Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Labor & Workforce Development Committee

SB 6522

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background:

The Public Records Act (PRA) requires state and local government agencies to make all public records available for public inspection and copying unless the records fall within certain statutory exemptions. The PRA must be interpreted liberally and the exemptions narrowly to effectuate a general policy favoring disclosure.

Workers who, in the course of employment, are injured or disabled from an occupational disease are entitled to industrial insurance benefits. Depending on the disability, workers are entitled to medical, temporary time-loss, and vocational rehabilitation benefits, as well as benefits for permanent disabilities. Certain injured workers may resolve their industrial insurance claim by entering into a claim resolution structured settlement agreement. For workers employed by employers who insure through the State Fund, the Department of Labor and Industries (Department) negotiates settlements. An injured worker who applies to enter settlement negotiations with the Department submits information including their household income, monthly budget, and reasons for settlement. Information in the Department's claim files, including information related to settlements, is confidential and not subject to public disclosure by the Department.

The Board of Industrial Insurance Appeals (BIIA) must approve structured settlement agreements for both employees of State Fund and self-insured employers. Settlement agreements filed with the BIIA include information about other benefits the worker receives, the life expectancy of the worker, and other information. If a worker is not represented by an attorney, an industrial insurance judge first holds a conference with the parties to determine if an agreement is in the best interest of the worker, in which case the judge may inquire into the worker's financial status, among other matters.

The BIIA does not have a specific PRA exemption. A judge's decision whether to approve an agreement entered into by an unrepresented worker, and the BIIA's decision whether to approve an agreement are final orders.

Under court rules, statements made in compromise negotiations are generally not admissible in court.

Summary of Bill:

All information related to claims resolution structured settlement agreements submitted to the BIIA, except final orders, is exempt from public disclosure.

Information gathered during the structured settlement agreement process, including forms filled out by the parties and testimony during a settlement conference, is a statement made in the course of compromise negotiations and is inadmissible in future litigation.