Md. Code Regs. 13B.02.06.14

Current through Register Vol. 51, No. 12, June 14, 2024

Section 13B.02.06.14 - Revenue Requirements for Certain Institutions

A. In this regulation, "year" means July 1 through the following June 30.

B. This regulation applies to schools that:

(1) Are approved to operate in Maryland under COMAR 13B.02.01 or COMAR 13B.02.02;

(2) Are for-profit institutions;

(3) Participate in and receive funds through Title IV of the federal Higher Education Act of 1965; and

(4) Are approved by the Commission, in its role as State Approving Agency, to enroll students who receive financial assistance for education under the federal Post-9/11 Veterans Educational Assistance Act of 2008.

C. A school described under §B of this regulation may not enroll new Maryland residents unless the percentage of annual revenue from non-federal funds that has been or will be reported to the U.S. Department of Education under 34 CFR § 668.28 in 2 of the 3 immediately preceding years is at least 10 percent.

D. Institutional Responsibility.

(1) Annually and as part of an institution's report submitted under Regulation .11 of this chapter, an institution described in §B of this regulation shall:

(a) Provide to the Secretary, in the form and manner requested by the Secretary, the percentages of revenue from federal and non-federal funds most recently reported to the U.S. Department of Education under 34 CFR § 668.28; and

(b) Review the percentages provided under §D(1)(a) of this regulation and the percentages reported in the 2 preceding years to determine if the institution has met the revenue requirements in §C of this regulation.

(2) An institution that determines that it has not met the revenue requirements in §C of this regulation shall:

(a) Immediately cease enrollment of new Maryland residents;

(b) Immediately notify the Secretary; and

(c) No more than 30 days after notifying the Secretary, submit a plan to the Secretary outlining the steps the institution will take to come into compliance with the revenue requirements in §C of this regulation by the date the institution's next report to the U.S. Department of Education under 34 CFR § 668.28 is due.

E. Enforcement by Secretary.

(1) The Secretary annually shall review an institution's three most recent revenue percentages provided under §D of this regulation to determine if an institution has complied with this regulation and Education Article, § 11-210, Annotated Code of Maryland.

(2) The Secretary may issue an order to any institution in violation of this regulation or Education Article, § 11-210, Annotated Code of Maryland, to cease and desist enrollment and may impose a fine of up to $5,000.

(3) The Secretary is not prohibited from employing any other enforcement mechanism permitted by this chapter or Education Article, Title 11, Annotated Code of Maryland.

F. Subsequent Compliance.

(1) An institution in violation of this regulation may, upon submission of its next revenue percentage under §D of this chapter, submit a written request to the Secretary to determine if the institution has come into compliance.

(2) The Secretary shall make a determination within 15 days of any request made under §F(1) of this regulation.

(3) An institution in violation of this regulation may not enroll new Maryland residents until the Secretary has notified the institution, in writing, that it is in compliance with this section.

Md. Code Regs. 13B.02.06.14

Regulation .14 adopted effective 50:16 Md. R.727, eff. 8/21/2023