AN ACT Relating to higher education tuition and financial aid; amending RCW 28B.102.020, 28B.102.050, 28B.101.040, 28B.12.040, 28B.15.202, 28B.15.502, and 28B.15.402; adding a new section to chapter 28B.10 RCW; adding a new chapter to Title 28B RCW; repealing RCW 28B.15.065; making an appropriation; and providing effective dates.

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

NEW SECTION. Sec. 1. It is the intent of the legislature to restructure and fully fund the state's system of financial aid. The restructured financial aid system shall be known as college promise.

NEW SECTION. Sec. 2. (1) The higher education coordinating board shall restructure the state's financial aid programs into a comprehensive and coordinated system of assistance known as college promise. College promise shall expand and modify three existing programs for needy students: The state need grant program under RCW 28B.10.790 through 28B.10.824; the state work study program under chapter 28B.12 RCW; and the educational opportunity grant program under chapter 28B.101 RCW. In addition, college promise shall include the revised future teachers conditional scholarship program under chapter 28B.102 RCW, and may include a demonstration project to assist needy students whose parents did not attend an institution of higher education. College promise shall be implemented beginning in the 1993-94 academic year.

(2) By December 1, 1992, the higher education coordinating board, in consultation with the house of representatives and senate higher education and fiscal committees, and the institutions of higher education, shall develop a detailed implementation plan for college promise. In preparing the plan, the board shall follow the goals and priorities set forth in sections 3 and 4 of this act. The plan shall include, but not be limited to:

(a) Specific program eligibility measures and application procedures for the new populations of state financial aid recipients identified in section 3 of this act;

(b) Specific need analysis criteria and asset protection allowances;

(c) Estimates of how many state residents, both those who are currently enrolled in a college or university, and those not currently enrolled, would be eligible and would apply for aid under the expanded eligibility criteria identified in section 3 of this act. The estimates shall take into account state economic and demographic factors and information obtained through a survey of potential new aid applicants;

(d) Estimates of where the new aid applicants identified under (c) of this subsection would choose to enroll by type of institution and level of program;

(e) Estimates of the costs for each state financial aid program, including the state need grant program under RCW 28B.10.790 through 28B.10.824; the state work study program under chapter 28B.12 RCW; the educational opportunity grant program under chapter 28B.101 RCW; and the future teachers conditional scholarship program under chapter 28B.102 RCW, to accommodate any new aid applicants estimated under (c) of this subsection, as offset by nonstate sources of aid. Separate cost estimates shall be made for each of the new aid populations identified under section 3 of this act;

(f) Estimates of the cost to increase budgeted levels of enrollment at public college and universities to accommodate the new aid applicants estimated under (d) of this subsection.

(3) The cost estimates completed under subsection (2) of this section shall be the basis for determining funding levels for state financial aid programs for each year of the 1993-95 biennium.

(4) The methodologies used to estimate costs under subsection (2) of this section shall be used for the annual cost estimates required under section 5 of this act.

(5) The plan completed under subsection (2) of this section shall be deemed approved on June 30, 1993, unless legislation is enacted to alter the policies set forth in the plan. The board shall also propose to the legislature any changes to the laws governing state financial aid programs that it deems necessary to accomplish the purposes of college promise.

NEW SECTION. Sec. 3. In restructuring the state's financial aid programs, the higher education coordinating board shall follow these goals:

(1) For all need-based financial aid programs under RCW 28B.10.790 through 28B.10.824, chapter 28B.12 RCW, and chapter 28B.101 RCW:

(a) Through a mix of federal, state, and other resources:

(i) Limit student debt to no more than one-half of a student's cost of attendance; and

(ii) Provide more self-help opportunities than grant aid to middle-income students, and approximately equal amounts of self-help opportunities and grant aid to low-income and lower middle-income students. Self-help opportunities include work study and loans;

(b) In determining eligibility for state financial aid programs, shelter home equity on a family's principal place of residence, and shelter a reasonable portion of savings and farm or business net worth, each insofar as is permissible under state and federal law;

(d) Strive to preserve a range of educational options for needy students, including choice of institutions and programs;

(e) Recognize otherwise unfunded equipment and assistance needed to reasonably accommodate students with disabilities; and

(f) Deliver clear and timely information to current and future postsecondary students about the costs of attending college and available financial aid.

