FINAL BILL REPORT

ESB 5439

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

C 81 L 19

Synopsis as Enacted

Brief Description: Concerning confidentiality of employment security department records and data.

Sponsors: Senators Keiser, King, Kuderer, Conway, McCoy, Saldaña and Wellman; by request of Employment Security Department.

Senate Committee on Labor & Commerce

House Committee on Labor & Workplace Standards

Background: Any information or records concerning an individual or employing unit obtained by the Employment Security Department (ESD) pursuant to the administration of unemployment insurance are generally private and confidential.

If information provided to ESD by another governmental agency is held private and confidential by state or federal laws, ESD may not release such information. Information provided to ESD by another governmental entity conditioned upon privacy and confidentiality is to be held private and confidential according to the agreement between ESD and the other governmental agency. ESD may hold private and confidential information obtained for statistical analysis, research, or study purposes if the information was supplied voluntarily, conditioned upon maintaining confidentiality of the information. Persons requesting disclosure of information held by ESD must request such disclosure from the agency providing the information to ESD.

There are a variety of laws regarding access to information held at ESD by:

Summary: Third Party Disclosure. ESD may disclose records and information deemed confidential to a third party acting on behalf of an individual or employing unit that would otherwise be eligible to receive records when ESD receives a release from the individual, the employing unit, or the third party. The release must be signed and include a statement, which must include the specific purpose for which the information is sought and that the information obtained under the release will only be used for that purpose.

Governmental Agencies and Tribes Access to Information. The term governmental agencies is clarified to include state and local governmental agencies and certain federally recognized Indian tribes. Governmental agencies must meet additional criteria to obtain information, such as submitting an application indicating the need for the information.

Affirmative Action Required. New provisions are added related to the information received from ESD. All private persons, governmental agencies, and organizations authorized to receive information from ESD have an affirmative obligation to take all reasonable actions necessary that are designed to prevent the disclosure of confidential information. Disclosure of these records or information is prohibited unless expressly permitted by law.

Misuse or Unauthorized Disclosure. If misuse or an unauthorized disclosure of confidential records or information occurs, all parties aware of the violation must inform ESD immediately and take all reasonably available actions to rectify the disclosure to ESD's standards. The misuse or unauthorized disclosure, or redisclosure without express ESD permission, of records or information deemed private and confidential is subject to a civil penalty of up to $20,000 beginning in 2018 and adjusted for inflation. The penalties must be paid into ESD's administrative contingency fund. The attorney general may recover reasonable attorneys' fees for any action brought to enforce this section. State and local governmental agencies and certain federally recognized Indian tribes are exempt from the penalties if the redisclosure is necessary for the state, local, or tribal government to conduct a criminal prosecution.

ESD Privacy Officer. ESD must designate an agency privacy officer. In coordination with the state Office of Privacy and Data Protection, the ESD privacy officer must:

Any inventory or data map records are exempt from disclosure under the Public Records Act. The following information related to employment security is also exempt from disclosure under the Public Records Act:

ESD must report to the Governor and the Legislature on the implementation and maintenance of the new provisions, including best practices and recommendations.

Provisions are deleted that:

Other technical changes are made.

Votes on Final Passage:

Senate

49

0

House

94

0

Effective:

July 28, 2019