BILL REQ. #:  Z-0546.2 



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SENATE BILL 5501
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State of Washington60th Legislature2007 Regular Session

By Senators McAuliffe, Tom, Marr, Eide, Kohl-Welles, Franklin, Hobbs, Oemig, Weinstein, Kauffman, Rasmussen, Shin, Kilmer and Poulsen; by request of Governor Gregoire

Read first time 01/22/2007.   Referred to Committee on Early Learning & K-12 Education.



     AN ACT Relating to implementing Washington learns; amending RCW 43.215.020, 43.215.070, 28A.150.210, 28A.505.210, 28A.310.350, 28A.660.005, 28A.660.050, 28B.102.080, 28B.15.820, 28B.92.080, 28B.76.050, 28B.76.090, and 28B.76.210; reenacting and amending RCW 43.79A.040; adding new sections to chapter 43.215 RCW; adding new sections to chapter 28A.150 RCW; adding new sections to chapter 28A.630 RCW; adding new sections to chapter 28A.300 RCW; adding new sections to chapter 28A.415 RCW; adding a new section to chapter 28A.405 RCW; adding new sections to chapter 28A.660 RCW; adding new sections to chapter 28B.50 RCW; adding new sections to chapter 28B.15 RCW; adding new sections to chapter 43.41 RCW; adding new chapters to Title 28B RCW; creating new sections; repealing RCW 28B.76.100; providing expiration dates; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The legislature finds that education is the single most effective investment that can be made in children, the state, the economy, and the future. A well-educated citizenry is essential both for the preservation of democracy and for enhancing the state's ability to compete in the knowledge-based global economy.
     As recommended by Washington learns, the legislature declares that the overarching goal for education in the state is to have a world-class, learner-focused, seamless education system that educates more Washingtonians to the highest levels of educational attainment.

EARLY LEARNING
PART 1
STATE AND LOCAL PARTNERSHIPS

NEW SECTION.  Sec. 101   A new section is added to chapter 43.215 RCW to read as follows:
     EARLY LEARNING ADVISORY COUNCIL. (1) The early learning advisory council is established to advise the department on statewide early learning community needs and progress.
     (2) The council shall work in conjunction with the department to develop a statewide early learning plan that crosses systems and sectors to promote alignment of private and public sector actions, objectives, and resources, and to ensure school readiness.
     (3) The council shall include diverse, statewide representation from public, nonprofit, and for-profit entities. Its membership shall reflect regional, racial, and cultural diversity to adequately represent the needs of all children and families in the state.
     (4) Council members shall serve two-year terms. However, to stagger the terms of the council, the initial appointments for twelve of the members shall be for one year. Once the initial one-year to two-year terms expire, all subsequent terms shall be for two years, with the terms expiring on June 30th of the applicable year. The terms shall be staggered in such a way that, where possible, the terms of members representing a specific group do not expire simultaneously.
     (5) The council shall consist of not more than twenty-five members, as follows:
     (a) The governor shall appoint at least one representative from each of the following: The department, the office of financial management, the department of social and health services, the department of health, the higher education coordinating board, and the state board for community and technical colleges;
     (b) One representative from the office of the superintendent of public instruction, to be appointed by the superintendent of public instruction;
     (c) At least six leaders in early childhood education, to be appointed by the governor;
     (d) Two members of the house of representatives and two members of the senate, to be appointed by the speaker of the house of representatives and the president of the senate, respectively;
     (e) Two parents, one of whom serves on the department's parent advisory council, to be appointed by the governor;
     (f) Two representatives of the private-public partnership created in RCW 43.215.070, to be appointed by the partnership board; and
     (g) The executive director of the governor's office of Indian affairs.
     (6) The council shall be cochaired by one representative of a state agency and one nongovernmental member, to be elected by the council for two-year terms;
     (7) Each member of the board shall be compensated in accordance with RCW 43.03.240 and reimbursed for travel expenses incurred in carrying out the duties of the board in accordance with RCW 43.03.050 and 43.03.060.
     (8) The department shall provide staff support to the council.

NEW SECTION.  Sec. 102   A new section is added to chapter 43.215 RCW to read as follows:
     FIVE-STAR VOLUNTARY RATING SYSTEM. Subject to the availability of amounts appropriated for this specific purpose, the department, in collaboration with community and statewide partners, shall implement a five-star voluntary rating system applicable to licensed or certified child care centers and homes and early education programs. The purpose of the rating system is to give parents better information about the quality of child care and early education programs, and to increase the quality of early learning programs throughout the state. Nothing in this section changes the department's responsibility to collectively bargain over mandatory subjects.

Sec. 103   RCW 43.215.020 and 2006 c 265 s 103 are each amended to read as follows:
     (1) The department of early learning is created as an executive branch agency. The department is vested with all powers and duties transferred to it under this chapter and such other powers and duties as may be authorized by law.
     (2) The primary duties of the department are to implement state early learning policy and to coordinate, consolidate, and integrate child care and early learning programs in order to administer programs and funding as efficiently as possible. The department's duties include, but are not limited to, the following:
     (a) To support both public and private sectors toward a comprehensive and collaborative system of early learning that serves parents, children, and providers and to encourage best practices in child care and early learning programs;
     (b) To improve parent education and support;
     (c) To carry out activities to improve the quality of early learning opportunities for young children including activities in cooperation with the private-public partnership;
     (d) To administer child care and early learning programs;
     (e) To standardize internal financial audits, oversight visits, performance benchmarks, and licensing criteria, so that programs can function in an integrated fashion;
     (f) To assist in the implementation of the private-public partnership and cooperate with that partnership in pursuing its goals including providing data and support necessary for the successful work of the partnership;
     (g) To work cooperatively and in coordination with the early learning council; ((and))
     (h) To collaborate with the K-12 school system at the state and local levels to ensure appropriate connections and smooth transitions between early learning and K-12 programs; and
     (i) Upon the development of an early learning information system, to make available to parents timely inspection and complaint information through the internet and other means
.
     (3) The department's programs shall be designed in a way that respects and preserves the ability of parents and legal guardians to direct the education, development, and upbringing of their children. The department shall include parents and legal guardians in the development of policies and program decisions affecting their children.

Sec. 104   RCW 43.215.070 and 2006 c 265 s 108 are each amended to read as follows:
     (1) In addition to other duties under this chapter, the director shall actively participate in a nongovernmental private-public partnership focused on supporting government's investments in early learning and ensuring that every child in the state is prepared to succeed in school and in life. Except for licensing as required by Washington state law and to the extent permitted by federal law, the director of the department of early learning shall grant waivers from the rules of state agencies for the operation of early learning programs requested by the nongovernmental private-public partnership to allow for flexibility to pursue market-based approaches to achieving the best outcomes for children and families.
     (2) In addition to other powers granted to the director, the director may:
     (a) Enter into contracts on behalf of the department to carry out the purposes of this chapter;
     (b) Accept gifts, grants, or other funds for the purposes of this chapter; and
     (c) Adopt, in accordance with chapter 34.05 RCW, rules necessary to implement this chapter, including rules governing child day care and early learning programs under this chapter. This section does not expand the rule-making authority of the director beyond that necessary to implement and administer programs and services existing July 1, 2006, as transferred to the department of early learning under section 501, chapter 265, Laws of 2006. The rule-making authority does not include any authority to set mandatory curriculum or establish what must be taught in child day care centers or by family day care providers.
     (3) In order to meet its partnership responsibilities, the department shall:
     (a) Work collaboratively with the nongovernmental private-public partnership; and
     (b) Actively seek public and private money for distribution as grants to the private-public partnership.
     (4) In order to meet its partnership responsibilities, the nongovernmental private-public partnership shall:
     (a) Work with and complement existing statewide efforts by enhancing parent education and support, child care, preschool, and other early learning environments;
     (b) Accept and expend funds to be used for quality improvement initiatives, including but not limited to parent education and support, and support the alignment of existing funding streams and coordination of efforts across sectors;
     (c) In conjunction with the department, provide leadership to early learning private-public partnerships forming in communities across the state. These local partnerships shall be encouraged to seek local funding and develop strategies to improve coordination and exchange information between the community, early care and education programs, and the K-12 system; and
     (d) Assist the statewide movement to high quality early learning and the support of parents as a child's first and best teacher.

NEW SECTION.  Sec. 105   A new section is added to chapter 43.215 RCW to read as follows:
     RULES REVIEW. In conjunction with child care providers and other early learning leaders, the department shall review and revise child care provider rules in order to emphasize the need for mutual respect among parents, providers, and state staff who enforce rules. Revised rules shall clearly focus on keeping children safe and improving early learning outcomes for children. The department shall develop a plan by July 2007 that outlines the process and timelines to complete the rules review. Nothing in this section changes the department's responsibility to collectively bargain over mandatory subjects.

K-12
PART 2
BASIC EDUCATION GOALS

Sec. 201   RCW 28A.150.210 and 1993 c 336 s 101 are each amended to read as follows:
     The goal of the basic education act for the schools of the state of Washington set forth in this chapter shall be to provide students with the opportunity to become responsible citizens, to contribute to their own economic well-being and to that of their families and communities, and to enjoy productive and satisfying lives, and to develop a public school system that focuses more on the educational performance of students and includes high expectations for all students. To these ends, the goals of each school district, with the involvement of parents and community members, shall be to provide opportunities for all students to develop the knowledge and skills essential to:
     (1) Read with comprehension, write with skill, and communicate effectively and responsibly in a variety of ways and settings;
     (2) Know and apply the core concepts and principles of mathematics; social, physical, and life sciences; civics and history; geography; arts; and health and fitness;
     (3) Think analytically, logically, and creatively, and to integrate experience and knowledge to form reasoned judgments and solve problems; and
     (4) Understand the importance of work and how performance, effort, and decisions directly affect future career and educational opportunities.