(2) For the state need grant program under RCW 28B.10 790 through 28B.10.824: As funds are available, expand the program to include new populations of resident students in the following priority order:

(a) Low-income undergraduates;

(b) Lower middle-income undergraduates;

(d) Resident graduate and professional students, following the income priorities established for undergraduate students.

(3) For the state work study program under chapter 28B.12 RCW: Increase employment opportunities including off-campus job opportunities with community service employers.

(4) For the future teachers' conditional scholarship program under chapter 28B.102 RCW: Expand program eligibility to include teachers pursuing a master's degree for continuing certification.

(5) For students whose parents did not attend college: Determine the feasibility of providing grants to needy first generation scholars.

NEW SECTION. Sec. 4. In implementing the goals for expanding financial aid to needy undergraduate students, the board shall be guided by the following matrix. The matrix defines income levels, and for each level, specifies the application requirement, the funding priority, and the assistance mix goal. Income levels shall be adjusted annually for family size and changes in the state's median income.

Implementation Matrix for Assistance to

Needy Undergraduate Students

Classification: Low-income Lower middle-income Middle-income

Family

Income: 0-$19,599 $19,600-$29,499 $29,500-$49,200

(1990 Dollars)

Percentage Fifty percent Fifty-one to Seventy-six

of State seventy-five to one hundred

Median percent twenty-five

Income: percent

Aid May qualify Full need Full need

Application: for simplified analysis analysis

form required required

Priority First Second Third

for

Receiving

Grants:

Assistance One-half One-half One-third

Mix grants grants grants

Goal:

One-half One-half Two-thirds

work study work study work study

and loans and loans and loans

NEW SECTION. Sec. 5. By September 1st of each even-numbered year, the higher education coordinating board shall adopt an estimate of the amount of funding, annualized for each fiscal year, that will be needed during the ensuing biennium to fully fund each of the state's student financial aid programs under RCW 28B.10.210 through 28B.10.220, 28B.10.790 through 28B.10.824, chapter 28B.12 RCW, chapter 28B.101 RCW, chapter 28B.102 RCW, and, if funded, the first generation scholars demonstration project. The board shall report its findings to the governor, and the house of representatives and senate fiscal and higher education committees.

NEW SECTION. Sec. 6. A new section is added to chapter 28B.10 RCW to read as follows:

In administering the state student financial aid program, also known as the state need grant program, under RCW 28B.10.790 through 28B.10.824, the higher education coordinating board shall proceed substantially as follows unless it determines that a modification is required in order to conform with federal law or to improve the administration of the program, consistent with the purposes of this chapter.

(1) Define and assist additional populations of needy students as funding becomes available, in the priority order specified in section 3(2) of this act, and using income level classification definitions as described in section 4 of this act.

(2) In calculating eligibility for aid, where not otherwise inconsistent with federal or state law, shelter home equity on a family's principal place of residence and shelter a reasonable amount of savings and a reasonable portion of farm or business net worth, in order to equitably evaluate family ability to pay.

(3) To the extent feasible, adjust the student budget of a needy student with disabilities to reflect otherwise unfunded equipment or assistance needed to reasonably accommodate the student in a postsecondary education or training program.

Sec. 7. RCW 28B.102.020 and 1987 c 437 s 2 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Conditional scholarship" means a loan that is forgiven in whole or in part if the recipient renders service as a teacher in the public schools of this state.

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

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

(4) "Eligible student" means a student who is registered for at least ten credit hours or the equivalent, demonstrates achievement of at least a 3.30 grade point average for students entering an institution of higher education directly from high school or maintains at least a 3.00 grade point average or the equivalent for each academic year in an institution of higher education, is a resident student as defined by RCW 28B.15.012 through 28B.15.015, and has a declared intention to complete an approved preparation program leading to initial teacher certification or required for earning an additional endorsement, or a college or university graduate who meets the same credit hour requirements and is seeking an additional teaching endorsement or initial teacher certification. "Eligible student" also means a teacher seeking a master's degree if the degree is required for continuing certification.

(5) "Public school" means an elementary school, a middle school, junior high school, or high school within the public school system referred to in Article IX of the state Constitution.

(6) "Forgiven" or "to forgive" or "forgiveness" means to render service as a teacher at a public school in the state of Washington in lieu of monetary repayment.

(7) "Satisfied" means paid-in-full.

(8) "Participant" means an eligible student who has received a conditional scholarship under this chapter.

