2013 Maryland Code
EDUCATION
§ 11-202 - Certificate of approval [Effective until July 1, 2013].


MD Educ Code § 11-202 (2013) What's This?

§11-202.

(a) (1) Except as provided in § 11-202.1 of this subtitle, an institution of postsecondary education may not commence or continue to operate, do business, or function without a certificate of approval from the Commission.

(2) Except as provided in § 11-202.2 of this subtitle, an institution of postsecondary education that enrolls Maryland students in a fully online distance education program in the State may not commence or continue to operate, do business, or function without registering with the Commission within 6 months of enrolling the first Maryland student.

(3) Except as provided in § 11-202.1 of this subtitle, but notwithstanding any other provision of law, an institution that is not accredited by an accrediting body recognized and approved by the United States Department of Education may not commence or continue to operate, do business, or function in the State.

(b) The Commission shall issue a certificate of approval to an institution of postsecondary education if it finds that:

(1) The facilities, conditions of entrance and scholarship, and educational qualifications and standards are adequate and appropriate for:

(i) The purposes of the institution; and

(ii) The programs, training, and courses to be offered by the institution; and

(2) The proposed programs to be offered by the institution meet the educational needs of the State.

(c) (1) If the Commission believes that an institution of postsecondary education that applies for a certificate of approval does not meet the conditions or standards necessary for the issuance of the certificate, the Commission shall give the institution written notice of the specific deficiencies.

(2) (i) Within 20 days of receipt of a notice of deficiencies, the institution may request a hearing before the Commission.

(ii) Within 60 days of receipt of the request the Commission shall hold a hearing to determine if the certificate of approval should be issued.

(3) If, within 6 months from the date on which the application for certification was submitted to the Commission, the institution has received neither a certificate of approval under subsection (b) of this section nor written notice of deficiencies under this subsection, the institution may request within 20 days a hearing before the Commission to determine if the certificate of approval should be issued.

(c-1) (1) If the Commission believes that an institution of postsecondary education that is required to register under § 11-202.2 of this subtitle does not meet the conditions or standards necessary for the issuance of the registration, the Commission shall give the institution written notice of the specific deficiencies within 6 months after receipt of an application for registration.

(2) (i) Within 20 days after receipt of a notice of deficiencies, the institution may request a hearing before the Commission.

(ii) Within 60 days after receipt of the request for a hearing under subparagraph (i) of this paragraph, the Commission shall hold a hearing to determine if the registration should be issued.

(3) (i) If, after 6 months from the date on which the application for registration was submitted to the Commission, the institution has received neither a registration nor written notice of deficiencies under this subsection, the institution may request a hearing within 20 days before the Commission.

(ii) Within 60 days after receipt of the request for a hearing under subparagraph (i) of this paragraph, the Commission shall hold a hearing to determine if the registration should be issued.

(4) After a hearing held under this subsection, the Commission shall render a decision within 30 days.

(d) (1) Any institution of postsecondary education that is denied a certificate of approval by the Commission after a hearing granted under subsection (c) of this section or that is denied a registration after a hearing granted under subsection (c-1) of this section has the right to judicial review provided by Title 10, Subtitle 2 of the State Government Article.

(2) The decision of the Commission shall be presumed correct, and the institution has the burden of proving otherwise.

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

§ 11-202 - Certificate of approval

(a) Required. --

(1) Except as provided in § 11-202.1 of this subtitle, an institution of postsecondary education may not commence or continue to operate, do business, or function without a certificate of approval from the Commission.

(2) Except as provided in § 11-202.2 of this subtitle, an institution of postsecondary education that enrolls Maryland students in a fully online distance education program in the State may not commence or continue to operate, do business, or function without registering with the Commission within 6 months of enrolling the first Maryland student.

(3) Except as provided in § 11-202.1 of this subtitle, but notwithstanding any other provision of law, an institution required to register under paragraph (2) of this subsection that is not accredited by an accrediting body recognized and approved by the United States Department of Education may not commence or continue to operate, do business, or function in the State.

(b) Issuance. -- The Commission shall issue a certificate of approval to an institution of postsecondary education if it finds that:

(1) The facilities, conditions of entrance and scholarship, and educational qualifications and standards are adequate and appropriate for:

(i) The purposes of the institution; and

(ii) The programs, training, and courses to be offered by the institution; and

(2) The proposed programs to be offered by the institution meet the educational needs of the State.

