1603-S

AN ACT Relating to higher education; amending RCW 28B.15.031, 28B.15.067, 28B.15.070, 28B.15.202, 28B.15.402, 28B.15.502, 28B.15.740, 28B.15.820, 28B.15.910, 43.88.140, 28B.101.040, and 28B.12.040; adding new sections to chapter 28B.15 RCW; adding new sections to chapter 28B.10 RCW; adding new sections to chapter 28B.80 RCW; creating new sections; and repealing RCW 28B.15.065 and 28B.15.824.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. This act shall be known as the college promise act.

Sec. 2. RCW 28B.15.031 and 1987 c 15 s 2 are each amended to read as follows:

The term "operating fees" as used in this chapter shall include the fees, other than building fees, charged all students registering at the state's colleges and universities but shall not include fees for short courses, self-supporting degree credit programs and courses, marine station work, experimental station work, correspondence or extension courses, and individual instruction and student deposits or rentals, disciplinary and library fines, which colleges and universities shall have the right to impose, laboratory, gymnasium, health, and student activity fees, or fees, charges, rentals, and other income derived from any or all revenue producing lands, buildings and facilities of the colleges or universities heretofore or hereafter acquired, constructed or installed, including but not limited to income from rooms, dormitories, dining rooms, hospitals, infirmaries, housing or student activity buildings, vehicular parking facilities, land, or the appurtenances thereon, or such other special fees as may be established by any college or university board of trustees or regents from time to time. All moneys received as operating fees at any institution of higher education shall be ((~~transmitted to the state treasurer within thirty-five days of receipt to be deposited in the state general fund~~)) deposited in a local account containing only operating fees revenue and related interest: PROVIDED, That two and one-half percent of moneys received as operating fees, and an additional forty percent or more of moneys received from charging operating fees above statutory minimum levels be exempt from such deposit and be retained by the institutions for the purposes of RCW 28B.15.820((: PROVIDED FURTHER, That money received by institutions of higher education from the periodic payment plan authorized by RCW 28B.15.411 shall be transmitted to the state treasurer within five days following the close of registration of the appropriate quarter or semester)).

Sec. 3. RCW 28B.15.067 and 1992 c 231 s 4 are each amended to read as follows:

(1) ((Tuition fees shall be established and adjusted annually under the provisions of this chapter beginning with the 1987-88 academic year. Such fees shall be identical, subject to other provisions of this chapter, for students enrolled at either state university, for students enrolled at the regional universities and The Evergreen State College and for students enrolled at any community college. Tuition fees shall reflect the undergraduate and graduate educational costs of the state universities, the regional universities and the community colleges, respectively, in the amounts prescribed in this chapter.)) By July 1st of each year, the governing boards of the state universities, the regional universities, The Evergreen State College, and the state board for community and technical colleges shall set tuition fees and student services and activities fees of the respective institutions, subject to any minimum and maximum tuition fee amounts established and adjusted annually by the higher education coordinating board under the provisions of this chapter. Rates may vary by term.

(2) By July 1st of each year, each institution of higher education and the state board for community and technical colleges shall report the following to the higher education coordinating board: (a) Annual tuition rates in effect beginning with the subsequent fall term; and (b) steps taken to ensure that resident graduate and resident professional students are not denied access due to a lack of financial aid if resident graduate or resident professional rates are raised above the minimum amounts established and adjusted annually by the higher education coordinating board under the provisions of this chapter.

(3) The tuition fees established under this chapter shall not apply to high school students enrolling in community colleges under RCW 28A.600.300 through 28A.600.395.

Sec. 4. RCW 28B.15.070 and 1992 c 231 s 5 are each amended to read as follows:

(1) The higher education coordinating board, in consultation with the house of representatives and senate committees responsible for higher education, the respective fiscal committees of the house of representatives and senate, the office of financial management, and the state institutions of higher education, shall develop by December of every fourth year beginning in 1989, definitions, criteria, and procedures for determining the undergraduate and graduate educational costs for the state universities, regional universities, and community colleges upon which minimum and maximum tuition fees will be based.

(2) Every four years, the state institutions of higher education in cooperation with the higher education coordinating board shall perform an educational cost study pursuant to subsection (1) of this section. The study shall be conducted based on every fourth academic year beginning with 1989-90. Institutions shall complete the studies within one year of the end of the study year and report the results to the higher education coordinating board for consolidation, review, and distribution.

(3) In order to conduct the study required by subsection (2) of this section, the higher education coordinating board, in cooperation with the institutions of higher education, shall develop a methodology that requires the collection of comparable educational cost data, which utilizes a faculty activity analysis or similar instrument.

(4) Beginning with the 1993-94 academic year, based on the most recent cost study, the higher education coordinating board shall determine annual minimum and maximum tuition fees.

NEW SECTION. Sec. 5. The following acts or parts of acts are each repealed:

(1) RCW 28B.15.065 and 1977 ex.s. c 322 s 6; and

(2) RCW 28B.15.824 and 1992 c 231 s 36.

