2605-S2 AMH FLEM HOSC 001
2SHB 2605 - H AMD 1020 ADOPTED 02/14/94
By Representative Flemming and others
On page 30, after line 8, insert the following new sections:
"NEW SECTION. Sec. 31. Unless the context clearly requires otherwise, the definitions in this section apply throughout this section and sections 32 and 33 of this act.
(1) "Eligible student" means an enlisted member or an officer of the rank of captain or below in the Washington national guard who is a resident student as defined in RCW 28B.15.012 and 28B.15.013, who attends an institution of higher education that is located in this state and accredited by the Northwest Association of Schools and Colleges, and who meets any additional selection criteria adopted by the office;
(2) "Conditional scholarship" means a loan that is forgiven in whole or in part if the recipient renders service as a member of the Washington national guard under rules adopted by the office.
(3) "Forgiven" or "to forgive" or "forgiveness" means either to render service in the Washington national guard in lieu of monetary repayment, or to be relieved of the service obligation under rules adopted by the office.
(4) "Office" means the office of the adjutant general of the state military department.
(5) "Participant" means an eligible student who has received a conditional scholarship under this chapter.
(6) "Service obligation" means serving in the Washington national guard for one additional year for each year of conditional scholarship received under this program.
NEW SECTION. Sec. 32. The Washington state national guard conditional scholarship program is established. The program shall be administered by the office. In administering the program, the powers and duties of the office shall include, but need not be limited to:
(1) The selection of eligible students to receive conditional scholarships;
(2) The award of conditional scholarships funded exclusively by federal funds, private donations, or repayments from any participant who does not complete the participant's service obligation. State general fund money shall not be used for conditional scholarships. The annual amount of each conditional scholarship may vary, but shall not exceed the annual cost of undergraduate tuition fees and services and activities fees at the University of Washington, plus an allowance for books and supplies;
(3) The adoption of necessary rules and guidelines;
(4) The adoption of participant selection criteria. The criteria may include but need not be limited to requirements for: satisfactory progress, minimum grade point averages, enrollment in courses or programs that lead to a baccalaureate degree or an associate degree or a certificate, and satisfactory participation as a member of the Washington national guard;
(5) The notification of participants of their additional service obligation or required repayment of the conditional scholarship; and
(6) The collection of repayments from participants who do not meet the eligibility criteria or service obligations.
NEW SECTION. Sec. 33. (1) Participants in the conditional scholarship program incur an obligation to repay the conditional scholarship, with interest, unless they serve in the Washington national guard for one additional year for each year of conditional scholarship received, under rules adopted by the office.
(2) The entire principal and interest of each yearly repayment shall be forgiven for each additional year in which a participant serves in the Washington national guard, under rules adopted by the office.
(3) If a participant elects to repay the conditional scholarship, the period of repayment shall be four years, with payments accruing quarterly commencing nine months from the date that the participant leaves the Washington national guard or withdraws from the institution of higher education, whichever comes first. The interest rate on the repayments shall be eight percent per year. Provisions for deferral and forgiveness shall be determined by the office.
(4) The office is responsible for collection of repayments made under this section. The office shall exercise due diligence in such collection, maintaining all necessary records to ensure that maximum repayments are made. Collection and servicing of repayments under this section shall be pursued using the full extent of law, including wage garnishment if necessary. The office is responsible to forgive all or parts of such repayments under the criteria established in this section, and shall maintain all necessary records of forgiven payments. The office may contract with the higher education coordinating board for collection of repayments under this section.
(5) Receipts from the payment of principal or interest paid by or on behalf of participants shall be deposited with the office and shall be used to cover the costs of granting the conditional scholarships, maintaining necessary records, and making collections under subsection (4) of this section. The office shall maintain accurate records of these costs, and all receipts beyond those necessary to pay such costs shall be used to grant conditional scholarships to eligible students.
NEW SECTION. Sec. 34. Sections 31 through 33 of this act shall constitute a new chapter in Title 28B RCW."
Renumber the remaining sections consecutively and correct any internal references accordingly.