BILL REQ. #:  H-2636.2 

Read first time 04/14/11.   Referred to Committee on Ways & Means.

     AN ACT Relating to creating the opportunity scholarship board to assist middle-income students and invest in high employer demand programs; amending RCW 28B.76.525, 28B.76.526, 28B.76.540, 28B.92.010, 28B.92.020, 28B.92.040, 28B.92.060, 28B.92.080, 28B.92.082, 28B.92.084, 28B.119.030, 28B.133.010, 28B.133.020, and 28C.18.166; adding a new section to chapter 82.32 RCW; adding a new chapter to Title 28B RCW; creating new sections; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The legislature finds that, despite increases in degree production, there remain acute shortages in high employer demand programs of study, particularly in the science, technology, engineering, and mathematics (STEM) and health care fields of study. According to the workforce training and education coordinating board, seventeen percent of Washington businesses had difficulty finding job applicants in 2010. Eleven thousand employers did not fill a vacancy because they lacked qualified job applicants. Fifty-nine percent of projected job openings in Washington state from now until 2017 will require some form of postsecondary education and training.
     It is the intent of the legislature to provide jobs and opportunity by making Washington the place where the world's most productive companies find the world's most talented people. The legislature intends to accomplish this through the creation of the opportunity scholarship and the opportunity expansion programs to help mitigate the impact of tuition increases, increase the number of baccalaureate degrees in high employer demand and other programs, and invest in programs and students to meet market demands for a knowledge-based economy while filling middle-income jobs with a sufficient supply of skilled workers.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Board" means the higher education coordinating board.
     (2) "Eligible education and training programs" means high employer demand and other programs of study as determined by the opportunity scholarship board.
     (3) "Eligible expenses" means reasonable expenses associated with the costs of acquiring an education such as tuition, books, equipment, fees, room and board, and other expenses as determined by the program administrator.
     (4) "Eligible student" means a resident student who:
     (a) Has been accepted into an eligible education or training program leading to a baccalaureate degree;
     (b) Declares an intention to obtain a baccalaureate degree; and
     (c) Has a family income at or below one hundred twenty-five percent of the state median family income at the time the student applies for an opportunity scholarship.
     (5) "High employer demand program of study" has the same meaning as provided in RCW 28B.50.030.
     (6) "Participant" means an eligible student who has received a scholarship under the opportunity scholarship program.
     (7) "Program administrator" means the private nonprofit corporation that is registered under Title 24 RCW and qualified as a tax-exempt entity under section 501(c)(3) of the federal internal revenue code.
     (8) "Resident student" has the same meaning as provided in RCW 28B.15.012.
     (9) "Satisfied" means paid-in-full.
     (10) "Scholarship" means a loan that is forgiven in whole if the recipient completes an eligible education and training program.

NEW SECTION.  Sec. 3   (1) The opportunity scholarship board is created. The opportunity scholarship board consists of seven members:
     (a) Two members, not legislators, one appointed by the president of the senate and one appointed by the speaker of the house of representatives;
     (b) One member appointed by the governor; and
     (c) Four foundation or business and industry representatives appointed by the governor from among the state's most productive industries such as aerospace, manufacturing, health sciences, information technology, and others.
     (2) Board members shall hold their offices for a term of four years from the first day of September and until their successors are appointed. No more than the terms of two members may expire simultaneously on the last day of August in any one year.
     (3) The members of the opportunity scholarship board shall elect one of the business and industry representatives to serve as chair.
     (4) Five members of the board constitute a quorum for the transaction of business. In case of a vacancy, or when an appointment is made after the date of expiration of the term, the governor or the president of the senate or the speaker of the house of representatives, depending upon which made the initial appointment to that position, shall fill the vacancy for the remainder of the term of the board member whose office has become vacant or expired.
     (5) The opportunity scholarship board shall be staffed by the program administrator.
     (6) The purpose of the opportunity scholarship board is to provide oversight and guidance for the opportunity expansion and the opportunity scholarship programs and to fulfill the duties and responsibilities under this chapter.
     (7) By December 1, 2011, the opportunity scholarship board shall report to the governor and the appropriate committees of the legislature with recommendations as to a source or sources of funds for the opportunity expansion program in addition to the voluntary contributions of the high technology research and development tax credit under section 9 of this act.

