1794                                    LAWS OF MARYLAND                                 Ch. 399

Proprietary Institutions of Education

FOR the purpose of authorizing the State Board for Higher
Education, by rule and regulation, to create and

provide for the operation of an institution of

postsecondary education fund a guaranty fund for

postsecondary, nondegree granting, proprietary

institutions of education; requiring certain
institutions to pay a certain fee into the fund;
providing for a reassessment of the fee if authorized
claims exceed the amount present in the fund;
prohibiting the issuance of a certificate of approval
to an institution that fails to pay the fee; providing
for the maintenance of the fund; and generally relating
to the purpose, management, and operation of an
institution of postsecondary education fund a guaranty
fund for postsecondary, nondegree granting, proprietary
institutions of education.

BY adding to

Article - Education

Section 12-204(d)

Annotated Code of Maryland

(1978 Volume and 1980 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article - Education

12-204.

(D) (1) THE STATE BOARD FOR HIGHER EDUCATION, BY RULE
OR AND REGULATION, MAY CREATE AND PROVIDE FOR THE OPERATION
OF AN INSTITUTION OF POSTSECONDARY EDUCATION FUND A GUARANTY
FUND FOR POSTSECONDARY, NONDEGREE GRANTING, PROPRIETARY
INSTITUTIONS OF EDUCATION.

(2)  THE FUND SHALL BE USED TO REIMBURSE ANY
INDIVIDUAL STUDENT AT A POSTSECONDARY, NONDEGREE GRANTING,
PROPRIETARY INSTITUTION OF EDUCATION WHO SUFFERS A LOSS OF
TUITION AND FEES BECAUSE AN THE INSTITUTION HAS VIOLATED ANY
PROVISION OF SUBSECTION (A)(1) OR (2) OF THIS SECTION.

(3) (I) EACH POSTSECONDARY, NONDEGREE GRANTING,
PROPRIETARY INSTITUTION THAT IS REQUIRED TO OBTAIN A
CERTIFICATE OF APPROVAL SHALL PAY AN ANNUAL FEE INTO THE
FUND.

(II) THE STATE BOARD FOR HIGHER EDUCATION
SHALL DETERMINE THE AMOUNT OF THE FEE BASED ON THE PROBABLE
AMOUNT OF MONEY NEEDED FOR THE FUND FOR EACH FISCAL YEAR
YEAR. IF THE MONEYS IN THE GUARANTY FUND ARE INSUFFICIENT TO
SATISFY DULY AUTHORIZED CLAIMS, THE MEMBER INSTITUTIONS