COMAR 13B - Complete Version

(b) Comply with any provision of Education Article, Title 11, Annotated Code of
Maryland, or COMAR Title 13B; or

(2) Perform any other function directly related to the original purpose of the Fund
considered appropriate by the Secretary.

D. Each private career school approved to operate by the Secretary shall pay into the Fund the
amount required by this regulation.

E. Payment into the Fund.

(1) An applicant school receiving initial approval shall make an initial payment of $2,500
into the Fund before a certificate of approval is issued.

(2) Approved Schools.

(a) Except as provided in §E(4) of this regulation, an approved school in operation
during an assessment year shall make a payment into the Fund following the end
of the assessment year in the amount of:

(i) .12 percent of the school’s adjusted gross tuition, beginning with the
assessment year that begins on July 1, 2011;

(ii) .165 percent of the school’s adjusted gross tuition, beginning with the
assessment year that begins on July 1, 2012;

(iii) .21 percent of the school’s adjusted gross tuition, beginning with the
assessment year that begins on July 1, 2013; and

(iv) .25 percent of the school’s adjusted gross tuition, beginning with the
assessment year that begins on July 1, 2014, and for each assessment year
that follows.

(b) The minimum amount of the annual payment into the Fund is $250, to be paid
by a school whether or not the school charges tuition.

(c) The payment shall be made to the Commission with the school’s annual report
for that year.

(3) If the Secretary authorizes the operation of a school upon a change in ownership, the
school shall make a payment into the Fund without regard to payments previously made
by the school or its predecessor, under the following conditions:

(a) If a school has been operating for less than 1 assessment year, under its new
ownership, the school shall make a payment into the Fund as an applicant school
under §E(2) of this regulation; and

COMAR 13B - Maryland Higher Education Commission Page | 38 of 458

(b) If a school has been operating for at least 1 assessment year, under its new
ownership, the school shall pay into the Fund as an approved school under §E(2)
of this regulation for the last assessment year of operation under the old
ownership, and the payment shall be due before approval to operate under new
ownership is granted.

(4) An accounting shall be made at the end of each assessment year. If at the end of any
assessment year, the accounting indicates that the Fund contains $2,000,000 or more,
then during the next assessment year an assessment may not be made against the schools.

(5) If the moneys in the Fund are insufficient to satisfy duly authorized claims, the
Secretary may reassess the approved schools as necessary, in addition to the annual
assessment, and the approved schools shall pay the additional amounts assessed.

(6) 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 pay an annual fee or
reassessment to the Fund.

F. The Secretary has the authority to determine whether a claim merits reimbursement from the
Fund and if so, the:

(1) Amount of the reimbursement;

(2) Time, place, and manner of its payment;

(3) Conditions upon which payment shall be made; and

(4) Order in which payments shall be made.

G. A claimant or other person does not have any right in the Fund as beneficiary or otherwise.

H. Claims against the Fund may be paid in whole or in part, taking into consideration the:

(1) Amounts available and likely to become available to the Fund for payments of claims;

(2) Size and number of claims likely to be presented in the future;

(3) Size and number of claims caused by the cessation of operation of a school;

(4) Amounts of reimbursement of claims in the past;

(5) Availability to the claimant of a transfer program.

I. Claims shall be filed with the Secretary on forms prescribed by the Secretary within 3 years of
the Secretary's determination of a school's failure to perform faithfully any agreement or contract
with the students or to comply with any provision of these regulations or of Education Article,
Title 11, Annotated Code of Maryland. Claims filed after that are not considered, unless the

COMAR 13B - Maryland Higher Education Commission Page | 39 of 458

Secretary determines that there are extenuating circumstances which justify or excuse the late
filing.The Secretary may cause to be made such investigation of a claim as the Secretary deems
appropriate. The Secretary's determination, without further investigation, may be based upon
information contained in the records of the Commission.

J. The Secretary's determination concerning payment of a claim shall be in writing and mailed to
the student 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 all the evidence which supports the request for
reconsideration. Evidence furnished in support of a request for reconsideration shall be subject to
the authority of the Secretary to exclude irrelevant or other inappropriate evidence. The decision
of the Secretary is final.

K. The Secretary shall administer the Fund upon the following basis:

(1) Payment into the Fund shall be made in the form of a check made payable to the
Guaranty Student Tuition Fund;

(2) Payments into the Fund shall be maintained by the State Comptroller who shall
deposit and invest the assets of the Fund, and all interest or other return on the Fund shall
be credited to the Fund;

(3) A penalty assessed against a private career school shall be deposited into the Fund;

(4) The assets of the Fund may not be expended for any purpose other than those
specified under §C of this regulation;

(5) In the case of a student who was a recipient of a loan to attend a school which closes,
payment from the Fund shall first be made to the lender of financial aid funds to that
student, to repay the student's indebtedness to the lender for that portion of the
indebtedness that pertains to tuition and fees.

L. 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.

M. When a claim is allowed, the Secretary, as agent for the Fund, shall be subrogated in writing
to the amount of the claim, and the Secretary is authorized to take all steps necessary to perfect
the subrogation rights before payment of the claim. If payment of a school’s obligation is made
from the Fund, the Secretary shall seek repayment of the sums from the school or such other
persons or entities as may be responsible for the school’s obligations. This provision is enforced
through the Office of the Attorney General.

N. Advisory Council.

(1) The Secretary shall appoint an advisory council to whom the Secretary may refer
matters pertaining to the Guaranty Student Tuition Fund.

COMAR 13B - Maryland Higher Education Commission Page | 40 of 458

(2) The advisory council shall meet periodically for the purpose of reviewing matters
pertaining to the Fund that are referred by the Secretary for the council's consideration
and advice.

COMAR 13B - Maryland Higher Education Commission Page | 41 of 458

13B.01.01.19

.19 Repealed.

COMAR 13B - Maryland Higher Education Commission Page | 42 of 458

13B.01.01.20

.20 Sanctions.

