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AN ACT Relating to higher education; amending RCW 43.88.150, 43.88.110, 28B.15.013, 28B.15.067, 28B.15.076, 28B.15.556, 28B.15.740, and 28B.80.330; reenacting and amending RCW 28B.15.031, 28B.15.202, 28B.15.402, and 28B.15.820; adding new sections to chapter 28B.10 RCW; adding new sections to chapter 28B.15 RCW; adding a new section to chapter 28B.80 RCW; adding new chapters to Title 28B RCW; and repealing RCW 28B.15.065.

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

NEW SECTION. Sec. 1. A new section is added to chapter 28B.10 RCW to read as follows:

The higher education goals of the state of Washington include the following, and any implementation of these goals is subject to available funds:

(1) By the year 2004, Washington's system of higher education and work force training will be among the five best in the country in providing access and programs of the highest quality to the residents of the state of Washington;

(2) By the year 2004, the level of state general fund appropriations per student attending state universities, regional universities, The Evergreen State College, and the community and technical colleges will equal or exceed the ninetieth percentile of state appropriations for students attending each institution's peers. Any increased funding required to meet the goal may be phased over six years, beginning in the 1997-1999 biennial budget;

(3) Peer institutions for each four-year institution of higher education and the community and technical college system will be determined by the higher education coordinating board, in consultation with the institutions, the office of financial management, and the house of representatives and senate higher education and fiscal committees;

(4) Beginning with the 1997-1999 biennium, the legislature intends, each biennium, to appropriate to each state university, regional university, and The Evergreen State College, the same amount of state general fund dollars appropriated the previous biennium, adjusted for inflation, one-time costs, and other policy initiatives adopted by the legislature. Most new enrollments will be reserved for resident students;

(5) In the biennial budget for four-year institutions of higher education, the legislature will adopt a minimal number of provisos, and will not adopt salary restrictions for employees of state universities, regional universities, or The Evergreen State College;

(6) In selecting institutions of higher education to provide educational programs or services, the higher education coordinating board will consider public and independent institutions that, through a competitive process, commit to providing the most cost-effective, high quality program or service for Washington residents, in addition to other conditions that may be required by the board;

(7) Four-year institutions of higher education will be relieved from laws and rules governing state agencies if those laws inhibit the institutions from operating in the most effective manner, and the institutions meet other accountability measures as adopted by law; and

(8) Washington residents who have prepared themselves for college and who desire postsecondary education and training will not be denied an education due to their financial status.

Sec. 2. RCW 43.88.150 and 1991 c 284 s 3 are each amended to read as follows:

(1) For those agencies that make expenditures from both appropriated and nonappropriated funds for the same purpose, the governor shall direct such agencies to charge their expenditures in such ratio, as between appropriated and nonappropriated funds, as will conserve appropriated funds. This subsection does not apply to institutions of higher education as defined in RCW 28B.10.016.

(2) Unless otherwise provided by law, if state moneys are appropriated for a capital project and matching funds or other contributions are required as a condition of the receipt of the state moneys, the state moneys shall be disbursed in proportion to and only to the extent that the matching funds or other contributions have been received and are available for expenditure.

(3) The office of financial management shall adopt guidelines for the implementation of this section. The guidelines may account for federal matching requirements or other requirements to spend other moneys in a particular manner.

Sec. 3. RCW 43.88.110 and 1994 c 219 s 5 are each amended to read as follows:

This section sets forth the expenditure programs and the allotment and reserve procedures to be followed by the executive branch for public funds.

(1) Allotments of an appropriation for any fiscal period shall conform to the terms, limits, or conditions of the appropriation.

(2) The director of financial management shall provide all agencies with a complete set of operating and capital instructions for preparing a statement of proposed expenditures at least thirty days before the beginning of a fiscal period. The set of instructions need not include specific appropriation amounts for the agency.

(3) Within forty-five days after the beginning of the fiscal period or within forty-five days after the governor signs the omnibus biennial appropriations act, whichever is later, all agencies shall submit to the governor a statement of proposed expenditures at such times and in such form as may be required by the governor.

(4) Except as provided in subsection (11) of this section, the office of financial management shall develop a method for monitoring capital appropriations and expenditures that will capture at least the following elements:

(a) Appropriations made for capital projects including transportation projects;

(b) Estimates of total project costs including past, current, ensuing, and future biennial costs;

(d) Comparisons of estimated construction start and completion dates with actual dates;

(e) Documentation of fund shifts between projects.

This data may be incorporated into the existing accounting system or into a separate project management system, as deemed appropriate by the office of financial management.

(5) The office of financial management, prior to approving allotments for major capital construction projects valued over five million dollars, shall institute procedures for reviewing such projects at the predesign stage that will reduce long-term costs and increase facility efficiency. The procedures shall include, but not be limited to, the following elements:

(a) Evaluation of facility program requirements and consistency with long-range plans;

(b) Utilization of a system of cost, quality, and performance standards to compare major capital construction projects; and

(6) No expenditure may be incurred or obligation entered into for such major capital construction projects including, without exception, land acquisition, site development, predesign, design, construction, and equipment acquisition and installation, until the allotment of the funds to be expended has been approved by the office of financial management. This limitation does not prohibit the continuation of expenditures and obligations into the succeeding biennium for projects for which allotments have been approved in the immediate prior biennium.

