AN ACT Relating to the
tuition recovery trust fund; amending RCW 28B.85.200 and 28B.85.210; and
declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
Sec. 1. RCW 28B.85.200 and 1994
c 38 s 3 are each amended to read as follows:
The board shall deposit
all moneys received under RCW 28B.85.210 into a separate account in the tuition
recovery trust fund established under RCW ((43.84.092)) 28C.10.082.
Moneys deposited in the fund by the board shall be spent only for the purposes
under RCW 28B.85.210. Claims against the fund made by students in degree
programs shall be limited to the assets in the board's separate account in the
tuition recovery trust fund. Claims against the fund made by students in
nondegree programs shall be limited to assets deposited by the work force
training and education coordinating board in the tuition recovery trust fund.
Disbursements from its account in the fund shall be made on authorization of
the board.
Sec. 2. RCW 28B.85.210 and 1994
c 38 s 4 are each amended to read as follows:
(1) The board shall
maintain and administer a separate account for degree-granting private
vocational schools in the tuition recovery trust fund established under RCW ((43.84.092))
28C.10.082. The board shall require any degree-granting private
vocational school subject to this chapter to make cash deposits into the
board's account in the tuition recovery trust fund in an amount determined by
the board.
(2) All funds collected
for the board's account in the tuition recovery trust fund are payable to the state
for the benefit and protection of any student or enrollee of a degree-granting
private vocational school's degree programs authorized under this chapter, or
in the case of a minor, his or her parent or guardian for purposes including
but not limited to the settlement of claims related to school closures and
complaints filed under RCW 28B.85.090(1). The board's account shall be liable
for settlement of claims and costs of administration, but shall not be liable
to pay out or recover penalties assessed under RCW 28B.85.100 or 28B.85.110.
No liability accrues to the state of Washington from claims made against the
fund.
(3) The board shall
establish by rule a minimum operating balance that is required to be on deposit
in its account in the fund by a specified date and maintained thereafter. If
disbursals reduce the account below the minimum amount, each participating
degree-granting private vocational school shall be assessed a pro rata share of
the deficiency created, based on the incremental scale of each school's
liability specified in subsection (5) of this section. The board shall adopt
by rule schedules of times and amounts for effecting payments of assessments.
(4) To be and remain
authorized under this chapter each degree-granting private vocational school
shall, in addition to other requirements under this chapter, make cash deposits
into the board's account in the tuition recovery trust fund as a means to
assure payment of claims brought under this chapter.
(5) The amount of
liability that can be satisfied by this account on behalf of each individual
degree-granting private vocational school authorized under this chapter shall
be established by the board, based on an incremental scale that recognizes the
average amount of unearned prepaid tuition paid for degree programs that is in
possession of the degree-granting private vocational school.
(6) The account's
liability with respect to each participating degree-granting private vocational
school commences on the date of its initial deposit into the fund and ceases
one year from the date it is no longer authorized under this chapter.
(7) The board shall
adopt by rule a matrix for calculating the deposits into the account required
of each degree-granting private vocational school.
(8) No vested right or
interest in deposited funds is created or implied for the depositor, either at
any time during the operation of the fund or at any such future time that the
board's account in the fund may be dissolved. All funds deposited are payable
to the state for the purposes described under this section. No deposits made
into the fund by any degree-granting private vocational school are
transferable. If the majority ownership interest in a school is conveyed
through sale or other means to different ownership, all contributions made to
the date of conveyance accrue to the fund. The new owner commences
contributions under provisions applying to new applicants. The board shall
maintain its account in the fund, serve appropriate notices to affected
entities when scheduled deposits are due, collect deposits, and make
disbursements to settle claims against its account.
(9) To settle claims
adjudicated under RCW 28B.85.090(1) and claims resulting when a degree-granting
private vocational school ceases to provide educational services, the board may
make disbursements from its account following the procedure in this subsection.
(a) The board shall
attempt to notify all potential claimants. The unavailability of records and
other circumstances surrounding a school closure may make it impossible or
unreasonable for the board to ascertain the names and locations of each
potential claimant but the board shall make reasonable inquiries to secure that
information from all likely sources. The board shall then proceed to settle
the claims on the basis of information in its possession. The board is not
responsible or liable for claims or for handling claims that may subsequently
appear or be discovered.
(b) Thirty days after
identified potential claimants have been notified, if a claimant refuses or
neglects to file a claim verification as requested in such notice, the board
shall be relieved of further duty or action on behalf of the claimant under
this chapter.
(c) After verification
and review, the board may disburse funds from its account in the tuition
recovery trust fund to settle or compromise the claims. However, the liability
of its account for claims against the closed degree-granting private vocational
school shall not exceed the maximum amount of liability assigned to that
degree-granting private vocational school under subsection (5) of this section.
(d) In the instance of
claims against a closed school, the board shall seek to recover such disbursed
funds from the assets of the defaulted degree-granting private vocational
school, including but not limited to asserting claims as a creditor in
bankruptcy proceedings.
(10) If funds are
disbursed to settle claims against a currently authorized degree-granting
private vocational school, the board shall make demand upon the authorized
school for recovery. The board shall adopt by rule schedules of times and
amounts for effecting recoveries. A degree-granting private vocational
school's failure to perform subjects its authorization to suspension or
revocation under RCW 28B.85.080 in addition to any other remedies available to
the board.
NEW
SECTION. Sec. 3. This act is necessary for
the immediate preservation of the public peace, health, or safety, or support
of the state government and its existing public institutions, and shall take
effect immediately.