A. The Secretary shall deny approval to or withdraw the approval of a school found to be in
violation of these regulations or of the Education Article, Title 11, Annotated Code of Maryland.

B. A school's authority to operate becomes void if instruction does not begin within 6 months
from the date of approval.

C. A school's authority to operate becomes void if all instruction is discontinued unless the
Secretary determines there are extenuating circumstances which justify or excuse the
discontinuation of instruction.

D. A school's authority to offer a program becomes void if instruction in that program does not
occur for a period of 1 year, unless the Secretary determines there are extenuating circumstances
that justify or excuse a school's failure to offer that program.

E. The Secretary may withdraw approval from any school found to be in violation of any
commitment made to the Commission as a prerequisite to the obtaining or maintaining of a
certificate of approval in its application for approval of the school or of a program, or for failing
to report changes in operating circumstances as required in these regulations.

F. The Secretary shall deny approval to or withdraw approval from any school found to have
provided the Maryland Higher Education Commission with false or misleading information.

G. Sanctions.

(1) Notice.

(a) If the Secretary believes that a private career school does not meet the
conditions or standards established by these regulations, or the conditions or
standards on which its certificate of approval or any other approval issued by the
Commission or the Secretary was based, the Secretary shall give the school
written notice as set forth in this section specifying the deficiencies believed to
exist.

(b) The notice shall specify the alleged deficiencies and direct the school to
correct them within a period of not less than 30 days.

(c) If the school requests a hearing within 20 days of the notice, the Commission
shall hold a hearing on the matter. 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.

COMAR 13B - Maryland Higher Education Commission Page | 43 of 458

(d) If a hearing is timely requested, subject to §G(6) of this regulation, action on
the notice of deficiencies shall be stayed until a determination is made after the
hearing.

(e) If a hearing is timely requested, action on any approval request by a school
issued a notice of deficiencies may be stayed until a determination is made after
the hearing.

(2) 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 school or suspend or revoke the school’s certificate of approval or any other approval
issued by the Commission or Secretary.

(3) Instead of, or in addition to, reprimanding a private career school, or suspending or
revoking an approval issued to the school, the Secretary may impose a penalty of up to
$5,000 for each violation of these regulations or of the conditions on which any approval
issued to the school was based.

(4) In imposing any sanctions under this section, the Secretary shall consider one or more
of the following:

(a) The seriousness of the deficiency;

(b) The harm caused by the deficiency including, but not limited to, the number of
individuals affected and the degree to which they were harmed;

(c) The good faith of the school and any corrective actions taken, including all
reasonable steps or procedures taken by the school that are necessary and
appropriate to comply with statutes and regulations and to correct the violations;

(d) Any history of previous deficiencies including, but not limited to, any prior
violations by the school of statutes, regulations, or orders administered, adopted,
or issued by the Secretary;

(e) Other pertinent circumstances.

(5) The amount of a penalty imposed by the Secretary is determined by the criteria listed
in §G(4) of this regulation, and is subject to the following limitations:

(a) The penalty may not be less than $100 per day per violation; and

(b) The total penalty may not exceed $5,000 per violation.

(6) Judicial Remedies.

(a) 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

COMAR 13B - Maryland Higher Education Commission Page | 44 of 458

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.

(b) If a court grants relief before a hearing that was requested on a timely basis,
the Commission shall schedule a hearing in regard to the notice of deficiencies
within 2 weeks of the issuance of the court's order, unless the school requests a
delay. 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.

(7) Judicial Review.

(a) A school 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.

(b) The decision of the Commission shall be presumed correct and the school has
the burden of proving otherwise.

(c) The Commission shall be a party to the proceeding.

(8) Summary Order to Revoke or Suspend Certificate of Approval.

(a) The Commission may summarily order the revocation or suspension of a
certificate of approval of a private career school if:

(i) The school's owner or director, or a person in whose name the approval
is issued, is convicted of a crime of moral turpitude or a crime relating to
the operation of the school if the conviction is final and the period of
appeal has expired; or

(ii) An agency that exercises concurrent authority over the private career
school has revoked any approval to operate required by law if the
revocation is final and the period of appeal has expired.

(b) The Commission may summarily order a revocation or suspension of a
certificate of approval of a private career school under §G(8)(a) of this regulation
only if it gives the school:

(i) Prior oral or written notice of the proposed revocation or suspension,
and a brief, informal opportunity for response;

(ii) Prior or prompt subsequent written notice of the revocation or
suspension and the findings on which the revocation or suspension is
based; and

COMAR 13B - Maryland Higher Education Commission Page | 45 of 458

(iii) After the revocation or suspension is effective, an opportunity to be
heard promptly before the Commission or the Commission's designee.

(c) In any hearing held on the grounds for revocation under §G(8)(a) of this
regulation, the Commission may limit the issues to be determined to whether the
alleged:

(i) Conviction in fact occurred; or

(ii) Revocation under §G(8)(a)(ii) of this regulation in fact occurred.

(d) Notwithstanding §G(8)(c) of this regulation, in any hearing held on the ground
for revocation under §G(8)(a) of this regulation, a private career school may
present matters in mitigation of the offense alleged by the Commission.

COMAR 13B - Maryland Higher Education Commission Page | 46 of 458

13B.01.01.21

.21 Interactive Distance Education by Private Career Schools—Approval.

A. A school offering a program in whole or in part by distance education shall comply with:

(1) Regulations .21—.27 of this chapter; and

(2) Unless otherwise specified, all other regulations of this chapter.

B. A school shall obtain approval from the Secretary using distance education as a mode of
instructional delivery for a program.

C. A new school applicant shall seek and obtain approval to operate a private career school in
accordance with Regulation .04 of this chapter before offering a program delivered in whole or
part by distance education.

D. An approved school shall seek and obtain approval for a new program in accordance with
Regulation .05A(1) of this chapter before offering either:

(1) A new program in whole or part by distance education; or

(2) An approved program in whole or part by distance education.

