomes, consistent with Regulation .10 of this chapter; For public institutions, adequacy of articulation and transfer planning, consistent with Regulation .19 of this chapter; Adequacy of faculty resources, consistent with Regulation .11 of this chapter; Adequacy of library resources, consistent with Regulation .12 of this chapter; Adequacy of physical facilities, infrastructure, and instructional equipment, consistent with Regulation .13 of this chapter; Adequacy of financial resources with documentation, consistent with Regulation .14 of this chapter; Adequacy of provisions for evaluation of program, consistent with Regulation .15 of this chapter; Consistency with the Commission's minority student achievement goals; Relationship to low productivity programs identified by the Commission; and Adequacy of distance education programs under Regulation .22 of this chapter. A program proposal submitted by an institution that is central to the institution's mission statement is eligible for approval or recommendation for implementation. A proposed program shall be: Central to the institution’s mission; Related to the program emphasis as outlined in the mission statement; An institutional priority for program development consistent with the institution’s strategic planning process; and Adequately funded for at least the first 5 years of program implementation. An institution shall demonstrate a commitment to: Ongoing administrative, financial, and technical support of a program; and Continuation of the program for a period of time sufficient to allow enrolled students to complete the program. A proposed program shall meet a critical and compelling regional or Statewide need as identified in the State Plan. A program proposal shall clearly demonstrate demand and need for the program in terms of meeting present and future needs of the region and the State in general. Four kinds of needs may be identified: The need for the advancement and evolution of knowledge; Societal needs, including expanding educational opportunities and choices for minority and educationally disadvantaged students at institutions of higher education; Occupational and professional needs relative to upgrading vocational/ technical skills or meeting job market requirements; and The need to strengthen and expand the capacity of historically black institutions to provide high quality and unique educational programs. The Commission recognizes and supports the tradition of liberal arts education and the need for programs that offer individual and societal benefits independent of manpower or market demand considerations. These programs provide immeasurable returns to the State in part by instilling in citizens a capacity for advanced learning and an understanding of the fundamentals of civilization. Market Demand Data. This section does not apply to programs in the liberal arts and sciences. An institution proposing a new program shall present data projecting market demand and the availability of openings in the job market to be served by the new program. The types of information submitted vary, depending on the program, but may include manpower and employment projections prepared by the Maryland Department of Labor, Bureau of Labor Statistics, Census Data, and the Maryland Department of Commerce as well as professional and trade associations. An institution shall conduct market surveys that clearly provide quantifiable and reliable data from prospective employers on the educational and training needs and the anticipated number of vacancies expected over the next 5 years. In assessing demand for a new program, an institution shall also present data showing the current and projected supply of prospective graduates. Identification of Programs Having Market Demand. The Commission shall identify, on a regular basis, programs that are in market demand in Maryland. For each program identified, the Commission shall also provide an indication of minority participation rates, identifying those programs where minorities are underrepresented. Institutions maintaining a role and mission appropriate and consistent with those fields declared as shortage areas are encouraged to develop specific programs. Proposals submitted in response to a declared shortage area do not need to include additional documentation on market demand and supply data. As an additional indicator of need, an institution shall clearly detail how program success will be defined and measured, particularly if the definition includes measures in addition to the conferral of a degree or certificate. The elimination of unreasonable program duplication is a high priority. Ordinarily, proposed programs in undergraduate core programs consisting of basic liberal arts and sciences disciplines are not considered unnecessarily duplicative. Unreasonable duplication is a more specific concern in vocational/technical, occupational, graduate, and professional programs which meet special manpower needs. The issue of how a proposed program meets an institution's local and State area needs shall be addressed. Evidence demonstrating that a proposed program is not duplicative of similar offerings in the State shall be submitted by the institution. At a minimum, this evidence shall be substantiated on the basis that the proposed program to be offered is not unreasonably duplicative of existing programs in a specific geographically proximate location in the State. Determination of Duplication. In determining whether a program is unreasonably duplicative, the Secretary shall consider: The degree to be awarded; The area of specialization; The purpose or objectives of the program to be offered; The specific academic content of the program; Evidence of equivalent competencies of the proposed program in comparison to existing programs; and An analysis of the market demand for the program. The analysis shall include an examination of factors, including: Role and mission; Accessibility; Alternative means of educational delivery including distance education; Analysis of enrollment characteristics; Residency requirements; Admission requirements; and Educational justification for the dual operation of programs broadly similar to unique or high-demand programs at HBIs. A program shall be established and overseen by qualified faculty. Faculty members in relevant disciplines in collaboration with other appropriate institutional personnel shall participate in the design of courses. The presence of a structured and coherent program of study with clearly delineated program objectives and intended student learning outcomes shall be evident. A program shall result in learning outcomes appropriate to the rigor and breadth of the program. An institution shall provide for assessment of, and shall document, student achievement of learning outcomes in a program. Required courses in the program may not be excessive and shall be consistent with customary expectations for the type of certificate or degree proposed. The program modality shall be appropriate to meet a program's objectives. Advertising, recruiting, and admissions materials shall clearly and accurately represent the program and the services available. A program shall provide students with clear, complete, and timely information on the curriculum, course and degree requirements, nature of faculty/student interaction, assumptions about technology competence and skills, technical equipment requirements, learning management system, availability of academic support services and financial aid resources, and costs and payment policies. The general education courses shall be distributed in a manner consistent with COMAR 13B.02.02.16.E and F. Accreditation Requirements; Conditional Approval. If a professional shall graduate from a program with specialized accreditation, certification, or approval to practice in the State, the program shall meet all appropriate accreditation, certification, or approval standards. The Secretary may grant conditional approval for a program that fails to meet the standards specified in §D(1) of this regulation if the institution begins the process of securing appropriate accreditation, certification, or approval. Except as provided in §D(4) of this regulation, the Secretary’s conditional approval shall be revoked if an institution fails to secure appropriate accreditation, certification, or approval for the program within a time frame consistent with the relevant approval process. The Secretary may extend conditional approval if the institution has made substantial progress in securing appropriate accreditation, certification, or approval for the program. If an institution contracts for instructional services in the State, to be provided by another institution or a non-collegiate organization, these services shall be based on a written contract that provides for institutional control over the quality of the curriculum, instructional staffing, instructional support services, and the integrity of enrollment policies. Faculty resources shall be consistent with COMAR 13B.02.02.17 and shall be adequate and appropriate for a proposed program, taking into consideration the institution's mission and the character of the program to be developed. The minimum educational attainment of the faculty shall be the appropriate degree commensurate with the degree level of the proposed program. The doctorate is the appropriate terminal degree for bachelor’s and graduate programs, however, the Master of Fine Arts (M.F.A.) or another professional degree may be adequate and appropriate for the proposed program. If specialized accreditation or State licensure is an expectation, the number of terminal degree holders shall meet the minimum requirements of the appropriate accrediting association or licensing agency. Programs shall involve credentialed full-time faculty in teaching, program development, and student academic support. Adjunct and part-time faculty are an important and necessary component of some programs. Except in circumstances to be determined by the Secretary, at least 50 percent of the total semester credit hours within the proposed program shall be taught by full-time faculty. Adjunct and part-time faculty shall: Possess the same or equivalent qualifications as the full-time faculty of the institution; and Be approved by the academic unit through which the credit is offered. An institution shall provide ongoing pedagogy training for faculty in evidenced-based best practices, including training in: Pedagogy that meets the needs of the students; The learning management system; and Evidenced-based best practices for distance education, if distance education is offered. Library resources shall be consistent with COMAR 13B.02.02.18 and appropriate to support the proposed program, whether it is to be offered on-site or at an off-campus location. Appropriate library resources may be achieved through one or more of the following: On-site collections; Interlibrary loans; or Computerized access to holdings in other in-State or out-of-State libraries. When formal, cooperative arrangements with other institutions are required to ensure students' access to library holdings, these shall be discussed and accompanied by letters of agreement. For new programs offered at an institution’s principal location, the institution shall ensure that: Physical facilities, infrastructure, and instructional equipment are consistent with COMAR 13B.02.02.20, and adequate to initiate the new program; Spaces are provided for classrooms and for staff and faculty offices; and Laboratories for studies in the technologies and sciences are designed to provide maximum utilization of facilities, materials, and equipment. An institution offering courses off-campus that require laboratory facilities, specialized equipment such as computer terminals and audiovisual aids, or other special resources shall ensure that appropriate facilities and instructional equipment requirements are met. An institution offering distance education shall ensure that students and faculty have adequate access to: An institutional electronic mailing system; and A learning management system that provides the necessary technological support for distance education. The resource requirements of a program shall be consistent with COMAR 13B.02.02.21, and analyzed by the Commission in order to assess the adequacy of the sources of funds to support a quality program. This analysis shall: Ensure that the program will be efficient in its resource utilization; and Assess the impact of the program on the institution's overall need for funds. The institution shall complete forms supplied by the Commission concerning resource categories and expenditure categories: In sufficient detail to permit the Secretary to make a judgment on the adequacy of resources; and With narrative explanation accompanying the entries in the tables. The proposed program shall be supported by at least one of the following sources of funds: Reallocation of existing campus resources, including the discontinuance or downsizing of an existing program or organizational unit; Tuition and fee revenue from students new to the institution enrolling in the new program; Grants and contracts; or Sources, other than those in §C(1), (2), and (3) of this regulation, specifically designated for the program, with backup