SENATE BILL REPORT

SSB 5336

BYSenate Committee on Law & Justice (originally sponsored by Senators Pullen, Sutherland, Newhouse, McCaslin, Talmadge, Thorsness, Nelson, Rasmussen, Benitz, Johnson, Lee, Vognild, Sellar, Metcalf, Bauer, Smith and West; by request of Governor and Attorney General)

Providing civil immunity for persons making reports to government officials.

Senate Committee on Law & Justice

Senate Hearing Date(s):January 16, 1989; January 24, 1989

Majority Report:  That Substitute Senate Bill No. 5336 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Ben Barnes (786-7465)

                  February 14, 1989

AS PASSED SENATE, FEBRUARY 10, 1989

BACKGROUND:

Under current law, state employees who, in good faith, report violations of state law or other improper governmental actions by fellow employees are protected from retaliatory action.  There is no similar statute which protects citizens who wish to report violations of local, state, or federal law by private citizens.  The need for such a statute has been raised in regard to the experience of Mrs. Brenda Hill, a Vancouver, Washington resident.

Four years ago, Mrs. Hill and her husband purchased a home from the Robert John Real Estate Company, an Oregon corporation, on a real estate contract.  Last year, the couple sought to refinance their home and discovered that the real estate excise tax had not been paid by the company and the contract had not been recorded.  When officials of the company refused to pay the tax immediately, Mrs. Hill reported the violation to the Department of Revenue, who asked her to provide names of other homeowners in her community whose contracts had not been recorded.  Acting largely on information that Mrs. Hill provided, Revenue Department officials assessed the Robert John Company $477,000 in unpaid excise taxes.  As a result of her disclosure to state officials, Mrs. Hill and her husband are currently being sued by the Robert John Company for $100,000 in damages.

It is suggested that private citizens who, in good faith, report violations of local, state, or federal law be statutorily protected from any civil action for damages arising out of such disclosure.

SUMMARY:

Any person who, in good faith, communicates a complaint or information to a federal, state, or local governmental agency regarding a matter of reasonable concern to that agency is immune from civil liability based upon the communication.

A person prevailing upon the good faith immunity defense is entitled to reasonable attorneys' fees and court costs incurred in establishing the defense.

An agency which receives a complaint or information regarding a matter of reasonable concern to that agency may intervene in and defend against any suit arising from the communication.

The office of the Attorney General is authorized to intervene in and defend against any suit arising from a good faith report of a complaint or other information to a local governmental agency regarding a matter of reasonable concern to that agency.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Maureen Hart, office of the Attorney General (pro)