HOUSE BILL REPORT
HB 2624
BYRepresentatives Fraser, Jacobsen, Doty, Belcher, G. Fisher, Brumsickle, Peery, Rasmussen, Haugen, P. King, Moyer, Bowman and Walker
Regulating exchange student placement agencies.
House Committe on Higher Education
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (11)
Signed by Representatives Jacobsen, Chair; Spanel, Vice Chair; Van Luven, Bennett, Doty, Fraser, Heavey, Jesernig, Miller, Prince and Rector.
House Staff:Marilee Scarbrough (786-7196)
Rereferred House Committee on Appropriations
Majority Report: The second substitute bill be substituted therefor and the second substitute bill do pass. (24)
Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Silver, Ranking Republican Member; Youngsman, Assistant Ranking Republican Member; Belcher, Bowman, Braddock, Brekke, Dorn, Doty, Ebersole, Hine, Inslee, May, McLean, Nealey, Peery, Rust, Spanel, Sprenkle, Valle, Wang and Wineberry.
Minority Report: Do not pass. (1)
Signed by Representative Ferguson.
House Staff: Sherie Story (786-7142)
AS REPORTED BY COMMITTEE ON APPROPRIATIONS FEBRUARY 5, 1990
BACKGROUND:
Currently, exchange student placement agencies are not regulated by a state agency or required to obtain a license before placing foreign students in the state. Complaints have been made that this lack of licensing and regulation has resulted in misrepresentations by agencies and abuses of foreign students visiting the state.
SUMMARY:
SUBSTITUTE BILL: A foreign student placement agency must obtain a license from the Department of Licensing before operating in Washington. The license is to be renewed annually. Institutions of higher education, postsecondary private institutions, public schools and approved private schools are exempt from the licensing procedure. The act will apply only to foreign students who are placed in Washington for an academic quarter or more for postsecondary education or half an academic year for students enrolled in secondary education.
AGENCY APPLICATION
The application shall contain the agency name, address, and phone number. The licensee must also disclose any financial relationship with other organizations in which agency officers or board members have a financial interest. The application must list the type of visas used by students and the unified business identifier number of the agency. The application shall be sworn to before a notary public and include a statement that no officer or holder of a one fifth interest has a felony conviction. An organization which establishes quality standards in international education and monitors compliance may file an application on behalf of its members. The director is required to establish a renewal procedure, where the applicant is only required to update information provided in the original license application. Neither the application fee nor the renewal shall exceed $50.
AGENCY RECORDS
The placement agency is required to keep records of services provided to foreign students. Records must include each student's name and address, as well as copies of the student's visa and other federal documents required for the student to remain in the United States. The name and address of host families must be on file at least seven days prior to the student's arrival. The agency must also keep records of the fees charged to the student, copies of all agreements with the foreign student, a statement that the agency has determined that the English speaking skills of the student are sufficient to benefit from a public school educational program, and the agency must have records of health and accident insurance for each student. The agency must keep these records for one year.
The agency must also provide an informational document to the foreign student in English, along with a copy of this chapter. The document shall include an emergency telephone hot-line available 24 hours a day, which is regularly answered by agency staff. In addition to being informed of the amount of the fee, the student must also receive an itemized accounting. The student must receive the name, address and phone number of the carriers providing medical and accident insurance coverage. The informational document must also contain the name and address of an agency representative located nearest to the host family residence.
STUDENT FUNDS TRUST ACCOUNT
A trust account, separate from agency operating accounts, is to be established for all funds to be disbursed to students or host families. The director of the Department of Licensing shall promulgate rules for the administration of the trust account.
LICENSE REVOCATION OR SUSPENSION
The director of the Department of Licensing has the authority to revoke or suspend a license, if an agency is not in compliance with the requirements of this act. License suspension or revocation can occur for failure to renew a license, a felony conviction, filing of a false application, failure to provide a suitable placement for an exchange student, failure to provide an agreed upon return trip ticket, or failure to make a good faith effort to insure the exchange student's safe and timely departure from the United States.
Operation of an exchange student placement agency without a license will be a gross misdemeanor. If an agency conducts business without a license, the agency is prohibited from maintaining a civil cause of action in this state based on services provided.
DEPARTMENT OF LICENSING
The director of the Department of Licensing shall have supervisory and investigative authority over foreign student placement agencies. The director of the Department of Licensing may examine all books, records and documents located in Washington. If no agency records are located in Washington the agency shall make out of state records accessible to the Department of Licensing. The director may also refer information regarding violations of the act to the Attorney General or prosecuting attorney of the county where a violation occurs.
The director is required to appoint an advisory committee to advise the director in implementation of this act. The director is also authorized to investigate complaints, and to appoint persons to conduct the investigations.
SUBSTITUTE BILL COMPARED TO ORIGINAL: The substitute bill substantially rewrites the original bill. Student is defined. Institutions of higher education, postsecondary private institutions, public schools, and approved private schools are exempted from the licensing procedure. The requirements regarding agency records and informational packets are enumerated and clarified. Placement agency records located outside of the state of Washington are to be available to the Department of Licensing. The director is to appoint an advisory committee to provide advice regarding the implementation of the act. The license renewal procedure is simplified. The requirement that 25 percent of student fees be maintained in the trust account is deleted. The provision that school principals are responsible for a student's return ticket is deleted.
CHANGES PROPOSED BY COMMITTEE ON APPROPRIATIONS (SECOND SUBSTITUTE BILL): The $50 limit on the fee is deleted. The Department of Licensing is required to set fees at a level sufficient to recover administrative costs.
Fiscal Note: Requested January 19, 1990.
Effective Date:The bill takes effect January 1, 1991.
House Committee ‑ Testified For: (Higher Education) Rep. Karen Fraser, prime sponsor; Kevin O'Sullivan, Congresswoman Jolene Unsoeld's office; Earle Morgan, United States Immigration Office; Renee Olbricht, Office of the Attorney General; Tim McDonald; Pat Gill, Olympia School District; Larry Norwood, Capital High School; Jens D. Stahmer; and Denise Keegan, InterEd.
(Appropriations) No one.
House Committee - Testified Against: (Higher Education) Sarah Viccellio, AFS (American Field Service).
(Appropriations) No one.
House Committee - Testimony For: (Higher Education) There is currently a void in exchange student regulation. No one is accountable for regulating agencies or protecting students brought to the state of Washington. Numerous complaints have been received on the state and federal level. Students are not receiving what they have been promised by the exchange student agencies. Host families are either not carefully screened or there is no host family at all when a foreign student arrives in the state. Once the students arrive many are mistreated, including not receiving food and adequate sleeping accommodations. Foreign students often do not receive enough money to buy their basic necessities. Without regulation, both host families and students have been mistreated. Exchange student programs benefit foreign students who come to Washington. Washington state high school students also benefit from their contact with foreign exchange students.
(Appropriations) None.
House Committee - Testimony Against: (Higher Education) The bill may have a negative impact on nonprofit organizations operating legitimate agencies. Legislation could lead to higher fees being charged to students. Legislation could deter host families from participating in exchange programs. Some placement agencies may decide not to conduct business in Washington state. Exchange student programs are already regulated through programs like American Field Service and Council on Standards for International Educational Travel.
(Appropriations) None.