AN ACT Relating to
distribution of certain governmental lists and information; amending RCW
46.12.370 and 82.32.330; adding new sections to chapter 42.17 RCW; and adding a
new section to chapter 82.32 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
Sec. 1. RCW 46.12.370 and 1982 c
215 s 1 are each amended to read as follows:
In addition to any
other authority which it may have, the department of licensing may furnish
lists of registered and legal owners of motor vehicles only for the purposes
specified in this section to:
(1) The manufacturers
of motor vehicles, or their authorized agents, to be used to enable those
manufacturers to carry out the provisions of the National Traffic and Motor
Vehicle Safety Act of 1966 (15 U.S.C. sec. 1382-1418), including amendments or
additions thereto, respecting safety-related defects in motor vehicles;
(2) Any governmental
agency of the United States or Canada, or political subdivisions thereof, to be
used by it or by its authorized commercial agents or contractors only in
connection with the enforcement of motor vehicle or traffic laws by, or
programs related to traffic safety of, that government agency. Only such parts
of the list as are required for completion of the work required of the agent or
contractor shall be provided to such agent or contractor; ((or))
(3) Any business
regularly making loans to other persons to finance the purchase of motor
vehicles, to be used to assist the person requesting the list to determine
ownership of specific vehicles for the purpose of determining whether or not to
provide such financing. In the event a list of registered and legal owners of
motor vehicles is used for any purpose other than that authorized in
subsections (1)((, (2) and (3))) through (4) of this section, the
manufacturer, governmental agency, financial institution or their authorized
agents or contractors responsible for the unauthorized disclosure or use will
be denied further access to such information by the department of licensing;
or
(4) To private
companies that provide on-line computer data base services to federal, state,
and local agencies for law enforcement or government purposes. The department
shall first obtain the written agreement and assurances satisfactory to the
agency of any company requesting information under this section that any list
so obtained shall not be provided to any person other than as provided in this
section.
NEW SECTION. Sec.
2. A new section is added
to chapter 42.17 RCW to read as follows:
In addition to the
provisions of RCW 42.17.260, state agencies may furnish lists that they
maintain of public information, including such lists in computer readable form
or on magnetic tape, that they make available to other federal, state, or local
government agencies, including law enforcement agencies, to private companies
that provide on-line computer data base services with data bases consisting
primarily of public records. An agency shall first obtain the written
agreement and assurances of the data base company satisfactory to the agency
that the company will supply the lists and information so obtained only to
federal, state, or local government agencies solely for law enforcement or
governmental purposes.
Sec. 3. RCW 82.32.330 and 1995 c
197 s 1 are each amended to read as follows:
(1) For purposes of
this section:
(a)
"Disclose" means to make known to any person in any manner whatever a
return or tax information;
(b) "Return"
means a tax or information return or claim for refund required by, or provided
for or permitted under, the laws of this state which is filed with the
department of revenue by, on behalf of, or with respect to a person, and any
amendment or supplement thereto, including supporting schedules, attachments,
or lists that are supplemental to, or part of, the return so filed;
(c) "Tax
information" means (i) a taxpayer's identity, (ii) the nature, source, or
amount of the taxpayer's income, payments, receipts, deductions, exemptions,
credits, assets, liabilities, net worth, tax liability deficiencies,
overassessments, or tax payments, whether taken from the taxpayer's books and
records or any other source, (iii) whether the taxpayer's return was, is being,
or will be examined or subject to other investigation or processing, (iv) a
part of a written determination that is not designated as a precedent and
disclosed pursuant to RCW 82.32.410, or a background file document relating to
a written determination, and (v) other data received by, recorded by, prepared
by, furnished to, or collected by the department of revenue with respect to the
determination of the existence, or possible existence, of liability, or the
amount thereof, of a person under the laws of this state for a tax, penalty,
interest, fine, forfeiture, or other imposition, or offense: PROVIDED, That
data, material, or documents that do not disclose information related to a
specific or identifiable taxpayer do not constitute tax information under this
section. Except as provided by RCW 82.32.410, nothing in this chapter shall
require any person possessing data, material, or documents made confidential
and privileged by this section to delete information from such data, material,
or documents so as to permit its disclosure;
(d) "State
agency" means every Washington state office, department, division, bureau,
board, commission, or other state agency;
(e) "Taxpayer
identity" means the taxpayer's name, address, telephone number,
registration number, or any combination thereof, or any other information
disclosing the identity of the taxpayer; and
(f)
"Department" means the department of revenue or its officer, agent,
employee, or representative.