NEW SECTION.  Sec. 4   (1) The program administrator, under contract with the board, shall staff the opportunity scholarship board and shall have the duties and responsibilities provided in this chapter.
     (2) With respect to the opportunity scholarship program, the program administrator shall:
     (a) Establish and manage two separate accounts into which to receive grants and contributions from private sources as well as state matching funds, and from which to disburse scholarship funds to participants;
     (b) Solicit and accept grants and contributions from private sources for deposit into one or both of the two accounts created in this subsection (2)(b) in accordance with this subsection (2)(b):
     (i) The "scholarship account," from which principal may be invaded, and from which scholarship moneys must be disbursed beginning no later than December 1, 2011, and thereafter on an annual basis beginning no later than May 1, 2012, and every May 1st thereafter, regardless of whether state matching funds have yet been received;
     (ii) The "endowment account," from which scholarship moneys may be disbursed from earnings only in years when:
     (A) The state match has been made into both the scholarship and the endowment account;
     (B) The state appropriations for the opportunity award program under RCW 28B.92.010 meet or exceed state appropriations for the opportunity award program made in the 2011-2013 biennium, adjusted for inflation, and eligibility for opportunity award recipients is at least seventy percent of state median family income; and
     (C) The state has demonstrated progress toward the goal of 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, as defined, measured, and reported in RCW 28B.15.068. In any year in which the office of financial management reports that the state has not made progress toward this goal, no new scholarships may be awarded. In any year in which the office of financial management reports that the percentile of total per-student funding is less than the sixtieth percentile and at least five percent less than the prior year, pledges of future grants and contributions may, at the request of the donor, be released and grants and contributions already received refunded to the extent that opportunity scholarship awards already made can be fulfilled from the funds remaining in the endowment account; and
     (iii) At least fifty percent of all grants and contributions must be deposited into the scholarship account until such time as twenty million dollars have been deposited into the account, after which time the opportunity scholarship board must determine the division between the two accounts in light of the need for a long-term funding mechanism and the short-term needs of families and students in Washington;
     (c) Provide proof of receipt of grants and contributions from private sources to the board, identifying the amounts received by name of private source and date, and whether the amounts received were deposited into the scholarship or the endowment account;
     (d) Make an assessment of the reasonable annual eligible expenses associated with eligible education and training programs identified by the opportunity scholarship board;
     (e) Determine the dollar difference between tuition fees charged by institutions of higher education in the 2008-09 academic year and the academic year for which an opportunity scholarship is being distributed;
     (f) Develop and implement an application, selection, and notification process for awarding opportunity scholarships;
     (g) Determine the annual amount of the opportunity scholarship for each selected participant. The annual amount shall be at least one thousand dollars or the amount determined under (e) of this subsection, whichever is greater, but may be increased on an income-based, sliding scale basis up to the amount necessary to cover all reasonable annual eligible expenses as assessed pursuant to (d) of this subsection, or to encourage participation in baccalaureate degree programs identified by the opportunity scholarship board;
     (h) Create and use forms that clearly notify participants, and require participants to acknowledge, that an opportunity scholarship is a loan that is forgiven in whole if the recipient completes an eligible education and training program;
     (i) Distribute scholarship funds to selected participants. Once awarded, and to the extent funds are available for distribution, an opportunity scholarship shall be automatically renewed until the participant completes the program or has taken the credit or clock hour equivalent of one hundred twenty-five percent of the published length of time of the participant's program, whichever occurs first, and as long as the participant annually submits documentation of filing both a free application for federal student aid and for available federal education tax credits;
     (j) Notify institutions of scholarship recipients who will attend their institutions and inform them of the terms of the students' eligibility;
     (k) Provide the opportunity scholarship board, the board, the governor, and appropriate committees of the legislature with an annual report regarding scholarships awarded, enrollment, and completion or graduation; and
     (l) Provide the board with complete and timely information and documentation necessary for the collection and management of repayments.
     (3) With respect to the opportunity expansion program, the program administrator shall:
     (a) Assist the opportunity scholarship board in developing and implementing an application, selection, and notification process for making opportunity expansion awards; and
     (b) Solicit and accept grants and contributions from private sources for opportunity expansion awards.

