In this chapter, the following terms have the meanings indicated. Terms Defined. “Commission” means the Maryland Higher Education Commission. “Enroll” means to register a student, in any semester or other instructional period, in a course in an online program. “Institution” means an institution of higher education that enrolls one or more Maryland students in an online program. “Maryland student” means a student who is domiciled in Maryland on the date of enrollment at an institution. “Online program” has the same meaning as “fully online distance education program in the State” stated in Education Article, §11-202.2, Annotated Code of Maryland. “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. “Secretary” means the Secretary of Higher Education. “State” means a state of the United States, American Samoa, the Commonwealth of Puerto Rico, the District of Columbia, Guam, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau. “State authority” means the higher education certifying, approving, or regulatory authority of a state. This chapter does not apply to an online program that: Is subject to program review by the Commission under COMAR 13B.02.03; Participates in the Southern Regional Education Board’s Electronic Campus; or Is offered by an institution approved by its state authority to participate in SARA. The Commission has delegated to the Secretary authority to act in its behalf on applications for registration filed by institutions under this chapter. An institution that enrolls a Maryland student in an online program: Shall file an application for registration with the Commission before or within 3 months of enrolling the first Maryland student; and Except as provided in Regulation .07B of this chapter, may not commence or continue enrollment of Maryland students without registering with the Commission before or within 3 months of enrolling the first Maryland student. Accreditation Requirement. An institution required to register under this chapter that is not accredited by an accrediting body recognized and approved by the U.S. Department of Education may not receive a registration from the Commission. If an institution’s accreditation is terminated, the institution’s registration 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 §B(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 registration 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 registration 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 §B(4)(b) of this regulation, the Secretary shall withdraw an institution’s registration in Maryland if the institution fails to meet the time periods required by §B(3) of this regulation. The Secretary may, upon conditions that the Secretary deems appropriate, extend for a specified period the time requirements under §B(3) of this regulation. The provisions of §B of this regulation apply to a decision by the USDOE, effective on or after July 1, 2016, to withdraw an accrediting agency’s recognition. An institution seeking registration with the Commission as required in Regulation .04 of this chapter shall submit to the Commission: An application for registration in the form required by the Secretary; An application fee in the amount of: For an institution having an enrollment of no more than 20 Maryland students, $500; and For an institution having an enrollment of more than 20 Maryland students, $1,000; Information on the ownership of the institution; A list of all online programs that will be offered to Maryland students, including program tuition and fee costs for those programs; Documentation that the institution is: Accredited by and in good standing with an accrediting body recognized and approved by the U.S. Department of Education; In good business standing in the state in which the central administration of the institution is incorporated; If the state in which the central administration of the institution is located has a state authority, in good academic standing with that state authority; In compliance with the principles of good practice for distance education established by the Commission in COMAR 13B.02.03; and In compliance with the refund policies in Regulation .10 of this chapter; Documentation that the institution has a process for the filing and resolution of complaints by Maryland students, including informing students that the institution is subject to investigation of complaints by the Office of the Attorney General or the Commission; An affidavit from the President or Chief Executive Officer of the institution affirming that: The institution has not filed for bankruptcy protection under Title 11 of the U.S. Code during its existence; and The President or Chief Executive Officer shall: Abide by the requirements of Education Article, §11-202.2, Annotated Code of Maryland, and this chapter; and Notify the Commission in reference to the matters set forth in Regulation .11 of this chapter; If the institution is or will be enrolling Maryland students before registration is issued, within 30 days of submitting the complete application, a pre-registration financial guarantee as provided for in Regulation .07 of this chapter; and If the institution is a for-profit institution, a continuous financial guarantee pursuant to Education Article, §§11-203, Annotated Code of Maryland, and as provided for in Regulation .12 of this chapter. In addition to the requirements of §A of this regulation, an institution shall submit a copy of the institution's most recent financial statement reviewed by an independent accountant retained by the institution with its first application for registration and with each annual renewal application. An application is complete as of the day on which an institution submits all documentation required in §§A(1)—(7) and A(9) of this regulation for the registration process as