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HB 1373

Education - Virtual Schools - Operation by For-Profit Entities

2025 Regular Session Introduced by Jeff Ghrist and 3 co-sponsors

Allows county boards to contract with for‑profit or nonprofit entities to operate public virtual schools, subject to MSDE approval and existing safeguards.

Hearing 3/03 at 11:00 a.m.
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Bill Summary · HB 1373

Summary — HB 1373 (Education — Virtual Schools — Operation by For‑Profit Entities)

Bill: HB 1373 — Education: Virtual Schools — Operation by For‑Profit Entities (Maryland)
Status note: Hearing scheduled 3/03 at 11:00 a.m. (as listed in bill info)
Introduced: February 7, 2025 (first reader Feb. 27, 2025)
Effective date (as drafted): July 1, 2025

Main purpose / intent

To remove a statutory prohibition that currently prevents a county board of education from contracting with a for‑profit entity to operate or administer a public virtual school. The bill would allow county boards to contract either with for‑profit or nonprofit entities to run virtual schools (subject to Department of Education approval and existing controls).

Key provisions

  • Repeals the statutory language that barred a county board from contracting with a for‑profit entity to operate or administer a virtual school; after repeal, a county board may contract with a for‑profit entity or a nonprofit to operate/administer a virtual school.
  • Leaves other existing statutory requirements for virtual schools in place, including:
    • Department of Education (MSDE) approval is required to establish virtual schools and MSDE may revoke approval for failure to meet standards.
    • Limits on grade bands (one virtual school per elementary, middle, and high school bands, with limited exceptions).
    • Prohibition on including prekindergarten or kindergarten classes in virtual schools.
    • Requirements that virtual schools comply with applicable federal and State laws and curriculum/standards oversight by MSDE (attendance, engagement, program quality, reporting, etc.) — as described under current law.
  • Maintains MSDE’s authority to set standards and to approve/revoke virtual school operation; local boards retain appeals rights to the State Board of Education if denied.
  • Effective date specified as July 1, 2025.

Who or what would be affected

  • Local (county) boards of education: gain the option to contract with for‑profit organizations to operate or administer virtual schools.
  • For‑profit education providers: newly eligible to contract to operate/administer public virtual schools in counties that choose to contract.
  • Current nonprofit providers and virtual school students: existing regulatory, curricular and student eligibility requirements continue to apply.
  • Maryland State Department of Education (MSDE): retains approval and oversight responsibilities (no material change in approval process anticipated).

Fiscal and operational impact

  • State fiscal effect: None expected — the bill targets local contracting options and does not materially change MSDE’s virtual school approval workload.
  • Local fiscal effect: Indeterminate — allowing for‑profit operators may increase or decrease local expenditures depending on contract terms and provider choices.
  • Small business: Minimal impact; opens an additional contracting market for private education providers.

Procedural/timeline notes

  • The bill as filed takes effect July 1, 2025.
  • MSDE retains authority to approve, revoke, and set standards for virtual schools; local boards must continue to comply with statutory enrollment, reporting, and program quality requirements.

Note: This summary focuses on Maryland HB 1373 (2025) as titled and described; other documents labeled “HB 1373” in different jurisdictions address unrelated topics.

Compiled from official sources — confirm details with the bill’s official record.

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