HOUSE BILL REPORT

ESSB 6330

BYSenate Committee on Energy & Utilities (originally sponsored by Senators Benitz and Rasmussen; by request of Attorney General)

Amending consumer protection provisions.

House Committe on Judiciary

Majority Report:  Do pass as amended.  (18)

      Signed by Representatives Appelwick, Chair; Crane, Vice Chair; Padden, Ranking Republican Member; Belcher, Brough, Dellwo, Forner, Hargrove, Inslee, P. King, R. Meyers, Moyer, H. Myers, Schmidt, Scott, D. Sommers, Tate and Wineberry.

House Staff:Bill Perry (786-7123)

AS PASSED HOUSE MARCH 2, 1990

BACKGROUND:

The Consumer Protection Act permits the Attorney General to obtain information relevant to a civil investigation of possible violations through the use of a "civil investigative demand" (CID).  A CID is an order from the Attorney General to a person believed to have such relevant information.  A CID may order the person to produce documents or records, answer written questions, or submit to oral questioning.  The information obtained from the CID may not be disclosed by the Attorney General's office to any other person, unless permitted by a court order.

The value of a CID has sometimes been diminished by disclosure to third parties.  For example, when CID's have been sent to telephone companies to obtain phone records for persons believed to be involved in unlawful activity, some telephone companies have felt themselves obligated to inform the customer of the demand from the Attorney General. In addition, an individual or company directly receiving a CID may be able to alert others with whom it is involved in possible unlawful activity.

SUMMARY:

The Attorney General may order nondisclosure of a civil investigative demand if permitted to do so by prior court order.

If a CID specifically prohibits the disclosure of its existence or contents to third parties, a recipient of the demand who makes such a disclosure commits a misdemeanor.  An exception is made for disclosure to counsel for the recipient or as otherwise required by law.  Banks, credit unions and savings and loans are exempted from the criminal penalties for disclosure.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Jim Beaulaurier, Attorney General's Office.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    Investigations currently are sometimes compromised by early disclosure of CID's.

House Committee - Testimony Against:      None.