AN ACT Relating to creating a data broker registry for the purpose of imposing a data broker severance tax;
HB1887 creates a new regulatory framework in Washington for “data brokers,” defined broadly as businesses that collect, aggregate, analyze, buy, sell, or share brokered personal data about Washington residents. The bill requires data brokers to register annually with the Department of Licensing, submit detailed information about their business and data practices, and pay a fee to cover program administration. The department must also publish the registration information on its website.
The bill further imposes a monthly “data broker severance tax” on data brokering activity, with the tax amount tied to the number of Washington resident individuals whose brokered personal data is collected in a month. It includes rules for counting residents, presumes certain location-linked records indicate Washington residency unless rebutted, and requires monthly returns and recordkeeping. The bill also authorizes the department to adopt rules and to deny, suspend, or discipline registrations under the state’s uniform regulation of business and professions framework.
HB1887 would add a new chapter to Title 19 RCW and amend related licensing provisions to bring data brokers under state oversight. It would create a public registry, require disclosures about data collection, processing, sales, security measures, geolocation data, consumer health data, and opt-out rights, and establish a tax and reporting system administered by the Department of Licensing. The bill would affect data broker businesses operating in Washington, while exempting certain entities and activities such as consumer reporting agencies, some financial institutions, publicly available business-directory information, and one-time asset sales.
The bill’s stated purpose and structure suggest a strong policy interest in transparency, consumer privacy, and revenue generation from a rapidly growing data economy. Even without recorded committee testimony or votes, the bill text reflects a regulatory approach aimed at limiting opaque data practices and ensuring the state can identify and tax data broker activity. The overall sentiment appears supportive of consumer protection and state oversight, with the bill framed as a response to technological change and the expansion of online data collection.
The main points of contention likely center on the breadth of the data broker definition, the scope of required disclosures, and the new tax burden. Data brokers and related businesses may object to the monthly severance tax, public disclosure of business information, and compliance costs associated with registration, reporting, and recordkeeping. There may also be debate over exemptions, the presumption of Washington residency based on location-linked data, and whether the bill reaches too broadly into legitimate data, directory, financial, or health-related services.