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*sb0509*
SENATE BILL 509
F2 (6lr1457)
ENROLLED BILL
— Education, Energy, and the Environment/Appropriations —
Introduced by Senator Rosapepe Senators Rosapepe, Attar, and Hester
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
President.
CHAPTER ______
AN ACT concerning 1
Higher Education – Workforce Pell Grant Program – Implementation 2
FOR the purpose of implementing the federal Workforce Pell Grant Program in the State; 3
requiring the Governor, after consultation with certain entities, to determine 4
whether to approve certain short –term programs as eligible for Pell Grant funds 5
subject to certain requirements; requiring a certain registered apprenticeship 6
program to include certain components in the curriculum; prohibiting institutions of 7
postsecondary education from using certain funds subject to a certain exclusion; 8
prohibiting institutions of postsecondary education from operating short –term 9
programs in a certain manner; and generally relating to the Workforc e Pell Grant 10
Program. 11
BY repealing and reenacting, without amendments, 12
Article – Education 13
Section 10–101(a), (c), and (i) 14
2 SENATE BILL 509
Annotated Code of Maryland 1
(2022 Replacement Volume and 2025 Supplement) 2
BY adding to 3
Article – Education 4
Section 11–212 5
Annotated Code of Maryland 6
(2022 Replacement Volume and 2025 Supplement) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That the Laws of Maryland read as follows: 9
Article – Education 10
10–101. 11
(a) In this division the following words have the meanings indicated. 12
(c) “Commission” means the Maryland Higher Education Commission. 13
(i) (1) “Institution of postsecondary education” means a school or other 14
institution that offers an educational program in the State for individuals who are at least 15
16 years old and who have graduated from or left elementary or secondary school. 16
(2) “Institution of postsecondary education” does not include: 17
(i) Any adult education, evening high school, or high school 18
equivalence program conducted by a public school system of the State; or 19
(ii) Any apprenticeship or on –the–job training program subject to 20
approval by the Apprenticeship and Training Council. 21
11–212. 22
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 23
INDICATED. 24
(2) “PROGRAM” MEANS THE FEDERAL WORKFORCE PELL GRANT 25
PROGRAM BY WHICH PELL GRANTS MAY BE AWARDED TO STUDENTS ENROLLED IN 26
A SHORT–TERM PROGRAM IN ACCORDANCE WITH SECTION 83002 OF THE ONE BIG 27
BEAUTIFUL BILL ACT, AS AMENDED. 28
