Z-1258.1          _______________________________________________

                                  HOUSE BILL 2584

                  _______________________________________________

State of Washington              54th Legislature             1996 Regular Session

By Representatives McMorris and Romero; by request of Employment Security Department

Read first time 01/15/96.  Referred to Committee on Commerce & Labor.

Authorizing the use of confidential data collected by the employment security department to improve services to the public.

     AN ACT Relating to the use of confidential data collected by the employment security department to improve services to the public; amending RCW 50.13.080; creating new sections; prescribing penalties; and providing an effective date.

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

NEW SECTION. Sec. 1.  The legislature finds that the employment security department needs to protect confidential data while improving services to the public.  It is the intent of the legislature that the department provide confidential data to persons or organizations for very limited purposes under contract, when a determination is made that the quality and efficiencies of services consistent with Title 50 RCW will be improved.

     Sec. 2.  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.  This subsection shall not be construed as giving authority to the department to give, sell, or provide access to any confidential data for any commercial purpose.  Nothing in this section shall be construed as limiting or restricting the effect of RCW 42.17.260(((5)))(9).

(2) 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. 3.  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. 4.  This act shall take effect July 1, 1996.

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