HOUSE BILL REPORT

SHB 1263

BYHouse Committee on State Government (originally sponsored by Representatives R. Fisher, Nelson, Sayan, Nealey, Silver and Rector; by request of State Auditor)

Relating to disclosure of improper governmental action.

House Committe on State Government

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (10)

      Signed by Representatives R. Fisher, Chair; Anderson, Vice Chair; McLean, Ranking Republican Member; Hankins, R. King, Morris, O'Brien, Rector, Sayan and Silver.

House Staff:Barbara McLain (786-7135)

AS PASSED HOUSE MARCH 14, 1989

BACKGROUND:

The Whistleblower Act (RCW 42.40) was enacted in 1982 to encourage state employees to disclose improper governmental action and to protect employees who make disclosures.  Improper governmental action is defined as: (a) a violation of law or rule, (b) an abuse of authority, (c) a specific danger to the public health or safety, or (d) a gross waste of public funds.

In administering the act, the State Auditor has the following responsibilities:

            oAfter receiving specific information about an improper action, the Auditor conducts a preliminary investigation, keeping confidential the identity of the employee providing information.

            oIf a complaint appears unsubstantiated, the Auditor notifies the reporting employee with a written summary of the investigation.  If a complaint appears substantiated, the Auditor notifies the reporting employee, and either conducts a further investigation or makes a report to the agency head or, if appropriate, to the Attorney General or other authority.

            oA reporting employee is protected from retaliation for up to two years after providing information.  The Auditor contacts the employee at least quarterly to determine whether any changes in the employee's work status or situation have occurred.  The Auditor has authority to investigate any such changes.

            oThe Auditor provides a written summary of the Whistleblower Act and reporting procedures to each state employee.

An employee wishing to disclose information also has the responsibility to make a good faith effort to inform the agency head before disclosing to the Auditor.

Administering the Whistleblower Act requires the work of two FTE's in the Auditor's office.  Since the act's passage, employees have filed 271 reports with the Auditor.  Forty-two percent of the reports involved misuse or waste of public funds or resources, and 22 percent dealt with personnel actions.

SUMMARY:

Under the Whistleblower Act, improper governmental action is redefined so as not to include personnel actions such as employee grievances, promotions, transfers, dismissals, or violations of state civil service law and higher education personnel law.

For any disclosures that appear not to meet the definition of improper governmental action or appear to be other than a gross waste of public funds, the Auditor may have state agencies conduct investigations and provide a written report on each allegation and any corrective action taken.

The two-year limit on protecting the reporting employee from retaliatory action is removed, and should any changes occur in the employee's work situation, the employee is to notify the Auditor.  The Auditor need not follow-up quarterly with reporting employees.

Copies of the Whistleblower Act and reporting procedures are to be provided to employees by each agency, rather than by the Auditor.

Employees no longer must attempt to report information to their agency heads before disclosing to the Auditor.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Jack Heinricher, Assistant State Auditor.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    These changes improve the administration of the Whistleblower Act.  Employees have other avenues to address personnel grievances; in practice reports of minor incidents are referred to agencies to investigate for efficiency purposes; and the two-year limit on protecting an employee from retaliation is too short.

House Committee - Testimony Against:      None Presented.