"Sec. 1   RCW 28C.10.020 and 1993 c 445 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) "Agency" means the work force training and education coordinating board.
     (2) "Agent" means a person owning an interest in, employed by, or representing for remuneration a private vocational school within or without this state, who enrolls or personally attempts to secure the enrollment in a private vocational school of a resident of this state, offers to award educational credentials for remuneration on behalf of a private vocational school, or holds himself or herself out to residents of this state as representing a private vocational school for any of these purposes.
     (3) "Current assets" includes cash or other assets or resources commonly identified as those that are reasonably expected to be realized in cash or sold or consumed within one year.
     (4) "Current liabilities" includes obligations for which liquidation is reasonably expected to require the use of existing resources properly classifiable as current assets or the creation of other current liabilities.
     (5) "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 an academic program of study beyond the secondary school level.
     (((4))) (6) "Education" includes but is not limited to, any class, course, or program of training, instruction, or study.
     (((5))) (7) "Educational credentials" means degrees, diplomas, certificates, transcripts, reports, or documents((, or letters of designation, marks, appellations, series of letters, numbers, or words which)) that signify ((or appear to signify enrollment, attendance, progress, or)) satisfactory completion of the requirements or prerequisites for any educational program.
     (((6))) (8) "Entity" includes, but is not limited to, a person, company, firm, society, association, partnership, corporation, or trust.
     (((7))) (9) "Private vocational school" means any location where an entity is offering postsecondary education in any form or manner for the purpose of instructing, training, or preparing persons for any vocation or profession.
     (((8))) (10) "Probation" means the agency has officially notified a private vocational school in writing that the school or a program offered by the school has been identified by the agency as at risk and has deficiencies that must be corrected within a specified time period.
     (11) "Program" means a sequence of approved subjects offered by a school that teaches skills and fundamental knowledge required for employment in a particular occupation.
     (12) "To grant" includes to award, issue, sell, confer, bestow, or give.
     (((9))) (13) "To offer" includes, in addition to its usual meanings, to advertise or publicize. "To offer" also means to solicit or encourage any person, directly or indirectly, to perform the act described.
     (((10))) (14) "To operate" means to establish, keep, or maintain any facility or location where, from, or through which education is offered or educational credentials are offered or granted to residents of this state, and includes contracting for the performance of any such act.