PART 3
ALL-DAY KINDERGARTEN

NEW SECTION.  Sec. 301   A new section is added to chapter 28A.150 RCW to read as follows:
     ALL-DAY KINDERGARTEN PROGRAMS--FUNDING. Beginning with the 2007-08 school year, funding for voluntary all-day kindergarten programs shall be phased-in beginning with schools with the highest poverty levels, defined as those schools with the highest percentages of students qualifying for free and reduced-price lunch support in the prior school year. Once a school receives funding for the all-day kindergarten program, that school shall remain eligible for funding in subsequent school years regardless of changes in the school's percentage of students eligible for free and reduced-price lunches as long as other program requirements are fulfilled. Resources for all-day kindergarten shall support students who qualify for free and reduced-price lunch program support. Additionally, schools receiving all-day kindergarten program support shall agree to the following conditions:
     (1) Providing at least a one thousand-hour instructional program;
     (2) Providing a curriculum that offers a rich, varied set of experiences that assist students in:
     (a) Developing initial skills in the academic areas of reading, mathematics, and writing;
     (b) Developing a variety of communication skills;
     (c) Providing experiences in science, social studies, arts, health and physical education, and a world language other than English;
     (d) Acquiring large and small motor skills;
     (e) Acquiring social and emotional skills including successful participation in learning activities as an individual and as part of a group;
     (f) Establishing learning environments that are developmentally appropriate and promote creativity; and
     (g) Learning through hands-on experiences;
     (3) Demonstrating strong connections and communication with early learning community providers; and
     (4) Participating in kindergarten program readiness activities with early learning providers and parents.

PART 4
DEMONSTRATION PROJECTS

NEW SECTION.  Sec. 401   A new section is added to chapter 28A.630 RCW to read as follows:
     PRIMARY LEVEL EDUCATION PROJECTS. (1) Ten demonstration projects are authorized for schools serving kindergarten through third grade students to develop, implement, and document the effects of a comprehensive K-3 foundations program. At least two demonstration projects shall be in schools that are participating in the public-private early learning partnerships in the Highline and Yakima school districts.
     (2) The superintendent of public instruction shall select project participants based on the criteria in this section, the commitment to a school-wide program, and the degree to which applicants articulate an understanding of development and implementation of a comprehensive K-3 foundations program.
     (3) Successful school applicants shall:
     (a) Demonstrate that there is engaged and committed school and district leadership and support for the project;
     (b) Demonstrate that school staff is engaged and committed and believes in high expectations for all students;
     (c) Have a history of successfully using data to guide decision making for students and the program;
     (d) Plan for the use of staff learning improvement days to support project implementation;
     (e) Demonstrate successful linkages with the early learning providers in their communities;
     (f) Outline the steps taken to develop this application and the general plan for implementation of a comprehensive K-3 foundations program; and
     (g) Commit to individualized learning opportunities in early grades by using district resources, such as funding under RCW 28A.505.210, to reduce class sizes in grades kindergarten through three.
     (4) Program resources provided to demonstration projects are:
     (a) Support to implement a full-day kindergarten program;
     (b) Support for class sizes at a ratio of one teacher to eighteen students, and the additional resources for materials generated by that ratio through associated nonemployee-related costs;
     (c) Support for a one-half full-time equivalent instructional coach; and
     (d) Support for professional development time related to program implementation.
     (5) Demonstration projects shall provide:
     (a) A program that implements an educational philosophy that supports child-centered learning;
     (b) Learning opportunities through personal exploration and discovery, hands-on experiences, and by working independently, in small groups and in large groups;
     (c) Rich and varied subject matter that includes: Reading, writing, mathematics, science, a world language other than English, the arts, and health and physical education;
     (d) Opportunities to learn and feel accomplishment, diligence, creativity, and confidence;
     (e) Social and emotional development opportunities;
     (f) Personalized assessment for each student that addresses academic knowledge and skill development, social and emotional skill development, critical thinking and decision-making skills, large and fine motor skill development, and knowledge of personal interests, strengths, and goals;
     (g) For students to progress to the upper elementary grades when a solid foundation is in place and reading and mathematics primary skills have been mastered; and
     (h) Class sizes that do not exceed one certificated instructional staff to eighteen students.
     (6) The Washington state institute for public policy shall conduct an evaluation of the demonstration projects under this section. Student, staff, program, and parent data shall be collected using various instruments including surveys, program and activity descriptions, student performance measures, observations, and other processes.
     (7) Findings from the evaluation under this section shall include conclusions regarding the degree to which students thrive in the education environment; student progress in academic, social, and emotional areas; the program components that have been most important to student success; the degree to which educational staff feel accomplished in their work and satisfied with student progress; and recommendations for continued implementation and expansion of the program.
     (8) The institute for public policy shall report its findings to the governor, the office of the superintendent of public instruction, and the appropriate early learning, education, and fiscal committees of the legislature. An interim report is due November 1, 2008. The final report is due December 1, 2009.
     (9) This section expires September 1, 2010.

Sec. 402   RCW 28A.505.210 and 2005 c 497 s 105 are each amended to read as follows:
     School districts shall have the authority to decide the best use of student achievement funds to assist students in meeting and exceeding the new, higher academic standards in each district consistent with the provisions of chapter 3, Laws of 2001. In making this determination beginning with the 2007-08 school year, each school district shall consider using increases in these funds for reducing primary grade class sizes as provided by subsection (1)(a) of this section.
     (1) Student achievement funds shall be allocated for the following uses:
     (a) To reduce class size by hiring certificated elementary classroom teachers in grades K-4 and paying nonemployee-related costs associated with those new teachers;
     (b) To make selected reductions in class size in grades 5-12, such as small high school writing classes;
     (c) To provide extended learning opportunities to improve student academic achievement in grades K-12, including, but not limited to, extended school year, extended school day, before-and-after-school programs, special tutoring programs, weekend school programs, summer school, and all-day kindergarten;
     (d) To provide additional professional development for educators, including additional paid time for curriculum and lesson redesign and alignment, training to ensure that instruction is aligned with state standards and student needs, reimbursement for higher education costs related to enhancing teaching skills and knowledge, and mentoring programs to match teachers with skilled, master teachers. The funding shall not be used for salary increases or additional compensation for existing teaching duties, but may be used for extended year and extended day teaching contracts;
     (e) To provide early assistance for children who need prekindergarten support in order to be successful in school;
     (f) To provide improvements or additions to school building facilities which are directly related to the class size reductions and extended learning opportunities under (a) through (c) of this subsection.
     (2) Annually on or before May 1st, the school district board of directors shall meet at the time and place designated for the purpose of a public hearing on the proposed use of these funds to improve student achievement for the coming year. Any person may appear or by written submission have the opportunity to comment on the proposed plan for the use of these funds. No later than August 31st, as a part of the process under RCW 28A.505.060, each school district shall adopt a plan for the use of these funds for the upcoming school year. Annually, each school district shall provide to the citizens of their district a public accounting of the funds made available to the district during the previous school year under chapter 3, Laws of 2001, how the funds were used, and the progress the district has made in increasing student achievement, as measured by required state assessments and other assessments deemed appropriate by the district. Copies of this report shall be provided to the superintendent of public instruction.

NEW SECTION.  Sec. 403   A new section is added to chapter 28A.630 RCW to read as follows:
     ENGLISH AS A SECOND LANGUAGE PROJECTS. (1) The goals of the English as a second language demonstration project are to develop recommendations:
     (a) Identifying foundational competencies for developing academic English skills in English language learner students that all teachers should acquire in initial teacher preparation programs;
     (b) Identifying components of a professional development program that builds classroom teacher competence for developing academic English skills in English language learner students; and
     (c) Identifying job-embedded practices that connect the English language learner teacher and classroom teachers to coordinate instruction to support the work of the student.
     (2) The English as a second language demonstration project shall use two field strategies in the development of recommendations.
     (a) The first strategy is to conduct a field study of an ongoing project in a number of schools and school districts in which Spanish is the predominate language other than English.
     (b) The second strategy is to conduct a project that provides professional development and planning time resources to approximately three large schools in which there are many first languages among the students. The participants of this project shall partner with an institution of higher education or a professional development provider with expertise in support student acquisition of academic English. The superintendent of public instruction shall select the participants in the project under this subsection (2)(b).
     (3)(a) The Washington state institute for public policy shall conduct the field study work and collect additional information from the project schools. In conducting its work, the institute shall review current literature regarding best practices and consult with state and national experts as appropriate.
     (b) The institute for public policy shall report its findings to the governor, the office of the superintendent of public instruction, and the education and fiscal committees of the legislature. An interim report is due November 1, 2008. The final report is due December 1, 2009.
     (4) This section expires September 1, 2010.

NEW SECTION.  Sec. 404   A new section is added to chapter 28A.150 RCW to read as follows:
     HEALTH-RELATED CAREER ACADEMIES. (1) A health-related career academies grant program is established to provide students with opportunities to prepare for a health-related career. The pathways offered shall result in students acquiring preparation and certification to enter the workforce or to enroll in postsecondary education and training programs upon high school graduation. The grant program shall use a public-private partnership to bring the resources of the state and the private sector together to create the pathways. To the extent possible, grants shall be distributed geographically throughout the state. The grant program is competitive and shall be administered by an experienced nonprofit health organization.
     (2) The grant program shall:
     (a) Require participation in each academy to include high school and school district instructional and administrative staff, public and private institutions of higher education, employers, industry and labor associations, and philanthropic organizations;
     (b) Provide resources for first year, start-up activities only;
     (c) Require matching funds and services from program partners; and
     (d) Require applicants to describe community interest, the content and proposed outcomes of the program, steps needed to implement the program, the role each partner will play in the program, general proposed budget, and a plan for sustaining the program after the first year.

NEW SECTION.  Sec. 405   A new section is added to chapter 28A.300 RCW to read as follows:
     AFTER-SCHOOL MATHEMATICS SUPPORT PROGRAM. (1) The after-school mathematics support program is created to study the effects of intentional, skilled mathematics support included as part of an existing after-school activity program.
     (2) The office of the superintendent of public instruction shall provide grants to selected community-based, nonprofit organizations that provide after-school programs and include support for students to learn mathematics.
     (3) Grant applicants must demonstrate the capacity to provide assistance in mathematics learning in the following ways:
     (a) Identifying the mathematics content and instructional skill of the staff or volunteers assisting students;
     (b) Identifying proposed learning strategies to be used, which could include computer-based instructional and skill practice programs and tutoring by adults or other students;
     (c) Articulating the plan for connection with school mathematics teachers to coordinate student assistance; and
     (d) Articulating the plan for assessing student and program success.
     (4) Priority will be given to applicants that propose programs to serve middle school and junior high school students.
     (5) The office of the superintendent of public instruction shall evaluate program outcomes and report to the governor and the education committees of the legislature on the outcomes of the grants and make recommendations related to program continuation, program modification, and issues related to program sustainability and possible program expansion. An interim report is due November 1, 2008. The final report is due December 1, 2009.