(3) “REGISTERED APPRENTICE SHIP” MEANS AN APPRENTICESHIP 29
PROGRAM THAT IS REGISTERED WITH, AND APPROVED BY, THE U.S. DEPARTMENT 30
OF LABOR OR THE MARYLAND APPRENTICESHIP AND TRAINING COUNCIL. 31
SENATE BILL 509 3
(3) (4) “SHORT–TERM PROGRAM ” MEANS A PROGRAM OF S TUDY 1
THAT IS: 2
(I) AT LEAST 150 HOURS OF INSTRUCTION; 3
(II) LESS THAN 600 HOURS OF INSTRUCTION; 4
(III) AT LEAST 8 WEEKS; 5
(IV) LESS THAN 15 WEEKS; AND 6
(V) NOT A CORRESPONDENCE COURSE AS DEFINED IN TITLE 7
34, SUBTITLE B, CHAPTER VI, PART 600 OF THE CODE OF FEDERAL REGULATIONS 8
IN EFFECT ON JULY 1, 2021. 9
(B) THE PURPOSE OF THIS S ECTION IS TO IMPLEME NT THE WORKFORCE 10
PELL GRANT PROGRAM IN THE STATE. 11
(C) (1) THE GOVERNOR, AFTER CONSULTING WIT H THE GOVERNOR’S 12
WORKFORCE DEVELOPMENT BOARD AND THE COMMISSION, SHALL DETERMINE 13
WHETHER: 14
(I) A A SHORT–TERM PROGRAM OFFERED AT AN INSTITUTION 15
OF POSTSECONDARY EDUCATION MEETS THE REQUIREMENTS OF THIS SECTION AND 16
FEDERAL LAW FOR WORKFORCE PELL GRANTS; AND 17
(II) TO APPROVE THE SHORT–TERM PROGRAM AS ELIGIBLE FOR 18
THE PROGRAM. 19
(2) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, AN 20
INSTITUTION OF POSTS ECONDARY EDUCATION , REGARDLESS OF HAVING A 21
PHYSICAL PRESENCE IN THE STATE, MAY NOT: 22
1. DISBURSE PROGRAM FUNDS TO A ST UDENT IN THE 23
STATE; OR 24
2. ADVERTISE, MARKET, OR INFORM STUDENTS I N THE 25
STATE ABOUT THE AVAIL ABILITY OF PROGRAM FUNDS FOR A S HORT–TERM 26
PROGRAM. 27
(II) SUBPARAGRAPH (I) OF THIS PARAGRAPH DOES NOT APPLY 28
IF AN INSTITUTION OF POSTSECONDARY EDUCATION, REGARDLESS OF HAVING A 29
PHYSICAL PRESENCE IN THE STATE, OBTAINS: 30
4 SENATE BILL 509
1. THE APPROVAL OF THE GOVERNOR UNDER THIS 1
SECTION FOR EACH SHO RT–TERM PROGRAM FOR WHI CH THE INSTITUTION O F 2
POSTSECONDARY EDUCATION SEEKS TO DISBURSE PROGRAM FUNDS; AND 3
2. A DETERMINATION FROM T HE SECRETARY OF THE 4
U.S. DEPARTMENT OF EDUCATION THAT THE IN STITUTION OF POSTSECONDA RY 5
EDUCATION MEETS THE REQUIREMENTS OF THE PROGRAM FOR EACH SHORT–TERM 6
PROGRAM FOR WHICH THE INSTITUTION OF POSTSECONDARY EDUCATION SEEKS TO 7
DISBURSE PROGRAM FUNDS. 8
(3) FOR THE APPROVAL TO R EMAIN EFFECTIVE, EVERY 2 YEARS AN 9
INSTITUTION OF POSTSECONDARY EDUCATION SHALL PROV IDE INFORMATION 10
VERIFYING THE SHORT –TERM PROGRAM REMAINS IN COMPLIANCE WITH T HIS 11
SECTION AND THE PROGRAM. 12
(4) IF THE ATTORNEY GENERAL OR COURT OF A PPROPRIATE 13
JURISDICTION FINDS THE INSTITUTION OF POSTSECONDARY EDUCATION ENGAGED 14
IN UNFAIR , DECEPTIVE, OR ABUSIVE TRADE PRA CTICE UNDER TITLE 13 OF THE 15
COMMERCIAL LAW ARTICLE RELATED TO THE PROGRAM, THE GOVERNOR SHALL 16
