Postsecondary ed protections

AN ACT Relating to postsecondary education consumer protections; 1
amending RCW 28B.85.020, 28B.85.070, 28B.85.090, and 28B.85.095; and 2
adding a new section to chapter 28B.85 RCW. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 28B.85.020 and 2013 c 218 s 3 are each amended to 5
read as follows: 6
(1) The council: 7
(a) Shall adopt by rule, in accordance with chapter 34.05 RCW, 8
minimum standards for degree-granting institutions concerning 9
granting of degrees, quality of education, unfair business practices, 10
financial stability, and other necessary measures to protect citizens 11
of this state against substandard, fraudulent, or deceptive 12
practices. The rules shall require that an institution operating in 13
Washington: 14
(i) Be accredited; 15
(ii) Have applied for accreditation and such application is 16
pending before the accrediting agency; 17
(iii) Have been granted a waiver by the council waiving the 18
requirement of accreditation; or 19
(iv) Have been granted an exemption by the council from the 20
requirements of this subsection (1)(a), provided that any such 21
H-0402.1
HOUSE BILL 1279
State of Washington 69th Legislature 2025 Regular Session
By Representatives Pollet, Leavitt, Doglio, Reed, and Simmons
Read first time 01/14/25. Referred to Committee on Postsecondary
Education & Workforce.
p. 1 HB 1279
exemption shall not suspend, supersede, or reduce student consumer 1
protections or the authority of the council to investigate and 2
enforce provisions of this chapter; 3
(b) May investigate any entity the council reasonably believes to 4
be subject to the jurisdiction of this chapter. In connection with 5
the investigation, the council may administer oaths and affirmations, 6
issue subpoenas and compel attendance, take evidence, and require the 7
production of any books, papers, correspondence, memorandums, or 8
other records which the council deems relevant or material to the 9
investigation. The council, including its staff and any other 10
authorized persons, may conduct site inspections, the cost of which 11
shall be borne by the institution, and examine records of all 12
institutions subject to this chapter; 13
(c) ((May negotiate and enter into )) Is responsible for 14
maintaining and developing interstate reciprocity agreements with 15
other state or multistate entities if the agreements are consistent 16
with the purposes in this chapter as determined by the council , and 17
provided that the agreements:18
(i) Do not suspend, supersede, or reduce student consumer 19
protections or the authority of the council to investigate and 20
enforce provisions of this chapter;21
(ii) Maintain the authority and capabilities of the council to 22
investigate complaints of students who are residents of, or domiciled 23
in, Washington in regard to compliance provisions of this chapter for 24
distance, online, or other degree programs;25
(iii) Do not reduce surety or bond requirements for institutions 26
adopted by the council pursuant to this chapter; and27
(iv) Ensure disclosure of any investigation, suspension, or 28
provisional status relating to either financial instability, 29
eligibility for participation in federal or state financial aid 30
programs, or accreditation requirements to the council and students 31
of the institutions, or prospective students, residing in Washington;32
(d) May enter into agreements with degree-granting institutions 33
of higher education based in this state, that are otherwise exempt 34
under the provisions of ((subsection (1)))(a) of this ((section)) 35
subsection, for the purpose of ensuring consistent consumer 36
protection in interstate distance delivery of higher education;37
(e) Shall develop an interagency agreement with the workforce 38
training and education coordinating board to regulate degree-granting 39
p. 2 HB 1279
private vocational schools with respect to degree and nondegree 1
programs; and 2
(f) Shall develop and disseminate information to the public about 3
entities that sell or award degrees without requiring appropriate 4
academic achievement at the postsecondary level, including but not 5
limited to, a description of the substandard and potentially 6
fraudulent practices of these entities, and advice about how the 7
public can recognize and avoid the entities. To the extent feasible, 8
the information shall include links to additional resources that may 9
assist the public in identifying specific institutions offering 10
substandard or fraudulent degree programs. 11
(2) Financial disclosures provided to the council by degree-12
granting private vocational schools are not subject to public 13
disclosure under chapter 42.56 RCW to the extent that such records 14
are exempt from disclosure by the federal government and are not 15
relied on as part of federal or state determinations relating to (a) 16
eligibility of students enrolled in the institution to receive 17
federal or state financial aid; (b) the level of surety or bond 18
required to be maintained by the institution; or (c) resolving any 19
