Safety Over Secrecy Act of 2016

To restrict confidentiality agreements that prohibit the disclosure of information relating to hazards to public safety or health, and for other purposes. 1. Short title This Act may be cited as the Safety Over Secrecy Act of 2016 2. Restrictions on certain confidentiality agreements in settlements (a) In general Chapter 111 1660. Restrictions on certain confidentiality agreements in settlements (a) Definition In this section, the term hazard to public safety or health (b) Disclosure in general (1) In general Except as provided in paragraph (2), a court may not approve or order the enforcement of any provision in a settlement agreement, or other agreement relating to a settlement, between or among parties in a civil suit if— (A) a pleading filed in the suit alleges facts that are relevant to protecting the public from a hazard to public safety or health; and (B) the provision prohibits a party from— (i) disclosing the fact that the settlement was reached; (ii) disclosing the terms of the settlement, other than the amount of money, if any, paid under the settlement; (iii) discussing the suit or evidence produced in the suit; or (iv) otherwise discussing the hazard to public safety or health. (2) Balance of interests (A) In general On a motion by a party to an agreement described in paragraph (1), a court may approve or order the enforcement of a provision described in paragraph (1)(B), despite the fact that a pleading described in paragraph (1)(A) is filed in the suit, if the court, based on an independent finding of fact, determines that— (i) the public interest in the disclosure of facts that are relevant to protecting the public from a hazard to public safety or health is outweighed by a specific and substantial interest in maintaining the confidentiality of the information or records that are covered by the provision; and (ii) the requested order is no broader than necessary to protect the specific and substantial interest in maintaining confidentiality described in clause (i). (B) Considerations With respect to the balancing of interests described in subparagraph (A)(i)— (i) there shall be a rebuttable presumption that the interest in protecting financial, medical, or other similar personal information relating to an identifiable individual outweighs the public interest described in subparagraph (A)(i); (ii) a general interest in the settlement of disputes may not serve as a specific and substantial interest described in subparagraph (A)(i); and (iii) a court may redact language in a settlement agreement, in order to accommodate— (I) the privacy of personal information; and (II) the public benefit of awareness of hazards to public safety and health. (c) Disclosure to Federal or State agencies (1) In general A court may not approve or order the enforcement of any provision of a settlement agreement, or other agreement relating to a settlement, between or among parties in a civil suit if— (A) a pleading filed in the suit alleges facts that are relevant to protecting the public from a hazard to public safety or health; and (B) the provision prohibits or otherwise restricts a party from disclosing a fact described in subparagraph (A) to a Federal or State agency with authority to enforce a law or regulate an activity relating to that fact. (2) Confidentiality maintained The confidentiality of a fact described in paragraph (1)(A) that is disclosed to a Federal or State agency described in paragraph (1)(B) shall be protected to the extent otherwise provided under any other law, regulation, or agreement. . (b) Technical and conforming amendment The table of sections for chapter 111 1660. Restrictions on certain confidentiality agreements in settlements. .

Summary: Safety Over Secrecy Act of 2016 This bill amends the federal judicial code to prohibit courts, except when balancing confidentiality interests against public awareness interests in response to a party's motion, from approving or ordering the enforcement of any provision of a settlement agreement in a civil suit if: (1) a pleading in the suit alleges facts relevant to protecting the public from a hazard to public safety or health; and (2) the provision prohibits a party from disclosing settlement terms (other than the amount of any money paid under the settlement) or from discussing the suit, evidence produced in the suit, or the hazard to public safety or health. A "hazard to public safety or health" is defined as an activity, substance, or condition that has a potential to cause harm to the health or safety of the public. Upon a motion by a party to the settlement agreement, a court may approve or order enforcement of such a provision if: (1) the public interest in disclosure of facts relevant to protecting the public is outweighed by a specific and substantial interest in maintaining the confidentiality of the information or records, and (2) the requested order is no broader than necessary to protect such confidentiality. The bill establishes a rebuttable presumption that the interest in protecting financial, medical, or other similar personal information relating to an identifiable individual outweighs the public interest in disclosure. Courts may redact language to accommodate personal privacy and public awareness. The bill also prohibits courts from approving or ordering the enforcement of a settlement agreement provision in a civil suit that includes allegations concerning public safety and health hazards if the provision restricts a party from disclosing such information to a federal or state agency with law enforcement or regulatory authority over related activity. But facts disclosed to a federal or state agency must be protected as confidential under any other laws, regulations, or agreements.