BILL REQ. #: S-1357.1
State of Washington | 60th Legislature | 2007 Regular Session |
Read first time 02/01/2007. Referred to Committee on Higher Education.
AN ACT Relating to higher education costs; amending RCW 28B.15.820 and 28B.92.080; reenacting and amending RCW 43.79A.040; adding new sections to chapter 28B.15 RCW; adding new sections to chapter 28B.50 RCW; adding new chapters to Title 28B RCW; and creating new sections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 101 A new section is added to chapter 28B.15
RCW to read as follows:
(2) 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.
(3) By September 1st of each year beginning 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.
(4) 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:
NEW SECTION. Sec. 201
(2) Maximum scholarship award amounts shall be as provided in this
section.
(a) For students attending two or four-year institutions of higher
education as defined in RCW 28B.10.016, the value of the award may not
exceed the difference between the student's tuition, fees, books, and
materials, less the value of any state or institutional financial aid
the student receives for tuition, fees, books, and materials.
(b) For students attending private four-year institutions of higher
education in Washington, the award amount may not exceed the
representative average of awards granted to students in public research
universities in Washington.
(c) For students attending private vocational schools in
Washington, the award amount may not exceed the representative average
of awards granted to students in public community and technical
colleges in Washington.
(d) Recipients may receive no more than four full-time years' worth
of scholarship awards. All eligibility for the scholarship expires
upon receipt of a baccalaureate degree or five calendar years after
college enrollment.
NEW SECTION. Sec. 202
(a) To be enrolled, a student must sign a pledge during seventh or
eighth grade that includes a commitment to graduate from high school
with at least a "C" average and no felony convictions. The pledge must
be witnessed by a parent or guardian and forwarded to the higher
education coordinating board by mail or electronically, as indicated on
the pledge form.
(b) At the time the pledge is signed, the student must be eligible
for free or reduced-price lunches, or will be a first generation
college student, meaning that neither parent has attained a
baccalaureate degree.
(c) The student must be a member of the high school graduating
class of 2012 or later.
(d) The student must complete the application for the scholarship
while in high school.
(2) To receive and maintain scholarship eligibility, a student
must:
(a) Be eligible for resident tuition and fee rates as defined in
RCW 28B.15.012 and 28B.15.013;
(b) Have fulfilled the terms and conditions of the pledge described
in this section;
(c) Have a family income that is at or below the state median
family income in the calendar year preceding college attendance;
(d) Enter a public or private institution of higher education in
Washington that is accredited by an accrediting agency recognized by
rule of the higher education coordinating board. The student must
enroll in an institution of higher education within one calendar year
of high school graduation, with exceptions made for illness, military
service, or other extenuating circumstances;
(e) Maintain satisfactory academic progress as defined by the
institution of higher education in which the student is enrolled; and
(f) File for state and federal financial aid by completing and
submitting the free application for federal student aid (FAFSA) in a
timely manner. The higher education coordinating board shall set and
publicize annual deadlines.
NEW SECTION. Sec. 203
(a) Notify elementary, middle, and junior high school students,
parents, teachers, counselors, and principals about the Washington
learns scholarship program; and
(b) Work with the higher education coordinating board to develop
application collection and student tracking procedures.
(2) The higher education coordinating board shall:
(a) Establish administrative rules and policies to carry out the
Washington learns scholarship program;
(b) Develop and distribute, to all schools with students enrolled
in grade seven or eight, a pledge form that can be completed and
returned electronically or by mail by the student or the school to the
higher education coordinating board;
(c) Provide information to all middle and junior high schools to
inform them about the program and the eligibility and application
requirements;
(d) Develop and implement a student application, selection, and
notification process for scholarships;
(e) Track scholarship recipients to ensure continued eligibility
and determine student compliance for awarding of scholarships;
(f) Subject to appropriation, deposit funds into the state
educational trust fund;
(g) Purchase tuition units under the advanced college tuition
payment program in chapter 28B.95 RCW to be owned and held in trust by
the board, for the purpose of scholarship awards as provided for in
this subsection (2); and
(h) Distribute scholarship funds, in the form of tuition units
purchased under the advanced college tuition payment program in chapter
28B.95 RCW or through direct payments from the state educational trust
fund, to institutions of higher education on behalf of scholarship
recipients identified by the board, as long as recipients maintain
satisfactory academic progress.
NEW SECTION. Sec. 301
(2) A public-private partnership shall be developed to administer
the scholarship, with the private partner being a private nonprofit
foundation.
NEW SECTION. Sec. 302
(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) "Program administrator" means the private nonprofit foundation
that is the private partner in the public-private partnership under
this chapter.