information and documentation of these resources provided with the proposal. An institution shall set forth instructional supervision and evaluation procedures for each program. These procedures may include evaluation of courses and faculty by students, administrators, and departmental personnel. Curriculum review procedures established by an institution for its program offerings shall: Include standards and guidelines for the assessment of student outcomes as defined for the program; Be consistent with the institutional mission; and Be specified by the institution. An institution shall evaluate a program's educational effectiveness, including assessments of student learning outcomes, student retention, student and faculty satisfaction, and cost-effectiveness. An institution shall set forth appropriate actions and strategies to recruit and retain underrepresented minority students for each new program consistent with: Provisions of the State Plan regarding minority student access; and The institution’s program of cultural diversity. Every 2 years, the Commission shall identify low productivity programs at public institutions. If an identified low productivity program is directly related to a proposed new program, in its program proposal the institution shall address: The fiscal resources, including faculty, administration, library resources, and general operating expenses, currently devoted to the low productivity program; and How those resources may be redistributed to help fund the proposed new program. The Commission encourages institutions to: Explore the opportunities for cooperation with other institutions, within a segment and between segments, offering similar programs; and Document the extent to which cooperative arrangements have been explored. An institution considering a new program or a substantial modification is encouraged to explore cooperative development of these program initiatives. The institution shall follow cooperative degree program guidelines developed by the Commission to assist institutions in establishing these programs. Cooperative programs shall be designated as belonging to one of the degree program categories in this regulation. Requirements for Joint Degree Programs. Two or more institutions may offer a joint degree program in which the cooperating institutions are substantively involved in required course work, faculty exchange, and shared use of facilities. A student enrolled in a joint degree program shall receive a single diploma that bears the names and seals of all cooperating institutions. The proposed program shall be planned by representatives from each cooperating institution. Identical proposals for each institution shall go through the normal program approval procedures for the institutions and segments, including formal approval and recognition by each governing board. A memorandum of understanding between or among cooperating institutions shall be included when the program proposal is submitted. Each institution is responsible for designating a program director. The program directors shall inform each other as they administer the program, select or assign faculty, set common admissions standards, coordinate curriculum modifications, monitor operations, plan budgets, write grants, and establish joint library purchases. Distribution of course work in the major field of study is based on programmatic requirements and the respective strengths of cooperating institutions. The ideal arrangement approximates an even division of curriculum responsibilities between or among the cooperating institutions. The proposed degree shall be consistent with the institutional mission as it is outlined in the State Plan. An arrangement shall exist for recruiting and admitting students and for administration of student support services in joint degree programs. A mechanism shall exist for monitoring and evaluating programs, with provisions for participation by faculty, students, and administrators from each institution involved. Requirements for Primary Degree Programs. One or more institutions may offer a primary degree program. The diploma shall be awarded by the primary institution. The program shall be planned by the institution awarding the degree. However, the institution designated as primary assumes responsibility for ensuring the involvement of other institutions of higher education having particular and complementary strengths in the same or similar program area. The program proposal shall show the actual involvement of other institutions of higher education in such areas as course work, faculty, and facilities. A memorandum of understanding between or among cooperating institutions shall be included when the program proposal is submitted. The primary institution shall offer at least 2/3 of the course requirements. The proposed degree shall be consistent with the institutional mission as it is outlined in the State Plan. Other institutions may participate by the appropriate and complementary addition of courses, faculty, and facilities. Students shall be matriculated at the primary institution as degree candidates in accordance with the policies for degree completion requirements at that institution. Advising and other student services shall be provided by the primary institution but this does not preclude appropriate involvement in these areas by the cooperating institution. The primary institution is responsible for all administrative functions associated with the program, including communication and relationships with the cooperating institutions. The primary institution is responsible for the continuing evaluation of the program in accordance with institutional policies. The evaluation process shall provide an opportunity for the involvement of representatives from cooperating institutions, as appropriate. Prior to Submission. Before submitting a proposal for a new bachelor’s degree program that could affect students transferring from a community college, a public senior higher education institution shall notify all community colleges of the proposed program and proposed implementation date. Before submitting a proposal for a substantial modification to an existing bachelor’s degree program that could affect students transferring from a community college, a public senior higher education institution shall notify all community colleges of the proposed changes and proposed implementation date. Before submitting a proposal for a substantial modification to an existing associate’s degree program that could affect students transferring to or from a public senior higher education institution, a community college shall notify all public senior higher education institutions of the proposed changes and proposed implementation date. Contents of Proposal. A proposal for a new bachelor’s degree program at a public senior higher education institution shall include: A proposed articulation agreement with at least one community college; or Justification for why an articulation agreement is not feasible or applicable. A proposal for a substantial modification to an existing bachelor’s degree program at a public senior higher education institution shall include: For a program that has an existing articulation agreement with at least one community college: Proposed modifications to all existing articulation agreements; or Justification for why revising existing articulation agreements is not feasible or applicable; or For a program without any existing articulation agreement: A proposed articulation agreement with at least one community college; or Justification for why an articulation agreement is not feasible or applicable. A proposal for a substantial modification to an existing associate’s degree program at a community college shall include: For a program that has an existing articulation agreement with at least one public senior higher education institution: Proposed modifications to all existing articulation agreements; or Justification for why revising existing articulation agreements is not feasible or applicable; or For a program without existing articulation agreements: A proposed articulation agreement with at least one public senior higher education institution; or Justification for why an articulation agreement is not feasible or applicable. Subject to §C(1) and (2) of this regulation, all proposed new and modified articulation agreements submitted under §B(1)—(3) of this regulation shall be provisionally signed by the appropriate individual, as identified in COMAR 13B.06.02.13, prior to submission. After Approval. Any new or revised articulation agreement submitted under this regulation shall only be effective when: The new program or substantial modification is approved by the Commission; and The new program or substantial modification is implemented. A provisionally signed new or revised articulation agreement submitted under this regulation may not be made publicly available by any institution unless the new program or substantial modification has been approved by the Commission. The institution shall provide the curriculum and any articulation agreement(s) to all other public institutions within 90 days of the approval. A proposal for a substantial modification shall be submitted to offer an existing on-campus program at an off-campus location, including a regional higher education center. Except as set forth in §C of this regulation, an institution may not submit a program proposal for a new program to be offered as an off-campus program. An institution may submit a program proposal for a new program to be offered at a regional higher education center. An in-State institution maintaining full and unconditional accreditation from an accrediting association recognized by the United States Department of Education and approval from the Commission may respond to the request of a sponsoring agent to offer a previously approved program at an off-campus site selected by the sponsoring agent solely for the sponsoring agent’s employees by submitting a letter of notification to the Secretary. A letter of notification shall describe the program and affirm that there is access to library resources and faculty consistent with the scope and nature of the offerings. A program may be offered through traditional means as well as through various distance education formats. General Public. The general public may not be recruited or admitted to these programs. If an institution elects to open the program beyond the sponsoring agent’s designated employees, the Commission's policies and procedures for off-campus programs apply. An institution may not utilize distance education as a program modality unless the institution: As of January 1, 2018, offers at least one distance education program that has been approved by the Commission and that has received appropriate designation from the institutional accreditor; or Is designated by the Secretary, under §B of this regulation, as an institution eligible to provide distance education. Designation as an Institution Eligible to Provide Distance Education. An institution of higher education operating in the State that is required to have a certificate of approval from the Commission under COMAR 13.02.01 or 13B.02.02 may request that the Secretary designate the institution as eligible to provide distance education. An institution desiring to be designated as eligible to provide distance education shall submit an application to the Secretary, on a form prescribed by the Secretary, that: Demonstrates that: Distance education is consistent with the institution's mission; Institutional resources and the source of funds to support distance education are sufficient; Academic oversight, quality control, and student services to be provided shall be sufficient to provide distance education; Student supports, including but not limited to technical support, learning resources such as library resources, student support services such as disability services, and student services such as financial aid, academic advising, and career planning, shall be sufficient to support students enrolled in distance education; and Faculty supports shall provide for best practices and pedagogy in distance education; and Includes: A list of intended programs to be offered as distance education; An affirmation that a program’s curriculum and objectives shall be coherent, cohesive, and comparable regardless of program modality; A signed statement from the President of the institution that the institution shall comply with the C-RAC guidelines; and Any complimentary materials submitted to the institutional accreditor for approval to offer distance education. The Secretary shall review a complete application submitted under §B(2) of this regulation and shall: Approve the application if it satisfies the criteria set forth in §B(2) of this regulation; or Disapprove the application, and provide a description of the reasons that the application did not satisfy the criteria set forth in §B(2) of this regulation. An institution offering distance education shall comply with the C-RAC guidelines. In reviewing a program proposal, Commission staff shall discuss the proposal with institutional or segmental personnel involved with the program. If the Secretary determines that additional expertise is needed to evaluate a program, the