Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Higher Education Committee

HB 2377

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Eliminating certain postsecondary institutions' eligibility for state financial aid programs.

Sponsors: Representatives Hansen, Macri and Ormsby.

Brief Summary of Bill

  • Excludes from the state's student financial aid programs, post secondary institutions owned or operated by for profit corporations or institutions acquired by a nonprofit corporation if the institution previously operated in the state under the ownership of a for profit corporation.

Hearing Date: 1/10/18

Staff: Trudes Tango (786-7384).

Background:

The Washington Student Achievement Council (WSAC) is responsible for administering most of the state's student financial aid programs. The State Need Grant (SNG) is the largest of the state's aid programs and provides a need-based grant award for income-eligible students to attend a post secondary institution. It is estimated that for 2017-18, there will be approximately 69,000 SNG recipients.

Institutions seeking to participate in the state financial aid programs must apply each year and meet minimum eligibility standards. As part of the application process, the institution must provide all requested information, such as:

The institutions must also submit to the WSAC each year for approval information such as a copy of its refund or repayment policy, student budgets, gift equity packaging policy and other information as required to assure proper administration of the program and financial stability.

Currently, there are eight private for-profit post secondary institutions participating in the state's financial aid programs:

Summary of Bill:

The definition of "institution," for the purposes of participating in the state's student financial aid programs, is amended to exclude any university, college, school, or institute owned or operated by a corporation for profit, or any university, college, school, or institute owned, operated, purchased, or acquired by a not-for-profit corporation if it previously operated in the state under the ownership of a for profit corporation. Therefore, the statutes governing the state's student financial aid programs do not apply to those institutions.

Appropriation: None.

Fiscal Note: Requested on January 5, 2018.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.