SB 249
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 249 (Senator Bailey)
Education, Health, and Environmental Affairs Appropriations
Higher Education - Senatorial Scholarships - Program Accreditation
This emergency bill allows a senatorial scholarship to be used at an out-of-state institution
when an academic area is not offered at an accredited program in the State. Specifically,
the program must be accredited by a national accrediting association approved by the
U.S. Department of Education.
Fiscal Summary
State Effect: The Maryland Higher Education Commission (MHEC) can allow a
senatorial scholarship to be used at an out-of-state institution under the conditions specified
in the bill using existing resources. Revenues are not affected.
Local Effect: None.
Small Business Effect: None.
Analysis
Current Law: Until June 30, 2019, each senator could award $138,000 in scholarship
funds each year. Beginning on July 1, 2019, that amount grows by the increase in tuition
and mandatory fees over the previous year at the University System of Maryland (USM)
institution with the highest annual expenses for a full-time resident undergraduate student
other than the University of Maryland University College (UMUC, now called the
University of Maryland Global Campus) and the University of Maryland, Baltimore
Campus (UMB).
To qualify for an award, an individual must be a resident of Maryland and demonstrate a
definite financial need. In addition, a senatorial scholarship may be awarded to an
individual who is on active duty with the U.S. military and domiciled in the legislative
district of the State from which the applicant seeks an award. Each senator must consider
an applicant’s financial need. An award under the program may not be less than $400 and
may not exceed the tuition and mandatory fees at the USM institution with the highest
annual tuition and fees, not including UMUC and UMB. Except under certain
circumstances, a scholarship may be held for up to four years of full-time study or
eight years of part-time study.
Eligible Institutions
A senatorial scholarship may be used at any undergraduate, graduate, or professional
school in the State or at select in-state private career schools that offer two-year certificate
programs that can transfer to a baccalaureate degree, including (1) at a degree-granting
institution of higher education, if the curriculum is approved by MHEC; (2) at a hospital
diploma school for training registered nurses; or (3) to attend as a full-time student a private
postsecondary proprietary institution that is accredited by a national accrediting association
approved by the U.S. Department of Education.
Each senator may award at most 10% of scholarship funds to applicants planning to attend
accredited undergraduate, graduate, or professional institutions outside of the State. Those
students must be studying an academic area that is not available in the State or be a person
with a hearing impairment who will be studying at an institution outside the State that
makes special provisions for persons with a hearing impairment. A senatorial scholarship
may also be used at an out-of-state institution of higher education if the applicant is an
individual who is on active duty with the U.S. military and domiciled in the State.
According to regulations, a senatorial scholarship may be used at an out-of-state institution
if the out-of-state institution makes special provisions for a hearing-impaired student if
comparable special provisions are not available to that student at a Maryland institution or
if the out-of-state institution offers a program that is not offered at an institution in
Maryland and other specified conditions are met. Current law and regulations do not
specify that an in-state program must be accredited by a national accrediting association
approved by the U.S. Department of Education.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
SB 249/ Page 2
Information Source(s): Maryland Higher Education Commission; U.S. Department of
Education; Department of Legislative Services
Fiscal Note History: First Reader - January 26, 2021
rh/rhh Third Reader - February 11, 2021
Analysis by: Caroline L. Boice Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 249/ Page 3


Statutes affected:
Text - First - Higher Education - Senatorial Scholarships - Program Accreditation: 18-405 Education
Text - Third - Higher Education - Senatorial Scholarships - Program Accreditation: 18-405 Education