H4130.1 by Representative Hudgins — HB 2742 - H COMM AMD, Jurisdictional Scope

Summary

H4130.1 to HB 2742, by Representative Hudgins, is a COMM AMD by the Committee on Innovation, Technology & Economic Development. It strikes all of section 4 and inserts a new section 4 headed JURISDICTIONAL SCOPE, which states that the chapter applies to legal entities that conduct business in Washington or produce products or services that are targeted to residents of Washington. Its exemptions include state and local governments, municipal corporations, and legal entities that have fewer than ten employees and gross annual revenues of less than five million dollars, among other stated conditions. The EFFECT statement says the amendment removes from the jurisdictional scope section the thresholds that a business must meet in order to be subject to the bill.

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Full text

     2742 AMH ITED H4130.1

                                                 By Representative Hudgins

     HB 2742 - H COMM AMD
         By Committee on Innovation, Technology & Economic Development




1        On page 7, beginning on line 18, strike all of section 4 and
2    insert the following:


 3       "NEW SECTION.   Sec. 4.   JURISDICTIONAL SCOPE. (1) This chapter
 4   applies to legal entities that conduct business in Washington or
 5   produce products or services that are targeted to residents of
 6   Washington.
 7       (2) This chapter does not apply to:
 8       (a) State and local governments;
 9       (b) Municipal corporations;
10       (c) Legal entities that:
11       (i) Have fewer than ten employees;
12       (ii) Have gross annual revenues of less than five million
13   dollars;
14       (iii) Derive less than five percent of annual gross revenues from
15   the sale or monetization of personal data at fair market value;
16       (iv) Control or process personal data of fewer than twenty
17   thousand consumers; and
18       (v) Do not disclose or share personal data of consumers other
19   than as necessary for providing products or services requested by
20   consumers or for purposes of selling or monetizing personal data
21   within the limits set in (c)(iii) of this subsection.
22       (d) Information that meets the definition of:
23       (i) Protected health information for purposes of the federal
24   health insurance portability and accountability act of 1996 and
25   related regulations;
26       (ii) Health care information for purposes of chapter 70.02 RCW;
27       (iii) Patient identifying information for purposes of 42 C.F.R.
28   Part 2, established pursuant to 42 U.S.C. Sec. 290dd-2;
29       (iv) Identifiable private information for purposes of the federal
30   policy for the protection of human subjects, 45 C.F.R. Part 46, or
31   identifiable private information that is otherwise information

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 1   collected as part of human subjects research pursuant to the good
 2   clinical practice guidelines issued by the international council for
 3   harmonisation, or the protection of human subjects under 21 C.F.R.
 4   Parts 50 and 56;
 5       (v) Information and documents created specifically for, and
 6   collected and maintained by:
 7       (A) A quality improvement committee for purposes of RCW
 8   43.70.510, 70.230.080, or 70.41.200;
 9       (B) A peer review committee for purposes of RCW 4.24.250;
10       (C) A quality assurance committee for purposes of RCW 74.42.640
11   or 18.20.390;
12       (D) A hospital, as defined in RCW 43.70.056, for reporting of
13   health care-associated infections for purposes of RCW 43.70.056, a
14   notification of an incident for purposes of RCW 70.56.040(5), or
15   reports regarding adverse events for purposes of RCW 70.56.020(2)(b);
16       (vi) Information and documents created for purposes of the
17   federal health care quality improvement act of 1986, and related
18   regulations; or
19       (vii) Patient safety work product for purposes of 42 C.F.R. Part
20   3, established pursuant to 42 U.S.C. Sec. 299b-21 through 299b-26;
21       (e) Information originating from, and intermingled to be
22   indistinguishable with, information under (d) of this subsection that
23   is maintained by:
24       (i) A covered entity or business associate as defined by the
25   health insurance portability and accountability act of 1996 and
26   related regulations;
27       (ii) A health care facility or health care provider as defined in
28   RCW 70.02.010; or
29       (iii) A program or a qualified service organization as defined by
30   42 C.F.R. Part 2, established pursuant to 42 U.S.C. Sec. 290dd-2;
31       (f)   An   activity   involving   the   collection,   maintenance,
32   disclosure, sale, communication, or use of any personal information
33   bearing on a consumer's credit worthiness, credit standing, credit
34   capacity, character, general reputation, personal characteristics, or
35   mode of living by a consumer reporting agency, as defined in Title 15
36   U.S.C. Sec. 1681a(f), by a furnisher of information, as set forth in
37   Title 15 U.S.C. Sec. 1681s-2, who provides information for use in a
38   consumer report, as defined in Title 15 U.S.C. Sec. 1861a(d), and by
39   a user of a consumer report, as set forth in Title 15 U.S.C. Sec.
40   1681b.
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 1       Such activity involving the collection, maintenance, disclosure,
 2   sale, communication, or use of such information by that agency,
 3   furnisher, or user is subject to regulation under the fair credit
 4   reporting act, Title 15 U.S.C. Sec. 1681 et seq., and the information
 5   may not be used, communicated, disclosed, or sold except as
 6   authorized by the fair credit reporting act;
 7       (g) Personal data collected and maintained for purposes of
 8   chapter 43.71 RCW;
 9       (h) Personal data collected, processed, sold, or disclosed
10   pursuant to the federal Gramm-Leach-Bliley act (P.L. 106-102), and
11   implementing regulations, if the collection, processing, sale, or
12   disclosure is in compliance with that law;
13       (i) Personal data collected, processed, sold, or disclosed
14   pursuant to the federal driver's privacy protection act of 1994 (18
15   U.S.C. Sec. 2721 et seq.), if the collection, processing, sale, or
16   disclosure is in compliance with that law;
17       (j) Controllers that are in compliance with the verifiable
18   parental consent mechanisms under the children's online privacy
19   protection act, Title 15 U.S.C. Sec. 6501 through 6506 and its
20   implementing regulations. Controllers shall be deemed compliant with
21   any obligation to obtain parental consent under this chapter;
22       (k) Personal data regulated by the federal family educations
23   rights and privacy act, 20 U.S.C. Sec. 1232g and its implementing
24   regulations;
25       (l) Personal data regulated by the student user privacy in
26   education rights act, chapter 28A.604 RCW; or
27       (m) Data maintained for employment records purposes."


         EFFECT: Removes from the jurisdictional scope section the
     thresholds that a business must meet in order to be subject to the
     bill to provide that the bill applies to legal entities that conduct
     business in Washington or produce products or services that are
     targeted to residents of Washington. Exempts from the provisions of
     the bill legal entities that fall below a certain size and annual
     revenue amount, that control or process personal data of fewer than
     20,000 consumers, and that do not disclose or share consumer data
     other than as necessary to provide requested products or services or
     that monetize personal data within the limits set in the exemption.



                                  --- END ---



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