BILL REQ. #:  H-0509.2 

Read first time 01/19/09.   Referred to Committee on Education.

     AN ACT Relating to establishing the opportunity internship program for high school students; amending RCW 28B.92.030, 28B.92.060, 28B.92.080, and 28B.92.110; adding new sections to chapter 28C.18 RCW; adding a new section to chapter 28B.92 RCW; adding a new section to chapter 82.04 RCW; and creating new sections.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that moving low-income high school students efficiently through a progression of career exploration, internships in high-demand occupations, and completion of postsecondary education benefits these students by increasing the relevance of their high school education, increasing their connection to the working world, accelerating their entry into a high-demand occupation, and increasing their earnings.
     (2) The legislature further finds that in a difficult economy, youth unemployment rates increase sharply. Providing paid internships to high school students creates not only an immediate short-term economic stimulus in local communities, but also creates the potential to sustain that economic recovery by making students better prepared for postsecondary education and employment in the types of occupations that will generate economic growth over the long term.
     (3) The legislature further finds that moving students efficiently through secondary and postsecondary education reduces state expenditures by improving on-time graduation and postsecondary retention and increases state revenues by providing for graduates with higher lifelong earnings and taxpaying potential.
     (4) Employers and local economies benefit from the development of a long-term relationship with potential employees and a more consistent pipeline of skilled workers into the occupations for which they are having the most trouble finding skilled workers.
     (5) Therefore the legislature intends to provide incentives for local consortia of employers, labor organizations, educational institutions, and workforce and economic development councils to use existing funds to build educational and employment pipelines to high-demand occupations for low-income high school students.

NEW SECTION.  Sec. 2   A new section is added to chapter 28C.18 RCW to read as follows:
     (1) The opportunity internship program is created under sections 2 through 6 of this act. The purpose of the program is to provide incentives for opportunity internship consortia to use existing resources to build educational and employment pipelines to high-demand occupations in targeted industries for low-income high school students. Four types of incentives are provided through the program:
     (a) Each opportunity internship graduate shall be eligible for up to one year of financial assistance for postsecondary education in the high employer demand program of study of the graduate as provided in sections 5 and 9 of this act;
     (b) Each opportunity internship graduate who completes postsecondary education in the high employer demand program of study of the graduate shall receive a job interview with an employer participating in an opportunity internship consortium that has agreed to provide such interviews;
     (c) Each employer participating in an opportunity internship consortium that offers a paid internship to a low-income high school student through the opportunity internship program may receive a credit for the amount of salary and wages paid for the internship against business and occupation taxes owed as provided under section 12 of this act; and
     (d) For each opportunity internship graduate who completes postsecondary education in the high employer demand program of study of the graduate, obtains employment in a high-demand occupation, and remains employed for at least six months, the participating opportunity internship consortium shall be eligible to receive an incentive payment as provided in section 6 of this act.
     (2) The opportunity internship program shall be administered by the board and the board may adopt rules to implement the program.

NEW SECTION.  Sec. 3   A new section is added to chapter 28C.18 RCW to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 2 through 6 of this act.
     (1) "High-demand occupation" means an occupation with a substantial number of current or projected employment opportunities and pays a starting salary or wages of not less than thirty thousand dollars per year.
     (2) "High employer demand program of study" means an undergraduate or graduate certificate, apprenticeship, or degree program in which the number of students prepared for employment per year from in-state institutions or programs is substantially less than the number of projected job openings per year in that field, either statewide or in a substate region.
     (3) "Low-income high school student" means a student who is enrolled in grades ten, eleven, or twelve in a public high school and who qualifies for federal free or reduced-price meals. If a student qualifies at the time the student begins participating in the opportunity internship program, the student remains eligible even if the student does not receive free or reduced-price meals thereafter. To participate in the program, the student must remain enrolled in high school until the student receives a high school diploma.
     (4) "Opportunity internship consortium" means a local consortium formed for the purpose of participating in the opportunity internship program and which may be composed of a local workforce development council, economic development council, area high schools, community or technical colleges, apprenticeship councils, private vocational schools licensed under chapter 28C.10 RCW, public and private four-year institutions of higher education, employers in targeted industries, and labor organizations.
     (5) "Opportunity internship graduate" means a low-income high school student who successfully completes an opportunity internship program and graduates from high school.
     (6) "Targeted industry" means a business or industry identified by a local workforce development council as having high-demand occupations that require candidates to have completed a high employer demand program of study.

NEW SECTION.  Sec. 4   A new section is added to chapter 28C.18 RCW to read as follows:
     (1) Opportunity internship consortia may apply to the board to offer an opportunity internship program.
     (a) The board may select those consortia that demonstrate the strongest commitment and readiness to implement a high quality opportunity internship program for low-income high school students. The board shall place a priority on consortia with demonstrated experience working with similar populations of students and demonstrated capacity to assist a large number of students through the progression of internship, high school graduation, postsecondary education, and retention in a high-demand occupation. The board shall place a priority on programs that emphasize secondary career and technical education and nonbaccalaurate postsecondary education; however, programs that target four-year postsecondary degrees are eligible to participate.
     (b) The board shall enter into a contract with each consortium selected to participate in the program. No more than ten consortia per year shall be selected to participate in the program, and to the extent possible, the board shall assure a geographic distribution of consortia in regions across the state emphasizing a variety of targeted industries. Each consortium may select no more than one hundred low-income high school students per year to participate in the program.
     (2) Under the terms of an opportunity internship program contract, an opportunity internship consortium shall commit to the following activities which shall be conducted using existing federal, state, local, or private funds available to the consortium:
     (a) Identify high-demand occupations in targeted industries for which opportunity internships shall be developed and provided;
     (b) Develop and implement the components of opportunity internships, including paid internships in high-demand occupations with employers in the consortium, mentoring and guidance for students who participate in the program, and a guarantee of a job interview with a participating employer for all opportunity internship graduates who successfully complete postsecondary education in the high employer demand program of study;
     (c) Once the internship components have been developed, conduct outreach efforts to inform low-income high school students about high-demand occupations, the opportunity internship program, options for postsecondary education in high employer demand programs of study, and the incentives and opportunities provided to students who participate in the program;
     (d) Obtain appropriate documentation of the low-income status of students who participate in the program;
     (e) Maintain communication with opportunity internship graduates of the consortium who enroll in postsecondary education in high employer demand programs of study; and
     (f) Submit an annual report to the board on the progress of and participation in the opportunity internship program of the consortium.
     (3) Opportunity internship consortia are encouraged to:
     (a) Provide opportunity internships during the summer months to encourage students to stay enrolled in high school;
     (b) Designate the local workforce development council as fiscal agent for the opportunity internship program contract;
     (c) Work with area high schools to incorporate the opportunity internship program into comprehensive guidance and counseling programs such as the navigation 101 program; and
     (d) Coordinate the opportunity internship program with other workforce development and postsecondary education programs, including opportunity grants, the college bound scholarship program, federal workforce investment act initiatives, and college access challenge grants.

NEW SECTION.  Sec. 5   A new section is added to chapter 28C.18 RCW to read as follows:
     (1) On an annual basis, each opportunity internship consortium shall provide the board with a list of the opportunity internship graduates from the consortium. The list shall indicate the high employer demand program of study for each graduate.
     (2) The board shall compile the lists from all consortia and shall notify the higher education coordinating board of the eligibility of each graduate on the lists to receive a state need grant under chapter 28B.92 RCW if the graduate enrolls in the high employer demand program of study of the graduate within one year of high school graduation.

NEW SECTION.  Sec. 6   A new section is added to chapter 28C.18 RCW to read as follows:
     (1) On an annual basis, each opportunity internship consortium shall provide the board with a list of the opportunity internship graduates from the consortium who have completed postsecondary education in the high employer demand program of study of the graduate, obtained employment in a high-demand occupation, and remained employed for at least six months.
     (2) The board shall verify the information on the lists from each consortium. Subject to funds appropriated for this purpose, the board shall allocate to each consortium an incentive payment of two thousand dollars for each graduate on the consortium's list. In the event that insufficient funds are appropriated to provide a full payment, the board shall prorate payments across all consortia and shall notify the governor and the legislature of the amount of the shortfall.
     (3) Opportunity internship consortia shall use the incentive payments to continue operating opportunity internship programs.

