Postsecondary closures

AN ACT Relating to postsecondary education consumer protections 1
in the event of school or program closures; amending RCW 28B.85.230; 2
and 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.85.230 and 2018 c 203 s 11 are each amended to 5
read as follows: 6
(1)(a) For the purpose of providing relief to students impacted 7
by the ((voluntary or involuntary closure of schools regulated 8
under)) violations of provisions contained in this chapter, the 9
council shall establish, maintain, and administer a student 10
achievement council tuition recovery trust fund created in RCW 11
28B.85.240. All funds collected for the student achievement council 12
tuition recovery trust fund are payable to the state for the benefit 13
and protection of any student or enrollee of a private school 14
licensed under this chapter, for purposes including but not limited 15
to the settlement of claims related to ((school closures )) any 16
consumer protection requirement for schools regulated under this 17
chapter. 18
(b) No liability accrues to the state from claims made against 19
the student achievement council tuition recovery trust fund.20
Z-0423.1
HOUSE BILL 2474
State of Washington 69th Legislature 2026 Regular Session
By Representatives Pollet, Reeves, Ryu, Zahn, and Hill; by request of
Student Achievement Council
Read first time 01/14/26. Referred to Committee on Postsecondary
Education & Workforce.
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(2)(a) The council may impose a fee structure, set forth in rule, 1
on schools licensed under this chapter to fund the student 2
achievement council tuition recovery trust fund. 3
(b) The council must determine an amount that would be sufficient 4
in the student achievement council tuition recovery trust fund to 5
provide relief to students in the event of a school closure. The 6
council shall adopt schedules of times and amounts for effecting 7
payments of fees. To reach the amount determined, the council may 8
phase in the collection of fees, but must achieve the amount 9
determined to be sufficient no later than five years from June 7, 10
2018. 11
(3) Money from the student achievement council tuition recovery 12
trust fund may be used for: 13
(a) Providing refunds to students affected by ((school closures)) 14
a school's violation of any consumer protection requirement contained 15
in this chapter; 16
(b) Securing and administering student records; and17
(c) Any other response the council determines is necessary to 18
mitigate impacts of a potential or actual violation of a requirement 19
contained in this chapter, including a school closure.20
(4) In order for a school to be and remain licensed under this 21
chapter, each school ((owner)) shall, in addition to other 22
requirements under this chapter, make cash deposits on behalf of the 23
school into a student achievement council tuition recovery trust 24
fund. 25
(5) The student achievement council tuition recovery trust fund's 26
liability with respect to each participating school commences on the 27
date of the initial deposit into the student achievement council 28
tuition recovery trust fund made on its behalf and ceases one year 29
from the date the school is no longer licensed under this chapter.30
(6) The council shall adopt by rule a matrix for calculating the 31
deposits into the student achievement council tuition recovery trust 32
fund on behalf of each school. 33
(7) No vested right or interest in deposited funds is created or 34
implied for the depositor at any time during the operation of the 35
student achievement council tuition recovery trust fund or at any 36
such future time that the student achievement council tuition 37
recovery trust fund may be dissolved. All funds deposited are payable 38
to the state for the purposes described under this section. The 39
council shall maintain the student achievement council tuition 40
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recovery trust fund, serve appropriate notices to affected ((owners)) 1
schools when scheduled deposits are due, collect deposits, and make 2
disbursements to settle claims against the student achievement 3
council tuition recovery trust fund. 4
(8) The council shall adopt rules to address notifying potential 5
claimants, settling claims, disbursing funds, and any other processes 6
necessary to implement the purpose of this section.7
NEW SECTION. Sec. 2. A new section is added to chapter 28B.85 8
RCW to read as follows: 9
(1) An institution that discontinues operations or that 10
discontinues the educational program of any currently enrolled 11
student must: 12
(a) Provide a teach-out opportunity that allows the student to 13
complete the program under the same modality and conditions as 14
existed prior to the decision to discontinue the program; or15
(b) Enter into a transfer agreement acceptable to the council 16
that allows the student to complete the program under the same 17
modality and conditions as existed prior to the decision to 18
discontinue the program. The transfer agreement must not result in 19
increased costs to students and must be with an institution that:20
(i) Is accredited by an accrediting association recognized by the 21
council and is in good standing with its accreditor;22
(ii) Is not currently under financial aid restrictions by the 23
United States department of education; 24
(iii) Provides the student a reasonable opportunity to complete 25
the program with substantially the same number of credit hours as was 26
required by the institution operating the closing program;27
(iv) Is within a reasonable distance of the closing institution, 28
unless instruction occurs entirely via distance education; and29
(v) Within the previous five years, has not had any judgments 30
related to a consumer protection law entered against it in favor of a 31
law enforcement agency or entered into any settlement agreements 32
related to a consumer protection law with a law enforcement agency.33
(2) An institution that violates this section shall be required 34
to provide a refund of tuition and fees paid by a student who is 35
enrolled at the time the student's program is discontinued.36
(3) Institutional debt owed by a student who is enrolled in a 37
program that is discontinued in violation of this section is void and 38
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may not be recovered, collected, or enforced by the institution or 1
any other person or entity. 2
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