determined by the Secretary. If the Secretary finds that the institution is in compliance with the applicable requirements of Education Article, Title 11, Annotated Code of Maryland, and this chapter, the Secretary shall issue registration to the institution. Secretary's Denial of Registration. If the Secretary is not satisfied that an institution is in compliance with applicable requirements of Education Article, Title 11, Annotated Code of Maryland, and this chapter, the Secretary shall issue a notice of deficiencies and preliminarily deny registration to the institution. Within 20 days of receipt of a notice of deficiencies, the institution denied registration may request a hearing before 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. Secretary's Failure to Issue or Deny Registration. If the Secretary fails to issue a registration or a written notice of deficiencies within 6 months of the completed application, the institution may request a hearing before the Commission to determine whether the registration should be issued. The request shall be made within 20 days of the expiration of the 6-month period. Hearing by Commission. The Commission may refer a request for hearing under §E or F of this regulation to the Office of Administrative Hearings. A hearing before the Commission shall be held within 60 days after receipt of the request for 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. Within 30 days of the hearing, the Commission shall render a decision. The Commission may take the following action: Issue registration; Deny registration; or Remand the case to the Secretary for further action as directed by the Commission. Judicial Review. An institution that is denied registration by the Commission after a hearing under §G 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. Scope. This regulation applies to an institution applying for or renewing registration under this chapter if the institution chooses to enroll a Maryland student: Before the institution’s registration is issued by the Secretary; or When the institution's registration has expired. This regulation does not apply to an institution applying for or renewing a registration if the institution does not enroll a Maryland student: Before the institution’s registration is issued by the Secretary; or When the institution’s registration has expired. The institution shall file an application for registration as required in regulation .04A of this chapter and provide a pre-registration financial guarantee to the Commission, as described in this regulation, in order to commence or continue the enrollment of Maryland students. The pre-registration financial guarantee provided for in this regulation is separate from, and additional to, the continuous financial guarantee that is required of for-profit institutions under Regulation .12 of this chapter. An institution that files an application and provides a financial guarantee under this regulation may continue to operate without a registration while the Commission considers the institution's application, conducts a hearing concerning the institution's application, or participates in judicial review regarding the institution's application. The financial guarantee shall be in the form required by the Secretary, shall be between the Commission and the surety, and shall be conditioned that, if the institution is denied registration, the institution shall provide 100 percent refunds of tuition and fees paid to the institution by all Maryland students. The amount of the financial guarantee required under this regulation shall be sufficient to cover 100 percent refunds and fees paid to the institution by all Maryland students. If an institution is denied registration, the institution shall: Immediately notify all Maryland students that their enrollment is terminated as of the date that registration is finally denied; Within 60 days of the date that registration is finally denied, refund to each Maryland student 100 percent of tuition and fees paid to the institution; and Provide documentation to the Commission that all refunds due to Maryland students have been timely made. A registration is valid during 1 fiscal year from July 1 through June 30. A registration issued at any time during a fiscal year expires on June 30 of that fiscal year. An institution seeking registration for the next fiscal year following its current registration shall file an application for registration in accordance with Regulation .06 of this chapter. Except as provided in §B of this regulation, an institution's refund policy shall conform to this regulation and the institution shall provide for refunds of tuition to Maryland students as provided in this regulation. If an institution's refund policy is more beneficial to Maryland students, the institution shall follow its refund policy and provide for refunds of tuition to Maryland students as provided in that policy. Minimum Refund. The minimum refund that an institution shall pay to a Maryland student who withdraws or is terminated after completing only a portion of a course, program, or term within the applicable billing period is as follows: A refund due to a Maryland student shall be based on the date of withdrawal or termination and paid within 60 days from the date of withdrawal or termination. An institution's refund policy for Maryland students shall be clearly disclosed to and acknowledged by students at enrollment. An institution shall maintain documentation to verify that a refund has been made. An institution that is registered under this chapter shall: Promptly notify the Commission of: A change in ownership or a change in majority control; A material change in the institution's financial status; A filing for bankruptcy protection under Title 11 of the U.S. Code; A change in the institution's