SB 6029 — Establishing a student loan bill of rights.

S-4773.1SECONDZ-0683.2SENATE SUBSTITUTE SENATE BILL 6029State of Washington65th Legislature2018 Regular SessionBy Senate Ways & Means (originally sponsored by Senators Liias, Ranker, Fain, Frockt, Billig, Darneille, Palumbo, Rolfes, Keiser, Cleveland, Pedersen, Hunt, Wellman, Conway, Chase, Saldaña, Kuderer, Hasegawa, and Mullet;

by request of Attorney General)READGeneralPrefiled FIRST12/15/17. TIME 02/06/18.AN ACT Relating to establishing a student loan bill of rights;

Read first time 01/08/18.

Referred to Committee on Higher Education & Workforce Development.AN ACT Relating to establishing a student loan bill of rights;

and creating new sections.BEsections; IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:NEW SECTION.  Sec. 1.  A new section is added to chapter 28B.77 RCW to read as follows:(1) The council shall designate a student loan advocate within the office to provide timely assistance to any student education loan borrower with any student education loan.

and providing a effective date.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:NEW SECTION.  Sec. 1.  A new section is added to chapter 28B.77 RCW to read as follows:(1) The council shall designate a student loan advocate within the office to provide timely assistance to any student education loan borrower with any student education loan.

and (d) other data on outstanding student education loan issues faced by borrowers.(8)borrowers.Sec. 2.  RCW Implementation of this section by the council is subject to the availability of amounts appropriated and the balance of the student loan advocate account.Sec. 2.  RCW 28B.10.285 and 2017 c 154 s 2 are each amended to read as follows:(1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.(a) "Educational institution" includes any entity that is an institution of higher education as defined in RCW 28B.10.016, a degree-granting institution as defined in RCW 28B.85.010, a private vocational school as defined in RCW 28C.10.020, or school as defined in RCW 18.16.020.(b) "Student education loan" means any loan solely for personal use to finance postsecondary education and costs of attendance at an educational institution.(2) ((Subject to the availability of amounts appropriated for this specific purpose,)) An educational institution must provide to an enrolled student who has applied for student financial aid a notification including the following information about the student education loans the educational institution has certified:(a) An estimate, based on information available at the time the notification is provided, of the:(i) Total amount of student education loans taken out by the student;(ii) Potential total payoff amount of the student education loans incurred or a range of the total payoff amount, including principal and interest;(iii) The monthly repayment amount that the student may incur for the amount of student education loans the student has taken out, based on the federal loan repayment plan borrowers are automatically enrolled in if they do not select an alternative repayment plan;

and(f) A transaction fee or set of transaction fees to cover the administrative costs associated with processing changes in control, changes of address, and other administrative changes as specified in rule by the director.(2) The director shall ensure that when an examination or investigation, or any part of the examination or investigation, of any licensee applicant or person subject to licensing under this chapter requires travel and services outside this state by the director or designee, the licensee applicant or person subject to licensing under this chapter that is the subject of the examination or investigation shall pay the actual travel expenses incurred by the director or designee conducting the examination or investigation.(3) All moneys, fees, and penalties collected for the department's program for student education loan servicing shall be deposited into the financial services regulation fund, except as provided in RCW 43.320.110.(4)43.320.110.Sec. 4.  RCW The43.320.110 director'sand obligations2017 or3rd dutiessp.s. under chapter .

., Laws of 2018 (this act) are subject to section 21 of this act.Sec. 4.  RCW 43.320.110 and 2017 3rd sp.s.

During the ((2015-2017 and)) 2017-2019 fiscal ((biennia)) biennium, moneys from the financial services regulation fund may be appropriated for the family prosperity account program at the department of commerce and for the operations of the department of revenue.(3)(a) Beginning in the 2020-2021 fiscal year, the state treasurer shall annually transfer from the fund to the student loan advocate account created in section 5 of this act, the greater of one hundred seventy-five thousand dollars or twenty percent of the annual assessment derived from student education loan servicing.(b) The department must provide information to the state treasurer regarding the amount of the annual assessment derived from student education loan servicing.(4)servicing.NEW TheSECTION.  Sec. 5.  A director'snew obligationssection oris dutiesadded underto chapter .28B.77 RCW to read as follows:The student loan advocate account is created in the custody of the state treasurer.

.,Expenditures Lawsfrom ofthe 2018account (thismay act)be areused subjectonly tofor sectionthe 21purpose of thiscovering act.NEWthe SECTION.  Sec. 5.  Acosts newof sectionadministering isthe added to chapter 28B.77 RCW to read as follows:The student loan advocate account is created in thesection custody1 of thethis stateact. treasurer.

