AN ACT Relating to vocational education; amending RCW 28C.10.050, 28C.10.110, and 28C.10.210; adding a new section to chapter 28C.10 RCW; prescribing penalties; and declaring an emergency.

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

Sec. 1. Section 5, chapter 299, Laws of 1986 as amended by section 3, chapter 459, Laws of 1987 and RCW 28C.10.050 are each amended to read as follows:

(1) The agency shall adopt by rule minimum standards for private vocational schools. The minimum standards shall include, but not be limited to, requirements for each school to:

(a) Disclose to the agency information about its ownership and financial position and to demonstrate that it has sufficient financial resources to fulfill its commitments to students. Financial disclosures provided to the agency shall not be subject to public disclosure under chapter 42.17 RCW((.));

(b) Follow a uniform state-wide cancellation and refund policy as specified by the agency((.));

(c) Disclose through use of a school catalog, brochure, or other written material, necessary information to students so that students may make informed enrollment decisions. The agency shall specify what information is required((.));

(d) Use an enrollment contract or agreement that includes: (i) The cancellation and refund policy, (ii) a brief statement that the school is licensed under this chapter and that inquiries may be made to the agency, and (iii) other necessary information as determined by the agency((.));

(e) Describe accurately and completely in writing to students before their enrollment prerequisites and requirements for (i) completing successfully the programs of study in which they are interested and (ii) qualifying for the fields of employment for which their education is designed((.));

(f) Comply with the requirements of RCW 28C.10.084((.));

((~~(2)~~)) (g) Assess the basic skills and aptitudes of each potential student and ensure that a potential student has the basic skills and aptitudes necessary to successfully complete the program in which the student plans to enroll. The method of assessment shall be approved by the agency;

(h) Counsel each potential student on the potential student's legal obligations in signing an enrollment contract or accepting any loan for educational purposes;

(i) The counseling process shall include disclosure of the most recently published guaranteed student loan default rate attributed to the school;

(ii) The school shall counsel potential students on the inadvisability of acquiring an excessive educational loan burden. An excessive educational loan burden is a loan that will be difficult to repay given employment opportunities and average starting salaries in the potential student's chosen occupation;

(iii) The school shall also counsel a potential student on the consequences, including the loss of all future federal financial aid opportunities, of failing to repay an educational loan funded by the federal government.

(2) Before a potential student signs any enrollment contract or applies for any educational loan, both the school and the student shall sign a form provided by the agency. The form shall stipulate that the school has complied with subsection (1) of this section, and that the student understands and accepts his or her responsibilities in signing any enrollment contract or loan applications. The form shall be completed and signed at least two days after the provisions of subsection (1) of this section are met. Within a reasonable amount of time, as determined by the agency, copies of the signed and dated form shall be distributed to the school, the student, and the agency.

(3) The agency shall deny, revoke, or suspend the license of any school that does not meet or maintain the minimum standards.

Sec. 2. Section 11, chapter 299, Laws of 1986 and RCW 28C.10.110 are each amended to read as follows:

It is an unfair business practice for a private vocational school or agent to:

(1) Fail to comply with the terms of a student enrollment contract or agreement;

(2) Use an enrollment contract form, catalog, brochure, or similar written material affecting the terms and conditions of student enrollment other than that previously submitted to the agency and authorized for use;

(3) Represent falsely, directly or by implication, that the school is an employment agency, is making an offer of employment or otherwise is attempting to conceal the fact that what is being represented are course offerings of a school;

(4) Represent falsely, directly or by implication, that an educational program is approved by a particular industry or that successful completion of the program qualifies a student for admission to a labor union or similar organization or for the receipt of a state license in any business, occupation, or profession;

(5) Represent falsely, directly or by implication, that a student who successfully completes a course or program of instruction may transfer credit for the course or program to any institution of higher education;

(6) Represent falsely, directly or by implication, in advertising or in any other manner, the school's size, location, facilities, equipment, faculty qualifications, or the extent or nature of any approval received from an accrediting association;

(7) Represent that the school is approved, recommended, or endorsed by the state of Washington or by the agency, except the fact that the school is authorized to operate under this chapter may be stated;

(8) Provide prospective students with any testimonial, endorsement, or other information which has the tendency to mislead or deceive prospective students or the public regarding current practices of the school, current conditions for employment opportunities, or probable earnings in the occupation for which the education was designed;

(9) Designate or refer to sales representatives as "counselors," "advisors," or similar terms which have the tendency to mislead or deceive prospective students or the public regarding the authority or qualifications of the sales representatives;

(10) Make or cause to be made any statement or representation in connection with the offering of education if the school or agent knows or reasonably should have known the statement or representation to be false, substantially inaccurate, or misleading; ((or))

(11) Engage in methods of advertising, sales, collection, credit, or other business practices which are false, deceptive, misleading, or unfair, as determined by the agency by rule; or

(12) Attempt to recruit students in or within forty feet of a building that contains a welfare or unemployment office. Recruiting includes, but is not limited to: Canvassing, leafletting, and surveying. Leafletting does not include leaving materials at or near an office for a person to pick up of his or her own accord. Leafletting does include handing a brochure or leaflet to a person.

It is a violation of this chapter for a private vocational school to engage in an unfair business practice.

Sec. 3. Section 21, chapter 299, Laws of 1986 and RCW 28C.10.210 are each amended to read as follows:

A violation of this chapter or the rules adopted under this chapter affects the public interest and is an unfair or deceptive act or practice in violation of RCW 19.86.020 of the consumer protection act. For each violation, the agency may impose a fine of up to five thousand dollars on the offending school and an additional fine of up to five thousand dollars on the owner or operator of the offending school. The remedies and sanctions provided by this section shall not preclude application of other remedies and sanctions.

NEW SECTION. Sec. 4. A new section is added to chapter 28C.10 RCW to read as follows:

The agency shall distribute copies of RCW 28C.10.050, 28C.10.110, and 28C.10.210 to each private vocational school licensed by the agency.

NEW SECTION. Sec. 5. Section 4 of 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 shall take effect immediately.

NEW SECTION. Sec. 6. 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.