(c) Notice of deficiencies; hearings. --

(1) If the Commission believes that an institution of postsecondary education that applies for a certificate of approval does not meet the conditions or standards necessary for the issuance of the certificate, the Commission shall give the institution written notice of the specific deficiencies.

(2) (i) Within 20 days of receipt of a notice of deficiencies, the institution may request a hearing before the Commission.

(ii) Within 60 days of receipt of the request the Commission shall hold a hearing to determine if the certificate of approval should be issued.

(3) If, within 6 months from the date on which the application for certification was submitted to the Commission, the institution has received neither a certificate of approval under subsection (b) of this section nor written notice of deficiencies under this subsection, the institution may request within 20 days a hearing before the Commission to determine if the certificate of approval should be issued.

(c-1) Notice of deficiencies; hearing. --

(1) If the Commission believes that an institution of postsecondary education that is required to register under § 11-202.2 of this subtitle does not meet the conditions or standards necessary for the issuance of the registration, the Commission shall give the institution written notice of the specific deficiencies within 6 months after receipt of an application for registration.

(2) (i) Within 20 days after receipt of a notice of deficiencies, the institution may request a hearing before the Commission.

(ii) Within 60 days after receipt of the request for a hearing under subparagraph (i) of this paragraph, the Commission shall hold a hearing to determine if the registration should be issued.

(3) (i) If, after 6 months from the date on which the application for registration was submitted to the Commission, the institution has received neither a registration nor written notice of deficiencies under this subsection, the institution may request a hearing within 20 days before the Commission.

(ii) Within 60 days after receipt of the request for a hearing under subparagraph (i) of this paragraph, the Commission shall hold a hearing to determine if the registration should be issued.

(4) After a hearing held under this subsection, the Commission shall render a decision within 30 days.

(d) Judicial review. --

(1) Any institution of postsecondary education that is denied a certificate of approval by the Commission after a hearing granted under subsection (c) of this section or that is denied a registration after a hearing granted under subsection (c-1) of this section has the right to judicial review provided by Title 10, Subtitle 2 of the State Government Article.

(2) The decision of the Commission shall be presumed correct, and the institution has the burden of proving otherwise.

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

§ 11-202 - 1. Operation without certificate [Effective until July 1, 2013].

(a) In general. -- A private nonprofit institution of higher education operating under a charter granted by the General Assembly may operate without a certificate of approval from the Commission.

(b) Institutions that may operate without certificate. -- Subject to the requirements imposed by subsection (c) of this section, the following institutions of postsecondary education may operate without a certificate of approval from the Commission:

(1) A religious educational institution that certifies, in accordance with procedures established by the Commission, that the institution:

(i) Is founded and operated by a church or other religious institution or organization of churches or religious institutions as an integral part of the religious ministry of that institution or organization;

(ii) Offers sectarian instruction only designed for and aimed at persons who hold or seek to learn particular religious faiths or beliefs of religious institutions or religious organizations, and provides only educational programs for religious vocations; and

(iii) States on the certificate or diploma the religious nature of the award; and

(2) A church or other religious institution offering a postsecondary instructional program leading to a certificate or diploma only if designed for and aimed at persons who hold or seek to learn the particular religious faith or beliefs of that church or religious institution, and providing only educational programs for religious purposes.

(c) Submission of financial statement. --

(1) Each institution authorized to operate without a certificate of approval under subsection (b) of this section:

(i) Shall submit to the Commission, every 2 years, a financial statement reviewed by an independent accountant retained by the institution; and

(ii) May not commence or continue to operate, do business, or function unless the Commission determines on the basis of the financial statement submitted by the institution that the institution possesses adequate financial resources to support the institution's educational program.

(2) The Commission shall adopt regulations establishing procedures and standards for the submission and evaluation of the reports and financial statements submitted by institutions under this subsection.

(d) Judicial review of denial. -- Any institution under subsection (b) of this section that is denied the right to operate has the right to judicial review as provided by the Administrative Procedure Act.

(e) Seeking certificate of approval permitted. -- Nothing in this section precludes an institution operating without a certificate of approval under subsection (b) of this section from seeking a certificate of approval from the Commission.

(f) Prohibited acts. -- With regard to an institution operating without a certificate of approval under subsection (b) of this section, a person may not:

(1) Make a statement, whether verbal or written, that the institution is approved by, or has a certificate of approval from, the Commission, including a statement on any certificate, diploma, academic transcript, or other document issued by the institution or in any advertisement or publication, or on a website; or

(2) Enroll a student in the institution unless, before enrollment, the person gives written notice to and obtains a written acknowledgment from the student that:

(i) The institution's instructional program is only designed for and aimed at persons who hold or seek to learn the particular religious faith or beliefs of the church or religious institution, and provides only educational programs for religious vocations or purposes;

(ii) An institution of higher education is not required to accept for transfer credits earned at the institution;

(iii) An institution of higher education is not required to recognize an award earned at the institution; and

(iv) A potential employer may determine that an award earned at the institution does not meet minimum educational requirements for employment.

