Assembly Bill No. 1313
California Governor Gavin Newsom signed into law a bill,
AB 1313, that prohibits colleges and universities from withholding
transcripts from students who owe a debt. The legislation applies to both public and private postsecondary institutions and prohibits schools from the following:
- refusing to provide a transcript for a current or former student on the grounds that the student owes a debt,
- conditioning the provision of a transcript on the payment of a debt, charging a higher fee for obtaining a transcript or providing less favorable treatment of a transcript request because a student owes a debt,
- or using a transcript issuance as a tool for debt collection.
The measure, as written, has raised numerous questions from institutions in the state of California and in other states that serve California students. AACRAO staff reached out to the bill's sponsors as well as representatives from the California Department
of Justice (DOJ) to seek clarification regarding these issues and concerns. The following responses do not serve as legal advice from the California DOJ, but do provide some guidance on the recently-enacted law.
The legislation states that it covers public and private institutions, but does not explicitly say private for-profit institutions. By stating private, the legislation is also covering this class of institutions as well, correct?
Yes, private for-profit institutions are included in the bill.
The legislation is specific only to California institutions, correct? Thus an institution cannot withhold a transcript from one California institution to another California institution where a student transfers, correct?
Correct, a California institution cannot withhold a student's transcript regardless of where the student transfers.
Yes, the California school cannot withhold the student's transcript.
Generally speaking, entities doing business with persons located in California are subject to California law, regardless of where the entity is located.
Also, if the institution is based in another state but offers services to individuals in California, does the institution need to have a 'location' (i.e. traditional brick and mortar facilities) in California to be subject to this law? What about a small rented office space?
Generally speaking, entities doing business with persons located in California are subject to California law, regardless of where the entity is located.
Similarly, an individual lives in California but is enrolled online in another state. This law would not cover this individual, correct?
Generally speaking, entities doing business with persons located in California are subject to California law, regardless of where the entity is located.
This language was already in existing law and we were not changing that part of the statute. If a student owes a fund to the school, the school still has the ability to withhold the student's ability to register for classes.