PARRIS N. GLENDENING, Governor

Ch. 111

Prepaid-Tuition Higher Education Investment Program; clarifying the purpose of
the Program and the types of funds of which the Program shall be composed;
defining certain terms; providing that neither the faith and credit nor the taxing
power of the State is pledged to the payment of debts, contracts, and obligations of
the Program, institutions of higher education, and other participants in the
Program; establishing a Maryland Prepaid Tuition Higher Education Investment
Program Board; specifying the membership, appointment, terms, and removal of
members of the Board; providing that the budget for the Maryland Higher
Education Investment Board and its staff is subject to review by the General
Assembly for information purposes; establishing the powers and duties of the
Board; establishing administrative rules for the Board; authorizing the Board to
adopt regulations to carry out its responsibilities; requiring the Board to adopt a
certain investment plan for the Program; establishing the fiduciary responsibilities
of the Board; prohibiting certain transactions involving program assets; requiring
the Board to purchase certain bonds for fiduciaries; exempting the Program from
certain laws; requiring the Board to establish a program of prepaid tuition higher
education investment contracts for the advance payment of tuition at public
institutions of higher education in the State; authorizing the Board to provide for
circumstances under which money may be withdrawn from the Program; specifying
certain requirements concerning prepaid-tuition higher education investment
contracts; requiring the Board to provide for certain changes in circumstances of
beneficiaries and purchasers of prepaid tuition higher education investment
contracts; providing for refunds under certain circumstances; prohibiting any legal
attachment of contract benefits or assets of the Program; authorizing certain public
agencies to provide for payroll deductions for employees to purchase prepaid
tuition higher education investment contracts; requiring an annual audit of the
Program; requiring the Board to report to the Governor and General Assembly
annually concerning the audit and certain matters concerning the Program;
establishing provisions for the discontinuance of the Program; prohibiting
inspection of certain records except in certain circumstances; requiring a certain
appropriation for a certain fiscal year; establishing the terms of the initial members
of the Board; requiring the Board to solicit a certain opinion before entering into a
certain contract; requiring the Board to provide full disclosure that a contract is not
a guarantee when undertaking marketing efforts; and generally relating to
establishing a method to provide for the prepayment of tuition at the public
institutions of higher education in the State.

BY repealing and reenacting, with amendments,
Article - Education
Section 11-105(h)(l)
Annotated Code of Maryland
(1997 Replacement Volume)

BY adding to

Article - Education

Section 18-1901 through 18-1914 18-1916, inclusive, to be under the new subtitle

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