(g) Written acknowledgment. -- The written acknowledgment obtained from a student under subsection (f) of this section shall be:

(1) In a form approved by the Commission;

(2) Signed by both the student and a representative of the institution; and

(3) Permanently retained in the student's file by the institution.

(h) Violations; penalties. -- A person who violates subsection (f) or (g) of this section is liable for a penalty of up to $ 5,000 for each violation.

§ 11-202 - 1. Operation without certificate [Effective July 1, 2013].

(a) In general. -- A private nonprofit institution of higher education operating under a charter granted by the General Assembly may operate without a certificate of approval from the Commission.

(b) Institutions that may operate without certificate. --

(1) Subject to the requirements imposed by this section, and except as prohibited in paragraph (2) of this subsection, a religious educational institution may operate without a certificate of approval from the Commission if the institution:

(i) Is established for religious educational purposes;

(ii) Provides educational programs only for religious vocations or purposes;

(iii) Offers only sectarian instruction designed for and aimed at individuals who hold or seek to learn the particular religious faiths or beliefs taught by the institution;

(iv) Does not offer instruction in nonsectarian or general education; and

(v) States on the certificate or diploma the religious nature of the award.

(2) A religious educational institution that is accredited by an accrediting body recognized by the United States Department of Education may not operate without a certificate of approval from the Commission.

(c) Submission of renewal application with financial statement. -- Each religious educational institution authorized to operate without a certificate of approval under subsection (b) of this section:

(1) Shall submit to the Commission, every 2 years, a renewal application that includes a financial statement reviewed by an independent accountant retained by the institution and a copy of the current catalog of courses; and

(2) May not commence or continue to operate, do business, or function unless the Commission determines on the basis of the financial statement submitted by the institution that the institution possesses adequate financial resources to support the institution's educational program.

(d) Regulations. -- The Commission shall adopt regulations establishing procedures and standards for the submission and evaluation of the application for exemption, renewal application, and reports and financial statements submitted by religious educational institutions.

(e) Judicial review of denial. -- A religious educational institution seeking to operate without a certificate of approval under subsection (b) of this section that is denied the right to operate has the right to judicial review as provided by the Administrative Procedure Act.

(f) Seeking certificate of approval permitted. -- Nothing in this section precludes a religious educational institution authorized to operate without a certificate of approval under subsection (b) of this section from seeking a certificate of approval from the Commission.

(g) Disclosure by institution of status of operating without certificate of approval. -- A religious educational institution authorized to operate without a certificate of approval under subsection (b) of this section shall disclose on all transcripts, catalogs, advertisements, and publications of the institution that the institution does not have a certificate of approval from the Commission.

(h) Violations; penalties. -- With regard to a religious educational institution authorized to operate without a certificate of approval under subsection (b) of this section, a person may not:

(1) Make a statement, whether verbal or written, that the institution is approved by, or has a certificate of approval from, the Commission, including a statement on any certificate, diploma, academic transcript, or other document issued by the institution or in any advertisement or publication, or on a website; or

(2) Enroll a student in the institution unless, before enrollment, the person gives written notice to and obtains a written acknowledgment from the student that:

(i) The institution's instructional program is only designed for and aimed at persons who hold or seek to learn the particular religious faith or beliefs of the church or religious institution, and provides only educational programs for religious vocations or purposes;

(ii) An institution of higher education is not required to accept for transfer credits earned at the institution;

(iii) An institution of higher education is not required to recognize an award earned at the institution;

(iv) A potential employer may determine that an award earned at the institution does not meet minimum educational requirements for employment;

(v) With respect to a religious counselor program, state licensing boards are not required to recognize the program as a prerequisite of licensure; and

(vi) If applicable, the institution:

1. Is not accredited; or

2. Is accredited by an accrediting body that is not recognized by the United States Department of Education.

(i) The written acknowledgment obtained from a student under subsection (h) of this section shall be:

(1) In a form approved by the Commission;

(2) Signed by both the student and a representative of the institution; and

(3) Permanently retained in the student's file by the institution.

