AN ACT Relating to reorganization of educational systems and services; amending RCW 28B.04.030, 28B.04.040, 28B.04.050, 28B.04.060, 28B.04.070, 28B.04.080, 28B.04.110, 28B.10.215, 28B.10.220, 28B.10.802, 28B.12.030, 28B.12.040, 28B.12.050, 28B.12.060, 28B.12.070, 28B.15.760, 28B.15.762, 28B.15.764, 28B.80.360, 28B.85.010, 28B.85.020, 28B.85.030, 28B.85.040, 28B.85.050, 28B.85.060, 28B.85.070, 28B.85.080, 28B.85.090, 28B.85.100, 28B.85.130, 28B.85.170, and 43.131.288; adding new sections to chapter 28C.04 RCW; creating new sections; repealing RCW 28B.80.240; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature finds that there is a need to remove certain administrative programs from the jurisdiction of the higher education coordinating board in order to enable the board to concentrate on its policy and planning responsibilities. The legislature also finds that centralizing postsecondary education administrative functions within one agency will facilitate communication, cooperation, and the efficient use of public resources. The legislature intends to create an office of educational assistance to administer postsecondary education programs assigned to the office by the governor or the legislature.

NEW SECTION. Sec. 2. The office of educational assistance is established. The office shall administer assigned educational responsibilities in cooperation and consultation with students, faculty, administrators, displaced homemakers, public and private educational institutions, the higher education coordinating board, the superintendent of public instruction, the council of presidents, the state board for community college education, the commission for vocational education or its successor agency, and the Washington friends of higher education.

NEW SECTION. Sec. 3. The office of educational assistance shall have the following powers and duties:

(1) To administer the functions relating to the displaced homemaker program under RCW 28B.04.010 through 28B.04.120;

(2) To administer the program for approval of degree-granting institutions under chapter 28B.85 RCW;

(3) To administer the blind student assistance program under RCW 28B.10.215 through 28B.10.220;

(4) To administer the Washington scholars program under RCW 28A.58.822 through 28A.58.830;

(5) To administer any state program or state-administered federal program of student financial aid, including:

(a) Programs under RCW 28B.10.790 through 28B.10.824;

(b) The work-study program under chapter 28B.12 RCW; and

(6) To receive and expend public and private funds;

(7) To adopt necessary rules and bylaws;

(8) To appoint necessary advisory committees;

(9) To administer other programs or functions assigned by law or the appropriate authority;

(10) To facilitate and promote cooperation among all segments of education involved in the office's programs; and

(11) To administer their programs in a manner consistent with the policies adopted by the higher education coordinating board in a comprehensive master plan.

NEW SECTION. Sec. 4. (1) The director of the office of educational assistance shall be appointed by the governor with the consent of the senate and shall serve at the pleasure of the governor.

(2) The director shall be paid a salary fixed by the governor under RCW 43.03.040.

(3) The director may appoint such clerical and other assistants as may be necessary to carry on the work of the office and may deputize one or more such assistants to perform duties in the name of the director.

NEW SECTION. Sec. 5. The director shall appoint a financial aid advisory committee to advise the office on rules proposed for financial aid programs, program implementation, research projects, and student needs. The committee shall include financial aid administrators from public and private institutions of postsecondary education. Other financial aid constituencies may be included on the committee at the option of the office. Committee members shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

Sec. 6. Section 3, chapter 73, Laws of 1979 as amended by section 37, chapter 370, Laws of 1985 and RCW 28B.04.030 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) ((~~"Board" means the higher education coordinating board~~)) "Office" means the office of educational assistance.

(2) "Center" means a multipurpose service center for displaced homemakers as described in RCW 28B.04.040.

(3) "Program" means those programs described in RCW 28B.04.050 which provide direct, outreach, and information and training services which serve the needs of displaced homemakers.

(4) "Displaced homemaker" means an individual who:

(a) Has worked in the home for ten or more years providing unsalaried household services for family members on a full-time basis; and

(b) Is not gainfully employed;

(d) Has been dependent on the income of another family member but is no longer supported by that income, or has been dependent on federal assistance but is no longer eligible for that assistance, or is supported as the parent of minor children by public assistance or spousal support but whose children are within two years of reaching their majority.

Sec. 7. Section 4, chapter 73, Laws of 1979 as last amended by section 38, chapter 370, Laws of 1985 and RCW 28B.04.040 are each amended to read as follows:

(1) The ((~~board~~)) office, in consultation with state and local governmental agencies, community groups, and local and national organizations concerned with displaced homemakers, shall receive applications and may contract with public or private nonprofit organizations to establish multipurpose service centers for displaced homemakers. In determining sites and administering agencies or organizations for the centers, the ((~~board~~)) office shall consider the experience and capabilities of the public or private nonprofit organizations making application to provide services to a center.

(2) The ((~~board~~)) office shall issue rules prescribing the standards to be met by each center in accordance with the policies set forth in this chapter. Continuing funds for the maintenance of each center shall be contingent upon the determination by the ((~~board~~)) office that the center is in compliance with the contractual conditions and with the rules prescribed by the ((~~board~~)) office.