(7) If at any time during the fiscal period the governor projects a cash deficit in a particular fund or account as defined by RCW 43.88.050, the governor shall make across-the-board reductions in allotments for that particular fund or account so as to prevent a cash deficit, unless the legislature has directed the liquidation of the cash deficit over one or more fiscal periods. Except for the legislative and judicial branches and other agencies headed by elective officials, the governor shall review the statement of proposed operating expenditures for reasonableness and conformance with legislative intent. Once the governor approves the statements of proposed operating expenditures, further revisions shall be made only at the beginning of the second fiscal year and must be initiated by the governor. However, changes in appropriation level authorized by the legislature, changes required by across-the-board reductions mandated by the governor, changes caused by executive increases to spending authority, and changes caused by executive decreases to spending authority for failure to comply with the provisions of chapter 36.70A RCW may require additional revisions. Revisions shall not be made retroactively. Revisions caused by executive increases to spending authority shall not be made after June 30, 1987. However, the governor may assign to a reserve status any portion of an agency appropriation withheld as part of across-the-board reductions made by the governor and any portion of an agency appropriation conditioned on a contingent event by the appropriations act. The governor may remove these amounts from reserve status if the across-the-board reductions are subsequently modified or if the contingent event occurs. The director of financial management shall enter approved statements of proposed expenditures into the state budgeting, accounting, and reporting system within forty-five days after receipt of the proposed statements from the agencies. If an agency or the director of financial management is unable to meet these requirements, the director of financial management shall provide a timely explanation in writing to the legislative fiscal committees.

(8) Except as provided in subsection (11) of this section, it is expressly provided that all agencies shall be required to maintain accounting records and to report thereon in the manner prescribed in this chapter and under the regulations issued pursuant to this chapter. Within ninety days of the end of the fiscal year, all agencies shall submit to the director of financial management their final adjustments to close their books for the fiscal year. Prior to submitting fiscal data, written or oral, to committees of the legislature, it is the responsibility of the agency submitting the data to reconcile it with the budget and accounting data reported by the agency to the director of financial management.

(9) Except as provided in subsection (11) of this section, the director of financial management shall monitor agency operating expenditures against the approved statement of proposed expenditures and shall provide the legislature with quarterly explanations of major variances.

(10) The director of financial management may exempt certain public funds from the allotment controls established under this chapter if it is not practical or necessary to allot the funds. With the exception of exemptions that may be granted to four-year institutions of higher education, allotment control exemptions expire at the end of the fiscal biennium for which they are granted. The director of financial management shall report any exemptions granted under this subsection to the legislative fiscal committees.

(11) In consultation with four-year institutions of higher education, the higher education coordinating board, and the house of representatives and senate fiscal committees, the director of financial management shall develop and implement a simplified allotment and reporting procedure for the state universities, regional universities, and The Evergreen State College. The procedure may exempt the four-year institutions of higher education from allotment controls required for public funds.

Sec. 4. RCW 28B.15.013 and 1989 c 175 s 79 are each amended to read as follows:

(1) The establishment of a new domicile in the state of Washington by a person formerly domiciled in another state has occurred if such person is physically present in Washington primarily for purposes other than educational and can show satisfactory proof that such person is without a present intention to return to such other state or to acquire a domicile at some other place outside of Washington.

(2) Unless proven to the contrary it shall be presumed that:

(a) The domicile of any person shall be determined according to the individual's situation and circumstances rather than by marital status or sex.

(b) A person does not lose a domicile in the state of Washington by reason of residency in any state or country while a member or the spouse or dependent of a member of the civil or military service of this state or of the United States, nor while engaged in the navigation of the waters of this state or of the United States or of the high seas if that person returns to the state of Washington within one year of discharge from said service with the intent to be domiciled in the state of Washington; any resident dependent student who remains in this state when such student's parents, having theretofore been domiciled in this state for a period of one year immediately prior to the time of commencement of the first day of the semester or quarter for which the student has registered at any institution, remove from this state, shall be entitled to continued classification as a resident student so long as such student's attendance (except summer sessions) at an institution in this state is continuous.

(3) To aid the institution in deciding whether a student, parent, legally appointed guardian or the person having legal custody of a student is domiciled in the state of Washington primarily for purposes other than educational, the rules and regulations adopted by the higher education coordinating board shall include but not be limited to the following:

(a) Registration or payment of Washington taxes or fees on a motor vehicle, mobile home, travel trailer, boat, or any other item of personal property owned or used by the person for which state registration or the payment of a state tax or fee is required will be a factor in considering evidence of the establishment of a Washington domicile.

(b) Permanent full time employment in Washington by a person will be a factor in considering the establishment of a Washington domicile.

(c) Registration to vote for state officials in Washington will be a factor in considering the establishment of a Washington domicile.

(4) After a student has registered at an institution such student's classification shall remain unchanged in the absence of satisfactory evidence to the contrary. A student wishing to apply for a change in classification shall reduce such evidence to writing and file it with the institution. In any case involving an application for a change from nonresident to resident status, the burden of proof shall rest with the applicant. Any change in classification, either nonresident to resident, or the reverse, shall be based upon written evidence maintained in the files of the institution and, if approved, shall take effect the semester or quarter such evidence was filed with the institution: PROVIDED, That applications for a change in classification shall be accepted up to the thirtieth calendar day following the first day of instruction of the quarter or semester for which application is made.