NEW SECTION.  Sec. 5   (1) The opportunity scholarship program is established.
     (2) The purpose of this conditional scholarship program is to provide scholarships that will help low and middle-income Washington residents earn baccalaureate degrees in high employer demand and other programs of study and encourage them to remain in the state to work. The program must be designed for both students starting at two-year institutions of higher education and intending to transfer to four-year institutions of higher education and students starting at four-year institutions of higher education.
     (3) The opportunity scholarship board shall determine which programs of study, including but not limited to high employer demand programs, are eligible for purposes of the opportunity scholarship.
     (4) The source of funds for the program shall be a combination of private grants and contributions and state matching funds. A state match may be earned under this section for private contributions made on or after the effective date of this section. A state match, up to a maximum of fifty million dollars annually, shall be provided beginning the later of January 1, 2014, or January 1st next following the end of the fiscal year in which collections of state retail sales and use tax, state business and occupation tax, and state public utility tax exceed, by ten percent the amounts collected from these tax resources in the fiscal year that ended June 30, 2008, as determined by the department of revenue.

NEW SECTION.  Sec. 6   (1) The board shall:
     (a) Develop rules and guidelines for scholarship repayment, approved leaves of absence, deferments, and exceptions to recognize extenuating circumstances that may impact students;
     (b) Determine and establish the interest rate in rule; and
     (c) Collect and manage repayments from participants who do not meet their obligations under this chapter.
     (2) Participants in the opportunity scholarship program who are awarded scholarships incur an obligation to repay the scholarship, with interest, unless they complete the eligible education or training program for which they have been awarded a scholarship.
     (3) The period for repayment must commence no later than six months from the date the participant discontinues the course of study or training. Provisions for deferral of payment shall be determined by the board.
     (4) Participants who are unable to pay the full amount due must enter into a payment arrangement with the board for repayment including interest. The maximum period for repayment is ten years.
     (5) The board is responsible for collection of repayments made under this section and shall exercise due diligence in the collection, maintaining all necessary records to ensure that maximum repayments are made. Collection and servicing of repayments under this section must be pursued using the full extent of the law, including wage garnishment if necessary, and must be performed by entities approved for such servicing by the Washington student loan guaranty association or its successor agency. The board is responsible to forgive all or parts of such repayments under the criteria established in this section and must maintain all necessary records of forgiven payments.
     (6) Receipts from the payment of principal or interest or any other subsidies to which the board is entitled, that are paid by or on behalf of participants under this section, must be deposited with the board and must be used to cover the costs of maintaining necessary records and making collections under subsection (5) of this section. The board must maintain accurate records of these costs, and all receipts beyond those necessary to pay such costs must be remitted to the opportunity scholarship account and used to grant scholarships to eligible students.
     (7) The board may make exceptions to the conditions for participation and repayment obligations should circumstances beyond the control of individual participants warrant such exceptions.

