WSR 98-22-113

EXPEDITED ADOPTION

SECRETARY OF STATE

[Filed November 4, 1998, 11:46 a.m.]

Title of Rule: Washington Electronic Authentication Act, chapter 19.34 RCW.

Purpose: Changes and clarification to the Washington Electronic Authentication Act, chapter 19.34 RCW.

Other Identifying Information: Amending WAC 434-180-265.

Statutory Authority for Adoption: Chapter 19.34 RCW, including RCW 19.34.030, 19.34.040, 19.34.100, 19.34.400, 19.34.500.

Statute Being Implemented: Chapter 19.34 RCW.

Summary: Amending WAC 434-180-265 to provide administrative notice and procedures for the imposition of civil penalties.

Reasons Supporting Proposal: To clarify the process used to impose civil penalties.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: David Billeter, 505 East Union, Olympia, (360) 753-2524.

Name of Proponent: Office of the Secretary of State, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: The rule will clarify the administrative steps to be followed by the agency and certification authority when the secretary exercises his/her right to impose a civil penalty for a violation of chapter 19.34 RCW as provided by RCW 19.34.120. This rule should make the administrative process more efficient and easier for participants to understand.

Proposal Changes the Following Existing Rules: This is an amendment to WAC 434-180-265. Changes are as described above.

NOTICE

THIS RULE IS BEING PROPOSED TO BE ADOPTED USING AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS RULE BEING ADOPTED USING THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Hans Dettling, Corporations Division, Office of the Secretary of State, 505 East Union, P.O. Box 40234, Olympia, WA 98504-0234, phone 586-0393, fax 664-8781, TDD 753-1485, AND RECEIVED BY December 18, 1998.

November 4, 1998

Tracy Guerin

Deputy Secretary of State

AMENDATORY SECTION (Amending WSR 97-24-053, filed 11/26/97, effective 12/27/97)

WAC 434-180-265  Civil penalties. The secretary may, by order, impose and collect a civil monetary penalty against a licensed certification authority for a violation of chapter 19.34 RCW as provided by RCW 19.34.120.

(1) Penalties imposed under this section shall not exceed ten thousand dollars per incident, or ninety percent of the recommended reliance limit of a material certificate, whichever is less. In case of a violation continuing for more than one day, each day is considered a separate incident. In the case of a state agency authorized by law to become a licensed certification authority, the sole penalty imposed pursuant to this section shall consist of specific findings of noncompliance and an order requiring compliance with this chapter and the rules of the Secretary. Any penalty imposed pursuant to this chapter and chapter 34.05 RCW shall be enforceable in the superior court.

(2) In assessing penalties under this section, the Secretary shall:

(a) Issue to the licensed certification authority a Notice of Apparent Non-Compliance, specifying the provisions of statue or rule with which the certification authority is not in compliance and the range of possible sanctions.

(b) Specify a time period of not less than thirty days during which the certification authority may respond in writing to the Notice of Apparent Non-Compliance;

(c) If the certification authority does not respond in writing within the specified period, or obtain a written extension of that period, then the Secretary may impose an order consistent with the notice, subject to review pursuant to WAC 434-180-500;

(d) If the certification authority does respond in writing:

(i) If the Secretary deems the response to satisfactorily demonstrate compliance with the provisions referenced in the notice, then the Secretary shall terminate this process without imposing any penalty;

(ii) If the Secretary does not deem the response satisfactory, then the Secretary may either:

(A) Issue a new or revised notice pursuant to subsection (2)(a) above; or

(B) Impose an order consistent with the notice, subject to review pursuant to WAC 434-180-500.

[Statutory Authority: RCW 19.34.030, 19.34.040, 19.34.100, 19.34.111 and 19.34.400. 97-24-053, § 434-180-265, filed 11/26/97, effective 12/27/97.]

Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.