(4) "Qualified program" means the qualified mathematics or science-related degree program determined by the board and the program
administrator under section 307 of this act.
NEW SECTION. Sec. 303
(a) Be eligible for resident tuition and fee rates as defined in
RCW 28B.15.012 and 28B.15.013;
(b) Have achieved level four on the mathematics or science
Washington assessment of student learning in the tenth grade;
(c) Declare the intent to enter a qualified program at an
institution of higher education in Washington;
(d) Declare the intent to work in Washington state for at least
three years after graduation from college in an occupation related to
the college program from which the student will graduate; and
(e) Have a family income that is at or below one hundred twenty-five percent of the state median family income at the time the
application is submitted and for up to the previous two years.
(2) In order to receive and maintain scholarship eligibility, a
student must:
(a) Enter a qualified institution of higher education in Washington
state within one calendar year of high school graduation;
(b) Maintain satisfactory academic progress as defined by the
institution of higher education in which the student is enrolled;
(c) Take at least one college-level mathematics or science course
each term before being accepted into a qualified program; and
(d) Enter a qualified program as soon as practicable after program
admission prerequisites are fulfilled but not later than the first
semester of the junior year in college.
NEW SECTION. Sec. 304
(1) Notify elementary, middle, junior high, and high school
students, parents, teachers, counselors, and principals 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; and
(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.
NEW SECTION. Sec. 305
(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
scholarship recipients identified by the program administrator, as long
as recipients continue to meet the requirements of section 303(2) of
this act;
(3) Provide the program administrator with annual reports of
enrollment, contact, and graduation information of scholars, provided
they have given permission for the board to do so;
(4) Track program graduates to ensure that they work in Washington
state in a mathematics or science-related occupation for at least three
years after college graduation, or pay back the scholarship, prorated
based on the length of time worked in a mathematics or science-related
occupation in Washington. Students may postpone their in-state work
requirement in order to attend graduate school in a qualified program
for up to three years after completion of an undergraduate qualified
program.
NEW SECTION. Sec. 306
(1) Raise funds from the private and nonprofit sectors to match
state funds appropriated for the GET ready for math and science
scholarship program;
(2) Develop and implement a student application, selection, and
notification process for scholarships;
(3) Notify institutions of higher education of scholarship
recipients who will attend their institutions and inform them of the
terms of the students' eligibility; and
(4) Report to private donors on the program outcomes and facilitate
contact between students and donors, if students have given the
foundation permission to do so, in order for donors to offer summer
employment opportunities, internships, career information and job
opportunities after graduation.
NEW SECTION. Sec. 307
NEW SECTION. Sec. 308
(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.
Sec. 309 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.
NEW SECTION. Sec. 401
(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-skilled careers while also meeting the
needs of the economy.
NEW SECTION. Sec. 402 A new section is added to chapter 28B.50
RCW to read as follows:
(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 allowance for books, tools, and supplies.
(2) Funding under this section is limited to a maximum forty-five
credits in a regional opportunity grant-eligible program of study,
including required related courses. No student may receive regional
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. 403 A new section is added to chapter 28B.50
RCW to read as follows:
(2) The college board shall develop goals for student retention and
completion. It shall set annual performance measures and targets and
monitor the performance at all public community and technical colleges.
(3) The college board and the higher education coordinating board
shall work together to ensure that students participating in the
regional opportunity grant program receive all other state and federal
financial aid to which they are entitled while receiving a regional
opportunity grant.
(4) The college board and the higher education coordinating board
shall document the amount of regional 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.
(5) The college board shall:
(a) Develop the program and begin enrolling students no later than
January 2008; and
(b) Submit a progress report to appropriate committees of the
legislature by December 1, 2008.
NEW SECTION. Sec. 404 A new section is added to chapter 28B.50
RCW to read as follows:
(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 employer
demand for workers exceeds the supply of qualified job applicants
throughout the state or in a specific region;
(2) Designate recognized credentials, certificates, and degrees as
"regional 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. 501 The legislature finds that many adults who
wish to improve their skills or complete a college degree also have to
work full time to support a family or are single parents, and are able
to attend only one class per term. This should not disqualify them
from the state's primary financial aid program if they would otherwise
be eligible based on their income.
Sec. 502 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.
Sec. 503 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)) in at least three 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. 601
NEW SECTION. Sec. 602 Sections 201 through 203 of this act
constitute a new chapter in Title
NEW SECTION. Sec. 603 Sections 301 through 308 of this act
constitute a new chapter in Title