NEW SECTION.  Sec. 7   (1) The opportunity scholarship account is created in the custody of the state treasurer as a nonappropriated account to be used solely and exclusively for the opportunity scholarship program created in section 5 of this act. The purpose of the account is to provide matching funds for the opportunity scholarship program.
     (2) Revenues to the account shall consist of appropriations by the legislature into the account, remittances from the board pursuant to section 6(6) of this act, and any gifts, grants, or donations received by the director of the board for this purpose.
     (3) No expenditures from the account may be made except upon receipt of proof, by the director of the board from the program administrator, of private contributions to the opportunity scholarship program. Expenditures, in the form of matching funds, may not exceed the total amount of private contributions.
     (4) Only the director of the board or the director's designee may authorize expenditures from the opportunity scholarship account.

NEW SECTION.  Sec. 8   (1) The opportunity expansion program is established.
     (2) The opportunity scholarship board shall select institutions of higher education to receive opportunity expansion awards. In so doing, the opportunity scholarship board must:
     (a) Solicit, receive, and evaluate proposals from institutions of higher education that are designed to directly increase the number of baccalaureate degrees produced in high employer demand and other programs of study, with a strong emphasis on serving students who received their high school diploma or GED in Washington or are adult Washington residents who are returning to school to gain a baccalaureate degree;
     (b) Develop criteria for evaluating proposals and awarding funds to the proposals deemed most likely to increase the number of baccalaureate degrees and degrees produced in high employer demand and other programs of study;
     (c) Give priority to proposals that include a partnership between public and private partnership entities that leverage additional private funds;
     (d) Give priority to proposals that are innovative, efficient, and cost-effective;
     (e) Consult and operate in consultation with existing higher education stakeholders, including but not limited to: Faculty, labor, student organizations, and relevant higher education agencies; and
     (f) Determine which proposals to improve and accelerate the production of baccalaureate degrees in high employer demand and other programs of study will receive opportunity expansion awards for the following state fiscal year, notify the state treasurer, and announce the awards.
     (3) The state treasurer, at the direction of the opportunity scholarship board, must distribute the funds that have been awarded to the institutions of higher education from the opportunity expansion account.
     (4) Once awarded pursuant to the process in subsection (3) of this section, the amount of the award may be included in the institution's base budget in subsequent years upon a showing that the recipient institution of higher education has met or exceeded the targets set in its original proposal for increasing the number of high employer demand and other degrees.
     (5) Institutions of higher education receiving awards under this section may not supplant existing general fund state revenues with opportunity expansion awards.
     (6) Annually, the office of financial management shall report to the opportunity scholarship board, the governor, and the relevant committees of the legislature regarding the:
     (a) Increase in the number of degrees in high employer demand and other programs of study awarded by institutions of higher education over the average of the preceding ten academic years; and
     (b) Percentage of Washington households with incomes in the middle-income bracket or higher. For purposes of this section, "middle-income bracket" means household incomes between two hundred and five hundred percent of the 2010 federal poverty level, as determined by the United States department of health and human services for a family of four, adjusted annually for inflation.
     (7) In its comprehensive plan, the workforce training and education coordinating board shall include specific strategies to reach the goal of increasing the percentage of Washington households living in the middle-income bracket or higher.

NEW SECTION.  Sec. 9   A new section is added to chapter 82.32 RCW to read as follows:
     A person eligible for the high technology research and development tax credit under RCW 82.04.4452 may contribute all or any portion of the credit to the opportunity expansion account hereby created in the state treasury. The department must create the forms and processes to allow a person to make such an election easily and quickly by means of checking a box. By May 1, 2012, and by May 1st of every year thereafter, the department must report the amount so contributed and certify the amount to the state treasurer. By July 1, 2012, and by July 1st of every year thereafter, the state treasurer must transfer the amount into the opportunity expansion account. Money in the account may only be appropriated for the purposes specified in section 8 of this act.