NEW SECTION.  Sec. 406   MATHEMATICS AND SCIENCE INSTRUCTIONAL COACH PROJECT. (1) A mathematics and science instructional coach demonstration project is authorized to develop, pilot, and refine program elements as a first step in the creation of a new instructional staff professional development program. The mathematics and science instructional coach demonstration project coaching program shall consist of a coach development institute, coaching seminars, coaching activities in schools, and program evaluation.
     (2) The office of the superintendent of public instruction shall develop a mathematics and science instructional coach program that includes an initial coach development experience for new coaches provided through an institute setting, coaching support seminars, and additional coach development services. The office shall draw upon the experiences of coaches in federally supported elementary literacy programs and other successful programs, research and policy briefs on adult professional development, and research that specifically addresses the instructional environments of middle, junior high, and high schools as well as the unique aspects of the fields of mathematics and science.
     (3) The office of the superintendent of public instruction shall design the application process and select the demonstration project participants.
     (4) Schools and school districts participating in the demonstration project shall carefully select the individuals to perform the role of mathematics or science instructional coach. Characteristics to be considered for a successful coach include:
     (a) Expertise in content area;
     (b) Expertise in various instructional methodologies and personalizing learning;
     (c) Personal skills that include skilled listening, questioning, trust-building, and problem-solving;
     (d) Understanding and appreciation for the differences in adult learners and student learners; and
     (e) Capacity for strategic planning and quality program implementation.
     (5) The role of the mathematics or science instructional coach is focused on supporting teachers as they apply knowledge, develop skills, polish techniques, and deepen their understanding of content and instructional practices. This work takes a number of forms including: Individualized professional development, department-wide and school-wide professional development, guidance in student data interpretation, and using assessment to guide instruction. Each coach shall be assigned to two schools as part of this project.
     (6) Project participants have the following responsibilities:
     (a) Mathematics and science coaches shall participate in the coach development institute as well as in coaching support seminars that take place throughout the school year, practice coaching activities as guided by those articulated in the role of the coach in subsection (5) of this section, collect data, and participate in program evaluation activities as requested by the institute pursuant to subsection (7) of this section.
     (b) School and district administrators in districts in which the mathematics and science coaches are practicing shall participate in program evaluation activities.
     (7)(a) The Washington state institute for public policy shall conduct an evaluation of the mathematics and science instructional coach demonstration project in this section. Data shall be collected through various instruments including surveys, program and activity reports, student performance measures, observations, interviews, and other processes. Findings shall include an evaluation of the coach development institute, coaching support seminars, and other coach support activities; recommendations with regard to changes in the characteristics required of the coaches; identification of changes in teacher instruction related to coaching activities; and identification of the satisfaction level with coaching activities as experienced by classroom teachers and administrators.
     (b) The institute for public policy shall report its findings to the governor, the office of the superintendent of public instruction, and the education and fiscal committees of the legislature. An interim report is due November 1, 2008. The final report is due December 1, 2009.
     (8) This section expires September 1, 2010.

PART 5
MATHEMATICS AND SCIENCE STANDARDS AND CURRICULUM

NEW SECTION.  Sec. 501   MATHEMATICS AND SCIENCE REVIEW. (1) The activities in this section strengthen the learning standards that implement the goals of RCW 28A.150.210, improve alignment of school district curriculum to the state standards, and provide assessment tools that link directly to the state's learning standards and curriculum. As the state board of education and the office of the superintendent of public instruction implement the activities in this section, each agency shall provide a status report of activities and progress at the beginning of each calendar quarter, beginning with July 1, 2007, to the governor and the chairs and ranking minority members of the house of representatives and senate education committees.
     (2) By December 2007, the state board of education, in cooperation with the office of the superintendent of public instruction, shall complete the process by which an independent review of the K-12 mathematics and science standards and essential academic learning requirements is conducted.
     (a) The results of each review shall provide findings and recommendations to the superintendent of public instruction regarding changes to the K-12 mathematics and science standards and the essential academic learning requirements. The findings and recommendations shall address the incorporation of international performance standards as may be benchmarked to the content of the trends in international mathematics and science study (TIMSS) and the programme for international student assessment (PISA).
     (b) The review in this section shall satisfy the requirement in RCW 28A.655.070(2) for a periodic revision of the essential academic learning requirements.
     (3) By December 2007, the state board of education shall:
     (a) Incorporate into the state accountability plan the conditions under which school districts are required to use one of the state identified curricula in mathematics or science, or both. The plan shall also describe the conditions for exception to the curriculum requirement. These conditions shall address student performance criteria;
     (b) Under RCW 28A.230.090, amend the high school graduation requirement in mathematics to include a minimum of three credits of mathematics. The state board of education shall describe the mathematics content required within the three credits and shall consider requiring content to include that commonly contained in algebra 2. The state board of education shall also consider:
     (i) An additional requirement to include requiring mathematics to be included in the student's senior year class schedule;
     (ii) Ways to demonstrate mathematics competencies; and
     (iii) Conditions for exceptions to a senior year mathematics requirement.
     (4) By July 2008, the office of the superintendent of public instruction shall:
     (a) Identify no more than three mathematics basic curricula for elementary, middle, junior high, and high school, that align with the new standards resulting from the independent review activities described in this section. Diagnostic and supplemental materials shall also be identified;
     (b) Identify no more than three science basic curricula for elementary, middle, junior high, and high school, that align with the new standards resulting from the independent review activities described in this section. Diagnostic and supplemental materials shall also be identified; and
     (c) Begin the process revising the Washington assessment of student learning mathematics and science assessments at grade levels four through ten as appropriate to align assessment content with the new standards and essential academic learning requirements resulting from the independent reviews provided in subsection (1) of this section.

PART 6
EDUCATOR PREPARATION AND PROFESSIONAL DEVELOPMENT

NEW SECTION.  Sec. 601   A new section is added to chapter 28A.415 RCW to read as follows:
     MATHEMATICS AND SCIENCE TEACHER PROFESSIONAL DEVELOPMENT. (1) Several targeted professional development programs are authorized to further the development of outstanding mathematics and science teaching and learning opportunities in the state of Washington.
     (2) The expected outcomes of this program are:
     (a) Provision of meaningful, targeted professional development for all middle, junior high, and high school teachers of mathematics and science;
     (b) Increased knowledge and instructional skill for mathematics and science teachers;
     (c) Increased use of curriculum materials with supporting diagnostic and supplemental materials that align with state standards;
     (d) Skillful guidance for students participating in alternative assessment activities;
     (e) Increased rigor of mathematics and science course offerings;
     (f) Increased student opportunities for focused, applied mathematics and science classes;
     (g) Increased student success on state achievement measures; and
     (h) Increased student appreciation of the value and uses of mathematics and science knowledge and exploration of mathematics and science-related careers.

NEW SECTION.  Sec. 602   A new section is added to chapter 28A.415 RCW to read as follows:
     PROFESSIONAL DEVELOPMENT LEARNING OPPORTUNITIES. (1) The superintendent of public instruction and the educational service districts shall create a partnership to develop and deliver professional development learning opportunities for educators that fulfill the goals and address the specific targeted activities described in this section. The partnership shall:
     (a) Support school districts by providing professional development leadership, courses, and consultation services to school districts in their implementation of the professional development activities described in this section; and
     (b) Support one another in the delivery of state-level and regional-level professional development activities such as state conferences and regional accountability institutes.
     (2) Each educational service district shall enter into a performance agreement with the superintendent of public instruction to clearly articulate partner responsibilities and to assure fidelity for the delivery of professional development initiatives including job-embedded practices. Components of such performance agreement shall include:
     (a) Participation in the development of various professional development workshops, programs, and activities;
     (b) Characteristics and qualifications of professional development staff supported by the program;
     (c) Methods to ensure consistent delivery of professional development services; and
     (d) Reporting responsibilities related to services provided, program participation, outcomes, and recommendations for service improvement.
     (3) For the 2007-08 and 2008-09 school years, school districts receiving professional development resources are directed to the following activities:
     (a) For middle school and junior high school mathematics teachers:
     (i) During the 2007-08 school year the focus shall be on development of basic mathematics knowledge and instructional skills; and
     (ii) During the 2008-09 school year the focus shall be on implementing new international mathematics standards;
     (b) For middle school and junior high school science teachers:
     (i) During the 2007-08 school year the focus shall be on examination of student science assessment data and identification of science knowledge and skill areas in need of additional instructional attention; and
     (ii) During the 2008-09 school year the focus is on implementing new international science standards;
     (c) For high school mathematics teachers:
     (i) During the 2007-08 school year the focus shall be on implementing state mathematics learning modules, the segmented mathematics class and assessment program, the collection of evidence alternative assessment and basic mathematics knowledge, and instructional skills; and
     (ii) During the 2008-09 school year the focus shall be on implementing new international mathematics standards;
     (d) For high school science teachers:
     (i) During the 2007-08 school year the focus shall be on examination of student science assessment data and identification of science knowledge and skill areas in need of additional instructional attention; and
     (ii) During the 2008-09 school year the focus shall be on implementing new international science standards;
     (e) For the 2007-08 and 2008-09 school years, one mathematics teacher and one science teacher in each middle or junior high school and high school shall be provided specialized professional development to bring new rigor to mathematics and science offerings and/or expand the opportunities for students to take applied mathematics and science courses;
     (f) For the 2007-08 and 2008-09 school years, twenty teachers, from middle, junior high, and high schools, each year shall be provided professional development to implement a specialized science, technology, engineering, and mathematics curriculum in their school. Schools shall apply to the office of the superintendent of public instruction for this program; and
     (g) For fourth and fifth grade mathematics and science teachers:
     (i) During the 2007-08 school year the focus shall be on development of basic mathematics knowledge and instructional skill and improving instruction in science; and
     (ii) During the 2008-09 school year the focus shall be on implementing new international mathematics and science standards.
     (4) The superintendent of public instruction shall develop the methodology for determining the number of mathematics and science teachers in middle, junior high, and high schools within each district for the purposes of providing formula-driven resources for the purposes of implementing subsection (3) of this section.
     (5) School districts receiving resources under this section shall submit reports to the superintendent of public instruction regarding the use of the funds. The superintendent of public instruction and the office of financial management shall collaborate on required report content and format. Information in the report shall include the professional development offered and the number of teachers participating.
     (6) Beginning with the 2009-10 school year, the focus for professional development resources and activities may be adjusted.

