Read first time 02/06/2003.   Referred to Committee on Higher Education.

     AN ACT Relating to higher education financial assistance; and amending RCW 28B.101.005, 28B.101.010, 28B.101.020, 28B.101.040, and 28B.119.010.

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

Sec. 1   RCW 28B.101.005 and 1990 c 288 s 2 are each amended to read as follows:
     The legislature finds that many individuals in the state of Washington have attended college and received an associate of arts or associate of science degree, or ((its)) the equivalent, but are placebound.
     The legislature intends to establish an educational opportunity grant program for placebound students who have completed an associate of arts or associate of science degree, or ((its)) the equivalent, in an effort to increase their participation in and completion of upper-division programs.

Sec. 2   RCW 28B.101.010 and 1990 c 288 s 3 are each amended to read as follows:
     The educational opportunity grant program is hereby created ((as a demonstration project)) to serve placebound financially needy students by assisting them to obtain a baccalaureate degree at public and private institutions of higher education ((which have the capacity to accommodate such students within existing educational programs and facilities)) approved for participation by the higher education coordinating board.

Sec. 3   RCW 28B.101.020 and 1990 c 288 s 4 are each amended to read as follows:
     (1) For the purposes of this chapter, "placebound" means unable to ((relocate to)) complete a college program because of family or employment commitments, health concerns, monetary inability, or other similar factors.
     (2) To be eligible for an educational opportunity grant, applicants must be placebound residents of the state of Washington as defined in RCW 28B.15.012(2) (a) through (d), who: (a) Are needy students as defined in RCW 28B.10.802(3); and ((who)) (b) have completed the associate of arts or associate of science degree or ((its)) the equivalent. A placebound resident is one who may be influenced by the receipt of an enhanced student financial aid award to ((attend an institution that has existing unused capacity rather than attend a branch campus established pursuant to chapter 28B.45 RCW)) complete a baccalaureate degree at an eligible institution. An eligible placebound applicant is further defined as a person ((whose residence is located in an area served by a branch campus who, because of family or employment commitments, health concerns, monetary need, or other similar factors,)) who would be unable to complete ((an upper-division)) a baccalaureate course of study but for receipt of an educational opportunity grant.

Sec. 4   RCW 28B.101.040 and 2002 c 186 s 3 are each amended to read as follows:
     Grants may be used by eligible participants to attend any public or private college or university in the state of Washington that is accredited by an accrediting association recognized by rule of the higher education coordinating board for the program and that ((has an existing unused capacity. Grants shall not be used to attend any branch campus or educational program established under chapter 28B.45 RCW)) complies with eligibility criteria established by rule of the higher education coordinating board. The participant shall not be eligible for a grant if it will be used for any programs that include religious worship, exercise, or instruction or to pursue a degree in theology. Each participating student may receive up to two thousand five hundred dollars per academic year, not to exceed the student's demonstrated financial need for the course of study. ((Resident students as defined in RCW 28B.15.012(2)(f) are not eligible for grants under this chapter.))

Sec. 5   RCW 28B.119.010 and 2002 c 204 s 2 are each amended to read as follows:
     The higher education coordinating board shall design the Washington promise scholarship program based on the following parameters:
     (1) Scholarships shall be awarded to students graduating from public and approved private high schools under chapter 28A.195 RCW ((and)), students participating in home-based instruction as provided in chapter 28A.200 RCW, and persons twenty-one years of age or younger receiving a GED certificate, who meet both an academic and a financial eligibility criteria.
     (a) Academic eligibility criteria shall be defined as follows:
     (i) Beginning with the graduating class of 2002, students graduating from public and approved private high schools under chapter 28A.195 RCW must be in the top fifteen percent of their graduating class, as identified by each respective high school at the completion of the first term of the student's senior year; or
     (ii) Students graduating from public high schools, approved private high schools under chapter 28A.195 RCW, ((and)) students participating in home-based instruction as provided in chapter 28A.200 RCW, and persons twenty-one years of age or younger receiving a GED certificate, must equal or exceed a cumulative scholastic assessment test I score of twelve hundred on their first attempt or must equal or exceed a composite American college test score of twenty-seven on their first attempt.
     (b) To meet the financial eligibility criteria, a student's family income shall not exceed one hundred thirty-five percent of the state median family income adjusted for family size, as determined by the higher education coordinating board for each graduating class. Students not meeting the eligibility requirements for the first year of scholarship benefits may reapply for the second year of benefits, but must still meet the income standard set by the board for the student's graduating class.
     (2) Promise scholarships are not intended to supplant any grant, scholarship, or tax program related to postsecondary education. If the board finds that promise scholarships supplant or reduce any grant, scholarship, or tax program for categories of students, then the board shall adjust the financial eligibility criteria or the amount of scholarship to the level necessary to avoid supplanting.
     (3) Within available funds, each qualifying student shall receive two consecutive annual awards, the value of each not to exceed the full-time annual resident tuition rates charged by Washington's community colleges. The higher education coordinating board shall award scholarships to as many students as possible from among those qualifying under this section.
     (4) By October 15th of each year, the board shall determine the award amount of the scholarships, after taking into consideration the availability of funds.
     (5) The scholarships may only be used for undergraduate coursework at accredited institutions of higher education in the state of Washington.
     (6) The scholarships may be used for undergraduate coursework at Oregon institutions of higher education that are part of the border county higher education opportunity project in RCW 28B.80.806 when those institutions offer programs not available at accredited institutions of higher education in Washington state.
     (7) The scholarships may be used for college-related expenses, including but not limited to, tuition, room and board, books, and materials.
     (8) The scholarships may not be awarded to any student who is pursuing a degree in theology.
     (9) The higher education coordinating board may establish satisfactory progress standards for the continued receipt of the promise scholarship.
     (10) The higher education coordinating board shall establish the time frame within which the student must use the scholarship.