State Retirement and Pension System – Cost–of–Living Adjustments – Clarification
Summary
HB1138 authorizes the Secretary of Higher Education to permit certain private career schools to begin advertising before they receive a certificate of approval to operate in Maryland. To qualify, a school must have completed a market survey, secured property for the school, finished any needed construction or renovations, obtained necessary equipment and permits other than the certificate itself, and be likely to receive approval from the Maryland Higher Education Commission. The Secretary must also approve the request before advertising may begin.
The bill limits what these schools may say in pre-approval advertising. Permitted advertising may include information about the school’s opening, anticipated opening date, programs of instruction, and application process, but it must clearly disclose that approval is still pending. The bill also allows the school to collect contact information from prospective students, but it may not collect fees or enter into enrollment agreements before approval. The Secretary is directed to adopt regulations governing the approval process, and the act takes effect July 1, 2025.
Impact
The bill amends the Education Article by adding a new section governing pre-approval advertising by private career schools. It creates a new regulatory pathway for schools that are close to opening to market themselves and gather leads before receiving a certificate of approval, while preserving state oversight through Secretary approval, disclosure requirements, and future regulations. The practical effect is to change how private career schools may recruit prospective students during the startup phase, without altering the underlying certification requirement to operate in the State.
Sentiment
The bill appears to have been broadly supported. It received a favorable committee report with amendments, was adopted by the House, and passed third reading unanimously in the House with 138 yeas and 0 nays. The available record shows no committee transcript opposition or recorded floor dissent, suggesting general agreement that the measure provides a limited, regulated flexibility for schools preparing to open.
Contention
No major contention is evident in the available materials. The main policy balance in the bill is between allowing private career schools to advertise earlier and protecting prospective students from premature enrollment commitments or misleading claims. Any concern would likely center on consumer protection and ensuring that only schools likely to be approved can advertise, but the bill addresses that by requiring Secretary approval, pending-approval disclosures, and a prohibition on fees or enrollment agreements before certification.