REVOKE AN APPROVAL. 17
(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A 18
SHORT–TERM PROGRAM SEEKING APPROVAL UNDER THIS SECTION SHALL: 19
(I) PROVIDE AN EDUCATION ALIGNED WITH THE 20
REQUIREMENTS OF: 21
1. A HIGH–SKILL, HIGH–SKILL OR HIGH–WAGE 22
OCCUPATION AS IDENTIFIED BY THE STATE UNDER THE CARL D. PERKINS CAREER 23
AND TECHNICAL EDUCATION ACT; OR 24
2. AN IN–DEMAND INDUSTRY SECTOR OR OCCUPATION; 25
(II) MEET THE HIRING REQUIREMENTS OF EMPLOYERS IN THE 26
SECTORS OR OCCUPATIONS IDENTIFIED UNDER ITEM (I) OF THIS PARAGRAPH; 27
(III) 1. LEAD TO A RECOGNIZED POSTSECONDARY 28
CREDENTIAL THAT IS S TACKABLE AND PORTA BLE ACROSS MORE THAN ONE 29
EMPLOYER; OR 30
2. PREPARE STUDENTS ENROLLED IN THE SHORT–TERM 31
PROGRAM FOR EMPLOYMENT IN AN OCCUPATION FOR WHICH THERE IS O NLY ONE 32
SENATE BILL 509 5
RECOGNIZED POSTSECONDARY CREDENTIAL AND THAT AWARDS STUDENTS WITH 1
THE CREDENTIAL ON COMPLETION OF THE SHORT–TERM PROGRAM; AND 2
(IV) PREPARE STUDENTS TO P URSUE ONE OR MORE 3
CERTIFICATES OR DEGR EES AT AN INSTITUTIO N OF POSTSECONDARY E DUCATION 4
BY ENSURING THAT: 5
1. ON COMPLETION OF THE SHORT–TERM PROGRAM 6
AND ENROLLMENT IN A RELATED CERTIFICATE OR DEGREE PROGRAM, A STUDENT 7
WILL RECEIVE ACADEMI C CREDIT THAT AN INS TITUTION OF POSTSECO NDARY 8
EDUCATION WILL ACCEPT TOWARD THAT CERTIFICATE OR DEGREE; AND 9
2. THE ACADEMIC CREDIT DESCRIBED UNDER ITEM 1 OF 10
THIS ITEM WILL BE AC CEPTED TOWARD MEETIN G THE CERTIFICATE OR DEGRE E 11
PROGRAM REQUIREMENTS. 12
(2) THERE IS A REBUTTABLE PRESUMPTION THAT THE THE RELATED 13
TECHNICAL INSTRUCTIO N COMPONENT OF A FEDERALLY REGISTERED OR 14
STATE–REGISTERED REGISTERED APPRENTICESHIP PROGR AM OFFERED AT AN 15
INSTITUTION OF POSTS ECONDARY EDUCATION SATI SFIES THE REQUIREMEN TS OF 16
PARAGRAPH PARAGRAPHS (1)(I), (II), AND (III) AND (3)(III) OF THIS SUBSECTION. 17
(3) IN ADDITION TO THE REQUIREMENTS OF PARAGRAPHS (1) AND (2) 18
OF THIS SUBSECTION , AN INSTITUTION OF PO STSECONDARY EDUCATION SEEKING 19
APPROVAL UNDER THIS SECTION SHALL PROVIDE: 20
(I) DOCUMENTATION THAT, FOR THE 12 MONTHS PRECEDING 21
THE DATE ON WHICH TH E INSTITUTION OF POS TSECONDARY EDUCATION APPLIED 22
FOR APPROVAL, THE INSTITUTION OFFERED THE SHORT–TERM PROGRAM AND THE 23
SHORT–TERM PROGRAM MET ALL REQUIREMENTS OF THIS SECTION; 24
(II) DOCUMENTATION THAT THE SHORT–TERM PROGRAM HAS A 25
COMPLETION RATE OF A T LEAST 70% WITHIN 150% OF THE NORMAL TIME F OR 26
COMPLETION FOR EACH FEDERAL AID AWARD YEAR; 27
(III) DOCUMENTATION THAT THE SHORT–TERM PROGRAM HAS A 28
JOB PLACEMENT RATE O F AT LEAST 70% AFTER 180 DAYS OF COMPLETION F OR 29
EACH FEDERAL AID AWARD YEAR; 30
