[atlas:bill]

AN ACT Relating to protecting privacy by restricting the use of social security account numbers by financial institutions; adding a new chapter to Title 19 RCW; and prescribing penalties.

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

NEW SECTION. Sec. 1. INTENT. (1) The legislature declares that:

(a) The social security account number was first intended for use solely by the federal government as a way of tracking the earnings of an individual in order to determine the amount of social security taxes to credit to the individual's account;

(b) Over the years, the use of the social security account number by both the public and private sectors for other purposes has increased;

(c) The increased use of the social security account number for other purposes has led to an increase of stolen and misappropriated social security account numbers, identity theft, and fraud;

(d) Although federal law provides some limits on the use of the social security account number by government agencies, the federal law does not prohibit private companies from asking for a person's social security account number;

(e) Federal laws provide little protection against private companies misusing a person's social security account number;

(f) With today's technology, the use of the social security account number as a personal identifier is less necessary than in the past; and

(g) There are other identification methods available, such as using an algorithm to digitize a person's name or other identifying information, or issuing personal identifying numbers known only to the individual and company.

(2) The legislature intends to protect the privacy of the citizens of Washington by requiring financial institutions to provide a person with the option of using a number other than the person's social security account number for purposes of numerical identification and recordkeeping.

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

(1) "Customer" means a natural person who has an account or who regularly or repeatedly engages in transactions with a financial institution.

(2) "Financial institution" means a bank, trust company, mutual savings bank, savings and loan association, or credit union authorized by federal or state law to accept deposits in this state.

NEW SECTION. Sec. 3. MANDATORY USE OF SOCIAL SECURITY ACCOUNT NUMBER PROHIBITED. (1) A financial institution shall not require a customer to utilize his or her social security account number as a means of personal identification for the purpose of engaging in transactions, accessing accounts, obtaining account information, obtaining services, or otherwise conducting business with the financial institution.

(2) A financial institution shall not require that, as a condition precedent to opening an account, a prospective customer consent to the use of his or her social security account number for the purpose of identification to the financial institution.

(3) A financial institution may utilize a customer's social security account number as a means of personal identification only if the customer consents in writing to such use and the customer is given the option of choosing a different numerical identifier as a means of identifying himself or herself to the financial institution.

NEW SECTION. Sec. 4. CONFORMITY WITH OTHER STATE OR FEDERAL LAW. This chapter does not prohibit the lawful use of social security account numbers by financial institutions when the use of social security account numbers is explicitly required by state or federal law.

NEW SECTION. Sec. 5. REMEDIES FOR NONCOMPLIANCE. (1) A customer may bring a civil action for damages, injunctive relief, or both against a financial institution that has failed to comply with this chapter. If the violation is inadvertent, the individual may recover his or her actual damages. If the violation is due to negligence, damages are to be in the amount of five hundred dollars, or actual damages, whichever is greater, as well as the costs of the suit, including attorneys' fees. Upon a showing that the violation of this chapter was willful, 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, as well as the costs of the suit, including attorneys' fees.

(2) The attorney general may bring a civil action for damages, injunctive relief, or both against a financial institution that has failed to comply with this chapter. Damages are the same as those for individual plaintiffs under subsection (1) of this section.

(3) 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 not reasonable in relation to the development and preservation of business and 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. Remedies under chapter 19.86 RCW are available in addition to the remedies under this chapter.

NEW SECTION. Sec. 6. Captions used in this act are not any part of the law.

NEW SECTION. Sec. 7. Sections 1 through 6 of this act constitute a new chapter in Title 19 RCW.