BILL REQ. #:  H-1193.1 

Read first time 02/06/13.   Referred to Committee on Higher Education.

     AN ACT Relating to creating the tuition support fund program; and adding a new chapter to Title 28B RCW.

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

NEW SECTION.  Sec. 1   (1) The legislature recognizes that the affordability of all higher education programs has decreased in recent years due to increases in tuition, and that affordability is the major barrier to access. Some students are deterred by the price of postsecondary education and do not apply, while others, already enrolled, face unexpected increases in tuition that may be beyond their ability to pay and they may be forced to drop out.
     (2) The legislature intends to create greater affordability and predictability for students enrolling in postsecondary programs in order to reduce the burden of tuition increases.
     (3) The legislature recognizes that the value of programs that help low-income and middle-income students and their families save for and pay for higher education such as the advanced tuition payment program and the state need grant. It is the intent of the legislature to build on the success of these programs by engaging the employer and foundation communities to offer tuition support and to partner in the postsecondary preparation needs of the future workforce and a prosperous economy.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Fund 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, that will serve as the private partner in the public-private partnership under this chapter.
     (2) "GET units" means tuition units under the advanced college tuition payment program in chapter 28B.95 RCW.
     (3) "Institution of higher education" has the same meaning as in RCW 28B.92.030.
     (4) "Office" means the office of student financial assistance.
     (5) "Postsecondary program" means any certificate, degree, apprenticeship, or college preparatory program offered at an institution of higher education.
     (6) "Program administrator" means the office of student financial assistance.

NEW SECTION.  Sec. 3   (1) The tuition support fund program is established. The purpose of the program is to provide financial support to students who, due to lack of financial means, cannot afford to enroll in, or continue their postsecondary program. Students may receive tuition support fund program awards as grants or GET units if they are enrolled in a qualified program and can demonstrate financial need.
     (2) The program shall be administered by the office.
     (3) The fund administrator shall solicit contributions to the tuition support fund account in section 8 of this act.
     (4) The total annual amount of each tuition support fund award may vary, but shall not exceed the annual cost of resident undergraduate tuition fees and mandatory fees at the University of Washington. An eligible recipient may receive a tuition support fund award for up to one hundred eighty quarter credits, or the semester equivalent, or for up to five years, whichever comes first.
     (5) Scholarships shall be awarded only to the extent that funds are available for that purpose in the tuition support fund account.

NEW SECTION.  Sec. 4   (1) An eligible student is a student who:
     (a) Is eligible for resident tuition and fee rates as defined in RCW 28B.15.012;
     (b) Can demonstrate financial need as provided in RCW 28B.92.060; and
     (c) Has declared an intention to complete a postsecondary program at an institution of higher education;
     (2) An eligible recipient is an eligible student who:
     (a) Has been awarded a tuition support fund award in accordance with the selection criteria and process established by the program administrator; and
     (b) Maintains satisfactory academic progress, as defined by the institution of higher education where the student is enrolled.

NEW SECTION.  Sec. 5   If a student who received a tuition support fund award ceases to be enrolled in an institution of higher education, withdraws, or is no longer enrolled in a qualified program, or otherwise is no longer eligible to receive a tuition support fund award, the student must notify the program administrator as soon as practicable and is not eligible for further tuition support fund awards.

NEW SECTION.  Sec. 6   The office must:
     (1) Purchase GET units from the tuition support fund account to be owned and held in trust by the office, for the purpose of tuition support fund awards in the form of GET units as provided for in this chapter;
     (2) Distribute tuition support fund awards in the form of GET units on behalf of eligible recipients. In order to ensure the purchaser does not lose value, these GET units shall not be distributed in fewer than five years or at the time when the purchase value exceeds the payout value, whichever occurs first;
     (3) Distribute tuition support fund grants as they become available as provided in section 8 of this act through direct payments from the tuition support fund account, to institutions of higher education;
     (4) Develop and implement an application, selection, and notification process for awarding tuition support fund awards that aligns with the state need grant program in RCW 28B.92.060;
     (5) Establish rules for award repayment, approved leaves of absence, deferments, and exceptions to recognize extenuating circumstances that may impact students similar to the state need grant program in RCW 28B.92.060;
     (6) Contract with a fund administrator, outlining expected deliverables and due dates. Deliverables must include a comprehensive strategy to solicit funds, development of goals for enlarging the tuition support fund account, a plan for developing relationships with potential employers, businesses, and foundation contributors, and methods for assessing progress in meeting goals;
     (7) Provide information to institutions of higher education, at least once per year, to provide training on the tuition support fund program and tools for administering the program alongside other state financial aid programs; and
     (8) Report to the governor and the legislature on tuition support fund awards and recipient outcomes, including any recommendations for improvement of administration or program design.

NEW SECTION.  Sec. 7   The fund administrator shall:
     (1) Solicit grants and donations from private sources such as employers, businesses, and foundations to support the tuition support fund program;
     (2) Coordinate with the program administrator to deposit solicited funds in the tuition support fund account; and
     (3) Report to the program administrator on progress in meeting deliverables at least four times per year.

NEW SECTION.  Sec. 8   (1) The tuition support fund account is created in the custody of the state treasurer.
     (2) The office shall deposit into the account all moneys received for the tuition support fund account. The account must be self-sustaining.
     (3)(a) Expenditures from the account must be used for tuition support fund awards in the form of grants or GET units.
     (b) Twenty percent of the contributions must be held in the account to accrue interest.
     (c) Forty percent shall be distributed for tuition support fund grants and forty percent shall be for the purposes of purchasing GET units.
     (d) Purchased GET units shall be owned and held in trust by the office.
     (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 office.

NEW SECTION.  Sec. 9   Sections 1 through 8 of this act constitute a new chapter in Title 28B RCW.