Sec. 7   RCW 28B.92.030 and 2004 c 275 s 35 are each amended to read as follows:
     As used in this chapter:
     (1) "Institution or institutions of higher education" means:
     (a) Any public university, college, community college, or technical college operated by the state of Washington or any political subdivision thereof; or
     (b) Any other university, college, school, or institute in the state of Washington offering instruction beyond the high school level which is a member institution of an accrediting association recognized by rule of the board for the purposes of this section: PROVIDED, That any institution, branch, extension or facility operating within the state of Washington which is affiliated with an institution operating in another state must be a separately accredited member institution of any such accrediting association, or a branch of a member institution of an accrediting association recognized by rule of the board for purposes of this section, that is eligible for federal student financial aid assistance and has operated as a nonprofit college or university delivering on-site classroom instruction for a minimum of twenty consecutive years within the state of Washington, and has an annual enrollment of at least seven hundred full-time equivalent students: PROVIDED FURTHER, That no institution of higher education shall be eligible to participate in a student financial aid program unless it agrees to and complies with program rules and regulations adopted pursuant to RCW 28B.92.150.
     (2) "Financial aid" means loans and/or grants to needy students enrolled or accepted for enrollment as a student at institutions of higher education.
     (3) "Needy student" means a post high school student of an institution of higher education who demonstrates to the board the financial inability, either through the student's parents, family and/or personally, to meet the total cost of board, room, books, and tuition and incidental fees for any semester or quarter. "Needy student" also means an opportunity internship graduate as defined by section 3 of this act who enrolls in the high employer demand program of study of the graduate as determined under section 5 of this act within one year of high school graduation.
     (4) "Disadvantaged student" means a post high school student who by reason of adverse cultural, educational, environmental, experiential, familial or other circumstances is unable to qualify for enrollment as a full time student in an institution of higher education, who would otherwise qualify as a needy student, and who is attending an institution of higher education under an established program designed to qualify the student for enrollment as a full time student.
     (5) "Board" means the higher education coordinating board.

Sec. 8   RCW 28B.92.060 and 2007 c 404 s 2 are each amended to read as follows:
     In awarding need grants, the board shall proceed substantially as follows: PROVIDED, That nothing contained herein shall be construed to prevent the board, in the exercise of its sound discretion, from following another procedure when the best interest of the program so dictates:
     (1) The board shall annually select the financial aid award recipients from among Washington residents applying for student financial aid who have been ranked according to:
     (a) Financial need as determined by the amount of the family contribution; and
     (b) Other considerations, such as whether the student is a former foster youth or an opportunity internship graduate.
     (2) The financial need of the highest ranked students shall be met by grants depending upon the evaluation of financial need until the total allocation has been disbursed. Funds from grants which are declined, forfeited or otherwise unused shall be reawarded until disbursed, except that eligible former foster youth and opportunity internship graduates shall be assured receipt of a grant.
     (3) A student shall be eligible to receive a state need grant for up to five years, or the credit or clock hour equivalent of five years, or up to one hundred twenty-five percent of the published length of time of the student's program. A student may not start a new associate degree program as a state need grant recipient until at least five years have elapsed since earning an associate degree as a need grant recipient, except that a student may earn two associate degrees concurrently. Qualifications for renewal will include maintaining satisfactory academic progress toward completion of an eligible program as determined by the board. Should the recipient terminate his or her enrollment for any reason during the academic year, the unused portion of the grant shall be returned to the state educational grant fund by the institution according to the institution's own policy for issuing refunds, except as provided in RCW 28B.92.070.
     (4) In computing financial need, the board shall determine a maximum student expense budget allowance, not to exceed an amount equal to the total maximum student expense budget at the public institutions plus the current average state appropriation per student for operating expense in the public institutions. Any child support payments received by students who are parents attending less than half-time shall not be used in computing financial need.
     (5)(a) A student who is enrolled in three to six credit-bearing quarter credits, or the equivalent semester credits, may receive a grant for up to one academic year before beginning a program that leads to a degree or certificate.
     (b) An eligible student enrolled on a less-than-full-time basis shall receive a prorated portion of his or her state need grant for any academic period in which he or she is enrolled on a less-than-full-time basis, as long as funds are available.
     (c) An institution of higher education may award a state need grant to an eligible student enrolled in three to six credit-bearing quarter credits, or the semester equivalent, on a provisional basis if:
     (i) The student has not previously received a state need grant from that institution;
     (ii) The student completes the required free application for federal student aid;
     (iii) The institution has reviewed the student's financial condition, and the financial condition of the student's family if the student is a dependent student, and has determined that the student is likely eligible for a state need grant; and
     (iv) The student has signed a document attesting to the fact that the financial information provided on the free application for federal student aid and any additional financial information provided directly to the institution is accurate and complete, and that the student agrees to repay the institution for the grant amount if the student submitted false or incomplete information.
     (6) As used in this section, "former foster youth" means a person who is at least eighteen years of age, but not more than twenty-four years of age, who was a dependent of the department of social and health services at the time he or she attained the age of eighteen.