Sec. 2   RCW 28C.10.050 and 2005 c 274 s 247 are each amended to read as follows:
     (1) The agency shall adopt ((by rule minimum standards for entities operating private vocational schools. The minimum standards shall include, but not be limited to, requirements for each)) minimum requirements to assess whether a private vocational school is eligible to obtain and maintain a license in this state.
     (2) The requirements adopted by the agency shall, at a minimum, require a private vocational school to:
     (a) Disclose to the agency information about its ownership and financial position and to demonstrate that it has sufficient financial resources to fulfill its commitments to students. Financial disclosures provided to the agency shall not be subject to public disclosure under chapter 42.56 RCW;
     (b) Demonstrate to the agency that the school is financially viable and responsible, and has sufficient financial resources to fulfill the school's commitments to its students. A private vocational school shall be considered financially viable and responsible only if it:
     (i) Is able to provide the services described in its official publications and statements;
     (ii) Is able to provide the administrative resources necessary to comply with the requirements of this subsection;
     (iii) Is able to meet all of its financial obligations, including, but not limited to, refunds that it is required by agency rule to provide to students;
     (iv) Demonstrates that at the close of its most recent fiscal year it had a ratio of current assets to current liabilities of at least 1:1; and
     (v) Had at the close of its most recent fiscal year a positive net worth, unless the school can demonstrate additional financial resources to be considered. For the purposes of this section, "positive net worth" means the school's assets exceed its liabilities;
     (c) Follow a uniform statewide cancellation and refund policy as specified by the agency;
     (((c))) (d) Disclose through use of a school catalog, brochure, or other written material, necessary information to students so that students may make informed enrollment decisions. The agency shall specify what information is required;
     (((d))) (e) Use an enrollment contract or agreement that includes: (i) The school's cancellation and refund policy, (ii) a brief statement that the school is licensed under this chapter and that inquiries may be made to the agency, and (iii) other necessary information as determined by the agency;
     (((e))) (f) Describe accurately and completely in writing to students before their enrollment prerequisites and requirements for (i) completing successfully the programs of study in which they are interested and (ii) qualifying for the fields of employment for which their education is designed;
     (((f))) (g) Comply with the requirements of RCW 28C.10.084;
     (((g))) (h) Assess the basic skills and relevant aptitudes of each potential student to determine that a potential student has the basic skills and relevant aptitudes necessary to complete and benefit from the program in which the student plans to enroll, including but not limited to administering a United States department of education-approved English as a second language exam before enrolling students for whom English is a second language unless the students provide proof of graduation from a United States high school or proof of completion of a GED in English. ((Guidelines for such assessments shall be developed by the agency, in consultation with the schools. The method of assessment shall be reported to the agency. Assessment records shall be maintained in the student's file)) Each private vocational school shall report its methods of assessment to the agency and shall maintain assessment records in each student's file. If a potential student's basic skills or English language proficiency is not adequate for the student's likely success in the program in which the student plans to enroll, the private vocational school shall so inform the student and shall either provide basic skills training or English as a second language supplemental instruction to the student, or assist such a student by providing information about where to obtain basic skills training or English as a second language instruction;
     (((h))) (i) Discuss with each potential student the potential student's obligations in signing any enrollment contract and/or incurring any debt for educational purposes. The discussion shall include the inadvisability of acquiring an excessive educational debt burden that will be difficult to repay given employment opportunities and average starting salaries in the potential student's chosen occupation((.));
     (((2) Any enrollment contract shall have)) (j) Ensure that any enrollment contract between the private vocational school and its students has an attachment in a format provided by the agency. The attachment shall be signed by both the school and the student. The attachment shall stipulate that the school has complied with subsection (((1)(h))) (2)(i) of this section and that the student understands and accepts his or her responsibilities in signing any enrollment contract or debt application. The attachment shall also stipulate that the enrollment contract shall not be binding for at least five days, excluding Sundays and holidays, following signature of the enrollment contract by both parties((.
     (3) The agency shall deny, revoke, or suspend the license of any school that does not meet or maintain the minimum standards));
     (k) Comply with the requirements related to qualifications of administrators and instructors under section 3 of this act; and
     (l) Upon request, provide to the agency a statement from an independent accountant regarding the school's financial viability. The agency may determine that a school is not financially viable, responsible, or able to fulfill its commitments to students if the statement from an independent accountant expresses substantial doubt about the school's financial ability to continue operating.
     (3) The agency may deny a private vocational school's application for licensure if the school fails to meet the requirements in this section.
     (4) The agency may determine that a licensed private vocational school or a particular program of a private vocational school is at risk if:
     (a) There is a pattern or history of substantiated student complaints filed with the agency pursuant to RCW 28C.10.120; or
     (b) The private vocational school has a pattern or history of failing to meet the minimum requirements for licensure established by the agency or substantially fails to meet the minimum requirements for licensure established by the agency.
     (5) If the agency determines that a private vocational school is at risk, the agency:
     (a) Shall notify the school in writing of the deficiencies determined by the agency;
     (b) Shall require the owner of the school, the director of the school, or both of them, to meet with agency staff to discuss the school's deficiencies;
     (c) May require the school to have an outside audit conducted; and
     (d) May place the school on probation.
     (6) A school that is placed on probation by the agency shall provide to the agency:
     (a) A written school improvement plan that addresses the deficiencies identified by the agency and the school's plan to remedy the deficiencies. The school shall provide its school improvement plan to the agency no later than thirty days after the meeting required by subsection (5)(b) of this section;
     (b) Evidence, if requested by the agency, that the school has secured a line of credit from a lender approved by and in an amount determined by the agency. The school shall provide evidence of the line of credit to the agency no later than sixty days after the meeting required by subsection (5)(b) of this section; and
     (c) A monthly status report of the school's progress on implementing its improvement plan for a period of up to twelve months. The monthly status report shall include all students' names and current contact information.
     (7) If a private vocational school that is placed on probation by the agency fails to correct the deficiencies identified by the agency within twelve months the agency may revoke the school's license.