Sec. 8. Section 5, chapter 73, Laws of 1979 as last amended by section 39, chapter 370, Laws of 1985 and RCW 28B.04.050 are each amended to read as follows:

(1) Each center contracted for under this chapter shall include or provide information and referral to the following services:

(a) Job counseling services which shall:

(i) Be specifically designed for displaced homemakers;

(ii) Counsel displaced homemakers with respect to appropriate job opportunities; and

(iii) Take into account and build upon the skills and experience of a homemaker and emphasize job readiness as well as skill development;

(b) Job training and job placement services which shall:

(i) Emphasize short-term training programs and programs which expand upon homemaking skills and volunteer experience and which lead to gainful employment;

(ii) Develop, through cooperation with state and local government agencies and private employers, model training and placement programs for jobs in the public and private sectors;

(iii) Assist displaced homemakers in gaining admission to existing public and private job training programs and opportunities, including vocational education and apprenticeship training programs; and

(iv) Assist in identifying community needs and creating new jobs in the public and private sectors;

(i) General principles of preventative health care;

(ii) Health care consumer education, particularly in the selection of physicians and health care services, including, but not limited to, health maintenance organizations and health insurance;

(iii) Family health care and nutrition;

(iv) Alcohol and drug abuse; and

(v) Other related health care matters;

(d) Financial management services which provide information and assistance with respect to insurance, taxes, estate and probate problems, mortgages, loans, and other related financial matters;

(e) Educational services, including:

(i) Outreach and information about courses offering credit through secondary or postsecondary education programs, and other re-entry programs, including bilingual programming where appropriate; and

(ii) Information about such other programs as are determined to be of interest and benefit to displaced homemakers by the ((~~board~~)) office;

(f) Legal counseling and referral services; and

(g) Outreach and information services with respect to federal and state employment, education, health, public assistance, and unemployment assistance programs which the ((~~board~~)) office determines would be of interest and benefit to displaced homemakers.

(2) The staff positions of each multipurpose center contracted for in accordance with RCW 28B.04.040, including supervisory, technical, and administrative positions, shall, to the maximum extent possible, be filled by displaced homemakers.

Sec. 9. Section 6, chapter 73, Laws of 1979 as last amended by section 40, chapter 370, Laws of 1985 and RCW 28B.04.060 are each amended to read as follows:

The ((~~board~~)) office may contract, where appropriate, with public or private nonprofit groups or organizations serving the needs of displaced homemakers for programs designed to:

(1) Provide direct services to displaced homemakers, including job counseling, job training and placement, health counseling, financial management, educational counseling, legal counseling, and referral services as described in RCW 28B.04.050;

(2) Provide state-wide outreach and information services for displaced homemakers; and

(3) Provide training opportunities for persons serving the needs of displaced homemakers, including those persons in areas not directly served by programs and centers established under this chapter.

Sec. 10. Section 7, chapter 73, Laws of 1979 as last amended by section 41, chapter 370, Laws of 1985 and RCW 28B.04.070 are each amended to read as follows:

The ((~~board~~)) office shall submit to the legislature a biennial evaluation in January of each even-numbered year. The evaluations may include recommendation for future programs as determined by the ((~~board~~)) office.

Sec. 11. Section 8, chapter 73, Laws of 1979 as last amended by section 42, chapter 370, Laws of 1985 and RCW 28B.04.080 are each amended to read as follows:

(1) The ((~~board~~)) office shall consult and cooperate with the department of social and health services; the state board for community college education; the superintendent of public instruction; ((~~the commission for vocational education;~~)) the employment security department; the department of labor and industries; sponsoring agencies under the federal comprehensive employment and training act (87 Stat. 839; 29 U.S.C. Sec. 801 et seq.), and any other persons or agencies as the ((~~board~~)) office deems appropriate to facilitate the coordination of centers established under this chapter with existing programs of a similar nature.

(2) Annually on July 1st, each agency listed in subsection (1) of this section shall submit a description of each service or program under its jurisdiction which would support the programs and centers established by this chapter and the funds available for such support.

(3) The ((~~board~~)) office shall serve as a clearinghouse for displaced homemaker information and resources and shall compile and disseminate state-wide information to the centers, related agencies, and interested persons upon request.

Sec. 12. Section 11, chapter 73, Laws of 1979 as amended by section 43, chapter 370, Laws of 1985 and RCW 28B.04.110 are each amended to read as follows:

The ((~~board~~)) office may, in carrying out this chapter, accept, use, and dispose of contributions of money, services, and property: PROVIDED, That funds generated within individual centers may be retained and utilized by those centers. All moneys received by the ((~~board~~)) office or any employee thereof pursuant to this section shall be deposited in a depository approved by the state treasurer. Disbursements of such funds shall be on authorization of the ((~~board~~)) office or a duly authorized representative thereof. In order to maintain an effective expenditure and revenue control such funds shall be subject in all respects to chapter 43.88 RCW, but no appropriation shall be required to permit expenditure of such funds.