E. An approved school shall seek and obtain approval for a substantial program modification in
accordance with Regulation .05B(2) of this chapter before modifying an approved program
offered in whole or in part by distance education.

COMAR 13B - Maryland Higher Education Commission Page | 47 of 458

13B.01.01.22

.22 Interactive Distance Education by Private Career Schools—Curriculum
and Instruction.

A. A school shall utilize appropriate instructional delivery methods and technology to meet the
objectives of a program, conform with generally accepted educational, professional, and ethical
standards, and comply with the following conditions:

(1) The objectives of the program shall be reasonably attainable and be of a nature that
they can be achieved through distance education;

(2) The learning objectives shall, if appropriate to the nature and type of the program, be
comparable to similar programs that are not delivered by distance education;

(3) Learning outcomes promised to students shall be achievable with the technology
utilized;

(4) Resident training shall supplement the instruction delivered by distance education if
necessary to attain the stated educational objectives;

(5) A program delivered by distance education shall be coherent and complete; and

(6) A school shall demonstrate that the clock hours required and awarded are appropriate
for the program or portion of the program delivered by distance education.

B. A program shall provide for real-time or delayed interaction between faculty and students, and
comply with the following conditions:

(1) Interactive instructions shall be an integral, pervasive, and integrated feature of a
program or portion of a program delivered by distance education;

(2) Distance education shall employ interactive, electronically communicated methods
for delivering instruction to students;

(3) Instructor-to-student interactions shall be critical components in any learning
experience, and schools shall plan for and include timely accessibility of faculty as well
as the appropriate interactivity for their instruction; and

(4) A school shall utilize appropriate and effective instructional materials and teaching
methods to ensure the active involvement of students.

C. A program of study shall be developed by a team of qualified faculty, administrators, and
technologists.

COMAR 13B - Maryland Higher Education Commission Page | 48 of 458

D. Qualified faculty shall provide appropriate oversight of the program offered, which shall
comply with the following conditions:

(1) A school shall employ instructors who have the technical skills to teach in a distance
education environment and meet the other qualifications for instructors identified in
Regulation .10A of this chapter;

(2) The qualifications of instructional staff shall be documented in their personnel files
including, but not limited to, evidence of appropriate training or experience in distance
education instruction, other relevant experience, and formal educational attainment
including certificates and degrees earned; and

(3) Technically, academically, and experientially qualified faculty shall oversee the
instruction, evaluation, and grading requirements of the distance education training.

E. Distance education shall be conducted in conformity with generally accepted educational,
professional, and ethical standards.

COMAR 13B - Maryland Higher Education Commission Page | 49 of 458

13B.01.01.23

.23 Interactive Distance Education by Private Career Schools—Faculty
Support.

A. A school shall provide faculty support services specifically related to teaching by distance
education.

B. A school shall provide training for faculty who use technology in instruction.

COMAR 13B - Maryland Higher Education Commission Page | 50 of 458

13B.01.01.24

.24 Interactive Distance Education by Private Career Schools—Students and
Student Services.

A. Accepted students shall have the documented background, knowledge, and technical skills
needed to undertake the program. A school shall assess whether students have the skills and
competencies to succeed in a distance-learning environment before their enrollment in the
program. A prospective student may not begin training in a program until all entrance
requirements have been fulfilled. A school shall maintain documentation indicating that all
admissions requirements have been met by such admitted student.

B. If an admissions test is required, it shall be administered in a manner that verifies the student's
identity.

C. Advertising, recruiting, and admissions materials shall clearly and accurately represent the
program and the services available. A school shall provide students with clear, complete, and
timely information on the curriculum, program requirements, nature of faculty/student
interaction, assumptions about technology competence and skills, technical equipment
requirements, availability of academic support services and financial aid resources, and costs and
payment policies.

D. A program shall ensure that appropriate learning resources for instruction delivered by
distance education are available to students, including the following:

(1) A school shall provide students with the information and training needed to function
in a distance education environment;

(2) A school shall support students with help and guidance on how to best learn through
distance education and offer the resources to serve students in a timely manner if
technical difficulties arise;

(3) Outside resources, electronic databases, and other library access features shall be
readily available to students, and the curriculum shall actively encourage students to use
these resources to acquire knowledge and skills; and

(4) Adequate, appropriate, and functional equipment, supplies, and furnishings required
to provide effective education and training services shall be readily available for
instructor or student use.

E. Enrolled students shall have reasonable and adequate access to the range of student services to
support their learning. This includes providing academic counseling, financial advising, and
placement assistance for students enrolled in programs delivered by distance education.

COMAR 13B - Maryland Higher Education Commission Page | 51 of 458

F. A school shall provide adequately for the reliability, privacy, safety, and security of student
information and student financial transactions.

COMAR 13B - Maryland Higher Education Commission Page | 52 of 458

13B.01.01.25

.25 Interactive Distance Education by Private Career Schools—Evaluation
and Assessment.

A. A school shall provide for frequent assessment and documentation of student achievement in
each course and at the completion of the program, which comply with the following:

(1) Examinations and other evaluative techniques shall adequately measure mastery of
stated learning objectives;

(2) Adequate provisions and safeguards to ensure the security and integrity of student
testing and evaluation shall be used;

(3) Adequate provisions to authenticate the identity of students taking tests or being
evaluated shall be used;

(4) Requirements for successful completion of distance education courses and programs
shall be similar to those of resident programs; and

(5) Documentation shall be maintained in each student's file to demonstrate compliance
with the school's approved policies of attendance and academic progress.

B. A school shall demonstrate the educational effectiveness of distance education including
assessments of student learning outcomes and student retention.

COMAR 13B - Maryland Higher Education Commission Page | 53 of 458

13B.01.01.26

.26 Interactive Distance Education by Private Career Schools—Commitment
to Support.