Sec. 6. RCW 28B.15.202 and 1992 c 231 s 7 are each amended to read as follows:

Minimum and maximum tuition fees and maximum services and activities fees at the University of Washington ((~~and at Washington State University~~)) for other than the summer term shall be as follows:

(1) For full-time resident undergraduate students ((and all other full time resident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine)) who have accumulated less than one hundred thirty percent of the minimum number of credit hours required for the students' degree programs, the maximum total tuition fees shall be ((~~thirty-three percent~~)) one-third of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~one hundred and twenty dollars~~)) six percent of total tuition fees.

(2) For full-time resident undergraduate students who do not meet the requirements of subsection (1) of this section, and full-time resident postbaccalaureate students not enrolled in graduate or law programs or in programs leading to degrees of doctor of medicine or doctor of dental surgery, the minimum total tuition fees shall be twenty-three percent, and the maximum total tuition fees shall be forty percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be six percent of total tuition fees.

((~~(2)~~)) (3) For full-time resident graduate and law students not enrolled in programs leading to the degrees of doctor of medicine((,)) and doctor of dental surgery((~~, and doctor of veterinary medicine~~)), the minimum total tuition fees shall be twenty-three percent, and the maximum total tuition fees shall be forty percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~one hundred and twenty dollars~~)) four percent of total tuition fees. Tuition rates may vary by program.

((~~(3)~~)) (4) For full-time resident students enrolled in programs leading to the degrees of doctor of medicine((,)) and doctor of dental surgery, ((~~and doctor of veterinary medicine,~~)) the total minimum tuition fees shall be one hundred sixty-seven percent of ((~~such~~)) the minimum fees charged in subsection ((~~(2)~~)) (3) of this section: PROVIDED, That the building fees for each academic year shall be ((~~three hundred and forty-two dollars~~)) six percent of total tuition fees. Tuition rates may vary by program.

((~~(4)~~)) (5) For full-time nonresident undergraduate students and ((~~such~~)) other full-time nonresident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine((,)) and doctor of dental surgery((~~, or doctor of veterinary medicine~~)), the minimum total tuition fees shall be one hundred percent of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~three hundred and fifty-four dollars~~)) six percent of total tuition fees.

((~~(5)~~)) (6) For full-time nonresident graduate and law students not enrolled in programs leading to the degrees of doctor of medicine((,)) and doctor of dental surgery((~~, and doctor of veterinary medicine~~)), the minimum total tuition fees shall be sixty percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~three hundred and fifty-four dollars~~)) four percent of total tuition fees. Tuition rates may vary by program.

((~~(6)~~)) (7) For full-time nonresident students enrolled in programs leading to the degrees of doctor of medicine((,)) and doctor of dental surgery((~~, and doctor of veterinary medicine,~~)) the minimum total tuition fees shall be one hundred sixty-seven percent of such fees charged in subsection ((~~(5)~~)) (6) of this section: PROVIDED, That the building fees for each academic year shall be ((~~five hundred and fifty-five dollars.~~

~~(7)~~)) four percent of total tuition fees. Tuition rates may vary by program.

(8) The governing board((s)) of the ((~~state universities~~)) University of Washington shall charge to and collect from each student, a services and activities fee. The governing board may increase the existing fee annually, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the annual percentage increase in resident undergraduate tuition fees: PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

NEW SECTION. Sec. 7. A new section is added to chapter 28B.15 RCW to read as follows:

Minimum and maximum tuition fees and maximum services and activities fees at Washington State University for other than the summer term shall be as follows:

(1) For full-time resident undergraduate students who have accumulated less than one hundred thirty percent of the minimum number of credit hours required for the students' degree programs, the maximum total tuition fees shall be one-third of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.070: PROVIDED, That the building fees for each academic year shall be six percent of total tuition fees.

(2) For full-time resident undergraduate students who do not meet the requirements of subsection (1) of this section and full-time resident postbaccalaureate students not enrolled in graduate programs or in programs leading to the degree of doctor of veterinary medicine, the minimum total tuition fees shall be twenty-three percent, and the maximum total tuition fees shall be forty percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be six percent of total tuition fees.

(3) For full-time resident graduate students not enrolled in programs leading to the degree of doctor of veterinary medicine, the 0minimum total tuition fees shall be twenty-three percent, and the maximum total tuition fees shall be forty percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be four percent of total tuition fees. Tuition rates may vary by program.

(4) For full-time resident students enrolled in programs leading to the degree of doctor of veterinary medicine, the minimum total tuition fees shall be one hundred sixty-seven percent of such fees charged in subsection (3) of this section: PROVIDED, That the building fees for each academic year shall be six percent of total tuition fees. Tuition rates may vary by program.

(5) For full-time nonresident undergraduate students and nonresident students not in graduate study programs or enrolled in programs leading to the degree of doctor of veterinary medicine, the minimum total tuition fees shall be one hundred percent of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be six percent of total tuition fees.

(6) For full-time nonresident graduate students not enrolled in programs leading to the degree of doctor of veterinary medicine, the minimum total tuition fees shall be sixty percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be four percent of total tuition fees. Tuition rates may vary by program.