Expenditures from the account may be used only for the purpose of covering the costs of administering the student loan advocate program created in section 1 of this act.

The borrower may request annually one statement free of charge.(3) When acquiring servicing rights from another servicer, a receivingtransferring servicer must:(a) Notify the student education loan borrowers no more than sixty days and no less than forty-five days before the effective date of the transfer of the students' loans to provide them with:(i) The effective date of the transfer of servicing, and the date at which the receiving servicer will begin to accept payments relating to the loan, if different;(ii) The name, address, and toll-free telephone number for both the transferring and receiving servicers' designated points of contact at which the borrower can obtain answers to inquiries;(iii) A statement that the transfer of servicing does not affect any term or condition of the student education loan other than the entity servicing the loan;(iv) Information about how to obtain a payment history from both the transferring or receiving servicer, including a count of payments that qualify toward any forgiveness options, as applicable;(v) A notification indicating whether an alternative repayment plan or loan consolidation application is pending;

The director may, at his or her discretion, waive applicability of the provisions of this section when the director determines it necessary to facilitate commerce and protect consumers.(8)consumers.NEW TheSECTION.  Sec. 7.  A director'snew obligationssection oris dutiesadded underto chapter .31.04 RCW to read as follows:A student education loan servicer licensee must maintain liquidity, operating reserves, and a tangible net worth in accordance with generally accepted accounting principles as determined by the director.

.,The Lawsdirector ofmay 2018adopt (thisrules act) are subject to sectionimplement 21 of this act.NEWsection.NEW SECTION.  Sec. 7.  ASECTION.  Sec. 8.  A new section is added to chapter 31.04 RCW to read as follows:Afollows:(1) In addition to complying with federal and state law, including all requirements under chapter 18.28 RCW and this chapter, any person providing third-party student education loan servicermodification licenseeservices mustmust:(a) maintainNot liquidity,charge operatingor reserves,receive any money or other valuable consideration prior to full and acomplete tangibleperformance netof worththe services the person has agreed to perform for the borrower;(b) Not charge total fees in accordanceexcess withof generallyusual acceptedand accountingcustomary principlescharges, asor determinedtotal byfees that are not reasonable in light of the director.service provided;

The director may adopt rules to implement this section.

The director's obligations or duties under this section are subject to section 21 of this act.NEW SECTION.  Sec. 8.  A new section is added to chapter 31.04 RCW to read as follows:(1) In addition to complying with federal and state law, including all requirements under chapter 18.28 RCW and this chapter, any person providing third-party student education loan modification services must:(a) Not charge or receive any money or other valuable consideration prior to full and complete performance of the services the person has agreed to perform for the borrower;(b) Not charge total fees in excess of usual and customary charges, or total fees that are not reasonable in light of the service provided;

or (d) performing other administrative services with respect to a student education loan including collection activities.activities.(36) "Third-party residential mortgage loan modification services" means residential mortgage loan modification services offered or performed by any person other than the owner or servicer of the loan.(((32))) (37) "Third-party service provider" means any person other than the licensee or a mortgage broker who provides goods or services to the licensee or borrower in connection with the preparation of the borrower's loan and includes, but is not limited to, credit reporting agencies, real estate brokers or salespersons, title insurance companies and agents, appraisers, structural and pest inspectors, or escrow companies.(((33))) (38) "Third-party student education loan modification services" means for compensation or other consideration working with the student education loan borrower or his or her representative to collect data or prepare or submit documents, or collecting data and preparing or submitting documents, to modify, refinance, or consolidate the loan, or change repayment plans.(39) "Unique identifier" means a number or other identifier assigned by protocols established by the nationwide mortgage licensing system.NEW SECTION.  Sec. 10.  A new section is added to chapter 31.04 RCW to read as follows:(1) The following are subject to the student education loan servicer requirements in this chapter, but are exempt from having to obtain and maintain a license in accordance with this chapter:(a) Trade, technical, vocational, or apprentice programs that teach skills related to a specific job, and postsecondary schools that service their own student education loans;(b) Persons servicing five or fewer student education loans;(c) Guarantors of federal student loans that do not also service federal student loans;(d) The United States or any department or agency thereof, to the extent it is servicing student education loans that it originated;