Sec. 5. RCW 28B.15.031 and 1993 sp.s. c 18 s 6 and 1993 c 379 s 201 are each reenacted and amended to read as follows:

The term "operating fees" as used in this chapter shall include the fees, other than building fees, charged all students registering at the state's colleges and universities but shall not include fees for short courses, self-supporting degree credit programs and courses, marine station work, experimental station work, correspondence or extension courses, and individual instruction and student deposits or rentals, disciplinary and library fines, which colleges and universities shall have the right to impose, laboratory, gymnasium, health, and student activity fees, or fees, charges, rentals, and other income derived from any or all revenue producing lands, buildings and facilities of the colleges or universities heretofore or hereafter acquired, constructed or installed, including but not limited to income from rooms, dormitories, dining rooms, hospitals, infirmaries, housing or student activity buildings, vehicular parking facilities, land, or the appurtenances thereon, or such other special fees as may be established by any college or university board of trustees or regents from time to time. Program fees at the state universities, regional universities, and The Evergreen State College are not included in operating fees. All moneys received as operating fees at any institution of higher education shall be deposited in a local account containing only operating fees revenue and related interest: PROVIDED, That except as provided in section 11 of this act, two and one-half percent of operating fees shall be retained by the institutions, except the technical colleges, for the purposes of RCW 28B.15.820. Local operating fee accounts shall not be subject to appropriation by the legislature or allotment procedures under chapter 43.88 RCW.

Sec. 6. RCW 28B.15.067 and 1992 c 231 s 4 are each amended to read as follows:

(1) Tuition fees shall be established and adjusted annually under the provisions of this chapter beginning with the 1987‑88 academic year. If an institution of higher education exercises its authority under section 11 of this act, such fees ((shall be identical, subject to other provisions of this chapter, for students enrolled at either state university, for students enrolled at the regional universities and The Evergreen State College and for students enrolled at any community college)) may vary by term, by institution, and by campus for students enrolled at state universities, regional universities, and The Evergreen State College. Such fees shall be identical for students enrolled at any community college. Except as provided in section 11 of this act, tuition fees shall reflect the undergraduate and graduate educational costs of the state universities, the regional universities and the community colleges, respectively, in the amounts prescribed in this chapter.

(2) The tuition fees established under this chapter shall not apply to high school students enrolling in community colleges under RCW 28A.600.300 through 28A.600.395.

NEW SECTION. Sec. 7. A new section is added to chapter 28B.15 RCW to read as follows:

The governing boards of the state universities, regional universities, and The Evergreen State College may charge program fees. The fees may vary by program, by student category, and by campus. These fees shall not be included in tuition fees.

Sec. 8. RCW 28B.15.076 and 1989 c 245 s 4 are each amended to read as follows:

The higher education coordinating board shall determine and transmit amounts constituting approved undergraduate and graduate educational costs to the several boards of regents and trustees of the state institutions of higher education by November 10 of each even-numbered year except the year 1990 for which the transmittal shall be made by December 17. Except as provided in section 11 of this act, tuition fees shall be based on such costs in accordance with the provisions of this chapter.

Sec. 9. RCW 28B.15.202 and 1993 sp.s. c 18 s 8 and 1993 c 379 s 202 are each reenacted and amended to read as follows:

Except as provided in section 11 of this act, tuition fees and maximum services and activities fees at the University of Washington and at Washington State University for other than the summer term 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 for the 1993-94 academic year shall be thirty-six and three-tenths percent and thereafter total tuition fees shall be forty-one and one-tenth 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 one hundred and twenty dollars. Beginning with the 1995-96 academic year, the building fee for each academic year shall ((be)) equal or exceed a percentage of total tuition fees((~~. This~~)), with the percentage ((~~shall be~~)) calculated by the higher education coordinating board ((~~and be~~)) based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(2) For full time resident graduate and law 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 for the 1993-94 academic year shall be twenty-five and two-tenths percent and thereafter total tuition fees shall be twenty-eight and four-tenths 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. Beginning with the 1995-96 academic year, the building fee for each academic year shall ((be)) equal or exceed a percentage of total tuition fees((~~. This~~)), with the percentage ((~~shall be~~)) calculated by the higher education coordinating board ((~~and be~~)) based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(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) of this section: PROVIDED, That the building fees for each academic year shall be three hundred and forty‑two dollars. Beginning with the 1995-96 academic year, the building fee for each academic year shall ((be)) equal or exceed a percentage of total tuition fees((~~. This~~)), with the percentage ((~~shall be~~)) calculated by the higher education coordinating board ((~~and be~~)) based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(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 for the 1993-94 academic year shall be one hundred nine and three-tenths percent and thereafter total tuition fees shall be one hundred twenty-two and nine-tenths 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. Beginning with the 1995-96 academic year, the building fee for each academic year shall ((be)) equal or exceed a percentage of total tuition fees((~~. This~~)), with the percentage ((~~shall be~~)) calculated by the higher education coordinating board ((~~and be~~)) based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(5) For full time nonresident graduate and law 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 for the 1993-94 academic year shall be sixty-five and six-tenths percent and thereafter total tuition fees shall be seventy-three and six-tenths 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. Beginning with the 1995-96 academic year, the building fee for each academic year shall ((be)) equal or exceed a percentage of total tuition fees((~~. This~~)), with the percentage ((~~shall be~~)) calculated by the higher education coordinating board ((~~and be~~)) based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(6) For full time nonresident 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 (5) of this section: PROVIDED, That the building fees for each academic year shall be five hundred and fifty‑five dollars. Beginning with the 1995-96 academic year, the building fee for each academic year shall ((be)) equal or exceed a percentage of total tuition fees((~~. This~~)), with the percentage ((~~shall be~~)) calculated by the higher education coordinating board ((~~and be~~)) based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(7) The governing boards of the state universities shall charge to and collect from each student, a services and activities fee. The governing board may increase the existing fee annually, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the annual percentage increase in resident undergraduate tuition fees: 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. For the 1993-94 academic year, services and activities fees shall not exceed two hundred forty-three dollars per student. For the 1994-95 academic year, services and activities fees shall not exceed two hundred forty-nine dollars per student. 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. 10. RCW 28B.15.402 and 1993 sp.s. c 18 s 11 and 1993 c 379 s 203 are each reenacted and amended to read as follows:

Except as provided in section 11 of this act, tuition fees and maximum services and activities fees at the regional universities and The Evergreen State College for other than the summer term 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 for the 1993-94 academic year shall be twenty-seven and seven-tenths percent and thereafter total tuition fees shall be thirty-one and five-tenths 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 seventy‑six dollars and fifty cents. Beginning with the 1995-96 academic year, the building fee for each academic year shall ((be)) equal or exceed a percentage of total tuition fees((~~. This~~)), with the percentage ((~~shall be~~)) calculated by the higher education coordinating board ((~~and be~~)) based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(2) For full time resident graduate students, the total tuition fees for the 1993-94 academic year shall be twenty-five and three-tenths percent and thereafter total tuition fees shall be twenty-eight and six-tenths 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. Beginning with the 1995-96 academic year, the building fee for each academic year shall ((be)) equal or exceed a percentage of total tuition fees((~~. This~~)), with the percentage ((~~shall be~~)) calculated by the higher education coordinating board ((~~and be~~)) based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(3) For full time nonresident undergraduate students and all other full time nonresident students not in graduate study programs, the total tuition fees for the 1993-94 academic year shall be one hundred nine and four-tenths percent and thereafter total tuition fees shall be one hundred twenty-three 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. Beginning with the 1995-96 academic year, the building fee for each academic year shall ((be)) equal or exceed a percentage of total tuition fees((~~. This~~)), with the percentage ((~~shall be~~)) calculated by the higher education coordinating board ((~~and be~~)) based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(4) For full time nonresident graduate students, the total tuition fees for the 1993-94 academic year shall be eighty-two percent and thereafter total tuition fees shall be ninety-two 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. Beginning with the 1995-96 academic year, the building fee for each academic year shall ((be)) equal or exceed a percentage of total tuition fees((~~. This~~)), with the percentage ((~~shall be~~)) calculated by the higher education coordinating board ((~~and be~~)) based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(5) The governing boards of each of the regional universities and The Evergreen State College shall charge to and collect from each student, a services and activities fee. The governing board may increase the existing fee annually, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the annual percentage increase in resident undergraduate tuition fees: 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. For the 1993-94 academic year, services and activities fees shall not exceed two hundred ((~~eight-four [eighty-four]~~)) eighty-four dollars per student. For the 1994-95 academic year, services and activities fees shall not exceed two hundred ninety dollars per student. 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.

NEW SECTION. Sec. 11. A new section is added to chapter 28B.15 RCW to read as follows:

The governing board of a state university, regional university, or The Evergreen State College may adjust the level of tuition fees above or below the levels prescribed in RCW 28B.15.202 and 28B.15.402, for students in any category, under the following conditions:

(1) The board shall, through a process adopted in rule, consult with students;

(2) The per student funding of estimated or actual state appropriations shall be below a percentile of similar funding for the institution's peers adopted under RCW 28B.80.330, as follows:

(a) During the 1997-98 academic year, the sixty-fifth percentile;

(b) During the 1998-99 academic year, the seventieth percentile;

(d) During the 2000-01 academic year, the eightieth percentile;

(e) During the 2001-02 academic year, the eighty-fifth percentile; and

(f) During the 2002-03 academic year and thereafter, the ninetieth percentile;

(3) In any academic year, the total revenue collected from tuition fees and program fees, when added to state appropriations, shall not exceed the combined state appropriation and tuition and fee revenues for that institution's peers at the percentiles described in subsection (2) of this section. Further, in any academic year, tuition fees for any student category as specified in RCW 28B.15.202 and 28B.15.402 shall not be increased by governing boards more than ten percent above the levels charged to students in that category during the previous academic year;

(4) Institutions of higher education shall provide notice of changes in tuition at least sixty days before the term in which the tuition change is to occur; and

(5) If a governing board increases tuition fees under the authority granted to it under this section, at least five percent of all revenue collected from tuition fees shall be used for the purposes of RCW 28B.15.820.

Sec. 12. RCW 28B.15.556 and 1993 sp.s. c 18 s 21 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, and The Evergreen State College may waive all or a portion of the tuition, and services and activities fees for undergraduate or graduate students of foreign nations subject to the following limitations:

(1) ((~~No more than the equivalent of one hundred waivers may be awarded to undergraduate or graduate students of foreign nations at each of the two state universities;~~

~~(2) No more than the equivalent of twenty waivers may be awarded to undergraduate or graduate students of foreign nations at each of the regional universities and The Evergreen State College;~~

~~(3)~~)) Priority in the awarding of waivers shall be given to students on academic exchanges or academic special programs sponsored by recognized international educational organizations((~~; and~~

~~(4) An undergraduate or graduate student of a foreign nation receiving a waiver under this section is not eligible for any other waiver~~)).

