BILL REQ. #:  H-2468.3 



_____________________________________________ 

SUBSTITUTE HOUSE BILL 1882
_____________________________________________
State of Washington60th Legislature2007 Regular Session

By House Committee on Higher Education (originally sponsored by Representatives Wallace, Moeller, Haigh, McDermott, Kagi, Roberts, O'Brien, Kenney, Hurst and Ormsby)

READ FIRST TIME 02/28/07.   



     AN ACT Relating to higher education costs; amending RCW 28B.95.060, 28B.50.030, 28B.92.060, 28B.92.080, and 28B.15.820; reenacting and amending RCW 43.79A.040; adding new sections to chapter 28B.15 RCW; adding a new section to chapter 28B.95 RCW; adding new sections to chapter 28B.50 RCW; adding a new section to chapter 28B.92 RCW; adding a new section to chapter 28B.76 RCW; adding a new chapter to Title 28B RCW; creating new sections; and providing an expiration date.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that access to higher education is of critical importance to the current and future prosperity of the citizens of the state of Washington. However, the legislature further finds that the following three factors are creating barriers to access for students:
     (a) Tuition increases have varied dramatically over the last decade, making the cost of postsecondary attendance unpredictable for students and families.
     (b) There are at least thirty separate state and federal programs providing direct financial aid or tax benefits to individuals seeking postsecondary education, in addition to institutional aid, private scholarships, and other programs. The system is complicated and difficult to understand, with the unfortunate effect of discouraging some low-income students from even applying to college. Additionally, some students are not able to access enough financial assistance to make postsecondary education affordable.
     (c) Students frequently must repeat college-level coursework when transferring from one institution of higher education to another, increasing their financial and time costs.
     (2) Through implementing of a complementary and coordinated set of policies around tuition, financial aid, and student transitions, the legislature intends to make access to higher education a top priority.

PART 1
STATEWIDE TUITION POLICY

NEW SECTION.  Sec. 101   A new section is added to chapter 28B.15 RCW to read as follows:
     TUITION--FUNDING LEVELS--LIMITATIONS. (1) Beginning with the 2007-08 academic year and ending with the 2016-17 academic year, tuition fees charged to full-time resident undergraduate students may increase no greater than seven percent over the previous academic year in any institution of higher education. Annual reductions or increases in full-time tuition fees for resident undergraduate students shall be as provided in the omnibus appropriations act, within the seven percent increase limit established in this section. To the extent that state appropriations combined with tuition and fee revenues are insufficient to achieve the total per-student funding goals established in subsection (3) of this section, the legislature may revisit state appropriations, authorized enrollment levels, and changes in tuition fees for any given fiscal year.
     (2) If in any year, the level of instructional state support per full-time equivalent student at a public four-year institution does not equal or exceed the amount of the previous year's instructional state support adjusted for inflation using the implicit price deflator, the tuition cap may be increased. In this circumstance, the governing board of each impacted institution may elect to increase tuition and fee revenues above the seven percent cap to a level sufficient to cover the amount not received through the state appropriation. Upon meeting the goal established in subsection (3) of this section, this authority is suspended.
     (3) The state shall adopt as its goal total per-student funding levels, from state appropriations plus tuition and fees, of at least the sixtieth percentile of total per-student funding at similar public institutions of higher education in the global challenge states. The office of financial management shall develop a funding trajectory for each four-year institution of higher education and for the community and technical college system as a whole that when combined with tuition and fees revenue allows the state to achieve its funding goal for each four-year institution and the community and technical college system as a whole no later than fiscal year 2017. The state shall not reduce enrollment levels below fiscal year 2007 budgeted levels in order to improve or alter the per-student funding amount at any four-year institution of higher education or the community and technical college system as a whole. The state recognizes that each four-year institution of higher education and the community and technical college system as a whole have different funding requirements to achieve desired performance levels, and that increases to the total per-student funding amount may need to exceed the minimum funding goal.
     (4) By September 1st of each year beginning in 2008, the office of financial management shall report to the governor, the higher education coordinating board, and appropriate committees of the legislature with updated estimates of the total per-student funding level that represents the sixtieth percentile of funding for comparable institutions of higher education in the global challenge states, and the progress toward that goal that was made for each of the public institutions of higher education.
     (5) As used in this section, "global challenge states" are the top performing states on the new economy index published by the progressive policy institute as of the effective date of this section. The new economy index ranks states on indicators of their potential to compete in the new economy. At least once every five years, the office of financial management shall determine if changes to the list of global challenge states are appropriate. The office of financial management shall report its findings to the governor and the legislature.

NEW SECTION.  Sec. 102   A new section is added to chapter 28B.15 RCW to read as follows:
     BILLING DISCLOSURES TO STUDENTS. In addition to the requirement in RCW 28B.76.300(4), institutions of higher education shall disclose to their undergraduate resident students on the tuition billing statement, in dollar figures for a full-time equivalent student: (1) The full cost of instruction, (2) the amount collected from student tuition and fees, and (3) the difference between the amounts for the full cost of instruction and the student tuition and fees, noting that the difference between the cost and tuition was paid by state tax funds and other moneys.