(9) "Targeted ethnic minority" means a group of Americans with a common ethnic or racial heritage selected by the board for program consideration due to societal concerns such as high dropout rates or low rates of college participation by members of the group.

Sec. 8. RCW 28B.102.050 and 1987 c 437 s 5 are each amended to read as follows:

The board may award conditional scholarships to eligible students from ((~~the funds~~)) moneys appropriated to the board for this purpose, or from any private donations, or any other ((~~funds~~)) moneys given to the board for this program. The amount of the conditional scholarship awarded an individual shall not exceed three thousand dollars per academic year. Students are eligible to receive conditional scholarships for a maximum of five years. The amount of the conditional scholarship awarded to any eligible student pursuing a master's degree for continuing certification shall not exceed the lesser of the student's cost of tuition or twenty-five hundred dollars per year. Grants awarded to any one student pursuing a master's degree for continuing certification shall not exceed a total of five thousand dollars.

Sec. 9. RCW 28B.101.040 and 1990 c 288 s 6 are each amended to read as follows:

Grants may be used by eligible participants to attend any public or private college or university in the state of Washington that is accredited by an accrediting association recognized by rule of the higher education coordinating board and that has an existing unused capacity. Grants shall not be used to attend any branch campus or educational program established under chapter 28B.45 RCW. The participant shall not be eligible for a grant if it will be used for any programs that include religious worship, exercise, or instruction or to pursue a degree in theology. Each participating student may receive up to two thousand five hundred dollars per academic year, not to exceed the student's demonstrated financial need for the course of study.

NEW SECTION. Sec. 10. With the exception of institutions of higher education as defined in RCW 28B.10.016, an institution of postsecondary education that enrolls students receiving state-funded financial aid shall match the total amount of the state financial aid funds received by all enrolled students at that institution with an equal amount of institutionally raised grant funds from private sources. The higher education coordinating board shall adopt rules to implement this requirement. The rules shall ensure that all institutional matching grant funds go to students who are residents of the state as defined in RCW 28B.15.011 through 28B.15.013 and are needy as defined in RCW 28B.10.802(3).

Sec. 11. RCW 28B.12.040 and 1985 c 370 s 58 are each amended to read as follows:

The higher education coordinating board shall develop and administer the college work-study program and shall be authorized to enter into agreements with employers and eligible institutions for the operation of the program. These agreements shall include such provisions as the higher education coordinating board may deem necessary or appropriate to carry out the purposes of this chapter.

With the exception of off-campus community service placements, the share from ((~~funds~~)) moneys disbursed under the college work-study program of the compensation of students employed under such program in accordance with such agreements shall not exceed eighty percent of the total such compensation paid such students.

By rule, the board shall define community service placements and may determine any salary matching requirements for any community service employers.

Sec. 12. RCW 28B.15.202 and 1985 c 390 s 19 are each amended to read as follows:

Tuition fees and services and activities fees at the University of Washington and at Washington State University for other than summer quarters or semesters shall be as follows:

(1) For full time resident undergraduate students and all other full time resident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, the total tuition fees shall be one‑third of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~one hundred and twenty dollars~~)) six percent of total tuition fees.

(2) For full time resident graduate students not enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, the total tuition fees shall be twenty‑three percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~one hundred and twenty dollars~~)) four percent of total tuition fees.

(3) For full time resident students enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, the total tuition fees shall be one hundred sixty‑seven percent of such fees charged in subsection (2) ((~~above~~)) of this section: PROVIDED, That the building fees for each academic year shall be ((~~three hundred and forty‑two dollars~~)) six percent of total tuition fees.

(4) For full time nonresident undergraduate students and such other full time nonresident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, or doctor of veterinary medicine, the total tuition fees shall be one hundred percent of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~three hundred and fifty‑four dollars~~)) six percent of total tuition fees.

(5) For full time nonresident graduate students not enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, the total tuition fees shall be ((~~four thousand and seventy‑four dollars, and thereafter such fees shall be~~)) sixty percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~three hundred and fifty‑four dollars~~)) four percent of total tuition fees.

(6) For full time nonresident students enrolled in programs leading to the degree((s)) of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, the total tuition fees shall be one hundred sixty‑seven percent of such fees charged in subsection (5) ((~~above~~)) of this section: PROVIDED, That the building fees for each academic year shall be ((~~five hundred and fifty‑five dollars.~~

~~(7)~~)) four percent of total tuition fees.