A. A school shall demonstrate a commitment to ongoing support, both financial and technical,
and to a continuation of the program for a period sufficient to enable a student to complete a
program.

B. A school shall forward a financial guarantee in the form of a performance bond or an
irrevocable letter of credit that is sufficient to cover the tuition liability of a program delivered in
part or whole by distance education. The bond or letter of credit shall be in an amount and under
terms and conditions determined by the Secretary and made payable to the Secretary of Higher
Education. The completed bond or letter of credit shall be forwarded to the Secretary of Higher
Education.

COMAR 13B - Maryland Higher Education Commission Page | 54 of 458

13B.01.01.27

.27 Interactive Distance Education by Private Career Schools—Tuition, Fees,
Refunds.

A. For a combined program, the tuition price for the distance education portion and the tuition
price for the resident portion shall be separately stated on the enrollment agreement. The total of
the two shall be the total tuition charge.

B. For the resident portion of a combined program, charges shall be assessed only after a student
attends the first resident class session.

C. Minimum Refund.

(1) For the resident portion of a combined program, the minimum refund that a school
shall pay a student who withdraws or is terminated after the 7-day cancellation period has
expired and after instruction has begun is identified in Regulation .12M of this chapter.

(2) For a program or portion of a program delivered by distance education, the minimum
refunds that a school shall pay a student who withdraws or is terminated after the 7-day
cancellation period has expired and after instruction has begun are as provided in
§C(3)—(5) of this regulation and are not as provided in Regulation .12M of this chapter.

(3) A prorated refund shall be made based on the proportion of the program completed by
the student. The proportion of the program completed shall be the percentage of
submitted lesson assignments completed by the student compared to the total number of
lesson assignments in the program or portion of the program delivered by distance
education.

(4) A refund due a student shall be based on the date of withdrawal or termination and
paid within 60 days from the date of withdrawal or termination. In accordance with
Regulation .02B(11) of this chapter, the student's last date of attendance is the date of
withdrawal or termination.

(5) In the case of an official leave of absence, if a student fails to return to training by the
end of the leave of absence, a refund due a student shall be based on the date of
withdrawal or termination and paid within 60 days of the scheduled last date of the leave
of absence.

D. A school's approved refund policy shall:

(1) Conform to this regulation; and

(2) Be disclosed on the school's enrollment contract, on application forms, and in the
catalog.

COMAR 13B - Maryland Higher Education Commission Page | 55 of 458

E. A school shall maintain documentation to verify that a refund has been made.

COMAR 13B - Maryland Higher Education Commission Page | 56 of 458

Title 13B MARYLAND HIGHER EDUCATION COMMISSION

Subtitle 01 NONPUBLIC SCHOOLS

Chapter 02
Joseph A. Sellinger Program—Aid to
Nonpublic Higher Education Institutions

Authority: Education Article, § 17-102, Annotated Code of Maryland

COMAR 13B - Maryland Higher Education Commission Page | 57 of 458

13B.01.02.01

.01 Applicability; Effective Date.

The criteria and procedures contained in this chapter apply to the program of aid to nonpublic
institutions of higher education provided for by Education Article, §17-101 et seq., Annotated
Code of Maryland. These amended criteria and procedures are effective beginning with the
expenditure, reporting, and verification of aid awarded for the 1994 fiscal year.

COMAR 13B - Maryland Higher Education Commission Page | 58 of 458

13B.01.02.02

.02 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Commission" means Maryland Higher Education Commission.

(2) "Eligible institution" means an institution of higher education satisfying the requirements of
Regulation .03 of this chapter.

(3) "Program" or "academic program" means a series of courses which are arranged in a scope
and a sequence leading to a degree or certificate, or which constitute a major.

(4) "Religious, seminarian, or theological academic programs" means a series of courses which
are arranged in a scope and a sequence either leading to a degree or certificate which indicates
specialization in the study of religion or in religious, seminarian, or theological studies, or which
constitute a major in any of these subject matters.

(5) "State's general fund per full-time equivalent student appropriation for the 4-year public
colleges and universities" means the general fund per full-time equivalent student appropriations
for Bowie State University, Coppin State College, Frostburg State University, Morgan State
University, Salisbury State University, St. Mary's College of Maryland, Towson State
University, University of Maryland College Park, University of Maryland Baltimore County, and
University of Maryland Eastern Shore.

COMAR 13B - Maryland Higher Education Commission Page | 59 of 458

13B.01.02.03

.03 Qualifications for Aid.

A. The Commission shall determine which institutions are eligible for aid under this chapter.

B. To qualify for State aid under this chapter, an institution of higher education shall:

(1) Be a nonprofit private:

(a) College or university that was established in the State before July 1, 1970,

(b) Institution of higher education that formerly received State aid as a component
of a private college or university that was established in this State before July 1,
1970, or

(c) Institution of higher education that is established in this State and grants an
associate of arts degree;

(2) Be approved by the Commission;

(3) Be:

(a) Accredited by the Commission on Higher Education of the Middle States
Association of Colleges and Schools, or

(b) A candidate for accreditation under §B(3)(a) of this regulation that is subject
to an affirmative action plan approved by the Commission, and is authorized by
the Commission for participation in the program established under this chapter;

(4) Have awarded the associate of arts or baccalaureate degrees to at least one graduating
class;

(5) Maintain one or more earned degree programs, other than seminarian or theological
programs, leading to an associate of arts or baccalaureate degree; and

(6) Submit each new program and each major modification of an existing program to the
Commission for its review and recommendation as to the initiation of the new or
modified program.

COMAR 13B - Maryland Higher Education Commission Page | 60 of 458

13B.01.02.04

.04 Computation of Amount of Annual Award.

A. The Commission shall determine the annual apportionment available to each eligible
institution in accordance with this regulation.