Sec. 13. Section 28B.10.215, chapter 223, Laws of 1969 ex. sess. as last amended by section 51, chapter 370, Laws of 1985 and RCW 28B.10.215 are each amended to read as follows:

There is allocated to each and every blind student attending any institution of higher education within the state a sum not to exceed two hundred dollars per quarter, or so much thereof as may be necessary in the opinion of the ((~~higher education coordinating board~~)) office of educational assistance in the state of Washington, to provide said blind student with readers, books, recordings, recorders, or other means of reproducing and imparting ideas, while attending said institution of higher education: PROVIDED, That said allocation shall be made out of any moneys in the general fund not otherwise appropriated.

Sec. 14. Section 28B.10.220, chapter 223, Laws of 1969 ex. sess. as last amended by section 52, chapter 370, Laws of 1985 and RCW 28B.10.220 are each amended to read as follows:

All blind student assistance shall be distributed under the supervision of the ((~~higher education coordinating board~~)) office of educational assistance in the state of Washington. The moneys or any part thereof allocated in the manner referred to in RCW 28B.10.215 shall, for furnishing said books or equipment or supplying said services, be paid by said ((~~board~~)) office directly to the state institution of higher education, directly to such blind student, heretofore mentioned, or to the student's parents, guardian, or some adult person, if the blind student is a minor, designated by said blind student to act as trustee of said funds, as shall be determined by the ((~~board~~)) office.

The ((~~board~~)) office shall have power to prescribe and enforce all rules ((~~and regulations~~)) necessary to carry out the provisions of this section and RCW 28B.10.215.

Sec. 15. Section 8, chapter 222, Laws of 1969 ex. sess. as last amended by section 56, chapter 370, Laws of 1985 and RCW 28B.10.802 are each amended to read as follows:

As used in RCW 28B.10.800 through 28B.10.824:

(1) "Institutions of higher education" shall mean (1) any public university, college, community college, or vocational-technical institute operated by the state of Washington or any political subdivision thereof or (2) 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: 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.10.822.

(2) The term "financial aid" shall mean loans and/or grants to needy students enrolled or accepted for enrollment as a full time student at institutions of higher education.

(3) The term "needy student" shall mean a post high school student of an institution of higher learning as defined in subsection (1) of this section 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.

(4) The term "disadvantaged student" shall mean 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 learning, who would otherwise qualify as a needy student, and who is attending an institution of higher learning under an established program designed to qualify the student for enrollment as a full time student.

(5) "Commission" or "board" or "office" shall mean the ((~~higher education coordinating board~~)) office of educational assistance.

Sec. 16. Section 3, chapter 177, Laws of 1974 ex. sess. and RCW 28B.12.030 are each amended to read as follows:

As used in this chapter, the following words and terms shall have the following meanings, unless the context shall clearly indicate another or different meaning or intent:

(1) The term "needy student" shall mean a student enrolled or accepted for enrollment at a post-secondary institution who, according to a system of need analysis approved by the ((~~commission on higher education~~)) office of educational assistance, demonstrates a financial inability, either parental, familial, or personal, to bear the total cost of education for any semester or quarter.

(2) The term "eligible institution" shall mean any post-secondary institution in this state accredited by the Northwest Association of Secondary and Higher Schools or any public vocational-technical school in the state.

Sec. 17. Section 4, chapter 177, Laws of 1974 ex. sess. as amended by section 58, chapter 370, Laws of 1985 and RCW 28B.12.040 are each amended to read as follows:

The ((~~higher education coordinating board~~)) office of educational assistance shall develop and administer the college work-study program and shall be authorized to enter into agreements with employers and eligible institutions for the operation of the program. These agreements shall include such provisions as the higher education coordinating board may deem necessary or appropriate to carry out the purposes of this chapter.

The share from funds disbursed under the college work-study program of the compensation of students employed under such program in accordance with such agreements shall not exceed eighty percent of the total such compensation paid such students.

Sec. 18. Section 5, chapter 177, Laws of 1974 ex. sess. as amended by section 59, chapter 370, Laws of 1985 and RCW 28B.12.050 are each amended to read as follows:

The ((~~higher education coordinating board~~)) office of educational assistance shall disburse college work-study funds after consideration of recommendations of a panel convened by the ((~~higher education coordinating board~~)) office of educational assistance, and composed of representatives of eligible institutions and post-secondary education advisory and governing bodies. Said commission shall establish criteria for the panel designed to achieve such distribution of assistance under this chapter among students attending eligible institutions as will most effectively carry out the purposes of this chapter.

Sec. 19. Section 6, chapter 177, Laws of 1974 ex. sess. as amended by section 60, chapter 370, Laws of 1985 and RCW 28B.12.060 are each amended to read as follows:

The ((~~higher education coordinating board~~)) office of educational assistance shall adopt rules and regulations as may be necessary or appropriate for effecting the provisions of this chapter, and not in conflict with this chapter, in accordance with the provisions of chapter 28B.19 RCW, the state higher education administrative procedure act. Such rules and regulations shall be promulgated upon consideration of advice from a panel composed of representatives of institutional financial aid officers, a representative of employee organizations having membership in the classified service of the state's institutions of higher education, and will include provisions designed to make employment under such work-study program reasonably available, to the extent of available funds, to all eligible students in eligible post-secondary institutions in need thereof. Such rules and regulations shall include:

(1) Providing work under the college work-study program which will not result in the displacement of employed workers or impair existing contracts for services.