(2) Returns and tax
information shall be confidential and privileged, and except as authorized by
this section, neither the department of revenue nor any other person may
disclose any return or tax information.
(3) The foregoing,
however, shall not prohibit the department of revenue from:
(a) Disclosing such
return or tax information in a civil or criminal judicial proceeding or an
administrative proceeding:
(i) In respect of any
tax imposed under the laws of this state if the taxpayer or its officer or
other person liable under Title 82 RCW is a party in the proceeding; or
(ii) In which the
taxpayer about whom such return or tax information is sought and another state
agency are adverse parties in the proceeding;
(b) Disclosing, subject
to such requirements and conditions as the director shall prescribe by rules
adopted pursuant to chapter 34.05 RCW, such return or tax information regarding
a taxpayer to such taxpayer or to such person or persons as that taxpayer may
designate in a request for, or consent to, such disclosure, or to any other
person, at the taxpayer's request, to the extent necessary to comply with a
request for information or assistance made by the taxpayer to such other
person: PROVIDED, That tax information not received from the taxpayer shall
not be so disclosed if the director determines that such disclosure would
compromise any investigation or litigation by any federal, state, or local
government agency in connection with the civil or criminal liability of the
taxpayer or another person, or that such disclosure would identify a confidential
informant, or that such disclosure is contrary to any agreement entered into by
the department that provides for the reciprocal exchange of information with
other government agencies which agreement requires confidentiality with respect
to such information unless such information is required to be disclosed to the
taxpayer by the order of any court;
(c) Disclosing the name
of a taxpayer with a deficiency greater than five thousand dollars and against
whom a warrant under RCW 82.32.210 has been either issued or filed and remains
outstanding for a period of at least ten working days. The department shall
not be required to disclose any information under this subsection if a
taxpayer: (i) Has been issued a tax assessment; (ii) has been issued a warrant
that has not been filed; and (iii) has entered a deferred payment arrangement
with the department of revenue and is making payments upon such deficiency that
will fully satisfy the indebtedness within twelve months;
(d) Disclosing the name
of a taxpayer with a deficiency greater than five thousand dollars and against
whom a warrant under RCW 82.32.210 has been filed with a court of record and
remains outstanding;
(e) Publishing
statistics so classified as to prevent the identification of particular returns
or reports or items thereof;
(f) Disclosing such
return or tax information, for official purposes only, to the governor or
attorney general, or to any state agency, or to any committee or subcommittee
of the legislature dealing with matters of taxation, revenue, trade, commerce,
the control of industry or the professions;
(g) Permitting the
department of revenue's records to be audited and examined by the proper state
officer, his or her agents and employees;
(h) Disclosing any such
return or tax information to the proper officer of the internal revenue service
of the United States, the Canadian government or provincial governments of
Canada, or to the proper officer of the tax department of any state or city or
town or county, for official purposes, but only if the statutes of the United
States, Canada or its provincial governments, or of such other state or city or
town or county, as the case may be, grants substantially similar privileges to
the proper officers of this state;
(i) Disclosing any such
return or tax information to the Department of Justice, the Bureau of Alcohol,
Tobacco and Firearms of the Department of the Treasury, the Department of
Defense, the United States customs service, the coast guard of the United
States, and the United States department of transportation, or any authorized
representative thereof, for official purposes;
(j) Publishing or
otherwise disclosing the text of a written determination designated by the
director as a precedent pursuant to RCW 82.32.410;
(k) Disclosing, in a
manner that is not associated with other tax information, the taxpayer name,
entity type, business address, mailing address, revenue tax registration
numbers, standard industrial classification code of a taxpayer, and the dates
of opening and closing of business. This subsection shall not be construed as
giving authority to the department to give, sell, or provide access to any list
of taxpayers for any commercial purpose except as provided in section 4 of
this act; or
(l) Disclosing such return
or tax information that is also maintained by another Washington state or local
governmental agency as a public record available for inspection and copying
under the provisions of chapter 42.17 RCW or is a document maintained by a
court of record not otherwise prohibited from disclosure.