B. Eligible Credit Hours Generated.

(1) The number of eligible credit hours generated in an institution during the fall semester
or quarter of the fiscal year next preceding the fiscal year for which the apportionment is
to be made shall be computed by adding the number of:

(a) Credit hours of enrollment in undergraduate courses regardless of student
level;

(b) Credit hours of enrollment in graduate courses regardless of student level; and

(c) Equated credit hours of enrollment in special courses.

(2) From the sum reached in §B(1) of this regulation, subtract all credit hours, regardless
of subject, taken by:

(a) Undergraduates then enrolled in a religious, seminarian, or theological
academic program; and

(b) Graduate students then enrolled in a religious, seminarian, or theological
academic program.

C. Special Considerations for Determining Eligible Credit Hours Generated.

(1) Equated credit hours of enrollment in special courses are computed on the same basis
as for a normal course. For example, if 3 weekly contact hours of English 101 equals 3
credits, then 3 weekly contact hours of prerequisite noncredit English are equated to 3
credit hours.

(2) Credit hours for short courses are prorated on the basis of a full semester. For
example, if the full semester course carrying 3 weekly contact hours is for 16 weeks, and
the short course is for 8 weeks, then the equated credit hours are 1.5.

(3) A student is considered to be enrolled in a religious, seminarian, or theological
academic program if, on or before the date as of which enrollment figures are computed,
the student has become a declared major in religion or religious, seminarian, or
theological studies, or has otherwise formally advised the institution in writing that the

COMAR 13B - Maryland Higher Education Commission Page | 61 of 458

student is seeking a degree or certificate indicating the type of specialization that
characterizes religious, seminarian, or theological academic programs.

(4) In deducting credit hours taken by students enrolled in religious, seminarian, or
theological academic programs, all credit hours of all of these students shall be deducted
even if they are in subjects that do not relate directly to these programs.

D. Commission Form MHECIS S-6.

(1) An eligible institution shall fully complete Commission Form MHECIS S-6 and have
it certified by an independent certified public accountant.

(2) The form may be revised from time to time by the Commission in a manner consistent
with these regulations.

(3) The Commission shall furnish copies of this form to all known institutions by August
31 of each year.

(4) Institutions using the semester system shall file the form with the Commission not
later than October 15 of each year, and shall reflect the number of eligible semester credit
hours as of a date on which that fall's enrollment has stabilized.

(5) An institution using the quarter system shall file the form not later than October 15 of
each year, indicating the number of eligible quarter credit hours generated during the fall
quarter and, not later than January 15 of each year, indicating the number of eligible
quarter credit hours generated during the winter quarter.

E. Calculation of Full-Time Equivalent Students Enrolled. The Commission shall calculate the
number of full-time equivalent students enrolled in an institution using the:

(1) Semester system by dividing the total number of eligible credit hours generated in that
fall semester by 15; or

(2) Quarter system by dividing by 15 the sum of the fall eligible quarter credit hours
multiplied by 0.69 and the winter eligible quarter credit hours multiplied by 0.31.

F. Annual Apportionment.

(1) The Commission shall multiply the number of full-time equivalent students enrolled
in the institution by 16 percent of the State's general fund per full-time equivalent student
appropriation to the 4-year public colleges and universities in Maryland for the preceding
fiscal year. Upon approval and certification by the Commission, the resulting amount is
the apportionment to the institution.

(2) The general fund per full-time equivalent student appropriation is based on the most
recent prior year's appropriation as approved by the General Assembly or as revised by

COMAR 13B - Maryland Higher Education Commission Page | 62 of 458

the Board of Public Works, and not the appropriation as subsequently reallocated by
budget amendment.

COMAR 13B - Maryland Higher Education Commission Page | 63 of 458

13B.01.02.05

.05 Administration of Program.

A. Verification and Notice.

(1) The Commission may verify the information submitted pursuant to Regulation .04 of
this chapter as to eligible credit hours of enrollment by examining the registration or
other data on which these submissions are based.

(2) If the figure resulting from the verification in §A(1) of this regulation differs from the
figure submitted, the Commission shall certify to the State Comptroller an award amount
based upon the corrected figure.

(3) Representatives of the institutions shall be given notice of the correction and an
opportunity to discuss the basis for the correction with the Commission before the
revision of the award.

B. Applications for Aid.

(1) Applications for aid shall be completed and filed not later than September 15 of the
fiscal year for which aid is sought.

(2) Applications shall consist of a preexpenditure affidavit and a statement-of-intended-
use report.

(3) The Commission shall distribute copies of all forms constituting an application to all
known eligible institutions by June 30 of each year.

C. Preexpenditure Affidavit.

(1) The preexpenditure affidavit shall be in a form as prescribed by the Commission.

(2) The chief executive officer of the institution shall execute the preexpenditure
affidavit.

(3) The chief executive officer shall certify under oath or affirmation that funds received
from the State may not be used for sectarian purposes, and that the institution has adopted
and shall maintain and follow the accounting procedures described in §G of this
regulation until all State funds applied for have been expended and accounted for to the
Commission.

D. Statement-of-Intended-Use Report.

(1) The statement-of-intended-use report shall:

COMAR 13B - Maryland Higher Education Commission Page | 64 of 458

(a) Be in a form required by the Commission;

(b) Be executed by the chief executive officer or the chief financial officer of the
institution; and

(c) Describe and itemize in sufficient detail the purposes for which State funds
will be expended during the fiscal year for which the application is filed.

(2) If an institution later decides to use the funds for other purposes, the institution shall
give the Commission prior written notice specifying the new purposes.

E. Certification and Payment of Awards.

(1) Following the receipt of timely and complete applications, and based upon its
determination under Regulation .04 of this chapter, the Commission shall certify
proposed awards to the State Comptroller not later than October 30.

(2) The State Comptroller's office shall make the awards by check to the institutions in
two equal payments.

(3) The Commission shall forward promptly its certification of awards and request for the
first payments to the Comptroller following formal approval by the Commission of
awards.

(4) The Commission shall make the certification and request for the second payment not
later than March 30.

