H-3948.1          _______________________________________________

                                  HOUSE BILL 2393

                  _______________________________________________

State of Washington              54th Legislature             1996 Regular Session

By Representatives Goldsmith, McMorris, Hargrove, Dyer and McMahan

Read first time 01/10/96.  Referred to Committee on Commerce & Labor.

Increasing penalties for disclosure of confidential information.

     AN ACT Relating to penalties for disclosure of confidential information; amending RCW 50.13.080; creating a new section; prescribing penalties; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

     Sec. 1.  RCW 50.13.080 and 1977 ex.s. c 153 s 8 are each amended to read as follows:

(1) The employment security department shall have the right to disclose information or records deemed private and confidential under this chapter to any private person or organization when such disclosure is necessary to permit private contracting parties to assist in the operation and management of the department in instances where certain departmental functions may be delegated to private parties to increase the department's efficiency or quality of service to the public.  The private persons or organizations shall use the information or records solely for the purpose for which the information was disclosed and shall be bound by the same rules of privacy and confidentiality as employment security department employees.

(2) Nothing in this section shall be construed as limiting or restricting the effect of RCW 42.17.260(((5)))(9).

(3) The misuse or unauthorized release of records or information deemed private and confidential under this chapter by any private person or organization to which access is permitted by this section shall subject the person or organization to a civil penalty of five ((hundred)) thousand dollars and other applicable sanctions under state and federal law.  Suit to enforce this section shall be brought by the attorney general and the amount of any penalties collected shall be paid into the employment security department administrative contingency fund.  The attorney general may recover reasonable attorneys' fees for any action brought to enforce this section.

NEW SECTION. Sec. 2.  If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is hereby declared to be inoperative solely to the extent of the conflict, and such finding or determination shall not affect the operation of the remainder of this act.  The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.

NEW SECTION. Sec. 3.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.

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