(j) A person who violates subsection (g), (h), or (i) of this section is liable for a penalty of up to $ 5,000 for each violation.

§ 11-202 - 2. Online distance education program [Effective until July 1, 2013].

(a) Definitions. --

(1) In this subtitle the following words have the meanings indicated.

(2) "Distance education" means course work taught by an institution of postsecondary education through electronic distribution of instruction to a site other than the principal location of the institution and advertised or described as leading to the formal award of a certificate or degree.

(3) "Fully online distance education program in the State" means a program in which:

(i) 100% of the program is offered through electronic distribution of instruction to one or more sites other than the principal location of an institution; or

(ii) 51% or more of the program is offered through electronic distribution of instruction to one or more sites other than the principal location of an institution and the Commission has determined that the portion of the program offered at a location in the State, if any, does not require a certificate of approval for the institution to operate, do business, or function in the State.

(b) Registration required. --

(1) Except as provided in paragraphs (2) and (3) of this subsection, an institution of postsecondary education that enrolls Maryland students in a fully online distance education program in the State shall file an application to register with the Commission within 3 months of enrollment.

(2) This section does not apply to an institution of postsecondary education that enrolls Maryland students in a fully online distance education program in the State that has been approved or received a favorable recommendation by the Commission under § 11-206 or § 11-206.1 of this subtitle.

(3) (i) Notwithstanding the requirements of § 11-202(c-1) of this subtitle, an institution that has enrolled Maryland students before obtaining registration under this section 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 an institution's application.

(ii) An institution that continues to operate without a registration under subparagraph (i) of this paragraph shall furnish a performance bond or other form of financial guarantee to the State in an amount set by regulation that is in addition to and separate from a performance bond or other form of financial guarantee required under § 11-203 of this subtitle.

(c) Duties of institutions required to register. -- Each institution required to register under subsection (b) of this section shall:

(1) Be accredited by an accrediting body recognized and approved by the United States Department of Education;

(2) Submit to the Commission:

(i) Every 2 years, a financial statement reviewed by an independent accountant retained by the institution;

(ii) An affidavit from the president or chief executive officer of the institution affirming:

1. That the institution has not filed for bankruptcy protection under Title 11 of the United States Code during its existence; and

2. The willingness of the president or the chief executive officer to abide by the provisions of this section;

(iii) Proof of good business standing in the state in which the central administration of the institution is incorporated; and

(iv) Proof of good academic standing submitted by:

1. The regulatory higher education entity in the state in which the central administration of the institution is located; or

2. If the state in which the institution is located does not have a regulatory higher education entity, the accrediting body that accredited the institution;

(3) Promptly notify the Commission of a change in ownership or a change in majority control;

(4) Comply with the Principles of Good Practice for distance education established by the Commission through regulation;

(5) Make public and post on the institution's Web site:

(i) Whether the institution is registered in Maryland; and

(ii) The process by which to make complaints against the institution;

(6) Comply with the refund policy and procedures established by the Commission; and

(7) Be subject to complaint investigation by the Office of the Attorney General or the Commission or both.

(d) Refund policy and procedures. -- The refund policy and procedures established by the Commission shall allow for:

(1) (i) At least 2 weeks of required orientation or preenrollment instruction in a fully online distance education program in the State at no charge for a student who has completed less than 24 credits of college-level learning from an accredited institution; and

(ii) A prorated refund methodology that provides a refund to any student not covered by item (i) of this paragraph who has completed 60% or less of a course, term, or program within the applicable billing period; or

(2) A prorated refund methodology that provides a refund to any student who has completed 60% or less of a course, term, or program within the applicable billing period.

(e) Fees. --

(1) Subject to paragraph (2) of this subsection, the Commission shall require the payment of a fee set by regulation, as a condition of registration.

(2) The fees charged shall be:

(i) A fixed amount for all institutions regardless of type, location, or student enrollment; and

(ii) Set to cover the approximate cost of implementing a system of registration.

(f) Posting on website. -- The Commission shall make public and post on its Web site:

(1) A list of registered institutions of postsecondary education that offer fully online distance education programs in the State; and

(2) If the Commission denies or revokes the registration of an institution, the name of the denied or revoked institution.

(g) Report. -- On or before December 1 each year, the Commission shall report to the Governor and, in accordance with § 2-1246 of the State Government Article, the General Assembly:

(1) The number of institutions of postsecondary education that apply for registration under this section;

(2) The type and size of the institutions that apply;

(3) The number of institutions approved for registration;

(4) The number of institutions denied registration; and

(5) The number of Maryland students enrolled in institutions required to register under this section.