Sec. 603   RCW 28A.310.350 and 1977 ex.s. c 283 s 10 are each amended to read as follows:
     The basic core services and cost upon which educational service districts are budgeted shall include, but not be limited to, the following:
     (1) Educational service district administration and facilities such as office space, maintenance and utilities;
     (2) Cooperative administrative services such as assistance in carrying out procedures to abolish sex and race bias in school programs, fiscal services, grants management services, special education services and transportation services;
     (3) Personnel services such as certification/registration services;
     (4) Learning resource services such as audio visual aids;
     (5) Cooperative curriculum services such as health promotion and health education services, in-service training, workshops and assessment; ((and))
     (6) Professional development services identified by statute or the omnibus appropriations act; and
     (7)
Special needs of local education agencies.

NEW SECTION.  Sec. 604   A new section is added to chapter 28A.415 RCW to read as follows:
     SCHOOL DISTRICT LEADERSHIP ACADEMY. (1) Research supports the value of quality school and school district leadership. Effective leadership is critical to improving student learning and transforming underperforming schools and school districts into world-class learning centers.
     (2) A public-private partnership is established to develop, pilot, and implement the Washington state leadership academy to focus on the development and enhancement of personal leadership characteristics and the teaching of effective practices and skills demonstrated by school and district administrators who are successful managers and instructional leaders. It is the goal of the academy to provide state-of-the-art programs and services across the state.
     (3) Academy partners include the state superintendent and principal professional associations, private nonprofit foundations, institutions of higher education, the professional educator standards board, the office of the superintendent of public instruction, educational service districts, and other entities identified by the partners. The partners shall designate an independent organization to act as the fiscal agent for the academy and shall establish a board of directors to oversee and direct the academy's finances, services, and programs. The academy shall be supported by a national research institution with demonstrated expertise in educational leadership.
     (4) Initial development of academy course content and activities shall be supported by private funds. Initial tasks of the academy are to:
     (a) Finalize a comprehensive design of the academy and the development of the curriculum frameworks for a comprehensive leadership development program that includes coursework, practicum, mentoring, and evaluation components;
     (b) Develop curriculum for individual leadership topics;
     (c) Pilot the curriculum and all program components; and
     (d) Modify the comprehensive design, curriculum coursework, practicum, and mentoring programs based on the research results gained from pilot activities.
     (5) The board of directors shall report semiannually to the superintendent of public instruction on the financial contributions provided by foundations and other organizations to support the work of the academy. The board of directors shall report by December 31st each year to the superintendent of public instruction on the programs and services provided, numbers of participants in the various academy activities, evaluation activities regarding program and participant outcomes, and plans for the academy's future development.
     (6) The board of directors shall identify possible areas to better coordinate with and make recommendations for changes in superintendent and principal preparation programs, the administrator licensure system, and continuing education requirements.

NEW SECTION.  Sec. 605   PROFESSIONAL EDUCATOR STANDARDS BOARD DUTIES. (1) The purpose of the duties in this section for the professional educator standards board is to take the next steps in developing quality teaching knowledge and skill in the state's teaching ranks. The duties build upon the current teacher development foundation that requires demonstrated teaching competency, requires evidence of positive impact on student learning, and focuses on furthering state kindergarten through twelfth grade learning goals through instructional skill alignment.
     (2) The professional educator standards board shall:
     (a) By December 2007:
     (i) Adopt new knowledge and skill standards that prepare all individuals seeking residency teacher certification to integrate mathematics across all content areas; and
     (ii) Adopt new certification requirements for individuals seeking residency teacher certification as elementary education or middle level and secondary mathematics teachers to assure adequate content and instructional strategy preparation to teach to the kindergarten through twelfth grades state mathematics and science standards;
     (b) By June 2009:
     (i) Set performance standards and develop, pilot, and implement a uniform and external professional-level certification assessment based on demonstrated teaching skill. In the development of this assessment, consideration shall be given to changes in professional certification program components such as the culminating seminar;
     (ii) Summarize its work in the development of the assessment in (b)(i) of this subsection in the annual reports required by RCW 28A.410.240; and
     (iii) Review and revise the standards for higher education teacher preparation programs to incorporate updated practices to enhance teacher success in a knowledge and skill-based performance system that emphasizes strong content, applied learning, and personal, meaningful connections with students; and
     (c) By December 2009, review and revise as needed teacher preparation standards and requirements to focus on diversity in cultural knowledge and respect.

NEW SECTION.  Sec. 606   FINDINGS--NATIONAL BOARD FOR PROFESSIONAL TEACHING STANDARDS CERTIFICATION. The legislature finds and declares:
     (1) The national board for professional teaching standards has established high and rigorous standards for what highly accomplished teachers should know and be able to do in order to increase student learning results;
     (2) The national board for professional teaching standards certifies teachers who meet these standards through a rigorous, performance-based assessment process;
     (3) A certificate awarded by the national board attests that a teacher has met high and rigorous standards and has demonstrated the ability to make sound professional judgments about how to best meet students' learning needs and effectively help students meet challenging academic standards;
     (4) The process of national board assessment is the most rigorous advanced certification process in the teaching profession; and
     (5) Teachers who attain national board certification should be acknowledged and rewarded in order to encourage more teachers to pursue certification for the benefit of Washington students.

NEW SECTION.  Sec. 607   A new section is added to chapter 28A.405 RCW to read as follows:
     NATIONAL BOARD FOR PROFESSIONAL TEACHING STANDARDS CERTIFICATION--BONUSES. (1) Certificated instructional staff who have attained certification from the national board for professional teaching standards shall receive a bonus each year in which they maintain certification from the national board. The bonus for national board certification is provided in addition to compensation received under a district's salary schedule adopted in accordance with RCW 28A.405.200 and shall not be included in calculations of a district's average salary and associated salary limitations under RCW 28A.400.200.
     (a) The bonus shall be calculated as ten percent of the salary that would be allocated for that teacher under the state salary allocation model published in the omnibus appropriations act; and
     (b) The bonus amount for an individual shall not be less than the bonus amount received by that individual in the 2006-07 school year.
     (2) Certificated instructional staff who have attained certification from the national board for professional teaching standards shall be eligible for one or more bonuses in addition to that provided by subsection (1) of this section if the individual:
     (a) Is in an instructional assignment in a school in which at least seventy percent of the students qualify for the free and reduced-price lunch program; and
     (b) Has attained certification from the national board for professional teaching standards in middle level and/or high school level mathematics and/or science and is in a mathematics and/or science instructional assignment in a school in which at least seventy percent of the students qualify for the free and reduced-price lunch program.
     (3) The amount of the additional bonus under subsection (2) of this section for those meeting the qualifications of subsection (2)(a) of this section is five thousand dollars. The amount of the additional bonus for those meeting the qualifications of subsection (2)(a) and (b) of this section is ten thousand dollars.

Sec. 608   RCW 28A.660.005 and 2001 c 158 s 1 are each amended to read as follows:
     (1) The legislature finds and declares:
     (((1))) (a) Teacher qualifications and effectiveness are the most important influences on student learning in schools((.));
     (((2))) (b) Preparation of individuals to become well-qualified, effective teachers must be high quality((.));
     (((3))) (c) Teachers who complete high-quality alternative route programs with intensive field-based experience, adequate coursework, and strong mentorship do as well or better than teachers who complete traditional preparation programs((.));
     (((4))) (d) High-quality alternative route programs can provide more flexibility and expedience for individuals to transition from their current career to teaching((.));
     (((5))) (e) High-quality alternative route programs can help school districts fill subject matter shortage areas and areas with shortages due to geographic location((.));
     (((6))) (f) Regardless of route, all candidates for residency teacher certification must meet the high standards required by the state; and
     (g) Teachers need an adequate background in subject matter content if they are to teach it well, and should hold full, appropriate credentials in those subject areas
.
     (2) The legislature recognizes widespread concerns about the potential for teacher shortages and finds that classified instructional staff in public schools, current certificated staff, and unemployed certificate holders represent a great untapped resource for recruiting ((the)) more teachers ((of the future)) in critical shortage areas.

NEW SECTION.  Sec. 609   A new section is added to chapter 28A.660 RCW to read as follows:
     (1) The pipeline for paraeducators conditional scholarship program is created. Participation is limited to paraeducators without a college degree who have at least three years of classroom experience. It is anticipated that candidates enrolled in this program will complete their associate of arts degree in a direct transfer agreement mathematics education program at a community and technical college in two years or less and become eligible for a mathematics endorsement and special education endorsement or a mathematics endorsement and an English as a second language endorsement via route one in the alternative routes to teacher certification program provided in this chapter.
     (2) Entry requirements for candidates include:
     (a) District or building validation of qualifications, including three years of successful student interaction and leadership as a classified instructional employee; and
     (b) Acceptance into a direct transfer agreement mathematics education program at a community and technical college.

NEW SECTION.  Sec. 610   A new section is added to chapter 28A.660 RCW to read as follows:
     (1) The retooling to teach mathematics and science conditional scholarship program is created. Participation is limited to current K-12 teachers and individuals having an elementary education certificate but who are not employed in positions requiring an elementary education certificate. It is anticipated that candidates enrolled in this program will complete the requirements for a mathematics or science endorsement, or both, in two years or less.
     (2) Entry requirements for candidates include:
     (a) Current K-12 teachers shall pursue a middle level mathematics or science, or secondary mathematics or science endorsement.
     (b) Individuals having an elementary education certificate but who are not employed in positions requiring an elementary education certificate shall pursue an endorsement in middle level mathematics or science only.

