6513-S AAS 2/15/00 S4799

6513-S AAS 2/15/00 S4799.3

SSB 6513 - S AMD - 166

By Senators Prentice, Hale, Winsley, Gardner and Shin

ADOPTED 2/15/00

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. INTENT. (1) The legislature finds that every entity has an affirmative and continuing obligation to respect the privacy of its consumers and to protect the security and confidentiality of consumers. The legislature finds that Washington's citizens have a right to privacy and a reasonable expectation that the personal information that they provide in commercial transactions with financial institutions and others who maintain and transfer information will be kept private and confidential. The legislature finds that there is no existing uniform law that creates an appropriate standard of conduct for disclosure of consumers' personal information and that Washington's citizens need additional statutory protection from fraud, deception, nuisance, invasion of privacy, and breach of confidentiality related to the disclosure of personal information. The legislature intends to ensure that entities and consumers work cooperatively to protect consumer information and enforce sanctions when violations occur.

(2) The legislature finds that the disclosure of personal information has caused specific significant harms to Washington consumers, including the appearance of unauthorized charges or debits on consumers' accounts, misappropriation of sensitive information for the purpose of assuming a consumer's identity, the unwanted and unintended dissemination of personal and sensitive information, and the invasion of privacy.

(3) The legislature finds that the dissemination of certain sensitive information causes a great risk of harm to the consumer, that it should be given a greater level of protection under the law, and that requiring consumer authorization to disseminate such sensitive information best balances the benefits and harms of disclosure.

(4) The legislature finds that the flow of less sensitive personal information has resulted in a number of increased market efficiencies that are beneficial to consumers. These include more rapid credit transactions and check verifications, as well as an increased number of choices for products and services. The legislature finds that these benefits can be maintained by giving consumers the opportunity to choose whether their less sensitive information will be shared. The legislature finds that giving consumers this choice best balances the benefits and harms of disclosure of such information.

(5) The legislature finds that the incidence of identity theft is rapidly growing, and that victims of identity theft need further assistance in obtaining the information necessary to the prosecution of their cases. The legislature finds that requiring additional information sharing by merchants with victims will result in greater protections for consumers and deter potential perpetrators.

NEW SECTION. Sec. 2. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Affiliate" means an entity that controls, is controlled by, or is under common control or common ownership with another entity. Companies that form alliances as a financial services group for purposes of marketing their services and are located at a common address, have personnel and payroll functions administered through a central office, jointly sponsor one combined employee savings and profit sharing plan, and have centralized data processing, mail service, communications, and procurement are considered under common control and affiliated with each other.

(2) "Consumer" or "customer" means a natural person or his or her legal representative, who is a resident of the state of Washington and who purchases, leases, or otherwise contracts for products, goods, or services within the state of Washington or from an entity located in the state of Washington, that are primarily used for personal, family, or household purposes on or after the effective date of this act and who continues to be a resident of the state of Washington.

(3) "Consumer-requested purpose" means for the purpose of establishing or maintaining a business relationship, completing a transaction, or providing a product, good, or service requested by the consumer.

(4) "De minimus cost method" means any method, such as a toll-free telephone number, a post office box or address for accepting first-class mail, or any similar, convenient, low-cost method, which does not exceed the cost of a first-class postage stamp for the consumer. If other de minimus cost methods are offered, accepting e-mail or online messages from consumers shall be considered a de minimus cost method.

(5) "Financial institution" means (a) a financial institution as defined in section 527(4) of the Gramm-Leach-Bliley Act, P.L. 106-102 and its implementing regulations; or (b) a bank holding company or financial holding company, as defined in sections 2(a) and 2(p) of the Bank Holding Company Act, as amended, or any subsidiary thereof as defined in section 2(d) of the Bank Holding Company Act, as amended.

(6) "Functional business purpose" means use or disclosure of sensitive or personal information by an information custodian to another entity or person to perform services or functions on behalf of the information custodian as part of the information custodian's provision of its products, goods, or services to its customers;

(7) "Information custodian" means all nonpublic commercial entities that maintain data containing personal information or sensitive information about consumers they know reside in Washington and that sell, share, or otherwise transfer the information to others, including affiliates or nonaffiliates, for purposes other than consumer-requested purposes or functional business purposes. An "information custodian" does not include a consumer reporting agency, as defined in the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.), to the extent its activities are directly related to assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and to the extent that the activities are regulated by the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.). "Information custodian" does not include an "agent," "broker," or "solicitor" as defined in chapter 48.17 RCW, to the extent their activities include the sharing, selling, or transferring of personal or sensitive information between an insurer as defined in chapter 48.01 RCW, and its contractually bound agents, brokers, and solicitors, and their activities that are directly related to soliciting applications on behalf of an insurer, effectuating insurance contracts, or collecting premiums on insurances so applied for or effectuated.

