BILL REQ. #:  S-4480.2 

READ FIRST TIME 02/05/04.   

     AN ACT Relating to industrial insurance final settlement agreements; and adding a new section to chapter 51.32 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 51.32 RCW to read as follows:
     (1)(a) The parties to a claim may enter into a final settlement agreement at any time as provided in this section with respect to one or more claims under this title. All final settlement agreements must be approved by the board of industrial insurance appeals. The final settlement agreement may:
     (i) Bind the parties with regard to any or all aspects of a claim, including but not limited to allowance or rejection of a claim, monetary payment, provision of medical treatment, claim closure, and claim reopening under RCW 51.32.160; and
     (ii) Not subject any employer who is not a signatory to the agreement to any responsibility or burden under any claim.
     (b) For purposes of this section, the term "parties" means as follows:
     (i) For a self-insured claim, the worker and his or her attorney, if any; the employer and its attorney, if any; and a designated agent of the department of labor and industries; and
     (ii) For a state fund claim, the worker and his or her attorney, if any; the employer and its attorney, if any; and a designated agent of the department of labor and industries.
     (c) A final settlement agreement entered into under this section must be signed by the parties and must clearly state that the parties agree to the terms of the final settlement agreement. Unless one of the parties revokes consent to the agreement, as provided in subsection (3) of this section, the final settlement agreement becomes final and binding thirty days after approval of the agreement by the board of industrial insurance appeals.
     (d) A final settlement agreement that has become final and binding as provided in this section is binding on the department and on all parties to the agreement as to its terms and the injuries and occupational diseases to which the final settlement applies. A final settlement agreement that has become final and binding is not subject to appeal.
     (2)(a) If a worker is not represented by an attorney at the time of signing a final settlement agreement, the parties must forward a copy of the signed settlement agreement to the board with a request for a conference with a settlement officer. Unless one of the parties requests a later date, the settlement officer must convene a conference within fourteen days after receipt of the request for the limited purpose of receiving the final settlement agreement of the parties, explaining the benefits generally available under this title, and explaining that a final settlement agreement may alter the benefits payable on a claim. In no event may a settlement officer render legal advice to any party.
     (b) The settlement officer may reject a settlement agreement only if the agreement constitutes a miscarriage of justice. Within seven days after the conference, the settlement officer shall issue an order allowing or rejecting the final settlement agreement. There shall be no appeal from the settlement officer's decision.
     (c) If the settlement officer issues an order allowing the final settlement agreement, the order shall be submitted to the board.
     (3) If a worker is represented by an attorney at the time of signing a final settlement agreement, the parties may submit the agreement directly to the board without the hearing described in this subsection.
     (4) Upon receiving the final settlement agreement, the board shall approve the agreement unless it finds that the agreement constitutes a miscarriage of justice. If the board approves the agreement, it shall provide notice to the department of the binding terms of the agreement and provide for placement of the agreement in the applicable claim files.
     (5) A party may revoke consent to the final settlement agreement by providing written notice to the other parties and the board within thirty days after the date the agreement is approved by the board.
     (6) To the extent the worker is entitled to temporary total disability or permanent total disability benefits while a final settlement agreement is being negotiated, or during the revocation period of an agreement, such benefits shall be paid until the agreement becomes final.
     (7)(a) If the parties have provided in a final settlement agreement that a claim or claims are not subject to reopening pursuant to RCW 51.32.160, any application to reopen the claim or claims must be denied.
     (b) A final settlement agreement in any claim may be used as a defense by any employer if a worker subject to a final settlement agreement files a subsequent new claim or an application to reopen a claim for the same or similar diagnosis in the same region of the body or the same or similar mental health diagnosis.
     (c) As used in this subsection, "same or similar diagnosis in the same region of the body or the same or similar mental health diagnosis" shall be broadly construed to prevent excessive or duplicative benefits to the worker or abuse by the worker in filing multiple or repetitious claims for benefits.