(7) For full-time nonresident students enrolled in programs leading to the degree of doctor of veterinary medicine, the minimum total tuition fees shall be one hundred sixty-seven percent of such fees charged in subsection (6) of this section: PROVIDED, That the building fees for each academic year shall be four percent of total tuition fees. Tuition rates may vary by program.

(8) The governing board of Washington State University shall charge to and collect from each student a services and activities fee. The governing board may increase the existing fee, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the annual percentage increase in resident undergraduate tuition fees: PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

Sec. 8. RCW 28B.15.402 and 1992 c 231 s 10 are each amended to read as follows:

Minimum and maximum tuition fees and maximum services and activities fees at the regional universities and The Evergreen State College for other than the summer term shall be as follows:

(1) Except as provided for in section 10 of this act, for full-time resident undergraduate students ((~~and all other full time resident students not in graduate study programs~~)) who have accumulated less than one hundred thirty percent of the minimum number of credit hours needed for the students' degree programs, the maximum total tuition fees shall be twenty-five percent of the per student undergraduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~seventy-six dollars and fifty cents~~)) five percent of total tuition fees.

(2) For full-time resident undergraduate students who do not meet the requirements of subsection (1) of this section and full-time resident postbaccalaureate students not enrolled in graduate programs, the minimum total tuition fees shall be twenty-three percent, and the maximum total tuition fees shall be forty percent of the per student graduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15. 070: PROVIDED, That the building fees for each academic year shall be five percent of total tuition fees.

(3) For full-time resident graduate students, the minimum total tuition fees shall be twenty-three percent, and the maximum total tuition fees shall be forty percent of the per student graduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~seventy-six dollars and fifty cents~~)) three percent of total tuition fees. Tuition rates may vary by program.

((~~(3)~~)) (4) Except as provided for in section 10 of this act, for full-time nonresident undergraduate students and all other full-time nonresident students not in graduate study programs, the minimum total tuition fees shall be one hundred percent of the per student undergraduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~two hundred and ninety-five dollars and fifty cents~~)) five percent of total tuition fees.

((~~(4)~~)) (5) For full-time nonresident graduate students, the minimum total tuition fees shall be seventy-five percent of the per student graduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~two hundred and ninety-five dollars and fifty cents~~)) four percent of total tuition fees. Tuition rates may vary by program.

((~~(5)~~)) (6) The governing boards of each of the regional universities and The Evergreen State College shall charge to and collect from each student, a services and activities fee. The governing board may increase the existing fee annually, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the annual percentage increase in resident undergraduate tuition fees: PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

Sec. 9. RCW 28B.15.502 and 1992 c 231 s 11 are each amended to read as follows:

Minimum and maximum tuition fees and maximum services and activities fees at each community college for other than the summer term shall be set by the state board for community and technical colleges as follows:

(1) For full-time resident students, the maximum total tuition fees shall be twenty-three percent of the per student educational costs at the community colleges computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~one hundred and twenty-seven dollars and fifty cents~~)) fifteen percent of tuition fees.

(2) For full-time nonresident students, the minimum total tuition fees shall be one hundred percent of the per student educational costs at the community colleges computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~four hundred and three dollars and fifty cents~~)) eleven percent of tuition fees.

(3) The governing boards of each of the state community colleges shall charge to and collect from each student a services and activities fee. Each governing board may increase the existing fee annually, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the annual percentage increase in resident student tuition fees: PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

(4) Tuition and services and activities fees consistent with subsection (3) of this section shall be set by the state board for community and technical colleges for summer school students unless the community college charges fees in accordance with RCW 28B.15.515.

Subject to the limitations of RCW 28B.15.910, each governing board may charge such fees for ungraded courses, noncredit courses, community services courses, and self-supporting courses as it, in its discretion, may determine, consistent with the rules and regulations of the state board for community and technical colleges.

Before June 30, 1995, no individual waiver program under this section may be reduced by more than twice the percentage reduction required in operating fee foregone revenue from tuition waivers in the biennial state appropriations act.

NEW SECTION. Sec. 10. A new section is added to chapter 28B.15 RCW to read as follows:

(1) Eastern Washington University may, on a pilot basis for the 1993-1995 biennium, increase tuition and vary rates by program, for students enrolled in certain high-cost undergraduate programs in the allied health sciences. For programs in which tuition is increased, the university shall ensure that resident students are not denied access due to a lack of financial aid. Except for moneys deposited in the institutional long-term loan fund under RCW 28B.15.031, additional moneys received from the increase shall be used for improvements in the respective programs. By January 1, 1995, the university shall report to the higher education coordinating board, and the higher education and fiscal committees of the house of representatives and the senate regarding the impact of any increased rates on program quality and access.

(2) This section shall expire June 30, 1995.