(8) "Marketer" means a nonpublic, commercial entity that maintains data containing personal information or sensitive information about consumers it knows reside in Washington and uses the information to engage in marketing.

(9) "Marketing" or "marketing information" means a promotion, solicitation, or advertisement that specifically references the sale or lease of products, goods, or services made through written, telephonic, electronic, or other means, that is directed to a specific named consumer, but shall not include any promotion, solicitation, or advertisement (a) included with a billing or statement, (b) directed to the public, or (c) made to such consumer while present at the marketer's place of business or during any other contact with the marketer initiated by or at the request of the consumer.

(10) "Personal information" means information that is provided by the consumer in a commercial context, and is identifiable to the individual consumer, that concerns the amount or condition of the consumer's assets, liabilities, financial transactions, purchasing history, buying preferences, business relationships, customer status, demographic information, name, address, telephone number, electronic mail address, or that reflects current or historical deposit or credit card account balances or purchase amounts.

(11) "Sensitive information" means information maintained in a commercial context that is identifiable with an individual consumer or a specific account and may be held for the purpose of transaction initiation, account access or identity verification, and includes account numbers, access codes or passwords, social security numbers, tax identification numbers, driver's license or permit numbers, state identicard numbers issued by the department of licensing, and credit card numbers or expiration dates, and electronically captured signatures.

NEW SECTION. Sec. 3. RESTRICTION ON CONSUMER INFORMATION. Information custodians and marketers shall, in performing a transaction with a consumer, providing a service for a consumer, or establishing a business relationship with a consumer, require only that the consumer provide information reasonably necessary to perform the transaction, establish the relationship, administer or maintain the business relationship, collect or service a debt, protect against fraud or unauthorized transactions, or comply with applicable law. Any optional information must be specified as such, and the consumer must be given the option not to provide it.

NEW SECTION. Sec. 4. CONSUMER PRIVACY POLICIES. (1) An information custodian must have a consumer privacy policy that discloses to existing and prospective consumers the policies and practices of the information custodian regarding the use of consumer personal information and sensitive information acquired or possessed by the information custodian. Entities that maintain data containing personal information or sensitive information but do not sell, share, or otherwise transfer the data, are not required to have a privacy policy.

(2) The consumer privacy policy, at a minimum, must summarize the information custodian's responsibilities under this chapter and describe the consumer's rights and remedies under it, and generally describe with whom the consumer's personal and sensitive information will be shared or to whom it will be sold or transferred.

(3) The consumer privacy policy must also provide a reasonable means for consumers to access their personal and sensitive information that the information custodian shares, sells, or transfers for marketing purposes.

(4) An information custodian must disclose its consumer privacy policy at least once no later than:

(a) The effective date of this act to existing customers about whom the information custodian has names and addresses or other means of contact, or within a reasonable period of time after the information custodian obtains the consumers' names and addresses or other means of contact. For the purposes of this subsection, "existing customer" means a customer whose personal or sensitive information has been sold, shared, or transferred within the twelve-month period preceding the effective date of this act;

(b) Thirty days after a prospective customer's initial request for the policy, following the effective date of this act; and

(5) An information custodian must disclose its consumer privacy policy on an annual basis to existing customers after the initial disclosure described in subsection (4) of this section, and, when material changes are made to the policy, the information custodian must notify the consumer, clearly and conspicuously in writing, in plain language, of the material changes and describe the consumer's rights under sections 5(1) and 7 (1) and (2) of this act, including the consumer's right to withdraw any consent given by the consumer under section 7(2) of this act.

(6) The disclosure of the consumer privacy policy must be clearly and conspicuously made in writing, in a document separate from or attached as the first item of other documents or pages that are provided to the consumer by the information custodian.

(7) The consumer privacy policy must be clearly and conspicuously posted on the information custodian's website, if a website exists, and must be readily available for review at the information custodian's place of business.

(8) Compliance by a financial institution with the timing of disclosures under section 503 of Public Law 106-102 (the Gramm-Leach-Bliley Act of 1999) and its implementing regulations constitutes compliance with the disclosure deadline requirements of subsection (4) of this section and section 5(1)(a) of this act for existing customers.

