H-2314

AN ACT Relating to higher education; amending RCW 28B.10.800, 28B.10.804, 28B.10.806, 28B.10.808, 28B.10.810, and 28B.10.822; and adding a new section to chapter 28B.10 RCW.

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:

(1) The legislature finds that the higher education coordinating board, in consultation with the higher education community, has completed a review of the state need grant program. It is the intent of the legislature to endorse the board's proposed changes to the state need grant program, including:

(a) Reaffirmation that the primary purpose of the state need grant program is to assist low-income, needy, and disadvantaged Washington residents attending institutions of higher education;

(b) State need grant recipients be required to contribute a portion of the total cost of their education through self-help;

(c) State need grant recipients be required to document their need for dependent care assistance after taking into account other public funds provided for like purposes; and

(d) Institutional aid administrators be allowed to determine whether a student eligible for a state need grant in a given academic year may remain eligible for the ensuing year if the student's family income increases by no more than a marginal amount.

(2) The legislature further finds that the higher education coordinating board, under its authority to implement the proposed changes in subsection (1) of this section, should do so in a timely manner.

(3) The legislature also finds that:

(a) In most circumstances, need grant eligibility should not extend beyond five years or one hundred twenty-five percent of the published length of the program in which the student is enrolled or the credit or clock-hour equivalent; and

(b) State financial aid programs should continue to adhere to the principle that funding follows resident students to their choice of institution of higher education.

Sec. 2. RCW 28B.10.800 and 1993 sp.s. c 18 s 2 are each amended to read as follows:

The ((~~sole~~)) purposes of RCW 28B.10.800 through 28B.10.824 ((is)) are to establish ((a)) the principles upon which the state financial aid programs will be based and to establish the state of Washington ((~~student financial aid~~)) state need grant program, thus assisting financially needy or disadvantaged students domiciled in Washington to obtain the opportunity of attending an accredited institution of higher education, as defined in RCW 28B.10.802(1). ((~~Financial aid~~)) State need grants under RCW 28B.10.800 through 28B.10.824 ((is)) are available only to students who are resident students as defined in RCW 28B.15.012(2) (a) through (d).

Sec. 3. RCW 28B.10.804 and 1995 c 269 s 801 are each amended to read as follows:

The ((~~commission~~)) board shall be cognizant of the following guidelines in the performance of its duties:

(1) The ((~~commission~~)) board shall be research oriented, not only at its inception but continually through its existence.

(2) The ((~~commission~~)) board shall coordinate all existing programs of financial aid except those specifically dedicated to a particular institution by the donor.

(3) The ((~~commission~~)) board shall take the initiative and responsibility for coordinating all federal student financial aid programs to ((~~insure~~)) ensure that the state recognizes the maximum potential effect of these programs, and shall design ((~~the~~)) state programs ((~~which~~)) that complement((s)) existing federal, state, and institutional programs. The board shall ensure that state programs continue to follow the principle that state financial aid funding follows the student to the student's choice of institution of higher education.

(4) Counseling is a paramount function of the state need grant and other state student financial aid programs, and in most cases could only be properly implemented at the institutional levels; therefore, state student financial aid programs shall be concerned with the attainment of those goals which, in the judgment of the ((~~commission~~)) board, are the reasons for the existence of a student financial aid program, and not solely with administration of the program on an individual basis.

(5) The "package" approach of combining loans, grants and employment for student financial aid shall be the ((~~conceptional~~)) conceptual element of the state's involvement.

Sec. 4. RCW 28B.10.806 and 1989 c 254 s 3 are each amended to read as follows:

The ((~~commission~~)) board shall have the following powers and duties:

(1) Conduct a full analysis of student financial aid as a means of:

(a) Fulfilling educational aspirations of students of the state of Washington, and

(b) Improving the general, social, cultural, and economic character of the state.

Such an analysis will be a continuous one and will yield current information relevant to needed improvements in the state program of student financial aid. The ((~~commission~~)) board will disseminate the information yielded by their analyses to all appropriate individuals and agents.

((~~(c) This study should include information on the following:~~

~~(i) all programs and sources of available student financial aid,~~

~~(ii) distribution of Washington citizens by socio-economic class,~~

~~(iii) data from federal and state studies useful in identifying:~~

~~(A) demands of students for specific educational goals in colleges, and~~

~~(B) the discrepancy between high school students' preferences and the colleges they actually selected.~~))

(2) Design a state program of student financial aid based on the data of the study referred to in this section. The state programs will supplement available federal and local aid programs. The state programs of student financial aid will not exceed the difference between the budgetary costs of attending an institution of higher ((~~learning~~)) education and the student's total resources, including family support, personal savings, employment, and federal, state, and local aid programs.

(3) Determine and establish criteria for financial need of the individual applicant based upon the consideration of that particular applicant. In making this determination the ((~~commission~~)) board shall consider the following:

(a) Assets and income of the student.

(b) Assets and income of the parents, or the individuals legally responsible for the care and maintenance of the student.

(d) Any other criteria deemed relevant to the ((~~commission~~)) board.

(4) Set the amount of financial aid to be awarded to any individual needy or disadvantaged student in any school year.

(5) Award financial aid to needy or disadvantaged students for a school year based upon only that amount necessary to fill the financial gap between the budgetary cost of attending an institution of higher education and the family and student contribution.

(6) Review the need and eligibility of all applications on an annual basis and adjust financial aid to reflect changes in the financial need of the recipients and the cost of attending the institution of higher education.

Sec. 5. RCW 28B.10.808 and 1991 c 164 s 4 are each amended to read as follows:

In awarding need grants, the ((~~commission~~)) board shall proceed substantially as follows: PROVIDED, That nothing contained herein shall be construed to prevent the ((~~commission~~)) board, in the exercise of its sound discretion, from following another procedure when the best interest of the program so dictates:

(1) The ((~~commission~~)) board shall annually select the financial aid award ((~~winners~~)) recipients from among Washington residents applying for student financial aid who have been ranked according to financial need as determined by the amount of the family contribution and other considerations brought to the ((~~commission's~~)) board's attention.

(2) The financial need of the highest ranked students shall be met by grants depending upon the evaluation of financial need until the total allocation has been disbursed. Funds from grants which are declined, forfeited or otherwise unused shall be reawarded until dispersed.

(3) ((A grant may be renewed until the course of study is completed, but not for more than an additional four academic years beyond the first year of the award. These shall not be required to be consecutive years)) A student shall be eligible to receive a state need grant for up to five years, or the credit or clock hour equivalent of five years, or up to one hundred twenty-five percent of the published length of time of the student's program. A student may not start a new associate degree program as a state need grant recipient until at least five years have elapsed since earning an associate degree as a need grant recipient, except that a student may earn two associate degrees concurrently. Qualifications for renewal will include maintaining satisfactory academic ((~~standing~~)) progress toward completion of ((~~the course of study, and continued eligibility~~)) an eligible program as determined by the ((~~commission~~)) board. Should the recipient terminate his or her enrollment for any reason during the academic year, the unused portion of the grant shall be returned to the state educational grant fund by the institution according to the institution's own policy for issuing refunds, except as provided in RCW 28B.10.8081.

(4) In computing financial need, the ((~~commission~~)) board shall determine a maximum student expense budget allowance, not to exceed an amount equal to the total maximum student expense budget at the public institutions plus the current average state appropriation per student for operating expense in the public institutions.

Sec. 6. RCW 28B.10.810 and 1989 c 254 s 5 are each amended to read as follows:

For a student to be eligible for ((~~financial aid the~~)) a state need grant a student must:

(1) Be a "needy student" or "disadvantaged student" as determined by the ((~~commission~~)) board in accordance with RCW 28B.10.802 (3) and (4).

(2) Have been domiciled within the state of Washington for at least one year.

(3) Be enrolled or accepted for enrollment on at least a half-time basis at an institution of higher education in Washington as defined in RCW 28B.10.802(1).

(4) Have complied with all the rules and regulations adopted by the ((~~commission~~)) board for the administration of RCW 28B.10.800 through 28B.10.824.

Sec. 7. RCW 28B.10.822 and 1973 c 62 s 4 are each amended to read as follows:

The ((~~commission~~)) board shall adopt rules ((~~and regulations~~)) as may be necessary or appropriate for effecting the provisions of RCW 28B.10.800 through 28B.10.824 and section 1 of this act, and not in conflict with RCW 28B.10.800 through 28B.10.824, in accordance with the provisions of chapter 34.05 RCW, the ((~~state higher education~~)) administrative procedure act.