NEW SECTION. Sec. 11. A new section is added to chapter 28B.15 RCW to read as follows:

It is the intent of the legislature that:

In making appropriations from the state's general fund to institutions of higher education, each appropriation shall conform to the following:

(1) The appropriation shall be reduced by the amount of operating fees revenue estimated to be collected from students enrolled at the state-funded enrollment level specified in the omnibus biennial operating appropriations act, and paying fees at the minimum or maximum rates established in this chapter, minus obligations under RCW 28B.15.820 and 43.99I.040 and minus the amount of waived operating fees authorized under RCW 28B.15.910;

(2) The appropriation shall not be reduced by the amount of operating fees revenue collected from students enrolled above the state-funded level, but within the overenrollment limitations, specified in the omnibus biennial operating appropriations act;

(3) The general fund‑-state appropriation shall not be reduced by the amount of operating fees revenue collected as a result of waiving less operating fees revenue than the amounts authorized under RCW 28B.15.910; and

(4) The appropriation shall not be reduced by revenue resulting from operating fee rates being set above the minimum rates established in this chapter, nor shall the appropriation be increased as a result of operating fee rates established below the maximum rates established in this chapter.

NEW SECTION. Sec. 12. A new section is added to chapter 28B.15 RCW to read as follows:

For the purpose of charging tuition fees and services and activities fees, in any academic term a full-time undergraduate student is a student registered for ten or more credit hours.

NEW SECTION. Sec. 13. A new section is added to chapter 28B.15 RCW to read as follows:

It is the intent of the legislature that resident students and students with limited financial resources not be adversely impacted as a result of revised tuition policies. These revised tuition policies include permitting institutional governing boards to charge tuition fees above statutory minimum levels; vary tuition for different graduate programs; and retain operating fees locally. By October 30th of each even-numbered year, the higher education coordinating board shall provide a tuition and fees report to the governor and appropriate legislative committees. The report shall include, but need not be limited to: The number of resident and nonresident students enrolled at each public college and university; a comparison of resident to nonresident enrollment over time; any impact of differential programmatic tuition rates on needy students; any impact of institutional tuition and enrollment policies on the board's goals as outlined in the master plan update; and recommendations for any legislation needed to maintain enrollment opportunities for resident students.

Sec. 14. RCW 28B.15.740 and 1992 c 231 s 26 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section, the total dollar amount of tuition and fee waivers awarded by the governing boards shall not exceed four percent, except for the community colleges considered as a whole, such amount shall not exceed three percent of an amount determined by estimating the total collections from tuition and services and activities fees had no such waivers been made, and deducting the portion of that total amount that is attributable to the difference between resident and nonresident fees: PROVIDED, That at least three-fourths of the dollars waived shall be)) for needy students who are eligible for resident tuition and fee rates pursuant to RCW 28B.15.012 through 28B.15.015((: PROVIDED FURTHER, That the remainder of the dollars waived, not to exceed one-fourth of the total, may be applied to other students at the discretion of the governing boards, except on the basis of participation in intercollegiate athletic programs: PROVIDED FURTHER, That the waivers for undergraduate and graduate students of foreign nations under RCW 28B.15.556 are not subject to the limitation under this section.

(2) In addition to the tuition and fee waivers provided in subsection (1) of this section and subject to the provisions of RCW 28B.15.455 and 28B.15.460, a total dollar amount of tuition and fee waivers awarded by any state university, regional university, or state college under this chapter, not to exceed one percent, as calculated in subsection (1) of this section, may be used for the purpose of achieving or maintaining gender equity in intercollegiate athletic programs. At any institution that has an underrepresented gender class in intercollegiate athletics, any such waivers shall be awarded:

(a) First, to members of the underrepresented gender class who participate in intercollegiate athletics, where such waivers result in saved or displaced money that can be used for athletic programs for the underrepresented gender class. Such saved or displaced money shall be used for programs for the underrepresented gender class; and

(b) Second, (i) to nonmembers of the underrepresented gender class who participate in intercollegiate athletics, where such waivers result in saved or displaced money that can be used for athletic programs for members of the underrepresented gender class. Such saved or displaced money shall be used for programs for the underrepresented gender class; or (ii) to members of the underrepresented gender class who participate in intercollegiate athletics, where such waivers do not result in any saved or displaced money that can be used for athletic programs for members of the underrepresented gender class.

(3) Before June 30, 1995, no individual waiver program under this section may be reduced by more than twice the percentage reduction required in operating fee foregone revenue from tuition waivers in the biennial state appropriations act)).

NEW SECTION. Sec. 15. A new section is added to chapter 28B.15 RCW to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, The Evergreen State College, and the community colleges may waive all or a portion of tuition and fees for any student except on the basis of participation in intercollegiate athletics: PROVIDED, That the total revenue waived by each institution shall not exceed one percent of an amount determined by estimating the total collections from tuition and services and activities fees had no such waivers been made, and deducting the portion of that total amount that is attributable to the difference between resident and nonresident fees.

NEW SECTION. Sec. 16. A new section is added to chapter 28B.15 RCW to read as follows:

Subject to the limitations of RCW 28B.15.910 and to RCW 28B.15.455 and 28B.15.460, the governing boards of the state universities, the regional universities, and The Evergreen State College may waive all or a portion of tuition and services and activities fees for the purpose of achieving or maintaining gender equity in intercollegiate athletic programs. At any institution of higher education that has an underrepresented gender class in intercollegiate athletics, any such waivers shall be awarded:

(1) First, to members of the underrepresented gender class who participate in intercollegiate athletics, where such waivers result in saved or displaced money that can be used for athletic programs for the underrepresented gender class. Such saved or displaced money shall be used for programs for the underrepresented gender class; and

(2) Second, (a) to nonmembers of the underrepresented gender class who participate in intercollegiate athletics, where such waivers result in saved or displaced money that can be used for athletic programs for members of the underrepresented gender class. Such saved or displaced money shall be used for programs for the underrepresented gender class; or (b) to members of the underrepresented gender class who participate in intercollegiate athletics, where such waivers do not result in any saved or displaced money that can be used for athletic programs for members of the underrepresented gender class.

