H-4242

AN ACT Relating to full disclosure of civil court proceedings relating to illegal activity; adding new sections to chapter 4.24 RCW; adding a new section to chapter 4.16 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. A new section is added to chapter 4.24 RCW to read as follows:

(1) As used in this section, "illegal activity" means:

(a) Any activity that, in the court's opinion, would present a likelihood of charges being filed by prosecutorial or disciplinary authorities, were they to be aware of the activity, against a party named in a motion, order, judgment, agreement, or contract before the court; or

(b) Any activity that, in the court's opinion, is relevant and materially related to an ongoing law enforcement, prosecutorial, or disciplinary investigation of a party named in a motion, order, judgment, agreement, or contract before the court.

(2) Except as provided in this section, no court shall enter an order or judgment which has the purpose or effect of concealing illegal activity or any relevant information or material concerning illegal activity, nor shall the court enter an order or judgment that has the purpose or effect of concealing any information or material that is relevant to the investigation and potential prosecution or disciplining of an individual or individuals for the commission of illegal activity.

(3) Any portion of an agreement or contract that has the purpose or effect of concealing an illegal activity, relevant information or material concerning illegal activity, or information or material that is relevant to the investigation and potential prosecution or disciplining of an individual or individuals for the commission of illegal activity, is void, contrary to public policy, and may not be enforced. A party to the agreement or contract may bring a declaratory action pursuant to this section to determine whether an agreement or contract conceals illegal activity and is void.

(4)(a) In any declaratory or other civil action, a party may bring a motion for a temporary order restraining disclosure to law enforcement or prosecutorial authorities or to third parties information or material about the party making the motion which is known to another party or which is sought from the party making the motion by another party. Upon good cause shown the court shall examine in camera the information or material sought to be protected. The court may in the court's discretion issue a temporary order restraining a party or parties from disseminating the protected information or material. The temporary order shall terminate upon the entry of a final order or judgment or a dismissal of the action.

(b) In any final order or judgment entered in any declaratory or other civil action, if the court finds that all or portions of the information or material sought to be protected is relevant to the investigation and potential prosecution or disciplining of an individual or individuals for the commission of illegal activity, the court shall require disclosure of the information or material to the proper prosecutorial or disciplinary authorities. If the court finds that all or a portion of the information or material sought to be protected is not relevant to the investigation and potential prosecution or disciplining of an individual or individuals for the commission of illegal activity, the court shall require the information to be sealed and may include in the final order or judgment provisions restraining any or all parties from disclosing the information which is protected.

(5)(a) Any third party, including but not limited to representatives of news media, has standing to contest a motion, order, judgment, agreement, or contract that allegedly conceals illegal activity. The third party may challenge the motion by intervention during the court action or the third party may bring a declaratory action pursuant to this section to determine whether the agreement, contract, order, or judgment conceals illegal activity.

(b) The third party must (i) establish the existence of illegal activity; (ii) establish that the illegal activity was a subject within the agreement, contract, order, or judgment; and (iii) establish a basis for a reasonable belief by the third party that the agreement, contract, order, or judgment concealed the illegal activity in violation of this section or section 2 of this act.

(c) If the court finds that the third party has met the requirements of (b) of this subsection, the court shall order the defendant to produce the information or material for an in camera review by the court. The court shall determine whether the information or material protected under the agreement, contract, order, or judgment conceals information relevant to the investigation and potential prosecution or disciplining of an individual or individuals for the commission of illegal activity in violation of this section or section 2 of this act. Upon review, the court shall issue an order regarding dissemination of the information or material in accordance with subsection (4)(b) of this section.

(d) The court may award reasonable attorneys' fees and actual costs to the prevailing party in an action under this subsection (5).

NEW SECTION. Sec. 2. A new section is added to chapter 4.24 RCW to read as follows:

Any person who violates an order either publishing or sealing information or material issued under this section or section 2 of this act, is in contempt of court. The court shall award attorneys' fees and costs incurred in enforcing the order plus actual damages against the party who violated the order.

NEW SECTION. Sec. 3. This act shall apply to all agreements, contracts, orders, and judgments entered on or after the effective date of this act.

NEW SECTION. Sec. 4. A new section is added to chapter 4.16 RCW to read as follows:

An action for declaratory relief or other civil action brought pursuant to section 1 or 2 of this act to determine whether an agreement, contract, order, or judgment conceals illegal activity in violation of section 1 or 2 of this act must be brought within three years of entry of the order or judgment or three years from the date the parties entered into the agreement or contract.