investigation relating to the ability of the institution to offer 20
educational programs authorized by the council or workforce training 21
and education coordinating board.22
(3) For purposes of this section, "prospective student" includes 23
any resident who has submitted an application, all or in part, for 24
admission or acceptance to a program of an institution, and anyone 25
who the institution is soliciting to enroll. 26
Sec. 2. RCW 28B.85.070 and 2012 c 229 s 548 are each amended to 27
read as follows: 28
(1) The council may require any degree-granting institution to 29
have on file with the council an approved surety bond or other 30
security in lieu of a bond in an amount determined by the council.31
(2) In lieu of a surety bond, an institution may deposit with the 32
council a cash deposit or other negotiable security acceptable to the 33
council. The security deposited with the council in lieu of the 34
surety bond shall be returned to the institution one year after the 35
institution's authorization has expired or been revoked if legal 36
action has not been instituted against the institution or the 37
security deposit at the expiration of the year. The obligations and 38
remedies relating to surety bonds authorized by this section, 39
p. 3 HB 1279
including but not limited to the settlement of claims procedure in 1
subsection (5) of this section, shall apply to deposits filed with 2
the council, as applicable. 3
(3) Each bond shall: 4
(a) Be executed by the institution as principal and by a 5
corporate surety licensed to do business in the state;6
(b) Be payable to the state for the benefit and protection of any 7
student or enrollee of an institution, or, in the case of a minor, 8
his or her parents or guardian; 9
(c) Be conditioned on compliance with all provisions of this 10
chapter and the council's rules adopted under this chapter;11
(d) Require the surety to give written notice to the council at 12
least thirty-five days before cancellation of the bond; and13
(e) Remain in effect for one year following the effective date of 14
its cancellation or termination as to any obligation occurring on or 15
before the effective date of cancellation or termination.16
(4) Upon receiving notice of a bond cancellation, the council 17
shall notify the institution that the authorization will be suspended 18
on the effective date of the bond cancellation unless the institution 19
files with the council another approved surety bond or other 20
security. The council may suspend or revoke the authorization at an 21
earlier date if it has reason to believe that such action will 22
prevent students from losing their tuition or fees.23
(5) If a complaint is filed under RCW 28B.85.090(1) against an 24
institution, the council may file a claim against the surety and 25
settle claims against the surety by following the procedure in this 26
subsection. 27
(a) The council shall attempt to notify all potential claimants. 28
If the absence of records or other circumstances makes it impossible 29
or unreasonable for the council to ascertain the names and addresses 30
of all the claimants, the council after exerting due diligence and 31
making reasonable inquiry to secure that information from all 32
reasonable and available sources, may make a demand on a bond on the 33
basis of information in the council's possession. The council is not 34
liable or responsible for claims or the handling of claims that may 35
subsequently appear or be discovered. 36
(b) Thirty days after notification, if a claimant fails, refuses, 37
or neglects to file with the council a verified claim, the council 38
shall be relieved of further duty or action under this chapter on 39
behalf of the claimant. 40
p. 4 HB 1279
(c) After reviewing the claims, the council may make demands upon 1
the bond on behalf of those claimants whose claims have been filed. 2
The council may settle or compromise the claims with the surety and 3
may execute and deliver a release and discharge of the bond.4
(d) If the surety refuses to pay the demand, the council may 5
bring an action on the bond in behalf of the claimants. If an action 6
is commenced on the bond, the council may require a new bond to be 7
filed. 8
(e) Within ten days after a recovery on a bond or other posted 9
security has occurred, the institution shall file a new bond or 10
otherwise restore its security on file to the required amount.11
(6) The liability of the surety shall not exceed the amount of 12
the bond. 13
(7) The requirements for surety bonds established by the council 14
may not be reduced based on whether an institution is headquartered, 15
incorporated, or domiciled outside of Washington state. The council 16
shall ensure that any authorization agreement with other states 17
provides for at least the amount and security for surety applicable 18
to an institution that is headquartered, incorporated, domiciled, or 19
has a physical presence in Washington state.20
Sec. 3. RCW 28B.85.090 and 2018 c 203 s 3 are each amended to 21
read as follows: 22
(1) Complaints may be filed with the council under this chapter 23
