HOUSE BILL REPORT

                 SHB 2693

                       As Passed House

                      February 9, 1994

Title:  An act relating to degree‑granting authority.

Brief Description:  Changing provisions relating to higher education degree‑granting authority.

Sponsors:  By House Committee on Higher Education (originally sponsored by Representatives Quall, Jacobsen, Brumsickle, Carlson, Forner, Van Luven, Dyer, Cooke, Brough and Springer).

Brief History:

  Reported by House Committee on:

Higher Education, February 3, 1994, DPS;

Passed House, February 9, 1994, 97-0.

HOUSE COMMITTEE ON HIGHER EDUCATION

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 17 members:  Representatives Jacobsen, Chair; Quall, Vice Chair; Brumsickle, Ranking Minority Member; Sheahan, Assistant Ranking Minority Member; Basich; Carlson; Casada; Finkbeiner; Flemming; Kessler; Mastin; Mielke; Ogden; Orr; Rayburn; Shin and Wood.

Staff:  Marilee Scarbrough (786-7196).

Background:  Currently, the Workforce Training and Education Coordinating Board (WTECB) regulates non-degree granting private vocational schools. The private vocational school act allows the WTECB to assist students in evaluating private vocational school programs and in obtaining refunds in the event of the student's withdrawal, school cancellation or school closure.

In 1987, legislation was implemented creating a tuition recovery trust fund for the benefit and protection of private vocational school students. The funds are used to settle claims or pay restitution if a school is found to have engaged in an unfair business practice.  The contribution of each school is determined on a pro-rata basis.  The WTECB determines the liability of each private vocational school on an incremental scale.

Currently, the tuition recovery trust fund only benefits the non-degree seeking students enrolled in private vocational schools.

Summary of Bill:  The language is clarified that provides for a interagency agreement between the Higher Education Coordinating Board (HECB) and the WTECB to regulate degree and non-degree programs.

A separate account is created in the tuition recovery trust fund.  Claims made by students enrolled in degree-granting vocational programs shall be made against the assets in the HECB's account.

The HECB is responsible for maintaining and administering the account.  The HECB's operation of the account parallels the WTECB's current operation of the tuition recovery fund. For example, the HECB will determine the amount of liability that can be satisfied by the account, and will adopt by rule a matrix for calculating the deposits into the account required of each degree-granting private vocational school.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill provides better consumer protection for degree-granting vocational schools.  This bill clears up a current loop hole in the law.

Testimony Against:  None.

Witnesses:  Jane Sherman, Higher Education Coordinating Board; Marlene Coplen, Workforce Training & Education Coordinating Board; and Linda Broderick, Federation of Private & Vocational Schools (all pro).