Notice of Committee Passages of House Bill 1503

Office of the Governor / Office of Financial Management sent this bulletin at 03/12/2019 01:09 PM PDT

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HB 1503, titled AN ACT Relating to registration and consumer protection obligations of data brokers, has been passed by the House Committee on Innovation, Technology & Economic Development. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal
Year

Data Broker Registration

2020

$ 18,750

2021

18,750

2022

18,750

2023

18,750

2024

18,750

2025

18,750

2026

18,750

2027

18,750

2028

18,750

2029

18,750

Total:

$ 187,500

WaTech estimates approximately 75 vendors per year will be required to register as data broker, which equates to approximately $18,750 per year.

This legislation requires data brokers to register annually, disclose certain information regarding their practices, and to implement a comprehensive information security program to protect personally identifiable information.

It prohibits acquisition of brokered personal information through fraudulent means or acquisition of brokered personal information for the purpose of stalking, committing a fraud or engaging in unlawful discrimination.

The bill directs the Attorney General and the Chief Privacy Officer to submit certain reports to the Legislature.

This fiscal note only addresses those sections of the bill that impact the Department of Revenue (Department).

It requires data brokers to register on or before January 31st following a year in which the business meets the definition of a data broker. The fee for registration is $250.

A civil penalty of $50 per day, not to exceed $10,000 per year, is assessed for businesses who fail to register. Also a fine equal to the $250 fee may be assessed during the period that the business failed to register.

The effective date is January 1, 2020 for sections 1 through 5.

The effective date for other sections is 90 days after final adjournment of the session in which it is enacted.

This legislation results in no revenue impact to taxes administered by the Department of Revenue.

The revenue from the registration fee of $250 will be shown on the fiscal note prepared by Washington Technology Solutions.

None.

The following legislators voted do pass:

Representative Norma Smith
Republican
(360) 786-7884
Norma.Smith@leg.wa.gov

Representative Gael Tarleton
Democrat
(360) 786-7860
Gael.Tarleton@leg.wa.gov

Representative Shelley Kloba
Democrat
(360) 786-7900
Shelley.Kloba@leg.wa.gov

Representative Vandana Slatter
Democrat
(360) 786-7936
Vandana.Slatter@leg.wa.gov

Representative Matt Boehnke
Republican
(360) 786-7986
BOEHNKE_MA@leg.wa.gov

The following legislators voted to refer the bill without recommendation:

Representative Luanne Van Werven
Republican
(360) 786-7980
Luanne.VanWerven@leg.wa.gov

Not voting:

Representative Richard DeBolt
Republican
(360) 786-7896
Richard.DeBolt@leg.wa.gov

Representative Jeff Morris
Democrat
(360) 786-7970
Jeff.Morris@leg.wa.gov

Representative Sharon Tomiko Santos
Democrat
(360) 786-7944
SharonTomiko.Santos@leg.wa.gov

Representative Zack Hudgins
Democrat
(360) 786-7956
Zack.Hudgins@leg.wa.gov

Representative Mike Steele
Republican
(360) 786-7832
mike.steele@leg.wa.gov

Representative Sharon Wylie
Democrat
(360) 786-7924
Sharon.Wylie@leg.wa.gov

Representative Jake Fey
Democrat
(360) 786-7974
Jake.Fey@leg.wa.gov

Representative Jesse Young
Republican
(360) 786-7964
Jesse.Young@leg.wa.gov

Representative Beth Doglio
Democrat
(360) 786-7992
Beth.Doglio@leg.wa.gov

Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp

HB 1503, titled AN ACT Relating to registration and consumer protection obligations of data brokers, has been passed by the House Committee on Appropriations. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection: