The bill amends RCW 28B.85.230 to enhance consumer protections for students in the event of school or program closures. It establishes a student achievement council tuition recovery trust fund to provide relief to students affected by violations of consumer protection requirements by schools regulated under this chapter. The bill specifies that funds from this trust can be used for refunds to students, securing student records, and other necessary responses to mitigate impacts from violations, including school closures. Additionally, it mandates that schools must make cash deposits into the trust fund to maintain their licensing.

A new section is added to outline the responsibilities of institutions that discontinue operations or educational programs. Institutions must either provide a teach-out opportunity or enter into a transfer agreement that allows students to complete their programs under the same conditions as before the discontinuation. If an institution fails to comply, it must refund tuition and fees to affected students, and any institutional debt owed by these students becomes void. The bill also exempts certain long-established institutions and those operating within federally recognized tribal reservations from these requirements.

Statutes affected:
Original bill: 28B.85.230
Substitute bill: 28B.85.230