Sec. 10   RCW 28B.76.525 and 2005 c 139 s 1 are each amended to read as follows:
     (1) The state financial aid account is created in the custody of the state treasurer. The primary purpose of the account is to ensure that all appropriations designated for financial aid through statewide student financial aid programs are made available to eligible students. The account shall be a nontreasury account.
     (2) The higher education coordinating board shall deposit in the account all money received for the ((state need grant)) opportunity award program established under RCW 28B.92.010, the state work-study program established under chapter 28B.12 RCW, the Washington scholars program established under RCW 28A.600.110, the Washington award for vocational excellence program established under RCW 28C.04.525, and the educational opportunity grant program established under chapter 28B.101 RCW. The account shall consist of funds appropriated by the legislature for the programs listed in this subsection and private contributions to the programs. Moneys deposited in the account do not lapse at the close of the fiscal period for which they were appropriated. Both during and after the fiscal period in which moneys were deposited in the account, the board may expend moneys in the account only for the purposes for which they were appropriated, and the expenditures are subject to any other conditions or limitations placed on the appropriations.
     (3) Expenditures from the account shall be used for scholarships to students eligible for the programs according to program rules and policies.
     (4) Disbursements from the account are exempt from appropriations and the allotment provisions of chapter 43.88 RCW.
     (5) Only the executive director of the higher education coordinating board or the executive director's designee may authorize expenditures from the account.

Sec. 11   RCW 28B.76.526 and 2010 1st sp.s. c 27 s 2 are each amended to read as follows:
     The Washington opportunity pathways account is created in the state treasury. Expenditures from the account may be used only for programs in chapter 28B.12 RCW (state work-study), chapter 28B.50 RCW (opportunity grant), RCW 28B.76.660 (Washington scholars award), RCW 28B.76.670 (Washington award for vocational excellence), chapter 28B.92 RCW (((state need grant)) opportunity award program), chapter 28B.101 RCW (educational opportunity grant), chapter 28B.105 RCW (GET ready for math and science scholarship), chapter 28B.117 RCW (passport to college promise), chapter 28B.118 RCW (college bound scholarship), chapter 28B.119 RCW (Washington promise scholarship), chapter 43.215 RCW (early childhood education and assistance program), and RCW 43.330.280 (recruitment of entrepreneurial researchers, innovation partnership zones and research teams).

Sec. 12   RCW 28B.76.540 and 2004 c 275 s 18 are each amended to read as follows:
     In addition to administrative responsibilities assigned in this chapter, the board shall administer the programs set forth in the following statutes: RCW 28A.600.100 through 28A.600.150 (Washington scholars); chapter 28B.85 RCW (degree-granting institutions); chapter 28B.92 RCW (((state need grant)) opportunity award); chapter 28B.12 RCW (work study); RCW 28B.15.543 (tuition waivers for Washington scholars); RCW 28B.15.760 through 28B.15.766 (math and science loans); RCW 28B.15.100 (reciprocity agreement); RCW 28B.15.730 through 28B.15.736 (Oregon reciprocity); RCW 28B.15.750 through 28B.15.754 (Idaho reciprocity); RCW 28B.15.756 and 28B.15.758 (British Columbia reciprocity); chapter 28B.101 RCW (educational opportunity grant); chapter 28B.102 RCW (future teachers conditional scholarship); chapter 28B.108 RCW (American Indian endowed scholarship); chapter 28B.109 RCW (Washington international exchange scholarship); chapter 28B.115 RCW (health professional conditional scholarship); chapter 28B.119 RCW (Washington promise scholarship); and chapter 28B.133 RCW (gaining independence for students with dependents).

Sec. 13   RCW 28B.92.010 and 2004 c 275 s 34 are each amended to read as follows:
     The purposes of this chapter are to establish the principles upon which the state financial aid programs will be based and to establish the state of Washington ((state need grant)) opportunity award program, thus assisting financially needy or disadvantaged students domiciled in Washington to obtain the opportunity of attending an accredited institution of higher education. ((State need grants)) Opportunity awards under this chapter are available only to students who are resident students as defined in RCW 28B.15.012(2) (a) through (d).

Sec. 14   RCW 28B.92.020 and 2003 c 19 s 11 are each amended to read as follows:
     (1) The legislature finds that the higher education coordinating board, in consultation with the higher education community, has completed a review of the state need grant program. It is the intent of the legislature to endorse the board's proposed changes to the ((state need grant)) opportunity award program, including:
     (a) Reaffirmation that the primary purpose of the ((state need grant)) opportunity award program is to assist low-income, needy, and disadvantaged Washington residents attending institutions of higher education;
     (b) A goal that the base ((state need grant)) opportunity award amount over time be increased to be equivalent to the rate of tuition charged to resident undergraduate students attending Washington state public colleges and universities;
     (c) ((State need grant)) Opportunity award recipients be required to contribute a portion of the total cost of their education through self-help;
     (d) ((State need grant)) Opportunity award recipients be required to document their need for dependent care assistance after taking into account other public funds provided for like purposes; and
     (e) Institutional aid administrators be allowed to determine whether a student eligible for a ((state need grant)) opportunity award in a given academic year may remain eligible for the ensuing year if the student's family income increases by no more than a marginal amount except for funds provided through the educational assistance grant program for students with dependents.
     (2) The legislature further finds that the higher education coordinating board, under its authority to implement the proposed changes in subsection (1) of this section, should do so in a timely manner.
     (3) The legislature also finds that:
     (a) In most circumstances, ((need grant)) opportunity award eligibility should not extend beyond five years or one hundred twenty-five percent of the published length of the program in which the student is enrolled or the credit or clock-hour equivalent; and
     (b) State financial aid programs should continue to adhere to the principle that funding follows resident students to their choice of institution of higher education.

Sec. 15   RCW 28B.92.040 and 2004 c 275 s 36 are each amended to read as follows:
     The board shall be cognizant of the following guidelines in the performance of its duties:
     (1) The board shall be research oriented, not only at its inception but continually through its existence.
     (2) The board shall coordinate all existing programs of financial aid except those specifically dedicated to a particular institution by the donor.
     (3) The board shall take the initiative and responsibility for coordinating all federal student financial aid programs to ensure that the state recognizes the maximum potential effect of these programs, and shall design state programs that complement existing federal, state, and institutional programs. The board shall ensure that state programs continue to follow the principle that state financial aid funding follows the student to the student's choice of institution of higher education.
     (4) Counseling is a paramount function of the ((state need grant)) opportunity award and other state student financial aid programs, and in most cases could only be properly implemented at the institutional levels; therefore, state student financial aid programs shall be concerned with the attainment of those goals which, in the judgment of the board, are the reasons for the existence of a student financial aid program, and not solely with administration of the program on an individual basis.
     (5) The "package" approach of combining loans, grants and employment for student financial aid shall be the conceptual element of the state's involvement.
     (6) The board shall ensure that allocations of state appropriations for financial aid are made to individuals and institutions in a timely manner and shall closely monitor expenditures to avoid under or overexpenditure of appropriated funds.

Sec. 16   RCW 28B.92.060 and 2009 c 215 s 4 are each amended to read as follows:
     In awarding ((need grants)) opportunity awards, 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 is a placebound student who has completed an associate of arts or associate of science degree or its equivalent.
     (2) The financial need of the highest ranked students shall be met by ((grants)) opportunity awards depending upon the evaluation of financial need until the total allocation has been disbursed. Funds from ((grants)) opportunity awards which are declined, forfeited or otherwise unused shall be reawarded until disbursed, except that eligible former foster youth shall be assured receipt of ((a grant)) an opportunity award.
     (3) A student shall be eligible to receive ((a state need grant)) an opportunity award 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)) an opportunity award recipient until at least five years have elapsed since earning an associate degree as ((a need grant)) an opportunity award 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)) award 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)) an opportunity award 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)) opportunity award 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)) an opportunity award 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)) an opportunity award 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)) an opportunity award; 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)) award 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.

