SENATE 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.

Senate Committee on Energy & Utilities

Senate Hearing Date(s):January 19, 1990; January 25, 1990; January 26, 1990

Majority Report:  That Substitute Senate Bill No. 6330 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Benitz, Chairman; Bluechel, Vice Chairman; Metcalf, Nelson, Owen, Stratton, Sutherland.

Senate Staff:David Monthie (786-7198)

                  March 3, 1990

House Committe on Judiciary

AS PASSED SENATE, FEBRUARY 9, 1990

BACKGROUND:

The Consumer Protection Act permits the Attorney General to obtain information relevant to an 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 information 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 process is not applicable to criminal prosecutions.

The value of this investigative tool has sometimes been diminished by the disclosure of the receipt of a CID to third parties.  For example, CIDs have been sent to telephone companies to obtain phone records for persons believed to be involved in unlawful activity; some telephone companies have felt obligated to inform the customer of the demand from the Attorney General, thereby possibly compromising the investigation.  Similarly, an individual or company directly receiving a CID may be able to alert others with whom they are 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, and in the absence of a superior court order to the contrary, 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.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Clif Finch, Assn. of Washington Business; Mike Grant, Jim Beaulaurier, Attorney General's Office (pro); Jerry Sheehan, ACLU; Dale Vincent, U.S. West

HOUSE AMENDMENT:

A bank, trust company, mutual savings bank, credit union, or savings and loan association organized under federal or state law is not subject to the provisions making it a misdemeanor to disclose the existence or contents of a CID.