F. The Commission may not pay an award to an eligible institution if the Commission has
determined that the institution has failed to submit an adequate utilization-of-funds report in
compliance with these regulations for any prior fiscal year.

G. Accounting Procedures.

(1) Eligible institutions shall follow the accounting procedures set forth in §G(2) of this
regulation in connection with their receipt, expenditure, and accounting of State funds
pursuant to these regulations.

(2) Procedures.

(a) An institution shall prepare its annual financial statements according to
generally accepted accounting principles for auditing and reporting on financial
statements of nonprofit institutions of higher education, including colleges,
universities, and community or junior colleges.

(b) The budget for each institution receiving State funds shall identify the specific
areas of activity for which the institution will expend grant funds.

COMAR 13B - Maryland Higher Education Commission Page | 65 of 458

(c) State funds, when received by an institution, shall be placed in a special
revenue account.

(d) Each budgeted segment reflected in the accounts of an institution shall have an
expense account number for recording the expenditure of State funds.

(e) Each institution shall retain sufficient documentation of the State funds
expended to permit verification by the Commission that no funds were spent for
sectarian purposes for a period of 1 year following submission of a utilization-of-
funds report in accordance with §I of this regulation.

(f) If the Commission determines that a verification or audit of an institution is
necessary or appropriate in connection with the institution's expenditure of State
funds, the institution shall:

(i) Cooperate fully with the persons designated by the Commission; and

(ii) Supply all information reasonably necessary to facilitate the fastest
possible completion of the verification or audit.

H. End of Fiscal Year Reports.

(1) By the end of each fiscal year, the Commission shall send a utilization-of-funds report
and a post-expenditure affidavit to all eligible institutions receiving funds for that year.

(2) An institution receiving funds shall complete and file the utilization-of-funds report
and post-expenditure affidavit before the Commission may act upon any application for
aid from that institution for a subsequent fiscal year.

I. Utilization-of-Funds Report.

(1) The utilization-of-funds report and the post-expenditure affidavit shall be in the form
prescribed by the Commission.

(2) The chief executive officer or chief financial officer of the institution shall certify the
utilization-of-funds report.

(3) The institution shall describe and itemize in the utilization-of-funds report the
purposes for which State funds have been expended during the fiscal year in sufficient
detail to permit a prompt determination of whether any expenditure has been used for
sectarian purposes.

J. Post-Expenditure Affidavit. The chief executive officer of an institution shall:

(1) Execute the post-expenditure affidavit under oath or affirmation; and

COMAR 13B - Maryland Higher Education Commission Page | 66 of 458

(2) Certify that none of the monies covered in the utilization-of-funds report have been
used for sectarian purposes.

K. Whenever an institution reports that it has expended any State funds for capital construction
or permanent improvements, it shall report periodically, on forms and at intervals specified by
the Commission, on the use being made of the building or facility in question and certify under
oath or affirmation, given by its chief executive officer, that the building or facility is not being
used for religious instruction or worship for any religious activity or sectarian purpose.

L. Unexpended Funds.

(1) An institution shall fully expend and report upon any funds that it did not expend by
the end of the fiscal year in which the funds were paid, in the next fiscal year.

(2) In addition to the requirements of §L(1) of this regulation, the institution shall submit
a new statement-of-intended-use report and a new pre-expenditure affidavit by October
31.

M. Verification of Expenditures.

(1) The Commission may verify or have audited an institution's expenditure of State
funds, with respect to any report required by these regulations, to determine whether
funds awarded to the institution have been expended as authorized by these regulations.

(2) Before conducting a verification or audit requiring a physical examination of an
institution's books or records, the Commission shall make reasonable efforts to satisfy its
concern on the basis of data submitted by the institution.

(3) A verification or audit shall be conducted with the greatest possible speed and the
least possible disruption of an institution's activities.

COMAR 13B - Maryland Higher Education Commission Page | 67 of 458

13B.01.02.06

.06 Prohibition of Sectarian Use of Funds.

A. Education Article, §17-107, Annotated Code of Maryland, prohibits recipient institutions
from using State funds for sectarian purposes. That provision generally prohibits the use of State
funds to support religious instruction, religious worship, or other activities of a religious nature.

B. Prohibited Uses.

(1) Listed in §B(2) of this regulation are several potential uses of State funds that would
violate the sectarian use prohibition. The list is not intended to be all inclusive and, if an
institution is in doubt whether any other possible use of the funds might violate the
sectarian use prohibition, it may consult with and seek the advice of the Commission in
advance.

(2) An institution may not use State funds for:

(a) Student aid if the:

(i) Institution imposes religious restrictions or qualifications on eligibility
for student aid, or

(ii) Students are enrolled in a religious, seminarian, or theological
academic program;

(b) The salary, in whole or in part, of an individual who:

(i) Is engaged in the teaching of religion or theology,

(ii) Serves as chaplain or director of the campus ministry, or

(iii) Administers or supervises a program of religious activities;

(c) The portion of the cost of maintenance or repair of a building or facility used
for:

(i) The teaching of religion or theology,

(ii) Religious worship, or

(iii) A religious activity;

COMAR 13B - Maryland Higher Education Commission Page | 68 of 458

(d) Utility bills, if the institution has a building or facility that is used in whole or in part
for the teaching of religion or theology, religious worship, or religious activity, unless the
building is separately metered;

(e) Utility bills for a separately metered building or facility that is used in whole or in part
for the teaching of religion or theology, religious worship, or religious activity; or

(f) The construction or renovation of a building or facility that is or will be used for the
teaching of religion or theology, religious worship, or religious activity.

C. The Commission shall require an institution that violates the prohibition against sectarian
usage set forth in this regulation to repay to the State all monies expended in violation of this
prohibition. The institution is ineligible to receive further State aid until it has repaid these funds.
If the Commission determines that an institution has violated the prohibition and that the
responsible officers knew or reasonably should have known that it was doing so, then the
Commission shall notify the institution, and the Commission may declare the institution
ineligible to receive further State aid either for a specified number of years or permanently, and
so notify the institution. The institution shall be given notice and an opportunity for a hearing
before the Commission before any declaration of ineligibility. 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.

