[atlas:bill]

AN ACT Relating to protecting privacy by restricting the use of social security account numbers; amending RCW 26.23.150; adding a new section to chapter 19.182 RCW; adding a new chapter to Title 19 RCW; creating a new section; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature declares:

(1) The social security account number was first intended for use solely by the federal government as a way of tracking the earnings of an individual in order to determine the amount of social security taxes to credit to the individual's account;

(2) Over the years, the use of the social security account number by both the public and private sectors for other purposes has increased;

(3) The increased use of the social security account number for other purposes has led to an increase of stolen and misappropriated social security account numbers, identity theft, and fraud;

(4) Although federal law provides some limits on the use of the social security account number by government agencies, the federal law does not prohibit private companies from asking for a person's social security account number;

(5) Federal laws provide little protection against private companies misusing a person's social security account number;

(6) With today's technology, the use of the social security account number as a personal identifier is less necessary than in the past;

(7) There are other identification methods available, such as using an algorithm to digitize a person's name or other identifying information, or issuing personal identifying numbers known only to the individual and company;

(8) It is the intent of chapter . . ., Laws of 1999 (this act) to protect the privacy of the citizens of Washington by restricting the use of social security account numbers by companies, government agencies, and organizations that use individual's social security account numbers for numerical identifiers, account numbers, and other recordkeeping purposes.

NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Person" means natural persons, government agencies, corporations, trusts, unincorporated associations, partnerships, and any other commercial entity, including financial institutions and consumer reporting agencies, located or doing business in the state of Washington.

(2) "Financial institution" means a bank, trust company, mutual savings bank, savings and loan association, or credit union authorized by federal or state law to accept deposits in this state.

(3) "Consumer reporting agency" means an agency as defined in RCW 19.182.010.

(4) "Informed written consent" means written consent given after being informed whether providing a social security account number is voluntary or mandatory, what statutory authority requires providing the number, and how the number will be used.

NEW SECTION. Sec. 3. Except as provided in sections 5 and 6 of this act, no person may utilize or retain an individual's social security account number, or any intentional derivative of that number, for purposes of identification of the individual.

NEW SECTION. Sec. 4. Except as provided in sections 5 and 6 of this act, no person may buy, sell, trade, offer for trade or sale, or convey in any manner an individual's social security account number, or any intentional derivative of that number.

NEW SECTION. Sec. 5. (1) A person may use an individual's social security account number for credit data collection, credit data maintenance, credit data reporting, or, in the case of financial institutions, for conducting financial transactions explicitly authorized by law, upon obtaining the informed written consent of the individual.

(2) A consumer reporting agency may not furnish or provide any person with a consumer report that contains an individual's social security account number without the informed written consent of the individual.

NEW SECTION. Sec. 6. Nothing in this chapter prohibits the lawful use of social security account numbers by financial institutions, employers, and state and local government agencies where the use of social security account numbers is explicitly required by state or federal law.

NEW SECTION. Sec. 7. (1) Any person aggrieved by any act of any person in violation of this chapter may bring a civil action in superior court to recover:

(a) Such preliminary and equitable relief as the court determines; and

(b)(i) The greater of any actual damages or twenty-five thousand dollars; or

(ii) Five hundred thousand dollars if violations have occurred with frequency sufficient to constitute a general business practice.

(2) In a civil action brought under this section in which the aggrieved individual has substantially prevailed, the court may assess against the respondent reasonable attorneys' fees and other costs.

(3) No action may be commenced under this section more than three years after the date on which the violation was or should reasonably have been discovered by the aggrieved individual.

NEW SECTION. Sec. 8. A new section is added to chapter 19.182 RCW to read as follows:

A consumer reporting agency may not furnish or provide any person with a consumer report that contains an individual's social security account number without the informed written consent of the individual.

Sec. 9. RCW 26.23.150 and 1998 c 160 s 7 are each amended to read as follows:

(1) In order to assist in child support enforcement as required by federal law, all applicants for an original, replacement, or renewal of a professional license, driver's license, occupational license, or recreational license must furnish the licensing agency with the applicant's social security number, which shall be recorded on the application. The licensing agencies collecting social security numbers shall not display the social security number on the license document. Social security numbers collected by licensing agencies shall not be disclosed except as required by state or federal law or under RCW 26.23.120. Licensing agencies may not request or collect social security numbers from applicants for original, replacement, or renewal of professional licenses, drivers' licenses, occupational licenses, or recreational licenses until the date specified under sections 5536 and 5557 of the federal balanced budget act of 1997 or if a waiver under subsection (2) of this section has been granted.

(2) Before October 1, 2000, and after studying the effectiveness and efficiency of the state's use of a procedure different from the federal mandate, the governor, through the department of social and health services, shall seek a waiver of the federal mandate to record social security account numbers on applications for professional, drivers', occupational, and recreational licenses.

NEW SECTION. Sec. 10. The office of the administrator for the courts shall study the options and feasibility of operating the judicial information system without, and a case tracking and identification system that does not require, the use and retention of individuals' social security account numbers. The office of the administrator for the courts must submit a report to the legislature by January 1, 2000.

NEW SECTION. Sec. 11. Sections 1 through 7 of this act constitute a new chapter in Title 19 RCW.

NEW SECTION. Sec. 12. Sections 2 through 8 of this act take effect January 1, 2002.

NEW SECTION. Sec. 13. Section 9 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

NEW SECTION. Sec. 14. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.