FINANCIAL AID
PART 2
GET READY FOR MATH AND SCIENCE SCHOLARSHIP PROGRAM

NEW SECTION.  Sec. 201   (1) The GET ready for math and science scholarship program is established. The purpose of the program is to provide scholarships to students who achieve level four on the mathematics or science portions of the tenth grade Washington assessment of student learning, major in a mathematics, science, or related field in college, and commit to working in mathematics, science, or a related field for at least three years in Washington following completion of their bachelor's degree. The program shall be administered by the nonprofit organization selected as the private partner in the public-private partnership.
     (2) The total annual amount of each GET ready for math and science scholarship may vary, but shall not exceed the annual cost of resident undergraduate tuition fees and mandatory fees at the University of Washington. For full-time students, the amount of the scholarship shall be as follows:
     (a) Students with family incomes less than or equal to one hundred percent of the state's median family income shall receive the maximum scholarship award for the institution attended;
     (b) Students whose incomes are greater than one hundred percent, but less than or equal to one hundred fifty percent, of the state's median family income shall receive fifty percent of the maximum award for the institution attended; and
     (c) Students whose incomes are greater than one hundred fifty percent, but less than or equal to two hundred percent, of the state's median family income shall receive twenty-five percent of the maximum award for the institution attended.
     (3) An eligible recipient may receive a GET ready for math and science scholarship for up to one hundred eighty quarter credits, or the semester equivalent, or for up to five years, whichever comes first.

NEW SECTION.  Sec. 202   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Board" means the higher education coordinating board.
     (2) "GET units" means tuition units under the advanced college tuition payment program in chapter 28B.95 RCW.
     (3) "Institution of higher education" has the same meaning as in RCW 28B.92.030.
     (4) "Program administrator" means the private nonprofit corporation that is registered under Title 24 RCW and qualified as a tax-exempt entity under section 501(c)(3) of the federal internal revenue code, that will serve as the private partner in the public-private partnership under this chapter.
     (5) "Qualified program" or "qualified major" means a mathematics, science, or related degree program or major line of study offered by an institution of higher education that is included on the list of programs or majors selected by the board and the program administrator under section 209 of this act.

NEW SECTION.  Sec. 203   (1) An eligible student is a student who:
     (a) Is eligible for resident tuition and fee rates as defined in RCW 28B.15.012;
     (b) Achieved level four on the mathematics or science portion of the tenth grade Washington assessment of student learning;
     (c) Has a family income at or below one hundred twenty-five percent of the state median family income at the time the student applies for a GET ready for math and science scholarship and for up to the two previous years;
     (d) Has declared an intention to complete a qualified program or qualified major or has entered a qualified program or declared a qualified major at an institution of higher education;
     (e) Has declared an intention to work in a mathematics, science, or related field in Washington for at least three years immediately following completion of a bachelor's degree or higher degree.
     (2) An eligible recipient is an eligible student who:
     (a) Enrolls at an institution of higher education within one year of graduating from high school;
     (b) Maintains satisfactory academic progress, as defined by the institution of higher education where the student is enrolled;
     (c) Takes at least one college-level mathematics or science course each term since enrolling in an institution of higher education; and
     (d) Enters a qualified program or qualified major no later than the end of the first term in which the student has junior level standing.

NEW SECTION.  Sec. 204   (1) If the student enrolls in a qualified program or declares a qualified major and the program or major is subsequently removed from the list of qualified programs and qualified majors by the board and the program administrator, the student's eligibility to receive a GET ready for math and science scholarship shall not be affected.
     (2) If a student who received a GET ready for math and science scholarship ceases to be enrolled in an institution of higher education, withdraws or is no longer enrolled in a qualified program, declares a major that is not a qualified major, or otherwise is no longer eligible to receive a GET ready for math and science scholarship, the student shall notify the program administrator as soon as practicable and is not eligible for further GET ready for math and science scholarship awards. Such a student shall also repay the amount of the GET ready for math and science scholarship awarded to the student as required by section 205 of this act.

NEW SECTION.  Sec. 205   (1) A recipient of a GET ready for math and science scholarship incurs an obligation to repay the scholarship, with interest and an equalization fee, if he or she does not:
     (a) Graduate with a bachelor's degree from a qualified program or in a qualified major within five years of first enrolling at an institution of higher education; and
     (b) Work in Washington in a mathematics, science, or related occupation full time for at least three years following completion of a bachelor's degree, unless he or she is enrolled in a graduate degree program as provided in subsection (4) of this section.
     (2) A former scholarship recipient who has earned a bachelor's degree shall annually verify to the board that he or she is working full time in a mathematics, science, or related field for three years.
     (3) If a former scholarship recipient begins but then stops working full time in a mathematics, science, or related field within three years following completion of a bachelor's degree, he or she shall pay back a prorated portion of the amount of the GET ready for math and science scholarship award received by the recipient, plus interest and a prorated equalization fee.
     (4) A recipient may postpone for up to three years his or her in-state work obligation if he or she enrolls full time in a graduate degree program in mathematics, science, or a related field.

NEW SECTION.  Sec. 206   The office of the superintendent of public instruction shall:
     (1) Notify elementary, middle, junior high, and high school students, parents, teachers, counselors, principals, and the children's administration of the department of social and health services about the GET ready for math and science scholarship program;
     (2) Notify students who achieve level four of the mathematics or science Washington assessment of student learning in tenth grade that they may be eligible to apply for a GET ready for math and science scholarship and provide them with contact information for the program administrator;
     (3) Notify the program administrator and the board, as early as possible during the fall of the students' junior year in high school, of the names and contact information of all students who achieved level four on the mathematics or science Washington assessment of student learning during tenth grade so that the program administrator may provide them with scholarship information; and
     (4) Provide data showing the race, ethnicity, income, and other available demographic information of students who achieve level four of the math and science Washington assessment of student learning in the tenth grade. Compare those data with comparable information on the tenth grade student population as a whole. Submit a report with the analysis to the committees responsible for education and higher education in the legislature on December 1st of even-numbered years.

