BILL REQ. #:  H-0509.2 

Read first time 02/12/2007.   Referred to Committee on Commerce & Labor.

     AN ACT Relating to social security account numbers; 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   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Social security account number" means the number issued by the federal social security administration and any number derived from the number. "Social security account number" does not include any number that has been encrypted.
     (2) "Person" means an individual, a firm, a partnership, an association, a corporation, or other entity. "Person" does not include the state or any political subdivision of the state.

NEW SECTION.  Sec. 2   (1) No person may do any of the following:
     (a) Intentionally communicate to the general public or otherwise make available to the general public in any manner an individual's social security account number. This does not apply to an individual intentionally communicating to the general public or otherwise making available to the general public his or her social security account number;
     (b) Print an individual's social security account number on any card or tag required for the individual to access products, services, or benefits provided by the person;
     (c) Require an individual to transmit his or her social security account number over the internet, unless the connection is secure or the social security account number is encrypted;
     (d) Require an individual to use his or her social security account number to access an internet web site, unless a password or unique personal identification number or other authentication device is also required to access the internet web site; and
     (e) Print an individual's social security account number on any materials that are mailed to the individual, unless state or federal law requires the social security account number to be on the document to be mailed. However, social security account numbers may be included in applications and forms sent by mail, including documents sent as part of an application or enrollment process, or to establish, amend, or terminate an account, contract, or policy, or to confirm the accuracy of the social security account number. A social security account number that is permitted to be mailed under this section may not be printed, in whole or part, on a postcard or other mailer not requiring an envelope, or visible on the envelope or without the envelope having been opened.
     (2) This section does not prevent the collection, use, or release of a social security account number as required by state or federal law, the use of a social security account number for internal verification, fraud investigation, or administrative purposes, or for any business function specifically authorized by 15 U.S.C. Sec. 6802.
     (3) Any person having possession of the social security account number of any individual shall, to the extent that the number is maintained for the conduct of business or trade, take reasonable measures to:
     (a) Ensure that no officer or employee has access to the number for any purpose other than for a legitimate or necessary purpose related to the conduct of the business or trade; and
     (b) Provide safeguards necessary or appropriate to preclude unauthorized access to the social security account number and to protect the confidentiality of the number.
     (4) Compliance with the requirements of chapter 19.215 RCW may demonstrate a good faith effort to comply with the provisions of subsection (3) of this section that apply to the disposal of social security account numbers.
     (5) Any waiver of the provisions of this section is contrary to public policy, and is void and unenforceable.

NEW SECTION.  Sec. 3   (1)(a) Violations of this chapter are punishable by a fine of not more than one thousand dollars for each violation and not more than one hundred thousand dollars for multiple violations resulting from a single act or incident. This does not apply to fines under (b) of this subsection.
     (b) If a person has been fined under (a) of this subsection, any subsequent violation is punishable by a fine of not more than one thousand dollars for each violation and not more than one hundred thousand dollars for multiple violations resulting from a single act or incident.
     (2) The attorney general may bring an action to enforce compliance with this chapter.
     (3) The remedies and penalties in this section are in addition to any other penalties and remedies available to any person.

NEW SECTION.  Sec. 4   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.

NEW SECTION.  Sec. 5   Sections 1 through 4 of this act constitute a new chapter in Title 19 RCW.