BILL REQ. #:  S-1443.3 

Read first time 03/05/2003.   Referred to Committee on Higher Education.

     AN ACT Relating to higher education; amending RCW 28B.04.030, 28B.04.040, 28B.04.050, 28B.04.060, 28B.04.080, 28B.04.110, 28B.10.215, 28B.10.220, 28B.10.802, 28B.12.030, 28B.12.040, 28B.12.050, 28B.12.060, 28B.12.060, 28B.12.070, 28B.15.760, 28B.15.762, 28B.15.764, 28B.80.360, 28B.85.010, 28B.85.020, 28B.85.030, 28B.85.040, 28B.85.050, 28B.85.060, 28B.85.070, 28B.85.080, 28B.85.090, 28B.85.100, 28B.85.130, and 28B.85.170; adding a new section to chapter 28B.80 RCW; adding a new chapter to Title 28B RCW; repealing RCW 28B.80.240; providing effective dates; providing an expiration date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The legislature finds that there is a need to remove certain administrative programs from the jurisdiction of the higher education coordinating board in order to enable the board to concentrate on its policy and planning responsibilities. The legislature also finds that centralizing postsecondary education administrative functions within one agency will facilitate communication, cooperation, and the efficient use of public resources. The legislature intends to create a student financial aid and scholarship commission to administer postsecondary education programs assigned to the commission by the governor or the legislature.

NEW SECTION.  Sec. 2   The student financial aid and scholarship commission is established. The commission shall administer assigned educational responsibilities in cooperation and consultation with students, faculty, administrators, displaced homemakers, public and private educational institutions, the higher education coordinating board, the superintendent of public instruction, the council of presidents, the state board for community and technical colleges, and the Washington friends of higher education.

NEW SECTION.  Sec. 3   The student financial aid and scholarship commission has the following powers and duties:
     (1) To administer the functions relating to the displaced homemaker program under RCW 28B.04.010 through 28B.04.120;
     (2) To administer the program for approval of degree-granting institutions under chapter 28B.85 RCW;
     (3) To administer the blind student assistance program under RCW 28B.10.215 and 28B.10.220;
     (4) To administer the Washington scholars' program under RCW 28A.600.100 through 28A.600.150;
     (5) To administer any state program or state-administered federal program of student financial aid, including:
     (a) Programs under RCW 28B.10.790 through 28B.10.824;
     (b) The work-study program under chapter 28B.12 RCW; and
     (c) The mathematics and science teacher loan program under RCW 28B.15.760 through 28B.15.766;
     (6) To receive and expend public and private funds;
     (7) To adopt necessary rules and bylaws;
     (8) To appoint necessary advisory committees;
     (9) To administer other programs or functions assigned by law or the appropriate authority;
     (10) To facilitate and promote cooperation among all segments of education involved in the commission's programs;
     (11) To administer their programs in a manner consistent with the policies adopted by the higher education coordinating board in a comprehensive master plan;
     (12) To encourage and stimulate the establishment of financial aid and scholarship programs by corporations, community organizations, foundations, and other private agencies; and
     (13) To collect and disseminate information pertaining to all types of available financial assistance.

NEW SECTION.  Sec. 4   (1) The director of the student financial aid and scholarship commission shall be appointed by the governor with the confirmation of the senate and shall serve at the pleasure of the governor.
     (2) The director shall be paid a salary fixed by the governor under RCW 43.03.040.
     (3) The director may appoint such clerical and other assistants as may be necessary to carry on the work of the commission and may deputize one or more such assistants to perform duties in the name of the director.

NEW SECTION.  Sec. 5   The director shall appoint a financial aid advisory committee to advise the commission on rules proposed for financial aid programs, program implementation, research projects, and student needs. The committee shall include a financial aid professional or representatives from: The community and technical colleges, four-year institutions of higher education, private institutions of higher education, a student currently enrolled full time at any institution of higher education and who is a recipient of financial aid, and other financial aid constituencies at the option of the commission. Committee members shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

Sec. 6   RCW 28B.04.030 and 1985 c 370 s 37 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) (("Board" means the higher education coordinating board)) "Commission" means the student financial aid and scholarship commission.
     (2) "Center" means a multipurpose service center for displaced homemakers as described in RCW 28B.04.040.
     (3) "Program" means those programs described in RCW 28B.04.050 which provide direct, outreach, and information and training services which serve the needs of displaced homemakers.
     (4) "Displaced homemaker" means an individual who:
     (a) Has worked in the home for ten or more years providing unsalaried household services for family members on a full-time basis; and
     (b) Is not gainfully employed;
     (c) Needs assistance in securing employment; and
     (d) Has been dependent on the income of another family member but is no longer supported by that income, or has been dependent on federal assistance but is no longer eligible for that assistance, or is supported as the parent of minor children by public assistance or spousal support but whose children are within two years of reaching their majority.