(IV) DOCUMENTATION THAT TH E TUITION AND FEES F OR THE 31
SHORT–TERM PROGRAM ARE IN COMPLIANCE WITH THE REQUIREMENTS OF THE 32
PROGRAM; AND 33
6 SENATE BILL 509
(V) ANY INFORMATION THE GOVERNOR’S WORKFORCE 1
DEVELOPMENT BOARD OR THE COMMISSION REQUESTS T O VERIFY COMPLIANCE 2
WITH THIS SECTION AND THE PROGRAM. 3
(4) THE GOVERNOR’S WORKFORCE DEVELOPMENT BOARD, THE 4
COMMISSION, OR ANY OTHER AUTHORIZED ENTITY MAY COLLECT AN APPLICATION 5
FEE TO COMPLETE THE EVALUATION. 6
(E) A REGISTERED APPRENTIC ESHIP PROGRAM APPROV ED FOR 7
WORKFORCE PELL GRANTS SHALL INCLUDE IN THE CURRICULUM BO TH 8
ON–THE–JOB LEARNING AND CLA SSROOM LEARNING, INCLUDING ARTIFACTS AND 9
DEMONSTRATED PERFORM ANCE OR COMPETENCY ASSESSMEN T, UNDER THE 10
GENERAL SUPERVISION OF THE FACULTY. 11
(E) (F) IN THE OPERATION OF A SHORT–TERM PROGRAM THAT IS 12
AUTHORIZED UNDER THI S SECTION , AN INSTITUTION OF PO STSECONDARY 13
EDUCATION MAY NOT: 14
(1) PARTNER, CONTRACT, OR AFFILIATE WITH AN ENTITY, 15
INSTITUTION, OR ORGANIZATION OTHER THAN A JOINT APPRENTICESHIP 16
COMMITTEE REGISTERED APPRENTIC ESHIP, TO OFFER INSTRUCTION FOR THE 17
SHORT–TERM PROGRAM THAT IS NOT ACCREDIT ED BY AN ACCREDITING AGENCY 18
RECOGNIZED AND APPROVED BY THE U.S. DEPARTMENT OF EDUCATION; UNLESS 19
THE CONTRACTING ENTITY, INSTITUTION, OR ORGANIZATION: 20
(I) CLEARLY AND PROMINENT LY DISCLOSES THAT TH E 21
CONTRACTING ENTITY IS A COMPANY THAT IS SEPARATE FROM THE INSTITUTION OF 22
POSTSECONDARY EDUCAT ION AND DESCRIBES AL L OF THE SERVICES TH AT THE 23
CONTRACTING ENTITY IS CONTRACTED TO PROVIDE FOR THE INSTITUTION IN THE 24
FOLLOWING PLACES: 25
1. ON THE INSTITUTION OF POSTSECONDARY 26
EDUCATION’S WEBSITE; 27
2. IN MARKETING MATERIALS ABOUT THE SHORT–TERM 28
PROGRAM; AND 29
3. IN ORAL COMMUNICATION S WITH PROSPECTIVE 30
STUDENTS OF THE SHORT–TERM PROGRAM; AND 31
(II) IS NOT PAID USING INCENTIVE COMPENSATION OR TUITION 32
SHARING WITH THE INSTITUTION OF POSTSECONDARY EDUCATION; AND 33
SENATE BILL 509 7
(III) (II) IS NOT INVOLVED WITH THE INSTITUTION OF 1
POSTSECONDARY EDUCAT ION’S GOVERNANCE , DECISION MAKING OVER THE 2
DESIGN OR DEVELOPMENT OF COURSE CURRICULUM OR INSTRUCTION, SETTING OF 3
SHORT–TERM PROGRAM ADMISSI ON STANDARDS , DETERMINING ENROLLME NT 4
TARGETS, OR CREATION OF NEW SHORT–TERM PROGRAMS; 5
(2) UNLESS A LOAN IS 0% INTEREST, PARTNER OR AFFILIATE WITH 6
AN ENTITY THAT OFFERS STUDENT LOANS, LINES OF CREDIT, OR INCOME SHARING 7
AGREEMENTS FOR THE SHORT–TERM PROGRAM; 8
(3) CHARGE TUITION AND FEES TO ANY STUDENT ENROLLED IN THE 9
SHORT–TERM PROGRAM THAT ARE GREATER THAN THE MAXIMUM AMOUNT OF PELL 10