NEW SECTION. Sec. 17. A new section is added to chapter 28B.15 RCW to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, regional universities, and The Evergreen State College may waive all or a portion of tuition fees for full-time resident undergraduate students who have accumulated more than one hundred thirty percent of the minimum number of credit hours required for the students' degree programs, and for full-time resident postbaccalaureate students who are not enrolled in graduate or law programs or in programs leading to a degree in doctor of medicine, doctor of dental surgery, or doctor of veterinary medicine.

Sec. 18. RCW 28B.15.820 and 1985 c 390 s 35 are each amended to read as follows:

(1) Each ((~~institution of higher education~~)) state university, regional university, The Evergreen State College, and community and technical college shall deposit two and one-half percent of revenues collected from tuition and services and activities fees in an institutional long-term loan fund which is hereby created and which shall be held locally. Moneys in such fund shall be used to make guaranteed loans to eligible students except as provided for in subsection (10) of this section.

(2) An "eligible student" for the purposes of this section is a student who is registered for at least six credit hours or the equivalent, except at technical colleges; who is eligible for resident tuition and fee rates as defined in RCW 28B.15.012 ((~~through 28B.15.015,~~)) and 28B.15.013; and who is a "needy student" as defined in RCW 28B.10.802.

(3) The amount of the loans made under subsection (1) of this section shall not exceed the demonstrated financial need of the student. Each institution shall establish loan terms and conditions which shall be consistent with the terms of the guaranteed loan program established by 20 U.S. Code Section 1071 et seq., as now or hereafter amended. All loans made shall be guaranteed by the Washington student loan guaranty association or its successor agency. Institutions are hereby granted full authority to operate as an eligible lender under the guaranteed loan program.

(4) Before approving a guaranteed loan, each institution shall analyze the ability of the student to repay the loan based on factors which include, but are not limited to, the student's accumulated total education loan burdens and the employment opportunities and average starting salary characteristics of the student's chosen fields of study. The institution shall counsel the student on the advisability of acquiring additional debt, and on the availability of other forms of financial aid.

(5) Each institution is responsible for collection of loans made under subsection (1) of this section and shall exercise due diligence in such collection, maintaining all necessary records to insure that maximum repayments are made. Institutions shall cooperate with other lenders and the Washington student loan guaranty association, or its successor agency, in the coordinated collection of guaranteed loans, and shall assure that the guarantability of the loans is not violated. Collection and servicing of loans under subsection (1) of this section shall be performed by entities approved for such servicing by the Washington student loan guaranty association or its successor agency: PROVIDED, That institutions be permitted to perform such servicing if specifically recognized to do so by the Washington student loan guaranty association or its successor agency. Collection and servicing of loans made by community colleges under subsection (1) of this section shall be coordinated by the state board for community and technical colleges ((~~education~~)) and shall be conducted under procedures adopted by such state board.

(6) Receipts from payment of interest or principal or any other subsidies to which institutions as lenders are entitled, which are paid by or on behalf of borrowers of funds under subsection (1) of this section, shall be deposited in each institution's general local fund and shall be used to cover the costs of making the loans under subsection (1) of this section and maintaining necessary records and making collections under subsection (5) of this section: PROVIDED, That such costs shall not exceed five percent of aggregate outstanding loan principle. Institutions shall maintain accurate records of such costs, and all receipts beyond those necessary to pay such costs, shall be used for the support of the institution's operating budget.

(7) The boards of regents of the state universities, the boards of trustees of the regional universities and The Evergreen State College, and the state board for community and technical colleges ((~~education~~)), on behalf of the community colleges, shall each adopt necessary rules and regulations to implement this section.

(8) Lending activities under this section shall be directed toward students who would not normally have access to educational loans from private financial institutions in Washington state, and maximum use shall be made of secondary markets in the support of loan consolidation.

(9) Short-term interim loans, not to exceed one hundred twenty days, may be made from the institutional long-term loan fund to students eligible for guaranteed student loans and whose receipt of such loans is pending. Such short-term loans shall not be subject to the guarantee restrictions or the constraints of federal law imposed by subsection (3) of this section. No such loan shall be made to any student who is known by the institution to be in default or delinquent in the payment of any outstanding student loan.

(10) Any moneys deposited in the institutional long-term loan fund ((~~which~~)) that are not used in making long or short term loans ((~~or transferred to institutional operating budgets~~)) may be used by the institution for locally-administered financial aid programs for needy students, such as need-based institutional employment programs or need-based tuition and fee waiver programs. These funds shall be used in addition to and not to replace institutional funds which would otherwise support these locally-administered financial aid programs.

