Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS

Higher Education Committee

HB 1169


This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Establishing additional requirements for private vocational schools.

Sponsors: Representatives Kenney, Haler, Ormsby, Fromhold, P. Sullivan, Jarrett, Wallace, Anderson, Morrell, Kagi, Conway, Sells, Simpson and Haigh; by request of Workforce Training and Education Coordinating Board.

Brief Summary of Bill
  • Clarifies the minimum requirements for private vocational schools to obtain and maintain an operating license, and requires them to demonstrate their financial viability and responsibility to the Workforce Training and Education Coordinating Board.
  • Authorizes the Workforce Training and Education Coordinating Board to take corrective action if they determine that a private vocational school is at risk for closure.
  • Directs the Workforce Training and Education Coordinating Board to provide transition assistance to the students, if a school closes without making adequate provisions.

Hearing Date: 2/22/07

Staff: Jennifer Thornton (786-7111).

Background:

The Workforce Training and Education Coordinating Board (WTECB) regulates and licenses
private vocational schools to ensure adequate educational quality and to monitor for false,
deceptive, misleading, or unfair practices of private vocational schools. Among its duties, the
WTECB establishes standards for private vocational schools, manages a tuition recovery trust
fund for settlement of claims related to school closures, and monitors for unfair business practices.

A number of schools closed in 2005, prompting the WTECB to consider whether increased
oversight of private career schools is necessary. For example, the computer training school called "Go2cert.com" closed its doors and declared bankruptcy in 2005. The WTECB refunded unearned prepaid tuition of approximately $147,000 to the school's students who were enrolled when the school closed.

The Business Career Training Institute (BCTI), which had enrollments of between 500 and 600
students, also closed in 2005, owing the Higher Education Coordinating Board more than $50,000 for repayment of State Need Grant. The BCTI also admitted falsifying enrollment tests to admit students who were not "qualified" to enroll.

In 2005, 10 Washington students complained to the WTECB about the Court Reporting Institute, which had campuses in Seattle and Tacoma. Among other things, they cited poor instruction and misleading claims that they'd graduate in 30 months. In August 2006, the school closed all of its campuses.

Summary of Bill:

It is clarified that private vocational schools must meet the minimum requirements to obtain and maintain an operating license. Private vocational schools must demonstrate their financial viability and responsibility to the WTECB. If any of the requirements are not met, the WTECB may deny the private vocational school's license application.

Before enrolling students for whom English is a second language, the schools must administer
an English as a second language examination, unless the student graduated from a United
States high school, or completes a General Educational Development test in English, or passed another appropriate assessment.

If the WTECB determines that a private vocational school is at risk for closure or termination,
the school may be required to take corrective action. In making the determination, the
WTECB considers whether there is a pattern or history of substantiated student complaints or
whether there is a present and historical pattern of failing to meet minimum requirements. If a
school closes without providing adequate student notice, the WTECB provides transition
assistance to the students including information regarding: transfer options, financial aid
discharge procedures, labor market and job placement assistance, and other available support
services.

Appropriation: The sum of $106,000.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.