If any person, including faculty, staff, student, or former student, be indebted to the institution for an outstanding overdue debt, the institution shall not provide any further services of any kind to such individual, including but not limited to transmitting files, records, transcripts, or other services which have been requested by any such person. Further, if the person is an employee of the institution, the institution shall have the right to offset such outstanding debts against wages owed to the employee.

Upon receipt of such a request for services where there is an outstanding debt due the institution from that person, the institution shall notify the person by registered mail addressed to his last known mailing address, that the services will not be provided since there is an outstanding debt due the institution and, further, that until that debt is paid in full or arrangements are made to pay the debt over time, no such services as are requested will be provided the individual. If the outstanding debt is due the institution from an employee, the institution shall notify the employee by registered mail addressed to his last known address of the debt owed to the institution, the basis of the debt, and the intent to offset it against the wages or other payments due the employee.

The letter of notification contained in WAC 132K-300-020 shall also notify the individual that he has a right to a hearing before the dean of administrative services or a person designated by the president of the institution for the purpose of determining whether the individual is in fact indebted to the institution as alleged in the notice of intent to withhold services and/or offset wages for outstanding debts. The letter shall also indicate that the request for the hearing must be made within twenty days from the date of receipt of said letter.

Upon receipt of a timely request for a hearing, the dean of administrative services or the person designated by the president shall have the records and files of the institution available for review and, at that time, shall hold an informal hearing concerning whether the individual in fact owes any outstanding debts to the institution. After the informal hearing, a decision shall be rendered by the president's designee indicating whether in fact the institution is correct in withholding services and/or wages for outstanding debt, and if the outstanding debt is in fact owed by the individual involved, no services shall be provided and, if an employee, the debt will be offset against wages owed to the individual. Notification of this shall be sent to the individual within five days after the hearing. Said decision shall constitute an informal proceeding established by the institution pursuant to the Higher Education Administrative Procedure Act as defined in RCW 28B.19.110.