Sec. 17   RCW 28B.92.080 and 2009 c 238 s 9 are each amended to read as follows:
     Except for opportunity internship graduates whose eligibility is provided under RCW 28B.92.084, for a student to be eligible for ((a state need grant)) an opportunity award a student must:
     (1) Be a "needy student" or "disadvantaged student" as determined by the board in accordance with RCW 28B.92.030 (((3))) (5) and (((4))) (2);
     (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);
     (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))) (4); and
     (5) Have complied with all the rules adopted by the board for the administration of this chapter.

Sec. 18   RCW 28B.92.082 and 2009 c 215 s 3 are each amended to read as follows:
     (1) To the extent funds are appropriated for this purpose and within overall appropriations for the ((state need grant)) opportunity awards, enhanced ((need grants)) opportunity awards are provided for persons who meet all of the following criteria:
     (a) Are needy students as defined in RCW 28B.92.030;
     (b) Are placebound students as defined in RCW 28B.92.030; and
     (c) Have completed the associate of arts or the associate of science degree, or its equivalent.
     (2) The enhanced ((need grants)) opportunity awards established in this section are provided to this specific group of students in addition to the base ((state need grant)) opportunity award, as defined by rule of the board.

Sec. 19   RCW 28B.92.084 and 2009 c 238 s 8 are each amended 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 a postsecondary program of study in an institution of higher education, including in 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)) an opportunity award 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)) an opportunity award apply.
     (4) Nothing in this section precludes an opportunity internship graduate from being eligible to receive additional ((state need grants)) opportunity awards after the one-year ((grant)) award provided in this section if the graduate meets other criteria as a needy or disadvantaged student.

Sec. 20   RCW 28B.119.030 and 2004 c 275 s 71 are each amended to read as follows:
     The Washington promise scholarship program shall not be funded at the expense of the ((state need grant)) opportunity award program as defined in chapter 28B.92 RCW. In administering the ((state need grant)) opportunity award and promise scholarship programs, the higher education coordinating board shall first ensure that eligibility for ((state need grant)) opportunity award recipients is at least fifty-five percent of state median family income.

Sec. 21   RCW 28B.133.010 and 2004 c 275 s 72 are each amended to read as follows:
     The educational assistance grant program for students with dependents is hereby created, subject to the availability of receipts of gifts, grants, or endowments from private sources. The program is created to serve financially needy students with dependents eighteen years of age or younger, by assisting them directly through a grant program to pursue a degree or certificate at public or private institutions of higher education, as defined in RCW 28B.92.030, that participate in the ((state need grant)) opportunity award program.

Sec. 22   RCW 28B.133.020 and 2004 c 275 s 73 are each amended to read as follows:
     To be eligible for the educational assistance grant program for students with dependents, applicants shall: (1) Be residents of the state of Washington; (2) be needy students as defined in RCW 28B.92.030(((3))) (5); (3) be eligible to participate in the ((state need grant)) opportunity award program as set forth under RCW 28B.92.080; and (4) have dependents eighteen years of age or younger who are under their care.

Sec. 23   RCW 28C.18.166 and 2009 c 238 s 5 are each amended to read as follows:
     On an annual basis, each opportunity internship consortium shall provide the board with a list of the opportunity internship graduates from the consortium. 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)) an opportunity award under chapter 28B.92 RCW if the graduate enrolls in a postsecondary program of study within one year of high school graduation.

NEW SECTION.  Sec. 24   Implementation of the name change from state need grant to opportunity award shall be effectuated at the least possible cost. The higher education coordinating board shall use all current supplies of forms, letterhead, promotional materials, and other documents that carry the state need grant name before making or ordering new supplies. Other changes, such as to the web site and rules, shall be made at such time as they can be accomplished efficiently and at the least expense possible.

NEW SECTION.  Sec. 25   This act may be known as the opportunity scholarship act.

NEW SECTION.  Sec. 26   Sections 1 through 8 of this act constitute a new chapter in Title 28B RCW.

NEW SECTION.  Sec. 27   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.