Sec. 7   RCW 28B.04.040 and 1985 c 370 s 38 are each amended to read as follows:
     (1) The ((board)) commission, in consultation with state and local governmental agencies, community groups, and local and national organizations concerned with displaced homemakers, shall receive applications and may contract with public or private nonprofit organizations to establish multipurpose service centers for displaced homemakers. In determining sites and administering agencies or organizations for the centers, the ((board)) commission shall consider the experience and capabilities of the public or private nonprofit organizations making application to provide services to a center.
     (2) The ((board)) commission shall issue rules prescribing the standards to be met by each center in accordance with the policies set forth in this chapter. Continuing funds for the maintenance of each center shall be contingent upon the determination by the ((board)) commission that the center is in compliance with the contractual conditions and with the rules prescribed by the ((board)) commission.

Sec. 8   RCW 28B.04.050 and 1985 c 370 s 39 are each amended to read as follows:
     (1) Each center contracted for under this chapter shall include or provide information and referral to the following services:
     (a) Job counseling services which shall:
     (i) Be specifically designed for displaced homemakers;
     (ii) Counsel displaced homemakers with respect to appropriate job opportunities; and
     (iii) Take into account and build upon the skills and experience of a homemaker and emphasize job readiness as well as skill development;
     (b) Job training and job placement services which shall:
     (i) Emphasize short-term training programs and programs which expand upon homemaking skills and volunteer experience and which lead to gainful employment;
     (ii) Develop, through cooperation with state and local government agencies and private employers, model training and placement programs for jobs in the public and private sectors;
     (iii) Assist displaced homemakers in gaining admission to existing public and private job training programs and opportunities, including vocational education and apprenticeship training programs; and
     (iv) Assist in identifying community needs and creating new jobs in the public and private sectors;
     (c) Health counseling services, including referral to existing health programs, with respect to:
     (i) General principles of preventative health care;
     (ii) Health care consumer education, particularly in the selection of physicians and health care services, including, but not limited to, health maintenance organizations and health insurance;
     (iii) Family health care and nutrition;
     (iv) Alcohol and drug abuse; and
     (v) Other related health care matters;
     (d) Financial management services which provide information and assistance with respect to insurance, taxes, estate and probate problems, mortgages, loans, and other related financial matters;
     (e) Educational services, including:
     (i) Outreach and information about courses offering credit through secondary or postsecondary education programs, and other re-entry programs, including bilingual programming where appropriate; and
     (ii) Information about such other programs as are determined to be of interest and benefit to displaced homemakers by the ((board)) commission;
     (f) Legal counseling and referral services; and
     (g) Outreach and information services with respect to federal and state employment, education, health, public assistance, and unemployment assistance programs which the ((board)) commission determines would be of interest and benefit to displaced homemakers.
     (2) The staff positions of each multipurpose center contracted for in accordance with RCW 28B.04.040, including supervisory, technical, and administrative positions, shall, to the maximum extent possible, be filled by displaced homemakers.

Sec. 9   RCW 28B.04.060 and 1985 c 370 s 40 are each amended to read as follows:
     The ((board)) commission may contract, where appropriate, with public or private nonprofit groups or organizations serving the needs of displaced homemakers for programs designed to:
     (1) Provide direct services to displaced homemakers, including job counseling, job training and placement, health counseling, financial management, educational counseling, legal counseling, and referral services as described in RCW 28B.04.050;
     (2) Provide statewide outreach and information services for displaced homemakers; and
     (3) Provide training opportunities for persons serving the needs of displaced homemakers, including those persons in areas not directly served by programs and centers established under this chapter.

Sec. 10   RCW 28B.04.080 and 1985 c 370 s 42 are each amended to read as follows:
     (1) The ((board)) commission shall consult and cooperate with the department of social and health services; the state board for community and technical colleges ((education)); the superintendent of public instruction; ((the commission for vocational education;)) the employment security department; the department of labor and industries; sponsoring agencies under the federal comprehensive employment and training act (87 Stat. 839; 29 U.S.C. Sec. 801 et seq.), and any other persons or agencies as the ((board)) commission deems appropriate to facilitate the coordination of centers established under this chapter with existing programs of a similar nature.
     (2) Annually on July 1st, each agency listed in subsection (1) of this section shall submit a description of each service or program under its jurisdiction which would support the programs and centers established by this chapter and the funds available for such support.
     (3) The ((board)) commission shall serve as a clearinghouse for displaced homemaker information and resources and shall compile and disseminate statewide information to the centers, related agencies, and interested persons upon request.