NEW SECTION.  Sec. 9   A new section is added to chapter 28B.92 RCW to read as follows:
     (1) The board shall work with institutions of higher education to assure that the institutions are aware of the eligibility of opportunity internship graduates for an award under this chapter.
     (2) If an opportunity internship graduate enrolls, within one year of high school graduation, in the high employer demand program of study of the graduate and in an institution of higher education or an apprenticeship program with related and supplemental instruction provided through an institution of higher education, the graduate is eligible to receive a state need grant for up to one year. The graduate shall not be required to be enrolled on at least a half-time basis. The related and supplemental instruction provided to a graduate through an apprenticeship program shall not be required to lead to a degree or certificate.
     (3) Except for the eligibility criteria for an opportunity internship graduate that are provided under this section, other rules pertaining to award of a state need grant apply.
     (4) Nothing in this section precludes an opportunity internship graduate from being eligible to receive additional state need grants after the one-year grant provided in this section if the graduate meets other criteria as a needy or disadvantaged student.

Sec. 10   RCW 28B.92.080 and 2007 c 404 s 1 are each amended to read as follows:
     Except for opportunity internship graduates whose eligibility is provided under section 9 of this act, 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 at an institution of higher education in Washington as defined in RCW 28B.92.030(1)((.));
     (4) Until June 30, 2011, to the extent funds are specifically appropriated for this purpose, and subject to any terms and conditions specified in the omnibus appropriations act, be enrolled or accepted for enrollment for at least three quarter credits or the equivalent semester credits at an institution of higher education in Washington as defined in RCW 28B.92.030(1)((.)); and
     (5) Have complied with all the rules ((and regulations)) adopted by the board for the administration of this chapter.

Sec. 11   RCW 28B.92.110 and 2004 c 275 s 40 are each amended to read as follows:
     A state financial aid recipient under this chapter shall apply the award toward the cost of tuition, room, board, books, and fees at the institution of higher education attended. An opportunity internship graduate who enters an apprenticeship program may use the award for the costs of related and supplemental instruction provided through an institution of higher education, tools, and other costs associated with the apprenticeship program.

NEW SECTION.  Sec. 12   A new section is added to chapter 82.04 RCW to read as follows:
     (1) Subject to the provisions of this section, a credit is authorized against the tax otherwise due under this chapter for persons participating in an opportunity internship consortium that offer paid internships to low-income high school students through an opportunity internship program.
     (2) The amount of the credit is the amount paid during the reporting period as salary and wages to low-income high school students for the opportunity internships, multiplied by 1.5 percent.
     (3) A credit earned during one reporting period may be carried over to subsequent reporting periods. Credits carried over must be applied to tax liability before new credits. No refunds may be granted for credits under this section.
     (4) For the purposes of this section, "low-income high school student" and "opportunity internship consortium" are as defined under section 3 of this act and "opportunity internship program" shall be a program established under sections 2 through 6 of this act.

NEW SECTION.  Sec. 13   (1) The workforce training and education coordinating board shall conduct an outcome evaluation of opportunity internship programs. At a minimum, the analysis shall examine the financial benefits of on-time graduation, youth employment while in high school, postsecondary education enrollment and completion, and adult employment in high-demand occupations compared to the local and state costs of the programs.
     (2) The board shall submit a preliminary analysis to the governor and the education and higher education committees of the legislature by December 1, 2012, and a final analysis by December 1, 2014.