Washington 2023-2024 Regular Session

Washington House Bill HB1370

Introduced
1/17/23  
Refer
1/17/23  
Report Pass
2/7/23  
Refer
2/9/23  
Report Pass
2/23/23  
Refer
2/24/23  
Engrossed
3/3/23  
Refer
3/7/23  
Report Pass
3/21/23  
Enrolled
4/14/23  
Chaptered
4/20/23  

Caption

Providing the payment of awards to whistleblowers who report violations of state or federal securities laws and providing protection to whistleblowers and internal reporters.

Impact

If passed, HB1370 would significantly impact state laws related to securities regulation. It would establish a formal mechanism for awarding whistleblowers who provide actionable information leading to successful enforcement actions. The implementation of this bill may lead to an uptick in reports of misconduct, potentially benefiting regulatory agencies by expanding their ability to effectively monitor and enforce compliance measures in the financial industry. Additionally, the protection afforded to whistleblowers is expected to alleviate fears of retaliation, encouraging more individuals to step forward with information that could otherwise go unreported.

Summary

House Bill 1370 aims to encourage the reporting of violations of state or federal securities laws by providing financial rewards to whistleblowers. This legislation is designed to enhance protections for individuals who report wrongdoing, ensuring they are safeguarded against retaliation. The bill acknowledges the vital role that whistleblowers play in highlighting unethical or illegal activities within organizations, promoting transparency, and upholding the integrity of financial markets. By incentivizing individuals to come forward with information, HB1370 seeks to foster a culture of accountability and compliance in the sector.

Sentiment

The sentiment around HB1370 appears to be broadly positive, with recognition of the importance of whistleblower protections in enhancing regulatory effectiveness. Supporters emphasize the need for robust measures to safeguard individuals who take the risk of reporting potential infractions. However, some skepticism exists regarding the adequacy of the proposed rewards and protections, questioning whether they would be sufficient to truly empower whistleblowers. Nevertheless, the predominant view sees the bill as a necessary step towards stronger enforcement of securities laws.

Contention

The notable points of contention regarding HB1370 primarily revolve around the specifics of the reward system and the scope of whistleblower protections. Critics argue that the rewards may not be substantial enough to incentivize reporting, especially for potential whistleblowers who might face significant personal or professional risks. Additionally, concerns have been raised about the framework for protecting whistleblowers from retaliation, with calls for clearer guidelines to ensure that individuals can report violations safely and without fear of repercussions. The balance between incentivizing reporting and protecting against misuse of the system remains a critical discussion point.

Companion Bills

No companion bills found.

Previously Filed As

WA HB2156

Providing solar consumer protections.

WA SB6256

Providing solar consumer protections.

WA HB1711

Providing a sales and use tax exemption related to internet and telecommunications infrastructure projects involving a federally recognized Indian tribe.

WA SB5689

Providing a sales and use tax exemption related to internet and telecommunications infrastructure projects involving a federally recognized Indian tribe.

WA SB5023

Providing labor market protections for domestic workers.

WA HB1561

Providing labor market protections for domestic workers.

WA HB1362

Improving government efficiency related to reports by state agencies by eliminating reports, changing the frequency of reports, and providing an alternative method for having information publicly available in place of reports.

WA HB1279

Providing postsecondary education consumer protections.

WA HB2164

Providing postsecondary education consumer protections.

WA SB5532

Providing enhanced payment to low volume, small rural hospitals.

Similar Bills

No similar bills found.