Sec. 11   RCW 28B.04.110 and 1985 c 370 s 43 are each amended to read as follows:
     The ((board)) commission may, in carrying out this chapter, accept, use, and dispose of contributions of money, services, and property: PROVIDED, That funds generated within individual centers may be retained and utilized by those centers. All moneys received by the ((board)) commission or any employee thereof pursuant to this section shall be deposited in a depository approved by the state treasurer. Disbursements of such funds shall be on authorization of the ((board)) commission or a duly authorized representative thereof. In order to maintain an effective expenditure and revenue control such funds shall be subject in all respects to chapter 43.88 RCW, but no appropriation shall be required to permit expenditure of such funds.

Sec. 12   RCW 28B.10.215 and 1985 c 370 s 51 are each amended to read as follows:
     There is allocated to each and every blind student attending any institution of higher education within the state a sum not to exceed two hundred dollars per quarter, or so much thereof as may be necessary in the opinion of the ((higher education coordinating board)) student financial aid and scholarship commission in the state of Washington, to provide said blind student with readers, books, recordings, recorders, or other means of reproducing and imparting ideas, while attending said institution of higher education: PROVIDED, That said allocation shall be made out of any moneys in the general fund not otherwise appropriated.

Sec. 13   RCW 28B.10.220 and 1985 c 370 s 52 are each amended to read as follows:
     All blind student assistance shall be distributed under the supervision of the ((higher education coordinating board)) student financial aid and scholarship commission in the state of Washington. The moneys or any part thereof allocated in the manner referred to in RCW 28B.10.215 shall, for furnishing said books or equipment or supplying said services, be paid by ((said board)) the commission directly to the state institution of higher education, directly to such blind student, heretofore mentioned, or to the student's parents, guardian, or some adult person, if the blind student is a minor, designated by said blind student to act as trustee of said funds, as shall be determined by the ((board)) commission.
     The ((board)) commission shall have power to prescribe and enforce all rules ((and regulations)) necessary to carry out the provisions of this section and RCW 28B.10.215.

Sec. 14   RCW 28B.10.802 and 2002 c 187 s 1 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)])) (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)])) (b) 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, or a branch of a member institution of an accrediting association recognized by rule of the board for purposes of this section, that is eligible for federal student financial aid assistance and has operated as a nonprofit college or university delivering on-site classroom instruction for a minimum of twenty consecutive years within the state of Washington, and has an annual enrollment of at least seven hundred full-time equivalent students: 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)) student financial aid and scholarship commission.

Sec. 15   RCW 28B.12.030 and 2002 c 187 s 2 are each amended to read as follows:
     As used in this chapter, the following words and terms shall have the following meanings, unless the context shall clearly indicate another or different meaning or intent:
     (1) The term "needy student" shall mean a student enrolled or accepted for enrollment at a postsecondary institution who, according to a system of need analysis approved by the ((higher education coordinating board)) student financial aid and scholarship commission, demonstrates a financial inability, either parental, familial, or personal, to bear the total cost of education for any semester or quarter.
     (2) The term "eligible institution" shall mean any postsecondary institution in this state accredited by the Northwest Association of Schools and Colleges, or a branch of a member institution of an accrediting association recognized by rule of the board for purposes of this section, that is eligible for federal student financial aid assistance and has operated as a nonprofit college or university delivering on-site classroom instruction for a minimum of twenty consecutive years within the state of Washington, or any public technical college in the state.

Sec. 16   RCW 28B.12.040 and 1994 c 130 s 4 are each amended to read as follows:
     With the assistance of an advisory committee, the ((higher education coordinating board)) student financial aid and scholarship commission shall develop and administer the state work-study program. The ((board)) commission shall be authorized to enter into agreements with employers and eligible institutions for the operation of the program. These agreements shall include such provisions as the ((higher education coordinating board)) commission may deem necessary or appropriate to carry out the purposes of this chapter.
     The members of the work-study advisory committee may include, but need not be limited to representatives of public and private community colleges, technical colleges, and four-year institutions of higher education; vocational schools; students; community service organizations; public schools; business; and labor. When selecting members of the advisory committee, the ((board)) student financial aid and scholarship commission shall consult with institutions of higher education, the state board for community and technical colleges, the work force training and education coordinating board, and appropriate associations and organizations. With the exception of off-campus community service placements, the share from moneys disbursed under the state work-study program of the compensation of students employed under such program in accordance with such agreements shall not exceed eighty percent of the total such compensation paid such students.
     By rule, the ((board)) student financial aid and scholarship commission shall define community service placements and may determine any salary matching requirements for any community service employers.

