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HB0795 establishes a new subtitle in the Labor and Employment Article governing certification of public service employment for the federal Public Service Loan Forgiveness (PSLF) Program. It requires public service employers in Maryland to certify current or former employees’ employment when requested, or when an employee is separating from employment, and allows certification either by completing the federal PSLF form or by sharing the relevant employment data directly with the U.S. Department of Education if that option is available. The bill also directs employers to use a method for calculating hours worked that maximizes an employee’s ability to be treated as full-time for PSLF purposes, and it includes special rules for institutions of higher education, especially adjunct and tenured professors, by crediting classroom, contact, or credit hours at a specified conversion rate and treating consecutive academic terms as continuous employment in certain circumstances.
The bill also expands the role of the Student Loan Ombudsman in the Office of the Commissioner of Financial Regulation. The Ombudsman must develop and update awareness materials about PSLF, including a standardized letter, a detailed fact sheet, and frequently asked questions, and coordinate with other state agencies to make those materials available to public service employers. Beginning in late 2025 and 2026, employers must provide the materials to newly hired employees and then annually to all employees. The Commissioner is also required to adopt regulations to implement the subtitle.
In terms of state law impact, HB0795 creates new employer obligations for state and local government entities, public schools, public libraries, public institutions of higher education, and qualifying 501(c)(3) organizations that are public service employers under the federal program. It does not change federal PSLF eligibility rules, but it requires Maryland employers to facilitate certification and to interpret work hours in a way that favors employee access to PSLF where permitted. The bill also adds a statewide outreach and notice component through the Student Loan Ombudsman, affecting how student loan information is distributed to employees and borrowers.
The general sentiment reflected by the bill text is strongly supportive of student loan borrowers and public service workers, with a clear policy goal of increasing participation in PSLF and reducing administrative barriers to certification. No committee transcript or vote record is provided, and the available status indicates the bill was withdrawn by the sponsor, so there is no recorded floor debate or vote-based opposition in the supplied materials.
The main points of potential contention are administrative burden and employer discretion. Public service employers may need to revise certification procedures, track employment and hours more carefully, and distribute new notices to employees on a set schedule. The higher-education provisions could also be debated because they require special treatment for adjunct and tenured faculty and may affect how institutions count teaching and academic-term employment for PSLF purposes. Another possible issue is the bill’s directive that employers use a method that maximizes full-time status, which could be viewed as limiting employer flexibility in interpreting work hours.
HB0795 adds a new subtitle to the Labor and Employment Article and amends the Financial Institutions Article to expand the Student Loan Ombudsman’s duties. It imposes certification, notice, and record-related obligations on Maryland public service employers and requires the Commissioner of Labor and Industry to adopt implementing regulations. The bill affects state and local government employers, public educational institutions, libraries, and qualifying nonprofit employers, while leaving federal PSLF eligibility standards in place.
The bill appears to have a generally favorable, borrower-centered policy orientation, aiming to make PSLF easier to understand and access for public service employees. The text emphasizes maximizing eligibility and improving awareness, suggesting support for loan forgiveness participation rather than restriction. No committee testimony, vote tally, or recorded floor debate is available in the provided materials, and the bill was ultimately withdrawn by the sponsor, so there is no documented final legislative consensus in the supplied record.
Likely areas of contention include the administrative workload placed on public service employers, the requirement to certify employment promptly, and the mandate to use hour-calculation methods that maximize full-time status. Higher education employers may also object to the special treatment of adjunct and tenured faculty, including the 3.35-hours-per-credit conversion and the rule treating consecutive academic terms as continuous employment. Employers may also be concerned about the requirement to distribute PSLF materials to new hires and annually to all employees.