HOUSE BILL REPORT

SSB 6625

BYSenate Committee on Higher Education (originally sponsored by Senators von Reichbauer, Smitherman and Johnson)

Prohibiting young men from receiving financial aid unless they have registered with selective service.

House Committe on Higher Education

Majority Report:  Do pass as amended.  (8)

      Signed by Representatives Jacobsen, Chair; Spanel, Vice Chair; Basich, Bennett, Fraser, Heavey, Jesernig and Rector.

Minority Report:  Do not pass.  (4)

      Signed by Representatives Van Luven, Ranking Republican Member; Doty, Miller and Wood.

House Staff:Susan Hosch (786-7120)

AS REPORTED BY COMMITTEE ON HIGHER EDUCATION FEBRUARY 22, 1990

BACKGROUND:

The 1989 Legislature approved the Educational Opportunity Grant Demonstration Project as part of the branch campus legislation.  Five hundred thousand dollars was included in the budget for the project.  Under the legislation, the Higher Education Coordinating Board will give grants of up to $2500 to needy, placebound students living in areas served by the branch campuses.  These students may use the grants to complete their upper-division work at the public or independent institution of their choice.

The Attorney General has indicated that the legislation, as passed, did not contain sufficient information for the board to adopt rules implementing the program.  The board is requesting clarifying language.  The language would permit the board to test the premise that a substantial grant can influence where certain placebound individuals choose to attend school.  If the premise is correct, the board believes that the size of the branch campuses can be smaller.

Currently, exchange student placement agencies are not regulated by a state agency, and are not required to obtain a license before placing foreign students in the state.  Complaints have been made that this lack of licensing and regulation has resulted in misrepresentations by agencies and abuses of foreign students visiting the state.

SUMMARY:

BILL AS AMENDED:

THE EDUCATIONAL OPPORTUNITY GRANT PROGRAM

The Educational Opportunity Grant Program is created.  This demonstration project will serve needy placebound students by helping them obtain a baccalaureate degree.  Students may attend a Washington public or private college or university having the capacity to serve those students within existing educational programs and facilities.

The term "placebound" is defined.  Resident placebound students living in areas of the state served by the branch campuses are eligible to participate in the program, if they are needy, and have completed an associate of arts degree or its equivalent.  Participants may receive up to $2500 to attend a college or university with unused capacity.  Students cannot use the grant to attend a branch campus, or to enroll in any program that includes religious worship, exercise or instruction.  Students also cannot use the grant to obtain a degree in theology.

The program will be administered by the Higher Education Coordinating Board.  The board's program responsibilities are described.  Existing law describing the program is repealed.

LICENSING FOREIGN STUDENT PLACEMENT AGENCIES

A foreign student placement agency must obtain a license from the Department of Licensing before operating in Washington.  The license is to be renewed annually.  Institutions of higher education, postsecondary private institutions, public schools and private schools are exempt from the licensing procedure.  The act will apply only to foreign students who are placed in Washington for an academic quarter or more for postsecondary education or half an academic year for students enrolled in secondary education.

AGENCY APPLICATION

The application shall contain the agency name, address, and phone number.  The licensee must also disclose any financial relationship with other organizations in which agency officers or board members have a financial interest.  The application must list the type of visas used by students and the unified business identifier number of the agency.  The application shall be sworn to before a notary public and disclose whether an officer or holder of a one fifth interest has a felony conviction.  An organization which establishes quality standards in international education and monitors compliance may file an application on behalf of its members.  The director is required to establish a renewal procedure, where the applicant is only required to update information provided in the original license application. The Department of Licensing is required to set fees at a level sufficient to recover administrative costs.

AGENCY RECORDS

The placement agency is required to keep records of services provided to foreign students.  Records must include each student's name and address, as well as copies of the student's visa and other federal documents required for the student to remain in the United States. The name and address of host families must be on file at least seven days prior to the student's arrival.  The agency must also keep records of the fees charged to the student, copies of all agreements with the foreign student, a statement that the agency has determined that the English speaking skills of the student are sufficient to benefit from a public school educational program, and the agency must have records of health and accident insurance for each student.  The agency must keep these records for one year.

The agency must also provide an informational document to the foreign student in English, along with a copy of this chapter. The document shall include an emergency telephone hot-line available 24 hours a day, which is regularly answered by agency staff. In addition to being informed of the amount of the fee, the student must also receive an itemized accounting. The student must receive the name, address and phone number of the carriers providing medical and accident insurance coverage. The informational document must also contain the name and address of an agency representative located nearest to the host family residence.

STUDENT FUNDS TRUST ACCOUNT

A trust account, separate from agency operating accounts, is to be established for all funds to be disbursed to students or host families. The director of the Department of Licensing shall promulgate rules for the administration of the trust account.

LICENSE REVOCATION OR SUSPENSION

The director of the Department of Licensing has the authority to revoke or suspend a license, if an agency is not in compliance with the requirements of this act.  License suspension or revocation can occur for failure to renew a license, a felony conviction, filing of a false application, failure to provide a suitable placement for an exchange student, failure to provide an agreed upon return trip ticket, or failure to make a good faith effort to insure the exchange student's safe and timely departure from the United States.

Operation of an exchange student placement agency without a license will be a gross misdemeanor.  If an agency conducts business without a license, the agency is prohibited from maintaining a civil cause of action in this state based on services provided.

DEPARTMENT OF LICENSING

The director of the Department of Licensing shall have supervisory and investigative authority over foreign student placement agencies. The director may investigate agency individuals responsible for screening and selecting host families.  For purposes of investigating a complaint, the director of the Department of Licensing may examine all books, records, and documents located in Washington.  The director may also refer information regarding violations of the act to the attorney general or prosecuting attorney of the county where a violation occurs.

The director is required to appoint an advisory committee to advise the director in the implementation of these licensing requirements.  The director is also authorized to investigate complaints, and to appoint persons to conduct the investigations.

EFFECTIVE DATE

Licensing requirements for foreign student placement agencies take effect January 1, 1991.

AMENDED BILL COMPARED TO SUBSTITUTE:  Language is removed that requires males born after December 31, 1970 to show proof of selective service registration in order to receive state funded financial aid.  A severability clause is retained.  Language is inserted to clarify and reenact the Educational Opportunity Grant Program. Also inserted are provisions establishing a licensing program for foreign student placement agencies.

Fiscal Note:      Requested February 23, 1990.

Effective Date:Licensing requirements for foreign student placement agencies take effect January 1, 1991.

House Committee ‑ Testified For:    Senator Peter von Reichbauer, sponsor; and Ed Weinbrecht, Selective Service.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    Passage of this legislation will show strong support for the national Selective Service Program. Ninety-six percent of the males required to register have done so.

House Committee - Testimony Against:      None.