NEW SECTION.  Sec. 3   A new section is added to chapter 28C.10 RCW to read as follows:
     (1) The education and experience of administrators, instructors, and counselors employed by a private vocational school shall be adequate to ensure that students receive educational services consistent with the school's stated program objectives.
     (2) A private vocational school must file the qualifications of each of its administrators, instructors, and counselors with the agency within thirty calendar days of the day the school hires the administrator, instructor, or counselor. This information shall be provided by the school to the agency in the form required by the agency.
     (3) A private vocational school shall establish and enforce written policies for the qualification, supervision, and periodic evaluation of administrators, instructors, and counselors.
     (4) The highest ranking administrator at a private vocational school shall have at least two years of experience in school or business administration, teaching, or professional employment related to his or her duties within the school.
     (5) Private vocational school instructors shall:
     (a) Have at least two years of full-time work experience, postsecondary training, or a combination of both, in the subjects they instruct; or
     (b) Possess current evidence issued by a regulatory agency of this or another state that they are qualified to teach in their particular subjects of instruction.
     (6) If a private vocational school uses teacher assistants, aides, or trainees, it must maintain policies governing their duties and functions. Such personnel may provide services to students only under the direct supervision of a qualified instructor and may not act as substitutes for instructors.
     (7) A private vocational school's owners, administrators, instructors, agents, and other staff must be of good moral character and reputation. The agency may find that a person is not of good moral character and reputation if the person: (a) Has been convicted of a felony within the last seven years or a misdemeanor that involved any sexual offense, or (b) is found to have made any false and material statements to the agency.
     (8) Every private vocational school shall register its sales agents with the agency within thirty days of the school's hiring or contracting with the sales agent.

Sec. 4   RCW 28C.10.120 and 1993 c 445 s 3 are each amended to read as follows:
     (1) Complaints may be filed under this chapter only by a person claiming loss of tuition or fees as a result of an unfair business practice. The complaint shall set forth the alleged violation and shall contain information required by the agency on forms provided for that purpose. A complaint may also be filed with the agency by an authorized staff member of the agency or by the attorney general.
     (2) The agency shall investigate any complaint under this section and shall first attempt to bring about a negotiated settlement. The agency director or the director's designee may conduct an informal hearing with the affected parties in order to determine whether a violation has occurred.
     (3) If the agency finds that the private vocational school or its agent engaged in or is engaging in any unfair business practice, the agency 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 provided under RCW 28C.10.130. If the agency finds that the complainant has suffered loss as a result of the act or practice, the agency may order the violator to pay full or partial restitution of any amounts lost. The loss may include any money paid for tuition, required or recommended course materials, and any reasonable living expenses incurred by the complainant during the time the complainant was enrolled at the school.
     (4) The complainant is not bound by the agency's determination of restitution. The complainant may reject that determination and may pursue any other legal remedy.
     (5) The violator may, within twenty days of being served any order described under subsection (3) of this section, file an appeal under the administrative procedure act, chapter 34.05 RCW. Timely filing stays the agency's order during the pendency of the appeal. If the agency prevails, the appellant shall pay the costs of the administrative hearing.
     (6) If a private vocational school closes without providing adequate notice to its enrolled students, the agency shall provide transition assistance to the school's students including, but not limited to, information regarding: (a) Transfer options available to students; (b) financial aid discharge eligibility and procedures; (c) the labor market, job search strategies, and placement assistance services; and (d) other support services available to students.

NEW SECTION.  Sec. 5   This act takes effect July 1, 2006.

NEW SECTION.  Sec. 6   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."