(a) Except moneys received from charging operating fees above statutory minimum levels, priority in the use of these funds shall be given to needy students who have accumulated excessive educational loan burdens. An excessive educational loan burden is a burden that will be difficult to repay given employment opportunities and average starting salaries in the student's chosen fields of study.

(b) Except as provided for in (c) of this subsection, any moneys in the fund received from charging operating fees above statutory minimum levels shall be used for needy resident graduate and law students, and resident students enrolled in programs leading to a doctoral degree in medicine, dental surgery, or veterinary medicine.

(c) At Eastern Washington University, any money in the fund received from charging operating fees above statutory minimum levels in undergraduate programs in the allied health sciences shall be used for needy resident undergraduate students enrolled in those programs.

Sec. 19. RCW 28B.15.910 and 1992 c 231 s 33 are each amended to read as follows:

(1) Except for revenue waived under programs listed in subsection (3) of this section, and unless otherwise expressly provided in the omnibus state appropriations act, the total amount of operating fee revenue waived, exempted, or reduced by a state university, a regional university, The Evergreen State College, or the community colleges as a whole, shall not exceed the percentage of total net authorized operating fees revenue set forth below. As used in this section, "net authorized operating fees revenue" means the estimated gross operating fees revenue as estimated under RCW 82.33.020, before granting any waivers, minus obligations under RCW 28B.15.820. This limitation applies to all tuition waiver programs established before or after July 1, 1992.

(a) University of Washington 21 percent

(b) Washington State University 20 percent

(d) Central Washington University 8 percent

(e) Western Washington University 10 percent

(f) The Evergreen State College 6 percent

(g) Community colleges as a whole 35 percent

(2) The limitations in subsection (1) of this section apply to waivers, exemptions, or reductions in operating fees contained in the following:

(a) RCW 28B.10.265;

(b) RCW 28B.15.014;

(d) RCW 28B.15.225;

(e) RCW 28B.15.380;

(f) Ungraded courses under RCW 28B.15.502(4);

(g) RCW 28B.15.520;

(h) RCW 28B.15.526;

(i) RCW 28B.15.527;

(j) RCW 28B.15.543;

(k) RCW 28B.15.545;

(l) RCW 28B.15.555;

(m) RCW 28B.15.556;

(n) RCW 28B.15.615;

(o) RCW 28B.15.620;

(p) RCW 28B.15.628;

(q) RCW 28B.15.725;

(r) RCW 28B.15.730;

(s) RCW 28B.15.740;

(t) RCW 28B.15.750;

(u) RCW 28B.15.756;

(v) RCW 28B.50.259;

(w) RCW 28B.70.050; ((~~and~~))

(x) RCW 28B.80.580;

(y) RCW 28B.15.‑-- (section 15 of this act);

(z) RCW 28B.15.‑-- (section 16 of this act); and

(aa) RCW 28B.15.‑-- (section 17 of this act).

(3) The limitations in subsection (1) of this section do not apply to waivers, exemptions, or reductions in services and activities fees contained in the following:

(a) RCW 28B.15.522;

(b) RCW 28B.15.535;

(d) RCW 28B.15.558.

Sec. 20. RCW 43.88.140 and 1981 c 270 s 9 are each amended to read as follows:

(1) All appropriations shall lapse at the end of the fiscal period for which the appropriations are made to the extent that they have not been expended or lawfully obligated.

(2) Appropriations made to any institution of higher education that meet the requirements of section 22 of this act are exempt from subsection (1) of this section.

NEW SECTION. Sec. 21. The higher education efficiency account for [institution's name] is created in the custody of the state treasurer. The account may receive moneys through gifts, grants, or donations to the state for the purposes of the account. Any state general fund appropriations made to an institution's higher education efficiency account that are unexpended or unencumbered on the last day of any biennium shall be deposited in the account. Expenditures from the account shall be used only in accordance with the plan adopted by the institution's governing board. Only the governing board or its designee may authorize expenditures from the account. Moneys in the account shall not be expended for promotions, the correction of salary inequities or market disparities, or for salary or enrollment increases above the level set in the biennial appropriations acts.

No appropriation is required for an expenditure from the account. The account is not subject to the allotment procedures under chapter 43.88 RCW. Unexpended and unencumbered moneys that remain in the account at the end of the biennium do not revert to the state general fund, but remain in the account. However, if by the beginning of the next calendar year, the institution's governing board has not approved the institution's expenditure plan, moneys in the account shall revert to the state general fund.

NEW SECTION. Sec. 22. A new section is added to chapter 28B.15 RCW to read as follows:

An institution of higher education that meets the following requirements may retain unexpended state appropriations at the end of a fiscal period.

(1) Before any funds are expended, the institution's governing board shall adopt an expenditure plan for the funds.

(2) The expenditure plan may include, but is not limited to the following types of activities:

(a) Matching private donations to the distinguished professorship, graduate fellowship, and exceptional faculty awards programs;

(b) Recruiting and retaining underrepresented minorities and students with disabilities;

(d) Enhancing instructional quality; and

(e) Participating in collaborative efforts with other educational sectors.