Sec. 611   RCW 28A.660.050 and 2004 c 23 s 5 are each amended to read as follows:
     The ((alternative route)) conditional scholarship programs ((is)) in this chapter are created under the following guidelines:
     (1) The programs shall be administered by the higher education coordinating board. In administering the programs, the higher education coordinating board has the following powers and duties:
     (a) To adopt necessary rules and develop guidelines to administer the programs;
     (b) To collect and manage repayments from participants who do not meet their service obligations; and
     (c) To accept grants and donations from public and private sources for the programs.
     (2) Requirements for participation in the ((alternative route)) conditional scholarship programs are as provided in this subsection (2).
     (a) The alternative route conditional scholarship program
is limited to interns of the partnership grant programs under RCW 28A.660.040. In order to receive conditional scholarship awards, recipients shall:
     (i) Be accepted and maintain enrollment in alternative certification routes through the partnership grant program;
     (ii) Continue to make satisfactory progress toward completion of the alternative route certification program and receipt of a residency teaching certificate; and
     (iii) Receive no more than the annual amount of the scholarship, not to exceed eight thousand dollars, for the cost of tuition, fees, and educational expenses, including books, supplies, and transportation for the alternative route certification program in which the recipient is enrolled. The board may adjust the annual award by the average rate of resident undergraduate tuition and fee increases at the state universities as defined in RCW 28B.10.016.
     (b) The pipeline for paraeducators conditional scholarship program is limited to qualified paraeducators as provided by section 609 of this act. In order to receive conditional scholarship awards, recipients shall:
     (i) Be accepted and maintain enrollment in a direct transfer agreement mathematics education program at a community and technical college for no more than two years and attain an associate of arts degree;
     (ii) Continue to make satisfactory progress toward completion of an associate of arts degree. This progress requirement is a condition for eligibility into a route one program of the alternative routes to teacher certification program for a mathematics endorsement and special education endorsement or a mathematics endorsement and an English as a second language endorsement; and
     (iii) Receive no more than the annual amount of the scholarship, not to exceed four thousand dollars, for the cost of tuition, fees, and educational expenses, including books, supplies, and transportation for the alternative route certification program in which the recipient is enrolled. The board may adjust the annual award by the average rate of tuition and fee increases at the state community and technical colleges.
     (c) The retooling to teach mathematics and science conditional scholarship program is limited to current K-12 teachers and individuals having an elementary education certificate but who are not employed in positions requiring an elementary education certificate as provided by section 610 of this act. In order to receive conditional scholarship awards:
     (i) Individuals currently employed as teachers shall pursue a middle level mathematics or science, or secondary mathematics or science endorsement; or
     (ii) Individuals who are certificated with an elementary education endorsement, but not employed in positions requiring an elementary education certificate, shall pursue an endorsement in middle level mathematics or science, or both; and
     (iii) Individuals shall use one of the pathways to endorsement processes to receive a mathematics or science endorsement, or both, which shall include passing a mathematics or science endorsement test, or both tests, plus observation and completing applicable coursework to attain the proper endorsement; and
     (iv) Individuals shall receive no more than the annual amount of the scholarship, not to exceed three thousand dollars, for the cost of tuition, test fees, and educational expenses, including books, supplies, and transportation for the endorsement pathway being pursued.

     (3) The Washington professional educator standards board shall select ((interns)) individuals to receive conditional scholarships.
     (((3) In order to receive conditional scholarship awards, recipients shall be accepted and maintain enrollment in alternative certification routes through the partnership grant program, as provided in RCW 28A.660.040. Recipients must continue to make satisfactory progress towards completion of the alternative route certification program and receipt of a residency teaching certificate.))
     (4) For the purpose of this chapter, a conditional scholarship is a loan that is forgiven in whole or in part in exchange for service as a certificated teacher employed in a Washington state K-12 public school. The state shall forgive one year of loan obligation for every two years a recipient teaches in a public school. Recipients ((that)) who fail to continue a course of study leading to residency teacher certification or cease to teach in a public school in the state of Washington in their endorsement area are required to repay the remaining loan principal with interest.
     (5) Recipients who fail to fulfill the required teaching obligation are required to repay the remaining loan principal with interest and any other applicable fees. The higher education coordinating board shall adopt rules to define the terms for repayment, including applicable interest rates, fees, and deferments.
     (6) ((To the extent funds are appropriated for this specific purpose, the annual amount of the scholarship is the annual cost of tuition; fees; and educational expenses, including books, supplies, and transportation for the alternative route certification program in which the recipient is enrolled, not to exceed eight thousand dollars. The board may adjust the annual award by the average rate of resident undergraduate tuition and fee increases at the state universities as defined in RCW 28B.10.016.
     (7)
)) The higher education coordinating board may deposit all appropriations, collections, and any other funds received for the program in this chapter in the ((student loan)) future teachers conditional scholarship account authorized in RCW ((28B.102.060)) 28B.102.080.

Sec. 612   RCW 28B.102.080 and 2004 c 58 s 9 are each amended to read as follows:
     (1) The future teachers conditional scholarship account is created in the custody of the state treasurer. An appropriation is not required for expenditures of funds from the account. The account is not subject to allotment procedures under chapter 43.88 RCW except for moneys used for program administration.
     (2) The board shall deposit in the account all moneys received for the future teachers conditional scholarship and loan repayment program and for conditional loan programs under chapter 28A.660 RCW. The account shall be self-sustaining and consist of funds appropriated by the legislature for the future teachers conditional scholarship and loan repayment program, private contributions to the program, ((and)) receipts from participant repayments from the future teachers conditional scholarship and loan repayment program, and conditional loan programs established under chapter 28A.660 RCW. Beginning July 1, 2004, the board shall also deposit into the account: (a) All funds from the institution of higher education loan account that are traceable to any conditional scholarship program for teachers or prospective teachers established by the legislature before June 10, 2004; and (b) all amounts repaid by individuals under any such program.
     (3) Expenditures from the account may be used solely for conditional loans and loan repayments to participants in the future teachers conditional scholarship and loan repayment program established by this chapter, conditional scholarships for participants in programs established in chapter 28A.660 RCW, and costs associated with program administration by the board.
     (4) Disbursements from the account may be made only on the authorization of the board.

PART 7
SCHOOL FINANCE

NEW SECTION.  Sec. 701   CERTIFICATED INSTRUCTIONAL STAFF PAY STRUCTURE. (1) The legislature finds that the current pay structure for certificated instructional staff must be updated to address and acknowledge the depth of content knowledge, range of instructional skill, and intensity of practice experienced by teachers and other instructional staff in our state.
     (2) The office of financial management shall lead a committee to develop recommendations for a new comprehensive expertise and incentive pay structure for K-12 staff. The director of the office of financial management or the director's designee shall serve as chair of the committee. Committee members shall include, but not be limited to:
     (a) Four legislators, with one appointed by each of the major caucuses in the house of representatives and senate;
     (b) The superintendent of public instruction or the superintendent's designee;
     (c) A member of the professional educator standards board;
     (d) A member from each statewide education organization representing teachers, principals, superintendents, school directors, human resource professionals, and parents; and
     (e) Business organizations.
     (3) The recommendations shall include a proposed expertise and incentive pay structure that includes:
     (a) Changes to the certificated instructional staff salary allocation model to include pay for performance, knowledge, and skills;
     (b) Elements to recognize assignments that are difficult; and
     (c) Recognition for the professional teaching level certificate in the salary allocation model.
     (4) The committee's recommendations shall also include a plan to implement the expertise and incentive pay structure for K-12 staff. The plan shall include necessary support elements to implement the pay structure, such as a professional development delivery system that focuses on identified areas of teacher knowledge and skill and addresses the transition from the current salary allocation model to the expertise and incentive pay structure.
     (5) The committee may create ad hoc subgroups as needed to complete specified tasks or to compile research and expertise on selected subjects.
     (6) The office of financial management shall submit the committee's final recommendations, including the expertise and incentive pay structure, to the governor and fiscal committees of the legislature by December 15, 2008.

NEW SECTION.  Sec. 702   A new section is added to chapter 28A.300 RCW to read as follows:
     FINANCIAL HEALTH AND MONITORING--BUDGET REVIEW AND APPROVAL PROCESS. (1) The legislature finds that the existing school district budget review system focuses on current school year budget implementation and preparation of the ensuing school year budget and does not provide a systematic look of longer-range budget issues, including any indication of impending financial problems in school districts and the financial impact of long-term contractual agreements. Parents, students, taxpayers, school employees, and school administrators need a financial monitoring system that considers long- term budgeting issues and commitments, and provides early warning of school district financial health concerns. Once financial concerns and issues are identified, districts should receive early, practical assistance.
     (2) The office of the superintendent of public instruction and the office of financial management shall jointly develop and implement a school district financial health and monitoring system.
     (3) The office of the superintendent of public instruction and the office of financial management shall identify up to six system measures that shall be established for a public financial reporting system, including related data collection content and processes. In addition, the office of the superintendent of public instruction and the office of financial management shall jointly develop a financial health outlook rating system that places school districts in one of three financial health categories based on their ratings on the financial measures.
     (4) The office of the superintendent of public instruction and the office of financial management shall present proposed system measures and a financial health outlook rating system to the governor by November 1, 2007. Subject to agreement between the governor and the superintendent of public instruction on the measures and the rating system, the financial health and monitoring system shall be implemented during the 2008-09 school year.
     (5) The financial health outlook rating category of each school district shall be published annually. In addition, updates shall be published throughout the year if subsequent data to the school district's financial reporting measures cause a change in the district's financial health categorization.
     (6) The office of the superintendent of public instruction, with regional financial specialists contracted through educational service districts, shall provide progressive levels of technical assistance to school districts in the lowest two categories on the financial health outlook rating system.
     (7) The office of the superintendent of public instruction and the office of financial management shall jointly review the current school district budget submittal and approval process and develop recommendations for changes to the budget approval and financial oversight system. The recommendations shall include a system of progressive state assistance and potential interventions and oversight in school districts identified in the lowest two categories on the financial health outlook rating system.
     (8) The superintendent of public instruction shall submit a report summarizing the review and reporting recommendations in subsection (7) of this section to the governor and the education and fiscal committees of the legislature by November 15, 2007.

