STAND. COM. REP. NO 673

 

Honolulu, Hawaii

                

 

RE:    S.B. No. 1010

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Madam:

 

     Your Committees on Judiciary and Labor and Commerce and Consumer Protection, to which was referred S.B. No. 1010 entitled:

 

"A BILL FOR AN ACT RELATING TO THE UNAUTHORIZED PRACTICE OF LAW,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to:

 

     (1)  Establish that an attorney who is not licensed or authorized to practice law in the State commits the unauthorized practice of law when the attorney provides legal services to or for a person in the State;

 

     (2)  Add a definition of "legal services"; and

 

     (3)  Clarify that the unauthorized practice of law does not apply to an attorney providing legal services to an organization in another jurisdiction as in-house counsel or to an affiliated entity or employee of that organization in the State.

 

     Your Committees received testimony in support of this measure from two individuals.  Your Committees received testimony in opposition to this measure from the Department of the Attorney General.  Your Committees received comments on this measure from the Judiciary.

 

     Your Committees find that the Hawaii Supreme Court is authorized to regulate the examination, licensure, and discipline of attorneys licensed to practice law in Hawaii.  Despite the rules in place to regulate licensed attorneys in Hawaii, issues have arisen concerning the oversight of attorneys who conduct legal services in Hawaii, but are not licensed to practice law in this State.  By establishing an offense of unauthorized practice of law, this measure assists in protecting consumers in such situations.

 

     Your Committees recognize the efforts of the stakeholders developing language subsequent to the public hearing on this measure.

 

     Accordingly, your Committees have amended this measure by:

 

     (1)  Deleting the new section added to chapter 605, Hawaii Revised Statutes (HRS), and replacing it with language that amends section 605-14, HRS, that:

 

          (A)  Allows a person who is not licensed or authorized to practice law in the State to provide legal services on a temporary basis in this State if the attorney provides services in association with or assists a Hawaii licensed attorney or as in-house counsel to an organization in another jurisdiction or to an affiliated entity or employee of that organization in the State; and

 

          (B)  Requires the Clerk of the Supreme Court to maintain a registry of all attorneys who are not licensed or authorized to practice law in the State, but provide services for a matter that is not being litigated in any court of the State;

 

     (2)  Making conforming amendments to the attorney licensure requirements under section 605-2, HRS;

 

     (3)  Inserting an effective date of January 7, 2059, to encourage further discussion; and

 

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the records of votes of the members of your Committees on Judiciary and Labor and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1010, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1010, S.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committees on Judiciary and Labor and Commerce and Consumer Protection,

 

________________________________

ROSALYN H. BAKER, Chair

 

________________________________

GILBERT S.C. KEITH-AGARAN, Chair