H-1436

AN ACT Relating to educational opportunities for minority criminal justice professionals; adding a new chapter to Title 28B RCW; making appropriations; providing an effective act; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature recognizes the benefit to our state and nation of providing educational and employment opportunities for all racial and ethnic groups. The legislature finds that although racial and ethnic minorities comprise approximately twelve percent of the total state population, their representation in criminal justice professions in the state is only seventy percent of that number, or approximately eight and one-half percent of all persons employed in criminal justice professions in the state.

The legislature finds that this underrepresentation is the result of past discrimination in public employment that is not yet rectified, and that requires a remedy. The legislature also finds that better representation of these minorities will enhance the maintenance of a just system and avoid the appearance of inequity.

The legislature finds that creating an endowed student loan program to help these minorities obtain access to education essential to employment in criminal justice professions and to provide incentives for minority graduates to embark upon criminal justice professions, will improve the quality of the criminal justice system and increase the respect in which the program is held by all citizens. It is therefore the purpose of this chapter to provide substantial loan assistance to minority individuals to insure their access to the educational prerequisites of criminal justice professions.

Another purpose of this chapter is to provide criminal justice agencies with trained minority professionals of the quality and quantity required by public policy. This is done by encouraging loan recipients under this chapter to accept employment in criminal justice professions in exchange for partial loan cancellation.

An additional purpose of this chapter is to encourage service in jurisdictions within the state where minorities are substantially underrepresented in criminal justice professions by granting additional partial cancellation of loans.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Institution of higher education" means a college or university in the state that is accredited by an accrediting association recognized as such by rule of the higher education coordinating board.

(2) "Board" means the higher education coordinating board.

(3) "Committee" means the minority criminal justice education advisory committee appointed by the governor to assist in administration of the program authorized under this chapter.

(4) "Minority" means a member of one of the following racial/ethnic groups: African-American, Asians and Pacific Islanders, Latinos/Hispanics, and Native Americans as further defined by the board.

(5) "Criminal justice profession" means the following employees of the state or its subdivisions primarily involved in enforcement of criminal laws:

(a) Prosecutors;

(b) Public defenders;

(d) Criminal justice administrators; or

(e) Additional employee groups designated by the board as being primarily engaged in enforcement of criminal laws.

NEW SECTION. Sec. 3. (1) The governor shall appoint an advisory committee consisting of an odd number of members, not to exceed eleven. A majority, but not more than sixty percent shall be criminal justice professionals employed by the state and its political subdivisions, in police agencies and corrections facilities, and as prosecuting attorneys and public defenders. The remainder are appointed from groups directly involved in criminal justice, including but not limited to: Educational groups, bar association groups, community groups, and criminal justice groups. Each of the four racial/ethnic groups in section 2 of this act are to be represented on the committee, if possible.

(2) The committee shall:

(a) Recommend to the board criteria for:

(i) Approval of degree programs;

(ii) Screening and selection of loan recipients;

(iii) Determination of appropriate loan amounts;

(iv) Determination of terms and conditions of loans; and

(v) Determination of criminal justice professions and agencies in which employment will result in remission of indebtedness; and

(b) Advise the board on other matters relevant to implementation of the provisions of this chapter.

NEW SECTION. Sec. 4. There is hereby created a minority criminal justice education loan program to be administered by the higher education coordinating board with the assistance of the minority criminal justice education advisory committee. In administering the program the board shall have the power to:

(1) Administer the loan program authorized by this chapter;

(2) Adopt necessary rules and guidelines;

(3) Publicize the program;

(4) Accept and deposit donations into the endowment fund created by section 19 of this act;

(5) Request and accept from the state treasurer moneys earned from the endowment fund created by section 19 of this act; and

(6) Solicit and accept grants and donations from public and private sources for the program.

NEW SECTION. Sec. 5. The total of the loans for an academic year or its equivalent as determined by rule of the board, under this chapter, may not exceed seventy-five percent of the unmet need of a qualified applicant, as defined by rule adopted by the board. The board shall not extend loans to undergraduates for more than five years after admission, or to graduates for more than four years after receipt of a baccalaureate degree.

NEW SECTION. Sec. 6. Subject to the remaining provisions of this chapter, loans to a student are made on the terms and conditions as the board may determine with a view to preventing impairment of the capital of the student loan fund to the maximum extent practicable in light of the objective of enabling the student to complete his or her course of study.

NEW SECTION. Sec. 7. Loans are made only to a student who is:

(1) A minority, as defined in section 2 of this act;

(2) A financially needy student, as defined in RCW 28B.10.802;

(3) A resident student, as defined in RCW 28B.15.012;

(4) Capable in the opinion of the board, of maintaining good standing in a degree program;

(5) Accepted for enrollment as a student in a course of instruction, approved by the board as leading toward a criminal justice profession, in an accredited institution of higher education in the state of Washington, or in the case of a student already attending the institution, is in good standing in the program as an undergraduate, graduate, or professional student; and

(6) Carrying at least one-half the normal full-time academic workload as determined by the institution.

NEW SECTION. Sec. 8. Loans are evidenced by a note or other written agreement that provides for repayment of the principal amount, together with interest. The repayment is in equal installments, or if the borrower requests, in graduated periodic installments determined in accordance with schedules as may be approved by the board. The payments are made quarterly, bimonthly, or monthly at the option of the board, over a period beginning nine months after the date the borrower ceases to carry, at an institution of higher education in the state approved by the board, at least one-half the normal full-time academic workload as determined by the institution in a course of study approved by the board. The payments end ten years and nine months after starting.

NEW SECTION. Sec. 9. Interest shall not accrue on a loan, and installments need not be paid during a period:

(1) That the borrower is carrying, at an institution of higher education, at least one-half the normal full-time academic workload as determined by the institution, in a course approved by the board under this chapter; or

(2) Of three years or less that the borrower is a member of the armed forces of the United States in a pay grade not exceeding E-7.

These periods are not included in determining the ten-year period in which repayment must be completed. The ten-year period may be extended for good cause determined by the board.

The board may provide that installments are not paid during a period or periods, aggregating not in excess of three years, during which the borrower is in less than half-time attendance in an institution of higher education taking courses creditable toward a degree. The board may also provide that the period is not included in determining the ten-year period that the repayment must be completed, but interest shall continue to accrue during the period.

NEW SECTION. Sec. 10. The borrower may at his or her option accelerate repayment of the whole or part of the loan. The board may provide that during the repayment of the loan, payments of principal and interest by the borrower with respect to all outstanding loans made to him or her from loan funds established pursuant to this chapter, are at a rate equal to not less than one hundred dollars per month.

NEW SECTION. Sec. 11. (1) Not more than fifty percent of a loan, including interest, shall be canceled for service as a full-time professional in a criminal justice profession, approved by the board, in the state of Washington. The loan shall be canceled at the rate of ten percent of the total amount of the loan, plus interest for each twelve-month period of consecutive service.

(2) Not more than seventy-five percent of a loan, including interest, shall be canceled for service as a full-time professional in a criminal justice profession, approved by the board, in the state of Washington. The loan shall be canceled at the rate of fifteen percent of the total amount of the loan, plus interest, for each twelve-month period of consecutive service with an agency. The agency shall be one in which the representation of the minority race, in his or her approved criminal justice profession in the agency at the time of his or her employment, is less than fifty percent of the percentage of the borrower's race to the total population in the jurisdiction at the last census.

NEW SECTION. Sec. 12. Loans shall bear interest, on the unpaid balance of the loan, at a rate set by the board consistent with rates charged for other educational programs. In no case shall interest accrue before the date the repayment of the loan is to begin, except if the date that repayment is to begin is suspended under section 9 of this act.

NEW SECTION. Sec. 13. Loans are made without security and without endorsement, except that, if the borrower is a minor either security or endorsement may be required as determined by the board.

NEW SECTION. Sec. 14. The liability to repay a loan is canceled upon the death of the borrower, or if he or she becomes permanently and totally disabled as determined in accordance with rules of the board.

NEW SECTION. Sec. 15. No loan is granted unless the institution of higher education, that the borrower is accepted at or enrolled in, has agreed to give notice to the board whenever the borrower fails to:

(1) Maintain satisfactory standing;

(2) Carry at least one-half of the normal full-time academic load as determined by the institution; or

(3) Be enrolled in the course of study approved by the board.

NEW SECTION. Sec. 16. A loan for one year is made in installments as determined by the board, and upon notice to the board that the recipient does not meet the criteria established in section 15 of this act, all further installments shall be withheld.

NEW SECTION. Sec. 17. (1) Notes shall provide that the board may elect to accelerate all amounts due under the note for default in payment of two or more installments or for breach of another agreement contained within the note. Acceleration may occur if the amounts due have not been paid, nor the default cured within a period set by the board consistent with other loan programs. The borrower shall be sent notice in writing, mailed to his or her last known address, by both regular mail and certified mail return receipt requested, listing the actions required to cure the default, the consequence of failure to cure within the time required, and that if not cured as provided, the board may assign its rights under the note or may bring action upon the note. If action is brought the holder is entitled to reasonable attorney's fees and costs incurred in collection of the obligation.

(2) Pursuant to rules adopted by the board, the board may assess a charge, with respect to a loan from the loan fund established by this chapter for:

(a) Failure of the borrower to pay all or a part of an installment when it is due;

(b) Failure to file timely and satisfactory evidence of entitlement to deferment benefits under section 9 of this act or cancellation benefits under section 11 of this act.

(3) The board may elect to add the amount of a charge to the principal amount of the loan the first day after the day the installment or evidence was due, or to make the amount of the charge payable to the board not later than the due date of the next installment.

NEW SECTION. Sec. 18. (1) The board is responsible for the collection of loans made under this chapter and shall exercise due diligence in the collection, maintaining all records necessary to insure maximum repayment is made. Collection and servicing of loans made under this chapter are pursued to the full extent of the law, including wage garnishment if necessary, and are performed by entities approved for servicing by the Washington student loan guarantee association or its successor agency. The board is responsible for canceling all or parts of loans under the criteria established by this chapter. The board shall maintain accurate records of the costs of making loans under this chapter, of maintaining necessary records, and of making collections, and shall maintain all necessary records of partial or complete loan cancellation.

(2) Receipts from payment of principal and interest or other amounts that the board is entitled, that are paid by or on behalf of borrowers under this chapter, are deposited with the treasurer into the endowment fund created by sections 19 and 20 of this act.

NEW SECTION. Sec. 19. The minority criminal justice education endowment fund is established. Moneys received from the higher education board, private donations, and funds received from another source are deposited into the endowment fund. All moneys deposited in the endowment fund are invested by the state treasurer. Notwithstanding RCW 43.84.090, all earnings from investments of balances of the endowment fund are credited to the endowment fund. At the request of the higher education coordinating board, the treasurer shall release earnings from the endowment fund to the board for loans pursuant to the program. No appropriation is required for expenditures from the endowment fund. The principal of the endowment fund shall not be invaded. The earnings of the fund are to be used solely for loans authorized under this chapter.

NEW SECTION. Sec. 20. (1) The sum of two million dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the higher education coordinating board for the purpose of the minority criminal justice education endowment fund.

(2) The sum of one hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the higher education coordinating board for the purpose of expenditures by the board for loans authorized by this act in the first year following enactment.

(3) The sum of _____________ dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the higher education coordinating board for the purposes of administration expenditures by the board authorized by this act.

NEW SECTION. Sec. 21. No loan shall be made after July 1, 1997, until the program is reviewed by the legislative budget committee and is reenacted by the legislature.

NEW SECTION. Sec. 22. Sections 1 through 19 and 21 of this act shall constitute a new chapter in Title 28B RCW.

NEW SECTION. Sec. 23. 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. 24. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1991.