Secretary may retain one or more outside consultants. The Secretary and the institutional or segmental administrators shall agree on the selection of a consultant and on an appropriate time frame. The proposing institution is responsible for the costs incurred for a consultant's work. For an on-site visit, an institutional or segmental representative shall join the team as a resource person. Degree Levels. The degree levels described in this regulation are available to institutions in this State, as approved in accordance with COMAR 13B.02.02.10. Public community colleges and senior public higher education institutions shall comply with the credit hour standards of COMAR 13B.02.02.16A(1) and B(1). Associate of Applied Science (A.A.S.). An institution may award an Associate of Applied Science (A.A.S.) degree for successful completion of not less than 60 and not more than 70 credit hours in vocational-technical occupational skills, including law enforcement, computer technology, and engineering technology. The program is intended for a student seeking immediate employment opportunities. However, the program does not preclude a student from transferring to a technical bachelor’s degree program such as a bachelor's degree in technology or a bachelor's degree in technical or professional studies, or from transferring non-technical courses to a 4-year institution. Associate of Arts (A.A.). An institution may award an Associate of Arts (A.A.) degree for successful completion of not less than 60 and not more than 70 credit hours in the liberal arts (social sciences, humanities, and similar subjects) and in the fine arts (music, art, etc.). The program is intended for transfer to an equivalent Bachelor of Arts (B.A.) degree program at 4-year institutions. An institution may award an Associate of Art in Teaching (A.A.T.) degree that: Meets the lower-level degree academic content, outcomes, and requirements for teacher education, similar to the first 2 years of a bachelor’s program in teacher education; Requires either: A 3.0 cumulative grade point average on a 4.0 scale; or A 2.75—2.99 cumulative grade point average on a 4.0 scale and qualifying scores on the basic skills assessment for teacher licensure as established by the State Superintendent of Schools and as approved by the State Board of Education; and If achieved, transfers up to 70 credit hours, satisfying all lower-division teacher education program outcomes without further review by in-State 4-year public and independent institutions. An institution may award an Associate of Fine Arts (A.F.A.) degree for successful completion of not less than 60 and not more than 70 credit hours in the professional arts in programs that: Have as a primary goal transfer to a Bachelor of Fine Arts (B.F.A.) degree program; Are similar to the first 2 years of a B.F.A. degree program; and Require at least 60 percent of the course credit to be in studio work and related areas. Associate of Science (A.S.) An institution may award an Associate of Science (A.S.) degree for successful completion of not less than 60 and no more than 70 credit hours in science or technology (engineering, agriculture, the natural sciences) with a heavy emphasis on undergraduate mathematics or science. The program is intended for transfer to a Bachelor of Science (B.S.) degree program at 4-year institutions. Associate of Science in Engineering (A.S.E.). An institution may award an Associate of Science in Engineering (A.S.E.) degree that: Meets the lower-level degree academic content, outcomes, and requirements for engineering education, similar to the first 2 years of a bachelor’s parallel program in engineering education; Requires at least a 2.0 on a 4.0 grade scale in all courses required by the program in computer science, engineering, mathematics, and the physical and natural sciences; and If conferred, transfers without further review or course-by-course match by in-State 4-year public and participating independent institutions into a bachelor’s parallel program, except that transfer students may be treated like non-transfer students with regard to credit hours earned through Advanced Placement (AP), International Baccalaureate (IB), and transcripted credits. The Commission shall convene a continuous review committee for each A.S.E. degree area, such as electrical engineering. Each continuous review committee shall be composed of faculty with relevant expertise in that area of study from in-State 2-year and 4-year public and independent institutions with approved engineering programs. Outcomes for each A.S.E. degree area shall be reviewed by the appropriate continuous review committee to ensure that outcomes are consistent with current standards. The committees shall meet at least once a year for the purpose of conducting this review. The president or president's designee of an in-State 4-year independent institution that wishes to participate in the Statewide articulation agreement shall submit a letter to the Secretary stating that the A.S.E. shall transfer to its institution without further review or course-by-course match, except that credit hours earned through Advanced Placement (AP), International Baccalaureate (IB), or transcripted credit, may be treated as they would be with non-transfer students at the institution. An institution may award a Bachelor of Arts (B.A.), Bachelor of Fine Arts (B.F.A.), or Bachelor of Science (B.S.) degree for successful completion of a program of 120 or more undergraduate credit hours. Bachelor of Technical Studies (B.T.S.) or Bachelor of Professional Studies (B.P.S.). An institution may award a Bachelor of Technical Studies (B.T.S.) or Bachelor of Professional Studies (B.P.S.) degree of at least 120 credit hours awarded for the successful completion of an A.A.S. degree, an advanced program of study in the designated area of concentration, and a minimum three-credit hour internship related to the program. Under an articulated agreement, students who have completed an A.A.S. degree may obtain a Bachelor of Technical Studies or a Bachelor of Professional Studies in a related, specialized area of concentration at an institution with degree-granting authority in this State. The area of concentration shall be specified by the institution granting the Bachelor of Technical Studies or Bachelor of Professional Studies. The receiving institution shall accept not less than 60 credit hours and not more than 70 credit hours for the Associate of Applied Science (A.A.S.) degree. The Commission shall provide information on technical or professional fields that have graduated significant numbers of students and for which one or more community colleges request an articulated bachelor of technical or bachelor of professional studies degree. Institutions that wish to participate in developing a Bachelor of Technical Studies or Bachelor of Professional Studies shall meet and develop an articulation agreement. The program shall include an internship which encompasses specific competencies and is a minimum of three credit hours. The program shall be made available at the principal location or other convenient locations, or both. The program may also be delivered through distance education. The articulation agreement shall be submitted together with a program proposal under this chapter. The articulation agreement shall specify whether the internship may be completed as part of the programmatic requirements for the A.A.S. degree. An institution may award a Master's Degree for successful completion of at least 30 credit hours or the equivalent of graduate-level courses. An institution may award a Doctoral Degree for the highest level of formal collegiate study in a field, typically requiring successful completion of at least 60 credit hours or the equivalent at the graduate level, including completion of a dissertation, final project, or other form of culminating academic work. The following certificates are available to institutions in this State, as approved in accordance with COMAR 13B.02.02.10. An institution may award: A lower division certificate for successful completion of at least 12 semester credit hours at the freshman or sophomore levels, or both. An upper division certificate for successful completion of at least 12 semester credit hours at the junior or senior levels, or both. A post-baccalaureate certificate for successful completion of at least 12 semester credit hours at the graduate or upper divisional level, the majority of which are at the master's or specialized postgraduate level. A post-master's certificate for successful completion of at least 12 semester credit hours of graduate study beyond the master's degree. A certificate of advanced study for successful completion of at least 30 semester credit hours of graduate study beyond the master's degree. A professional certificate for successful completion of the number of courses required by the appropriate national professional association. Directed Technology Certificates. An institution may award a directed technology certificate for completion of a specialized learning program developed by the institution specifically for employer training needs at a closed site. A directed technology certificate is designed as a sequence of courses that meets specific training objectives. Its purpose is to dramatically shorten the start-up time for credit training programs and to provide a useful credentialing function for those desiring a formal award. The certificate may be awarded for successfully earning at least 12 semester credit hours, but no more than 24 semester credit hours. An institution shall provide a copy of the curriculum and evidence that: The curriculum for the certificate has been developed in consultation with a specific employer or employers to meet specific training needs; The curriculum has been reviewed by the appropriate curriculum approval bodies at the institution; A content specialist will be assigned to ensure high standards and maintain written documentation about the curriculum; and Financial resources are adequate to support the curriculum. The Secretary may grant approval to offer or may recommend offering of a directed technology certificate program for a period of 3 years and may renew the approval or recommendation after the third year on application by the institution. The president of the institution shall submit to the Secretary a letter of request that responds to the requirements of this regulation. The review of a program proposal for a directed technology certificate shall be processed and a decision made within 30 days after it is submitted to the Secretary. New Certificate in Existing Degree Programs. A program proposal for a new certificate in an existing degree program may be made in a brief, one-page document that: Explains the centrality of the proposed certificate program to the mission of the institution; Provides evidence of the market demand for the proposed certificate program; Sets out the curriculum design; and Shows that adequate faculty resources exist for the proposed certificate program. Favorable action on a completed program proposal by the Secretary constitutes final program approval or endorsement. If the Secretary does not approve or recommend the program proposal, the Secretary shall provide a written explanation of the reasons. Following the Secretary's decision on a proposed certificate program, an institution may elect to: Revise a proposal to address the Secretary's reasons for disapproval or non-recommendation and submit the revised proposal for reconsideration; or Have the matter reviewed by the Commission in accordance with the appeal procedure in Regulation .27 of this chapter. Health Occupation Shortage Programs. Any student who is a resident of this State and enrolls at a community college in a program that the Commission has designated as a health occupation shortage program, shall pay only the student tuition and fees payable by a resident of a county that supports the community college, and the Commission shall pay any applicable out-of-county fee. The Maryland Department of Health shall determine which health occupations are in short supply in the State and report the determinations to the Commission. The Commission shall designate the eligible health occupation shortage programs determined to be in short supply annually to the community colleges. Statewide Programs. Community colleges have developed increasing numbers of specialized technical programs designed to prepare students for immediate employment. Many of these technical programs are offered at several community colleges because of large student enrollment and high employment availability. With the development of an increasing number of highly specialized technical programs, however, the duplication of certain programs by neighboring colleges, or colleges within a geographical region, may be prohibitively expensive to both the local political subdivision and the State. Statewide designation includes: Programs not available at the community college in the student's county of residence; or Programs at the community college in the student's county of residence that have reached the program's enrollment capacity and cannot enroll additional students meeting the program's academic requirements. The Statewide designation process