NEW SECTION. Sec. 5. PERSONAL INFORMATION‑-CONSUMER CONTROL. (1) An information custodian may share, sell, or otherwise transfer personal information for purposes other than consumer-requested purposes or functional business purposes, only if it has clearly and conspicuously disclosed to the consumer the following information in plain language:

(a) That the consumer has the right to choose not to have his or her personal information shared, sold, or otherwise transferred for purposes other than consumer-requested purposes or functional business purposes. The disclosure must be made at the time the consumer privacy policy is provided to the customer under section 4 of this act.

(b) That the consumer may choose not to have his or her personal information shared, sold, or transferred for other than consumer-requested purposes or functional business purposes, by exercising his or her choice through a de minimus cost method the information custodian has established.

(2) If, under this section, a consumer chooses not to have his or her personal information shared, sold, or otherwise transferred under subsection (1) of this section, the information custodian must stop sharing, selling, or otherwise transferring the consumer's personal information for purposes other than consumer-requested purposes or functional business purposes, within ninety days of receiving the consumer's notice. Once a consumer has chosen not to have his or her personal information shared, sold, or otherwise transferred, an information custodian may not share, sell, or otherwise transfer the information for purposes other than consumer-requested purposes or functional business purposes until the consumer notifies the entity that he or she has chosen to have his or her personal information shared, sold, or otherwise transferred under subsection (1) of this section.

(3) This section does not apply to disclosure of personal information under the following circumstances. However, the recipient of the information is subject to section 8 of this act:

(a) Disclosure to or at the direction or with the consent of the consumer upon his or her request and upon proper identification;

(b) Disclosure required by federal, state, or local law or regulation, rules, and other applicable legal requirements;

(c) Disclosure made in the course of a properly authorized civil, criminal, or regulatory examination or investigation or under a search warrant, court order, or subpoena, including an administrative subpoena or other legal process;

(d) Disclosure to a third party or an affiliate for the purpose of collecting a debt or dishonored item;

(e) Disclosure to protect the confidentiality or security of the information custodian's records;

(f) Disclosure to protect against, investigate, or prevent actual or potential fraud, unauthorized transactions, claims, or other liability;

(g) Disclosure as part of a risk control program required by or subject to examination by regulators;

(h) Disclosure by or to a consumer reporting agency as specifically permitted under the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.);

(i) Disclosure of consumer report information between affiliates as specifically permitted under the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.);

(j) Disclosure for purposes of a proposed or actual securitization, secondary market sale (including sales of service rights), or similar transaction related to a consumer-requested purpose;

(k) Disclosure to persons holding a legal or beneficial interest relating to the consumer;

(l) Disclosure in order to provide information to insurance rate advisory organizations, guaranty funds or agencies, applicable rating agencies of the information custodian, persons assessing the information custodian's compliance with industry standards, and the information custodian's attorneys, accountants, and auditors;

(m) Disclosure in connection with a proposed or actual sale, merger, transfer, or exchange of all or a portion of a business or operating unit of an information custodian if the disclosure of information concerns solely consumers of the business or unit;

(n) Disclosure to a federal, state, or local agency as required by that agency to fulfill its legal obligations on behalf of a consumer;

(o) Disclosure of health care information in compliance with state and federal law; or

(p) Disclosure between licensees or franchisees and their licensors or franchisors, when (i) such licensees or franchisees market, sell, or lease products, goods, or services in a retail setting at a common physical address with the licensor or franchisor; (ii) have common data processing functions with the licensor or franchisor; and (iii) advertise, market, or sell products, goods, or services marked or otherwise directly identified with the franchisor's or licensor's name or distinctive brand.

NEW SECTION. Sec. 6. MARKETING-CONSUMER CONTROL. (1) A marketer may use personal or sensitive information for marketing purposes only if it has clearly and conspicuously disclosed in plain language to the consumer:

(a) That the consumer has the right to choose not to receive marketing information. This disclosure must be made in all marketing information, in whatever medium the marketing information is sent or, if the marketer is an information custodian, in the privacy policy provided to the customer under section 4 of this act. If the marketer is not an information custodian, it may choose as an option to provide the disclosure in a privacy policy provided to the customer under section 4 of this act instead of disclosing it in all marketing information;

(b) That the consumer may choose not to receive marketing information by exercising his or her choice through a de minimus cost method provided by the marketer. This disclosure must be made in all marketing information in whatever medium the marketing information is sent, or, if the marketer is an information custodian, in the privacy policy provided to the customer under section 4 of this act. The marketer shall maintain adequate and reasonable access for consumers to the de minimus cost method it has established. If the marketer is not an information custodian, it may choose as an option to provide the disclosure in a privacy policy provided to the customer under section 4 of this act instead of disclosing it in all marketing information.