(2) The waiver programs under this section, to the greatest extent possible, shall promote reciprocal placements and waivers in foreign nations for Washington residents. The number of waivers awarded by each institution shall not exceed the number of that institution's own students enrolled in approved study programs abroad during the same period.

Sec. 13. RCW 28B.15.740 and 1993 sp.s. c 18 s 28 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, The Evergreen State College, and the community colleges may waive all or a portion of tuition and fees subject to the following restrictions:

(1) ((~~Except as provided in subsection (2) of this section,~~)) The total dollar amount of tuition and fee waivers awarded by the governing boards of community colleges considered as a whole shall not exceed ((~~four percent, except for the community colleges considered as a whole, such amount shall not exceed~~)) three percent of an amount determined by estimating the total collections from tuition and services and activities fees had no such waivers been made, and deducting the portion of that total amount that is attributable to the difference between resident and nonresident fees: PROVIDED, That at least three-fourths of the dollars waived shall be for needy students who are eligible for resident tuition and fee rates pursuant to RCW 28B.15.012 and 28B.15.013: PROVIDED FURTHER, That the remainder of the dollars waived, not to exceed one-fourth of the total, may be applied to other students at the discretion of the governing boards, except on the basis of participation in intercollegiate athletic programs((~~: PROVIDED FURTHER, That the waivers for undergraduate and graduate students of foreign nations under RCW 28B.15.556 are not subject to the limitation under this section~~)).

(2) ((~~In addition to the tuition and fee waivers provided in subsection (1) of this section and~~)) The governing boards of the state universities, regional universities, and The Evergreen State College may waive all or a portion of tuition and fees for needy students who are eligible for resident tuition and fee rates pursuant to RCW 28B.15.012 and 28B.15.013, or for any other student, except on the basis of intercollegiate athletics.

(3) Subject to the provisions of RCW 28B.15.455 and 28B.15.460, a total dollar amount of tuition and fee waivers awarded by any state university, regional university, or state college under this chapter, not to exceed one percent, as calculated in subsection (1) of this section, may be used for the purpose of achieving or maintaining gender equity in intercollegiate athletic programs. At any institution that has an underrepresented gender class in intercollegiate athletics, any such waivers shall be awarded:

(a) First, to members of the underrepresented gender class who participate in intercollegiate athletics, where such waivers result in saved or displaced money that can be used for athletic programs for the underrepresented gender class. Such saved or displaced money shall be used for programs for the underrepresented gender class; and

(b) Second, (i) to nonmembers of the underrepresented gender class who participate in intercollegiate athletics, where such waivers result in saved or displaced money that can be used for athletic programs for members of the underrepresented gender class. Such saved or displaced money shall be used for programs for the underrepresented gender class; or (ii) to members of the underrepresented gender class who participate in intercollegiate athletics, where such waivers do not result in any saved or displaced money that can be used for athletic programs for members of the underrepresented gender class.

Sec. 14. RCW 28B.15.820 and 1993 c 385 s 1 and 1993 c 173 s 1 are each reenacted and amended to read as follows:

(1) Each ((~~institution of higher education, except technical colleges,~~)) community college shall deposit two and one-half percent of revenues collected from tuition and services and activities fees in an institutional financial aid fund that is hereby created and which shall be held locally. Each state university, regional university, and The Evergreen State College shall deposit a minimum of two and one-half percent of revenue collected from tuition and services and activities fees into the fund. Any institution that exercises the authority granted in section 11 of this act shall deposit a minimum of five percent of revenue collected from tuition and services and activities fees into the fund. Moneys in the fund shall be used only for the following purposes: (a) To make guaranteed long-term loans to eligible students as provided in subsections (3) through (8) of this section; (b) to make short-term loans as provided in subsection (9) of this section; or (c) to provide financial aid to needy students as provided in subsection (10) of this section.

(2) An "eligible student" for the purposes of subsections (3) through (8) and (10) of this section is a student registered for at least six credit hours or the equivalent, who is eligible for resident tuition and fee rates as defined in RCW 28B.15.012 through 28B.15.013, and who is a "needy student" as defined in RCW 28B.10.802.

(3) The amount of the guaranteed long-term loans made under this section shall not exceed the demonstrated financial need of the student. Each institution shall establish loan terms and conditions which shall be consistent with the terms of the guaranteed loan program established by 20 U.S. Code Section 1071 et seq., as now or hereafter amended. All loans made shall be guaranteed by the Washington student loan guaranty association or its successor agency. Institutions are hereby granted full authority to operate as an eligible lender under the guaranteed loan program.

(4) Before approving a guaranteed long-term loan, each institution shall analyze the ability of the student to repay the loan based on factors which include, but are not limited to, the student's accumulated total education loan burdens and the employment opportunities and average starting salary characteristics of the student's chosen fields of study. The institution shall counsel the student on the advisability of acquiring additional debt, and on the availability of other forms of financial aid.

(5) Each institution is responsible for collection of guaranteed long-term loans made under this section and shall exercise due diligence in such collection, maintaining all necessary records to insure that maximum repayments are made. Institutions shall cooperate with other lenders and the Washington student loan guaranty association, or its successor agency, in the coordinated collection of guaranteed loans, and shall assure that the guarantability of the loans is not violated. Collection and servicing of guaranteed long-term loans under this section shall be performed by entities approved for such servicing by the Washington student loan guaranty association or its successor agency: PROVIDED, That institutions be permitted to perform such servicing if specifically recognized to do so by the Washington student loan guaranty association or its successor agency. Collection and servicing of guaranteed long-term loans made by community colleges under subsection (1) of this section shall be coordinated by the state board for community and technical colleges and shall be conducted under procedures adopted by the state board.

(6) Receipts from payment of interest or principal or any other subsidies to which institutions as lenders are entitled, that are paid by or on behalf of borrowers of funds under subsections (3) through (8) of this section, shall be deposited in each institution's financial aid fund and shall be used to cover the costs of making the guaranteed long-term loans under this section and maintaining necessary records and making collections under subsection (5) of this section: PROVIDED, That such costs shall not exceed five percent of aggregate outstanding loan principal. Institutions shall maintain accurate records of such costs, and all receipts beyond those necessary to pay such costs, shall be deposited in the institution's financial aid fund.

(7) The governing boards of the state universities, the regional universities, and The Evergreen State College, and the state board for community and technical colleges, on behalf of the community colleges, shall each adopt necessary rules and regulations to implement this section.

(8) First priority for any guaranteed long-term loans made under this section shall be directed toward students who would not normally have access to educational loans from private financial institutions in Washington state, and maximum use shall be made of secondary markets in the support of loan consolidation.

(9) Short-term low or no-interest loans, not to exceed one year, may be made from the institutional financial aid fund to students enrolled in the institution. No such loan shall be made to any student who is known by the institution to be in default or delinquent in the payment of any outstanding student loan. A short-term loan may be made only if the institution has ample evidence that the student has the capability of repaying the loan within the time frame specified by the institution for repayment.

(10) Any moneys deposited in the institutional financial aid fund that are not used in making long-term or short-term loans may be used by the institution for locally-administered financial aid programs for needy students, such as need-based institutional employment programs or need-based tuition and fee scholarship or grant programs. These funds shall be used in addition to and not to replace institutional funds that would otherwise support these locally-administered financial aid programs. First priority in the use of these funds shall be given to needy students who have accumulated excessive educational loan burdens. An excessive educational loan burden is a burden that will be difficult to repay given employment opportunities and average starting salaries in the student's chosen fields of study. Second priority in the use of these funds shall be given to needy single parents, to assist these students with their educational expenses, including expenses associated with child care and transportation.

Sec. 15. RCW 28B.80.330 and 1993 c 363 s 6 are each amended to read as follows:

The board shall perform the following planning duties in consultation with the four-year institutions, the community and technical college system, and when appropriate the work force training and education coordinating board, the superintendent of public instruction, and the independent higher educational institutions:

(1) Develop and establish role and mission statements and a set of peer institutions for each of the four-year institutions and for the community and technical college system. In adopting or revising a set of peer institutions, the board shall consult with institutions of higher education, the office of financial management, and the house of representatives and senate higher education and fiscal committees;

(2) Identify the state's higher education goals, objectives, and priorities;

(3) Prepare a comprehensive master plan which includes but is not limited to:

(a) Assessments of the state's higher education needs. These assessments may include, but are not limited to: The basic and continuing needs of various age groups; business and industrial needs for a skilled work force; analyses of demographic, social, and economic trends; consideration of the changing ethnic composition of the population and the special needs arising from such trends; college attendance, retention, and dropout rates, and the needs of recent high school graduates and placebound adults. The board should consider the needs of residents of all geographic regions, but its initial priorities should be applied to heavily populated areas underserved by public institutions;

(b) Recommendations on enrollment and other policies and actions to meet those needs;

The initial plan shall be submitted to the governor and the legislature by December 1, 1987. Comments on the plan from the board's advisory committees and the institutions shall be submitted with the plan.

The plan shall be updated every four years, and presented to the governor and the appropriate legislative policy committees. Following public hearings, the legislature shall, by concurrent resolution, approve or recommend changes to the initial plan, and the updates. The plan shall then become state higher education policy unless legislation is enacted to alter the policies set forth in the plan;

(4) Review, evaluate, and make recommendations on operating and capital budget requests from four-year institutions and the community and technical college system, based on the elements outlined in subsections (1), (2), and (3) of this section, and on guidelines which outline the board's fiscal priorities. These guidelines shall be distributed to the institutions and the community college board by December of each odd-numbered year. The institutions and the community college board shall submit an outline of their proposed budgets, identifying major components, to the board no later than August 1 of each even-numbered year. The board shall submit recommendations on the proposed budgets and on the board's budget priorities to the office of financial management before October 15 of each even-numbered year, and to the legislature by January 1 of each odd-numbered year. In addition, the board shall develop and submit to the governor and the legislature a budget request for the higher education system as a whole. The request shall describe any new funding needed to meet all or a portion of the state's higher education priorities, enrollments in four-year institutions needed to maintain current participation rates, and enrollments in four-year institutions needed to meet the board's enrollment targets. The request shall be separate from the budget requests submitted to the governor and the legislature by each of the four-year institutions and the state board for community and technical colleges;

(5) Recommend legislation affecting higher education;

(6) Recommend tuition and fees policies and levels based on comparisons with peer institutions;

(7) Establish priorities and develop recommendations on financial aid based on comparisons with peer institutions;

(8) Prepare recommendations on merging or closing institutions; and

(9) Develop criteria for identifying the need for new baccalaureate institutions.

