Ch. 89                                     1996 LAWS OF MARYLAND

(1) A RESIDENT OF THE STATE AT THE TIME THAT THE PURCHASER
ENTERS INTO A PREPAID TUITION CONTRACT; OR

(2) A NONRESIDENT OF THE STATE WHO IS THE CHILD OF A
NONCUSTODIAL PARENT WHO IS A RESIDENT OF THE STATE AT THE TIME THAT THE
PARENT BECOMES A PURCHASER OF A PREPAID TUITION CONTRACT.

(G) "TUITION" MEANS THE CHARGES IMPOSED BY A 2-YEAR OR 4-YEAR
PUBLIC INSTITUTION OF HIGHER EDUCATION IN THE STATE FOR ENROLLMENT AT

THE INSTITUTION AND INCLUDES REGISTRATION AND ALL FEES REQUIRED AS A

CONDITION OF ENROLLMENT.
18-2102.

IT IS THE INTENT OF THE GENERAL ASSEMBLY TO ENHANCE THE
ACCESSIBILITY AND AFFORDABILITY OF HIGHER EDUCATION FOR ALL CITIZENS OF
THE STATE BY ESTABLISHING A METHOD TO PROVIDE FOR THE PREPAYMENT OF
TUITION AT THE PUBLIC INSTITUTIONS OF HIGHER EDUCATION IN THE STATE.

18-2103.

(A)    THERE IS A MARYLAND HIGHER EDUCATION TUITION TRUST FUND.

(B)     THE PURPOSE OF THE FUND IS TO PROVIDE:

(1) A MEANS FOR PAYMENT IN ADVANCE OF ENROLLMENT AT ANY
PUBLIC INSTITUTION OF HIGHER EDUCATION IN THE STATE OF THE COST OF
TUITION AND, IF APPLICABLE, DORMITORY RESIDENCE, AT A RATE THAT IS LOWER
THAN THE PROJECTED COST AT THE TIME OF ACTUAL ENROLLMENT; AND

(2) A GUARANTEE TO A STUDENT WHO ENROLLS AT A PUBLIC
INSTITUTION OF HIGHER EDUCATION IN THE STATE THAT TUITION IN EXCESS OF
THE TERMS OF THE PREPAID TUITION CONTRACT WILL NOT BE CHARGED.

(C) THE FUND CONSISTS OF:

(1) PAYMENTS RECEIVED FROM PREPAID TUITION CONTRACTS MADE
UNDER THE PROVISIONS OF THIS SUBTITLE;

(2) BEQUESTS, ENDOWMENTS, OR FUNDS FROM ANY OTHER
AVAILABLE PRIVATE SOURCE;

(3)     INTEREST AND INCOME EARNED FROM THE INVESTMENTS OF THE
FUND; AND

(4)     FEDERAL, STATE, OR LOCAL FUNDS, OR FUNDS FROM ANY OTHER
AVAILABLE PUBLIC SOURCE.

(D) MONEY REMAINING IN THE FUND AT THE END OF THE FISCAL YEAR
SHALL REMAIN IN THE FUND AND MAY NOT REVERT TO THE GENERAL FUND.

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