HIGHER EDUCATION
PART 8
WASHINGTON LEARNS SCHOLARSHIP PROGRAM

NEW SECTION.  Sec. 801   WASHINGTON LEARNS SCHOLARSHIP. (1) The Washington learns scholarship program is established to encourage high school graduation and college completion among low-income students and students from families in which neither parent attained a baccalaureate degree.
     (2) Maximum scholarship award amounts shall be as provided in this section.
     (a) For students attending two or four-year institutions of higher education as defined in RCW 28B.10.016, the value of the award may not exceed the difference between the student's tuition, fees, books, and materials, less the value of any state or institutional financial aid the student receives for tuition, fees, books, and materials.
     (b) For students attending private four-year institutions of higher education in Washington, the award amount may not exceed the representative average of awards granted to students in public research universities in Washington.
     (c) For students attending private vocational schools in Washington, the award amount may not exceed the representative average of awards granted to students in public community and technical colleges in Washington.
     (d) Recipients may receive no more than four full-time years' worth of scholarship awards. All eligibility for the scholarship expires upon receipt of a baccalaureate degree or five calendar years after college enrollment.

NEW SECTION.  Sec. 802   ELIGIBILITY. (1) To be eligible to apply for a Washington learns scholarship established in section 801 of this act, a student must be enrolled in the Washington learns scholarship program.
     (a) To be enrolled, a student must sign a pledge during seventh or eighth grade that includes a commitment to graduate from high school with at least a "C" average and no felony convictions. The pledge must be witnessed by a parent or guardian and forwarded to the higher education coordinating board by mail or electronically, as indicated on the pledge form.
     (b) At the time the pledge is signed, the student must be eligible for free or reduced-price lunches, or will be a first generation college student, meaning that neither parent has attained a baccalaureate degree.
     (c) The student must be a member of the high school graduating class of 2012 or later.
     (d) The student must complete the application for the scholarship while in high school.
     (2) To receive and maintain scholarship eligibility, a student must:
     (a) Be eligible for resident tuition and fee rates as defined in RCW 28B.15.012 and 28B.15.013;
     (b) Have fulfilled the terms and conditions of the pledge described in this section;
     (c) Have a family income that is at or below the state median family income in the calendar year preceding college attendance;
     (d) Enter a public or private institution of higher education in Washington that is accredited by an accrediting agency recognized by rule of the higher education coordinating board. The student must enroll in an institution of higher education within one calendar year of high school graduation, with exceptions made for illness, military service, or other extenuating circumstances;
     (e) Maintain satisfactory academic progress as defined by the institution of higher education in which the student is enrolled; and
     (f) File for state and federal financial aid by completing and submitting the free application for federal student aid (FAFSA) in a timely manner. The higher education coordinating board shall set and publicize annual deadlines.

NEW SECTION.  Sec. 803   ADMINISTRATION. (1) The office of the superintendent of public instruction shall:
     (a) Notify elementary, middle, and junior high school students, parents, teachers, counselors, and principals about the Washington learns scholarship program; and
     (b) Work with the higher education coordinating board to develop application collection and student tracking procedures.
     (2) The higher education coordinating board shall:
     (a) Establish administrative rules and policies to carry out the Washington learns scholarship program;
     (b) Develop and distribute, to all schools with students enrolled in grade seven or eight, a pledge form that can be completed and returned electronically or by mail by the student or the school to the higher education coordinating board;
     (c) Provide information to all middle and junior high schools to inform them about the program and the eligibility and application requirements;
     (d) Develop and implement a student application, selection, and notification process for scholarships;
     (e) Track scholarship recipients to ensure continued eligibility and determine student compliance for awarding of scholarships;
     (f) Subject to appropriation, deposit funds into the state educational trust fund;
     (g) Purchase tuition units under the advanced college tuition payment program in chapter 28B.95 RCW to be owned and held in trust by the board, for the purpose of scholarship awards as provided for in this subsection (2); and
     (h) Distribute scholarship funds, in the form of tuition units purchased under the advanced college tuition payment program in chapter 28B.95 RCW or through direct payments from the state educational trust fund, to institutions of higher education on behalf of scholarship recipients identified by the board, as long as recipients maintain satisfactory academic progress.

PART 9
GET READY FOR MATH AND SCIENCE SCHOLARSHIP PROGRAM

NEW SECTION.  Sec. 901   GET READY FOR MATH AND SCIENCE SCHOLARSHIP--PUBLIC-PRIVATE PARTNERSHIP. (1) The GET ready for math and science scholarship program is established. Scholarship recipients may enroll in any public or private institution of higher education in Washington that is accredited by an accrediting agency recognized by rule of the board. The scholarship may be awarded to eligible students who achieve level four on the mathematics or science Washington assessment of student learning in the tenth grade and who enter qualified programs at a qualified institution of higher education as defined in section 902 of this act. The scholarship award amount may not exceed the cost of tuition and mandatory fees for up to one hundred eighty quarter credits, or the semester equivalent, in a public research university in Washington.
     (2) A public-private partnership shall be developed to administer the scholarship, with the private partner being a private nonprofit foundation.

NEW SECTION.  Sec. 902   DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Board" means the higher education coordinating board.
     (2) "GET units" means tuition units under the advanced college tuition payment program in chapter 28B.95 RCW.
     (3) "Program administrator" means the private nonprofit foundation that is the private partner in the public-private partnership under this chapter.
     (4) "Qualified program" means the qualified mathematics or science-related degree program determined by the board and the program administrator under section 907 of this act.

NEW SECTION.  Sec. 903   ELIGIBILITY. (1) To be eligible to apply for a GET ready for math and science scholarship under this chapter, a student must:
     (a) Be eligible for resident tuition and fee rates as defined in RCW 28B.15.012 and 28B.15.013;
     (b) Have achieved level four on the mathematics or science Washington assessment of student learning in the tenth grade;
     (c) Declare the intent to enter a qualified program at an institution of higher education in Washington;
     (d) Declare the intent to work in Washington state for at least three years after graduation from college in an occupation related to the college program from which the student will graduate; and
     (e) Have a family income that is at or below one hundred twenty-five percent of the state median family income at the time the application is submitted and for up to the previous two years.
     (2) In order to receive and maintain scholarship eligibility, a student must:
     (a) Enter a qualified institution of higher education in Washington state within one calendar year of high school graduation;
     (b) Maintain satisfactory academic progress as defined by the institution of higher education in which the student is enrolled;
     (c) Take at least one college-level mathematics or science course each term before being accepted into a qualified program; and
     (d) Enter a qualified program as soon as practicable after program admission prerequisites are fulfilled but not later than the first semester of the junior year in college.

NEW SECTION.  Sec. 904   OFFICE OF THE SUPERINTENDENT OF PUBLIC INSTRUCTION--DUTIES. The office of the superintendent of public instruction shall:
     (1) Notify elementary, middle, junior high, and high school students, parents, teachers, counselors, and principals about the GET ready for math and science scholarship program;
     (2) Notify students who achieve level four of the mathematics or science Washington assessment of student learning in tenth grade that they may be eligible to apply for a GET ready for math and science scholarship and provide them with contact information for the program administrator; and
     (3) Notify the program administrator and the board, as early as possible during the fall of the students' junior year in high school, of the names and contact information of all students who achieved level four on the mathematics or science Washington assessment of student learning during tenth grade so that the program administrator may provide them with scholarship information.

NEW SECTION.  Sec. 905   HIGHER EDUCATION COORDINATING BOARD--DUTIES. The board shall:
     (1) Purchase GET units to be owned and held in trust by the board, for the purpose of scholarship awards as provided for in this section;
     (2) Distribute scholarship funds, in the form of GET units or through direct payments from the GET ready for math and science scholarship account, to institutions of higher education on behalf of scholarship recipients identified by the program administrator, as long as recipients continue to meet the requirements of section 903(2) of this act;
     (3) Provide the program administrator with annual reports of enrollment, contact, and graduation information of scholars, provided they have given permission for the board to do so;
     (4) Track program graduates to ensure that they work in Washington state in a mathematics or science-related occupation for at least three years after college graduation, or pay back the scholarship, prorated based on the length of time worked in a mathematics or science-related occupation in Washington. Students may postpone their in-state work requirement in order to attend graduate school in a qualified program for up to three years after completion of an undergraduate qualified program.

NEW SECTION.  Sec. 906   PROGRAM ADMINISTRATOR--DUTIES. The program administrator shall:
     (1) Raise funds from the private and nonprofit sectors to match state funds appropriated for the GET ready for math and science scholarship program;
     (2) Develop and implement a student application, selection, and notification process for scholarships;
     (3) Notify institutions of higher education of scholarship recipients who will attend their institutions and inform them of the terms of the students' eligibility; and
     (4) Report to private donors on the program outcomes and facilitate contact between students and donors, if students have given the foundation permission to do so, in order for donors to offer summer employment opportunities, internships, career information and job opportunities after graduation.

NEW SECTION.  Sec. 907   QUALIFIED PROGRAMS. The board and the program administrator shall determine qualified mathematics and science-related college degree programs for this scholarship program. The list of eligible programs shall be updated biennially. However, once a student has been accepted into an eligible mathematics or science degree program, the student may continue in that program, even if it is subsequently removed from the list of qualified programs.

NEW SECTION.  Sec. 908   GET READY FOR MATH AND SCIENCE SCHOLARSHIP ACCOUNT. (1) The GET ready for math and science scholarship account is created in the custody of the state treasurer.
     (2) The board shall deposit into the account all money received for the GET ready for math and science scholarship program from appropriations and private sources. The account shall be self-sustaining.
     (3) Expenditures from the account shall be used for scholarships to eligible students and for purchases of GET units. Purchased GET units shall be owned and held in trust by the board. Expenditures from the account shall be an equal match of state appropriations and private funds raised by the program administrator.
     (4) With the exception of the operating costs associated with the management of the account by the treasurer's office as authorized in chapter 43.79A RCW, the account shall be credited with all investment income earned by the account.
     (5) Disbursements from the account are exempt from appropriations and the allotment provisions of chapter 43.88 RCW.
     (6) Disbursements from the account shall be made only on the authorization of the board.