(2) Furnishing work only to a student who:

(a) Is capable, in the opinion of the eligible institution, of maintaining good standing in such course of study while employed under the program covered by the agreement; and

(b) Has been accepted for enrollment as at least a half-time student at the eligible institution or, in the case of a student already enrolled in and attending the eligible institution, is in good standing and in at least half-time attendance there either as an undergraduate, graduate or professional student; and

(3) Placing priority on the securing of work opportunities for students who are residents of the state of Washington as defined in RCW 28B.15.011 through 28B.15.014.

(4) Provisions to assure that in the state institutions of higher education utilization of this student work-study program:

(a) Shall only supplement and not supplant classified positions under jurisdiction of chapter 28B.16 RCW;

(b) That all positions established which are comparable shall be identified to a job classification under the higher education personnel board's classification plan and shall receive equal compensation;

(d) That work study positions shall only be established at entry level positions of the classified service.

Sec. 20. Section 7, chapter 177, Laws of 1974 ex. sess. as amended by section 61, chapter 370, Laws of 1985 and RCW 28B.12.070 are each amended to read as follows:

Each eligible institution shall submit to the ((~~higher education coordinating board~~)) office of educational assistance an annual report in accordance with such requirements as are promulgated by the ((~~commission~~)) office.

Sec. 21. Section 1, chapter 74, Laws of 1983 1st ex. sess. as amended by section 79, chapter 370, Laws of 1985 and RCW 28B.15.760 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 28B.15.762 and 28B.15.764.

(1) "Institution of higher education" or "institution" means a college or university in the state of Washington which is a member institution of an accrediting association recognized as such by rule of the higher education coordinating board.

(2) ((~~"Board" means the higher education coordinating board~~)) "Office" means the office of educational assistance.

(3) "Eligible student" means a student registered for at least ten credit hours or the equivalent and demonstrates achievement of a 3.00 grade point average for each academic year, who is a resident student as defined by RCW 28B.15.012 through 28B.15.015, who is a "needy student" as defined in RCW 28B.10.802, and who has a declared major in a program leading to a degree in teacher education in a field of science or mathematics, or a certificated teacher who meets the same credit hour and "needy student" requirements and is seeking an additional degree in science or mathematics.

(4) "Public school" means a middle school, junior high school, or high school within the public school system referred to in Article IX of the state Constitution.

(5) "Forgiven" or "to forgive" means to collect service as a teacher in a field of science or mathematics at a public school in the state of Washington in lieu of monetary payment.

(6) "Satisfied" means paid-in-full.

(7) "Borrower" means an eligible student who has received a loan under RCW 28B.15.762.

Sec. 22. Section 2, chapter 74, Laws of 1983 1st ex. sess. as amended by section 80, chapter 370, Laws of 1985 and RCW 28B.15.762 are each amended to read as follows:

(1) The ((~~board~~)) office may make long-term loans to eligible students at institutions of higher education from the funds appropriated to the ((~~board~~)) office for this purpose. The amount of any such loan shall not exceed the demonstrated financial need of the student or two thousand five hundred dollars for each academic year whichever is less, and the total amount of such loans to an eligible student shall not exceed ten thousand dollars. The interest rates and terms of deferral of such loans shall be consistent with the terms of the guaranteed loan program established by 20 U.S.C. Sec. 1701 et seq. The period for repaying the loan principal and interest shall be ten years with payments accruing quarterly commencing nine months from the date the borrower graduated. The entire principal and interest of each loan payment shall be forgiven for each payment period in which the borrower teaches science or mathematics in a public school in this state until the entire loan is satisfied or the borrower ceases to teach science or mathematics at a public school in this state. Should the borrower cease to teach science or mathematics at a public school in this state before the time in which the principal and interest on the loan are satisfied, payments on the unsatisfied portion of the principal and interest on the loan shall begin the next payment period and continue until the remainder of the loan is paid.

(2) The ((~~board~~)) office is responsible for collection of loans made under subsection (1) of this section and shall exercise due diligence in such collection, maintaining all necessary records to insure that maximum repayments are made. Collection and servicing of loans under subsection (1) of this section shall be pursued using the full extent of the law, including wage garnishment if necessary, and shall be performed by entities approved for such servicing by the Washington student loan guaranty association or its successor agency. The ((~~board~~)) office is responsible to forgive all or parts of such loans under the criteria established in subsection (1) of this section and shall maintain all necessary records of forgiven payments.

(3) Receipts from the payment of principal or interest or any other subsidies to which the ((~~board~~)) office as lender is entitled, which are paid by or on behalf of borrowers under subsection (1) of this section, shall be deposited with the ((~~higher education coordinating board~~)) office of educational assistance and shall be used to cover the costs of making the loans under subsection (1) of this section, maintaining necessary records, and making collections under subsection (2) of this section. The ((~~board~~)) office shall maintain accurate records of these costs, and all receipts beyond those necessary to pay such costs shall be used to make loans to eligible students.

(4) The ((~~board~~)) office shall adopt necessary rules to implement this section.