applies to both existing programs and new programs. Upon endorsement by the local board of trustees, the requesting institution shall petition the Secretary to designate the program as Statewide by responding to the general criteria listed in §B(4) of this regulation. The program, if so designated, is eligible for out-of-county tuition reimbursement by the State. The general criteria for Statewide designation are: Maximization of student access to programs; The ability of the college to accommodate additional students; The need for additional students to sustain the program; The unit cost of the program; Uniqueness of the program; and Current labor market demand for graduates of the program in the region. When limited funds are available, priority shall be given to programs that: Address designated health occupation shortage areas; Are unique; Address employment shortage areas determined by appropriate State agencies; and Are designed to meet the requirements of new technology-oriented State or regional industries. The designation of a program as Statewide does not preclude a community college from proposing the same program for its political subdivision. While the existence of the Statewide program shall be taken into account, the proposed program shall be evaluated on its merits, considering the number of job openings, student demand, and cost. If the Secretary determines there is no longer a need for a program to be designated as health occupation shortage or Statewide, the health occupation shortage or Statewide program designation may be discontinued. In these cases, a community college shall continue to receive reimbursement for the out-of-county differential for students already enrolled in the program. Submission of a Program Proposal. If a proposed program can be implemented using existing resources, the program proposal may be submitted simultaneously to the institution’s governing board and the Secretary. Otherwise, the program proposal will be approved by the appropriate governing board before submission to the Secretary. A program proposal from a public institution must provide documentation as required by Education Article, §11.206.1(c), Annotated Code of Maryland. Within 10 days after receipt of a program proposal, the Commission: Shall notify an institution of the status of the institution’s proposal; and May request documentation deemed to be missing or insufficient in response to the program review parameters. A program proposal is not considered to be complete until the applicant submits supporting documentation requested by the Commission. The submission of substantial supplemental information beyond that requested by the Commission may cause a program proposal to be changed significantly, and thereby cause the proposal to be considered a new submission, triggering another 60-day review. Review of a Program Proposal. The Secretary shall review each program proposal according to the criteria for program review in Regulation .06 of this chapter and the delegation of the Commission authority in Regulation .04 of this chapter. Immediately after receipt of a completed program proposal, the Secretary shall: Inform all institutions and segments of the proposal; and Allow a 30-day period for comments and objections. The Secretary or an institution may file an objection to implementation of a proposed program if the objection is based on: Inconsistency of the proposed program with the institution’s approved mission; Not meeting a regional or Statewide need consistent with the State Plan; Unreasonable program duplication which would cause demonstrable harm to another institution; or Violation of the State’s equal educational opportunity obligations under State and federal law. If an objection is filed under §B(3) of this regulation, the Commission shall immediately notify the proposing institution’s governing board and president. The Secretary shall determine that an institutional objection is justified if it is based upon the criteria in §B(3) of this regulation and is accompanied by detailed data and information supporting the reasons for the objection. The Secretary may request additional information from the proposing or objecting institutions. If the Secretary determines that an objection is justified under §B(5) of this regulation, the Secretary shall negotiate with the proposing institution’s governing board and president, or designees, to modify the proposed program in order to resolve the objection. The Secretary may invite representatives of the objecting institution to any negotiations. If the objection cannot be resolved within 30 days of receipt of an objection, the Secretary shall make a final determination on the proposed new program unless the respective representatives of the proposing and objecting institutions agree to a longer negotiation period. The review shall be completed within 60 days of the date the Secretary determined that the program proposal was complete unless the deadline is extended with the agreement of the proposing institution. Final Action by the Secretary. Favorable Action. Unless there is a request for a Commission review, favorable action by the Secretary on a completed program proposal constitutes final program approval or recommendation, and final degree authorization, if required. An institution shall implement an approved or recommended program in accordance with the approved program proposal and the conditions set by the Secretary. The Secretary may request an institution to submit a progress report responding to the original proposal and any conditions that may be imposed. Unfavorable Action. If the Secretary does not approve or recommend the program proposal, the Secretary shall provide a written explanation of the reasons for the disapproval or non-recommendation. Following the Secretary’s decision, an institution may elect to: Revise the proposal to address the Secretary’s reasons for disapproval or non-recommendation and submit the revised proposal for reconsideration; or Have the matter reviewed by the Commission in accordance with Regulation .28 of this chapter. A revised, resubmitted program proposal is considered a new proposal for purposes of the statutory 60-day time frame for Commission action. Request for Review. Subject to the requirements of §B of this regulation, the Commission shall review a decision of the Secretary on a program proposal at the request of the president of an institution as provided in this section. If the Secretary disapproves or does not recommend a program, the president of the proposing institution may ask the Commission to review the Secretary’s decision. If the Secretary approves or recommends a program, the president of an institution that objected during the Secretary’s review within the time frames established by this chapter may ask the Commission to review the Secretary’s decision. Prerequisites to Review. The Commission shall accept a request for review of a decision of the Secretary on a program proposal, if the requirements of this section are met. Within 10 days of the issuance of the Secretary’s decision, a president seeking the Commission’s review of that decision shall send notification to the Secretary of its request for a review, and the Secretary shall immediately transmit the notification to the Commission chairperson. Unless the Commission finds that an exigent circumstance prevented a president from meeting the requirements of this section, the Commission may not accept a request for review of a decision of the Secretary on a program proposal if the requirements of this section are not met. Notification to Involved Institutions. Within 3 business days of receipt of a request for review from a proposing institution, the Secretary shall notify any objecting institutions. Within 3 business days of receipt of a request for review from an objecting institution, the Secretary shall notify the proposing institution and any other objecting institutions. Scheduling of Review Meeting. The Commission chairperson shall schedule a meeting to review the decision of the Secretary no less than 6 weeks after the Secretary’s receipt of the request for review. The Commission chairperson may not schedule the meeting to review the decision more than 10 weeks after receipt of the request for review without the consent of the presidents of the proposing and objecting institutions. If the Commission chairperson is unable to schedule the meeting to review the decision of the Secretary at a regularly scheduled Commission meeting within the time period specified in this section, the Commission chairperson shall convene a special meeting at an appropriate date and time within the time period. The meeting may be held in person or virtually, at the discretion of the Commission chairperson. Submission of Materials to Commission. Within 10 business days of the receipt of a request for review, the Secretary shall compile and transmit to the Commissioners, the president of the proposing institution, and the presidents of any objecting institutions the following materials: The proposal; Any objections to the proposal; Any responses to any objections to the proposal; The Secretary’s decision letter; Any materials the Secretary received during the course of negotiation with the involved institutions; Any other materials the Secretary reviewed in order to make a determination regarding the proposal; A memorandum describing all attempts by the Secretary to promote collaboration or arbitrate between the relevant institutions, including any negotiation meetings with one or more of the involved institutions; and Any other materials the Secretary deems relevant to the request for review. No less than 3 weeks prior to the scheduled meeting, the president of the proposing institution and the presidents of any objecting institutions shall submit to the Commission, in care of the Secretary, with copies to all involved institutions, a memorandum containing a detailed rationale for the institution’s position based on the relevant COMAR provisions in this chapter. The memorandum may reference any of the materials transmitted by the Secretary under §E(1) of this regulation and may not include any additional materials. The chancellor of the University System of Maryland, the president of the Maryland Independent College and University Association, or the president of the Maryland Association of Community Colleges may provide written comment regarding the review by submitting it to the Commission, in care of the Secretary, with copies to all involved institutions, no less than 3 weeks prior to the scheduled meeting. All materials received by the Secretary under this section shall immediately be forwarded to the Commissioners. Conduct of the Review Meeting. The Commission chairperson, vice chair, or designee shall preside over the meeting, which shall be held in open session. Each president shall have 15 minutes, without interruption, to present to the Commissioners. The president may delegate a portion of the presentation to the chief academic officer. No other individuals may speak on behalf of an institution without prior permission of the Commission chairperson. Permission shall be requested no later than 2 weeks prior to the scheduled review meeting by sending a request to the Commission chairperson, in care of the Secretary. The Commission chairperson shall approve or deny the request within 3 business days of receipt. Not later than 1 week before the review meeting, the president of the proposing institution and the presidents of any objecting institutions shall inform the Commission chairperson, in care of the Secretary, of the name and title of each individual who will be speaking with or for them and any additional staff or individuals who will be present to answer questions from the Commissioners. The presentations shall focus on the key points of the institution’s rationale for their position, based on the relevant COMAR provisions, and clarification or rebuttal of any of the materials submitted by the Secretary, an institution, or a segment leader. The Commission chairperson, vice-chair, or Commissioner presiding over the meeting shall determine the appropriate order of the presentations and notify the Secretary no later than 3 business days before the review meeting. The Secretary shall immediately transmit the presentation order to the presidents of the involved institutions. If a quorum cannot be established prior to the start of the review meeting, the review meeting shall be postponed to the next regular meeting of the Commission. Upon recognition by the Commission chairperson, vice-chair, or Commissioner presiding over the meeting, after each presentation, Commission members may ask questions of the Secretary or Commission staff, or any representative of an institution that has already presented. All institutional representatives must be recognized by the chairperson, vice-chair, or Commissioner presiding over the meeting prior to speaking. Commission’s Decision. The Commission shall render a decision that is consistent with the requirements of this chapter and any other applicable State and federal law. Upon completion of the presentations, the Commission shall discuss the presentations and materials. All discussions and deliberations shall occur in open session. After