Report Title:
Unauthorized Practice of Law
Description:
Clarifies conditions relating to the unauthorized practice of law; defines "legal advice" and "legal options".
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1618 |
TWENTY-SECOND LEGISLATURE, 2003 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
reLating to unauthorized practice of law.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 605-14, Hawaii Revised Statutes, is amended to read as follows:
"§605-14 Unauthorized practice of law prohibited. (a) It shall be unlawful for any person, firm, association, or corporation to engage in or attempt to engage in or to offer to engage in the practice of law, or to do or attempt to do or offer to do any act constituting the practice of law, except and to the extent that the person, firm, or association is licensed or authorized so to do by an appropriate court, agency, or office or by a statute of the State or of the United States. Nothing in sections 605-14 to 605-17 contained shall be construed to prohibit the preparation or use by any party to a transaction of any legal or business form or document used in the transaction.
(b) Notwithstanding subsection (a), a person, firm, association, or corporation may engage in the business of assisting any party to a transaction with the preparation of legal or business forms and documents used in the transaction for compensation as a self-help service to a member of the public who is a pro se party in a legal matter, subject to the following requirements:
(1) Satisfactory completion of a regulatory and credentialed process equivalent to the paralegal advanced competency exam by persons performing self-help service for compensation, or within the scope of a person's employment with: a title company, escrow company, mortgage company, or real estate office; financial advisors; bankers; and tax form preparers;
(2) Prominent use of the letters "RP" or "PACE Registered Paralegal" or an equivalent, in applicable business communications, correspondence, or related circumstances to reflect the person's certification; and
(3) Completion of twelve hours of continuing legal education every two years.
(c) The regulatory and credential process in subsection (b) shall be overseen by the department of commerce and consumer affairs, in conjunction with the attorney general, and shall be administered by the Hawaii State Bar Association.
(1) Persons having passed the exam required in subsection (b) shall be registered with the department of commerce and consumer affairs and the Hawaii State Bar Association, and shall be licensed to perform work assisting the general public in form preparation as provided in this section;
(2) In addition to paragraph (1), persons shall have had five years experience in the preparation of the type of documents used in the person's business. The experience shall have been under the supervision of a licensed attorney, and the supervising attorney shall have attested to the person's experience in a notarized, registered statement submitted to the Hawaii State Bar Association;
(3) Persons who have fulfilled the requirements of this section shall not provide legal advice to the party requesting assistance, but may provide legal options;
(4) "Legal advice" means informing a third party of the party's rights under the law or what course of action the person should take to affect the person's rights;
(5) "Legal options" means informing a third party in the available courses of action, allowing the person to make an educated decision as to the person's particular outcome;
(6) Persons who have fulfilled the requirements of this section may assist a third party in the preparation of documents in uncontested matters;
(7) In contested matters, only the documents required may be prepared by the self-help business at the sole direction and under the express supervision of the third party requesting the document; and
(8) The third party shall be physically present during the preparation of the documents."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.
INTRODUCED BY: |
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