Sec. 23. Section 3, chapter 74, Laws of 1983 1st ex. sess. as amended by section 81, chapter 370, Laws of 1985 and RCW 28B.15.764 are each amended to read as follows:

The ((~~board~~)) office and institutions of higher education shall work cooperatively to implement RCW 28B.15.762 and to publicize this program to eligible students.

Sec. 24. Section 7, chapter 370, Laws of 1985 as amended by section 20, chapter 136, Laws of 1986 and RCW 28B.80.360 are each amended to read as follows:

The board shall perform the following administrative responsibilities:

(1) Administer the programs set forth in the following statutes: Chapter 28A.58 RCW (Washington scholars); ((chapter 28B.04 RCW (displaced homemakers); chapter 28B.85 RCW (degree-granting institutions); RCW 28B.10.210 through 28B.10.220 (blind students subsidy); RCW 28B.10.800 through 28B.10.824 (student financial aid program); chapter 28B.12 RCW (work study);)) RCW 28B.15.067 through 28B.15.076 (educational costs for establishing tuition and fees); RCW 28B.15.543 (tuition waivers for Washington scholars); ((~~RCW 28B.15.760 through 28B.15.766 (math and science loans);~~)) RCW 28B.80.150 through 28B.80.170 (student exchange compact); ((~~RCW 28B.80.240 (student aid programs);~~)) and RCW 28B.80.210 (federal programs).

(2) Study the delegation of the administration of the following: RCW 28B.65.040 through 28B.65.060 (high-technology board); ((~~chapter 28B.85 RCW (degree-granting institutions);~~)) RCW 28B.80.150 through 28B.80.170 (student exchange compact programs); RCW 28B.80.200 (state commission for federal law purposes); RCW 28B.80.210 (enumerated federal programs); RCW 28B.80.230 (receipt of federal funds); ((~~RCW 28B.80.240 (student financial aid programs);~~)) RCW 28A.58.824 through 28A.58.830 (Washington scholars); RCW 28B.15.543 (Washington scholars); ((~~RCW 28B.04.020 through 28B.04.110 (displaced homemakers);~~)) RCW 28B.10.215 and 28B.10.220 (blind students); RCW 28B.10.790((,)) and 28B.10.792((~~, and 28B.10.802 through 28B.10.844~~)) (student financial aid); ((~~RCW 28B.12.040 through 28B.12.070 (student work study);~~)) 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); and RCW 28B.15.756 and 28B.15.758 (British Columbia reciprocity)((~~; and RCW 28B.15.760 through 28B.15.764 (math/science loans)~~)). The board shall report the results of its study and recommendations to the legislature.

Sec. 25. Section 1, chapter 136, Laws of 1986 and RCW 28B.85.010 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter:

(1) ((~~"Board" means the higher education coordinating board.~~

~~(2)~~)) "Degree" means any designation, appellation, letters, or words including but not limited to "associate," "bachelor," "master," "doctor," or "fellow" which signify or purport to signify satisfactory completion of the requirements of an academic program of study beyond the secondary school level.

((~~(3)~~)) (2) "Degree-granting institution" means an entity that offers educational credentials, instruction, or services prerequisite to or indicative of an academic or professional degree beyond the secondary level.

(3) "Office" means the office of educational assistance.

Sec. 26. Section 2, chapter 136, Laws of 1986 and RCW 28B.85.020 are each amended to read as follows:

The ((~~board~~)) office:

(1) Shall adopt by rule minimum standards for degree-granting institutions concerning granting of degrees, quality of education, unfair business practices, financial stability, and other necessary measures to protect citizens of this state against substandard, fraudulent, or deceptive practices. The ((~~board~~)) office shall adopt the rules in accordance with chapter 34.04 RCW;

(2) May investigate any entity the ((~~board~~)) office reasonably believes to be subject to the jurisdiction of this chapter. In connection with the investigation, the ((~~board~~)) office may administer oaths and affirmations, issue subpoenas and compel attendance, take evidence, and require the production of any books, papers, correspondence, memorandums, or other records which the board deems relevant or material to the investigation. The ((~~board~~)) office, including its staff and any other authorized persons, may conduct site inspections and examine records of all institutions subject to this chapter;

(((3) Shall develop an interagency agreement with the commission for vocational education or its successor agency to regulate degree-granting private vocational schools with respect to nondegree programs.))

Sec. 27. Section 3, chapter 136, Laws of 1986 and RCW 28B.85.030 are each amended to read as follows:

A degree-granting institution shall not operate and shall not grant or offer to grant any degree unless the institution has obtained current authorization from the ((~~board~~)) office.

Sec. 28. Section 4, chapter 136, Laws of 1986 and RCW 28B.85.040 are each amended to read as follows:

(1) An institution or person shall not advertise, offer, sell, or award a degree or any other type of educational credential unless the student has enrolled in and successfully completed a prescribed program of study, as outlined in the institution's publications. This prohibition shall not apply to honorary credentials clearly designated as such on the front side of the diploma or certificate and awarded by institutions offering other educational credentials in compliance with state law.

(2) Except as provided in subsection (1) of this section, this chapter shall not apply to:

(a) Any public college, university, or other entity operating as part of the public educational system of this state.