"Studentand(e) educationAny loanstate, servicing"county, doescity, notor includeany third-partydepartment or agency thereof, but only to the extent it is servicing student education loanloans modificationthat services.(36)it "Third-partyoriginated.(2) residentialThe mortgagedepartment loanmay modificationrefer services"to meansthe residentialattorney mortgagegeneral's loanconsumer modificationprotection servicesdivision offeredcomplaints regarding entities subject to this section.Sec. 11.  RCW 31.04.027 and 2015 c 229 s 21 are each amended to read as follows:(1) It is a violation of this chapter for a licensee, its officers, directors, employees, or performedindependent bycontractors, or any other person othersubject thanto thethis ownerchapter to:(((1))) (a) Directly or servicerindirectly ofemploy theany loan.(((32)))scheme, (37)device, "Third-partyor serviceartifice provider"to meansdefraud or mislead any personborrower, otherto thandefraud theor licenseemislead any lender, or ato mortgagedefraud brokeror whomislead providesany goodsperson;(((2))) (b) Directly or servicesindirectly toengage thein licenseeany unfair or deceptive practice toward any person;(((3))) (c) Directly or indirectly obtain property by fraud or misrepresentation;(((4))) (d) Solicit or enter into a contract with a borrower that provides in connectionsubstance withthat the preparationconsumer ofloan company may earn a fee or commission through the borrower'sconsumer loan andcompany's includes,best butefforts to obtain a loan even though no loan is notactually limitedobtained to,for creditthe reportingborrower;(((5))) agencies,(e) realSolicit, estateadvertise, brokersor enter into a contract for specific interest rates, points, or salespersons,other titlefinancing insuranceterms companiesunless andthe agents,terms appraisers,are structuralactually andavailable pestat inspectors,the time of soliciting, advertising, or escrowcontracting;(((6))) companies.(((33)))(f) (38)Fail "Third-partyto studentmake educationdisclosures to loan modificationapplicants services"as meansrequired forby compensationRCW or31.04.102 and any other considerationapplicable bystate or onfederal behalflaw;(((7))) of(g) theMake, borrowerin workingany withmanner, theany studentfalse educationor loandeceptive borrowerstatement or hisrepresentation orwith herregard representative to collectthe datarates, points, or prepareother financing terms or submitconditions documents,for a residential mortgage loan or collectingengage datain bait and preparingswitch oradvertising;(((8))) submitting(h) documents,Negligently tomake modify,any refinance,false statement or consolidateknowingly theand loan,willfully ormake changeany repaymentomission plans.(39)of "Uniquematerial identifier"fact meansin connection with any reports filed with the department by a numberlicensee or otherin identifierconnection assignedwith byany protocolsinvestigation establishedconducted by the nationwidedepartment;(((9))) mortgage(i) licensingMake system.NEWany SECTION.  Sec. 10.  Apayment, newdirectly sectionor isindirectly, added to chapterany 31.04appraiser RCWof toa readproperty, asfor follows:(1)the Thepurposes followingof areinfluencing subjectthe toindependent judgment of the studentappraiser educationwith loanrespect servicerto requirementsthe invalue thisof chapter,the butproperty;(((10))) are(j) exemptAccept from havingany toborrower obtainat andor maintainnear the time a licenseloan is made and in accordanceadvance withof thisany chapter:(a)default Trade,an technical,execution vocational,of, or apprenticeinduce programsany thatborrower teachto skillsexecute, relatedany toinstrument of conveyance, not including a specificmortgage job,or anddeed postsecondaryof schoolstrust, thatto servicethe theirlender ownof studentany educationownership loans;(b)interest Personsin servicingthe fiveborrower's orprimary fewerdwelling studentthat educationis loans;(c)the Guarantorssecurity offor federalthe studentborrower's loansloan;(((11))) that(k) doObtain notat alsothe servicetime federalof studentclosing loans;(d)a Therelease Unitedof Statesfuture damages for usury or anyother departmentdamages or agencypenalties thereof,provided toby law or a waiver of the extentprovisions itof isthis servicingchapter;(((12))) student(l) educationAdvertise loansany rate of interest without conspicuously disclosing the annual percentage rate implied by that itrate originated;of interest;(((13))) (m) Violate any applicable state or federal law relating to the activities governed by this chapter;

