HB1709

Report Title:

Workers' Compensation; Attorneys' Fees

Description:

Provides criteria for the director of labor and industrial relations to consider when approving attorneys' fees for workers' compensation cases. Provides the chairperson of the Hawaii labor and industrial relations appeals board the same salary as circuit court judges.

HOUSE OF REPRESENTATIVES	H.B. NO.	1709
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

 

RELATING TO LABOR AND INDUSTRIAL RELATIONS.

 

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

SECTION 1. Section 371-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is created a labor and industrial relations appeals board composed of three members nominated and, by and with the advice and consent of the senate, appointed by the governor for terms of ten years each, except that the terms of members first appointed shall be for six, eight, and ten years respectively as designated by the governor at the time of appointments. The governor shall designate the chairperson of the board who shall be an attorney at law licensed to practice in all of the courts of this State. Each member shall hold office until the member's successor is appointed and qualified. Because cumulative experience and continuity in office are essential to the proper handling of appeals under workers' compensation law and other labor laws, it is hereby declared to be in the public interest to continue board members in office as long as efficiency is demonstrated. The members shall devote full time to their duties as members of the board. Effective January 1, [1989, and January 1, 1990,] 2002, the salary of the chairperson of the board shall be [set by the governor within the range from $69,748 to $74,608 and $72,886 to $77,966 a year, respectively, and the salary of each] the same as the salary of a circuit court judge. Each of the other members shall be paid a salary at the rate of ninety-five per cent of the chairperson's salary."

SECTION 2. Section 386-94, Hawaii Revised Statutes, is amended to read as follows:

"§386-94 Attorneys, physicians, other health care providers, and other fees. (a) Claims for services shall not be valid unless approved by the director or, if an appeal is had, by the appellate board or court deciding the appeal. Any claim so approved shall be a lien upon the compensation in the manner and to the extent fixed by the director, the appellate board, or the court. The following factors may be considered in approving attorneys' fees:

(1) The comparable hourly rates charged by attorneys who are engaged in other areas of civil litigation in Hawaii; and

(2) The hourly rates that have been approved by state and federal courts in Hawaii as a reasonable hourly civil litigation rate for attorneys.

(b) Any person who receives any fee, other consideration, or gratuity on account of services so rendered, without approval, in conformity with the preceding paragraph, shall be fined by the director not more than $10,000."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________