GRANT FUNDS AVAILABLE FOR ANY STUDENT IN THAT SHORT–TERM PROGRAM, AS 11
ESTABLISHED BY THE SECRETARY OF EDUCATION, FOR THE PERIOD OF TIME THAT 12
THE SHORT–TERM PROGRAM IS OFFERED; OR 13
(4) OFFER THE SHORT –TERM PROGRAM US ING 14
NON–CREDIT–BEARING COURSES UNLE SS THOSE COURSES WIL L TRANSFER TO AT 15
LEAST ONE INSTITUTIO N OF POSTSECONDARY E DUCATION REGARDLESS OF 16
PROGRAM COMPLETION. 17
(F) (1) ON OR BEFORE JUNE 30 EACH YEAR , FOR EACH SHORT –TERM 18
PROGRAM APPROVED UNDER THIS SECTION, THE INSTITUTION OF POSTSECONDARY 19
EDUCATION SHALL REPORT TO THE COMMISSION ON: 20
(I) THE NUMBER OF STUDENT S ENROLLED IN SHORT –TERM 21
PROGRAMS APPROVED UNDER THIS SECTION; 22
(II) THE NUMBER OF STUDENT S WHO COMPLETED A 23
SHORT–TERM PROGRAM APPROVED UNDER THIS SECTION; 24
(III) IF THE INSTITUTION OF POSTSECONDARY EDUCAT ION IS 25
NOT PHYSICALLY LOCATED IN THE STATE, THE NUMBER OF STATE RESIDENTS WHO: 26
1. ENROLLED IN THE SHORT–TERM PROGRAM; AND 27
2. COMPLETED THE SHORT–TERM PROGRAM; 28
(IV) THE TOTAL COST OF ATTENDANCE , THE TOTAL TUITION 29
AND FEES, AND THE AVERAGE NET PRICE OF THE SHORT–TERM PROGRAM; AND 30
(V) DEMOGRAPHIC AND FINAN CIAL AID INFORMATION OF 31
STUDENTS ENROLLED IN THE SHORT–TERM PROGRAM. 32
8 SENATE BILL 509
(G) (1) (I) THE GOVERNOR’S WORKFORCE DEVELOPMENT BOARD 1
SHALL REQUEST AND CO LLECT RELEVANT DATA FROM EACH INSTITUTIO N OF 2
POSTSECONDARY EDUCATION OFFERING AN APPROVED SHORT–TERM PROGRAM. 3
(II) THE DATA COLLECTED UNDER SUBPARAGRAPH (I) OF THIS 4
PARAGRAPH MAY INCLUDE: 5
1. INFORMATION REGARDING EMPLOYER 6
PARTNERSHIPS; 7
2. JOB PLACEMENT SECTORS; AND 8
3. THE ALIGNMENT OF SHOR T–TERM PROGRAM 9
CURRICULA WITH THE HIRING REQUIREMENTS OF IN–DEMAND INDUSTRY SECTORS. 10
(III) EACH INSTITUTION OF P OSTSECONDARY EDUCATI ON 11
OFFERING AN APPROVED SHORT–TERM PROGRA M SHALL PROVIDE THE DATA 12
REQUESTED BY THE GOVERNOR’S WORKFORCE DEVELOPMENT BOARD UNDER 13
THIS PARAGRAPH IN THE FORM AND MANNER REQUIRED BY THE BOARD. 14
(2) ON OR BEFORE SEPTEMBER 30 EACH YEAR , THE GOVERNOR’S 15
WORKFORCE DEVELOPMENT BOARD AND THE COMMISSION SHALL REPORT TO THE 16
GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 17
ARTICLE, A SUMMARY OF THE REPORTS REQUIRED INFORMATION COLLECTE D 18
UNDER PARAGRAPH (1) OF THIS SUBSECTION A ND THE DEMOGRAPHIC A ND 19
FINANCIAL AID INFORM ATION OF STATE STUDENTS WHO EN ROLLED IN 20
SHORT–TERM PROGRAMS APPROVED UNDER THIS SECTION. 21
(G) (H) THE GOVERNOR’S WORKFORCE DEVELOPMENT BOARD AND THE 22
COMMISSION MAY ADOPT REGULATIONS NECESSARY TO CARRY OUT THIS SECTION. 23
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 24
1, 2026. 25