and(e) Any state, county, city, or any department or agency thereof, but only to the extent it is servicing student education loans that it originated.(2) Persons providing third-party student education loan modification services are exempt from having to obtain and maintain a license in accordance with this chapter.(3) The department may refer to the attorney general's consumer protection division complaints regarding entities subject to this section.Sec. 11.  RCW 31.04.027 and 2015 c 229 s 21 are each amended to read as follows:(1) It is a violation of this chapter for a licensee, its officers, directors, employees, or independent contractors, or any other person subject to this chapter to:(((1))) (a) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead any borrower, to defraud or mislead any lender, or to defraud or mislead any person;(((2))) (b) Directly or indirectly engage in any unfair or deceptive practice toward any person;(((3))) (c) Directly or indirectly obtain property by fraud or misrepresentation;(((4))) (d) Solicit or enter into a contract with a borrower that provides in substance that the consumer loan company may earn a fee or commission through the consumer loan company's best efforts to obtain a loan even though no loan is actually obtained for the borrower;(((5))) (e) Solicit, advertise, or enter into a contract for specific interest rates, points, or other financing terms unless the terms are actually available at the time of soliciting, advertising, or contracting;(((6))) (f) Fail to make disclosures to loan applicants as required by RCW 31.04.102 and any other applicable state or federal law;(((7))) (g) Make, in any manner, any false or deceptive statement or representation with regard to the rates, points, or other financing terms or conditions for a residential mortgage loan or engage in bait and switch advertising;(((8))) (h) Negligently make any false statement or knowingly and willfully make any omission of material fact in connection with any reports filed with the department by a licensee or in connection with any investigation conducted by the department;(((9))) (i) Make any payment, directly or indirectly, to any appraiser of a property, for the purposes of influencing the independent judgment of the appraiser with respect to the value of the property;(((10))) (j) Accept from any borrower at or near the time a loan is made and in advance of any default an execution of, or induce any borrower to execute, any instrument of conveyance, not including a mortgage or deed of trust, to the lender of any ownership interest in the borrower's primary dwelling that is the security for the borrower's loan;(((11))) (k) Obtain at the time of closing a release of future damages for usury or other damages or penalties provided by law or a waiver of the provisions of this chapter;(((12))) (l) Advertise any rate of interest without conspicuously disclosing the annual percentage rate implied by that rate of interest;(((13))) (m) Violate any applicable state or federal law relating to the activities governed by this chapter;

If necessary, a licensee may request additional time up to a maximum of forty-five calendar days, provided that such request is accompanied by an explanation why such additional time is reasonable and necessary.(3)necessary.Sec. 12.  RCW The31.04.035 director'sand obligations2013 c 29 s 4 are each amended to read as follows:(1) No person may make secured or dutiesunsecured loans of money or things in action, or extend credit, or service or modify the terms or conditions of residential mortgage loans, or service or modify student education loans, without first obtaining and maintaining a license in accordance with this chapter, except those exempt under chapterRCW .31.04.025 or not subject to licensure under section 10 of this act.(2) If a transaction violates subsection (1) of this section, any:(a) Nonthird-party fees charged in connection with the origination of the residential mortgage loan must be refunded to the borrower, excluding interest charges;

.,and(b) LawsFees ofor 2018interest (thischarged act)in arethe subjectmaking toof sectiona 21nonresidential ofloan thismust act.Sec. 12.  RCWbe 31.04.035refunded to the borrower.Sec. 13.  RCW 31.04.093 and 20132015 c 29229 s 424 are each amended to read as follows:(1) NoThe persondirector maymust makeenforce securedall orlaws unsecuredand loansrules ofrelating moneyto or things in action, or extend credit, or service or modify the termslicensing orand conditionsregulation of residentiallicensees mortgage loans, or service or modify student education loans, without first obtaining and maintainingpersons a license in accordance with this chapter, except those exempt under RCW 31.04.025 or not subject to licensure under section 10 of this act.(2)chapter. If a transaction violates subsection (1) of this section, any:(a) Nonthird-party fees charged in connection with the origination of the residential mortgage loan must be refunded to the borrower, excluding interest charges;

and(b) Fees or interest charged in the making of a nonresidential loan must be refunded to the borrower.(3) The director's obligations or duties under chapter .

., Laws of 2018 (this act) are subject to section 21 of this act.Sec. 13.  RCW 31.04.093 and 2015 c 229 s 24 are each amended to read as follows:(1) The director must enforce all laws and rules relating to the licensing and regulation of licensees and persons subject to this chapter.

The licensee must receive notice prior to expiration and have the opportunity to stop the expiration as set forth in rule.(13)rule.Sec. 14.  RCW The31.04.102 director'sand obligations2015 orc duties229 unders chapter27 .are each amended to read as follows:(1) For all loans made by a licensee that are not secured by a lien on real property, the licensee must make disclosures in compliance with the truth in lending act, 15 U.S.C.

