Sec. 13b.01.01.03. Scope, Applicability, and Exemption

A. These regulations apply to all private career schools that require a certificate of approval to commence or continue to operate, do business, or function in the State.

B. These regulations, except where explicitly stated otherwise, do not apply to:

(1) A program delivered entirely by distance education to a single individual at a Maryland location by a person, firm, corporation, or other organization that operates all aspects of the business outside of Maryland, including but not limited to, the origination, transmission, and administration of the distance education program from outside of Maryland;

(2) Continuing education activities involving courses, seminars, workshops, and demonstrations that provide instruction or knowledge for the purpose of maintaining professional or occupational competence, licensure, or certification;

(3) Refresher or continuing education instruction sponsored by a professional group for the exclusive use and benefit of the members of that professional group;

(4) Instruction conducted by a person, firm, corporation, or other organization exclusively for its own employees;

(5) Apprenticeship as registered with the Maryland Department of Labor;

(6) Instruction provided by an individual instructor who goes to various places to offer instruction to not more than one individual;

(7) A religious educational institution that certifies, in accordance with COMAR 13B.02.04, that the institution:

(a) Is founded and operated by a church or other religious institution or organization of churches or religious institutions as an integral part of the religious ministry of that institution or organization;

(b) Offers sectarian instruction only designed for and aimed at persons who hold or seek to learn particular religious faiths or beliefs of religious institutions or religious organizations, and provides only educational programs for religious vocations; and

(c) States on the certificate or diploma the religious nature of the award; or

(8) A church or other religious institution offering a postsecondary instructional program leading to a certificate or diploma only if designed for and aimed at persons who hold or seek to learn the particular religious faith or beliefs of that church or religious institution, and providing only educational programs for religious purposes.

C. Exemption.

(1) A person providing training or instruction that is within the scope of §B of this regulation may be granted an exemption by the Secretary. A person seeking an exemption shall file documentation as required by the Secretary.

(2) Each exemption is subject to review on a periodic basis or on receipt of a complaint by the Secretary, who may require the person holding the exemption to provide further supporting documentation as determined necessary by the Secretary. A person holding an exemption shall comply with the Secretary’s request for documentation.

(3) On review by the Secretary, if a person providing training or instruction no longer qualifies for an exemption, the Secretary shall withdraw the exemption and, as required by law, the person shall cease operation and may file an application for approval to operate a private career school.

D. Partial Exemption for Nonprofit Grant-Funded Institutions that Charge No Tuition and Fees to Students.

(1) The Secretary may grant a partial exemption from the requirements of this chapter, as described in §D(2) of this regulation, to a private career school if the Secretary determines that the school:

(a) Is a nonprofit organization authorized to do business in Maryland;

(b) Charges no tuition, fees, or other costs to students or prospective students;

(c) Is funded entirely by government or private grants; and

(d) Is accountable to, and meets the performance standards of, its grantors.

(2) If the Secretary finds that a school qualifies for a partial exemption under §D(1) of this regulation, the Secretary may exempt the school from any of the following requirements of this chapter deemed inapplicable to the school:

(a) Regulation .04B(2)(b) of this chapter;

(b) Regulation .04B(6) of this chapter;

(c) Regulation .09A of this chapter;

(d) Regulation .09C of this chapter, except that the school shall disclose to students in writing that training received at the school is not necessarily transferable to another school or to a collegiate institution;

(e) Regulation .09D of this chapter, except that laboratory instruction shall be integrated with theory in accordance with sound educational practice and as approved by the Secretary;

(f) Regulation .09F of this chapter;

(g) Regulation .11E of this chapter;

(h) Regulation .11F of this chapter;

(i) Regulation .11I(3 of this chapter);

(j) Regulation .12;

(k) Regulation .18;

(l) Regulation .26B of this chapter; and

(m) Regulation .27.

(3) A school that receives a partial exemption under §D(1) of this regulation shall provide promptly to the Secretary notice and copies, if applicable, of:

(a) A performance report or annual report that the school submits to its grantors;

(b) A notice of an adverse action, or potentially adverse action, that the school receives from a grantor, accreditor, or government agency;

(c) A substantial change in financial status; and

(d) An actual or anticipated failure to meet the criteria set forth in §D(1) of this regulation.

(4) If the Secretary finds that a school no longer meets the criteria set forth in §D(1) of this regulation, the Secretary shall notify the school that it no longer qualifies for the partial exemption.

(5) A school that receives notification from the Secretary under §D(4) of this regulation shall, within 30 days of the issuance of the notification, provide to the Secretary a written plan to:

(a) Meet the criteria set forth in §D(1) of this regulation;

(b) Comply with all requirements of this subtitle, including the requirements from which the school previously was exempt under §D(2) of this regulation; or

(c) Discontinue operations and teach-out current students.

(6) Within 30 days of receipt of a school’s plan under §D(5) of this regulation, the Secretary shall notify the school if the plan is approved or requires modification.

(7) A school’s failure to submit a plan required under §D(5), failure to modify a plan under §D(6), or failure to adhere to an approved plan, may result in sanctions pursuant to Regulation .20 of this chapter.