Strike everything after the enacting clause and insert the following:

NEW SECTION.  Sec. 1.  "A new section is added to chapter 50.44 RCW to read as follows:

(1) An institution of higher education, as defined in RCW 28B.10.016, may not contract with a private entity to: Respond on behalf of the institution of higher education to written requests by the department for information relating to an individual's claim or claims; file appeals and petitions for review on behalf of the institution of higher education regarding an individual's right to benefits; or represent the institution of higher education before the appeal tribunal and the commissioner in appeals involving an individual's right to benefits.

(2) Nothing in this section prohibits an institution of higher education from contracting with a private entity, including a third-party payer or professional employer organization, for any services other than the services prohibited by subsection (1) of this section.

Sec. 2.  RCW 50.44.037 and 1977 ex.s. c 292 s 16 are each amended to read as follows:

For the purposes of this chapter, except for section 1 of this act, the term "institution of higher education" means an educational institution in this state which:

(1) Admits as regular students only individuals having a certificate of graduation from a high school, or the recognized equivalent of such a certificate;

(2) Is legally authorized within this state to provide a program of education beyond high school;

(3) Provides an educational program for which it awards a bachelor's or higher degree, or provides a program which is acceptable for full credit toward such a degree, or offers a program of training to prepare students for gainful employment in a recognized occupation; and

(4) Is a public or other nonprofit institution.

Notwithstanding any of the foregoing subsections, all colleges and universities in this state are "institutions of higher education"."

Correct the title.

EFFECT: Specifies that public institutions of higher education may not contract with private entities to: (1) Respond on behalf of the institution to written requests by the Department of Employment Security (ESD) for information relating to an individual's claim; (2) file appeals and petitions for review on behalf of the institution regarding an individual's right to benefits; or (3) represent the institution on appeals involving an individual's right to benefits.

Specifies that the bill does not preclude an institution from contracting with private entities for other services.

Adds the provision in the unemployment insurance statutes.