COMAR 13B - Maryland Higher Education Commission Page | 69 of 458

13B.01.02.07

.07 Review by Board of Public Works.

These criteria and procedures are subject to the review of the Board of Public Works.

COMAR 13B - Maryland Higher Education Commission Page | 70 of 458

Title 13B MARYLAND HIGHER EDUCATION COMMISSION

Subtitle 02 ACADEMIC REGULATIONS

Chapter 01
Requirements for Authorization of
Out-of-State Degree-Granting Institutions

to Operate in Maryland

Authority: Education Article, §§10-212, 11-105, 11-201—11-207, and 16-108, Annotated Code
of Maryland

COMAR 13B - Maryland Higher Education Commission Page | 71 of 458

13B.02.01.01

.01 Purpose.

A. This chapter implements the provisions of Education Article, §§11-201—11-204, Annotated
Code of Maryland.

B. The purpose of this chapter is to require that out-of-State institutions:

(1) Maintain intellectual and academic integrity;

(2) Have adequate financial resources and be operated in accordance with acceptable
principles of sound financial management;

(3) 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;

(4) Consistently maintain a faculty, a program of instruction, physical facilities, and
resources adequate to the:

(a) Satisfactory delivery of the program approved to be offered in Maryland; and

(b) Attainment of educational quality;

(5) Admit, retain, and graduate only those students who meet quantitatively and
qualitatively creditable standards of achievement appropriate to the institution;

(6) 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;

(7) Provide appropriate student services; and

(8) Operate under an effective administrative structure.

C. 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.

COMAR 13B - Maryland Higher Education Commission Page | 72 of 458

13B.02.01.02

.02 Scope.

A. 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.

B. 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.

C. 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.

D. Programs to be reviewed under this authority include:

(1) New certificates or degree levels; and

(2) Program suspensions or discontinuances.

E. Application of Chapter to Out-of-State SARA Institutions.

(1) Regulations .04-1—.22 of this chapter do not apply to out-of-State SARA institutions
that do not operate in Maryland.

(2) The requirements of this chapter apply to out-of-State SARA institutions that operate
in Maryland.

COMAR 13B - Maryland Higher Education Commission Page | 73 of 458

13B.02.01.03

.03 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) Academic Credit.

(a) "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.

(b) "Academic credit" does not include credit that may be awarded for remedial
education.

(2) "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.

(3) Classroom Instruction.

(a) "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.

(b) "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.

(4) "Closed site" means a business, organization, educational entity, or government site
that offers courses solely for its own employees.

(5) "Commission" means the Maryland Higher Education Commission.

(6) "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.

COMAR 13B - Maryland Higher Education Commission Page | 74 of 458

(7) "Degree-granting institution" means an associate degree-granting institution or an
institution offering baccalaureate or higher degrees.

(8) Distance Education.

(a) "Distance education" means course work for academic credit delivered by
telecommunicated instruction to a physical space specifically reserved for the
purpose of receiving the instruction, for example, a teleclassroom, and requires
the payment of tuition or fees for the instruction.

(b) "Distance education" does not include telecommunicated instruction at the
student's initiation via an individual personal computer.

(9) "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.

(10) "Full-time faculty member" means an employee:

(a) Whose primary professional responsibility is instruction, research, scholarship,
or service;

(b) 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;

(c) Who is employed on an annual or renewable contract of at least 9 months long
that stipulates an annual salary; and

(d) Who is not employed full-time by another employer.

(10-1) “Home state” means the SARA member state in which an institution holds
its legal domicile.

(11) "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.

(12) “Operate in Maryland” means to:

(a) 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;

(b) 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

COMAR 13B - Maryland Higher Education Commission Page | 75 of 458

(c) 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:

(i) Is arranged and administered by a national placement center;

(ii) 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

(iii) 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.

(13) "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.

(13-1) “Out-of-State SARA institution” means an out-of-State institution approved by its
home state to participate in SARA.

(14) "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.

(15) "Regional higher education center" has the meaning stated in Education Article, §10-
101(k), Annotated Code of Maryland.

(16) "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.

(16-1) “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.

(16-2) “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.

COMAR 13B - Maryland Higher Education Commission Page | 76 of 458

(17) "Secretary" means the Secretary of Higher Education.
(18) "Segment of higher education" means:

(a) The University System of Maryland;
(b) Morgan State University;
(c) St. Mary's College of Maryland;
(d) The Maryland community colleges;
(e) The Maryland Independent College and University Association; and
(f) The Maryland Association of Private Colleges and Career Schools.

COMAR 13B - Maryland Higher Education Commission Page | 77 of 458

13B.02.01.04

.04 Exemptions.

A. This chapter does not apply to an out-of-State institution offering a course or a program on a
military installation if:

(1) 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;

(2) The institution waives its right to claim veterans' benefits for enrollees; and

(3) The institution applies for and is granted an exemption from this regulation.

B. 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.

C. The application shall include:

(1) 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

(2) A statement waiving the institution's right to claim veterans' benefits for enrollees.

D. There is no application fee for an exemption for a course or program on a military installation.

E. The Secretary shall approve the exemption if the application is complete.

COMAR 13B - Maryland Higher Education Commission Page | 78 of 458

13B.02.01.04-1

.04-1 Report by Out-of-State Institutions.

A. 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:

(1) 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

(2) Register any online programs in accordance with Education Article, §11–202.2,
Annotated Code of Maryland.

B. The annual report to the Secretary shall be made in a form and manner required by the
Secretary.

COMAR 13B - Maryland Higher Education Commission Page | 79 of 458

13B.02.01.05

.05 Institutional Titles.

