HOUSE BILL REPORT

HB 1254

BYRepresentatives 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 for communications to certain officials.

House Committe on Judiciary

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (15)

      Signed by Representatives Appelwick, Chair; Crane, Vice Chair; Padden, Ranking Republican Member; Belcher, Dellwo, Inslee, P. King, R. Meyers, Moyer, H. Myers, Schmidt, Scott, Tate, Van Luven and Wineberry.

Minority Report:  Do not pass.  (3)

      Signed by Representatives Hargrove, Locke and Patrick.

House Staff:Regina Jones (786-7191)

AS REPORTED BY COMMITTEE ON JUDICIARY FEBRUARY 9, 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 state employees, who in good faith reports violations of local, state, or federal law.

SUMMARY:

SUBSTITUTE BILL:  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 reasonably of 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.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute clarifies that the communication must be made to an agency.  The Attorney General's office may defend cases in which a local government chooses not to become involved.

If an agency intervenes in and defends a suit and fails to establish the immunity defense, the party bringing the suit is entitled to costs and attorneys' fees.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Representative Holly Myers, Prime Sponsor; Mike McCormick, Department of Community Development; Maureen Hart, Office of the Attorney General; Brenda Hill, Citizen.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Testimony was given regarding disclosure made to the Department of Revenue by Brenda Hill and the circumstances surrounding a subsequent defamation action filed against Mr. and Mrs. Hill.  This bill is prospective legislation to provide a defense of immunity for citizens who, in good faith, disclosure information to governmental agencies.

House Committee - Testimony Against:      None Presented.