NEW SECTION.  Sec. 207   The board shall:
     (1) Purchase GET units to be owned and held in trust by the board, for the purpose of scholarship awards as provided for in this section;
     (2) Distribute scholarship funds, in the form of GET units or through direct payments from the GET ready for math and science scholarship account, to institutions of higher education on behalf of eligible recipients identified by the program administrator;
     (3) Provide the program administrator with annual reports regarding enrollment, contact, and graduation information of GET ready for math and science scholarship recipients, if the recipients have given permission for the board to do so;
     (4) Collect repayments from former scholarship recipients who do not meet the eligibility criteria or work obligations; and
     (5) Establish rules for scholarship repayment, approved leaves of absence, deferments, and exceptions to recognize extenuating circumstances that may impact students.

NEW SECTION.  Sec. 208   The program administrator shall:
     (1) Recruit a minimum of eight private partners to provide input into the development and administration of the GET ready for math and science program;
     (2) Solicit and accept grants and donations from private sources to match state funds appropriated for the GET ready for math and science scholarship program;
     (3) Develop and implement an application, selection, and notification process for awarding GET ready for math and science scholarships;
     (4) Notify institutions of higher education of scholarship recipients who will attend their institutions and inform them of the terms of the students' eligibility; and
     (5) Report to private donors on the program outcomes and facilitate contact between scholarship recipients and donors, if the recipients have given the program administrator permission to do so, in order for donors to offer employment opportunities, internships, and career information to recipients.

NEW SECTION.  Sec. 209   The board and the program administrator shall jointly determine criteria for qualifying undergraduate programs, majors, and courses leading to a bachelor's degree in mathematics, science, or a related field, offered by institutions of higher education. The board shall publish the criteria for qualified courses, and lists of qualified programs and qualified majors on its web site on a biennial basis.

NEW SECTION.  Sec. 210   (1) The GET ready for math and science scholarship account is created in the custody of the state treasurer.
     (2) The board shall deposit into the account all money received for the GET ready for math and science scholarship program from appropriations and private sources. The account shall be self-sustaining.
     (3) Expenditures from the account shall be used for scholarships to eligible students and for purchases of GET units. Purchased GET units shall be owned and held in trust by the board. Expenditures from the account shall be an equal match of state appropriations and private funds raised by the program administrator.
     (4) With the exception of the operating costs associated with the management of the account by the treasurer's office as authorized in chapter 43.79A RCW, the account shall be credited with all investment income earned by the account.
     (5) Disbursements from the account are exempt from appropriations and the allotment provisions of chapter 43.88 RCW.
     (6) Disbursements from the account shall be made only on the authorization of the board.

NEW SECTION.  Sec. 211   A new section is added to chapter 28B.95 RCW to read as follows:
     Ownership of tuition units purchased by the higher education coordinating board for the GET ready for math and science scholarship program under section 207 of this act shall be in the name of the state of Washington and may be redeemed by the state of Washington on behalf of recipients of GET ready for math and science scholarship program scholarships for tuition and fees.

Sec. 212   RCW 28B.95.060 and 2000 c 14 s 5 are each amended to read as follows:
     (1) The Washington advanced college tuition payment program account is created in the custody of the state treasurer. The account shall be a discrete nontreasury account retaining its interest earnings in accordance with RCW 43.79A.040.
     (2)(a) Except as provided in (b) of this subsection, the governing body shall deposit in the account all money received for the program. The account shall be self-sustaining and consist of payments received from purchasers of tuition units and funds received from other sources, public or private. With the exception of investment and operating costs associated with the investment of money by the investment board paid under RCW 43.33A.160 and 43.84.160, the account shall be credited with all investment income earned by the account. Disbursements from the account are exempt from appropriations and the allotment provisions of chapter 43.88 RCW. Money used for program administration is subject to the allotment of all expenditures. However, an appropriation is not required for such expenditures. Program administration shall include, but not be limited to: The salaries and expenses of the program personnel including lease payments, travel, and goods and services necessary for program operation; contracts for program promotion and advertisement, audits, and account management; and other general costs of conducting the business of the program.
     (b) All money received by the program from the higher education coordinating board for the GET ready for math and science scholarship program shall be deposited in the GET ready for math and science scholarship account created in section 210 of this act.
     (3) The assets of the account may be spent without appropriation for the purpose of making payments to institutions of higher education on behalf of the qualified beneficiaries, making refunds, transfers, or direct payments upon the termination of the Washington advanced college tuition payment program. Disbursements from the account shall be made only on the authorization of the governing body.
     (4) With regard to the assets of the account, the state acts in a fiduciary, not ownership, capacity. Therefore the assets of the program are not considered state money, common cash, or revenue to the state.

