Chapter 04. Exemption Procedures for Religious Educational Institutions
Regulation .01 Purpose.LinkCopy Citation
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.
Regulation .02 Scope of Exemption.LinkCopy Citation
A.
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:
(1)
Is established for religious educational purposes;
(2)
Provides educational programs only for religious vocations or purposes;
(3)
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
(4)
States on the certificate or diploma the religious nature of the award.
B.
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.
C.
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.
Regulation .03 Initial Application.LinkCopy Citation
A.
An institution seeking an exemption as a religious educational institution shall submit to the Secretary:
(1)
An application and a financial statement, both in the form required by the Secretary;
(2)
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
(3)
An application fee in the amount of $250.
B.
Adequate Financial Resources.
(1)
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.
(2)
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:
(a)
The institution holds at least $250,000 in total assets in Maryland; and
(b)
The total assets of the institution exceed its total liabilities.
C.
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.
D.
An exemption is valid for 2 years.
E.
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.
F.
An exempt religious educational institution shall promptly notify the Secretary of any address change.
Regulation .04 Renewal Application.LinkCopy Citation
A.
Each religious educational institution granted an exemption under this chapter shall submit to the Secretary every 2 years:
(1)
An application and financial statements, both in the form required by the Secretary;
(2)
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
(3)
A renewal application fee in the amount of $250.
B.
Adequate Financial Resources.
(1)
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.
(2)
An institution shall submit a financial statement for the 2 most recent calendar years, compiled by an independent accountant, showing, at a minimum, that:
(a)
The institution holds at least $250,000 in total assets in Maryland; and
(b)
The total assets of the institution exceed its total liabilities.
C.
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.
D.
A renewal of an exemption is valid for 2 years.
E.
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.
Regulation .05 Denial of Exemption.LinkCopy Citation
A.
Hearing.
(1)
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.
(2)
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.
(3)
If the institution requests a hearing, the Commission may refer the hearing to the Office of Administrative Hearings.
(4)
After the hearing provided for in §A(3) of this regulation, the Commission may take the following action:
(a)
Grant the exemption;
(b)
Deny the exemption; or
(c)
Remand the case to the Secretary for further action as directed by the Commission.
(5)
If the institution does not file a timely request for a hearing, the Secretary's decision becomes the final action of the Commission.
B.
Judicial Review.
(1)
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.
(2)
The decision of the Commission is considered correct and the institution has the burden of proving otherwise.
(3)
The Commission shall be a party to the proceeding.
Regulation .06 Notice to the Public.LinkCopy Citation
A.
A religious educational institution may not advertise that it is approved to operate in Maryland as an institution of postsecondary education.
B.
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:
Chapter annotations
Authority: Education Article, §§11-105(o) and (u), 11-201, and 11-202.1, Annotated Code of Maryland
History: Effective date: December 14, 1987 (14:25 Md. R. 2662)
History: Chapter revised effective July 26, 2010 (37:15 Md. R. 999)
History: Regulation .01 amended effective April 4, 2011 (38:7 Md. R. 432)
History: Regulation .02A amended effective April 4, 2011 (38:7 Md. R. 432)
History: 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)
History: Regulation .05 amended effective October 29, 2012 (39:21 Md. R. 1379)
History: Chapter revised effective October 28, 2013 (40:21 Md. R. 1780)
History: Regulation .02A amended effective April 24, 2017 (44:8 Md. R. 405)
History: Regulation .02C adopted effective April 24, 2017 (44:8 Md. R. 405)
History: Regulation .05A amended effective June 27, 2022 (49:16 Md. R. 688)