The proposed bill establishes a data broker registry in Washington State, aimed at regulating the data brokering industry and imposing a severance tax on data brokers. It defines key terms such as "data broker," "brokered personal data," and "data brokering," and sets forth registration requirements that will take effect on January 1, 2026. Data brokers are required to submit annual registration forms detailing their operations, including the types of data collected and security measures, along with a specified fee to the Department of Licensing. The bill also introduces a monthly severance tax based on the number of resident individuals whose data is collected, with a tiered tax structure and provisions for maintaining records and filing monthly returns.

Additionally, the bill creates new chapters in the Revised Code of Washington (RCW), specifically a new chapter in Title 19 RCW for sections 2 through 7, and another in Title 82 RCW for sections 9 through 12, with the latter provisions taking effect on January 1, 2027. It mandates that data brokers maintain records as required by the department and continue to file returns until they report no tax liability for 12 consecutive months. The Department of Licensing is tasked with making registration information publicly available and may adopt necessary rules for implementation, thereby enhancing consumer protection and generating state revenue from the data brokering industry.

Statutes affected:
Original Bill: 18.235.020