(2) If, under this section, a consumer chooses not to receive marketing information, the marketer must stop marketing to the consumer within ninety days of receiving the consumer's notice. Once a consumer has chosen not to receive marketing information, a marketer may not market to the consumer until the consumer notifies the marketer that he or she has chosen to receive marketing information.

NEW SECTION. Sec. 7. SENSITIVE INFORMATION‑-CONSUMER CONTROL. (1) An information custodian may not disclose sensitive information to a third party or affiliate for purposes other than consumer-requested purposes or functional business purposes unless the consumer has received written notification of the following:

(a) The information to be disclosed;

(b) The entity or entities authorized to receive the disclosure of information; and

(2) An information custodian may not disclose sensitive information to a third party or affiliate for purposes other than consumer-requested purposes or functional business purposes unless the consumer, upon notice as provided in this section and affirmative consent, authorizes the disclosure of the sensitive information sought to be disclosed, in a written statement dated and accepted by the consumer that is separate and distinct from any other document, and that contains a description of the information sought to be disclosed and the purpose for which the information will be disclosed.

(3) This section does not apply to disclosure of sensitive information under the following circumstances. However, the recipient of the information is subject to section 8 of this act:

(a) Disclosure to or at the direction or with the consent of the consumer upon his or her request and upon proper identification;

(b) Disclosure required by federal, state, or local law or regulation, rules, and other applicable legal requirements;

(d) Disclosure to a third party or an affiliate for the purpose of collecting a debt or a dishonored item;

(e) Disclosure to protect the confidentiality or security of the information custodian's records;

(f) Disclosure to protect against, investigate, or prevent actual or potential fraud or unauthorized transactions, claims, or other liability;

(g) Disclosure as part of a risk control program required by or subject to examination by regulators;

(h) Disclosure by or to a consumer reporting agency as specifically permitted under the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.);

(i) Disclosure of consumer report information between affiliates as specifically permitted under the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.);

(j) Disclosure of sensitive information which is prohibited from disclosure by section 502(d) of Public Law 106-102 (the Gramm-Leach-Bliley Act of 1999);

(k) Disclosure for purposes of a proposed or actual securitization, secondary market sale (including sales service rights), or similar transactions related to a consumer-requested purpose;

(l) Disclosure to persons holding a legal or beneficial interest relating to the consumer;

(m) Disclosure in order to provide information to insurance rate advisory organizations, guaranty funds or agencies, applicable rating agencies of the information custodian, persons assessing the information custodian's compliance with industry standards, and the information custodian's attorneys, accountants, and auditors;

(n) Disclosure in connection with a proposed or actual sale, merger, transfer, or exchange of all or a portion of a business or operating unit of an information custodian if the disclosure of information concerns solely consumers of the business or unit;

(o) Disclosure of health care information in compliance with state and federal law;

(p) Disclosure to a federal, state, or local agency as required by that agency to fulfill its legal obligations on behalf of a consumer; or

(q) Disclosure between licensees or franchisees and their licensors or franchisors, when (i) such licensees or franchisees market, sell, or lease products, goods, or services in a retail setting at a common physical address with the licensor or franchisor; (ii) have common data processing functions with the licensor or franchisor; and (iii) advertise, market, or sell products, goods, or services marked or otherwise directly identified with the franchisor's or licensor's name or distinctive brand.

NEW SECTION. Sec. 8. CONFIDENTIALITY AND SECURITY OF INFORMATION. (1) Third parties or affiliates that obtain personal information or sensitive information from information custodians may not sell, share, or otherwise transfer the information for any reason other than the original purpose for which the information was sold, shared, or transferred to the third party or affiliate.

(2) An information custodian, before sharing, selling, or otherwise transferring personal information or sensitive information, must obtain a written agreement from the third party or affiliate providing for the following:

(a) To keep the information confidential;

(b) To use the information only for the original purpose for which it has been shared, sold, or provided; and

(3) Every information custodian must establish reasonable safeguards to ensure the confidentiality and safety of personal information and sensitive information and to protect them from loss, misuse, theft, unauthorized access, disclosure, defacement, or alteration.

NEW SECTION. Sec. 9. ACTIONS OR TRANSACTIONS BY COMPETITIVE TELECOMMUNICATIONS COMPANIES. For purposes of this chapter, and the consumer protection act, chapter 19.86 RCW, actions or transactions by information custodians or marketers who, pursuant to RCW 80.36.320 are competitive telecommunications companies, or actions or transactions associated with competitive telecommunications services are not otherwise permitted, prohibited, or regulated by the utilities and transportation commission.