Sec. 213   RCW 43.79A.040 and 2006 c 311 s 21 and 2006 c 120 s 2 are each reenacted and amended to read as follows:
     (1) Money in the treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.
     (2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.
     (3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.
     (4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.
     (b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The Washington promise scholarship account, the college savings program account, the Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the foster care scholarship endowment fund, the foster care endowed scholarship trust fund, the students with dependents grant account, the basic health plan self-insurance reserve account, the contract harvesting revolving account, the Washington state combined fund drive account, the commemorative works account, the Washington international exchange scholarship endowment fund, the developmental disabilities endowment trust fund, the energy account, the fair fund, the fruit and vegetable inspection account, the future teachers conditional scholarship account, the game farm alternative account, the GET ready for math and science scholarship account, the grain inspection revolving fund, the juvenile accountability incentive account, the law enforcement officers' and fire fighters' plan 2 expense fund, the local tourism promotion account, the produce railcar pool account, the regional transportation investment district account, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility account, the self-insurance revolving fund, the sulfur dioxide abatement account, the children's trust fund, the Washington horse racing commission Washington bred owners' bonus fund account, the Washington horse racing commission class C purse fund account, the individual development account program account, the Washington horse racing commission operating account (earnings from the Washington horse racing commission operating account must be credited to the Washington horse racing commission class C purse fund account), the life sciences discovery fund, and the reading achievement account. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.
     (c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the advanced environmental mitigation revolving account, the city and county advance right-of-way revolving fund, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.
     (5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

PART 3
IMPLEMENTING POSTSECONDARY OPPORTUNITIES

NEW SECTION.  Sec. 301   The legislature finds that:
     (1) The economic trends of globalization and technological change are increasing the demand for higher and differently skilled workers than in the past;
     (2) Increasing Washington's economic competitiveness requires increasing the supply of skilled workers in the state;
     (3) Improving the labor market competitiveness of all Washington residents requires that all residents have access to postsecondary education; and
     (4) Community and technical college workforce training programs and Washington state apprenticeship and training council-approved apprenticeship programs provide effective and efficient pathways for people to enter high wage, high skill careers while also meeting the needs of the economy.

OPPORTUNITY GRANT PROGRAM

NEW SECTION.  Sec. 302   A new section is added to chapter 28B.50 RCW to read as follows:
     (1) The college board shall develop and implement a workforce education program known as the opportunity grant program to provide funding for students enrolled at qualified institutions of higher education in opportunity grant-eligible programs of study as described in section 304 of this act. Students enrolled in the opportunity grant program are eligible for:
     (a) Funding for tuition and mandatory fees at the public community and technical college rate, prorated if the credit load is less than full time, paid directly to the educational institution; and
     (b) An additional one thousand dollars per academic year for books, tools, and supplies, prorated if the credit load is less than full time.
     (2) Funding under subsection (1)(a) and (b) of this section is limited to a maximum forty-five credits or the equivalent in an opportunity grant-eligible program of study, including required related courses. No student may receive opportunity grant funding for more than forty-five credits or for more than three years from initial receipt of grant funds in one or a combination of programs.

NEW SECTION.  Sec. 303   A new section is added to chapter 28B.50 RCW to read as follows:
     (1) To be eligible for participation in the opportunity grant program established in section 302 of this act, a student must:
     (a) Be a Washington resident student as defined in RCW 28B.15.012 enrolled in an opportunity grant-eligible program of study; and
     (b)(i) Be enrolled on or after January 1, 2008, but before January 1, 2010, and have a family income that is at or below two hundred percent of the federal poverty level using the most current guidelines available from the United States department of health and human services;
     (ii) Be enrolled on or after January 1, 2010, but before January 1, 2012, and have a family income that is at or below the state median family income using the state need grant schedule for the same academic year; or
     (iii) Be enrolled in a qualified institution of higher education on or after January 1, 2012.
     (2) Upon enrolling, the student must provide evidence of commitment to complete the program. The student must make satisfactory progress and maintain a cumulative 2.0 grade point average for continued eligibility. If a student's cumulative grade point average falls below 2.0, the student may petition the institution of higher education of attendance. The qualified institution of higher education has the authority to establish a probationary period until such time as the student's grade point average reaches required standards.
     (3) Subject to funds appropriated for this specific purpose, qualified institutions of higher education shall receive an enhancement of one thousand five hundred dollars for each full-time equivalent student enrolled in the opportunity grant program whose income is below two hundred percent of the federal poverty level. The funds shall be used for individualized support services which may include, but are not limited to, college and career advising, tutoring, emergency child care, and emergency transportation. The qualified institution of higher education is expected to help students access all financial resources and support services available to them through alternative sources.
     (4) The college board shall be accountable for student retention and completion of opportunity grant-eligible programs of study. It shall set annual performance measures and targets and monitor the performance at all qualified institutions of higher education. The college board must reduce funding at institutions of higher education that do not meet targets for two consecutive years, based on criteria developed by the college board.
     (5) The college board and higher education coordinating board shall work together to ensure that students participating in the opportunity grant program:
     (a) Receive all other state and federal financial aid to which they are entitled while receiving an opportunity grant; and
     (b) Receive priority for state and federal financial aid when pursuing a subsequent related credential, certificate, or degree at a two or four-year institution of higher education, after completing the opportunity grant program.
     (6) The college board and higher education coordinating board shall document the amount of opportunity grant assistance and the types and amounts of other sources of financial aid received by participating students. Annually, they shall produce a summary of the data.
     (7) The college board shall:
     (a) Begin developing the program no later than August 1, 2007, with student enrollment to begin no later than January 14, 2008; and
     (b) Submit a progress report to the legislature by December 1, 2008.
     (8) The college board may, in implementing the opportunity grant program, accept, use, and expend or dispose of contributions of money, services, and property. All such moneys received by the college board for the program must be deposited in an account at a depository approved by the state treasurer. Only the college board or a duly authorized representative thereof may authorize expenditures from this account. In order to maintain an effective expenditure and revenue control, the account is subject in all respects to chapter 43.88 RCW, but no appropriation is required to permit expenditure of moneys in the account.

