SB 895
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 895 (Senator Rosapepe)
Education, Health, and Environmental Affairs Appropriations
University System of Maryland - Student Fees - Review and Spending
This bill requires that, when setting mandatory and nonmandatory student fees, the
president of each University System of Maryland (USM) institution must present
information on such fees for review by the student fee committee of record. The
information presented to the committee must include (1) the amount of the fee; (2) the
students who will be charged the fee; and (3) the proposed use of revenues from the fee.
Unless the student fee committee of record reviews an exception to the use of the fee,
revenues derived from fees as reviewed by the committee must be spent by the campus unit
or department that requested the fee in a manner consistent with the intended purpose for
which the fee exists. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: USM institutions’ use of student fee revenues is restricted, but there is no
net effect on higher education revenues and expenditures, as explained below. The bill
codifies current practice to require student fee review committees.
Local Effect: None.
Small Business Effect: None.
Analysis
Current Law: Subject to the authority and applicable regulations and policies of the USM
Board of Regents, each president retains the authority to set tuition and fees.
The Board of Regents has adopted policies on the establishment of tuition and mandatory
fees, which already require student consultation. Board Policy VIII‐2.50 Policy on Student
Tuition, Fees, and Charges specifies that, for both mandatory and nonmandatory fees, each
campus must ensure that an advisory committee is established and comprises appropriate
numbers of students and stakeholders representing each area supported by a student fee.
These advisory committees must be consulted prior to the establishment or change of
student fees, and the process by which the committees are involved must be reported to the
Board of Regents along with the proposed fee schedule.
State Fiscal Impact: The Department of Legislative Services (DLS) advises that the bill
requires the presidents to present information on student fees to a committee of students,
but it does not require the committee to approve any student fees or use of fee revenues.
Further, under current Board of Regents’ policy, committees of students and other
stakeholders must be consulted on proposed changes to student fees. Therefore, DLS
assumes that the bill’s requirement for student fee review committees codifies current
practice and does not have an operational impact on USM institutions. To the extent that
student fee review committees recommend against additional fees or the use of fee
revenues, and USM institutions choose to follow the recommendation, higher education fee
revenues and expenditures decrease. Any such impact cannot be reliably estimated and is
not a direct impact of the bill.
DLS further advises that, beginning in fiscal 2022, the bill restricts the use of student fee
revenues to the department or unit within a USM institution that is collecting the fees.
While the bill allows the student fee review committees to review exceptions to the use of
fee revenues, the student committees do not have approval authority. Thus, university
flexibility to reallocate student fee revenues, and expenditures, across the campus may be
restricted by the bill. However, if the committee simply reviewing the exception is
considered sufficient to allow the fee revenues to be spent beyond the intended purpose of
the fee, then it likely has a limited impact on university flexibility. Regardless, while this
may alter the use of fee revenues, it does not change the overall amount of student fee
revenues and expenditures at a USM institution.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): University System of Maryland; Department of Legislative
Services
SB 895/ Page 2
Fiscal Note History: First Reader - March 8, 2021
rh/rhh Third Reader - April 5, 2021
Revised - Amendment(s) - April 5, 2021
Analysis by: Michael E. Sousane Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 895/ Page 3


Statutes affected:
Text - First - University System of Maryland - Student Fees - Review and Retention: 12-109 Education
Text - Third - University System of Maryland - Student Fees - Review and Spending: 12-109 Education