NEW SECTION. Sec. 10. VIOLATION AN UNFAIR OR DECEPTIVE ACT. (1) Unfair and deceptive invasion of privacy rights is not reasonable in relation to the development and preservation of business. The legislature finds that the practices covered by this chapter are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW. A violation of this chapter is an unfair or deceptive act in trade or commerce for the purpose of applying the consumer protection act, chapter 19.86 RCW.

(2) A consumer may not bring an action for an alleged violation of this chapter, other than an alleged violation of section 7 or 8 of this act or a willful violation of section 3, 4, or 5 of this act, unless, within seven years before the alleged violation, he or she has notified the defendant of a violation of the section, in writing at an address specified in the defendant's privacy policy if the defendant is an information custodian or at an address provided by the defendant upon the consumer's request if the defendant is a marketer, and the defendant has again committed the violation more than ninety days after having received the notification.

(3) Damages to a person who has been the victim of a violation of this chapter are five hundred dollars, or actual damages, whichever is greater. A court may increase the award of damages in an amount not more than three times the actual damages sustained, or one thousand five hundred dollars, whichever is greater, upon a demonstration that a violation of the chapter was willful.

NEW SECTION. Sec. 11. FEDERAL INVALIDITY--ANTITRUST LAWS. If the responsible federal chartering authority, under applicable federal law, or if a court of competent jurisdiction declares that any provision of this chapter is invalid with respect to any financial institution, the provision is also invalid, to the same extent, with respect to financial institutions chartered under the laws of the state of Washington and to host branches of out-of-state banks. The director of the department of financial institutions may, from time to time, publish provisions of state laws that have been found invalidated under federal law and procedures. This section does not impair in any manner the authority of the state attorney general to enforce antitrust laws applicable to financial institutions or their affiliates.

NEW SECTION. Sec. 12. A new section is added to chapter 9.35 RCW to read as follows:

DEFINITIONS. As used in this chapter, unless the context clearly requires otherwise:

(1) "Financial information" means, to the extent it is nonpublic, any of the following information identifiable to the individual that concerns the amount and conditions of an individual's assets, liabilities, or credit:

(a) Account numbers and balances;

(b) Transactional information concerning any account; and

(c) Codes, passwords, social security numbers, tax identification numbers, driver's license or permit numbers, state identicard numbers issued by the department of licensing, and other information held for the purpose of account access or transaction initiation.

(2) "Financial information repository" means any person engaged in the business of providing services to customers who have a credit, deposit, trust, stock, or other financial account or relationship with the person.

(3) "Means of identification" means any information or item that is not describing finances or credit but is personal to or identifiable with any individual or other person, including any current or former name of the person, telephone number, and electronic address or identifier of the individual or any member of his or her family, including the ancestor of such person; any information relating to a change in name, address, telephone number, or electronic address or identifier of the individual or his or her family; any social security, driver's license, or tax identification number of the individual or any member of his or her family; and other information which could be used to identify the person, including unique biometric data.

(4) "Person" means an individual, partnership, corporation, or association.

(5) "Personal information" means information that is provided by the consumer in a commercial context, and is identifiable to the individual consumer, that concerns the amount or condition of the consumer's assets, liabilities, financial transactions, purchasing history, buying preferences, business relationships, customer status, demographic information, name, address, telephone number, or electronic mail address.

(6) "Sensitive information" means information maintained in a commercial context that is identifiable with an individual consumer or a specific account and is held for the purpose of transaction initiation, account access or identity verification, or that reflects current or historical deposit or credit card account balances or purchase amounts, and includes account numbers, access codes or passwords, social security numbers, tax identification numbers, driver's license or permit numbers, state identicard numbers issued by the department of licensing, and credit card numbers or expiration dates.

(7) "Victim" means a person whose means of identification, personal information, or sensitive information has been used or transferred without authorization with the intent to commit, or to aid or abet, an unlawful activity harming or intending to harm the person whose identity is used, or to commit a felony.

NEW SECTION. Sec. 13. A new section is added to chapter 9.35 RCW to read as follows:

INFORMATION AVAILABLE TO VICTIM. (1) A person, financial information repository, corporation, trust, partnership, or unincorporated association possessing information relating to an actual or potential violation of this chapter, and who may have entered into a transaction, provided credit, products, goods, or services, accepted payment, or otherwise done business with a person who has used the victim's means of identification, must, upon request of the victim, provide copies of all information relevant to the potential or actual violation of this chapter.

(2) Prior to providing the information required under subsection (1) of this section, the provider may require the victim to provide positive identification of the victim and a copy of a police report evidencing the victim's claim. The provider may also seek reasonable compensation for the actual cost of providing the information requested.

