The secretary shall:

       (1)(a) Consult with relevant qualified professionals to develop a set of minimum guidelines to be used for identifying all children who are in a state-assisted support system, whether at-home or out-of-home, who are likely to need long-term care or assistance, because they face physical, emotional, medical, mental, or other long-term challenges;

       (b) The guidelines must, at a minimum, consider the following criteria for identifying children in need of long-term care or assistance:

       (i) Placement within the foster care system for two years or more;

       (ii) Multiple foster care placements;

       (iii) Repeated unsuccessful efforts to be placed with a permanent adoptive family;

       (iv) Chronic behavioral or educational problems;

       (v) Repetitive criminal acts or offenses;

       (vi) Failure to comply with court-ordered disciplinary actions and other imposed guidelines of behavior, including drug and alcohol rehabilitation; and

       (vii) Chronic physical, emotional, medical, mental, or other similar conditions necessitating long-term care or assistance;

       (2) Develop programs that are necessary for the long-term care of children and youth that are identified for the purposes of this section. Programs must: (a) Effectively address the educational, physical, emotional, mental, and medical needs of children and youth; and (b) incorporate an array of family support options, to individual needs and choices of the child and family. The programs must be ready for implementation by January 1, 1995;

       (3) Conduct an evaluation of all children currently within the foster care agency caseload to identify those children who meet the criteria set forth in this section. The evaluation shall be completed by January 1, 1994. All children entering the foster care system after January 1, 1994, must be evaluated for identification of long-term needs within thirty days of placement;

       (4) By region, report to the legislature on the following using aggregate data every six months beginning December 31, 2000:

       (a) The number of children evaluated during the first thirty days of placement as required in subsection (3) of this section;

       (b) The tool or tools used to evaluate children, including the content of the tool and the method by which the tool was validated;

       (c) The findings from the evaluation regarding the children's needs;

       (d) How the department used the results of the evaluation to provide services to the foster child to meet his or her needs; and

       (e) Whether and how the evaluation results assisted the department in providing appropriate services to the child, matching the child with an appropriate care provider early on in the child's placement and achieving the child's permanency plan in a timely fashion.

       (5) Each region of the department shall make the appropriate number of referrals to the foster care assessment program to ensure that the services offered by the program are used to the extent funded pursuant to the department's contract with the program. The department shall report to the legislature by November 30, 2000, on the number of referrals, by region, to the foster care assessment program. If the regions are not referring an adequate number of cases to the program, the department shall include in its report an explanation of what action it is or has taken to ensure that the referrals are adequate.

       (6) The department shall report to the legislature by December 15, 2000, on how it will use the foster care assessment program model to assess children as they enter out-of-home care.

       (7) The department is to accomplish the tasks listed in subsections (4) through (6) of this section within existing resources.

       (8) Study and develop a comprehensive plan for the evaluation and identification of all children and youth in need of long-term care or assistance, including, but not limited to, the mentally ill, developmentally disabled, medically fragile, seriously emotionally or behaviorally disabled, and physically impaired;

       (((5))) (9) Study and develop a plan for the children and youth in need of long-term care or assistance to ensure the coordination of services between the department's divisions and between other state agencies who are involved with the child or youth;

       (((6))) (10) Study and develop guidelines for transitional services, between long-term care programs, based on the person's age or mental, physical, emotional, or medical condition; and

       (((7))) (11) Study and develop a statutory proposal for the emancipation of minors."

MOTIONS

      On motion of Senator Long, the following title amendment was adopted:

       On page 1, line 2 of the title, after "needs;" strike the remainder of the title and insert "and amending RCW 74.14A.050."

      On motion of Senator Long, the rules were suspended, Engrossed Senate Bill No. 6555 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 6555.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 6555 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 1; Excused, 1.

     Voting yea: Senators Bauer, Benton, Brown, Costa, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 47.

     Absent: Senator Deccio - 1.

     Excused: Senator Sellar - 1.

      ENGROSSED SENATE BILL NO. 6555, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      On motion of Senator Eide, Senator Hargrove was excused.

SECOND READING

      SENATE BILL NO. 6743, by Senators Costa, Hargrove, Long and Winsley

Adding a limitation on sealing of juvenile offender records.

      The bill was read the second time.

MOTION

      On motion of Senator Costa, the rules were suspended, Senate Bill No. 6743 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 6743.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Bill No. 6743 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

     Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 46.

     Absent: Senator Kohl-Welles - 1.

     Excused: Senators Hargrove and Sellar - 2.

      SENATE BILL NO. 6743, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      On motion of Senator Eide, Senator Loveland was excused.

SECOND READING

      SENATE BILL NO. 6373, by Senators Gardner, T. Sheldon, Prentice, Rasmussen, Winsley, Hale, Deccio and Shin

Clarifying promotional contests of chance.

MOTIONS

      On motion of Senator Prentice, Substitute Senate Bill No. 6373 was substituted for Senate Bill No. 6373 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Prentice, the rules were suspended, Substitute Senate Bill No. 6373 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6373.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6373 and the bill passed the Senate by the following vote: Yeas, 43; Nays, 3; Absent, 0; Excused, 3.

     Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Thibaudeau, West, Winsley, Wojahn and Zarelli - 43.

     Voting nay: Senators Haugen, Long and Swecker - 3.

     Excused: Senators Hargrove, Loveland and Sellar - 3.