(b) Institutions that have been accredited by an accrediting association recognized by the ((~~agency~~)) office for the purposes of this chapter, provided that an 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 to qualify for this exemption.

(c) Institutions of a religious character, but only as to those education programs devoted exclusively to religious or theological objectives if the programs are represented in an accurate manner in institutional catalogs and other official publications.

(d) Institutions not otherwise exempt which offer only workshops or seminars lasting no longer than three calendar days and for which academic credit is not awarded.

Sec. 29. Section 5, chapter 136, Laws of 1986 and RCW 28B.85.050 are each amended to read as follows:

All degree-granting institutions subject to this chapter shall file information with the ((~~board~~)) office as the ((~~board~~)) office may require.

Sec. 30. Section 6, chapter 136, Laws of 1986 and RCW 28B.85.060 are each amended to read as follows:

The ((~~board~~)) office shall impose fees on any degree-granting institution authorized to operate under this chapter. Fees shall be set and revised by the ((~~board~~)) office by rule at the level necessary to approximately recover the staffing costs incurred in administering this chapter. Fees shall be deposited in the general fund.

Sec. 31. Section 7, chapter 136, Laws of 1986 and RCW 28B.85.070 are each amended to read as follows:

(1) The ((~~board~~)) office may require any degree-granting institution to have on file with the ((~~board~~)) office an approved surety bond or other security in lieu of a bond in an amount determined by the ((~~board~~)) office.

(2) In lieu of a surety bond, an institution may deposit with the ((~~board~~)) office a cash deposit or other negotiable security acceptable to the ((~~board~~)) office. The security deposited with the ((~~board~~)) office in lieu of the surety bond shall be returned to the institution one year after the institution's authorization has expired or been revoked if legal action has not been instituted against the institution or the security deposit at the expiration of the year. The obligations and remedies relating to surety bonds authorized by this section, including but not limited to the settlement of claims procedure in subsection (5) of this section, shall apply to deposits filed with the ((~~board~~)) office, as applicable.

(3) Each bond shall:

(a) Be executed by the institution as principal and by a corporate surety licensed to do business in the state;

(b) Be payable to the state for the benefit and protection of any student or enrollee of an institution, or, in the case of a minor, his or her parents or guardian;

(d) Require the surety to give written notice to the board at least thirty-five days before cancellation of the bond; and

(e) Remain in effect for one year following the effective date of its cancellation or termination as to any obligation occurring on or before the effective date of cancellation or termination.

(4) Upon receiving notice of a bond cancellation, the ((~~board~~)) office shall notify the institution that the authorization will be suspended on the effective date of the bond cancellation unless the institution files with the ((~~board~~)) office another approved surety bond or other security. The ((~~board~~)) office may suspend or revoke the authorization at an earlier date if it has reason to believe that such action will prevent students from losing their tuition or fees.

(5) If a complaint is filed under RCW 28B.85.090(1) against an institution, the ((~~board~~)) office may file a claim against the surety and settle claims against the surety by following the procedure in this subsection.

(a) The ((~~board~~)) office shall attempt to notify all potential claimants. If the absence of records or other circumstances makes it impossible or unreasonable for the ((~~board~~)) office to ascertain the names and addresses of all the claimants, the ((~~board~~)) office after exerting due diligence and making reasonable inquiry to secure that information from all reasonable and available sources, may make a demand on a bond on the basis of information in the ((~~board's~~)) office's possession. The ((~~board~~)) office is not liable or responsible for claims or the handling of claims that may subsequently appear or be discovered.

(b) Thirty days after notification, if a claimant fails, refuses, or neglects to file with the ((~~board~~)) office a verified claim, the ((~~board~~)) office shall be relieved of further duty or action under this chapter on behalf of the claimant.

(c) After reviewing the claims, the ((~~board~~)) office may make demands upon the bond on behalf of those claimants whose claims have been filed. The ((~~board~~)) office may settle or compromise the claims with the surety and may execute and deliver a release and discharge of the bond.

(d) If the surety refuses to pay the demand, the ((~~board~~)) office may bring an action on the bond in behalf of the claimants. If an action is commenced on the bond, the ((~~board~~)) office may require a new bond to be filed.

(e) Within ten days after a recovery on a bond or other posted security has occurred, the institution shall file a new bond or otherwise restore its security on file to the required amount.

(6) The liability of the surety shall not exceed the amount of the bond.

Sec. 32. Section 8, chapter 136, Laws of 1986 and RCW 28B.85.080 are each amended to read as follows:

The ((~~board~~)) office may suspend or modify any of the requirements under this chapter in a particular case if the ((~~board~~)) office finds that:

(1) The suspension or modification is consistent with the purposes of this chapter; and

(2) The education to be offered addresses a substantial, demonstrated need among residents of the state or that literal application of this chapter would cause a manifestly unreasonable hardship.

Sec. 33. Section 9, chapter 136, Laws of 1986 and RCW 28B.85.090 are each amended to read as follows:

(1) A person claiming loss of tuition or fees as a result of an unfair business practice may file a complaint with the ((~~board~~)) office. The complaint shall set forth the alleged violation and shall contain information required by the ((~~board~~)) office. A complaint may also be filed with the ((~~board~~)) office by an authorized staff member of the ((~~board~~)) office or by the attorney general.