(3) No person, financial information repository, corporation, trust, partnership, or unincorporated association may be held liable for an action voluntarily taken in good faith to provide information regarding potential or actual violations of this chapter to other financial information repositories, merchants, law enforcement authorities, or to the victim, for the purpose of identification and prosecution of violators of this chapter.

Sec. 14. RCW 19.16.250 and 1983 c 107 s 1 are each amended to read as follows:

No licensee or employee of a licensee shall:

(1) Directly or indirectly aid or abet any unlicensed person to engage in business as a collection agency in this state or receive compensation from such unlicensed person: PROVIDED, That nothing in this chapter shall prevent a licensee from accepting, as forwardee, claims for collection from a collection agency or attorney whose place of business is outside the state.

(2) Collect or attempt to collect a claim by the use of any means contrary to the postal laws and regulations of the United States postal department.

(3) Publish or post or cause to be published or posted, any list of debtors commonly known as "bad debt lists" or threaten to do so. For purposes of this chapter, a "bad debt list" means any list of natural persons alleged to fail to honor their lawful debts. However, nothing herein shall be construed to prohibit a licensee from communicating to its customers or clients by means of a coded list, the existence of a check dishonored because of insufficient funds, not sufficient funds or closed account by the financial institution servicing the debtor's checking account: PROVIDED, That the debtor's identity is not readily apparent: PROVIDED FURTHER, That the licensee complies with the requirements of subsection (9)(e) of this section.

(4) Have in his possession or make use of any badge, use a uniform of any law enforcement agency or any simulation thereof, or make any statements which might be construed as indicating an official connection with any federal, state, county, or city law enforcement agency, or any other governmental agency, while engaged in collection agency business.

(5) Perform any act or acts, either directly or indirectly, constituting the practice of law.

(6) Advertise for sale or threaten to advertise for sale any claim as a means of endeavoring to enforce payment thereof or agreeing to do so for the purpose of soliciting claims, except where the licensee has acquired claims as an assignee for the benefit of creditors or where the licensee is acting under court order.

(7) Use any name while engaged in the making of a demand for any claim other than the name set forth on his or its current license issued hereunder.

(8) Give or send to any debtor or cause to be given or sent to any debtor, any notice, letter, message, or form which represents or implies that a claim exists unless it shall indicate in clear and legible type:

(a) The name of the licensee and the city, street, and number at which he is licensed to do business;

(b) The name of the original creditor to whom the debtor owed the claim if such name is known to the licensee or employee: PROVIDED, That upon written request of the debtor, the licensee shall make a reasonable effort to obtain the name of such person and provide this name to the debtor;

(c) If the notice, letter, message, or form is the first notice to the debtor or if the licensee is attempting to collect a different amount than indicated in his or its first notice to the debtor, an itemization of the claim asserted must be made including:

(i) Amount owing on the original obligation at the time it was received by the licensee for collection or by assignment;

(ii) Interest or service charge, collection costs, or late payment charges, if any, added to the original obligation by the original creditor, customer or assignor before it was received by the licensee for collection, if such information is known by the licensee or employee: PROVIDED, That upon written request of the debtor, the licensee shall make a reasonable effort to obtain information on such items and provide this information to the debtor;

(iii) Interest or service charge, if any, added by the licensee or customer or assignor after the obligation was received by the licensee for collection;

(iv) Collection costs, if any, that the licensee is attempting to collect;

(v) Attorneys' fees, if any, that the licensee is attempting to collect on his or its behalf or on the behalf of a customer or assignor;

(vi) Any other charge or fee that the licensee is attempting to collect on his or its own behalf or on the behalf of a customer or assignor.

(9) Communicate or threaten to communicate, the existence of a claim to a person other than one who might be reasonably expected to be liable on the claim in any manner other than through proper legal action, process, or proceedings except under the following conditions:

(a) A licensee or employee of a licensee may inform a credit reporting bureau of the existence of a claim: PROVIDED, That if the licensee or employee of a licensee reports a claim to a credit reporting bureau, the licensee shall upon receipt of written notice from the debtor that any part of the claim is disputed, forward a copy of such written notice to the credit reporting bureau;

(b) A licensee or employee in collecting or attempting to collect a claim may communicate the existence of a claim to a debtor's employer if the claim has been reduced to a judgment;

(c) A licensee or employee in collecting or attempting to collect a claim that has not been reduced to judgment, may communicate the existence of a claim to a debtor's employer if:

(i) The licensee or employee has notified or attempted to notify the debtor in writing at his last known address or place of employment concerning the claim and the debtor after a reasonable time has failed to pay the claim or has failed to agree to make payments on the claim in a manner acceptable to the licensee, and

(ii) The debtor has not in writing to the licensee disputed any part of the claim: PROVIDED, That the licensee or employee may only communicate the existence of a claim which has not been reduced to judgment to the debtor's employer once unless the debtor's employer has agreed to additional communications.