NEW SECTION. Sec. 16. A new section is added to chapter 28B.80 RCW to read as follows:

(1) The higher education coordinating board may contract with an independent institution of higher education as defined in this section, to provide services subject to the following conditions:

(a) There has been a finding of need and that the contract represents the most cost-effective way of providing the services to resident students in a particular locality;

(b) Only students who are residents of the state of Washington shall receive services pursuant to the contract. As used in this subsection, "residents of the state of Washington" means that the students would be eligible to pay resident tuition rates under RCW 28B.15.012 and 28B.15.013 if they were enrolled at state institutions of higher education as defined in RCW 28B.10.016;

(c) The content of the program shall not include any religious or sectarian instruction, nor shall any student for whom a contract provision has been made be expected to participate in any sectarian activity as a condition of enrollment;

(d) The tuition and fees charged to resident students by the independent institution of higher education for the degree program or instructional program services shall not exceed the rate for resident tuition fees, services and activities fees, and any applicable program fees for comparable programs at institutions of higher education as defined in RCW 28B.10.016, as determined by the higher education coordinating board; and

(e) The contract has been approved by the office of the attorney general.

(2) Unless the context clearly requires otherwise, the following definitions apply throughout this section.

(a) "Instructional program" means a course of study leading to certification, licensure, or to a degree at the associate, baccalaureate, masters, or doctoral level.

(b) "Independent institution of higher education" means a private, nonprofit educational institution, the main campus of which is permanently situated in the state, that is not pervasively sectarian, that does not restrict entry or employment on the grounds of race, gender, religion, or disability, that provides programs of education beyond high school leading at least to the baccalaureate degree, and that is accredited by the Northwest association of schools and colleges, or by an accrediting association recognized by the higher education coordinating board.

NEW SECTION. Sec. 17. It is the intent of the legislature to restructure and fully fund the state's system of financial aid, however, funding levels for the state's system of financial aid are subject to available funds. The restructured financial aid system shall be known as college promise.

NEW SECTION. Sec. 18. (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 may include a demonstration project to assist needy students whose parents did not complete a degree or certificate from an institution of higher education. College promise shall be implemented beginning in the 1998-99 academic year.

(2) By January 1, 1998, 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 19 and 20 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 19 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 19 of this act. The estimates, developed in consultation with the office of financial management, the office of the superintendent of public instruction, and other agencies as appropriate, shall take into account state economic and demographic factors and other appropriate information;

(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; and

(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; and the educational opportunity grant program under chapter 28B.101 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 19 of this act.

(3) It is the intent of the legislature that the cost estimates completed under subsection (2) of this section shall be the basis for recommending funding levels for state financial aid programs for the 1998-99 academic year and each biennium thereafter.

(4) The methodologies used to estimate costs under subsection (2) of this section shall be used for the annual cost estimates required under section 21 of this act.

(5) The plan completed under subsection (2) of this section shall be deemed approved on June 30, 1997, 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. 19. 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 and chapters 28B.12 and 28B.101 RCW:

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

(i) Limit the debt of an undergraduate student 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, ensuring that undergraduate students with the most demonstrated financial need receive full grants before less needy students receive any grant:

(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 off-campus community service employers.

(4) For students whose parents did not complete a higher education degree or certificate: Determine the feasibility of providing grants to needy first generation scholars.

NEW SECTION. Sec. 20. 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, 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. It is the intent of the legislature these goals not impair the ability of financial aid officers to adjust aid packages to meet the needs of students. However, it is the further intent of the legislature that financial aid officers, insofar as possible attempt to implement these goals.

Goals for Funding Needy Undergraduate Students

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

Family

Income: 0-$20,864 $20,865-$31,296 $31,297-$52,160

(1991 dollars,

family of four)

Percentage Fifty percent Fifty-one to Seventy-six

of State seventy-five to one hundred

Median percent twenty-five

Income: percent

Priority for

Receiving

Grants: First Second Third

Assistance One-half One-half Up to one-third

Mix goal: grants grants grants

One-half One-half Two-thirds or more

work study work study work study

and loans and loans and loans

NEW SECTION. Sec. 21. By September 30th 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 including but not limited to: RCW 28B.10.210 through 28B.10.220, 28B.10.790 through 28B.10.824, chapters 28B.12, 28B.101, and 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. 22. 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. The higher education coordinating board shall:

(1) Define and assist additional populations of needy students as funding becomes available, in the priorities described in section 19 of this act, and using income level classification definitions as described in section 20 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; and

(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.

NEW SECTION. Sec. 23. (1) With the exception of institutions of higher education as defined in RCW 28B.10.016, any institution of postsecondary education that enrolls students receiving state-funded financial aid shall:

(a) For Washington residents, match the total amount of the state financial aid grant funds received by all enrolled students at that institution from the state need grant and equal opportunity grant programs, with an equal amount of institutionally raised grant funds from nongovernmental sources; and

(b) Enter into new or honor existing transfer agreements with institutions of higher education as defined in RCW 28B.10.016.