by a person claiming loss of tuition or fees ((as a result of an )); 24
other loss or injury due to misrepresentation of educational 25
programs, accreditation, support for or statistics relating to job 26
placement, or measurements of student debts and earnings; and other27
unfair business practice s. The complaint shall set forth the alleged 28
violation and shall contain information required by the council. A 29
complaint may also be filed with the council by an authorized staff 30
member of the council or by the attorney general. 31
(2) The council shall investigate any complaint under this 32
section and may attempt to bring about a settlement. The council may 33
hold a hearing pursuant to the Administrative Procedure Act, chapter 34
34.05 RCW, in order to determine whether a violation has occurred. If 35
the council prevails, the degree-granting institution shall pay the 36
costs of the administrative hearing. 37
(3) If, after the hearing, the council finds that the institution 38
or its agent engaged in or is engaging in any unfair business 39
p. 5 HB 1279
practice, the council shall issue and cause to be served upon the 1
violator an order requiring the violator to cease and desist from the 2
act or practice and may impose the penalties under RCW 28B.85.095 and 3
28B.85.100. If the council finds that the complainant has suffered 4
loss as a result of the act or practice, the council may order full 5
or partial restitution for the loss. The complainant is not bound by 6
the council's determination of restitution and may pursue any other 7
legal remedy. 8
(4) All institutions of higher education that offer online 9
distance learning, and all private and not-for-profit institutions of 10
higher education with physical campuses that serve students in 11
Washington state, shall prominently disclose on all websites, 12
electronic enrollment and registration applications, promotional 13
materials distributed and made available to students in Washington 14
state, including through digital or social media, and students' 15
rights under state law as well as how students may contact the 16
council if they wish to file a complaint. The manner of disclosure 17
shall be determined by the council. The council may not delegate or 18
otherwise agree to defer investigation or resolution of complaints 19
filed by students who are residents of Washington state and enrolled 20
in institutions of higher education authorized by Washington state to 21
another state where the institution of higher education is 22
headquartered or incorporated.23
Sec. 4. RCW 28B.85.095 and 2018 c 203 s 4 are each amended to 24
read as follows: 25
(1)(a) The council may deny, revoke, or suspend the authorization 26
of any degree-granting institution authorized to operate under this 27
chapter that is found to be in violation of this chapter.28
(b) The council may not delegate to any other state its authority 29
to oversee and enforce compliance with this chapter or its authority 30
to respond to complaints by students in this state, regardless of 31
whether the institution is authorized by, or has its home in, another 32
state. ((Under RCW 28B.85.020(1)(c), participation in interstate 33
reciprocity agreements consistent with the purposes of this chapter 34
does not delegate authority for compliance with this chapter or 35
authority to respond to student complaints.))36
(2) It is a violation of this chapter for a degree-granting 37
institution authorized to operate under this chapter or an agent 38
employed by such a degree-granting institution to:39
p. 6 HB 1279
(a) Provide prospective students with any testimonial, 1
endorsement, or other information that a reasonable person would find 2
was likely to mislead or deceive prospective students or the public 3
regarding current practices of the school, current conditions for 4
employment opportunities, postgraduation employment by industry, or 5
probable earnings in the occupation for which the education was 6
designed, the likelihood of obtaining financial aid or low-interest 7
loans for tuition, or the ability of graduates to repay loans;8
(b) Use any official United States military logo in advertising 9
or promotional materials; or 10
(c) Violate the provision of RCW 28B.85.175(1)(b) regarding the 11
sale of, or inducing of students to obtain, specific consumer student 12
loan products. 13
NEW SECTION. Sec. 5. A new section is added to chapter 28B.85 14
RCW to read as follows: 15
The council may utilize its authority to waive state requirements 16
for institutions participating in interstate reciprocity agreements 17
for online or distance education if: 18
(1) Such waivers are consistent with federal regulations and 19
requirements for state authorization pursuant to 34 C.F.R. Sec. 600.2 20
and 600.9, including preserving Washington's authorization to 21
administer federal financial aid programs; and 22
(2) The council finds that the institutions' authorizations are 23
consistent with the council's policies for protection of Washington 24
resident student consumers. 25
--- END ---
p. 7 HB 1279