NEW SECTION. Sec. 23. It is the intent of the legislature to restructure and fully fund the state's system of financial aid. The restructured financial aid system shall be known as college promise.

NEW SECTION. Sec. 24. (1) The higher education coordinating board shall restructure the state's financial aid programs into a comprehensive and coordinated system of assistance known as college promise. College promise shall expand and modify three existing programs for needy students: The state need grant program under RCW 28B.10.790 through 28B.10.824; the state work study program under chapter 28B.12 RCW; and the educational opportunity grant program under chapter 28B.101 RCW. In addition, college promise may include a demonstration project to assist needy students whose parents did not complete a degree or certificate from an institution of higher education. College promise shall be implemented beginning in the 1995-96 academic year.

(2) By January 1, 1994, the higher education coordinating board, in consultation with the house of representatives and senate higher education and fiscal committees, and the institutions of higher education, shall develop a detailed implementation plan for college promise. In preparing the plan, the board shall follow the goals and priorities set forth in sections 25 and 26 of this act. The plan shall include, but not be limited to:

(a) Specific program eligibility measures and application procedures for the new populations of state financial aid recipients identified in section 26 of this act;

(b) Specific need analysis criteria and asset protection allowances;

(c) Estimates of how many state residents, both those who are currently enrolled in a college or university, and those not currently enrolled, would be eligible and would apply for aid under the expanded eligibility criteria identified in section 26 of this act. The estimates, developed in consultation with the office of financial management, the office of the superintendent of public instruction, and other agencies as appropriate, shall take into account state economic and demographic factors and other appropriate information;

(d) Estimates of where the new aid applicants identified under (c) of this subsection would choose to enroll by type of institution and level of program; and

(e) Estimates of the costs for each state financial aid program, including the state need grant program under RCW 28B.10.790 through 28B.10.824; the state work study program under chapter 28B.12 RCW; and the educational opportunity grant program under chapter 28B.101 RCW to accommodate any new aid applicants estimated under (c) of this subsection, as offset by nonstate sources of aid. Separate cost estimates shall be made for each of the new aid populations identified under section 26 of this act.

(3) It is the intent of the legislature that the cost estimates completed under subsection (2) of this section shall be the basis for determining funding levels for state financial aid programs for each year of the 1995-97 biennium.

(4) The methodologies used to estimate costs under subsection (2) of this section shall be used for the annual cost estimates required under section 27 of this act.

(5) The plan completed under subsection (2) of this section shall be deemed approved on June 30, 1994, unless legislation is enacted to alter the policies set forth in the plan. The board shall also propose to the legislature any changes to the laws governing state financial aid programs that it deems necessary to accomplish the purposes of college promise.

NEW SECTION. Sec. 25. In restructuring the state's financial aid programs, the higher education coordinating board shall follow these goals:

(1) For all need-based financial aid programs under RCW 28B.10.790 through 28B.10.824 and chapters 28B.12 and 28B.101 RCW:

(a) Through a mix of federal, state, and other resources:

(i) Limit the debt of an undergraduate student to no more than one-half of a student's cost of attendance; and

(ii) Provide more self-help opportunities than grant aid to middle-income students, and approximately equal amounts of self-help opportunities and grant aid to low-income and lower middle-income students. Self-help opportunities include work study and loans;

(b) In determining eligibility for state financial aid programs, shelter home equity on a family's principal place of residence, and shelter a reasonable portion of savings and farm or business net worth, each insofar as is permissible under state and federal law;

(d) Strive to preserve a range of educational options for needy students, including choice of institutions and programs;

(e) Recognize otherwise unfunded equipment and assistance needed to accommodate students with disabilities reasonably; and

(f) Deliver clear and timely information to current and future postsecondary students about the costs of attending college and available financial aid.

(2) For the state need grant program under RCW 28B.10.790 through 28B.10.824: As funds are available, expand the program to include new populations of resident students in the following priority order, ensuring that undergraduate students with the most demonstrated financial need receive full grants before less needy students receive any grant:

(a) Low-income undergraduates;

(b) Lower middle-income undergraduates;

(d) Resident graduate and professional students, following the income priorities established for undergraduate students.

(3) For the state work study program under chapter 28B.12 RCW: Increase employment opportunities including off-campus job opportunities with off-campus community service employers.

(4) For students whose parents did not complete a higher education degree or certificate: Determine the feasibility of providing grants to needy first generation scholars.

NEW SECTION. Sec. 26. In implementing the goals for expanding financial aid to needy undergraduate students, the board shall be guided by the following matrix. The matrix defines income levels, and for each level, the funding priority, and the assistance mix goal. Income levels shall be adjusted annually for family size and changes in the state's median income. It is the intent of the legislature these goals not impair the ability of financial aid officers to adjust aid packages to meet the needs of students. However, it is the further intent of the legislature that financial aid officers, insofar as possible attempt to implement these goals.