(4)(a) The department
may disclose return or taxpayer information to a person under investigation or
during any court or administrative proceeding against a person under
investigation as provided in this subsection (4). The disclosure must be in
connection with the department's official duties relating to an audit,
collection activity, or a civil or criminal investigation. The disclosure may
occur only when the person under investigation and the person in possession of
data, materials, or documents are parties to the return or tax information to
be disclosed. The department may disclose return or tax information such as
invoices, contracts, bills, statements, resale or exemption certificates, or
checks. However, the department may not disclose general ledgers, sales or
cash receipt journals, check registers, accounts receivable/payable ledgers,
general journals, financial statements, expert's workpapers, income tax
returns, state tax returns, tax return workpapers, or other similar data,
materials, or documents.
(b) Before disclosure
of any tax return or tax information under this subsection (4), the department
shall, through written correspondence, inform the person in possession of the
data, materials, or documents to be disclosed. The correspondence shall
clearly identify the data, materials, or documents to be disclosed. The
department may not disclose any tax return or tax information under this
subsection (4) until the time period allowed in (c) of this subsection has
expired or until the court has ruled on any challenge brought under (c) of this
subsection.
(c) The person in
possession of the data, materials, or documents to be disclosed by the
department has twenty days from the receipt of the written request required
under (b) of this subsection to petition the superior court of the county in
which the petitioner resides for injunctive relief. The court shall limit or
deny the request of the department if the court determines that:
(i) The data,
materials, or documents sought for disclosure are cumulative or duplicative, or
are obtainable from some other source that is more convenient, less burdensome,
or less expensive;
(ii) The production of
the data, materials, or documents sought would be unduly burdensome or
expensive, taking into account the needs of the department, the amount in
controversy, limitations on the petitioner's resources, and the importance of
the issues at stake; or
(iii) The data,
materials, or documents sought for disclosure contain trade secret information
that, if disclosed, could harm the petitioner.
(d) The department
shall reimburse reasonable expenses for the production of data, materials, or
documents incurred by the person in possession of the data, materials, or
documents to be disclosed.
(e) Requesting
information under (b) of this subsection that may indicate that a taxpayer is
under investigation does not constitute a disclosure of tax return or tax
information under this section.
(5) Any person acquiring
knowledge of any return or tax information in the course of his or her
employment with the department of revenue and any person acquiring knowledge of
any return or tax information as provided under subsection (3)(f), (g), (h), or
(i) of this section, who discloses any such return or tax information to
another person not entitled to knowledge of such return or tax information
under the provisions of this section, shall upon conviction be punished by a
fine not exceeding one thousand dollars and, if the person guilty of such
violation is an officer or employee of the state, such person shall forfeit
such office or employment and shall be incapable of holding any public office
or employment in this state for a period of two years thereafter.
NEW SECTION. Sec.
4. A new section is added
to chapter 82.32 RCW to read as follows:
The department of
revenue may furnish lists of taxpayer names, entity types, business addresses,
mailing addresses, revenue tax registration numbers, standard industrial
classification code of a taxpayer, and the dates of opening and closing of a
business to companies that provide on-line computer data base services. The
on-line computer companies shall provide the data bases consisting primarily of
public records only to other federal, state, or local government agencies
solely for law enforcement or government purposes. Before providing a list to
a company under this section, the department shall obtain a written agreement
that any list so provided shall be used only for the purposes specified in this
section.
NEW SECTION. Sec.
5. A new section is added
to chapter 42.17 RCW to read as follows:
The
legislature finds that the practices covered by RCW 46.12.370(4) and sections 2
and 4 of this act are matters vitally affecting the public interest for the
purpose of applying the consumer protection act, chapter 19.86 RCW. Violations
of RCW 46.12.370(4) and sections 2 and 4 of this act are not reasonable in
relation to the development and preservation of business. A violation of RCW
46.12.370(4) or section 2 or 4 of this act is an unfair or deceptive act in
trade or commerce and an unfair method of competition for the purpose of
applying the consumer protection act, chapter 19.86 RCW.
