2288-S

AN ACT Relating to financial aid portability; amending RCW 28B.10.790 and 28B.10.802; adding a new section to chapter 28B.10 RCW; creating a new section; and providing an expiration date.

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

NEW SECTION. Sec. 1. (1) The legislature finds that:

(a) During the next fifteen to twenty years, Washington's colleges and universities will face significant capacity and fiscal pressures as they attempt to meet the enrollment demands of students from the baby boom echo generation and from workers seeking retraining;

(b) One of the ways to help alleviate some of the pressure caused by enrollment demands may be by permitting students to use their financial aid awards to study in other states;

(c) Some of Washington's needy college students would benefit from an opportunity to study in specialized programs or institutions of higher education located in other states; and

(d) The state could benefit by creating pilot projects that study creative, cost-effective ways to meet the postsecondary education needs of Washington's students.

(2) Therefore, the legislature intends to direct the higher education coordinating board to establish a pilot project that permits a limited number of students to use their state need grant awards to study in other states.

NEW SECTION. Sec. 2. A new section is added to chapter 28B.10 RCW to read as follows:

(1) The higher education coordinating board shall create a pilot project that permits some students to use their state need grant awards when the students study in other states. The pilot project shall include, but need not be limited to, needy students from Clark county who wish to attend an eligible institution of higher education located in the Portland area. The board may adopt rules to establish eligibility criteria for student and institutional participation in the pilot project. By December 15, 2002, the board shall report to the governor and appropriate committees of the legislature on the results of the pilot project. The report shall include a recommendation on the extent financial aid portability should be permitted for Washington's students.

(2) This section expires June 30, 2003.

Sec. 3. RCW 28B.10.790 and 1985 c 370 s 54 are each amended to read as follows:

(1) Washington residents attending any nonprofit college or university in another state which has a reciprocity agreement with the state of Washington shall be eligible for the student financial aid program outlined in RCW 28B.10.800 through 28B.10.824 if ((~~(1)~~)) (a) they qualify as a "needy student" under RCW 28B.10.802(3), and ((~~(2)~~)) (b) the institution attended is a member institution of an accrediting association recognized by rule of the higher education coordinating board for the purposes of this section and is specifically encompassed within or directly affected by such reciprocity agreement and agrees to and complies with program rules and regulations pertaining to such students and institutions adopted pursuant to RCW 28B.10.822.

(2) Washington residents participating in the pilot project under section 2 of this act shall be eligible for the student financial aid program outlined in RCW 28B.10.800 through 28B.10.824 if the residents (a) qualify as needy students under RCW 28B.10.802(3), (b) are enrolled at an eligible institution as defined by the board under section 2 of this act, and (c) meet any additional criteria established by the board for participation in the pilot project.

Sec. 4. RCW 28B.10.802 and 1989 c 254 s 2 are each amended to read as follows:

As used in RCW 28B.10.800 through 28B.10.824:

(1) "Institutions of higher education" shall mean ((~~(1)~~)) (a) any public university, college, community college, or vocational-technical institute operated by the state of Washington or any political subdivision thereof ((~~or (2)~~)); (b) any institution of higher education that meets the eligibility requirements established by the board under section 2 of this act; or (c) any other university, college, school, or institute in the state of Washington offering instruction beyond the high school level which is a member institution of an accrediting association recognized by rule of the board for the purposes of this section: PROVIDED, That any institution, branch, extension or facility operating within the state of Washington which is affiliated with an institution operating in another state must be a separately accredited member institution of any such accrediting association: PROVIDED FURTHER, That no institution of higher education shall be eligible to participate in a student financial aid program unless it agrees to and complies with program rules and regulations adopted pursuant to RCW 28B.10.822.

(2) The term "financial aid" shall mean loans and/or grants to needy students enrolled or accepted for enrollment as a student at institutions of higher education.

(3) The term "needy student" shall mean a post high school student of an institution of higher learning as defined in subsection (1) of this section who demonstrates to the board the financial inability, either through the student's parents, family and/or personally, to meet the total cost of board, room, books, and tuition and incidental fees for any semester or quarter.

(4) The term "disadvantaged student" shall mean a post high school student who by reason of adverse cultural, educational, environmental, experiential, familial or other circumstances is unable to qualify for enrollment as a full time student in an institution of higher learning, who would otherwise qualify as a needy student, and who is attending an institution of higher learning under an established program designed to qualify the student for enrollment as a full time student.

(5) "Commission" or "board" shall mean the higher education coordinating board.