BILL REQ. #:  S-0561.1 

Read first time 01/19/11.   Referred to Committee on Labor, Commerce & Consumer Protection.

     AN ACT Relating to voluntary settlement agreements under industrial insurance laws; and adding new sections to chapter 51.04 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 51.04 RCW to read as follows:
     (1)(a) Notwithstanding RCW 51.04.060 or any other provision of this title, the parties to a claim for benefits may enter into a voluntary settlement agreement at any time as provided in this section with respect to one or more claims for benefits under this title. All voluntary settlement agreements must be approved by the board of industrial insurance appeals. The voluntary 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. If the employer participates in a retrospective rating plan under chapter 51.18 RCW, the retrospective rating group, through its administrator, is also a party.
     (c) A voluntary settlement agreement entered into under this section must be signed by the parties or their representatives and must clearly state that the parties understand and agree to the terms of the voluntary settlement agreement. Unless one of the parties revokes consent to the agreement, as provided in subsection (3) of this section, the voluntary settlement agreement becomes final and binding thirty days after approval of the agreement by the board of industrial insurance appeals.
     (d) A voluntary 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 voluntary settlement applies. A voluntary 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 voluntary 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 voluntary settlement agreement of the parties, explaining to the worker the benefits generally available under this title, and explaining that a voluntary 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 voluntary settlement agreement. There is no appeal from the settlement officer's decision.
     (d) If the settlement officer issues an order allowing the voluntary settlement agreement, the order must be submitted to the board.
     (3) If a worker is represented by an attorney at the time of signing a voluntary settlement agreement, the parties may submit the agreement directly to the board without the conference described in this section.
     (4) Upon receiving the voluntary 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 voluntary 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 found to be entitled to temporary total disability or permanent total disability benefits while a voluntary settlement agreement is being negotiated, or during the revocation period of an agreement, the benefits must be paid until the agreement becomes final.
     (7) If the parties have provided in a voluntary settlement agreement that a claim is not subject to reopening under RCW 51.32.160, any application to reopen the claim must be denied.

NEW SECTION.  Sec. 2   A new section is added to chapter 51.04 RCW to read as follows:
     The department must maintain copies of all voluntary settlement agreements entered into between the parties and develop processes under RCW 51.28.070 to furnish copies of such agreements to any party contemplating any subsequent voluntary settlement agreement with the worker on any claim. The department shall also furnish claims histories that include all prior permanent disability awards received by the worker on any claims by body part and category or percentage rating, as applicable. Copies of such agreements and claims histories shall be furnished within ten working days of a written request. An employer may not consider a prior settlement agreement or claims history when making a decision about hiring or the terms or conditions of employment.

NEW SECTION.  Sec. 3   A new section is added to chapter 51.04 RCW to read as follows:
     If a worker has received a prior award of, or entered into a voluntary settlement for, total or partial permanent disability benefits, it shall be conclusively presumed that the medical condition causing the prior permanent disability exists and is disabling at the time of any subsequent industrial injury or occupational disease. Except in the case of total permanent disability, the accumulation of all permanent disability awards issued with respect to any one part of the body in favor of the worker may not exceed one hundred percent over the worker's lifetime. When entering into a voluntary settlement agreement under this chapter, the department or self-insured employer may exclude amounts paid to settle claims for prior portions of a worker's permanent total or partial disability.