BILL REQ. #:  Z-0208.4 

Read first time 01/22/09.   Referred to Committee on Labor, Commerce & Consumer Protection.

     AN ACT Relating to protecting financial and medical information presented to the board of accountancy; and amending RCW 18.04.405.

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

Sec. 1   RCW 18.04.405 and 2001 c 294 s 22 are each amended to read as follows:
     (1) A licensee, certificate holder, or licensed firm, or any of their employees shall not disclose any confidential information obtained in the course of a professional transaction except with the consent of the client or former client or as disclosure may be required by law, legal process, the standards of the profession, or as disclosure of confidential information is permitted by RCW 18.04.350 (((3))) (7) and (((4))) (8), 18.04.295(8), 18.04.390, and this section in connection with quality assurance, or peer reviews, investigations, and any proceeding under chapter 34.05 RCW.
     (2) This section shall not be construed as limiting the authority of this state or of the United States or an agency of this state, the board, or of the United States to subpoena and use such confidential information obtained by a licensee, or any of their employees in the course of a professional transaction in connection with any investigation, public hearing, or other proceeding, nor shall this section be construed as prohibiting a licensee or certified public accountant whose professional competence has been challenged in a court of law or before an administrative agency from disclosing confidential information as a part of a defense to the court action or administrative proceeding.
     (3) The proceedings, records, and work papers of a review committee shall be privileged and shall not be subject to discovery, subpoena, or other means of legal process or introduction into evidence in any civil action, arbitration, administrative proceeding, or board proceeding and no member of the review committee or person who was involved in the peer review process shall be permitted or required to testify in any such civil action, arbitration, administrative proceeding, or board proceeding as to any matter produced, presented, disclosed, or discussed during or in connection with the peer review process, or as to any findings, recommendations, evaluations, opinions, or other actions of such committees, or any members thereof. Information, documents, or records that are publicly available are not to be construed as immune from discovery or use in any civil action, arbitration, administrative proceeding, or board proceeding merely because they were presented or considered in connection with the quality assurance or peer review process.
     (4) The financial records of CPAs and clients including, but not limited to, asset transfer documents and related legal documents prepared by those authorized to practice law, the CPA's work product derived from the confidential financial records of clients, financial statements, tax returns, and confidential medical information pertaining to the CPA or clients that are provided to the board in the course of an investigation or in conjunction with an application for licensure under this chapter are not subject to disclosure under the public records act, chapter 42.56 RCW, are privileged, and are not subject to discovery, subpoena, or other means of legal process or introduction into evidence in any civil action or arbitration. Information, documents, or records that are publicly available are not to be construed as exempt from disclosure or discovery or use in any civil action or arbitration merely because they were presented or considered in connection with a board investigation or application to the board in conjunction with licensure.