SENATE BILL REPORT

SHB 1254

BYHouse Committee on Judiciary (originally sponsored by Representatives H. Myers, Beck, Morris, R. Meyers, G. Fisher, Peery, Winsley, Wang, May, Jones, P. King, R. Fisher, Sayan, O'Brien, Locke, Crane, Heavey, Inslee, Rector, Brough, Cooper and Brumsickle; by request of Governor Gardner and Attorney General)

Providing immunity from civil liability.

House Committe on Judiciary

Senate Committee on Law & Justice

Senate Hearing Date(s):March 20, 1989

Majority Report:  Do pass.

      Signed by Senators Pullen, Chairman; McCaslin, Vice Chairman; Hayner, Madsen, Nelson, Newhouse, Niemi, Rasmussen, Rinehart, Talmadge, Thorsness.

Senate Staff:Ben Barnes (786-7465)

                  March 20, 1989

AS REPORTED BY COMMITTEE ON LAW & JUSTICE, MARCH 20, 1989

BACKGROUND:

Litigation involving Brenda Hill, a resident of Vancouver, Washington, has given rise to concern regarding civil liability of individuals who report violations of local, state or federal law.  Mrs. Hill and her husband purchased a home from a real estate developer and subsequently determined that the developer had failed to pay the excise tax due on the transaction.  Mrs. Hill reported this violation to the Department of Revenue.  The department requested that she assist with some investigative work to confirm the developer's failure to pay taxes on her transaction and on real estate transactions involving others in her community.  The Hills did so and, acting largely on the information provided by Mrs. Hill, the department collected $477,000 in unpaid taxes owed by the developer.  As a result of the disclosures made to state officials, the Hills were sued by the developer.  Mrs. Hill asked that the state defend her, but was told that the state had no authority to do so.  The cost of defending the developer's suit has forced the Hills into bankruptcy.

Under current law, state employees are protected from retaliatory action if they, in good faith, report other state employees' violations of state law or improper governmental actions.  This bill would extend immunity from civil liability to any person, including a state employee, who in good faith reports violations of local, state, or federal law.

SUMMARY:

The purpose of the act is to protect individuals who make good faith reports of potential wrongdoing to appropriate governmental bodies.

A person who, in good faith, communicates a complaint or information to a federal, state or local governmental agency is immune from civil liability based on the communication.  The communication must be a matter of reasonable concern to the agency.

Individuals who prevail with the immunity defense are entitled to recover costs and attorneys' fees incurred in establishing the defense.

The agency receiving the complaint or information is entitled to intervene in and defend against any suit precipitated by the communication.  If the agency intervenes in or defends against the suit and prevails, the agency is entitled to recover costs and attorneys' fees.  If the agency fails to establish the immunity defense, the party bringing the action is entitled to recover costs and attorneys' fees incurred in proving the defense invalid or inapplicable.  If a local governmental agency chooses not to intervene in and defend against a suit, the Office of the Attorney General may do so.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Representative Holly Myers, original sponsor (pro); Maureen Hart, Attorney General's office (pro)