wa-law.org > bill > 2025-26 > HB 2474 > Original Bill
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For the purpose of providing relief to students impacted by the violations of provisions contained in this chapter, the council shall establish, maintain, and administer a student achievement council tuition recovery trust fund created in RCW 28B.85.240. All funds collected for the student achievement council tuition recovery trust fund are payable to the state for the benefit and protection of any student or enrollee of a private school licensed under this chapter, for purposes including but not limited to the settlement of claims related to any consumer protection requirement for schools regulated under this chapter.
No liability accrues to the state from claims made against the student achievement council tuition recovery trust fund.
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The council may impose a fee structure, set forth in rule, on schools licensed under this chapter to fund the student achievement council tuition recovery trust fund.
The council must determine an amount that would be sufficient in the student achievement council tuition recovery trust fund to provide relief to students in the event of a school closure. The council shall adopt schedules of times and amounts for effecting payments of fees. To reach the amount determined, the council may phase in the collection of fees, but must achieve the amount determined to be sufficient no later than five years from June 7, 2018.
Money from the student achievement council tuition recovery trust fund may be used for:
Providing refunds to students affected by a school's violation of any consumer protection requirement contained in this chapter;
Securing and administering student records; and
Any other response the council determines is necessary to mitigate impacts of a potential or actual violation of a requirement contained in this chapter, including a school closure.
In order for a school to be and remain licensed under this chapter, each school shall, in addition to other requirements under this chapter, make cash deposits on behalf of the school into a student achievement council tuition recovery trust fund.
The student achievement council tuition recovery trust fund's liability with respect to each participating school commences on the date of the initial deposit into the student achievement council tuition recovery trust fund made on its behalf and ceases one year from the date the school is no longer licensed under this chapter.
The council shall adopt by rule a matrix for calculating the deposits into the student achievement council tuition recovery trust fund on behalf of each school.
No vested right or interest in deposited funds is created or implied for the depositor at any time during the operation of the student achievement council tuition recovery trust fund or at any such future time that the student achievement council tuition recovery trust fund may be dissolved. All funds deposited are payable to the state for the purposes described under this section. The council shall maintain the student achievement council tuition recovery trust fund, serve appropriate notices to affected schools when scheduled deposits are due, collect deposits, and make disbursements to settle claims against the student achievement council tuition recovery trust fund.
The council shall adopt rules to address notifying potential claimants, settling claims, disbursing funds, and any other processes necessary to implement the purpose of this section.
An institution that discontinues operations or that discontinues the educational program of any currently enrolled student must:
Provide a teach-out opportunity that allows the student to complete the program under the same modality and conditions as existed prior to the decision to discontinue the program; or
Enter into a transfer agreement acceptable to the council that allows the student to complete the program under the same modality and conditions as existed prior to the decision to discontinue the program. The transfer agreement must not result in increased costs to students and must be with an institution that:
Is accredited by an accrediting association recognized by the council and is in good standing with its accreditor;
Is not currently under financial aid restrictions by the United States department of education;
Provides the student a reasonable opportunity to complete the program with substantially the same number of credit hours as was required by the institution operating the closing program;
Is within a reasonable distance of the closing institution, unless instruction occurs entirely via distance education; and
Within the previous five years, has not had any judgments related to a consumer protection law entered against it in favor of a law enforcement agency or entered into any settlement agreements related to a consumer protection law with a law enforcement agency.
An institution that violates this section shall be required to provide a refund of tuition and fees paid by a student who is enrolled at the time the student's program is discontinued.
Institutional debt owed by a student who is enrolled in a program that is discontinued in violation of this section is void and may not be recovered, collected, or enforced by the institution or any other person or entity.