EDUCATION COORDINATING BOARD
Title of Rule: WAC 490-105-080 How are contributions to the tuition recovery trust fund calculated?
Purpose: Rule outlines contribution schedule into the tuition recovery trust fund.
Statutory Authority for Adoption: RCW 28C.10.040.
Statute Being Implemented: Chapter 28C.10 RCW.
Summary: Correct an error in the contribution schedule language so written language and chart agree.
Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Peggy Rudolph, Olympia, (360) 586-8682.
Name of Proponent: Workforce Training and Education Coordinating Board, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: Rule outlining tuition recovery fund contributions. Corrects an error in the contribution schedule language so written language and chart agree.
Proposal does not change existing rules.
THIS RULE IS BEING PROPOSED TO BE ADOPTED USING AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS RULE BEING ADOPTED USING THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Peggy Rudolph, Workforce Training and Education Coordinating Board, P.O. Box 43105, Olympia, WA 98504-3105 , AND RECEIVED BY December 18, 2000.
October 4, 2000
AMENDATORY SECTION(Amending WSR 98-22-033, filed 10/29/98, effective 11/29/98)
How are contributions to the tuition recovery trust fund calculated?
(See RCW 28C.10.082 and 28C.10.084.)
(1) Establishment of fund liability limits. The amount of liability that can be satisfied by this fund on behalf of each individual school licensed under this chapter is identified in the table in subsection (4) of this section.
(a) If the school is located within the state of Washington, its liability limit will be based on the total annual tuition income received from or on behalf of all students, as reported in the financial statement required by WAC 490-105-040 (2)(a);
(b) If the school is located outside the state of Washington, its liability limit is based on the total annual tuition income received from or on behalf of Washington state residents, as reported in the financial statement required by WAC 490-105-040 (2)(a);
(c) If the school was not in operation prior to the date of initial licensing, its liability limit is based on the total annual tuition estimate supplied under the provisions of WAC 490-105-040 (2)(c);
(d) The minimum liability established in any circumstance is five thousand dollars.
(2) Matrices for calculating initial deposits and any assessments necessary under subsection (7) of this section:
|Level of Liability:||Prorated Share:|
(4) Contribution schedule. In order to remain licensed
under this chapter, the school must remit to the agency
semiannual payments for deposit into the tuition recovery trust
fund. The amount of the deposits for the first five years is
calculated by applying the percentages displayed under subsection
(2) of this section, to an amount totaling one million dollars as
required by RCW 28C.10.084. In the second five years,
contributions for amounts between zero and ((
two)) one hundred
fifty thousand dollars will be reduced by fifty percent.
|If the school's total annual tuition income is:||Its liability limit under the Tuition Recovery Trust Fund is:||Based on its liability limit, the school will make an initial deposit to the fund of:||The school will make the following semiannual payments for the first five years it is licensed:||The school will make the following semiannual payments for the second five years it is licensed:|
|$0 - $50,000||$5,000||$305||$122||$61|
|$50,001 - $75,000||$7,500||$457||$183||$92|
|$75,001 - $100,000||$10,000||$609||$244||$122|
|$100,001 - $150,000||$15,000||$914||$366||$183|
|$150,001 - $200,000||$20,000||$1,219||$487||$487|
|$200,001 - $250,000||$25,000||$1,523||$609||$609|
|$250,001 - $350,000||$35,000||$2,133||$853||$853|
|$350,001 - $500,000||$50,000||$3,046||$1,219||$1,219|
|$500,001 - $750,000||$75,000||$4,570||$1,828||$1,828|
|$750,001 - $1,000,000||$100,000||$6,093||$2,437||$2,437|
|$1,000,001 - $1,250,000||$125,000||$7,616||$3,046||$3,046|
|$1,250,001 - $1,500,000||$150,000||$9,139||$3,656||$3,656|
|$1,500,001 - $1,750,000||$175,000||$10,663||$4,265||$4,265|
|$1,750,001 - $2,000,000||$200,000||$12,186||$4,874||$4,874|
|$2,000,001 - $2,250,000||$225,000||$13,710||$5,483||$5,483|
|$2,250,001 - $2,500,000||$250,000||$15,233||$6,092||$6,092|
(6) Each semiannual notice will include:
(a) The school's aggregated prior deposits into the fund;
(b) The school's balance of remaining payments, based on the most recent deposit received and adjusted to the current contribution level;
(c) The cumulated balance existing in the fund at the most recent half-year accounting; and
(d) A summary showing any disbursals made from the fund to satisfy claims in the period since the last summary was disseminated.
(7) If disbursements made to settle claims reduce the operating balance below one million dollars and recovery of such funds has not been ensured under the provisions of RCW 28C.10.084 (10)(d), the agency will assess each school a pro rata share of the amount required to restore the deficiency. The assessment will be made within thirty calendar days of the date deficiency is created. Each school's share of the assessment will be calculated using the percentages established under subsection (2) of this section. If the school's assessment equals or is less than the semiannual amount of deposit established for the school under subsection (4) of this section, the assessment must be paid within thirty calendar days of notice. If the assessment exceeds the amount of the school's semiannual deposit, it may apply to the agency for a schedule of deferred payments. The agency will grant deferrals on application, but in no case will the extension exceed one year beyond the date of the assessment.
(8) Funds disbursed to settle claims against a currently licensed school will be recovered by the agency under a schedule to be negotiated with the affected school on a case-by-case basis. To secure deferral of payment more than thirty calendar days after demand for recovery is made, the burden to prove manifest hardship rests on the school but in no case will the time extended exceed one year beyond the date of the initial demand notice.
(9) Claimant, as referenced under RCW 28C.10.084 (10)(a), is further defined to mean an enrolled student in regular attendance or on an authorized leave of absence at the time of closure.
[Statutory Authority: RCW 28C.10.040(2). 98-22-033, § 490-105-080, filed 10/29/98, effective 11/29/98.]