Goals for Funding Needy Undergraduate Students

Classification: Low-income Lower middle-income Middle-income

Family

Income: 0-$20,864 $20,865-$31,296 $31,297-$52,160

(1991 dollars,

family of four)

Percentage Fifty percent Fifty-one to Seventy-six

of State seventy-five to one hundred

Median percent twenty-five

Income: percent

Priority for

Receiving

Grants: First Second Third

Assistance One-half One-half Up to one-third

Mix goal: grants grants grants

One-half One-half Two-thirds

work study work study work study

and loans and loans and loans

NEW SECTION. Sec. 27. By September 1st of each even-numbered year, the higher education coordinating board shall adopt an estimate of the amount of funding, annualized for each fiscal year, that will be needed during the ensuing biennium to fully fund each of the state's student financial aid programs including but not limited to: RCW 28B.10.210 through 28B.10.220, 28B.10.790 through 28B.10.824, chapters 28B.12, 28B.101, and 28B.102 RCW, and, if funded, the first generation scholars demonstration project. The board shall report its findings to the governor, and the house of representatives and senate fiscal and higher education committees.

NEW SECTION. Sec. 28. In administering the state student financial aid program, also known as the state need grant program, under RCW 28B.10.790 through 28B.10.824, the higher education coordinating board shall proceed substantially as follows unless it determines that a modification is required in order to conform with federal law or to improve the administration of the program, consistent with the purposes of this chapter.

(1) Define and assist additional populations of needy students as funding becomes available, in the priorities described in section 25 of this act, and using income level classification definitions as described in section 26 of this act.

(2) In calculating eligibility for aid, where not otherwise inconsistent with federal or state law, shelter home equity on a family's principal place of residence and shelter a reasonable amount of savings and a reasonable portion of farm or business net worth, in order to equitably evaluate family ability to pay.

(3) To the extent feasible, adjust the student budget of a needy student with disabilities to reflect otherwise unfunded equipment or assistance needed to reasonably accommodate the student in a postsecondary education or training program.

Sec. 29. RCW 28B.101.040 and 1990 c 288 s 6 are each amended to read as follows:

Grants may be used by eligible participants to attend any public or private college or university in the state of Washington that is accredited by an accrediting association recognized by rule of the higher education coordinating board and that has an existing unused capacity. Grants shall not be used to attend any branch campus or educational program established under chapter 28B.45 RCW. The participant shall not be eligible for a grant if it will be used for any programs that include religious worship, exercise, or instruction or to pursue a degree in theology. Each participating student may receive up to two thousand five hundred dollars per academic year, not to exceed the student's demonstrated financial need for the course of study.

NEW SECTION. Sec. 30. A new section is added to chapter 28B.80 RCW to read as follows:

With the exception of institutions of higher education as defined in RCW 28B.10.016, any institution of postsecondary education that enrolls students receiving state-funded financial aid shall: (1) For Washington residents, match the total amount of the state financial aid grant funds received by all enrolled students at that institution from the state need grant and equal opportunity grant programs, with an equal amount of institutionally raised grant funds from nongovernmental sources, and (2) enter into new or honor existing transfer agreements with institutions of higher education as defined in RCW 28B.10.016. The higher education coordinating board shall adopt rules to implement these requirements. The rules shall ensure that all institutional matching grant funds go to students who are needy as defined in RCW 28B.10.802(3) and who are residents of the state of Washington. "Residents of the state of Washington" means that the students would be eligible to pay resident tuition rates under RCW 28B.15.011 through 28B.15.013 if they were enrolled at a state institution of higher education as defined in RCW 28B.10.016.

Sec. 31. RCW 28B.12.040 and 1985 c 370 s 58 are each amended to read as follows:

The higher education coordinating board shall develop and administer the college work-study program and shall be authorized to enter into agreements with employers and eligible institutions for the operation of the program. These agreements shall include such provisions as the higher education coordinating board may deem necessary or appropriate to carry out the purposes of this chapter.

With the exception of off-campus community service placements, the share from ((~~funds~~)) moneys disbursed under the college work-study program of the compensation of students employed under such program in accordance with such agreements shall not exceed eighty percent of the total such compensation paid such students.

By rule, the board shall define community service placements and may determine any salary matching requirements for any community service employers.

NEW SECTION. Sec. 32. A new section is added to chapter 28B.80 RCW to read as follows:

The higher education coordinating board may design a demonstration project to assist needy first generation college students to obtain either a community or technical college degree or certificate, or a baccalaureate degree. Through the project, a needy student, as defined in RCW 28B.10.802(3), who attends a Washington institution of higher education that is accredited by an accrediting association recognized by the board by rule, and whose parents did not complete a degree or certificate from an institution of higher education, may receive a grant of up to fifteen hundred dollars per year, not to exceed the student's documented need. The grant may be renewable each year, if the student makes satisfactory academic progress. Grants awarded to any one student shall not exceed a cumulative total of nine thousand dollars for an individual pursuing a baccalaureate degree or five thousand dollars for a student pursuing a community or technical college degree or certificate. Before seeking funding for the program, the board shall submit to the governor and the legislature a plan for implementing the project. The plan shall include a provision for verification of student eligibility to participate in the demonstration project.

NEW SECTION. Sec. 33. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 34. Sections 23 through 28 of this act are each added to chapter 28B.10 RCW.