A. 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.

B. Change of Institutional Designation.

(1) An out-of-State institution may not change its institutional designation within the
State without the approval of the Commission.

(2) An institution shall pay a fee of $250 with an application to the Commission to
change its institutional designation.

C. An out-of-State institution shall use within the State a title appropriate to the programs and
degrees it offers in the State.

COMAR 13B - Maryland Higher Education Commission Page | 80 of 458

13B.02.01.06

.06 Need Criteria.

A. 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.

B. The evidence required by §A of this regulation shall include:

(1) The degree to be awarded;

(2) The area of specialization;

(3) The purpose or objective of the program or course of study to be offered;

(4) Specific academic content of the program or course of study;

(5) The quality of the proposed program in comparison to existing programs;

(6) An analysis of the market for the program; and

(7) The State's equal educational opportunity obligations under State and federal law.

C. In addition, the out-of-State institution shall demonstrate that the proposed program, for which
the institution is making application:

(1) Meets a critical and compelling regional or Statewide need; and

(2) Is consistent with the Maryland State Plan for Postsecondary Education.

D. 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:

(1) 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

(2) Occupational needs relative to meeting workforce requirements or upgrading
vocational or technical skills.

COMAR 13B - Maryland Higher Education Commission Page | 81 of 458

E. Market Demand Data.

(1) 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.

(2) 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.

(3) 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.

COMAR 13B - Maryland Higher Education Commission Page | 82 of 458

13B.02.01.07

.07 Institutional Initial Approval Process.

A. 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.

B. 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.

C. 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.

D. Procedures to Apply for Initial Approval to Operate in Maryland.

(1) 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.

(2) An institution shall submit a non-refundable application fee in the amount of:

(a) $7,500 for up to two degree programs; and

(b) An additional $850 for each degree program over two programs.

(3) The application to offer degree and certificate programs shall include:

(a) Identification of the institution;

(b) 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;

(c) Proposed start date and term of operation;

(d) Identification of authorized representatives;

(e) Board of trustees resolution of financial solvency;

COMAR 13B - Maryland Higher Education Commission Page | 83 of 458

(f) 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;

(g) Institutional accreditation status with an organization recognized as an
accrediting agency by the U.S. Department of Education to grant institutional
accreditation;

(h) Copies of awards to be granted;

(i) Programmatic data, including the degree or certificate, the curriculum, and
proposed schedule of classes;

(j) A detailed and accurate description of the proposed programs and operations
including:

(i) All degree and certificate programs to be offered by the institution;

(ii) A description of the objectives of each degree and certificate program
including the mode of instructional delivery;

(iii) A description of the student population to be served; and

(iv) A description of a teach-out plan allowing enrolled students to
complete their program if the institution decides to cease operation in
Maryland;

(k) 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;

(l) Data projecting market demand and the availability of openings in the job
market to be served by each new program;

(m) Qualification of instructors and staff;

(n) Library resources;

(o) Certificate of compliance with fire and safety codes;

(p) Copies of advertisements; and

(q) 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.

(4) Certificate of Incorporation.

COMAR 13B - Maryland Higher Education Commission Page | 84 of 458

(a) A public institution is not required to submit a certificate of incorporation as a
foreign corporation.

(b) A business entity affiliated with a public institution is required to submit a
certificate of incorporation.

(5) 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:

(a) Identification of the institution;

(b) 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;

(c) Proposed start date and term of operation;

(d) Certificate of incorporation as a foreign (out-of-State) corporation, if required
by State law;

(e) Institutional accreditation status with an organization recognized as an
accrediting agency by the U.S. Department of Education to grant institutional
accreditation;

(f) Programmatic data, including the degree or certificate, the curriculum, and the
proposed schedule of classes;

(g) A description of the objectives of each course including the mode of
instructional delivery;

(h) A description of the student population to be served;

(i) 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;

(j) Qualification of instructors and staff;

(k) Certificate of compliance with fire and safety codes; and

(l) If applicable, a letter of sponsorship from the employer or institution that is
requesting the institution to offer a course in Maryland.

(6) Application to Operate in Maryland as a Closed Site Out-of-State Institution.

COMAR 13B - Maryland Higher Education Commission Page | 85 of 458

(a) 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.

(b) 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.

E. Application Review, Notice, and Period for Comments and Objections.

(1) 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.

(2) 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.

(3) A 30-day period for comments and objections shall be allowed.

(4) Any institution of higher education or segment of higher education desiring to raise an
objection shall do so during the 30-day comment period.

(5) The Secretary shall consider all comments and objections received before making the
final decision.

(6) The Secretary may not consider an objection raised after the 30-day period.

(7) The Secretary may ask the applicant institution for additional information in response
to comments and objections received.

(8) The 30-day period for comments and objections does not apply to a closed-site
institution.

F. Secretary's Grant of Approval to Operate in Maryland.

(1) 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:

(a) The application and documentation submitted by the institution is in
compliance with this chapter and the institution is in compliance with this chapter;

COMAR 13B - Maryland Higher Education Commission Page | 86 of 458

(b) 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

(c) The programs to be offered in Maryland are similar to programs offered at its
main or primary campus.

(2) The Secretary shall notify the chief executive officer of the institution in writing of
the official action taken by the Secretary.

G. Secretary's Denial of Approval to Operate in Maryland.

(1) 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.

(2) 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.

(3) 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.

(4) If the institution requests a hearing, the Commission may refer the hearing to the
Office of Administrative Hearings.

(5) After the hearing in §G(3) of this regulation, the Commission may take the following
action:

(a) Grant approval to operate;

(b) Deny approval to operate; or

(c) Remand the case to the Secretary for further action as directed by the
Commission.

(6) If the institution does not file a timely request for a hearing on the notice of
deficiencies, the Secretary's decision becomes final.

H. Completed Application and Documentation.

(1) 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.

COMAR 13B - Maryland Higher Education Commission Page | 87 of 458