OPPORTUNITY PARTNERSHIPS

NEW SECTION.  Sec. 304   A new section is added to chapter 28B.50 RCW to read as follows:
     The college board, in partnership with business, labor, and the workforce training and education coordinating board, shall:
     (1) Identify job specific training programs offered by qualified postsecondary institutions that lead to a credential, certificate, or degree in high demand occupations, which are occupations where data show that employer demand for workers exceeds the supply of qualified job applicants throughout the state or in a specific region, and where training capacity is underutilized;
     (2) Gain recognition of the credentials, certificates, and degrees by Washington's employers and labor organizations. The college board shall designate these recognized credentials, certificates, and degrees as "opportunity grant-eligible programs of study"; and
     (3) Market the credentials, certificates, and degrees to potential students, businesses, and apprenticeship programs as a way for individuals to advance in their careers and to better meet the needs of industry.

NEW SECTION.  Sec. 305   A new section is added to chapter 28B.50 RCW to read as follows:
     (1) Community and technical colleges shall partner with local workforce development councils to develop the opportunity partnership program. The opportunity partnership program may be newly developed or part of an existing program, and shall provide mentoring to students participating in the opportunity grant program. The program must develop criteria and identify opportunity grant students who would benefit by having a mentor. Each participating student shall be matched with a business or labor mentor employed in the field in which the student is interested. The mentor shall help the student explore careers and employment options through any combination of tours, informational interviews, job shadowing, and internships.
     (2) Subject to funds appropriated for this specific purpose, the workforce training and education coordinating board shall create the opportunity partnership program. The board, in partnership with business, labor, and the college board, shall determine the criteria for the distribution of funds.
     (3) The board may, in implementing this section, accept, use, and dispose of contributions of money, services, and property. All moneys received by the board for the purposes of this section must be deposited in a depository approved by the state treasurer. Only the board or a duly authorized representative thereof may authorize expenditures from this account. In order to maintain an effective expenditure and revenue control, the account is subject in all respects to chapter 43.88 RCW, but no appropriation is required to permit expenditure of moneys in the account.