all Commissioners have been heard, the chairperson, vice-chair, or Commissioner presiding over the meeting shall, in open session, introduce a motion to: Approve or recommend for implementation the proposed program, as submitted; Approve or recommend for implementation the proposed program, with conditions; or Deny or not recommend for implementation the proposed program. In order to pass, any motion shall be approved by a majority of the members then serving on the Commission. After the motion has been seconded, a roll call vote on the motion shall be held in open session. If the motion does not pass, any Commissioner may introduce a different motion and, if the motion is seconded, the chairperson, vice-chair, or Commissioner presiding over the meeting shall hold a roll call vote on that motion in open session. If no motion is introduced that is approved by a majority of the members then serving on the Commission, the decision of the Secretary shall stand. Not later than 5 business days after the review meeting, the Secretary shall send a letter to all presenting institutions, documenting the outcome of the review meeting, including any conditions that may have been approved by the Commission. The decision of the Commission, or, if the Commission was not able to come to a decision, the decision of the Secretary, is final, and is not subject to reconsideration by the Commission or review by any administrative or judicial body. Subject to COMAR 13B.02.03.22, an institution that has received approval to operate a program may add, change, suspend, or discontinue a program modality if the institution provides advance notice to the Commission in accordance with §B of this regulation. An institution’s notice to the Commission shall include: The name and degree of the program; The HEGIS and CIP code of the program; A description of, and rationale for, the addition, change, suspension, or discontinuation of program modality; An affirmation that the program’s most recently approved curriculum and objectives are coherent, cohesive, and comparable, regardless of program modality; The planned implementation date of the addition, change, suspension, or discontinuation of program modality; and For any suspension or discontinuation of a program modality: The number of students enrolled in the program who are using that program modality and their expected graduation dates; and A plan that covers each of the students using the program’s modality to ensure that: The student’s time to completion of the program is not increased; and Students and faculty continue to have access to course material, student services, and academic support for the duration of the program. The Commission shall review the notice to determine whether it is complete under §B of this regulation, and whether the program subject to the modality change received approval from the Commission. If, upon review of the notice, the Commission determines that the notice is incomplete or that the program has not received Commission approval: The Commission shall notify the institution of the missing information or the lack of approval; The institution shall withdraw the notice, submit the missing information, or submit a program proposal or substantial modification proposal, as applicable; and The institution may not commence a program until it has been approved by the Commission under this chapter. Effect on Conditional Program Approvals. This regulation may not be construed to expand program approval beyond any conditions, including geographic restrictions, that the Commission placed upon the original approval of the program. An institution may not operate a program in violation of the geographic restrictions or other conditions placed upon the program by the Commission unless it first receives approval for a new program, or approval for a substantial modification of the program, under Regulation .03 of this chapter. Education Article, Titles 11 and 16, Annotated Code of Maryland Effective date: July 1, 1980 (7:13 Md. R. 1280) Chapter recodified from COMAR 13.50.05 to 13B.02.03 Regulations .01—.14, Minimum Requirements for Degree-Granting 2-Year Colleges, repealed effective December 14, 1987 (14:25 Md. R. 2662) Regulations .01—.16, Minimum Requirements for Associate Degree-Granting Institutions, adopted effective December 14, 1987 (14:25 Md. R. 2662) Regulation .02B amended effective April 17, 1989 (16:7 Md. R. 812) Regulations .01—.16, Minimum Requirements for Associate Degree-Granting Institutions, repealed effective April 10, 1995 (22:7 Md. R. 537) Regulations .01—.32, Academic Programs — Degree-Granting Institutions, adopted effective July 1, 1996 (23:13 Md. R. 945) Regulation .02B amended effective September 17, 2001 (28:18 Md. R. 1622); October 29, 2001 (28:21 Md. R. 1858); January 26, 2009 (36:2 Md. R. 102); October 19, 2009 (36:21 Md. R. 1593); July 26, 2010 (37:15 Md. R. 999)(2) Regulation .02-1 adopted as an emergency provision effective July 1, 2011 (38:14 Md. R. 788); adopted permanently effective October 17, 2011 (38:21 Md. R. 1279) Regulation .03E amended effective September 17, 2001 (28:18 Md. R. 1622) Regulation .04 amended effective September 17, 2001 (28:18 Md. R. 1622) Regulation .23 amended effective September 17, 2001 (28:18 Md. R. 1622) Regulation .24 amended effective April 15, 2002 (29:7 Md. R. 621) Regulation .25 repealed effective September 17, 2001 (28:18 Md. R. 1622) Regulation .26E amended effective July 24, 2000 (27:14 Md. R. 1343) Regulation .26 amended and recodified to Regulation .25 effective September 17, 2001 (28:18 Md. R. 1622) Regulation .26 adopted effective September 17, 2001 (28:18 Md. R. 1622) Regulation .33 adopted effective September 17, 2001 (28:18 Md. R. 1622) Regulation .33C amended effective June 23, 2003 (30:12 Md. R. 791) Regulation .34 adopted effective October 19, 2009 (36:21 Md. R. 1593) Chapter revised effective April 2, 2012 (39:6 Md. R. 409) Regulation .02B amended effective March 16, 2015 (42:5 Md. R. 487); May 7, 2018 (45:9 Md. R. 462) Regulation .02B amended as an emergency provision effective August 2, 2018 (45:24 Md. R. 1161); emergency status expired effective December 31, 2018 Regulation .02B amended effective March 25, 2019 (46:5 Md. R. 346); November 18, 2019 (46:23 Md. R. 1066); August 22, 2022 (49:17 Md. R. 790); January 31, 2025 (51:25 Md. R. 1142) Regulation .02-1B amended effective May 7, 2018 (45:9 Md. R. 462) Regulation .03E amended effective May 7, 2018 (45:9 Md. R. 462); January 31, 2025 (51:25 Md. R. 1142) Regulation .03F amended effective January 31, 2025 (51:25 Md. R. 1142) Regulation .03G amended effective January 31, 2025 (51:25 Md. R. 1142) Regulation .03-1 adopted as an emergency provision effective December 19, 2014 (42:1 Md. R. 16); adopted permanently effective April 27, 2015 (42:8 Md. R. 608) Regulation .06 amended effective May 7, 2018 (45:9 Md. R. 462); August 22, 2022 (49:17 Md. R. 790); January 31, 2025 (51:25 Md. R. 1142) Regulation .07 amended effective May 7, 2018 (45:9 Md. R. 462) Regulation .10 amended effective May 7, 2018 (45:9 Md. R. 462) Regulation .11H adopted effective May 7, 2018 (45:9 Md. R. 462) Regulation .13C adopted effective May 7, 2018 (45:9 Md. R. 462) Regulation .15C adopted effective May 7, 2018 (45:9 Md. R. 462) Regulation .19 repealed and new Regulation .19 adopted effective August 22, 2022 (49:17 Md. R. 790) Regulation .20 amended effective January 31, 2025 (51:25 Md. R. 1142) Regulation .20A amended as an emergency provision effective August 2, 2018 (45:24 Md. R. 1161); emergency status expired effective December 31, 2018 Regulation .20A amended effective March 25, 2019 (46:5 Md. R. 346) Regulation .22 amended effective May 7, 2018 (45:9 Md. R. 462) Regulation .24 amended effective October 28, 2013 (40:21 Md. R. 1780) Regulation .24D amended effective June 29, 2020 (47:13 Md. R. 642) Regulation .24D, I amended effective November 18, 2019 (46:23 Md. R. 1066) Regulation .28 amended effective December 1, 2024 (51:23 Md. R. 1037) Regulation .29 adopted effective May 7, 2018 (45:9 Md. R. 462) The purpose of this chapter is to establish the procedures by which the Commission determines the status of an institution of postsecondary education as a religious educational institution eligible for exemption from the approval authority of the Commission. An institution of postsecondary education may obtain an exemption as a religious educational institution and operate without a certificate of approval 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. An institution that applies for exemption and that, at the time of application, does not hold a certificate of approval from the Commission may not operate, do business, or offer instruction unless and until the Commission grants the institution an exemption under this chapter. 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. An institution seeking an exemption as a religious educational institution shall submit to the Secretary: An application and a financial statement, both in the form required by the Secretary; The accompanying documentation required by the Secretary, including the proposed catalog of courses, and evidence from the State Department of Assessments and Taxation that the institution is in good standing; and An application fee in the amount of $250. Adequate Financial Resources. An institution seeking an exemption as a religious educational institution shall demonstrate that it possesses adequate financial resources to support the institution's educational program. An institution shall submit a financial statement for the most recent calendar year, or if possible, the 2 most recent calendar years, compiled by an independent accountant, showing, at a minimum, that: The institution holds at least $250,000 in total assets in Maryland; and The total assets of the institution exceed its total liabilities. If the Secretary is satisfied on the basis of the materials submitted that the institution qualifies for exemption from the approval authority of the Commission, the Secretary shall grant the institution an exemption as a religious educational institution. An exemption is valid for 2 years. Upon granting an institution an exemption under this regulation, the Secretary shall designate the date on which the institution’s first renewal application required by Regulation .04 of this chapter shall be submitted to the Secretary. An exempt religious educational institution shall promptly notify the Secretary of any address change. Each religious educational institution granted an exemption under this chapter shall submit to the Secretary every 2 years: An application and financial statements, both in the form required by the Secretary; The accompanying documentation required by the Secretary, including the current catalog of courses, and evidence from the State Department of Assessments and Taxation that the institution is in good standing; and A renewal application fee in the amount of $250. Adequate Financial Resources. An institution seeking a renewal of its exemption as a religious educational institution shall demonstrate that it possesses adequate financial resources to support the institution's educational program. An institution shall submit a financial statement for the 2 most recent calendar years, compiled by an independent accountant, showing, at a minimum, that: The institution holds at least $250,000 in total assets in Maryland; and The total assets of the institution exceed its total liabilities. If the Secretary is satisfied on the basis of the materials submitted that the institution qualifies for renewal of its exemption from the approval authority of the Commission, the Secretary shall grant the institution an exemption as a religious educational institution. A renewal of an exemption is valid for 2 years. Upon granting an institution a renewal of its exemption under this regulation, the Secretary shall designate the date on which the institution’s next renewal application shall be submitted to the Secretary. Hearing. No later than 20 days after receipt of written notification of the denial, an institution denied an exemption under this chapter may request a hearing before the Commission. The hearing before the Commission shall be conducted in accordance with the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and COMAR 13B.04.01. If the institution requests a hearing, the Commission may refer the hearing to the Office of Administrative Hearings. After the hearing provided for in §A(3) of this regulation, the Commission may take the following action: Grant the exemption; Deny the exemption; or Remand the case to the Secretary for further action as directed by the Commission. If the institution does not file a timely request for a hearing, the Secretary's decision becomes the final action of the Commission. Judicial Review. An institution that is denied an exemption by the Commission after a hearing under §A of this regulation has the right to judicial review provided by State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland. The decision of the Commission is considered correct and the institution has the burden of proving otherwise. The Commission shall be a party to the proceeding. A religious educational institution may not advertise that it is approved to operate in Maryland as an institution of postsecondary education. An institution granted an exemption as a religious educational institution under this chapter shall post on its website and in all advertising the following statement: Education Article, §§11-105(o) and (u), 11-201, and 11-202.1, Annotated Code of Maryland Effective date: December 14, 1987 (14:25 Md. R. 2662) Chapter revised effective July 26, 2010 (37:15 Md. R. 999) Regulation .01 amended effective April 4, 2011 (38:7 Md. R. 432) Regulation .02A amended effective April 4, 2011 (38:7 Md. R. 432) Regulation .03A amended as an emergency provision effective July 1, 2011 (38:14 Md. R. 788); amended permanently effective October 17, 2011 (38:21 Md. R. 1279) Regulation .05 amended effective October 29, 2012 (39:21 Md. R. 1379) Chapter revised effective October 28, 2013 (40:21 Md. R. 1780) Regulation .02A amended effective April 24, 2017 (44:8 Md. R. 405) Regulation .02C adopted effective April 24, 2017 (44:8 Md. R. 405) Regulation .05A amended effective June 27, 2022 (49:16 Md. R. 688) Designation of SARA Portal Agency. The Commission is the interstate point of contact for SARA questions, complaints, and other communications. Delegation to Secretary. Except as otherwise provided by this chapter, the Commission delegates to the Secretary the authority to act on its behalf with respect to all matters concerning SARA. Reporting by the Commission. In the manner required under SARA, the Commission shall report information to the Council and to the Southern Regional Education Board. In this chapter, the following terms have the meanings indicated. Terms Defined. “Accredited” means holding institutional accreditation by name as a U.S.