(2) The ((~~board~~)) office shall investigate any complaint under this section and may attempt to bring about a settlement. The ((~~board~~)) office may hold a contested case hearing pursuant to the administrative procedure act, chapter 34.04 RCW, in order to determine whether a violation has occurred. If the ((~~board~~)) office prevails, the degree-granting institution shall pay the costs of the administrative hearing.

(3) If, after the hearing, the ((~~board~~)) office finds that the institution or its agent engaged in or is engaging in any unfair business practice, the ((~~board~~)) office shall issue and cause to be served upon the violator an order requiring the violator to cease and desist from the act or practice and may impose the penalties under RCW 28B.85.100. If the ((~~board~~)) office finds that the complainant has suffered loss as a result of the act or practice, the ((~~board~~)) office may order full or partial restitution for the loss. The complainant is not bound by the ((~~board's~~)) office's determination of restitution and may pursue any other legal remedy.

Sec. 34. Section 10, chapter 136, Laws of 1986 and RCW 28B.85.100 are each amended to read as follows:

Any person, group, or entity or any owner, officer, agent, or employee of such entity who wilfully violates any provision of this chapter or the rules adopted under this chapter shall be subject to a civil penalty of not more than one hundred dollars for each violation. Each day on which a violation occurs constitutes a separate violation. The fine may be imposed by the ((~~higher education coordinating board~~)) office or by any court of competent jurisdiction.

Sec. 35. Section 13, chapter 136, Laws of 1986 and RCW 28B.85.130 are each amended to read as follows:

If any degree-granting institution discontinues its operation, the chief administrative officer of the institution shall file with the ((~~board~~)) office the original or legible true copies of all educational records required by the ((~~board~~)) office. If the ((~~board~~)) office determines that any educational records are in danger of being made unavailable to the ((~~board~~)) office, the ((~~board~~)) office may seek a court order to protect and if necessary take possession of the records. The ((~~board~~)) office shall cause to be maintained a permanent file of educational records coming into its possession.

Sec. 36. Section 17, chapter 136, Laws of 1986 and RCW 28B.85.170 are each amended to read as follows:

The ((~~board~~)) office may seek injunctive relief, after giving notice to the affected party, in a court of competent jurisdiction for a violation of this chapter or the rules adopted under this chapter. The ((~~board~~)) office need not allege or prove that the ((~~board~~)) office has no adequate remedy at law. The right of injunction provided in this section is in addition to any other legal remedy which the ((~~board~~)) office has and is in addition to any right of criminal prosecution provided by law. The existence of ((~~board~~)) office action with respect to alleged violations of this chapter and rules adopted under this chapter does not operate as a bar to an action for injunctive relief under this section.

NEW SECTION. Sec. 37. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the higher education coordinating board pertaining to the powers, functions, and duties transferred to the office of educational assistance from the higher education coordinating board by this act shall be delivered to the custody of the office of educational assistance. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the higher education coordinating board in carrying out the powers, functions, and duties transferred shall be made available to the office of educational assistance. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the office of educational assistance.

Any appropriations made to the higher education coordinating board for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the office of educational assistance.

Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 38. All employees of the higher education coordinating board engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the office of educational assistance. All such employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the office of educational assistance to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 39. All rules and all pending business before the higher education coordinating board pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the office of educational assistance. All existing contracts and obligations shall remain in full force and shall be performed by the office of educational assistance.

NEW SECTION. Sec. 40. The transfer of the powers, duties, functions, and personnel of the higher education coordinating board shall not affect the validity of any act performed prior to the effective date of this section.

NEW SECTION. Sec. 41. If apportionments of budgeted funds are required because of the transfers from the higher education coordinating board to the office of educational assistance, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

NEW SECTION. Sec. 42. Nothing contained in sections 39 through 41 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

NEW SECTION. Sec. 43. Section 15, chapter 132, Laws of 1975 1st ex. sess., section 23, chapter 370, Laws of 1985 and RCW 28B.80.240 are each repealed.

Sec. 44. Section 43, chapter 197, Laws of 1983 and RCW 43.131.288 are each amended to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 1987:

(1) Section 1, chapter 174, Laws of 1975 1st ex. sess. and RCW 28C.04.010;

(2) Section 2, chapter 174, Laws of 1975 1st ex. sess. and RCW 28C.04.020;

(3) Section 3, chapter 285, Laws of 1971 ex. sess. and RCW 28C.04.025;

(4) Section 4, chapter 285, Laws of 1971 ex. sess., section 13, chapter 174, Laws of 1975 1st ex. sess. and RCW 28C.04.026;

(5) Section 3, chapter 174, Laws of 1975 1st ex. sess. and RCW 28C.04.030;

(6) Section 4, chapter 174, Laws of 1975 1st ex. sess., section 3, chapter 21, Laws of 1983 1st ex. sess., section 89, chapter 370, Laws of 1985, section 78, chapter 266, Laws of 1986 and RCW 28C.04.040;

(7) Section 5, chapter 174, Laws of 1975 1st ex. sess. and RCW 28C.04.050;

