Notice of Completion: The 10 Year Analysis for Second Substitute House Bill 1850 is Complete

Office of Financial Management

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2SHB 1850, titled AN ACT Relating to protecting and enforcing the foundational data privacy rights of Washingtonians, has been introduced in the House of Representatives. 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:




SWF Statewide Fiscal Note - OFM:

Sec. 13 requires controllers and processors that meet the thresholds in Section 4 to register with the Commission and pay an annual registration fee based on annual gross revenue for the preceding year. For controllers and processors with less than $850,000,000 the fee is set at $250, and $450 for those with greater than $850,000,000. This section also permits the Commission to issue a fine between $1,000 and $20,000 for each day a controller or processor fails to register. Additionally, the Commission is authorized to levy a fine between $10,000 and $100,000 if the Commission finds an entity knowingly submits false or incomplete information as required in Sec. 1 (b).

 

Sec. 18(4)(b) provides the Commission, after an administrative hearing, may issue an administrative fine against a controller or processor of up to $2,500 for each violation, or up to $7,500 for each intentional violation and each violation involving the personal data of a minor for violation of rules promulgated by the Commission.

 

The Commission’s authority to collect fees and fines would begin on July 31, 2023.

 

The historical regulatory knowledge to estimate the number of entities subject to the bill that are

required to pay annual registration fees as required by Sec. 13 (1)(c) is not available at this time. Additionally, it is not possible to estimate the number of complaints and potential penalties that could be assessed as permitted by Sec. 13 (2), Sec. 13(3) and Sec. 18(4)(b). Therefore, the cash receipts for the Consumer Privacy Account created in Sec. 21 are indeterminate.

 



Ten-year projection prepared in consultation with the following agencies:

SWF Statewide Fiscal Note - OFM

The second substitute bill was proposed by:

House Committee on Appropriations



The original bill sponsors and contact information are:




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

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