(2) The higher education coordinating board shall adopt rules to implement these requirements. The rules shall ensure that all institutional matching grant funds go to students who are needy as defined in RCW 28B.10.802(3) and who are residents of the state of Washington. As used in this subsection, "residents of the state of Washington" means that the students would be eligible to pay resident tuition rates under RCW 28B.15.011 through 28B.15.013 if they were enrolled at a state institution of higher education as defined in RCW 28B.10.016.

NEW SECTION. Sec. 24. The higher education coordinating board may design a demonstration project to assist needy first generation college students to obtain either a community or technical college degree or certificate, or a baccalaureate degree. Through the project, a needy student, as defined in RCW 28B.10.802(3), who attends a Washington institution of higher education that is accredited by an accrediting association recognized by the board by rule, and whose parents did not complete a degree or certificate from an institution of higher education, may receive a grant of up to fifteen hundred dollars per year, not to exceed the student's documented need. The grant may be renewable each year, if the student makes satisfactory academic progress. Grants awarded to any one student shall not exceed a cumulative total of nine thousand dollars for an individual pursuing a baccalaureate degree or five thousand dollars for a student pursuing a community or technical college degree or certificate. Before seeking funding for the program, the board shall submit to the governor and the legislature a plan for implementing the project. The plan shall include a provision for verification of student eligibility to participate in the demonstration project.

NEW SECTION. Sec. 25. RCW 28B.15.065 and 1977 ex.s. c 322 s 6 are each repealed.

NEW SECTION. Sec. 26. Unless the context clearly requires otherwise, the definitions in this section apply throughout this section and sections 27 and 28 of this act.

(1) "Eligible student" means an enlisted member or an officer of the rank of captain or below in the Washington national guard who is a resident student as defined in RCW 28B.15.012 and 28B.15.013, who attends an institution of higher education that is located in this state and accredited by the Northwest Association of Schools and Colleges, and who meets any additional selection criteria adopted by the office.

(2) "Conditional scholarship" means a loan that is forgiven in whole or in part if the recipient renders service as a member of the Washington national guard under rules adopted by the office.

(3) "Forgiven" or "to forgive" or "forgiveness" means either to render service in the Washington national guard in lieu of monetary repayment, or to be relieved of the service obligation under rules adopted by the office.

(4) "Office" means the office of the adjutant general of the state military department.

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

(6) "Service obligation" means serving in the Washington national guard for one additional year for each year of conditional scholarship received under this program.

NEW SECTION. Sec. 27. The Washington state national guard conditional scholarship program is established. The program shall be administered by the office. In administering the program, the powers and duties of the office shall include, but need not be limited to:

(1) The selection of eligible students to receive conditional scholarships;

(2) The award of conditional scholarships funded exclusively by federal funds, private donations, or repayments from any participant who does not complete the participant's service obligation. State general fund money shall not be used for conditional scholarships. The annual amount of each conditional scholarship may vary, but shall not exceed the annual cost of undergraduate tuition fees and services and activities fees at the University of Washington, plus an allowance for books and supplies;

(3) The adoption of necessary rules and guidelines;

(4) The adoption of participant selection criteria. The criteria may include but need not be limited to requirements for: Satisfactory progress, minimum grade point averages, enrollment in courses or programs that lead to a baccalaureate degree or an associate degree or a certificate, and satisfactory participation as a member of the Washington national guard;

(5) The notification of participants of their additional service obligation or required repayment of the conditional scholarship; and

(6) The collection of repayments from participants who do not meet the eligibility criteria or service obligations.

NEW SECTION. Sec. 28. (1) Participants in the conditional scholarship program incur an obligation to repay the conditional scholarship, with interest, unless they serve in the Washington national guard for one additional year for each year of conditional scholarship received, under rules adopted by the office.

(2) The entire principal and interest of each yearly repayment shall be forgiven for each additional year in which a participant serves in the Washington national guard, under rules adopted by the office.

(3) If a participant elects to repay the conditional scholarship, the period of repayment shall be four years, with payments accruing quarterly commencing nine months from the date that the participant leaves the Washington national guard or withdraws from the institution of higher education, whichever comes first. The interest rate on the repayments shall be eight percent per year. Provisions for deferral and forgiveness shall be determined by the office.

(4) The office is responsible for collection of repayments made under this section. The office shall exercise due diligence in such collection, maintaining all necessary records to ensure that maximum repayments are made. Collection and servicing of repayments under this section shall be pursued using the full extent of law, including wage garnishment if necessary. The office is responsible to forgive all or parts of such repayments under the criteria established in this section, and shall maintain all necessary records of forgiven payments. The office may contract with the higher education coordinating board for collection of repayments under this section.

(5) Receipts from the payment of principal or interest paid by or on behalf of participants shall be deposited with the office and shall be used to cover the costs of granting the conditional scholarships, maintaining necessary records, and making collections under subsection (4) of this section. The office shall maintain accurate records of these costs, and all receipts beyond those necessary to pay such costs shall be used to grant conditional scholarships to eligible students.

NEW SECTION. Sec. 29. Sections 17 through 21, 23, and 24 of this act shall constitute a new chapter in Title 28B RCW.

NEW SECTION. Sec. 30. Sections 26 through 28 of this act shall constitute a new chapter in Title 28B RCW.

NEW SECTION. Sec. 31. 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.