(8) Section 6, chapter 174, Laws of 1975 1st ex. sess. and RCW 28C.04.060;

(9) Section 8, chapter 174, Laws of 1975 1st ex. sess., section 79, chapter 34, Laws of 1975-'76 2nd ex. sess., section 66, chapter 287, Laws of 1984 and RCW 28C.04.070;

(10) Section 10, chapter 174, Laws of 1975 1st ex. sess. and RCW 28C.04.080;

(11) Section 28B.50.230, chapter 223, Laws of 1969 ex. sess., section 14, chapter 174, Laws of 1975 1st ex. sess. and RCW 28C.04.090;

((~~(12) Section 1, chapter 98, Laws of 1969 ex. sess. and RCW 28C.04.140;~~

~~(13)~~)) (12) Section 7, chapter 174, Laws of 1975 1st ex. sess. and RCW 28C.04.150;

((~~(14)~~)) (13) Section 11, chapter 174, Laws of 1975 1st ex. sess. and RCW 28C.04.160;

((~~(15)~~)) (14) Section 28A.09.070, chapter 223, Laws of 1969 ex. sess. and RCW 28C.04.200;

((~~(16)~~)) (15) Section 28A.09.080, chapter 223, Laws of 1969 ex. sess. and RCW 28C.04.210;

((~~(17)~~)) (16) Section 28A.09.090, chapter 223, Laws of 1969 ex. sess. and RCW 28C.04.220;

((~~(18)~~)) (17) Section 28B.50.240, chapter 223, Laws of 1969 ex. sess., section 24, chapter 261, Laws of 1969 ex. sess., section 1, chapter 285, Laws of 1971 ex. sess., section 41, chapter 3, Laws of 1983 and RCW 28C.04.230;

((~~(19)~~)) (18) Section 1, chapter 17, Laws of 1972 ex. sess., section 1, chapter 63, Laws of 1973 and RCW 28C.04.240;

((~~(20)~~)) (19) Section 52, chapter 283, Laws of 1969 ex. sess., section 76, chapter 34, Laws of 1975-'76 2nd ex. sess., section 67, chapter 287, Laws of 1984 and RCW 28C.04.300;

((~~(21)~~)) (20) Section 53, chapter 283, Laws of 1969 ex. sess., section 16, chapter 174, Laws of 1975 1st ex. sess. and RCW 28C.04.310;

((~~(22)~~)) (21) Section 9, chapter 174, Laws of 1975 1st ex. sess. and RCW 28C.04.500;

((~~(23)~~)) (22) Section 12, chapter 174, Laws of 1975 1st ex. sess., section 1, chapter 86, Laws of 1975-'76 2nd ex. sess., section 23, chapter 151, Laws of 1979, section 90, chapter 370, Laws of 1985 and RCW 28C.04.510;

((~~(24)~~)) (23) Section 1, chapter 349, Laws of 1977 ex. sess., section 12, chapter 470, Laws of 1985, section 62, chapter 266, Laws of 1986 and RCW 28C.50.010;

((~~(25)~~)) (24) Section 2, chapter 349, Laws of 1977 ex. sess. and RCW 28C.50.020;

((~~(26)~~)) (25) Section 3, chapter 349, Laws of 1977 ex. sess. and RCW 28C.50.030;

((~~(27)~~)) (26) Section 4, chapter 349, Laws of 1977 ex. sess., section 19, chapter 57, Laws of 1985 and RCW 28C.50.040;

((~~(28)~~)) (27) Section 5, chapter 349, Laws of 1977 ex. sess., section 13, chapter 470, Laws of 1985, section 63, chapter 266, Laws of 1986 and RCW 28C.50.050;

((~~(29)~~)) (28) Section 6, chapter 349, Laws of 1977 ex. sess. and RCW 28C.50.060;

((~~(30)~~)) (29) Section 8, chapter 349, Laws of 1977 ex. sess. and RCW 28C.50.900;

((~~(31)~~)) (30) Section 1, chapter 225, Laws of 1979 ex. sess., section 1, chapter 48, Laws of 1982 1st ex. sess., section 14, chapter 470, Laws of 1985, section 64, chapter 266, Laws of 1986 and RCW 28C.51.010;

((~~(32)~~)) (31) Section 2, chapter 225, Laws of 1979 ex. sess. and RCW 28C.51.020;

((~~(33)~~)) (32) Section 3, chapter 225, Laws of 1979 ex. sess. and RCW 28C.51.030;

((~~(34)~~)) (33) Section 4, chapter 225, Laws of 1979 ex. sess. and RCW 28C.51.040;

((~~(35)~~)) (34) Section 5, chapter 225, Laws of 1979 ex. sess., section 15, chapter 470, Laws of 1985, section 65, chapter 266, Laws of 1986 and RCW 28C.51.050; and

((~~(36)~~)) (35) Section 6, chapter 225, Laws of 1979 ex. sess. and RCW 28C.51.060.

NEW SECTION. Sec. 45. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 46. Sections 1 through 5 of this act are each added to chapter 28C.04 RCW.

NEW SECTION. Sec. 47. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect June 30, 1987.