      SUBSTITUTE SENATE BILL NO. 6373, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      On motion of Senator Rasmussen, the following resolution was adopted:

SENATE RESOLUTION 2000-8713

By Senator Rasmussen, Swecker, Franklin, Spanel, Honeyford, Sheldon, B., Goings, and Kohl-Welles

      WHEREAS, The 4-H Youth Development Program has helped young people in Washington develop useful “life skills” since it was established in 1914; and

      WHEREAS, The program centers on teaching young people to become productive members of society by fostering self-esteem, and communication and decision-making skills; and

      WHEREAS, 83,000 young people throughout Washington participated in 4-H Youth Development Programs in 1999; and

      WHEREAS, These programs help participants learn about a wide variety of subjects including science, family living and applied arts; and

      WHEREAS, More than 7,100 4-H youth raising livestock statewide are participating in an educational program learning how to produce high quality animals in an ethical manner;

      WHEREAS, In addition to working with traditional community clubs, the

programs reach youth through urban groups, special interest groups, nutrition programs, school enrichment, school-age care providers, camping, and interagency learning experiences;

      WHEREAS, The 4-H Youth Development Program promotes volunteer service by

enlisting more than 10,500 volunteers statewide, who donate an average two hundred hours of their time during the year; and

      WHEREAS, In 1998, the program achieved its goal of reaching a more diverse audience as twenty percent of participants came from ethnic minority groups; and

      WHEREAS, More than three hundred 4-H members from around the state are currently visiting the State Capitol as part of a statewide education program titled “4-H Know Your Government”;

      NOW, THEREFORE, BE IT RESOLVED, That the members of the Washington State Senate recognize the 4-H Youth Development Program for its many contributions to the youth of Washington and the betterment of our communities; and

      BE IT FURTHER RESOLVED, That a copy of this resolution be immediately transmitted by the Secretary of the Senate to Carol Beckman, the state program coordinator for the 4-H Youth Development Program.

      Senators Rasmussen and Morton spoke to Senate Resolution 2000-8713.

INTRODUCTION OF SPECIAL GUESTS

      The President welcomed and introduced the 4-H members who were seated in the gallery. Over three hundred 4-H members from around the state are visiting the state capitol learning about their state government.

MOTION

      At 11:28 a.m., on motion of Senator Betti Sheldon, the Senate was declared to be at ease.

      The Senate was called to order at 1:05 p.m. by President Owen.

      There being no objection, the President returned the Senate to the sixth order of business.

SECOND READING

      SENATE JOINT MEMORIAL NO. 8022, by Senators Rasmussen, Swecker, Bauer, Roach, Goings, Benton, B. Sheldon, Snyder, Hale, Oke, Gardner, Johnson, Long, McAuliffe, Deccio, Winsley, Zarelli, Kohl-Welles, T. Sheldon and Haugen

Recognizing America's World War II veterans.

      The joint memorial was read the second time.

MOTION

      On motion of Senator Patterson, the rules were suspended, Senate Joint Memorial No. 8022 was advanced to third reading, the second reading considered the third and the joint memorial was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Joint Memorial No. 8022.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Joint Memorial No. 8022 and the joint memorial passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 5; Excused, 1.

     Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kohl-Welles, Long, Loveland, McAuliffe, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 43.

     Absent: Senators Eide, Finkbeiner, Kline, McCaslin and Stevens - 5.

     Excused: Senator Sellar - 1.

      SENATE JOINT MEMORIAL NO. 8022, having received the constitutional majority, was declared passed.

MOTION

      On motion of Senator Honeyford, Senator McCaslin was excused.

SECOND READING

      SENATE BILL NO. 6429, by Senators Patterson and Horn (by request of Secretary of State Munro)

Changing statutes that effect the productivity board.

      The bill was read the second time.

MOTION

      On motion of Senator Patterson, the rules were suspended, Senate Bill No. 6429 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 6429.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Bill No. 6429 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

     Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 47.

     Excused: Senators McCaslin and Sellar - 2.

      SENATE BILL NO. 6429, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SENATE BILL NO. 6255, by Senators Rasmussen, Prentice, Morton, Franklin, Heavey, Brown and Goings

Prescribing penalties for unlawful possession and storage of anhydrous ammonia.

MOTIONS

      On motion of Senator Rasmussen, Second Substitute Senate Bill No. 6255 was substituted for Senate Bill No. 6255 and the second substitute bill was placed on second reading and read the second time.

      On motion of Senator Rasmussen, the rules were suspended, Second Substitute Senate Bill No. 6255 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Second Substitute Senate Bill No. 6255.

ROLL CALL

      The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 6255 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

     Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 48.

     Excused: Senator Sellar - 1.

      SECOND SUBSTITUTE SENATE BILL NO. 6255, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SENATE BILL NO. 6513, by Senators Prentice, McCaslin, Kline, Gardner, Winsley, Kohl-Welles, Spanel and Costa (by request of Attorney General Gregoire)

Protecting privacy of personal information in commercial transactions.

MOTIONS

      On motion of Senator Prentice, Substitute Senate Bill No. 6513 was substituted for Senate Bill No. 6513 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Prentice, the following striking amendment by Senators Prentice, Hale, Winsley, Gardner and Shin was adopted:

       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

       (c) At the time when a new customer enters into a business relationship with the information custodian.

       (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

       (c) A specific description of the purpose for which the disclosure of information will be made.

       (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;

       (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 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

       (c) To safeguard the information from loss, misuse, theft, unauthorized access, disclosure, defacement, or alteration.

       (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: