AN ACT Relating to tuition setting authority, tuition levels, tuition waivers, and the use of tuition in higher education; amending RCW 28B.15.031, 28B.15.067, 28B.15.069, 28B.15.910, and 28B.15.100; and repealing RCW 28B.15.066.

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

Sec. 1. RCW 28B.15.031 and 1996 c 142 s 2 are each 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, technology 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. 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 a minimum of three 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. 2. RCW 28B.15.067 and 1997 c 403 s 1 are each amended to read as follows:

(1) Tuition fees shall be established under the provisions of this chapter.

(2) ((~~Academic year tuition for full-time students at the state's institutions of higher education for the 1997-98 academic year, other than the summer term, shall be as provided in this subsection.~~

~~(a) At the University of Washington and Washington State University:~~

~~(i) For resident undergraduate students and other resident students not in graduate, law, or first professional programs, two thousand nine hundred eighty-eight dollars;~~

(ii)(A) For nonresident undergraduate students and other nonresident students at the University of Washington not in graduate, law, or first professional programs, ten thousand two hundred seventy-eight dollars;

~~(B) For nonresident undergraduate students and other nonresident students at Washington State University not in graduate or first professional programs, nine thousand eight hundred seventy dollars;~~

~~(iii) For resident graduate students, four thousand eight hundred fifty-four dollars;~~

~~(iv) For nonresident graduate students, twelve thousand five hundred eighty-eight dollars;~~

~~(v) For resident law students, five thousand ten dollars;~~

~~(vi) For nonresident law students, twelve thousand nine hundred fifteen dollars;~~

~~(vii) For resident first professional students, eight thousand one hundred twelve dollars; and~~

~~(viii) For nonresident first professional students, twenty-one thousand twenty-four dollars.~~

~~(b) At the regional universities and The Evergreen State College:~~

~~(i) For resident undergraduate and all other resident students not in graduate programs, two thousand two hundred eleven dollars;~~

~~(ii) For nonresident undergraduate and all other nonresident students not in graduate programs, eight thousand six hundred forty-six dollars;~~

~~(iii) For resident graduate students, three thousand seven hundred twenty-six dollars; and~~

~~(iv) For nonresident graduate students, eleven thousand nine hundred seventy-six dollars.~~

~~(c) At the community colleges:~~

~~(i) For resident students, one thousand three hundred eleven dollars; and~~

~~(ii) For nonresident students, five thousand five hundred eighty-six dollars.~~

~~(3)~~)) Academic year tuition for full-time students at the state's institutions of higher education beginning with the 1998-99 academic year, other than the summer term, shall be as provided in this subsection unless different rates are adopted in the omnibus appropriations act.

(a) At the University of Washington and Washington State University:

(i) For resident undergraduate students and other resident students not in graduate, law, or first professional programs, three thousand one hundred eight dollars;

(ii)(A) For nonresident undergraduate students and other nonresident students at the University of Washington not in graduate, law, or first professional programs, eleven thousand one hundred thirty dollars;

(B) For nonresident undergraduate students and other nonresident students at Washington State University not in graduate or first professional programs, ten thousand two hundred sixty-six dollars;

(iii) For resident graduate students, five thousand forty-six dollars;

(iv) For nonresident graduate students, thirteen thousand ninety-two dollars;

(v) For resident law students, five thousand three hundred seventy-six dollars;

(vi) For nonresident law students, thirteen thousand seven hundred eighty-two dollars;

(vii) For resident first professional students, eight thousand four hundred thirty-six dollars; and

(viii) For nonresident first professional students, twenty-one thousand eight hundred sixty-four dollars.

(b) At the regional universities and The Evergreen State College:

(i) For resident undergraduate and all other resident students not in graduate programs, two thousand two hundred ninety-eight dollars;

(ii) For nonresident undergraduate and all other nonresident students not in graduate programs, eight thousand nine hundred ninety-one dollars;

(iii) For resident graduate students, three thousand eight hundred seventy-six dollars; and

(iv) For nonresident graduate students, twelve thousand four hundred fifty-six dollars.

(i) For resident students, one thousand three hundred sixty-two dollars; and

(ii) For nonresident students, five thousand eight hundred eight dollars.

(((4) For the 1997-98 and 1998-99 academic years, the University of Washington shall use at least ten percent of the revenue received from the difference between a four percent increase in tuition fees and the actual increase charged to law students to assist needy low and middle-income resident law students. For the 1997-98 and 1998-99 academic years, the University of Washington shall use at least ten percent of the revenue received from the difference between a four percent increase in tuition fees and the actual increase charged to nonresident undergraduate students and all other nonresident students not in graduate, law, or first professional programs to assist needy low and middle-income resident undergraduate students and all other resident students not enrolled in graduate, law, or first professional programs. This requirement is in addition to the deposit requirements of the institutional aid fund under RCW 28B.15.820.

~~(5)~~)) (3)(a) Beginning with the 2002-03 academic year and ending with the 2007-08 academic year, the governing boards of the state universities, the regional universities, The Evergreen State College, and the state board for community and technical colleges may reduce or increase full-time tuition fees for all students other than resident undergraduates. Percentage increases in full-time tuition fees may exceed the fiscal growth factor under chapter 43.135 RCW. Tuition fees for resident graduate and professional degree students shall not increase by more than ten percent a year. Tuition fees for resident law students for the 2002-03 academic year shall not increase by more than twenty-two percent and in subsequent academic years ending in 2007-08, shall not increase by more than ten percent a year. Tuition fees for resident, graduate business degree students for the 2002-03 academic year shall not increase by more than thirty percent and in subsequent academic years ending in 2007-08, shall not increase by more than ten percent a year. Reductions or increases may be made for all or portions of an institution's programs, campuses, courses, or students. The governing boards and the state board may adjust full-time tuition fees for factors that include time of day and day of week, delivery method, and campus to encourage full use of the state's educational facilities and resources.

(b) Pursuant to RCW 43.135.055, state colleges and universities receiving general fund appropriations as part of the omnibus appropriations act may increase summer term tuition in excess of the fiscal growth factor. Tuition levels increased under this subsection shall not exceed the per credit hour rate calculated from the academic year tuition levels for all students, including resident undergraduates.

(c) An amount equal to at least three and one-half percent of revenue received as a result of the difference in percentage rate of increase in resident graduate, law, and first professional tuition fees over the percentage rate of increase in resident undergraduate tuition fees must be used by the state universities, the regional universities, and The Evergreen State College to assist those resident graduate, law, and first professional degree students with demonstrated financial need and family income below the median for Washington state, to the extent that funds are available under this subsection. This requirement is in addition to the deposit requirements of the institutional financial aid fund under RCW 28B.15.820, but does not create an entitlement to financial aid.

(4) Academic year tuition for full-time students at the state's institutions of higher education beginning with the 2008-09 academic year, other than summer term, shall be as charged during the 2007-08 academic year unless different rates are adopted in the omnibus appropriations act.

(5) The tuition fees established under this chapter shall not apply to high school students enrolling in participating institutions of higher education under RCW 28A.600.300 through ((~~28A.600.395~~)) 28A.600.400.

Sec. 3. RCW 28B.15.069 and 1997 c 403 s 2 are each amended to read as follows:

(1) ((~~As used in this section, each of the following subsections is a separate tuition category:~~

~~(a) Resident undergraduate students and all other resident students not in first professional, graduate, or law programs;~~

~~(b) Nonresident undergraduate students and all other nonresident students not in first professional graduate or law programs;~~

~~(c) Resident graduate students;~~

~~(d) Resident law students;~~

~~(e) Nonresident graduate students;~~

~~(f) Nonresident law students;~~

~~(g) Resident first professional students; and~~

~~(h) Nonresident first professional students.~~

(2) Unless the context clearly requires otherwise, as used in this section "first professional programs" means programs leading to one of the following degrees: Doctor of medicine, doctor of dental surgery, or doctor of veterinary medicine.

~~(3)~~)) The building fee for each academic year shall be a percentage of total tuition fees. This percentage shall be calculated by the higher education coordinating board and be based on the actual percentage the building fee is of total tuition for each tuition category in the 1994-95 academic year, rounded up to the nearest half percent.

((~~(4)~~)) (2) The governing boards of each institution of higher education, except for the technical colleges, shall charge to and collect from each student a services and activities fee. A 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 student tuition fees for ((~~the applicable tuition category~~)) resident undergraduate students: 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. These rate adjustments may exceed the fiscal growth factor under chapter 43.135 RCW. For the 2003-04 academic year, the services and activities fee shall be based upon the resident undergraduate services and activities fee in 2002-03. 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.

((~~(5)~~)) (3) Tuition and services and activities fees consistent with subsection ((~~(4)~~)) (2) of this section shall be set by the state board for community and technical colleges for community college summer school students unless the community college charges fees in accordance with RCW 28B.15.515.

((~~(6)~~)) (4) Subject to the limitations of RCW 28B.15.910, each governing board of a community college may charge such fees for ungraded courses, noncredit courses, community services courses, and self‑supporting courses as it, in its discretion, may determine, consistent with the rules of the state board for community and technical colleges.

