To amend chapter 111 of title 28, United States Code, relating to protective orders, sealing of cases, disclosures of discovery information in civil actions, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sunshine in Litigation Act of 
2010''.

SEC. 2. RESTRICTIONS ON PROTECTIVE ORDERS AND SEALING OF CASES AND 
              SETTLEMENTS.

    (a) In General.--Chapter 111 of title 28, United States Code, is 
amended by adding at the end the following:
``Sec. 1660. Restrictions on protective orders and sealing of cases and 
              settlements
    ``(a)(1) In any civil action in which the pleadings state facts 
that are relevant to the protection of public health or safety, a court 
shall not enter an order under rule 26(c) of the Federal Rules of Civil 
Procedure restricting the disclosure of information obtained through 
discovery, an order approving a settlement agreement that would 
restrict the disclosure of such information, or an order restricting 
access to court records unless in connection with such order the court 
has first made independent findings of fact that--
            ``(A) such order would not restrict the disclosure of 
        information which is relevant to the protection of public 
        health or safety; or
            ``(B)(i) the public interest in the disclosure of potential 
        health or safety hazards is outweighed by a specific and 
        substantial interest in maintaining the confidentiality of the 
        information or records in question; and
            ``(ii) the requested order is no broader than necessary to 
        protect the confidentiality interest asserted.
    ``(2) No order entered in accordance with paragraph (1), other than 
an order approving a settlement agreement, shall continue in effect 
after the entry of final judgment, unless at the time of, or after, 
such entry the court makes a separate finding of fact that the 
requirements of paragraph (1) have been met.
    ``(3) The party who is the proponent for the entry of an order, as 
provided under this section, shall have the burden of proof in 
obtaining such an order.
    ``(4) This section shall apply even if an order under paragraph (1) 
is requested--
            ``(A) by motion pursuant to rule 26(c) of the Federal Rules 
        of Civil Procedure; or
            ``(B) by application pursuant to the stipulation of the 
        parties.
    ``(5)(A) The provisions of this section shall not constitute 
grounds for the withholding of information in discovery that is 
otherwise discoverable under rule 26 of the Federal Rules of Civil 
Procedure.
    ``(B) No party shall request, as a condition for the production of 
discovery, that another party stipulate to an order that would violate 
this section.
    ``(b)(1) In any civil action in which the pleadings state facts 
that are relevant to the protection of public health or safety, a court 
shall not approve or enforce any provision of an agreement between or 
among parties to a civil action, or approve or enforce an order subject 
to subsection (a)(1), that prohibits or otherwise restricts a party 
from disclosing any information relevant to such civil action to any 
Federal or State agency with authority to enforce laws regulating an 
activity relating to such information.
    ``(2) Any such information disclosed to a Federal or State agency 
shall be confidential to the extent provided by law.
    ``(c)(1) Subject to paragraph (2), a court shall not enforce any 
provision of a settlement agreement in any civil action in which the 
pleadings state facts that are relevant to the protection of public 
health or safety between or among parties that prohibits one or more 
parties from--
            ``(A) disclosing that a settlement was reached or the terms 
        of such settlement that involve matters relevant to the 
        protection of public health or safety, other than the amount of 
        money paid; or
            ``(B) discussing the civil action, or evidence produced in 
        the civil action, that involves matters related to public 
        health or safety.
    ``(2) Paragraph (1) applies unless the court has made independent 
findings of fact that--
            ``(A) the public interest in the disclosure of potential 
        health or safety hazards is outweighed by a specific and 
        substantial interest in maintaining the confidentiality of the 
        information or records in question; and
            ``(B) the requested order is no broader than necessary to 
        protect the confidentiality interest asserted.
    ``(d) When weighing the interest in maintaining confidentiality 
under this section, there shall be a rebuttable presumption that the 
interest in protecting personally identifiable information relating to 
financial, health or other similar information of an individual 
outweighs the public interest in disclosure.
    ``(e) Nothing in this section shall be construed to permit, 
require, or authorize the disclosure of classified information (as 
defined under section 1 of the Classified Information Procedures Act 
(18 U.S.C. App.)).''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 111 of title 28, United States Code, is amended by adding after 
the item relating to section 1659 the following:

``1660. Restrictions on protective orders and sealing of cases and 
                            settlements.''.
    (c) Rule of Construction.--Nothing in the amendments made by this 
act shall be construed to weaken or to limit--
            (1) existing common law or constitutional standards for 
        information access; or
            (2) confidentiality protections as a basis for a protective 
        order.

SEC. 3. EFFECTIVE DATE.

    The amendments made by this Act shall--
            (1) take effect 30 days after the date of enactment of this 
        Act; and
            (2) apply only to orders entered in civil actions or 
        agreements entered into on or after such date.

Summary: Sunshine in Litigation Act of 2010 - Amends the federal judicial code to prohibit a court, in any civil action in which the pleadings state facts relevant to the protection of public health or safety, from entering an order restricting the disclosure of information obtained through discovery, approving a settlement agreement that would restrict such disclosure, or restricting access to court records, unless in connection with such order the court has first made independent findings of fact that: (1) the order would not restrict the disclosure of information relevant to the protection of public health or safety; or (2) the public interest in the disclosure of potential health or safety hazards is outweighed by a specific and substantial interest in maintaining the confidentiality of the information, and the requested order is no broader than necessary to protect the confidentiality interest asserted. Prohibits any party from requesting, as a condition for the production of discovery, that another party stipulate to an order that would violate this Act.

Prohibits a court, again in any such civil action, from: (1) approving or enforcing any provision of an agreement between or among parties to the civil action, or an order entered under this Act, that restricts a party from disclosing information to any federal or state agency with authority to enforce laws regulating an activity relating to such information; or (2) enforcing any provision of a settlement agreement between or among parties to such civil action that prohibits a party from disclosing that a settlement was reached or the terms of the settlement involve matters relevant to the protection of public health or safety, other than the amount paid, or from discussing the civil action, or evidence produced in it, that involves matters related to public health or safety. Excepts from this enforcement prohibition (thus allowing enforcement of) a settlement agreement provision about which the court finds that the public interest in the disclosure of potential health or safety hazards is outweighed by a specific and substantial interest in maintaining the confidentiality of the information or records in question, and the requested protective order is no broader than necessary to protect the confidentiality interest asserted.

Creates a rebuttable presumption that the interest in protecting personally identifiable information relating to an individual's financial, health, or other similar information outweighs the public interest in disclosure.

Declares that nothing in this Act shall be construed to permit, require, or authorize the disclosure of classified information, as defined under the Classified Information Procedures Act.