The bill introduces a new section to chapter 28B.77 RCW that establishes protections for personally identifying and financial information related to applications for state financial aid. Specifically, it exempts such information from public inspection and copying under chapter 42.56 RCW. Additionally, it mandates that records of applicants to alternative state financial aid applications must be retained for no longer than one year after the end of a postsecondary institution's award year, unless there is an outstanding audit or appeal.

Furthermore, the bill restricts state agencies from sharing the protected information with any other entities, including the federal government, unless a court order is obtained. However, it allows for limited sharing of necessary information between the council and other entities for student enrollment purposes, provided there is a binding data-sharing agreement in place. The bill also stipulates that the council and higher education institutions cannot disclose or reproduce applicant records without a court order, except as required by law.