., Laws of 2018 (this act) are subject to section 21 of this act.Sec. 14.  RCW 31.04.102 and 2015 c 229 s 27 are each amended to read as follows:(1) For all loans made by a licensee that are not secured by a lien on real property, the licensee must make disclosures in compliance with the truth in lending act, 15 U.S.C.

If the director determines that the federal government has required a disclosure that substantially meets the objectives of this subsection, then the director may make a determination by rule that compliance with this federal disclosure requirement constitutes compliance with this subsection.(4) In addition for all consumer loans made by the licensee that are secured by a lien on real property, the licensee must comply with RCW 19.144.020.(5) In addition for all consumer loans made by a licensee that are a refinance of a federal student education loan, the licensee must provide to the borrower a clear and conspicuous disclosure that some repayment and forgiveness options available under federal student education loan programs, including without limitation income-driven repayment plans, economic hardship deferments, or public service loan forgiveness, will no longer be available to the borrower if he or she chooses to refinance federal student education loans with one or more consumer loans.(6)loans.Sec. 15.  RCW The31.04.145 director'sand obligations2015 c 229 s 29 are each amended to read as follows:(1) For the purpose of discovering violations of this chapter or dutiessecuring information lawfully required under chapterthis .chapter, the director may at any time, either personally or by designees, investigate or examine the loans and business and, wherever located, the books, accounts, records, papers, documents, files, and other information used in the business of every licensee and of every person ((who is engaged in the business making or assisting in the making of loans at interest rates authorized by)) subject to this chapter, whether the person acts or claims to act as principal or agent, or under or without the authority of this chapter.

., Laws of 2018 (this act) are subject to section 21 of this act.Sec. 15.  RCW 31.04.145 and 2015 c 229 s 29 are each amended to read as follows:(1) For the purpose of discovering violations of this chapter or securing information lawfully required under this chapter, the director may at any time, either personally or by designees, investigate or examine the loans and business and, wherever located, the books, accounts, records, papers, documents, files, and other information used in the business of every licensee and of every person ((who is engaged in the business making or assisting in the making of loans at interest rates authorized by)) subject to this chapter, whether the person acts or claims to act as principal or agent, or under or without the authority of this chapter.

or(f) Assess the licensee, individual, or person subject to chapter 120, Laws of 2009 the cost of the services in (a) of this subsection.(5)subsection.Sec. 16.  RCW 31.04.165 and 2010 c 35 s 7 are each amended to read as follows:(1) The director'sdirector obligationshas orthe dutiespower, underand broad administrative discretion, to administer and interpret this chapter .to facilitate the delivery of financial services to the citizens of this state by ((consumer loan companies, residential mortgage loan servicers, and mortgage loan originators)) persons subject to this chapter.

., Laws of 2018 (this act) are subject to section 21 of this act.Sec. 16.  RCW 31.04.165 and 2010 c 35 s 7 are each amended to read as follows:(1) The director has the power, and broad administrative discretion, to administer and interpret this chapter to facilitate the delivery of financial services to the citizens of this state by ((consumer loan companies, residential mortgage loan servicers, and mortgage loan originators)) persons subject to this chapter.

The director shall not be required to post a bond in any court proceedings.(5)proceedings.Sec. 17.  RCW The31.04.277 director'sand obligations2015 c 229 s 34 are each amended to read as follows:Each consumer loan company licensee ((who makes, services, or dutiesbrokers undera chapterloan .secured by real property)) must submit call reports through the nationwide mortgage licensing system ((and registry)) in a form and containing the information prescribed by the director or as deemed necessary by the nationwide mortgage licensing system ((and registry)).Sec. 18.  RCW 31.04.310 and 2015 c 229 s 26 are each amended to read as follows:Upon application by the director and upon a showing that the interests of borrowers or creditors so requires, the superior court may appoint a receiver to take over, operate, or liquidate any residential mortgage or student education loan servicer.NEW SECTION.  Sec. 19.  (1) The Washington state institute for public policy shall conduct a study on the impact and cost-effectiveness of establishing a student loan authority to refinance existing federal and private undergraduate and graduate student loans from the proceeds of tax-exempt bonds.

