HOUSE BILL REPORT

SHB 2915

BYHouse Committee on Higher Education (originally sponsored by Representatives Jacobsen, Spanel, Van Luven, Peery and Valle)

Changing provisions relating to vocational education.

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, Ranking Republican Member; Basich, Bennett, Doty, Fraser, Heavey, Jesernig, Miller and Rector.

House Staff:Susan Hosch (786-7120)

AS PASSED HOUSE FEBRUARY 12, 1990

BACKGROUND:

Washington regulates private vocational schools through a law that is tailored to their special circumstances and activities.  The law was originally enacted in 1979.  In 1986, it was extensively revised to ensure that students attending private vocational schools were protected against false, deceptive, misleading, or unfair practices by the schools.  The law also attempts to ensure that an adequate level of educational quality exists at the schools.

Private vocational schools are not required by law to counsel potential students on the obligations those students incur when they sign enrollment contracts or apply for federal loans.  The schools do not have an obligation to assess the skills of potential students to ensure that those students can complete the vocational program contemplated.  In addition, the schools may recruit potential students anywhere, using techniques that may confuse the potential student about the recruiter's actual intentions.

During the summer and fall of 1989, the House Higher Education's Subcommittee on Access held a series of meetings on the needs of single parents.  Officials from the Department of Social and Health Services testified that the recruiting practices of some private vocational schools have contributed to problems those officials encountered when attempting to help single parents get off welfare. Some schools recruit welfare recipients when those recipients are entering and leaving welfare offices.  In the past, some of the welfare recipients recruited in this manner have signed enrollment contracts, applied for federal educational loans, and then, for a variety of reasons, defaulted on those loans.  Students who default on federal educational loans deny themselves any further access to state or federal financial aid.

SUMMARY:

Private vocational schools are required to assess the basic skills and relevant aptitudes of each potential student.  The purpose of the assessment is to determine if the student has the basic skills and relevant aptitudes necessary to complete and benefit from the student's contemplated program.  The administering agency will adopt guidelines for the assessments.

Prior to enrolling a student, each private vocational school is required to discuss the obligations that a student incurs when he or she signs an enrollment contract or incurs a debt for educational purposes. Each school will also discuss the inadvisability of acquiring an excessive debt burden.

Each enrollment contract will have an attachment signed by both the school and the student.  The attachment will state that the school has held these discussions, and that the student understands and accepts his or her obligations.  The attachment will also state that the enrollment contract is not binding for at least five days, excluding Sundays and holidays, following signature by both parties.

Private vocational schools are prohibited from attempting to recruit students in or within 40 feet of a building that contains a welfare or unemployment office.  Recruiting is defined to include canvassing and surveying.  Recruiting does not include leaving materials at or near an office. Recruiting also does not include handing a brochure to a student as long as no attempt is made to acquire information from the student.  Private vocational schools are no longer permitted to advertise in the help wanted section of a newspaper.

Other technical revisions are made to the regulatory act. The definition of private vocational school is revised to mean any location where an entity is offering postsecondary education.  Entities offering only courses certified by the Federal Aviation Administration are exempt from the regulatory act.  The administering agency may settle disputes when a school ceases to provide educational services instead of when it closes.  If the agency that administers these regulations prevails in an administrative hearing, the school will pay the costs of the hearing.

The administering agency is required to provide copies of this act to each school as soon as the bill is signed by the governor.

Fiscal Note:      Requested January 25, 1990.

House Committee ‑ Testified For:    (Original bill): No one.

(Substitute bill): Gena Wikstrom, Washington Federation of Private Vocational Schools; and Charles Johnson, State Board for Vocational Education.

House Committee - Testified Against:      (Original bill): Gena Wikstrom and Tom Jonez, Washington Federation of Private Vocational Schools; Hal R. Griffith, The Art Institute of Seattle; Morrie Pigott, Business Computer Training Institute; and Donn Higley, Management Business College.

(Substitute bill): No one.

House Committee - Testimony For:    (Original bill): None.

(Substitute bill):  This substitute bill provides protection for consumers without placing a hardship on vocational schools.  Its focus on assessment and counseling is the right way to ensure that students have the skills to complete and benefit from vocational programs. That focus is also the best way to reduce the default rate on student loans. Students will benefit from the extended cooling off period.  Legitimate vocational schools will benefit when offending schools change their practices and the industry's image is improved.  The legislation will give the State Board for Vocational Education the tools needed to regulate vocational schools.

House Committee - Testimony Against:      (Original bill):  These requirements duplicate some federal requirements and the requirements of accrediting agencies.  They are an onerous burden on small businesses.  The private vocational schools should not be singled out for regulations such as the provision requiring disclosure of loan default rates. The state should insist on a code of ethics for all recruiters, instead of prohibiting recruitment in and near welfare offices.

(Substitute bill): None.