Sec. 909   RCW 43.79A.040 and 2006 c 311 s 21 and 2006 c 120 s 2 are each reenacted and amended to read as follows:
     (1) Money in the treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.
     (2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.
     (3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.
     (4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.
     (b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The Washington promise scholarship account, the college savings program account, the Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the foster care scholarship endowment fund, the foster care endowed scholarship trust fund, the students with dependents grant account, the basic health plan self-insurance reserve account, the contract harvesting revolving account, the Washington state combined fund drive account, the commemorative works account, the Washington international exchange scholarship endowment fund, the developmental disabilities endowment trust fund, the energy account, the fair fund, the fruit and vegetable inspection account, the future teachers conditional scholarship account, the game farm alternative account, the GET ready for math and science scholarship account, the grain inspection revolving fund, the juvenile accountability incentive account, the law enforcement officers' and fire fighters' plan 2 expense fund, the local tourism promotion account, the produce railcar pool account, the regional transportation investment district account, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility account, the self-insurance revolving fund, the sulfur dioxide abatement account, the children's trust fund, the Washington horse racing commission Washington bred owners' bonus fund account, the Washington horse racing commission class C purse fund account, the individual development account program account, the Washington horse racing commission operating account (earnings from the Washington horse racing commission operating account must be credited to the Washington horse racing commission class C purse fund account), the life sciences discovery fund, and the reading achievement account. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.
     (c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the advanced environmental mitigation revolving account, the city and county advance right-of-way revolving fund, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.
     (5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

PART 10
REGIONAL OPPORTUNITY GRANT PROGRAM

NEW SECTION.  Sec. 1001   REGIONAL OPPORTUNITY GRANT PROGRAM--INTENT. The legislature finds that:
     (1) The economic trends of globalization and technological change are increasing the demand for higher and differently skilled workers than in the past;
     (2) Increasing Washington's economic competitiveness requires increasing the supply of skilled workers in the state;
     (3) Improving the labor market competitiveness of all Washington residents requires that all residents have access to postsecondary education; and
     (4) Community and technical college workforce training programs and Washington state apprenticeship and training council-approved apprenticeship programs provide effective and efficient pathways for people to enter high-wage, high-skilled careers while also meeting the needs of the economy.

NEW SECTION.  Sec. 1002   A new section is added to chapter 28B.50 RCW to read as follows:
     REGIONAL OPPORTUNITY GRANT PROGRAM. (1) The college board shall develop and implement a workforce education program known as the regional opportunity grant program to provide funding for students enrolled at public community and technical colleges in regional opportunity grant-eligible programs of study determined through the process described in section 1003 of this act. Students enrolled in the regional opportunity grant program are eligible for:
     (a) Funding for tuition and mandatory fees at the public community and technical college rate, prorated if the credit load is less than full time, paid directly to the educational institution; and
     (b) An additional allowance for books, tools, and supplies.
     (2) Funding under this section is limited to a maximum forty-five credits in a regional opportunity grant-eligible program of study, including required related courses. No student may receive regional opportunity grant funding for more than forty-five credits or for more than three years from initial receipt of grant funds in one or a combination of programs.

NEW SECTION.  Sec. 1003   A new section is added to chapter 28B.50 RCW to read as follows:
     REGIONAL OPPORTUNITY GRANT PROGRAM--ELIGIBILITY--GOALS--COLLABORATION WITH THE HIGHER EDUCATION COORDINATING BOARD. (1) To be eligible for participation in the regional opportunity grant program established in section 1002 of this act, a student must be eligible for resident tuition and fee rates as defined in RCW 28B.15.012 and 28B.15.013, be enrolled in a vocational program of study, and have a family income that is at or below the state median family income using the state need grant schedule for the same academic year.
     (2) The college board shall develop goals for student retention and completion. It shall set annual performance measures and targets and monitor the performance at all public community and technical colleges.
     (3) The college board and the higher education coordinating board shall work together to ensure that students participating in the regional opportunity grant program receive all other state and federal financial aid to which they are entitled while receiving a regional opportunity grant.
     (4) The college board and the higher education coordinating board shall document the amount of regional opportunity grant assistance and the types and amounts of other sources of financial aid received by participating students. Annually, they shall produce a summary of the data.
     (5) The college board shall:
     (a) Develop the program and begin enrolling students no later than January 2008; and
     (b) Submit a progress report to appropriate committees of the legislature by December 1, 2008.

NEW SECTION.  Sec. 1004   A new section is added to chapter 28B.50 RCW to read as follows:
     REGIONAL OPPORTUNITY GRANT PROGRAM--COLLEGE BOARD DUTIES. The college board, in partnership with business, labor, and the workforce training and education coordinating board, shall:
     (1) Identify job specific training programs offered by qualified postsecondary institutions that lead to a credential, certificate, or degree in high-demand occupations, which are occupations where employer demand for workers exceeds the supply of qualified job applicants throughout the state or in a specific region;
     (2) Designate recognized credentials, certificates, and degrees as "regional opportunity grant-eligible programs of study"; and
     (3) Market the credentials, certificates, and degrees to potential students, businesses, and apprenticeship programs as a way for individuals to advance in their careers and to better meet the needs of industry.

PART 11
EXPANDING ELIGIBILITY FOR THE STATE NEED GRANT PROGRAM

NEW SECTION.  Sec. 1101   The legislature finds that many adults who wish to improve their skills or complete a college degree also have to work full time to support a family or are single parents, and are able to attend only one class per term. This should not disqualify them from the state's primary financial aid program if they would otherwise be eligible based on their income.

Sec. 1102   RCW 28B.15.820 and 2004 c 275 s 66 are each amended to read as follows:
     (1) Each institution of higher education, including technical colleges, shall deposit a minimum of three and one-half percent of revenues collected from tuition and services and activities fees in an institutional financial aid fund that is hereby created and which shall be held locally. Moneys in the fund shall be used only for the following purposes: (a) To make guaranteed long-term loans to eligible students as provided in subsections (3) through (8) of this section; (b) to make short-term loans as provided in subsection (9) of this section; or (c) to provide financial aid to needy students as provided in subsection (10) of this section.
     (2) An "eligible student" for the purposes of subsections (3) through (8) and (10) of this section is a student registered for at least ((six)) three credit hours or the equivalent, who is eligible for resident tuition and fee rates as defined in RCW 28B.15.012 and 28B.15.013, and who is a "needy student" as defined in RCW 28B.92.030.
     (3) The amount of the guaranteed long-term loans made under this section shall not exceed the demonstrated financial need of the student. Each institution shall establish loan terms and conditions which shall be consistent with the terms of the guaranteed loan program established by 20 U.S. Code Section 1071 et seq., as now or hereafter amended. All loans made shall be guaranteed by the Washington student loan guaranty association or its successor agency. Institutions are hereby granted full authority to operate as an eligible lender under the guaranteed loan program.
     (4) Before approving a guaranteed long-term loan, each institution shall analyze the ability of the student to repay the loan based on factors which include, but are not limited to, the student's accumulated total education loan burdens and the employment opportunities and average starting salary characteristics of the student's chosen fields of study. The institution shall counsel the student on the advisability of acquiring additional debt, and on the availability of other forms of financial aid.
     (5) Each institution is responsible for collection of guaranteed long-term loans made under this section and shall exercise due diligence in such collection, maintaining all necessary records to insure that maximum repayments are made. Institutions shall cooperate with other lenders and the Washington student loan guaranty association, or its successor agency, in the coordinated collection of guaranteed loans, and shall assure that the guarantability of the loans is not violated. Collection and servicing of guaranteed long-term loans under this section shall be performed by entities approved for such servicing by the Washington student loan guaranty association or its successor agency: PROVIDED, That institutions be permitted to perform such servicing if specifically recognized to do so by the Washington student loan guaranty association or its successor agency. Collection and servicing of guaranteed long-term loans made by community colleges under subsection (1) of this section shall be coordinated by the state board for community and technical colleges and shall be conducted under procedures adopted by the state board.
     (6) Receipts from payment of interest or principal or any other subsidies to which institutions as lenders are entitled, that are paid by or on behalf of borrowers of funds under subsections (3) through (8) of this section, shall be deposited in each institution's financial aid fund and shall be used to cover the costs of making the guaranteed long-term loans under this section and maintaining necessary records and making collections under subsection (5) of this section: PROVIDED, That such costs shall not exceed five percent of aggregate outstanding loan principal. Institutions shall maintain accurate records of such costs, and all receipts beyond those necessary to pay such costs, shall be deposited in the institution's financial aid fund.
     (7) The governing boards of the state universities, the regional universities, and The Evergreen State College, and the state board for community and technical colleges, on behalf of the community colleges and technical colleges, shall each adopt necessary rules and regulations to implement this section.
     (8) First priority for any guaranteed long-term loans made under this section shall be directed toward students who would not normally have access to educational loans from private financial institutions in Washington state, and maximum use shall be made of secondary markets in the support of loan consolidation.
     (9) Short-term loans, not to exceed one year, may be made from the institutional financial aid fund to students enrolled in the institution. No such loan shall be made to any student who is known by the institution to be in default or delinquent in the payment of any outstanding student loan. A short-term loan may be made only if the institution has ample evidence that the student has the capability of repaying the loan within the time frame specified by the institution for repayment.
     (10) Any moneys deposited in the institutional financial aid fund that are not used in making long-term or short-term loans may be used by the institution for locally-administered financial aid programs for needy students, such as need-based institutional employment programs or need-based tuition and fee scholarship or grant programs. These funds shall be used in addition to and not to replace institutional funds that would otherwise support these locally-administered financial aid programs. First priority in the use of these funds shall be given to needy students who have accumulated excessive educational loan burdens. An excessive educational loan burden is a burden that will be difficult to repay given employment opportunities and average starting salaries in the student's chosen fields of study. Second priority in the use of these funds shall be given to needy single parents, to assist these students with their educational expenses, including expenses associated with child care and transportation.

