SB 5402

SB 5402

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: Senators Kilmer, Delvin, Shin and Rockefeller; by request of Workforce Training and Education Coordinating Board.

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 the 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:

The WTECB must adopt minimum standards for entities operating private vocational schools that include requirements to assess whether a private vocational school is eligible to obtain and maintain a license in Washington. Vocational schools must demonstrate their financial viability and responsibility to the WTECB. Also, 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, completed a General Educational Development test in English, or passed another appropriate assessment. The WTECB may deny a private vocational school's application for licensure if the school does not meet all requirements.

If the WTECB determines that a private vocational school is at risk for closure or termination, the school will 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 will provide 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.

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

Washington State House of Representatives Office of Program Research	BILL ANALYSIS

Higher Education Committee