business standing in the state in which the central administration of the institution is incorporated; Any communication received from the state authority that regulates the institution regarding institutional or program status with regard to online programs in which Maryland students are enrolled; Any communication from the institution's accrediting body that may impact the institution's status with the accrediting body; and Any notice of an adverse action, or potentially adverse action, against the institution by the U.S. Department of Education, including but not limited to any notice to the institution of a reduction of the institution’s financial responsibility composite score. Comply with the principles of good practice for distance education in COMAR 13B.02.03; Make refunds to Maryland students as required by Regulation .10 of this chapter; Make public and post on its website: Information on its registration with the Commission; and The process for Maryland students to make complaints about the institution; and 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 within the State, in a form and manner required by the Secretary; and Enroll no more than 10 Maryland students in a single program placed simultaneously at one site in the State in a supervised internship, practicum, or field experience, or otherwise operate in Maryland as defined in Subtitle 2 of this title, unless it first obtains a certificate of approval from the Commission in accordance with Subtitle 2 of this title. In this regulation, the following terms have the meanings indicated. “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. “Non-Title IV adjusted gross tuition and fees” means an institution’s adjusted gross tuition and fees minus the amount of Title IV federal financial aid received by the institution on behalf of its students. A for-profit institution seeking or renewing registration under this chapter shall provide to the Secretary an irrevocable letter of credit or performance bond, as required by Education Article, §11-203, Annotated Code of Maryland, conditioned that the institution shall: Perform faithfully all agreements or contracts it makes with its students; and Comply with the Education Article, Annotated Code of Maryland. The irrevocable letter of credit or performance bond shall be in the form and amount prescribed by the Secretary and shall conform to the requirements of paragraph D of this regulation. The amount provided for in the irrevocable letter of credit or performance bond shall, unless a higher amount is required by the Secretary, be: If the institution is renewing its registration, an amount equal to the institution’s non-Title IV adjusted gross tuition and fees for Maryland students for the prior July 1 through June 30; or If the institution is seeking initial registration, an amount equal to the institution’s non-Title IV adjusted gross tuition and fees for the students of its principal campus for the prior July 1 through June 30. The irrevocable letter of credit or performance bond shall be between the surety and the Commission. The irrevocable letter of credit or performance bond required by this regulation, and each annual application to renew a for-profit institution’s registration under this chapter, shall be accompanied by a report, in a form prescribed by the Secretary: Certifying the for-profit institution’s: Total number of Maryland students enrolled in the institution or, if the institution is seeking initial registration, total number of students enrolled in the institution’s principal campus; Total amount of adjusted tuition and fees from the enrollment of Maryland students or, if the institution is seeking initial registration, total amount of adjusted tuition and fees from the enrollment of students in the institution’s principal campus; Total amount of non-Title IV adjusted gross tuition and fees from the enrollment of Maryland students or, if the institution is seeking initial registration, total amount of non-Title-IV adjusted tuition and fees from the enrollment of students in the institution’s principal campus; and Enclosing a declaration signed and dated by the chief executive officer of the school, under penalty of perjury, that the information in the report and any attachments to the report are true and correct. Education Article, §§11-105(u), 11-202, 11-202.2, and 24-707, Annotated Code of Maryland Effective date: Regulations .01—.11 adopted as an emergency provision effective July 1, 2012 (39:17 Md. R. 1146); emergency provision repealed effective October 17, 2012 (39:23 Md. R. 1531) Regulations .01—.11 adopted as an emergency provision effective October 17, 2012 (39:23 Md. R. 1531); adopted permanently effective February 18, 2013 (40:3 Md. R. 219) Regulation .01B amended effective December 21, 2015 (42:25 Md. R. 1545) Regulation .02 amended effective October 28, 2013 (40:21 Md. R. 1780); December 21, 2015 (42:25 Md. R. 1545) Regulation .04 amended effective October 28, 2013 (40:21 Md. R. 1780) Regulation .05 amended effective October 28, 2013 (40:21 Md. R. 1780); March 27, 2017 (44:6 Md. R. 327) Regulation .06 amended effective March 27, 2017 (44:6 Md. R. 327); September 24, 2018 (45:19 Md. R. 866) Regulation .06A amended effective November 24, 2014 (41:23 Md. R. 1375) Regulation .07A amended effective September 14, 2018 (45:19 Md. R. 866) Regulation .07A amended effective October 28, 2013 (40:21 Md. R. 1780) Regulation .11A amended effective September 24, 2018 (45:19 Md. R. 866) Regulation .11E adopted effective November 24, 2014 (41:23 Md. R. 1375) Regulation .11E amended effective November 7, 2016 (43:22 Md. R. 1223); September 24, 2018 (45:19 Md. R. 866) Regulation .11F amended effective September 24, 2018 (45:19 Md. R. 866) Regulation .12 adopted effective September 24, 2018 (45:19 Md. R. 866)