Z-0749

AN ACT Relating to consumer and business dispute resolution; amending RCW 7.75.040, 7.75.050, and 7.75.090; and adding a new chapter to Title 19 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The attorney general shall by rule establish procedures for designating certain consumer complaints and disputes which arise under chapter 19.86 RCW as appropriate for mediation. In establishing such procedures, the attorney general shall consult with the directors of dispute resolution centers created under chapter 7.75 RCW.

NEW SECTION. Sec. 2. When a consumer complaint or dispute has been designated as appropriate for mediation, the attorney general by rule shall refer, in the following order of priority, the complaint or dispute to:

(1) A dispute resolution center created under chapter 7.75 RCW located in the county in which the consumer resides;

(2) Any other dispute resolution center or mediation service which both parties to the dispute agree to use; or

(3) The attorney general mediation service established under section 3 of this act.

NEW SECTION. Sec. 3. The attorney general shall establish by rule a mediation service to resolve consumer complaints or disputes which arise under chapter 19.86 RCW in locations where dispute resolution centers authorized under chapter 7.75 RCW have not been created or are unable to comply with rules established by the attorney general and other mediation services which comply with such rules are not available. The operation of the attorney general's mediation services shall be independent of the attorney general's enforcement function under RCW 19.86.080.

NEW SECTION. Sec. 4. A person who voluntarily enters into mediation as authorized by this chapter may withdraw from the mediation and seek judicial or administrative redress. No legal penalty, sanction, or restraint may be imposed upon the person who thus withdraws.

Sec. 5. RCW 7.75.040 and 1984 c 258 s 504 are each amended to read as follows:

(1) In conducting a dispute resolution process, a center established under this chapter or mediation proceedings authorized by sections 1 through 3 of this act shall require:

(a) That the disputing parties enter into a written agreement which expresses the method by which they shall attempt to resolve the issues in dispute; and

(b) That at the conclusion of the dispute resolution process, the parties enter into a written agreement which sets forth the settlement of the issues and the future responsibilities, if any, of each party.

(2) A written agreement entered into with the assistance of a center at the conclusion of the written dispute resolution process is admissible as evidence in any judicial or administrative proceeding.

Sec. 6. RCW 7.75.050 and 1984 c 258 s 505 are each amended to read as follows:

All memoranda, work notes or products, or case files of centers established under this chapter or developed as a result of mediation proceedings authorized by sections 1 through 3 of this act are confidential and privileged and are not subject to disclosure in any judicial or administrative proceeding unless the court or administrative tribunal determines that the materials were submitted by a participant to the center for the purpose of avoiding discovery of the material in a subsequent proceeding. Any communication relating to the subject matter of the resolution made during the resolution process by any participant, mediator, or any other person is a privileged communication and is not subject to disclosure in any judicial or administrative proceeding unless all parties to the communication waive the privilege. The foregoing privilege and limitation on evidentiary use does not apply to any communication of a threat that injury or damage may be inflicted on any person or on the property of a party to the dispute, to the extent the communication may be relevant evidence in a criminal matter.

Sec. 7. RCW 7.75.090 and 1984 c 258 s 509 are each amended to read as follows:

Nothing in this chapter precludes any person or persons not operating under RCW 7.75.020 from providing dispute resolution services. However, the provisions of RCW 7.75.050, relating to confidentiality, and RCW 7.75.080, relating to statutes of limitation, apply only to proceedings conducted by a dispute resolution center established under this chapter and mediation proceedings authorized by sections 1 through 3 of this act.

NEW SECTION. Sec. 8. Sections 1 through 4 of this act shall constitute a new chapter in Title 19 RCW.