Sec. 17   RCW 28B.12.050 and 1994 c 130 s 5 are each amended to read as follows:
     The ((higher education coordinating board)) student financial aid and scholarship commission shall disburse state work-study funds. In performing its duties under this section, the ((board)) student financial aid and scholarship commission shall consult eligible institutions and postsecondary education advisory and governing bodies. The ((board)) student financial aid and scholarship commission shall establish criteria designed to achieve such distribution of assistance under this chapter among students attending eligible institutions as will most effectively carry out the purposes of this chapter.

Sec. 18   RCW 28B.12.060 and 1994 c 130 s 6 are each amended to read as follows:
     The ((higher education coordinating board)) student financial aid and scholarship commission shall adopt rules as may be necessary or appropriate for effecting the provisions of this chapter, and not in conflict with this chapter, in accordance with the provisions of chapter 34.05 RCW, the state higher education administrative procedure act. Such rules shall include provisions designed to make employment under the work-study program reasonably available, to the extent of available funds, to all eligible students in eligible postsecondary institutions in need thereof. The rules shall include:
     (1) Providing work under the state work-study program that will not result in the displacement of employed workers or impair existing contracts for services;
     (2) Furnishing work only to a student who:
     (a) Is capable, in the opinion of the eligible institution, of maintaining good standing in such course of study while employed under the program covered by the agreement; and
     (b) Has been accepted for enrollment as at least a half-time student at the eligible institution or, in the case of a student already enrolled in and attending the eligible institution, is in good standing and in at least half-time attendance there either as an undergraduate, graduate or professional student; and
     (c) Is not pursuing a degree in theology;
     (3) Placing priority on providing:
     (a) Work opportunities for students who are residents of the state of Washington as defined in RCW 28B.15.012 and 28B.15.013 except resident students defined in RCW 28B.15.012(2)(((e))) (f);
     (b) Job placements in fields related to each student's academic or vocational pursuits, with an emphasis on off-campus job placements whenever appropriate; and
     (c) Off-campus community service placements;
     (4) Provisions to assure that in the state institutions of higher education, utilization of this work-study program:
     (a) Shall only supplement and not supplant classified positions under jurisdiction of chapter 41.06 RCW;
     (b) That all positions established which are comparable shall be identified to a job classification under the Washington personnel resources board's classification plan and shall receive equal compensation;
     (c) Shall not take place in any manner that would replace classified positions reduced due to lack of funds or work; and
     (d) That work study positions shall only be established at entry level positions of the classified service unless the overall scope and responsibilities of the position indicate a higher level; and
     (5) Provisions to encourage job placements in occupations that meet Washington's economic development goals, especially those in international trade and international relations. The ((board)) student financial aid and scholarship commission shall permit appropriate job placements in other states and other countries.

Sec. 19   RCW 28B.12.060 and 2002 c 354 s 224 are each amended to read as follows:
     The ((higher education coordinating board)) student financial aid and scholarship commission shall adopt rules as may be necessary or appropriate for effecting the provisions of this chapter, and not in conflict with this chapter, in accordance with the provisions of chapter 34.05 RCW, the state higher education administrative procedure act. Such rules shall include provisions designed to make employment under the work-study program reasonably available, to the extent of available funds, to all eligible students in eligible postsecondary institutions in need thereof. The rules shall include:
     (1) Providing work under the state work-study program that will not result in the displacement of employed workers or impair existing contracts for services;
     (2) Furnishing work only to a student who:
     (a) Is capable, in the opinion of the eligible institution, of maintaining good standing in such course of study while employed under the program covered by the agreement; and
     (b) Has been accepted for enrollment as at least a half-time student at the eligible institution or, in the case of a student already enrolled in and attending the eligible institution, is in good standing and in at least half-time attendance there either as an undergraduate, graduate or professional student; and
     (c) Is not pursuing a degree in theology;
     (3) Placing priority on providing:
     (a) Work opportunities for students who are residents of the state of Washington as defined in RCW 28B.15.012 and 28B.15.013 except resident students defined in RCW 28B.15.012(2)(f);
     (b) Job placements in fields related to each student's academic or vocational pursuits, with an emphasis on off-campus job placements whenever appropriate; and
     (c) Off-campus community service placements;
     (4) Provisions to assure that in the state institutions of higher education, utilization of this work-study program:
     (a) Shall only supplement and not supplant classified positions under jurisdiction of chapter 41.06 RCW;
     (b) That all positions established which are comparable shall be identified to a job classification under the director of personnel's classification plan and shall receive equal compensation;
     (c) Shall not take place in any manner that would replace classified positions reduced due to lack of funds or work; and
     (d) That work study positions shall only be established at entry level positions of the classified service unless the overall scope and responsibilities of the position indicate a higher level; and
     (5) Provisions to encourage job placements in occupations that meet Washington's economic development goals, especially those in international trade and international relations. The ((board)) student financial aid and scholarship commission shall permit appropriate job placements in other states and other countries.

