"Sec. 1   RCW 28B.92.080 and 2009 c 238 s 9 are each amended to read as follows:
     Except for opportunity internship graduates whose eligibility is provided under RCW 28B.92.084, for a student to be eligible for a state need grant a student must:
     (1) Be a "needy student" or "disadvantaged student" as determined by the board in accordance with RCW 28B.92.030 (((3))) (5) and (((4))) (2);
     (2) Have been domiciled within the state of Washington for at least one year;
     (3) Be enrolled or accepted for enrollment on at least a half-time basis at an institution of higher education in Washington as defined in RCW 28B.92.030(((1))) (4);
     (4) Until June 30, ((2011)) 2013, to the extent funds are specifically appropriated for this purpose, and subject to any terms and conditions specified in the omnibus appropriations act, be enrolled or accepted for enrollment for at least three quarter credits or the equivalent semester credits at an institution of higher education in Washington as defined in RCW 28B.92.030(((1))) (4); and
     (5) Have complied with all the rules adopted by the board for the administration of this chapter.

NEW SECTION.  Sec. 2   (1) By December 1, 2012, the higher education coordinating board, in collaboration with the state board for community and technical colleges and institutions participating in state need grants, shall report to the governor and the legislature about the academic performance of less than half-time students awarded need grants pursuant to RCW 28B.92.080(4). The report must include data regarding:
     (a) The total number of need grant recipients who enrolled on less than a half-time basis for at least one academic quarter or semester;
     (b) The length of time need grant recipients remained enrolled on less than a half-time basis;
     (c) The total number and proportion of need grant recipients who subsequently enrolled on a full-time basis;
     (d) The total number and proportion of need grant recipients who subsequently received an academic degree or certificate compared to full-time need grant recipients; and
     (e) The total number of full-time and less than half-time need grant recipients who were enrolled at four-year institutions and at a community or technical college.
     (2) The report must include an analysis and recommendations regarding the continuation of the availability of state need grant awards for less than half-time students taking into account the academic achievement of less than half time as compared to less than half-time need grant recipients and the overall limitations on state need grant funding.
     (3) This section expires December 31, 2012."