(7) The boards of regents of each of the state universities shall charge and collect equally from each of the students registering at the particular institution and included in subsections (1) through (6) hereof a services and activities fee which for each year of the 1981‑83 biennium shall not exceed one hundred and thirty‑eight dollars. In subsequent biennia the board of regents may increase the existing fee, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the percentage increase in tuition fees authorized in subsection (1) ((~~above~~)) of this section: PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

Sec. 13. RCW 28B.15.502 and 1991 c 353 s 2 are each amended to read as follows:

Tuition fees and services and activities fees at each community college other than ((at)) summer quarters shall be as follows:

(1) For full time resident students, the total tuition fees shall be twenty‑three percent of the per student educational costs at the community colleges computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~one hundred and twenty‑seven dollars and fifty cents~~)) fifteen percent of tuition fees.

(2) For full time nonresident students, the total tuition fees shall be one hundred percent of the per student educational costs at the community colleges computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~four hundred and three dollars and fifty cents~~)) eleven percent of tuition fees.

(3) The boards of trustees of each of the state community colleges shall charge and collect equally from each of the students registering at the particular institution and included in subsections (1) and (2) ((~~hereof~~)) of this section a services and activities fee which for each year of the 1981‑83 biennium shall not exceed sixty‑four dollars and fifty cents. In subsequent biennia the board of trustees may increase the existing fee, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the percentage increase in tuition fees authorized in subsection (1) above: PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

(4) Tuition and services and activities fees consistent with the above schedule ((~~will~~)) shall be fixed by the state board for community and technical colleges for summer school students unless the community college charges fees in accordance with RCW 28B.15.515.

The board of trustees shall charge such fees for ungraded courses, noncredit courses, community services courses, and self‑supporting short courses as it, in its discretion, may determine, not inconsistent with the rules and regulations of the state board for community ((~~college education~~)) and technical colleges.

Sec. 14. RCW 28B.15.402 and 1989 c 245 s 1 are each amended to read as follows:

Tuition fees and services and activities fees at the regional universities and The Evergreen State College for other than summer quarters or semesters shall be as follows:

(1) For full time resident undergraduate students and all other full time resident students not in graduate study programs, the total tuition fees shall be one‑fourth of the per student undergraduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~seventy‑six dollars and fifty cents~~)) five percent of total tuition fees.

(2) For full time resident graduate students, the total tuition fees shall be twenty‑three percent of the per student graduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~seventy‑six dollars and fifty cents~~)) three percent of total tuition fees.

(3) For full time nonresident undergraduate students and all other full time nonresident students not in graduate study programs, the total tuition fees shall be one hundred percent of the per student undergraduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~two hundred and ninety‑five dollars and fifty cents~~)) five percent of total tuition fees.

(4) For full time nonresident graduate students, the total of tuition fees shall be seventy‑five percent of the per student graduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be ((~~two hundred and ninety‑five dollars and fifty cents~~)) four percent of total tuition fees.

(5) The boards of trustees of each of the regional universities and The Evergreen State College shall charge and collect equally from each of the students registering at the particular institution and included in subsections (1) through (4) ((~~hereof~~)) of this section a services and activities fee which for each year of the 1981‑83 biennium shall not exceed one hundred eighty‑four dollars and fifty cents. In subsequent biennia the board of trustees may increase the existing fee, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the percentage increase in tuition fees authorized in subsection (1) ((~~above~~)) of this section: PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

(6) Notwithstanding the provisions of RCW 28B.15.067, for the 1989‑91 biennium the undergraduate and graduate cost relationship developed by the 1987 cost study for Central Washington University shall be used to establish tuition fees for the regional universities and The Evergreen State College.

NEW SECTION. Sec. 15. Sections 1 through 5 and 10 of this act shall constitute a new chapter in Title 28B RCW.

NEW SECTION. Sec. 16. RCW 28B.15.065 and 1977 ex.s. c 322 s 6 as now existing or hereafter amended are repealed June 30, 1993.

NEW SECTION. Sec. 17. (1) Sections 1 through 3 of this act shall take effect July 1, 1992.

(2) Sections 4 through 11 of this act shall take effect July 1, 1993.

NEW SECTION. Sec. 18. 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. 19. The sum of one hundred thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund to the higher education coordinating board, for the biennium ending June 30, 1993, to complete the plan required under section 2 of this act.