MISCELLANEOUS

Sec. 306   RCW 28B.50.030 and 2005 c 258 s 8 are each amended to read as follows:
     As used in this chapter, unless the context requires otherwise, the term:
     (1) "System" shall mean the state system of community and technical colleges, which shall be a system of higher education.
     (2) "Board" shall mean the work force training and education coordinating board.
     (3) "College board" shall mean the state board for community and technical colleges created by this chapter.
     (4) "Director" shall mean the administrative director for the state system of community and technical colleges.
     (5) "District" shall mean any one of the community and technical college districts created by this chapter.
     (6) "Board of trustees" shall mean the local community and technical college board of trustees established for each college district within the state.
     (7) "Occupational education" shall mean that education or training that will prepare a student for employment that does not require a baccalaureate degree, and education and training leading to an applied baccalaureate degree.
     (8) "K-12 system" shall mean the public school program including kindergarten through the twelfth grade.
     (9) "Common school board" shall mean a public school district board of directors.
     (10) "Community college" shall include those higher education institutions that conduct education programs under RCW 28B.50.020.
     (11) "Technical college" shall include those higher education institutions with the sole mission of conducting occupational education, basic skills, literacy programs, and offering on short notice, when appropriate, programs that meet specific industry needs. The programs of technical colleges shall include, but not be limited to, continuous enrollment, competency-based instruction, industry-experienced faculty, curriculum integrating vocational and basic skills education, and curriculum approved by representatives of employers and labor. For purposes of this chapter, technical colleges shall include Lake Washington Vocational-Technical Institute, Renton Vocational-Technical Institute, Bates Vocational-Technical Institute, Clover Park Vocational Institute, and Bellingham Vocational-Technical Institute.
     (12) "Adult education" shall mean all education or instruction, including academic, vocational education or training, basic skills and literacy training, and "occupational education" provided by public educational institutions, including common school districts for persons who are eighteen years of age and over or who hold a high school diploma or certificate. However, "adult education" shall not include academic education or instruction for persons under twenty-one years of age who do not hold a high school degree or diploma and who are attending a public high school for the sole purpose of obtaining a high school diploma or certificate, nor shall "adult education" include education or instruction provided by any four year public institution of higher education.
     (13) "Dislocated forest product worker" shall mean a forest products worker who: (a)(i) Has been terminated or received notice of termination from employment and is unlikely to return to employment in the individual's principal occupation or previous industry because of a diminishing demand for his or her skills in that occupation or industry; or (ii) is self-employed and has been displaced from his or her business because of the diminishing demand for the business' services or goods; and (b) at the time of last separation from employment, resided in or was employed in a rural natural resources impact area.
     (14) "Forest products worker" shall mean a worker in the forest products industries affected by the reduction of forest fiber enhancement, transportation, or production. The workers included within this definition shall be determined by the employment security department, but shall include workers employed in the industries assigned the major group standard industrial classification codes "24" and "26" and the industries involved in the harvesting and management of logs, transportation of logs and wood products, processing of wood products, and the manufacturing and distribution of wood processing and logging equipment. The commissioner may adopt rules further interpreting these definitions. For the purposes of this subsection, "standard industrial classification code" means the code identified in RCW 50.29.025(3).
     (15) "Dislocated salmon fishing worker" means a finfish products worker who: (a)(i) Has been terminated or received notice of termination from employment and is unlikely to return to employment in the individual's principal occupation or previous industry because of a diminishing demand for his or her skills in that occupation or industry; or (ii) is self-employed and has been displaced from his or her business because of the diminishing demand for the business's services or goods; and (b) at the time of last separation from employment, resided in or was employed in a rural natural resources impact area.
     (16) "Salmon fishing worker" means a worker in the finfish industry affected by 1994 or future salmon disasters. The workers included within this definition shall be determined by the employment security department, but shall include workers employed in the industries involved in the commercial and recreational harvesting of finfish including buying and processing finfish. The commissioner may adopt rules further interpreting these definitions.
     (17) "Rural natural resources impact area" means:
     (a) A nonmetropolitan county, as defined by the 1990 decennial census, that meets three of the five criteria set forth in subsection (18) of this section;
     (b) A nonmetropolitan county with a population of less than forty thousand in the 1990 decennial census, that meets two of the five criteria as set forth in subsection (18) of this section; or
     (c) A nonurbanized area, as defined by the 1990 decennial census, that is located in a metropolitan county that meets three of the five criteria set forth in subsection (18) of this section.
     (18) For the purposes of designating rural natural resources impact areas, the following criteria shall be considered:
     (a) A lumber and wood products employment location quotient at or above the state average;
     (b) A commercial salmon fishing employment location quotient at or above the state average;
     (c) Projected or actual direct lumber and wood products job losses of one hundred positions or more;
     (d) Projected or actual direct commercial salmon fishing job losses of one hundred positions or more; and
     (e) An unemployment rate twenty percent or more above the state average. The counties that meet these criteria shall be determined by the employment security department for the most recent year for which data is available. For the purposes of administration of programs under this chapter, the United States post office five-digit zip code delivery areas will be used to determine residence status for eligibility purposes. For the purpose of this definition, a zip code delivery area of which any part is ten miles or more from an urbanized area is considered nonurbanized. A zip code totally surrounded by zip codes qualifying as nonurbanized under this definition is also considered nonurbanized. The office of financial management shall make available a zip code listing of the areas to all agencies and organizations providing services under this chapter.
     (19) "Applied baccalaureate degree" means a baccalaureate degree awarded by a college under RCW 28B.50.810 for successful completion of a program of study that is:
     (a) Specifically designed for individuals who hold an associate of applied science degree, or its equivalent, in order to maximize application of their technical course credits toward the baccalaureate degree; and
     (b) Based on a curriculum that incorporates both theoretical and applied knowledge and skills in a specific technical field.
     (20) "Qualified institutions of higher education" means:
     (a) Washington public community and technical colleges;
     (b) Private career schools that are members of an accrediting association recognized by rule of the higher education coordinating board for the purposes of chapter 28B.92 RCW; and
     (c) Washington state apprenticeship and training council-approved apprenticeship programs.

PART 4
EXPANDING THE STATE NEED GRANT

Sec. 401   RCW 28B.92.060 and 2005 c 93 s 3 are each amended to read as follows:
     In awarding need grants, the board shall proceed substantially as follows: PROVIDED, That nothing contained herein shall be construed to prevent the board, in the exercise of its sound discretion, from following another procedure when the best interest of the program so dictates:
     (1) The board shall annually select the financial aid award recipients from among Washington residents applying for student financial aid who have been ranked according to:
     (a) Financial need as determined by the amount of the family contribution; and
     (b) Other considerations, such as whether the student is a former foster youth.
     (2) The financial need of the highest ranked students shall be met by grants depending upon the evaluation of financial need until the total allocation has been disbursed. Funds from grants which are declined, forfeited or otherwise unused shall be reawarded until disbursed, except that eligible former foster youth shall be assured receipt of a grant.
     (3) A student shall be eligible to receive a state need grant for up to five years, or the credit or clock hour equivalent of five years, or up to one hundred twenty-five percent of the published length of time of the student's program. A student may not start a new associate degree program as a state need grant recipient until at least five years have elapsed since earning an associate degree as a need grant recipient, except that a student may earn two associate degrees concurrently. Qualifications for renewal will include maintaining satisfactory academic progress toward completion of an eligible program as determined by the board. Should the recipient terminate his or her enrollment for any reason during the academic year, the unused portion of the grant shall be returned to the state educational grant fund by the institution according to the institution's own policy for issuing refunds, except as provided in RCW 28B.92.070.
     (4) In computing financial need, the board shall determine a maximum student expense budget allowance, not to exceed an amount equal to the total maximum student expense budget at the public institutions plus the current average state appropriation per student for operating expense in the public institutions.
     (5)(a) A student who is enrolled in three to six credit-bearing quarter credits, or the equivalent semester credits, may receive a grant for up to one academic year before beginning a program that leads to a degree or certificate.
     (b) An eligible student enrolled on a less-than-full-time basis shall receive a prorated portion of his or her state need grant for any academic period in which he or she is enrolled on a less-than-full-time basis, as long as funds are available.
     (c) An institution of higher education may award a state need grant to an eligible student on a provisional basis before the student completes the required free application for federal student aid if:
     (i) The student has not previously received a state need grant from that institution;
     (ii) The institution has conducted a review of the student's financial condition, and the financial condition of the student's family if the student is a dependent student, and has determined that the student is likely eligible for a state need grant; and
     (iii) The student has signed a document attesting to the fact that the financial information the student provided to the institution is accurate and complete and that the student agrees to repay the institution for the grant amount if the student is subsequently deemed to be ineligible for a state need grant.
     (d) An institution of higher education that awards a student a state need grant on a provisional basis shall require the student to submit his or her free application for federal student aid by no later than the forty-fifth day of the quarter or sixtieth day of the semester in which the student received the provisional grant.
     (e) A student who fails to submit the free application for federal student aid by the forty-fifth day of the quarter or the sixtieth day of the semester in which the student receives a provisional grant shall be deemed to have been ineligible to receive a state need grant for that quarter or semester, and shall repay the amount of the grant. In the case of exceptional circumstances, a school may extend the time period in which a particular student must submit the free application for federal student aid. However, that time period may not be extended beyond the last day of the quarter or semester in which the student received a provisional grant.
     (f) No student who is required to repay a provisional state need grant is eligible to receive a subsequent state need grant until the student has repaid the provisional grant in full.
     (6)
As used in this section, "former foster youth" means a person who is at least eighteen years of age, but not more than twenty-four years of age, who was a dependent of the department of social and health services at the time he or she attained the age of eighteen.

