House Democrats green-light consumer-privacy, protection bills

Legislation seeks peace of mind for Washington families, consumers

February 4, 2008

OLYMPIA – Consumer privacy and protection are emphasized in a legislative package endorsed by the state House of Representatives today (Feb. 4).

House Bill 2620, which passed unanimously, is prime-sponsored by state Rep. Chris Hurst, D-Enumclaw. The measure involves a customer’s electronic receipt for his or her purchases.

House Bill 2053, also passed unanimously, is prime-sponsored by state Rep. Roger Goodman, D-Kirkland. The measure involves the installation of emergency-power generators by retailers so the retailers can use the generators during storms.

House Bill 1597, which passed 90-2, is prime-sponsored by state Rep. Jim Moeller, D-Vancouver. The measure involves the possession of licenses, certificates, or permits by plumbing, electrical, and conveyance workers while they are on the job.

House Bill 3053, which passed 66-31, is prime-sponsored by state Rep. Steve Kirby, D-Tacoma. The measure involves the “steering” of auto-glass customers to specific auto-glass businesses. 

House Bill 3144, which passed unanimously, is prime-sponsored by state Rep. Marko Liias, D-Mukilteo. The measure involves the establishment of a consumer-information Web site by the state Department of Information Services.

House Bill 3011, which passed unanimously, is prime-sponsored by state Rep. Liz Loomis, D-Snohomish. The measure involves the security of information that is held by brokers.

Credit-card and debit-card numbers printed on electronic receipts would need to be truncated, according to terms of the Hurst legislation, whether the receipt is given to the cardholder or kept by the retailer. (“Truncating” means that the number actually printed on the receipt is shortened so that it can’t be used for nefarious purposes.)

“This legislation is part of our ongoing mission to protect personal information and prohibit identity theft,” said Hurst, who noted the potential serious nightmare when a business tosses this personal financial information into the trash.

“Criminals can and do rummage through garbage and recycling containers in search of credit-card numbers and other account information,” he said. “As a police officer, I once saw an instance where a thief was in the process of going through tens of thousands of stolen receipts to obtain this personal information.”

A new law written a few years ago directs that a customer’s copy of the receipt must have the credit numbers truncated.

But not all businesses take the extra step of truncating numbers on their copy of the receipts, Hurst pointed out.

The Goodman measure requires that businesses which own or operate 10 or more gas stations in a county must install a generator to power the store in the event of an outage.

“This legislation would help relieve at least part of the hardship for storm-battered families,” Goodman said.

“Thousands of families in northern King County and southern Snohomish County lost power in the severe wind storm we had a couple years ago,” said Goodman, D-Kirkland.

“Families need to be able to buy fuel so they can operate their own home generators,” he stated. “Mini-marts that install a generator could also keep refrigeration equipment going so their food doesn’t spoil and so customers can then purchase their basic grocery items.”

Goodman said the legislation would be phased in over three years, and businesses could obtain a tax credit to cover half the cost of a generator’s installation.

Moeller’s bill calls on contractors who do electrical, plumbing, or conveyance work to keep their licenses and certificates with them while they’re working on the job.

The proposed state law “would help eliminate the unsafe and unfair underground-construction industry.        

 “Not only does this underground-contracting threaten consumers’ safety and peace of mind, it also gives these bad-apple contractors an unfair advantage over contractors who conduct their business the right way,” Moeller said.

Kirby’s measure would forbid insurance firms from steering clients to specific auto-glass repair and replacement companies.

“We heard a great deal of testimony that doing this repair work on the cheap to save the insurance company money often results in substandard repairs that can hurt people,” he said.

“Illegal steering occurs when an insurer seeks to maneuver a policyholder into taking his or her business to shops in which the insurer has an interest,” Kirby stated. “The bill simply emphasizes that consumers have every right to take their business wherever they want to insure a proper and safe repair.”

The other two successful proposals in today’s consumer-privacy and protection package represent each of their sponsor’s first bill to win full House approval.

The state Department of Information Services must establish a consumer-protection Web site with details on a wide range of issues, according to directions outlined in the Liias bill.

“We’re seeing a growing number of consumer-fraud complaints in our state,” said Liias. “Especially as our society grows ever more high-tech, citizens become more vulnerable to deceptive practices and activities.”

Liias added that “the bill represents a phased approach to the problem. It will begin with the Web site and a study to move toward creating a consumer-protection portal.”         

Loomis’ legislation seeks to safeguard the way brokers handle securities in their possession. The idea is to strengthen protection for insurers and their policyholders.

“We need to make sure insurance firms have the assets needed to cover any losses incurred by citizen policyholders,” Loomis said. “This is simply a more modern method for brokers to treat custodied securities.”

She added that the proposal updates current state law to conform to National Association of Insurance Commissioner standards to “ensure that financial institutions and insurers are implementing appropriate safeguards to protect the assets of the insurers.”          

The consumer-privacy and protection package now moves to the Senate for further discussion.