-based institution from an accreditor recognized by the U.S. Department of Education. “Commission” means the Maryland Higher Education Commission. “Council” means the National Council for State Authorization Reciprocity Agreements. “C-RAC guidelines” mean the Interregional Guidelines for the Evaluation of Distance Education adopted by the Council of Regional Accrediting Commissions. “In-State institution” means an institution of higher education that holds its legal domicile in the State. “In-State SARA institution” means an in-State institution approved by the Commission to participate in SARA. “SARA” means a State Authorization Reciprocity Agreement overseen by the National Council for State Authorization Reciprocity Agreements and administered by the Southern Regional Education Board, the New England Board of Higher Education, the Midwestern Higher Education Compact, or the Western Interstate Commission for Higher Education. “SARA distance education” means interstate instruction, originating in the U.S. or a U.S. territory, offered by any means where the student and faculty member are in separate physical locations, including, but not limited to, online, interactive video, or correspondence courses or programs. “Secretary” means the Secretary of Higher Education or the Secretary’s designee. This chapter does not affect the obligations of in-State SARA institutions to seek and obtain institutional and programmatic reviews and approvals from the Commission under Education Article, §§11-202 and 11-206, Annotated Code of Maryland. An in-State institution seeking approval to participate in SARA shall submit an application to the Commission in a form prescribed by the Secretary. The Secretary shall, upon receipt of an in-State institution’s complete application to participate in SARA, approve the application if: The applicant is an in-State institution approved by the Commission to operate in Maryland; Programs offered by the institution comply with Education Article, §§11-206 and 11-206.1, Annotated Code of Maryland; The applicant is accredited; The president or chief academic officer of the institution attests that the institution meets and agrees to comply with the C-RAC guidelines; The institution, if it participates in federal Title IV financial aid, has a federal financial responsibility rating of at least 1.5, or, upon justification deemed acceptable by the Secretary, a federal financial responsibility rating of at least 1.0; The institution, if it does not participate in federal Title IV financial aid, would, in the determination of the Secretary, have a federal financial responsibility rating of at least 1.5, or, with justification deemed acceptable by the Secretary, at least 1.0; The institution makes its SARA-related complaint policies and procedures readily available to students, and informs students that they may appeal SARA-related complaints to MHEC pursuant to this chapter; For any course or program potentially leading to professional licensure: The institution notifies students and potential students that the course or program meets the licensing requirements of the state where the students or potential students reside; or The institution notifies students and potential students that it cannot confirm whether the course or program meets the licensing requirements of the state where the students or potential students reside, provides students and potential students with current contact information for applicable licensing boards, and advises students and potential students to determine whether the course or program meets state licensing requirements; The provisional approval criteria in §C of this regulation do not apply; and The applicant has paid the fee required by Regulation .06 of this chapter. Provisional Approval. The Secretary shall, upon receipt of an in-State institution’s complete application to participate in SARA, approve the institution to participate in SARA on a provisional status if the institution meets the requirements of §B(1)—(8) and (10) of this regulation, but: Is on probationary status or the equivalent with its institutional accrediting association; Uses a letter of credit or is under a cash management agreement with the U.S. Department of Education; Is the subject of a publicly announced investigation by a government agency, and the investigation is related to the institution’s academic quality, financial stability, or student consumer protection; or Is the subject of an investigation by the State related to the institution’s academic quality, financial stability, or student consumer protection. Terms and Length of Provisional Status. An in-State institution approved to participate in SARA on provisional status shall meet any requirements the Secretary deems necessary, including enrollment limits, to ensure SARA standards are met regarding program quality, financial stability, and consumer protection. The length of the provisional status of an in-State institution approved to participate in SARA shall be determined by the Secretary and may not exceed 1 year. Application for Removal of Provisional Status. If an in-State institution approved to participate in SARA on provisional status no longer meets the provisional status criteria set forth in §C of this regulation, it may apply in writing to the Secretary for removal of its provisional status designation and approval as an in-State SARA institution. The Secretary shall grant the application if the criteria justifying provisional status no longer apply, and if the institution meets the requirements of §B of this regulation. If the Secretary determines that an in-State institution approved to participate in SARA on provisional status no longer meets the requirements of §B(1)—(8) and (10) of this regulation, the Secretary shall: Provide the institution with a grace period, not to exceed 1 year, in which the institution shall come into compliance with SARA standards, subject to the supervision of the Secretary; or Prohibit the institution from enrolling additional students in SARA distance education, terminate the institution’s SARA participation pursuant to Regulation .08 of this chapter, and allow the institution to continue to instruct students already enrolled in SARA distance education for a period of 6 months. In any 3-year period, the Secretary may grant an institution only one grace period in which to correct noncompliance under §D(4) of this regulation. An in-State SARA institution shall apply to the Commission annually, in a form prescribed by the Secretary, to renew its participation in SARA. The Secretary shall approve the renewal application if the in-State SARA institution continues to meet the requirements set forth in Regulation .04B of this chapter. An in-State institution approved to participate in SARA on provisional status may not renew its provisional status. An in-State institution shall pay annually the SARA application and renewal fees set forth in this regulation. Fees to the Commission. For institutions with less than 2,500 full-time equivalent enrollment, the annual, nonrefundable fee due to the Commission shall be $2,000. For institutions with between 2,500 and 9,999 full-time equivalent enrollment, the annual, nonrefundable fee due to the Commission shall be $4,000. For institutions with 10,000 or more full-time equivalent enrollment, the annual, nonrefundable fee due to the Commission shall be $6,000. Fees to the Council. Fees due annually to the Council to participate in SARA are prescribed by the Council. Scope. This regulation applies to SARA distance education provided by in-State SARA institutions to students residing in Maryland, and to students residing in other states. This regulation does not affect or limit the rights of students or of the State to pursue other remedies available under the law, including the Maryland Consumer Protection Act. A student who receives SARA distance education from an in-State SARA institution may, after the student has exhausted the institution’s procedures for the resolution of grievances, and within 2 years of the incident about which the complaint is made, file a written complaint to the Commission, in a form prescribed by the Secretary, alleging that the institution: Has engaged in dishonest or fraudulent activity; or Has operated a course or a program contrary to practices set forth in the C-RAC guidelines in a way that has harmed the student. A complaint made under §B of this regulation may include, but is not limited to, allegations that the institution provided false or misleading: Recruitment or marketing materials; Job placement data; Information about tuition, fees, or financial aid; Information about admission requirements; Information about the institution’s accreditation; Information about whether course work meets relevant professional licensing requirements or the requirements of specialized accrediting bodies; and Information about the transferability of course work to other institutions. The Secretary shall send a copy of a complaint received under §C of this regulation to the institution that is the subject of the complaint. Within 30 days of the date that the Secretary sends a copy of a complaint received under §D of this regulation to an institution, the institution shall provide a written response in a form prescribed by the Secretary. Within 30 days of the date the Secretary receives the institution’s response under §E of this regulation, or if the Secretary receives no response under §E of this regulation, the Secretary shall issue a notice to the institution containing: The Secretary’s findings regarding the complaint; The actions that the institution shall take, if any, to comply with the requirements set forth in this chapter; and The consequences of failing to take the actions prescribed by the Secretary, which may include the termination of the institution’s participation in SARA under Regulation .08 of this chapter. If the Secretary finds that an in-State SARA institution fails to meet the requirements of this chapter, the Secretary may: Issue a notice of deficiencies to the institution; or If the institution meets the requirements of Regulation .04C of this chapter, permit the institution to participate in SARA on provisional status, subject to the requirements of Regulation .04D of this chapter. Within 20 days of receipt of the notice of deficiencies, the institution shall respond in writing to the Secretary’s notice, setting forth the institution’s objections to the Secretary’s findings. Within 20 days of receipt of the institution’s written response to the notice of deficiencies, or if the Secretary receives no written response, the Secretary shall issue a decision on whether to terminate the institution’s participation in SARA. The Secretary’s decision to terminate an institution’s participation in SARA may be reviewed under Regulation .09 of this chapter. If the Secretary issues a decision to deny an institution’s application to participate in SARA, to deny its renewal application under SARA, or to terminate its participation in SARA, the president of the institution may, within 10 days of issuance of the Secretary’s decision, notify the Commission that the institution seeks the Commission’s review of the Secretary’s decision. If the president of the institution does not notify the Commission that it seeks review of the Secretary’s decision within 10 days of issuance of the decision, the decision shall be final. Within 30 days of notifying the Commission that the institution seeks review of the Secretary’s decision, the president of the institution, in writing: Shall submit to the Commission the grounds upon which the institution objects to the Secretary’s decision; and May request a hearing before the Commission. Within 30 days of receipt of the institution’s written statement, the Secretary shall issue a written statement setting forth the reasons supporting the Secretary’s decision. If the institution has requested a hearing, within 60 days of issuance of the Secretary’s written statement in support of the Secretary’s decision, the Commission shall schedule a hearing to consider the institution’s objections to the Secretary’s decision. At the hearing, the president of the institution or the president’s designee, and the Secretary or the Secretary’s designee, each shall have 15 minutes, or longer at the discretion of the Chairman of the Commission, to present data and arguments to the Commission regarding the Secretary’s decision. Within 10 working days of the hearing or, if no hearing has been requested, within 60 days of issuance of the Secretary’s written statement in support of the Secretary’s decision, the Commission shall issue an order: Affirming the Secretary’s decision; Reversing the Secretary’s decision; or Remanding the decision to the Secretary for further action as directed by the Commission. The Commission’s order is final, and is not subject to reconsideration by the Commission or review by any other administrative or judicial body. Education Article, §§11-105(u), 11-202, and 11-202.2, Annotated Code of Maryland Effective date: December 21, 2015 (42:25 Md. R. 1545) The purpose of this chapter is to: Provide for the assessment of fees on for-profit institutions of higher education under Education Article, §11-203, Annotated Code of Maryland; Provide for the filing of certain financial guarantees by for-profit institutions of higher education under Education Article, §11-203, Annotated Code of Maryland; Provide for the creation and administration of the Maryland Guaranty Student Tuition Fund for For-Profit Institutions of Higher Education; Set forth standards and procedures for processing claims filed by students of for-profit institutions of higher education under Education Article, §11-203, Annotated Code of Maryland; and Set forth reporting requirements for for-profit institutions of higher education operating in Maryland. In this chapter, the following terms have the meanings indicated. Terms Defined. “Adjusted gross tuition and fees” means all revenues received on a cash or accrual accounting basis, less any refunds paid to students, for tuition and fees for all instructional programs or courses enrolled in by students, except for charges for materials, supplies, and books that have been purchased by, and are the property of, a student. “Assessment year” means a 12-month period from July 1 through June 30 in which the Secretary may levy assessments on for-profit institutions of higher education as provided in this chapter. “Commission” means the Maryland Higher Education Commission. Discharge. “Discharge” means the release of a borrower from the obligation to repay his or her loan for any reason. “Discharge” includes, but is not limited to: Loan forgiveness; A discharge through the Closed School Discharge program or the Borrower Defense to Repayment program of the USED; and Loan forgiveness or discharge through the federal Department of Veterans Affairs, federal Department of Defense, or any other federal agency. “Financial guarantee” means a performance bond, or irrevocable letter of credit, in the form and amount the Secretary requires. “For-profit institution of higher education” has the meaning stated in Education Article, §10-101, Annotated Code of Maryland. “Fund” means the Maryland Guaranty Student Tuition Fund for For-profit Institutions of Higher Education. Lender. “Lender” means an entity, institution, or government that lends funds to a student, or on behalf of a student, to pay for charges for tuition or fees. “Lender” includes: A bank, mutual savings bank, savings and loan association, or credit union that is subject to examination and supervision in its capacity as a lender by an agency of the United States or of the state in which its principal place of operation is located; A pension fund that is subject to examination and supervision by an agency of the United States or a state; An insurance company that is subject to examination and supervision by an agency of the United States or a state; In any state, a single agency of the state or a single private nonprofit agency designated by the state to lend funds to a student or manage student loan debt; For purposes of purchasing and holding loans made by other lenders, a student loan marketing association or an agency of any state or the federal government functioning as a secondary market; or The USED, federal Department of Veterans Affairs, federal Department of Defense, and any other federal agency. “Loan servicer” means an entity that collects payments, responds to customer service inquiries, and performs other administrative tasks associated with maintaining a student loan on behalf of a lender. “Non-Title IV adjusted gross tuition and fees” means a school’s adjusted gross tuition and fees minus the amount of Title IV federal financial aid received by the school on behalf of its students. “School” means a for-profit institution of higher education that has received a certificate of approval from the Commission. “Secretary” means the Maryland Secretary of Higher Education. “Student” means an individual who resided in Maryland at the time the individual was enrolled in a school. “Student records” means: A student’s academic record; A student’s account ledger; Evidence of compliance with the school’s admissions requirements; Credit granted for previous academic work; Date of admission, start dates, and withdrawal or completion dates; Reasons for withdrawals, when known; Student transcripts indicating achievements; Tuition and financial aid records, when applicable; and Any other information usually required by institutions of postsecondary education when considering a student for transfer, acceptance of credit, or advanced study. Tuition and Fees “Tuition and fees” means all funds paid by or on behalf of a student for charges assessed by a school for providing an instructional program or course. “Tuition and fees” includes charges assessed for the use of equipment, materials, or supplies that are assessed against all students in the same course or program. “Tuition and fees” does not include charges for materials, supplies, or books that have been purchased by, and are the property of, the student. “USED” means the United States Department of Education. There is a Maryland Guaranty Student Tuition Fund for For-Profit Institutions of Higher Education. The Fund shall be used: In the event of a school closure, to provide a full refund of tuition and fees incurred by a student that have not been reimbursed or discharged; Subject to §B of this regulation, 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 the school fails to: Faithfully comply with all agreements and contracts that it makes with a student; or Comply with any provision of Education Article, Annotated Code of Maryland; and For any other reason directly related to the original purpose of the Fund deemed appropriate by the Secretary. Prior to making a claim under §A(2) of this regulation, a student shall follow the complaint process of the school. If the school does not respond within 30 days after its receipt of a complaint, the student may file a claim under Regulation .08 of this chapter. Each school shall: As prescribed by Regulation .06 of this chapter, provide a financial guarantee to the Commission; and As prescribed by Regulation .07 of this chapter, pay an assessment, if one is levied by the Secretary, into the Fund. The Secretary may not issue a certificate of approval to, and may revoke any certificate of approval previously issued to, a school that fails to comply with the requirements of §A of this regulation. Subject to §E of this regulation, each school annually shall provide the financial guarantee described in §§B and C of this regulation. A financial guarantee: Shall be in the form and amount the Secretary requires, which shall be no less than the amount described in §C of this regulation, and may be greater than the amount described in §C of this regulation; Shall be between the Commission and the surety; Shall be made payable to the Secretary on behalf of the Commission; and Shall be made under the terms and conditions determined by the Secretary, including the conditions that the institution will: Faithfully comply with all agreements and contracts that it makes with a student; and Comply with Education Article, Annotated Code of Maryland. Amount of Guarantee. By each December 1, a school shall provide to the Commission a financial guarantee in an amount equal to the school’s non-Title IV adjusted gross tuition and fees for the prior July 1 through June 30. The Secretary may require a school to increase the amount of the school's financial guarantee pursuant to Education Article, §11-203, Annotated Code of Maryland. The Secretary may make an accounting of the Fund as appropriate. Notwithstanding any other provision of this chapter, the Secretary may issue an annual assessment to each school. An annual assessment shall be based on a percentage of a school’s tuition and fees, for a school year determined by the Secretary, and shall be paid to the Commission by the date determined by the Secretary. If the monies in the Fund are insufficient to pay pending claims, the Secretary may issue a special assessment, in addition to any annual assessment, and each school shall pay the special assessment amount as determined by the Secretary. A student shall file a claim within 3 years of the date the student knew, or reasonably should have known, of facts that might entitle the student to an award under Regulation .04A of this chapter. Claims filed after that date may not be considered, unless the Secretary determines that there are extenuating circumstances that justify or excuse the late filing. In the event of a school closure, claims shall be filed within 3 years of the date of the school’s closure, unless the Secretary determines that there are extenuating circumstances that justify or excuse a late filing. A student making a claim against the Fund shall submit a First Report of Claim Form, prepared by the Secretary and published on the Commission’s website, which shall require the student to submit, at a minimum, the following information: The student’s: Complete name at the time of enrollment and, if different, the student’s current name; Date of birth; Current home address; Current mailing address; Telephone number or numbers; Current email address; Social Security number; Program of study; Degree, certificate, or other award obtained or sought; and Dates of enrollment at the school; The name and campus location of the school against which the claim is made; The basis for the claim, specifying if the claim is based on the: School’s closure; School’s failure to faithfully comply with all agreements and contracts that it makes with the student; or School’s failure to comply with a provision of Education Article, Annotated Code of Maryland; A statement detailing the student’s effort to resolve the claim with the school, including any relevant documentation; A statement of the remedy requested; and A signed statement, compliant with State and federal privacy laws, that the student authorizes representatives of the school, lenders, the USED, and loan servicers to release any and all records, including educational and financial records, to the Secretary in the course of the Secretary’s investigation of the claim. A student who has submitted a claim shall update the Secretary of any change in name, mailing address, email address, or phone number. Loan Discharge Request. A student shall request that the USED and, if applicable, its loan servicer, discharge all or part of the student’s loan if: The student’s claim is based on a school’s closure; and The student is indebted to the USED for monies used to pay tuition and fees to the school. A student’s claim against the Fund for tuition and fees that are subject to discharge may not be processed until the student provides the Secretary with evidence from the USED or loan servicer, as applicable, of a final decision on the student’s loan discharge request. The Secretary may require that a student request a loan discharge in other circumstances prior to adjudicating the claim. The Secretary may seek information needed to process a claim directly from a school, lender, loan servicer, or the USED. Notwithstanding any other provision, a student’s failure to comply with this regulation or to supply any information requested by the Secretary during an investigation or adjudication of a claim may result in a partial or complete denial of a claim. The Secretary may require that a student submit information in addition to the First Report of Claim Form, including but not limited to: Facts and documents that support the claim; An explanation of how the school’s actions injured or damaged the student; The student’s complete transcript, reflecting any degrees, certificates, or other awards received; The student’s financial statement of account with the school, or