Sec. 402   RCW 28B.92.080 and 2004 c 275 s 39 are each amended to read as follows:
     For a student to be eligible for a state need grant a student must:
     (1) Be a "needy student" or "disadvantaged student" as determined by the board in accordance with RCW 28B.92.030 (3) and (4).
     (2) Have been domiciled within the state of Washington for at least one year.
     (3) Be enrolled or accepted for enrollment ((on at least a half-time basis)) for at least three quarter credits or the equivalent semester credits at an institution of higher education in Washington as defined in RCW 28B.92.030(1).
     (4) Have complied with all the rules and regulations adopted by the board for the administration of this chapter.

NEW SECTION.  Sec. 403   A new section is added to chapter 28B.92 RCW to read as follows:
     Institutions of higher education are encouraged to review their policies and procedures regarding financial aid for students taking a less-than-half-time course load, and to implement policies and procedures providing students taking a less-than-half-time course load with the same access to institutional aid, including tuition waivers, as provided to students enrolled half time or more.

Sec. 404   RCW 28B.15.820 and 2004 c 275 s 66 are each amended to read as follows:
     (1) Each institution of higher education, including technical colleges, shall deposit a minimum of three and one-half percent of revenues collected from tuition and services and activities fees in an institutional financial aid fund that is hereby created and which shall be held locally. Moneys in the fund shall be used only for the following purposes: (a) To make guaranteed long-term loans to eligible students as provided in subsections (3) through (8) of this section; (b) to make short-term loans as provided in subsection (9) of this section; or (c) to provide financial aid to needy students as provided in subsection (10) of this section.
     (2) An "eligible student" for the purposes of subsections (3) through (8) and (10) of this section is a student registered for at least ((six)) three credit hours or the equivalent, who is eligible for resident tuition and fee rates as defined in RCW 28B.15.012 and 28B.15.013, and who is a "needy student" as defined in RCW 28B.92.030.
     (3) The amount of the guaranteed long-term loans made under this section shall not exceed the demonstrated financial need of the student. Each institution shall establish loan terms and conditions which shall be consistent with the terms of the guaranteed loan program established by 20 U.S. Code Section 1071 et seq., as now or hereafter amended. All loans made shall be guaranteed by the Washington student loan guaranty association or its successor agency. Institutions are hereby granted full authority to operate as an eligible lender under the guaranteed loan program.
     (4) Before approving a guaranteed long-term loan, each institution shall analyze the ability of the student to repay the loan based on factors which include, but are not limited to, the student's accumulated total education loan burdens and the employment opportunities and average starting salary characteristics of the student's chosen fields of study. The institution shall counsel the student on the advisability of acquiring additional debt, and on the availability of other forms of financial aid.
     (5) Each institution is responsible for collection of guaranteed long-term loans made under this section and shall exercise due diligence in such collection, maintaining all necessary records to insure that maximum repayments are made. Institutions shall cooperate with other lenders and the Washington student loan guaranty association, or its successor agency, in the coordinated collection of guaranteed loans, and shall assure that the guarantability of the loans is not violated. Collection and servicing of guaranteed long-term loans under this section shall be performed by entities approved for such servicing by the Washington student loan guaranty association or its successor agency: PROVIDED, That institutions be permitted to perform such servicing if specifically recognized to do so by the Washington student loan guaranty association or its successor agency. Collection and servicing of guaranteed long-term loans made by community colleges under subsection (1) of this section shall be coordinated by the state board for community and technical colleges and shall be conducted under procedures adopted by the state board.
     (6) Receipts from payment of interest or principal or any other subsidies to which institutions as lenders are entitled, that are paid by or on behalf of borrowers of funds under subsections (3) through (8) of this section, shall be deposited in each institution's financial aid fund and shall be used to cover the costs of making the guaranteed long-term loans under this section and maintaining necessary records and making collections under subsection (5) of this section: PROVIDED, That such costs shall not exceed five percent of aggregate outstanding loan principal. Institutions shall maintain accurate records of such costs, and all receipts beyond those necessary to pay such costs, shall be deposited in the institution's financial aid fund.
     (7) The governing boards of the state universities, the regional universities, and The Evergreen State College, and the state board for community and technical colleges, on behalf of the community colleges and technical colleges, shall each adopt necessary rules and regulations to implement this section.
     (8) First priority for any guaranteed long-term loans made under this section shall be directed toward students who would not normally have access to educational loans from private financial institutions in Washington state, and maximum use shall be made of secondary markets in the support of loan consolidation.
     (9) Short-term loans, not to exceed one year, may be made from the institutional financial aid fund to students enrolled in the institution. No such loan shall be made to any student who is known by the institution to be in default or delinquent in the payment of any outstanding student loan. A short-term loan may be made only if the institution has ample evidence that the student has the capability of repaying the loan within the time frame specified by the institution for repayment.
     (10) Any moneys deposited in the institutional financial aid fund that are not used in making long-term or short-term loans may be used by the institution for locally-administered financial aid programs for needy students, such as need-based institutional employment programs or need-based tuition and fee scholarship or grant programs. These funds shall be used in addition to and not to replace institutional funds that would otherwise support these locally-administered financial aid programs. First priority in the use of these funds shall be given to needy students who have accumulated excessive educational loan burdens. An excessive educational loan burden is a burden that will be difficult to repay given employment opportunities and average starting salaries in the student's chosen fields of study. Second priority in the use of these funds shall be given to needy single parents, to assist these students with their educational expenses, including expenses associated with child care and transportation.