Sec. 20   RCW 28B.12.070 and 1994 c 130 s 7 are each amended to read as follows:
     Each eligible institution shall submit to the ((higher education coordinating board)) student financial aid and scholarship commission an annual report in accordance with such requirements as are adopted by the ((board)) commission.

Sec. 21   RCW 28B.15.760 and 1985 c 370 s 79 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 28B.15.762 and 28B.15.764.
     (1) "Institution of higher education" or "institution" means a college or university in the state of Washington which is a member institution of an accrediting association recognized as such by rule of the higher education coordinating board.
     (2) (("Board" means the higher education coordinating board)) "Commission" means the student financial aid and scholarship commission.
     (3) "Eligible student" means a student registered for at least ten credit hours or the equivalent and demonstrates achievement of a 3.00 grade point average for each academic year, who is a resident student as defined by RCW 28B.15.012 through 28B.15.015, who is a "needy student" as defined in RCW 28B.10.802, and who has a declared major in a program leading to a degree in teacher education in a field of science or mathematics, or a certificated teacher who meets the same credit hour and "needy student" requirements and is seeking an additional degree in science or mathematics.
     (4) "Public school" means a middle school, junior high school, or high school within the public school system referred to in Article IX of the state Constitution.
     (5) "Forgiven" or "to forgive" means to collect service as a teacher in a field of science or mathematics at a public school in the state of Washington in lieu of monetary payment.
     (6) "Satisfied" means paid-in-full.
     (7) "Borrower" means an eligible student who has received a loan under RCW 28B.15.762.

Sec. 22   RCW 28B.15.762 and 1996 c 107 s 2 are each amended to read as follows:
     (1) The ((board)) commission may make long-term loans to eligible students at institutions of higher education from the funds appropriated to the ((board)) commission for this purpose. The amount of any such loan shall not exceed the demonstrated financial need of the student or two thousand five hundred dollars for each academic year whichever is less, and the total amount of such loans to an eligible student shall not exceed ten thousand dollars. The interest rates and terms of deferral of such loans shall be consistent with the terms of the guaranteed loan program established by 20 U.S.C. Sec. 1701 et seq. The period for repaying the loan principal and interest shall be ten years with payments accruing quarterly commencing nine months from the date the borrower graduated. The entire principal and interest of each loan payment shall be forgiven for each payment period in which the borrower teaches science or mathematics in a public school in this state until the entire loan is satisfied or the borrower ceases to teach science or mathematics at a public school in this state. Should the borrower cease to teach science or mathematics at a public school in this state before the time in which the principal and interest on the loan are satisfied, payments on the unsatisfied portion of the principal and interest on the loan shall begin the next payment period and continue until the remainder of the loan is paid.
     (2) The ((board)) commission is responsible for collection of loans made under subsection (1) of this section and shall exercise due diligence in such collection, maintaining all necessary records to insure that maximum repayments are made. Collection and servicing of loans under subsection (1) of this section shall be pursued using the full extent of the law, including wage garnishment if necessary, and shall be performed by entities approved for such servicing by the Washington student loan guaranty association or its successor agency. The ((board)) commission is responsible to forgive all or parts of such loans under the criteria established in subsection (1) of this section and shall maintain all necessary records of forgiven payments.
     (3) Receipts from the payment of principal or interest or any other subsidies to which the ((board)) commission as lender is entitled, which are paid by or on behalf of borrowers under subsection (1) of this section, shall be deposited with the ((higher education coordinating board)) commission and shall be used to cover the costs of making the loans under subsection (1) of this section, maintaining necessary records, and making collections under subsection (2) of this section. The ((board)) commission shall maintain accurate records of these costs, and all receipts beyond those necessary to pay such costs shall be used to make loans to eligible students.
     (4) Any funds not used to make loans, or to cover the cost of making loans or making collections, shall be placed in the state educational trust fund for needy or disadvantaged students.
     (5) The ((board)) commission shall adopt necessary rules to implement this section.

Sec. 23   RCW 28B.15.764 and 1985 c 370 s 81 are each amended to read as follows:
     The ((board)) commission and institutions of higher education shall work cooperatively to implement RCW 28B.15.762 and to publicize this program to eligible students.