(d) A licensee may for the purpose of locating the debtor or locating assets of the debtor communicate the existence of a claim to any person who might reasonably be expected to have knowledge of the whereabouts of a debtor or the location of assets of the debtor if the claim is reduced to judgment, or if not reduced to judgment, when:

(i) The licensee or employee has notified or attempted to notify the debtor in writing at his last known address or last known place of employment concerning the claim and the debtor after a reasonable time has failed to pay the claim or has failed to agree to make payments on the claim in a manner acceptable to the licensee, and

(ii) The debtor has not in writing disputed any part of the claim.

(e) A licensee may communicate the existence of a claim to its customers or clients if the claim is reduced to judgment, or if not reduced to judgment, when:

(i) The licensee has notified or attempted to notify the debtor in writing at his last known address or last known place of employment concerning the claim and the debtor after a reasonable time has failed to pay the claim or has failed to agree to make payments on the claim in a manner acceptable to the licensee, and

(ii) The debtor has not in writing disputed any part of the claim.

(10) Threaten the debtor with impairment of his credit rating if a claim is not paid.

(11) Communicate with the debtor after notification in writing from an attorney representing such debtor that all further communications relative to a claim should be addressed to the attorney: PROVIDED, That if a licensee requests in writing information from an attorney regarding such claim and the attorney does not respond within a reasonable time, the licensee may communicate directly with the debtor until he or it again receives notification in writing that an attorney is representing the debtor.

(12) Communicate with a debtor or anyone else in such a manner as to harass, intimidate, threaten, or embarrass a debtor, including but not limited to communication at an unreasonable hour, with unreasonable frequency, by threats of force or violence, by threats of criminal prosecution, and by use of offensive language. A communication shall be presumed to have been made for the purposes of harassment if:

(a) It is made with a debtor or spouse in any form, manner, or place, more than three times in a single week;

(b) It is made with a debtor at his or her place of employment more than one time in a single week;

(13) Communicate with the debtor through use of forms or instruments that simulate the form or appearance of judicial process, the form or appearance of government documents, or the simulation of a form or appearance of a telegraphic or emergency message.

(14) Communicate with the debtor and represent or imply that the existing obligation of the debtor may be or has been increased by the addition of attorney fees, investigation fees, service fees, or any other fees or charges when in fact such fees or charges may not legally be added to the existing obligation of such debtor.

(15) Threaten to take any action against the debtor which the licensee cannot legally take at the time the threat is made.

(16) Send any telegram or make any telephone calls to a debtor or concerning a debt or for the purpose of demanding payment of a claim or seeking information about a debtor, for which the charges are payable by the addressee or by the person to whom the call is made.

(17) In any manner convey the impression that the licensee is vouched for, bonded to or by, or is an instrumentality of the state of Washington or any agency or department thereof.

(18) Collect or attempt to collect in addition to the principal amount of a claim any sum other than allowable interest, collection costs or handling fees expressly authorized by statute, and, in the case of suit, attorney's fees and taxable court costs.

(19) Procure from a debtor or collect or attempt to collect on any written note, contract, stipulation, promise or acknowledgment under which a debtor may be required to pay any sum other than principal, allowable interest, and, in the case of suit, attorney's fees and taxable court costs.

(20) Upon notification by a victim, as defined in section 12 of this act, that a police report has been filed regarding the victim's claim, and upon receipt of a copy of the report indicating that the victim's checkbook or other series of preprinted written instruments has been stolen, fail to accept one single writing from the victim that identifies the numbers of the checks, the bank, and account number, that disputes creditors' claims for the identified checks or written instruments and that includes a copy of the victim's driver's license or other document containing the victim's signature which was executed prior to the date of claim identified in the police report. If more than one collection agency is attempting collection on individual checks or written instruments that are part of the series, each collection agency may request a single writing from the victim that disputes creditors' claims for the entire checkbook or series. Once a single writing has been received, the collection agency must not, except in the context of a judicial or administrative proceeding, contact the victim orally within the one hundred eighty-day period following receipt of the writing to require additional proof, explanation, or evidence except in a court of law from the victim disputing creditors' claims regarding the enumerated checks or other written instruments in the same series or lot and must consider the single writing as a dispute to all creditors' claims arising from use of the enumerated checks or other series of instruments.