PART 5
FINANCIAL AID ACCESS AND TRANSPARENCY

NEW SECTION.  Sec. 501   (1) The higher education coordinating board shall conduct a review of:
     (a) The current types and amounts of need-based financial aid available to students in Washington from state, federal, and institutional sources, with information on the eligible population for each source; and
     (b) The level of understanding of available financial aid and requirements for accessing the aid, among high school students, high school parents, and college students.
     (2) Based on the results of the review, the higher education coordinating board shall develop and propose a plan to:
     (a) Simplify the delivery of financial aid;
     (b) Provide easy access to high quality financial aid information; and
     (c) Address gaps in the financial aid system.
     (3) The board shall submit its plan to the fiscal and higher education committees of the legislature by December 20, 2007, and shall coordinate its research and development with the state board for community and technical colleges and the superintendent of public instruction.
     (4) The board may, in carrying out this study, accept, use, and dispose of contributions of money, services, and property. All moneys received by the board for the study must be deposited in a depository approved by the state treasurer. Disbursements of such funds shall be on authorization of the institute or a duly authorized representative thereof. In order to maintain an effective expenditure and revenue control, such funds are subject in all respects to chapter 43.88 RCW, but no appropriation is required to permit expenditure of such funds.
     (5) This section expires December 31, 2007.

PART 6
STUDENT TRANSITIONS

NEW SECTION.  Sec. 601   A new section is added to chapter 28B.76 RCW to read as follows:
     (1) The legislature desires to make transitions among high school, two-year, and four-year institutions of higher education through a standard practice, whether through course design, common course numbering, or transfer agreements. The legislature recognizes that significant progress has been accomplished in this area through a joint access oversight group. However, challenges that still exist lead to unnecessary time and money costs for students. The higher education coordinating board, in collaboration with the state board for community and technical colleges and the council of presidents, shall convene a work group that includes representatives of the public baccalaureate institutions and the community and technical colleges. The work group may include representatives from independent four-year institutions as appropriate. The work group shall be responsible for identifying and examining:
     (a) The criteria and circumstances under which courses that transfer within an associate degree program do and do not transfer separately from a degree;
     (b) A comprehensive list of additional major-related program agreements that are needed to best prepare transfer students for specific baccalaureate majors;
     (c) The current availability of baccalaureate degree programs into which associate of applied science technical degrees transfer, and a list of those to be considered in the future; and
     (d) The transferability of advanced placement courses, and other college-level and dual credit coursework taken during high school.
     (2) Based upon the information identified by the work group in subsection (1) of this section, the work group shall provide the higher education coordinating board with a recommended work plan and timetable to improve transfer, that includes: (a) Options for course and degree transfer, (b) an expansion of baccalaureate degree options for graduates of associate of applied science technical degree programs, and (c) recommended strategies to improve student understanding of courses that are appropriate for transfer into various types of baccalaureate degrees. The higher education coordinating board, in collaboration with the state board for community and technical colleges and the council of presidents, shall review and modify the work group's recommendations as necessary.
     (3) The higher education coordinating board shall report to the higher education committees of the house of representatives and the senate on the work plan, its implementation, and any resulting policy changes on an annual basis, beginning January 10, 2008.

PART 7
MISCELLANEOUS PROVISIONS

NEW SECTION.  Sec. 701   Part headings and captions used in this act are not any part of the law.

NEW SECTION.  Sec. 702   Sections 201 through 210 of this act constitute a new chapter in Title 28B RCW.

--- END ---