other documents that indicate charges and payments for tuition and fees; A copy of the student’s request that the USED or loan servicer discharge all or a portion of the student’s loans; and The names of all lenders or loan servicer to whom the Student is indebted for tuition assistance, and the account and current contact information for each. The Secretary may determine the scope of investigation necessary to adjudicate a claim. The Secretary may request information and records from the student, school, lenders, loan servicers, the USED, and others as needed in the Secretary’s judgment. The Secretary shall determine whether to approve or deny a claim. If a claim is approved, the Secretary shall determine the: Amount to be awarded; Time, place, and manner of payment; Conditions upon which payment shall be made; and Order in which payments shall be made. In determining whether to grant or deny a claim and the amount to be awarded for an approved claim, the Secretary may consider the: Basis of the claim; Evidence obtained in the investigation; Damages or injuries sustained by the student as a result of the school’s actions; Student’s participation in a transfer program or teach-out; Student’s progress toward or receipt of a degree, certificate, or other terminal award; Length of any break in the student’s attendance and the reason; School’s efforts to resolve the claim; Amount available and likely to become available to the Fund for payments of claims; Size and number of claims filed or likely to be filed against the school; and Past decisions on similar claims. Claim Based on School Closure. If a claim is based on a school’s closure, the student shall be presumed to have incurred no damages or injuries for tuition and fees if the: Student was awarded the degree, certificate, or other award that the student sought; Student participates in a teach-out or transfer program as approved by the Secretary; Student’s loan is discharged or eligible for discharge; or Claim is for tuition and fees applicable to a semester or term other than the one in which the school closed. A student may overcome the presumption in §F(1) of this regulation by providing proof of damages or injuries notwithstanding the receipt of an award, successful participation in a teach-out or transfer program, or loan discharge. Notwithstanding any other provision of this chapter, a student may not receive an award for loan amounts that have been or are eligible for discharge. Payment Due to School Closure. If the Secretary awards payment to a student because of a school closure, the payment shall first be made to a lender or loan servicer, as applicable, as repayment of the student’s debt to the lender for that portion of the indebtedness that pertains to tuition and fees. As a condition of payment, the lender or loan servicer shall update the student’s credit reports to reflect full or partial satisfaction of the debt, as applicable, and forward confirmation of the update to the Secretary. Upon the request and written authorization of the student, the Secretary may attempt to have the lender or loan servicer discharge all or a portion of the student’s debt. The Secretary’s decision on a claim shall be in writing and mailed to the student and school and shall become final 30 days after the date of the Secretary’s determination unless the student, within the 30-day period, files with the Secretary a written request for reconsideration. The written request shall contain evidence that supports a request for reconsideration. The Secretary’s decision on reconsideration is final. A claimant or other person does not have any right in the Fund as beneficiary or otherwise. The Secretary shall administer the Fund as follows: Monetary payments into the Fund shall be made in the form of a check made payable to the Maryland Guaranty Student Tuition Fund for For-profit Institutions of Higher Education; Monetary payments into the Fund shall be maintained by the State Comptroller, who shall deposit and invest the assets of the Fund. All interest or other return on the Fund shall be credited to the Fund; A penalty assessed against a school shall be deposited into the Fund; The assets of the Fund may not be expended for any purpose other than those specified under Regulation .04A of this chapter; and The Fund shall be a continuing, nonlapsing fund. Any unspent portion of the Fund may not be transferred or revert to the General Fund of the State, but shall remain in the Fund to be used for the purposes specified in Regulation .04A of this chapter. The Commission is subrogated to and may enforce the claim of any student to the extent of any actual or authorized reimbursement from the Fund. When a claim is approved, the Secretary, as agent for the Fund, shall be subrogated in writing to the amount of the claim. The Secretary is authorized to take all steps necessary to perfect the subrogation rights before the claim is paid. If payment of a school’s obligation is made from the Fund, the Secretary may seek repayment of the sums from the school or another responsible person or entity. This provision is enforced through the Office of the Attorney General. The Secretary may appoint an advisory council to whom the Secretary may refer matters pertaining to the Fund. Each school shall file with the Secretary by November 1 of each year: A copy of the school's most recent audited financial statement; A copy of the school's most recent pro-forma statement; and A Financial Reporting Form, as prescribed by the Secretary, that requires, at a minimum, the following information for the most recent year beginning July 1 and ending June 30: The total number of students enrolled in the school; The total amount of adjusted tuition and fees; The total amount of non-Title IV adjusted gross tuition and fees; If applicable under Regulation .14 of this chapter, the percentages of revenue from federal and non-federal funds most recently reported to the U.S. Department of Education under 34 CFR §668.28; and A declaration signed and dated by the chief executive officer of the school under penalty of perjury that the information in the Financial Reporting Form and any attachments are true and correct. The timely filing of the reports in §A of this regulation is a condition of a school's continued approval to operate. Each school shall include the following statement in its student contract, enrollment agreement, and course catalog: “A student may be entitled to make a claim against the Maryland Guaranty Student Tuition Fund for For-profit Institutions of Higher Education (“Student Tuition Fund”) in the case of certain events, including a school closure. The Student Tuition Fund is administered by the Maryland Higher Education Commission. Information about the Student Tuition Fund and instructions for filing a claim may found in Regulations 13B.02.06.01 through .13 of the Code of Maryland Regulations or by contacting the Maryland Higher Education Commission.” Financial Guarantee. In addition to the requirements of Regulation .05 of this chapter, a school shall provide to the Commission a financial guarantee in the amount of $100,000 as security for its performance of duties and responsibilities under this regulation. The Secretary may not issue a certificate of approval, and may revoke any certificate of approval previously issued, to a school that fails to provide a financial guarantee as required in this regulation. If a school does not comply with the provisions of this regulation, the Secretary may utilize the school’s financial guarantee to defray the costs and expenses incurred as a result. If a school fully and timely complies with the provisions of this regulation, as determined solely by the Secretary, the Secretary shall return the financial guarantee in full. A school that decides to close shall immediately, and in any event within 3 business days of its decision to close, notify the Commission in writing of its intention to close and provide an initial closure plan. The initial closure plan shall include: The exact date the school will close and reason for the closure; The last date of instruction for each educational service or program; Notice of whether branch campuses of the institution will close or remain open; If known, notice of whether the school will provide teach-out arrangements; and A list of all students who were enrolled at any time during the 120 days prior to the date of the decision to close. A school that decides to close shall, within 10 business days of its decision to close, provide to the Commission a final closure plan that includes: A timeline for the transfer of all student records to the Commission; A list of all students who were enrolled at any time during the 120 days prior to the date of the decision to close that includes: The student’s full name at the time of enrollment and any name changes submitted by the student; The student’s current enrollment status; and The student’s last known mailing address, email address, and phone numbers; An explanation of how and when the school will notify all students of their rights and options under federal student financial aid programs and this regulation; and For any student who will not be provided a complete educational program: A plan for providing teach-outs or transfers, including details and documentation of any agreements with other institutions; or If no teach-out is contemplated, or for students who do not wish to participate in a teach-out, a plan for making applicable refunds to students within 45 days from the date of closure. If a school closes, prior to the date of closure it shall deliver to the Secretary electronic copies, if available, of the student records for all current and former students. If electronic copies do not exist, the school shall deliver the originals or paper copies of the records. In this regulation, “year” means July 1 through the following June 30. This regulation applies to schools that: Are approved to operate in Maryland under COMAR 13B.02.01 or COMAR 13B.02.02; Are for-profit institutions; Participate in and receive funds through Title IV of the federal Higher Education Act of 1965; and Are approved by the Commission, in its role as State Approving Agency, to enroll students who receive financial assistance for education under the federal Post-9/11 Veterans Educational Assistance Act of 2008. A school described under §B of this regulation may not enroll new Maryland residents unless the percentage of annual revenue from non-federal funds that has been or will be reported to the U.S. Department of Education under 34 CFR §668.28 in 2 of the 3 immediately preceding years is at least 10 percent. Institutional Responsibility. Annually and as part of an institution’s report submitted under Regulation .11 of this chapter, an institution described in §B of this regulation shall: Provide to the Secretary, in the form and manner requested by the Secretary, the percentages of revenue from federal and non-federal funds most recently reported to the U.S. Department of Education under 34 CFR §668.28; and Review the percentages provided under §D(1)(a) of this regulation and the percentages reported in the 2 preceding years to determine if the institution has met the revenue requirements in §C of this regulation. An institution that determines that it has not met the revenue requirements in §C of this regulation shall: Immediately cease enrollment of new Maryland residents; Immediately notify the Secretary; and No more than 30 days after notifying the Secretary, submit a plan to the Secretary outlining the steps the institution will take to come into compliance with the revenue requirements in §C of this regulation by the date the institution’s next report to the U.S. Department of Education under 34 CFR §668.28 is due. Enforcement by Secretary. The Secretary annually shall review an institution’s three most recent revenue percentages provided under §D of this regulation to determine if an institution has complied with this regulation and Education Article, §11-210, Annotated Code of Maryland. The Secretary may issue an order to any institution in violation of this regulation or Education Article, §11-210, Annotated Code of Maryland, to cease and desist enrollment and may impose a fine of up to $5,000. The Secretary is not prohibited from employing any other enforcement mechanism permitted by this chapter or Education Article, Title 11, Annotated Code of Maryland. Subsequent Compliance. An institution in violation of this regulation may, upon submission of its next revenue percentage under §D of this chapter, submit a written request to the Secretary to determine if the institution has come into compliance. The Secretary shall make a determination within 15 days of any request made under §F(1) of this regulation. An institution in violation of this regulation may not enroll new Maryland residents until the Secretary has notified the institution, in writing, that it is in compliance with this section. Education Article, §§11-105(u), 11-203, and 11-210, Annotated Code of Maryland Effective date: January 15, 2018 (45:1 Md. R. 14) Regulation .05 amended effective November 19, 2018 (45:23 Md. R. 1071) Regulation .06 amended effective November 19, 2018 (45:23 Md. R. 1071) Chapter revised effective August 21, 2023 (50:16 Md. R. 727)