SENATE BILL REPORT

E2SHB 2624

BYHouse Committee on Appropriations (originally sponsored by Representatives Fraser, Jacobsen, Doty, Belcher, G. Fisher, Brumsickle, Peery, Rasmussen, Haugen, P. King, Moyer, Bowman and Walker)

Regulating exchange student placement agencies.

House Committe on Higher Education

Rereferred House Committee on Appropriations

Senate Committee on Higher Education

Senate Hearing Date(s):February 14, 1990

Senate Staff:Shawn Newman (768-7443)

AS OF FEBRUARY 14, 1990

BACKGROUND:

Currently, exchange student placement agencies are not regulated by a state agency or 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:

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 approved 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 implementation of this act.  The director is also authorized to investigate complaints, and to appoint persons to conduct the investigations.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 8, 1990.

Effective Date:The bill takes effect January 1, 1991