Sec. 24   RCW 28B.80.360 and 1998 c 245 s 24 are each amended to read as follows:
     The board shall perform the following administrative responsibilities:
     (1) Administer the programs set forth in the following statutes: RCW 28A.600.100 through 28A.600.150 (Washington scholars); ((chapter 28B.04 RCW (displaced homemakers); chapter 28B.85 RCW (degree-granting institutions); RCW 28B.10.210 through 28B.10.220 (blind students subsidy); RCW 28B.10.800 through 28B.10.824 (student financial aid program); chapter 28B.12 RCW (work study);)) RCW 28B.15.067 (establishing tuition and fees); RCW 28B.15.543 (tuition waivers for Washington scholars); ((RCW 28B.15.760 through 28B.15.766 (math and science loans);)) RCW 28B.80.150 through 28B.80.170 (student exchange compact); ((RCW 28B.80.240 (student aid programs);)) and RCW 28B.80.210 (federal programs).
     (2) Study the delegation of the administration of the following: RCW 28B.65.040 through 28B.65.060 (high-technology board); ((chapter 28B.85 RCW (degree-granting institutions);)) RCW 28B.80.150 through 28B.80.170 (student exchange compact programs); RCW 28B.80.200 (state commission for federal law purposes); RCW 28B.80.210 (enumerated federal programs); RCW 28B.80.230 (receipt of federal funds); ((RCW 28B.80.240 (student financial aid programs);)) RCW 28A.600.120 through 28A.600.150 (Washington scholars); RCW 28B.15.543 (Washington scholars); ((RCW 28B.04.020 through 28B.04.110 (displaced homemakers);)) RCW 28B.10.215 and 28B.10.220 (blind students); RCW 28B.10.790((,)) and 28B.10.792((, and 28B.10.802 through 28B.10.844)) (student financial aid); ((RCW 28B.12.040 through 28B.12.070 (student work study);)) RCW 28B.15.100 (reciprocity agreement); RCW 28B.15.730 through 28B.15.736 (Oregon reciprocity); RCW 28B.15.750 through 28B.15.754 (Idaho reciprocity); and RCW 28B.15.756 and 28B.15.758 (British Columbia reciprocity)((; and RCW 28B.15.760 through 28B.15.764 (math/science loans))).

Sec. 25   RCW 28B.85.010 and 1986 c 136 s 1 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter:
     (1) (("Board" means the higher education coordinating board)) "Commission" means the student financial aid and scholarship commission.
     (2) "Degree" means any designation, appellation, letters, or words including but not limited to "associate," "bachelor," "master," "doctor," or "fellow" which signify or purport to signify satisfactory completion of the requirements of an academic program of study beyond the secondary school level.
     (3) "Degree-granting institution" means an entity that offers educational credentials, instruction, or services prerequisite to or indicative of an academic or professional degree beyond the secondary level.

Sec. 26   RCW 28B.85.020 and 1996 c 305 s 1 are each amended to read as follows:
     (1) The ((board)) commission:
     (a) Shall adopt by rule minimum standards for degree-granting institutions concerning granting of degrees, quality of education, unfair business practices, financial stability, and other necessary measures to protect citizens of this state against substandard, fraudulent, or deceptive practices. The ((board)) commission shall adopt the rules in accordance with chapter 34.05 RCW;
     (b) May investigate any entity the ((board)) commission reasonably believes to be subject to the jurisdiction of this chapter. In connection with the investigation, the ((board)) commission may administer oaths and affirmations, issue subpoenas and compel attendance, take evidence, and require the production of any books, papers, correspondence, memorandums, or other records which the ((board)) commission deems relevant or material to the investigation. The ((board)) commission, including its staff and any other authorized persons, may conduct site inspections and examine records of all institutions subject to this chapter((;
     (c) Shall develop an interagency agreement with the work force training and education coordinating board to regulate degree-granting private vocational schools with respect to degree and nondegree programs)).
     (2) Financial disclosures provided to the ((board)) commission by degree-granting private vocational schools are not subject to public disclosure under chapter 42.17 RCW.

Sec. 27   RCW 28B.85.030 and 1986 c 136 s 3 are each amended to read as follows:
     A degree-granting institution shall not operate and shall not grant or offer to grant any degree unless the institution has obtained current authorization from the ((board)) commission.

Sec. 28   RCW 28B.85.040 and 1996 c 97 s 1 are each amended to read as follows:
     (1) An institution or person shall not advertise, offer, sell, or award a degree or any other type of educational credential unless the student has enrolled in and successfully completed a prescribed program of study, as outlined in the institution's publications. This prohibition shall not apply to honorary credentials clearly designated as such on the front side of the diploma or certificate and awarded by institutions offering other educational credentials in compliance with state law.
     (2) Except as provided in subsection (1) of this section, this chapter shall not apply to:
     (a) Any public college, university, community college, technical college, or institute operating as part of the public higher educational system of this state;
     (b) Institutions that have been accredited by an accrediting association recognized by the agency for the purposes of this chapter: PROVIDED, That those institutions meet minimum exemption standards adopted by the ((agency)) commission; and PROVIDED FURTHER, That an 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 to qualify for this exemption;
     (c) Institutions of a religious character, but only as to those education programs devoted exclusively to religious or theological objectives if the programs are represented in an accurate manner in institutional catalogs and other official publications; or
     (d) Institutions not otherwise exempt which offer only workshops or seminars lasting no longer than three calendar days and for which academic credit is not awarded.