.,In Lawsconducting ofthe 2018study, (thisthe act)institute areshall:(a) Review guidance on the subject toissued sectionby 21the United States treasury;(b) Review the structure of thisstate-operated act.Sec. 17.  RCWloan 31.04.277refinance andprograms 2015in cother 229states;(c) sAnalyze 34the arecategories eachof amendedborrowers towho readhave asreceived follows:Eachthe consumerbenefit of state-operated loan companyrefinance licenseeprograms ((whoin makes,other services,states, including by income quintile, as available;(d) Evaluate the equity impacts and effectiveness of borrower requirements, such as a credit score or brokersa loan cosigner;(e) Compare any potential savings and costs to undergraduate and graduate borrowers of a loan securedrefinanced by realthe property))state mustas submitcompared callto reportssimilarly throughsituated theborrowers nationwideof mortgagefederal licensingdirect systemloans ((andand registry))private inloans, aissued formone, five, and containingten years ago;(f) Consider the informationvalue prescribedof byrepayment theand directorforgiveness oroptions asthat deemedmay necessarybe bylost theto nationwidea mortgageborrower licensingof systema ((andfederal registry)).Thestudent director'seducation obligationsloan who chooses to refinance, including income-driven repayment options, economic hardship deferments, or dutiespublic underservice chapterloan .forgiveness;

.,and(g) LawsPrepare ofcost 2018estimates (thisfor act)offering similar repayment and forgiveness options through a state-operated student loan authority as those that are subjectavailable to sectionborrowers 21of federal student education loans to borrowers.(2) The Washington state institute for public policy shall submit a report on its findings to the higher education committees of thisthe act.Sec. 18.  RCWlegislature 31.04.310by andDecember 201531, c2018.NEW 229SECTION.  Sec. 20.  A snew 26section areis eachadded amendedto chapter 31.04 RCW to read as follows:Uponfollows:The applicationrequirements byof thethis directoract anddo uponnot aapply showingto thatany theperson interestsdoing business under, and as permitted by, any law of borrowersthis state or creditorsof sothe requires,United theStates superiorrelating courtto maybanks, appointsavings abanks, receivertrust tocompanies, takesavings over,and operate,loan or liquidatebuilding anyand residentialloan mortgageassociations, or studentcredit educationunions.NEW loanSECTION.  Sec. 21.  A servicer.Thenew director'ssection obligationsis oradded dutiesto underchapter 31.04 RCW to read as follows:The legislature finds that the practices covered by sections 6, 8, and 11 of this act are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter .19.86 RCW.

.,A Lawsviolation of 2018this (thischapter act)is arenot subjectreasonable in relation to sectionthe 21development and preservation of thisbusiness act.NEWand SECTION.  Sec. 19.  (1)is Thean Washingtonunfair stateor institutedeceptive act in trade or commerce and an unfair method of competition for publicthe policypurpose shallof conductapplying athe studyconsumer onprotection studentact, loanchapter authorities19.86 thatRCW.NEW refinanceSECTION.  Sec. 22.  If existingany federalprovision andof privatethis undergraduateact or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.NEW SECTION.  Sec. 23.  This act may be known and graduatecited as the Washington student loanseducation fromloan thebill proceedsof rights.NEW SECTION.  Sec. 24.  Sections 1, 3, 7, 10, and 12 through 18 of tax-exemptthis bonds.act take effect January 1, 2019.--- END ---

In conducting the study, the institute shall:(a) Review guidance on the subject issued by the United States treasury;(b) Review the structure and characteristics of state-operated loan refinance programs in other states, including borrower requirements;(c) Review available literature on the impacts of borrower requirements of similar programs;(d) Estimate potential savings and costs to undergraduate and graduate borrowers from differences in interest rates of loans refinanced by the state as compared to similarly situated borrowers of federal direct loans and private loans, issued one, five, and ten years ago;

and(e) Consider the value of repayment and forgiveness options that may be lost to a borrower of a federal student education loan who chooses to refinance, including income-driven repayment options, economic hardship deferments, or public service loan forgiveness.(2) The Washington state institute for public policy shall submit a report on its findings to the higher education committees of the legislature by December 31, 2018.NEW SECTION.  Sec. 20.  A new section is added to chapter 31.04 RCW to read as follows:The requirements of this act do not apply to any person doing business under, and as permitted by, any law of this state or of the United States relating to banks, savings banks, trust companies, savings and loan or building and loan associations, or credit unions.NEW SECTION.  Sec. 21.  The department of financial institutions and the director or director's designees do not have any enforcement, examination, or reporting obligations or duties under this act until January 1, 2019, or until the final adoption of rules pursuant to this act, whichever is sooner.NEW SECTION.  Sec. 22.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.NEW SECTION.  Sec. 23.  This act may be known and cited as the Washington student education loan bill of rights.--- END ---