Sec. 4. RCW 28B.15.910 and 2000 c 152 s 3 are each amended to read as follows:

(1) For the purpose of providing state general fund support to public institutions of higher education, except for revenue waived under programs listed in subsections (3) and (4) of this section, and unless otherwise expressly provided in the omnibus state appropriations act, the total amount of operating fees revenue waived, exempted, or reduced by a state university, a regional university, The Evergreen State College, or the community colleges as a whole, shall not exceed the percentage of total gross authorized operating fees revenue in this subsection. As used in this section, "gross authorized operating fees revenue" means the estimated gross operating fees revenue as estimated under RCW 82.33.020 or as revised by the office of financial management, before granting any waivers. This limitation applies to all tuition waiver programs established before or after July 1, 1992.

(a) University of Washington 21 percent

(b) Washington State University 20 percent

(d) Central Washington University 8 percent

(e) Western Washington University 10 percent

(f) The Evergreen State College 6 percent

(g) Community colleges as a whole 35 percent

(2) The limitations in subsection (1) of this section apply to waivers, exemptions, or reductions in operating fees contained in the following:

(a) RCW 28B.10.265;

(b) RCW 28B.15.014;

(d) RCW 28B.15.225;

(e) RCW 28B.15.380;

(f) RCW 28B.15.520;

(g) RCW 28B.15.526;

(h) RCW 28B.15.527;

(i) RCW 28B.15.543;

(j) RCW 28B.15.545;

(k) RCW 28B.15.555;

(l) RCW 28B.15.556;

(m) RCW 28B.15.615;

(n) RCW 28B.15.620;

(o) RCW 28B.15.628;

(p) RCW 28B.15.730;

(q) RCW 28B.15.740;

(r) RCW 28B.15.750;

(s) RCW 28B.15.756;

(t) RCW 28B.50.259; and

(u) RCW 28B.70.050((;

~~(v) RCW 28B.80.580; and~~

~~(w) During the 1997-99 fiscal biennium, the western interstate commission for higher education undergraduate exchange program for students attending Eastern Washington University~~)).

(3) The limitations in subsection (1) of this section do not apply to waivers, exemptions, or reductions in services and activities fees contained in the following:

(a) RCW 28B.15.522;

(b) RCW 28B.15.540; and

(4) The total amount of operating fees revenue waived, exempted, or reduced by institutions of higher education participating in the western interstate commission for higher education western undergraduate exchange program under RCW 28B.15.544 shall not exceed the percentage of total gross authorized operating fees revenue in this subsection.

(a) Washington State University 1 percent

(b) Eastern Washington University 3 percent

(5) The general fund state appropriation shall not be reduced by the amount of operating fees revenue collected as a result of waiving less operating fees revenue than the amounts authorized under this section. State general fund appropriations shall not be provided for revenue forgone as a result of or for waivers granted under RCW 28B.15.915.

Sec. 5. RCW 28B.15.100 and 1999 c 321 s 2 are each amended to read as follows:

(1) The governing boards of the state universities, the regional universities, The Evergreen State College, and the community colleges shall charge to and collect from each of the students registering at the particular institution for any quarter or semester such tuition fees and services and activities fees, and other fees as such board shall in its discretion determine. The total of all fees shall be rounded to the nearest whole dollar amount: PROVIDED, That such tuition fees ((~~for other than the summer term~~)) shall be ((~~in the amounts for the respective institutions as otherwise set forth in~~)) established in accordance with RCW 28B.15.067.

(2) Part-time students shall be charged tuition and services and activities fees proportionate to full-time student rates established for residents and nonresidents: PROVIDED, That except for students registered at community colleges, students registered for fewer than two credit hours shall be charged tuition and services and activities fees at the rate established for two credit hours: PROVIDED FURTHER, That, subject to the limitations of RCW 28B.15.910, residents of Idaho or Oregon who are enrolled in community college district number twenty for six or fewer credits during any quarter or semester may be exempted from payment of all or a portion of the nonresident tuition fees differential upon a declaration by the higher education coordinating board that it finds Washington residents from the community college district are afforded substantially equivalent treatment by such other states.

(3) Full-time students registered for more than eighteen credit hours shall be charged an additional operating fee for each credit hour in excess of eighteen hours at the applicable established per credit hour tuition fee rate for part-time students: PROVIDED, That, subject to the limitations of RCW 28B.15.910, the governing boards of the state universities and the community colleges may exempt all or a portion of the additional charge, for students who are registered exclusively in first professional programs in medicine, dental medicine, veterinary medicine, doctor of pharmacy, or law, or who are registered exclusively in required courses in vocational preparatory programs.

NEW SECTION. Sec. 6. RCW 28B.15.066 (General fund appropriations to institutions of higher education) and 2000 c 152 s 2, 1999 c 309 s 932, 1995 1st sp.s. c 9 s 3, & 1993 c 379 s 205 are each repealed.