Sec. 29   RCW 28B.85.050 and 1986 c 136 s 5 are each amended to read as follows:
     All degree-granting institutions subject to this chapter shall file information with the ((board)) commission as the ((board)) commission may require.

Sec. 30   RCW 28B.85.060 and 1986 c 136 s 6 are each amended to read as follows:
     The ((board)) commission shall impose fees on any degree-granting institution authorized to operate under this chapter. Fees shall be set and revised by the ((board)) commission by rule at the level necessary to approximately recover the staffing costs incurred in administering this chapter. Fees shall be deposited in the general fund.

Sec. 31   RCW 28B.85.070 and 1986 c 136 s 7 are each amended to read as follows:
     (1) The ((board)) commission may require any degree-granting institution to have on file with the ((board)) commission an approved surety bond or other security in lieu of a bond in an amount determined by the ((board)) commission.
     (2) In lieu of a surety bond, an institution may deposit with the ((board)) commission a cash deposit or other negotiable security acceptable to the ((board)) commission. The security deposited with the ((board)) commission in lieu of the surety bond shall be returned to the institution one year after the institution's authorization has expired or been revoked if legal action has not been instituted against the institution or the security deposit at the expiration of the year. The obligations and remedies relating to surety bonds authorized by this section, including but not limited to the settlement of claims procedure in subsection (5) of this section, shall apply to deposits filed with the ((board)) commission, as applicable.
     (3) Each bond shall:
     (a) Be executed by the institution as principal and by a corporate surety licensed to do business in the state;
     (b) Be payable to the state for the benefit and protection of any student or enrollee of an institution, or, in the case of a minor, his or her parents or guardian;
     (c) Be conditioned on compliance with all provisions of this chapter and the ((board's)) commission's rules adopted under this chapter;
     (d) Require the surety to give written notice to the ((board)) commission at least thirty-five days before cancellation of the bond; and
     (e) Remain in effect for one year following the effective date of its cancellation or termination as to any obligation occurring on or before the effective date of cancellation or termination.
     (4) Upon receiving notice of a bond cancellation, the ((board)) commission shall notify the institution that the authorization will be suspended on the effective date of the bond cancellation unless the institution files with the ((board)) commission another approved surety bond or other security. The ((board)) commission may suspend or revoke the authorization at an earlier date if it has reason to believe that such action will prevent students from losing their tuition or fees.
     (5) If a complaint is filed under RCW 28B.85.090(1) against an institution, the ((board)) commission may file a claim against the surety and settle claims against the surety by following the procedure in this subsection.
     (a) The ((board)) commission shall attempt to notify all potential claimants. If the absence of records or other circumstances makes it impossible or unreasonable for the ((board)) commission to ascertain the names and addresses of all the claimants, the ((board)) commission after exerting due diligence and making reasonable inquiry to secure that information from all reasonable and available sources, may make a demand on a bond on the basis of information in the ((board's)) commission's possession. The ((board)) commission is not liable or responsible for claims or the handling of claims that may subsequently appear or be discovered.
     (b) Thirty days after notification, if a claimant fails, refuses, or neglects to file with the ((board)) commission a verified claim, the ((board)) commission shall be relieved of further duty or action under this chapter on behalf of the claimant.
     (c) After reviewing the claims, the ((board)) commission may make demands upon the bond on behalf of those claimants whose claims have been filed. The ((board)) commission may settle or compromise the claims with the surety and may execute and deliver a release and discharge of the bond.
     (d) If the surety refuses to pay the demand, the ((board)) commission may bring an action on the bond in behalf of the claimants. If an action is commenced on the bond, the ((board)) commission may require a new bond to be filed.
     (e) Within ten days after a recovery on a bond or other posted security has occurred, the institution shall file a new bond or otherwise restore its security on file to the required amount.
     (6) The liability of the surety shall not exceed the amount of the bond.

Sec. 32   RCW 28B.85.080 and 1986 c 136 s 8 are each amended to read as follows:
     The ((board)) commission may suspend or modify any of the requirements under this chapter in a particular case if the ((board)) commission finds that:
     (1) The suspension or modification is consistent with the purposes of this chapter; and
     (2) The education to be offered addresses a substantial, demonstrated need among residents of the state or that literal application of this chapter would cause a manifestly unreasonable hardship.