Sec. 15. RCW 9.35.010 and 1999 c 368 s 2 are each amended to read as follows:

(1) No person may obtain or attempt to obtain, or cause to be disclosed or attempt to cause to be disclosed to any person, financial information from a financial information repository:

(a) By knowingly making a false, fictitious, or fraudulent statement or representation to an officer, employee, or agent of a financial information repository with the intent to deceive the officer, employee, or agent into relying on that statement or representation for purposes of releasing the financial information;

(b) By knowingly making a false, fictitious, or fraudulent statement or representation to a customer of a financial information repository with the intent to deceive the customer into releasing financial information or authorizing the release of such information;

(c) By knowingly providing any document to an officer, employee, or agent of a financial information repository, knowing that the document is forged, counterfeit, lost, or stolen; was fraudulently obtained; or contains a false, fictitious, or fraudulent statement or representation, if the document is provided with the intent to deceive the officer, employee, or agent to release the financial information.

(2) No person may request another person to obtain financial information from a financial information repository and knows or should have known that the person will obtain or attempt to obtain the information from the financial institution repository in any manner described in subsection (1) of this section.

(3) ((~~As used in this section, unless the context clearly requires otherwise:~~

(a) "Financial information" means, to the extent it is nonpublic, any of the following information identifiable to the individual that concerns the amount and conditions of an individual's assets, liabilities, or credit:

~~(i) Account numbers and balances;~~

~~(ii) Transactional information concerning any account; and~~

(iii) Codes, passwords, social security numbers, tax identification numbers, driver's license or permit numbers, state identicard numbers issued by the department of licensing, and other information held for the purpose of account access or transaction initiation.

(b) "Financial information repository" means any person engaged in the business of providing services to customers who have a credit, deposit, trust, stock, or other financial account or relationship with the person.

~~(c) "Person" means an individual, partnership, corporation, or association.~~

~~(4)~~)) No provision of this section shall be construed so as to prevent any action by a law enforcement agency, or any officer, employee, or agent of such agency, or any action of an agent of the financial information repository when working in conjunction with a law enforcement agency.

((~~(5)~~)) (4) This section does not apply to:

(a) Efforts by the financial information repository to test security procedures or systems of the financial institution repository for maintaining the confidentiality of customer information;

(b) Investigation of alleged employee misconduct or negligence; or

(c) Efforts to recover financial or personal information of the financial institution obtained or received by another person in any manner described in subsection (1) or (2) of this section.

((~~(6)~~)) (5) Violation of this section is a class C felony.

((~~(7)~~)) (6) A person ((~~that [who]~~)) who violates this section is liable for five hundred dollars or actual damages, whichever is greater, and reasonable attorneys' fees. If the person violating this section is a business that repeatedly violates this section, that person also violates the Consumer Protection Act, chapter 19.86 RCW.

Sec. 16. RCW 9.35.020 and 1999 c 368 s 3 are each amended to read as follows:

(1) No person may knowingly use or knowingly transfer a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity harming or intending to harm the person whose identity is used, or for committing any felony.

(2) ((For purposes of this section, "means of identification" means any information or item that is not describing finances or credit but is personal to or identifiable with any individual or other person, including any current or former name of the person, telephone number, and electronic address or identifier of the individual or any member of his or her family, including the ancestor of such person; any information relating to a change in name, address, telephone number, or electronic address or identifier of the individual or his or her family; any social security, driver's license, or tax identification number of the individual or any member of his or her family; and other information which could be used to identify the person, including unique biometric data.

~~(3)~~)) Violation of this section is a class C felony.

((~~(4)~~)) (3) A person ((~~that [who]~~)) who violates this section is liable for five hundred dollars or actual damages, including costs to repair the person's credit record, whichever is greater, and reasonable attorneys' fees. If the person violating this section is a business that repeatedly violates this section, that person also violates the Consumer Protection Act, chapter 19.86 RCW.

NEW SECTION. Sec. 17. Sections 1 through 11 of this act constitute a new chapter in Title 19 RCW.

NEW SECTION. Sec. 18. Section captions used in sections 1 through 13 of this act are not part of the law.

NEW SECTION. Sec. 19. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 20. Sections 1 through 11 and 17 through 20 of this act take effect June 1, 2001."

SSB 6513 - S AMD - 166

By Senators Prentice, Hale, Winsley, Gardner and Shin

ADOPTED 2/15/00

On page 1, line 3 of the title, after "information;" strike the remainder of the title and insert "amending RCW 19.16.250, 9.35.010, and 9.35.020; adding new sections to chapter 9.35 RCW; adding a new chapter to Title 19 RCW; creating a new section; prescribing penalties; and providing an effective date."