ByHouse College & Workforce Development (originally sponsored by Representatives Slatter, Leavitt, Ortiz-Self, Valdez, Bergquist, Davis, J. Johnson, Pollet, Goodman, Lekanoff, Ormsby, and Riccelli; by request of Lieutenant Governor)

AN ACT Relating to prohibiting the practice of transcript withholding and limiting the practice of registration holds at institutions of higher education as debt collection practices; and amending RCW 28B.10.293.

Sec. 1. RCW 28B.10.293 and 1977 ex.s. c 18 s 1 are each amended to read as follows:

((Each state public or private))(1) Institutions of higher education may, in the control and collection of any debt or claim due owing to it, impose reasonable financing and late charges, as well as reasonable costs and expenses incurred in the collection of such debts, if provided for in the note or agreement signed by the debtor.

(2) Institutions of higher education may only withhold a student's official transcript for the purpose of collecting debts relating to the nonpayment of tuition fees or fees charged to provide the official transcript.

(3) An institution may not withhold a student's official transcript, regardless of debt, if the official transcript is requested by a student or entity for any of the following purposes:

(4) An institution of higher education must release a student's official transcript if the institution assigns the student's unpaid debt to a collection agency, regardless of the type of debt.

(5) Institutions of higher education may not withhold registration privileges as a debt collection tool, excluding the case of any debts related to the following:

(b) Unpaid room and board fees, meaning any money, obligation, claim, or sum, due or owing, or alleged to be due or owing, from a student for the provision of contractually agreed to on-campus housing or meal services plans; or

(c) Any financial aid funds owed to the institution under Title IV, or to the state, due to miscalculation, withdrawal, misinformation, or other reason, not including standard repayment of student loans.

(a) "Debt" means any money, obligation, claim, or sum, due or owing, or alleged to be due or owing, from a student.

(b) "Institutions of higher education" means the same as in RCW 28B.92.030.

(c) "Tuition fees" means tuition fees as defined in RCW 28B.15.020, services and activities fees as defined in RCW 28B.15.041, technology fees as defined in RCW 28B.15.051, and fees charged for nonstate funded, fee-based, self-supporting degree, certificate, or continuing education courses.