Washington Business 2019 Legislative Review & Vote Record

2019 legislative review D-Seattle, and Second Substitute House Bill 1854, sponsored by Rep. Shelley Kloba, D-Kirkland, both dealt with protecting consumer data. 2SSB 5376 approached the issue by adopting most standards from the European Union (EU) General Data Protection Regulation (GDPR) privacy standards. One major concern was the threshold requirement. Any company with 100,000 transactions in a year would have been subject to the provisions of the bill. This would have required most business in the state to comply with the GDPR standards. 2SHB 1854 was amended to incorporate HB 2046 as well as much of California’s consumer privacy system. The concerns with the House version was scope and enforcement. The bill would apply to all business regardless of size. The House version sought to include a private right of action that could result in frivolous claims being brought against employers. AWB participated in the discussions with both sponsors and the governor’s office in an attempt to find a compromise. The negotiations failed to produce a bill that could pass both houses. In the end, AWB was opposed to the House Bill and was neutral regarding the Senate bill. HB 2046 increasing consumer data transparency Failed/AWB Opposed House Bill 2046, sponsored by Rep. Shelley Kloba, D-Kirkland, would have required processors of personal data to provide consumers with a privacy notice about their privacy and security practices. It also 12 association of washington business Rep. Mike Sells, D-Everett, is chair of the House Labor & Workforce Standards Committee. would have required processors that sell or otherwise monetize personal data to inform consumers and provide access to a record of each such agreement or transaction. It would have made a violation of this law a violation of the Consumer Protection Act, as well. Most of the provisions of this bill were incorporated into 2SHB 1854. AWB opposed this bill. new products. AWB was opposed to the bill. The companion bill was Senate Bill 5799, sponsored by Sen. Bob Hasegawa, D-Seattle. SHB 1342 Substitute House Bill 1071, sponsored by Rep. Shelley Kloba, D-Kirkland, expands the definition of “personal information” in the data breach notice laws and modifies data breach notice requirements. It shortens the required time to provide notice to affected consumers and the Attorney General from 45 days to 30 days. The largest concern for AWB was the notification timeline. After continued discussion with the Attorney General’s office, the original bill was changed to make a simultaneous reporting requirement as opposed to different timelines for reporting to the state and the consumer. AWB was neutral on the final legislation. The companion bill was Second Substitute Senate Bill 5064, sponsored by Sen. Joe Nguyen, D-White Center. fair servicing and repair Failed/AWB Opposed Substitute House Bill 1342, sponsored b y Re p. Z a c k H u d g i n s , D -Tu k w i l a , would have required digital electronic product manufacturers to make available information, parts, and tools to those who wanted to do independent repairs. It would have prohibited manufacturers from requiring the purchase of proprietary information or preventing specified functions related to independent repair. The bill raised significant privacy and security risks. It would further hamper innovation and could result in Washington State consumers being isolated from SHB 1071 protecting personal information Passed/AWB Neutral

Washington Business 2019 Legislative Review & Vote Record | Page 14