BILL REQ. #:  S-3827.1 

Read first time 01/19/2004.   Referred to Committee on Commerce & Trade.

     AN ACT Relating to industrial insurance final settlement agreements; amending RCW 51.04.060; 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) A worker and an employer may enter into a final settlement agreement as provided in this section with respect to one or more claims under this title. 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) A final settlement agreement entered into under this section must be signed by the employer and the worker and must clearly state that the parties agree to the terms of the final settlement agreement. In a state fund claim, the employer or the worker must file the final settlement agreement with the director. Unless the worker or the employer revokes consent to the agreement, except as provided in subsection (2) or (3) of this section: (i) The final settlement agreement in a state fund case becomes final and binding fourteen days after the agreement is filed with the director; and (ii) in a self-insured case, the final settlement agreement becomes final and binding fourteen days after the agreement is signed.
     (c) A self-insured employer and a worker may enter into a final settlement agreement. The agreement must be signed by the employer and the worker.
     (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) A worker or an employer in a state fund case may revoke consent to the final settlement agreement by providing written notice to the other party and the director within fourteen days of the date the agreement is filed with the director.
     (b) A worker or an employer in a self-insured case may revoke consent to the final settlement agreement by providing written notice to the other party within fourteen days of signing the settlement agreement. Unless subsection (3) of this section applies, if no party revokes the agreement as specified in this subsection, the self-insurer must forward the agreement to the department to provide notice to the department of the binding terms of the agreement and for placement of the agreement in the applicable claim files.
     (3)(a) If a worker is not represented by legal counsel at the time of signing a final settlement agreement, the department or the self-insurer, as the case may be, must forward a copy of the signed settlement agreement to the board of industrial insurance appeals with a request for a conference with a settlement officer. Unless the worker or the employer requests a later date, the settlement officer must convene a conference within fourteen days of 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 gross miscarriage of justice. Within seven days after the conference, the settlement officer shall issue a conference report accepting or rejecting the final settlement agreement. If the settlement agreement is rejected, no further proceedings with regard to the settlement agreement may take place, and the settlement agreement is null and void.
     (c) If the settlement officer accepts the agreement and no party revokes the agreement as specified in subsection (2) of this section or (d) of this subsection, the agreement becomes final and binding. If the case involves a self-insurer, the self-insurer shall forward the final and binding agreement to the department to provide notice to the department of the binding terms of the agreement and for placement of the agreement in the applicable claim files.
     (d) In cases requiring a conference under this subsection:
     (i) The worker or the employer in a state fund case may revoke consent to the agreement by providing written notice to the other party and the department within fourteen days after the conference with the settlement officer.
     (ii) If the case involves a self-insurer, the worker or the employer may revoke consent to the agreement by providing written notice to the other party within fourteen days after the conference with the settlement officer.
     (4) 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.
     (5)(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 is of no force or effect and must be denied.
     (b)(i) If a worker subject to a final settlement agreement subsequently files a new claim under this title, or an application under RCW 51.32.160 to reopen a claim that is not covered by the settlement agreement, for an injury or occupational disease involving the same or similar diagnosis in the same region of the body or the same or similar mental health diagnosis as the claim or claims covered by the final settlement agreement, any monthly compensation or permanent disability compensation payable to the worker under the subsequent or reopened claim shall be reduced by the monetary compensation paid to the worker under the final settlement agreement.
     (ii) Proper and necessary medical treatment under RCW 51.36.010, if indicated, shall be provided to the worker in a new claim or a reopened claim not covered by the final settlement agreement notwithstanding the existence of a prior final settlement agreement in another claim or claims of the worker involving the same or similar diagnosis in the same region of the body or the same or similar mental health diagnosis.
     (c) 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.
     (d) 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.

Sec. 2   RCW 51.04.060 and 1977 ex.s. c 350 s 3 are each amended to read as follows:
     No employer or worker shall exempt himself or herself from the burden or waive the benefits of this title by any contract, agreement, rule or regulation, and any such contract, agreement, rule or regulation shall be pro tanto void. However, this section does not prohibit final settlement agreements authorized under section 1 of this act.