§ 11-202 - 2. Online distance education program

(a) Definitions. --

(1) In this subtitle the following words have the meanings indicated.

(2) "Distance education" means course work taught by an institution of postsecondary education through electronic distribution of instruction to a site other than the principal location of the institution and advertised or described as leading to the formal award of a certificate or degree.

(3) "Fully online distance education program in the State" means a program in which:

(i) 100% of the program is offered through electronic distribution of instruction to one or more sites other than the principal location of an institution; or

(ii) 51% or more of the program is offered through electronic distribution of instruction to one or more sites other than the principal location of an institution and the Commission has determined that the portion of the program offered at a location in the State, if any, does not require a certificate of approval for the institution to operate, do business, or function in the State.

(b) Registration required. --

(1) Except as provided in paragraphs (2) and (3) of this subsection, an institution of postsecondary education that enrolls Maryland students in a fully online distance education program in the State shall file an application to register with the Commission within 3 months of enrollment.

(2) This section does not apply to an institution of postsecondary education that enrolls Maryland students in a fully online distance education program in the State that has been approved or received a favorable recommendation by the Commission under § 11-206 or § 11-206.1 of this subtitle.

(3) (i) Notwithstanding the requirements of § 11-202(c-1) of this subtitle, an institution that has enrolled Maryland students before obtaining registration under this section 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 an institution's application.

(ii) An institution that continues to operate without a registration under subparagraph (i) of this paragraph shall furnish a performance bond or other form of financial guarantee to the State in an amount set by regulation that is in addition to and separate from a performance bond or other form of financial guarantee required under § 11-203 of this subtitle.

(c) Duties of institutions required to register. -- Each institution required to register under subsection (b) of this section shall:

(1) Be accredited by an accrediting body recognized and approved by the United States Department of Education;

(2) Submit to the Commission:

(i) Every 2 years, a financial statement reviewed by an independent accountant retained by the institution;

(ii) An affidavit from the president or chief executive officer of the institution affirming:

1. That the institution has not filed for bankruptcy protection under Title 11 of the United States Code during its existence; and

2. The willingness of the president or the chief executive officer to abide by the provisions of this section;

(iii) Proof of good business standing in the state in which the central administration of the institution is incorporated; and

(iv) Proof of good academic standing submitted by:

1. The regulatory higher education entity in the state in which the central administration of the institution is located; or

2. If the state in which the institution is located does not have a regulatory higher education entity, the accrediting body that accredited the institution;

(3) Promptly notify the Commission of a change in ownership or a change in majority control;

(4) Comply with the Principles of Good Practice for distance education established by the Commission through regulation;

(5) Make public and post on the institution's Web site:

(i) Whether the institution is registered in Maryland; and

(ii) The process by which to make complaints against the institution;

(6) Comply with the refund policy and procedures established by the Commission; and

(7) Be subject to complaint investigation by the Office of the Attorney General or the Commission or both.

(d) Refund policy and procedures. -- The refund policy and procedures established by the Commission shall allow for:

(1) (i) At least 2 weeks of required orientation or preenrollment instruction in a fully online distance education program in the State at no charge for a student who has completed less than 24 credits of college-level learning from an accredited institution; and

(ii) A prorated refund methodology that provides a refund to any student not covered by item (i) of this paragraph who has completed 60% or less of a course, term, or program within the applicable billing period; or

(2) A prorated refund methodology that provides a refund to any student who has completed 60% or less of a course, term, or program within the applicable billing period.

(e) Fees. --

(1) Subject to paragraph (2) of this subsection, the Commission shall require the payment of a fee set by regulation, as a condition of registration.

(2) The fees charged shall be:

(i) A fixed amount for all institutions regardless of type, location, or student enrollment; and

(ii) Set to cover the approximate cost of implementing a system of registration.

(f) Posting on website. -- The Commission shall make public and post on its Web site:

(1) A list of registered institutions of postsecondary education that offer fully online distance education programs in the State; and

(2) If the Commission denies or revokes the registration of an institution, the name of the denied or revoked institution.

(g) Report. -- On or before December 1 each year, the Commission shall report to the Governor and, in accordance with § 2-1246 of the State Government Article, the General Assembly:

(1) The number of institutions of postsecondary education that apply for registration under this section;

(2) The type and size of the institutions that apply;

(3) The number of institutions approved for registration;

(4) The number of institutions denied registration; and

(5) The number of Maryland students enrolled in institutions required to register under this section.

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