The finding at RCW 19.373.005 will drive liberal construction in close cases: "The legislature finds that the people of Washington regard their privacy as a fundamental right and an essential element of their individual freedom." The stated legislative tools include heightened disclosures and consent, deletion rights, a ban on selling consumer health data without valid authorization signed by the consumer, and a ban on geofencing health care facilities.
The definitions at RCW 19.373.010 are bedrock. "Consumer" means (a) a Washington resident or (b) a natural person whose consumer health data is collected in Washington. A non-resident whose data is collected in Washington is also a consumer. "Consumer health data" means personal information linked or reasonably linkable to a consumer that identifies past, present, or future physical or mental health status, including inferences. "Regulated entity" means any legal entity that (a) conducts business in Washington or produces or provides products or services targeted to consumers in Washington, and (b) alone or jointly determines the purpose and means of collecting, processing, sharing, or selling consumer health data.
"Small business" means a regulated entity that satisfies one or both of: (a) fewer than 100,000 consumers during a calendar year, or (b) less than 50 percent of gross revenue from consumer health data. "Sell" means exchange for monetary or other valuable consideration, with carve-outs for mergers, acquisitions, bankruptcies, and processor arrangements. "Geofence" is "a virtual boundary that is 2,000 feet or less from the perimeter of the physical location," using GPS, cell tower, cellular data, RFID, Wifi, or any other spatial or location detection.
Two takeaways. First, jurisdictional reach goes beyond Washington-domiciled companies: a Texas SaaS marketing a sleep app to Washington downloaders may be covered if it targets Washington consumers and determines the purposes and means of collecting, processing, sharing, or selling consumer health data. Second, the definition reaches inferences; an AI model inferring health status from purchasing patterns, search history, or location is generating consumer health data.
RCW 19.373.020 is the privacy policy section and the most overlooked compliance gap: "Except as provided in subsection (2) of this section, beginning March 31, 2024, a regulated entity and a small business shall maintain a consumer health data privacy policy that clearly and conspicuously discloses: (i) The categories of consumer health data collected and the purpose for which the data is collected, including how the data will be used; (ii) the categories of sources from which the consumer health data is collected; (iii) the categories of consumer health data that is shared; (iv) a list of the categories of third parties and specific affiliates with whom the regulated entity or the small business shares the consumer health data; and (v) how a consumer can exercise the rights provided in RCW 19.373.040. (b) A regulated entity and a small business shall prominently publish a link to its consumer health data privacy policy on its homepage." Subsections (c)-(d) require affirmative consent before adding categories or new purposes; (e) makes processor contracts inconsistent with the policy a violation.