Sec. 33   RCW 28B.85.090 and 1989 c 175 s 82 are each amended to read as follows:
     (1) A person claiming loss of tuition or fees as a result of an unfair business practice may file a complaint with the ((board)) commission. The complaint shall set forth the alleged violation and shall contain information required by the ((board)) commission. A complaint may also be filed with the ((board)) commission by an authorized staff member of the ((board)) commission or by the attorney general.
     (2) The ((board)) commission shall investigate any complaint under this section and may attempt to bring about a settlement. The ((board)) commission may hold a hearing pursuant to the administrative procedure act, chapter 34.05 RCW, in order to determine whether a violation has occurred. If the ((board)) commission prevails, the degree-granting institution shall pay the costs of the administrative hearing.
     (3) If, after the hearing, the ((board)) commission finds that the institution or its agent engaged in or is engaging in any unfair business practice, the ((board)) commission shall issue and cause to be served upon the violator an order requiring the violator to cease and desist from the act or practice and may impose the penalties under RCW 28B.85.100. If the ((board)) commission finds that the complainant has suffered loss as a result of the act or practice, the ((board)) commission may order full or partial restitution for the loss. The complainant is not bound by the ((board's)) commission's determination of restitution and may pursue any other legal remedy.

Sec. 34   RCW 28B.85.100 and 1986 c 136 s 10 are each amended to read as follows:
     Any person, group, or entity or any owner, officer, agent, or employee of such entity who willfully violates any provision of this chapter or the rules adopted under this chapter shall be subject to a civil penalty of not more than one hundred dollars for each violation. Each day on which a violation occurs constitutes a separate violation. The fine may be imposed by the ((higher education coordinating board)) commission or by any court of competent jurisdiction.

Sec. 35   RCW 28B.85.130 and 1986 c 136 s 13 are each amended to read as follows:
     If any degree-granting institution discontinues its operation, the chief administrative officer of the institution shall file with the ((board)) commission the original or legible true copies of all educational records required by the ((board)) commission. If the ((board)) commission determines that any educational records are in danger of being made unavailable to the ((board)) commission, the ((board)) commission may seek a court order to protect and if necessary take possession of the records. The ((board)) commission shall cause to be maintained a permanent file of educational records coming into its possession.

Sec. 36   RCW 28B.85.170 and 1986 c 136 s 17 are each amended to read as follows:
     The ((board)) commission may seek injunctive relief, after giving notice to the affected party, in a court of competent jurisdiction for a violation of this chapter or the rules adopted under this chapter. The ((board)) commission need not allege or prove that the ((board)) commission has no adequate remedy at law. The right of injunction provided in this section is in addition to any other legal remedy which the ((board)) commission has and is in addition to any right of criminal prosecution provided by law. The existence of ((board)) commission action with respect to alleged violations of this chapter and rules adopted under this chapter does not operate as a bar to an action for injunctive relief under this section.

NEW SECTION.  Sec. 37   A new section is added to chapter 28B.80 RCW to read as follows:
     (1) All powers, duties, and functions of the higher education coordinating board pertaining to the powers and duties in section 2 of this act are transferred to the student financial aid and scholarship commission. All references to the executive director or the higher education coordinating board in the Revised Code of Washington shall be construed to mean the director or the student financial aid and scholarship commission when referring to the functions transferred in this section.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the higher education coordinating board pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the student financial aid and scholarship commission. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the higher education coordinating board in carrying out the powers, functions, and duties transferred shall be made available to the student financial aid and scholarship commission. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the student financial aid and scholarship commission.
     (b) Any appropriations made to the higher education coordinating board for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the student financial aid and scholarship commission.
     (c) Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) All employees of the higher education coordinating board engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the student financial aid and scholarship commission. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the student financial aid and scholarship commission to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
     (4) All rules and all pending business before the higher education coordinating board pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the student financial aid and scholarship commission. All existing contracts and obligations shall remain in full force and shall be performed by the student financial aid and scholarship commission.
     (5) The transfer of the powers, duties, functions, and personnel of the higher education coordinating board shall not affect the validity of any act performed before the effective date of this section.
     (6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (7) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel resources board as provided by law.

NEW SECTION.  Sec. 38   RCW 28B.80.240 (Student financial aid programs, board to administer) and 1985 c 370 s 23 & 1975 1st ex.s. c 132 s 15 are each repealed.

NEW SECTION.  Sec. 39   Sections 1 through 5 of this act constitute a new chapter in Title 28B RCW.

NEW SECTION.  Sec. 40   Section 19 of this act takes effect March 15, 2005.

NEW SECTION.  Sec. 41   Section 18 of this act expires March 15, 2005.

NEW SECTION.  Sec. 42   Sections 1 through 18 and 20 through 38 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2003.

NEW SECTION.  Sec. 43   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.