Sec. 1103   RCW 28B.92.080 and 2004 c 275 s 39 are each amended to read as follows:
     For a student to be eligible for a state need grant a student must:
     (1) Be a "needy student" or "disadvantaged student" as determined by the board in accordance with RCW 28B.92.030 (3) and (4).
     (2) Have been domiciled within the state of Washington for at least one year.
     (3) Be enrolled or accepted for enrollment ((on at least a half-time basis)) in at least three credits at an institution of higher education in Washington as defined in RCW 28B.92.030(1).
     (4) Have complied with all the rules ((and regulations)) adopted by the board for the administration of this chapter.

PART 12
STATEWIDE TUITION POLICY

NEW SECTION.  Sec. 1201   A new section is added to chapter 28B.15 RCW to read as follows:
     TUITION--FUNDING LEVELS--LIMITATIONS. (1) Beginning with the 2007-08 academic year and ending with the 2016-17 academic year, tuition fees charged to full-time resident undergraduate students may increase no greater than seven percent over the previous academic year in any institution of higher education. Annual reductions or increases in full-time tuition fees for resident undergraduate students shall be as provided in the omnibus appropriations act, within the seven percent increase limit established in this section. To the extent that state appropriations combined with tuition and fee revenues are insufficient to achieve the total per-student funding goals established in subsection (2) of this section, the legislature may revisit state appropriations, authorized enrollment levels, and changes in tuition fees for any given fiscal year.
     (2) The state shall adopt as its goal total per-student funding levels, from state appropriations plus tuition and fees, of at least the sixtieth percentile of total per-student funding at similar public institutions of higher education in the global challenge states. The office of financial management shall develop a funding trajectory for each four-year institution of higher education and for the community and technical college system as a whole that when combined with tuition and fees revenue allows the state to achieve its funding goal for each four-year institution and the community and technical college system as a whole no later than fiscal year 2017. The state shall not reduce enrollment levels below fiscal year 2007 budgeted levels in order to improve or alter the per-student funding amount at any four-year institution of higher education or the community and technical college system as a whole. The state recognizes that each four-year institution of higher education and the community and technical college system as a whole have different funding requirements to achieve desired performance levels, and that increases to the total per-student funding amount may need to exceed the minimum funding goal.
     (3) By September 1st of each year beginning 2008, the office of financial management shall report to the governor, the higher education coordinating board, and appropriate committees of the legislature with updated estimates of the total per-student funding level that represents the sixtieth percentile of funding for comparable institutions of higher education in the global challenge states, and the progress toward that goal that was made for each of the public institutions of higher education.
     (4) As used in this section, "global challenge states" has the meaning in section 1402 of this act.

NEW SECTION.  Sec. 1202   A new section is added to chapter 28B.15 RCW to read as follows:
     BILLING DISCLOSURES TO STUDENTS. In addition to the requirement in RCW 28B.76.300(4), institutions of higher education shall disclose to their undergraduate resident students on the tuition billing statement, in dollar figures for a full-time equivalent student: (1) The full cost of instruction, (2) the amount collected from student tuition and fees, and (3) the difference between the amounts for the full cost of instruction and the student tuition and fees, noting that the difference between the cost and tuition was paid by state tax funds and other moneys.

PART 13
HIGHER EDUCATION COORDINATING BOARD

Sec. 1301   RCW 28B.76.050 and 2004 c 275 s 3 are each amended to read as follows:
     The members of the board, except ((the chair serving on June 13, 2002, and)) the student member, shall serve for terms of four years, the terms expiring on June 30th of the fourth year of the term ((except that in the case of initial members, two shall be appointed to two-year terms, three shall be appointed to three-year terms, and three shall be appointed to four-year terms)). The student member shall hold his or her office for a term of one year ((from)) starting on the first day of July. ((The chair serving on June 13, 2002, shall serve at the pleasure of the governor.))

Sec. 1302   RCW 28B.76.090 and 2004 c 275 s 4 are each amended to read as follows:
     ((The board shall employ a director and may delegate agency management to the director.)) Effective July 1, 2007, an executive director shall be appointed by the governor from a list of three names submitted by the board to the governor. If requested by the governor, the board shall submit additional names for the governor's consideration until an appointment is made. The executive director shall serve at the pleasure of the ((board)) governor, shall be the executive officer of the board, and shall, under the board's supervision, administer the provisions of this chapter. The executive director shall, with the approval of the board: (1) Employ necessary deputy and assistant directors and other exempt staff under chapter 41.06 RCW who shall serve at his or her pleasure on such terms and conditions as he or she determines and (2) subject to the provisions of chapter 41.06 RCW, appoint and employ such other employees as may be required for the proper discharge of the functions of the board. The executive director shall exercise such additional powers, other than rule making, as may be delegated by the board by resolution. In fulfilling the duties under this chapter, the board shall make extensive use of those state agencies with responsibility for implementing and supporting postsecondary education plans and policies including but not limited to appropriate legislative groups, the postsecondary education institutions, the office of financial management, the work force training and education coordinating board, and the state board for community and technical colleges. Outside consulting and service agencies may also be employed. The board may compensate these groups and consultants in appropriate ways.

Sec. 1303   RCW 28B.76.210 and 2004 c 275 s 7 are each amended to read as follows:
     (1) The board shall collaborate with the four-year institutions including the council of presidents, the community and technical college system, and when appropriate the work force training and education coordinating board, the superintendent of public instruction, and the independent higher educational institutions to identify budget priorities and levels of funding for higher education, including the two and four-year institutions of higher education and state financial aid programs. It is the intent of the legislature that recommendations from the board reflect not merely the sum of budget requests from multiple institutions, but prioritized funding needs for the overall system of higher education.
     (2) By December of each odd-numbered year, the board shall distribute guidelines which outline the board's fiscal priorities to the institutions and the state board for community and technical colleges. The institutions and the state board for community and technical colleges shall submit an outline of their proposed budgets, identifying major components, to the board no later than ((August)) July 1st of each even-numbered year.
     (3) The board shall review and evaluate the operating and capital budget requests from four-year institutions and the community and technical college system based on how the requests align with the board's budget priorities, the missions of the institutions, and the statewide strategic master plan for higher education under RCW 28B.76.200.
     (4) The board shall submit recommendations on the proposed budgets and on the board's budget priorities to the office of financial management before ((November)) October 1st of each even-numbered year, and to the legislature by January 1st of each odd-numbered year.
     (5) Institutions and the state board for community and technical colleges shall submit any supplemental budget requests and revisions to the board at the same time they are submitted to the office of financial management. The board shall submit recommendations on the proposed supplemental budget requests to the office of financial management by November 1st and to the legislature by January 1st.

NEW SECTION.  Sec. 1304   RCW 28B.76.100 (Advisory council) and 2004 c 275 s 2 & 1985 c 370 s 9 are each repealed.

P-20 DATA
PART 14
EDUCATION RESEARCH

NEW SECTION.  Sec. 1401   A new section is added to chapter 43.41 RCW to read as follows:
     EDUCATION DATA CENTER. (1) The education data center shall be established in the office of financial management. The education data center shall conduct collaborative analyses of education issues across the P-20 system, which system includes the department of early learning, the superintendent of public instruction, the professional educator standards board, the state board of education, the state board for community and technical colleges, the workforce training and education coordinating board, the higher education coordinating board, public baccalaureate institutions of higher education, and the employment security department in their collaborative analysis of early learning, K-12, and higher education programs. The education data center shall be considered an education research agency under applicable federal and state statutes for purposes of receiving and processing student record data for research purposes.
     (2) The education data center shall:
     (a) Coordinate with other state education agencies to compile education data and complete P-20 research projects;
     (b) Track enrollment and outcomes through the public centralized higher education enrollment system;
     (c) Assist other state educational agencies' collaborative efforts to establish benchmarks for Washington compared to the global challenge states as defined in section 1402 of this act;
     (d) Assist other state educational agencies' collaborative efforts to develop a long-range enrollment plan for higher education including estimates to meet demographic and workforce needs; and
     (e) Provide research support that focuses on student transitions within and among the early learning, K-12, and higher education sectors in the P-20 system.
     (3) The department of early learning, superintendent of public instruction, professional educator standards board, state board of education, state board for community and technical colleges, workforce training and education coordinating board, higher education coordinating board, public baccalaureate institutions, and employment security department shall work with the education data center to develop data sharing and research agreements, consistent with applicable security and confidentiality requirements, to facilitate the work of the center. The education data center shall make data from collaborative analyses available to the education agencies and institutions that contribute data to the education data center to the extent allowed by federal and state security and confidentiality requirements applicable to the data of each contributing agency or institution.

NEW SECTION.  Sec. 1402   A new section is added to chapter 43.41 RCW to read as follows:
     GLOBAL CHALLENGE STATES. The global challenge states are the top performing states on the new economy index published by the progressive policy institute as of the effective date of this section. The new economy index ranks states on indicators of their potential to compete in the new economy. At least once every five years, the office of financial management shall determine if changes to the list of global challenge states are appropriate. The office of financial management shall report its findings to the governor and the legislature.

NEW SECTION.  Sec. 1403   TEACHER PAY SYSTEM REVIEW. The office of financial management and the superintendent of public instruction shall jointly conduct a review of teacher pay systems in the global challenge states as defined in section 1402 of this act. The office of financial management and the superintendent of public instruction shall develop a methodology for comparing teacher salaries among the global challenge states. The office of financial management shall report to the governor and the legislature on the findings from this review and the initial set of teacher salary comparisons among the global challenge states by January 10, 2008.

PART 15
MISCELLANEOUS PROVISIONS

NEW SECTION.  Sec. 1501   SUBHEADINGS, PART HEADINGS, AND CAPTIONS NOT LAW. Subheadings, part headings, and captions used in this act are not any part of the law.

NEW SECTION.  Sec. 1502   Sections 801 through 803 of this act constitute a new chapter in Title 28B RCW.

NEW SECTION.  Sec. 1503   Sections 901 through 908 of this act constitute a new chapter in Title 28B RCW.

NEW SECTION.  Sec. 1504   Sections 501 and 1302 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 immediately.

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