BILL REQ. #:  H-1088.1 

Read first time 01/25/2007.   Referred to Committee on Commerce & Labor.

     AN ACT Relating to industrial insurance final settlement agreements; and adding new sections 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 once the worker has reached maximum medical improvement 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, vocational services, 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, "parties" means:
     (i) For a self-insured claim, the worker and the employer; and
     (ii) For a state fund claim, the worker, the employer, and the department of labor and industries. If the employer participates in a retrospective rating plan under chapter 51.18 RCW, the retrospective rating group, through its administrator, shall also be a party.
     (c) A final settlement agreement entered into under this section must be signed by the parties or their representatives 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 to the worker 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) Before approving the settlement agreement, the settlement officer shall ensure that the worker has an adequate understanding of the settlement proposal and its consequences to the worker.
     (c) The settlement officer may reject a settlement agreement only if the officer finds the parties have not entered into the agreement knowingly and willingly. 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.
     (d) 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 conference described in this section.
     (4) Upon receiving the final settlement agreement, the board shall approve the agreement within thirty working days of receipt unless it finds that the parties have not entered into the agreement knowingly and willingly. 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) If the parties have provided in a final settlement agreement that a claim is not subject to reopening pursuant to RCW 51.32.160, any application to reopen the claim must be denied.

NEW SECTION.  Sec. 2   A new section is added to chapter 51.32 RCW to read as follows:
     The department shall develop and maintain a registry system by which it records final settlement agreements entered into between the parties. This information shall be made available to employers at appropriate times as determined by the department in rule, but an employer may not consider a prior settlement agreement when making hiring decisions or as a condition of employment.