Bill Text: HI SB1427 | 2012 | Regular Session | Introduced
Bill Title: Legal Document Assistants; Licensing
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [SB1427 Detail]
Download: Hawaii-2012-SB1427-Introduced.html
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THE SENATE |
S.B. NO. |
1427 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO LEGAL DOCUMENTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to title 25 to be appropriately designated and to read as follows:
"Chapter
legal document assistants
§ ‑1 Definitions. As used in this chapter:
"Board" means the board of legal document assistants.
"Legal advice" means informing a third party of their rights under the law on what they should or should not do to affect their rights.
"Legal document assistant" means an individual who engages in the business of assisting any party to a legal transaction with the preparation of legal forms and documents used in the transaction:
(1) For compensation as a service to a person who is representing the person's self in a legal matter; or
(2) Within the scope of that individual's employment with a title company, escrow company, mortgage company, real estate office, financial advisor, banker, or tax form preparer;
provided that the services are not performed within the scope of employment with or under the direct supervision of an attorney licensed to practice in the state of Hawaii. Legal document assistant includes paralegals, legal secretaries, legal assistants, and legal document preparers who do not perform the services listed in this definition within the scope of employment with or under the direct supervision of an attorney licensed to practice in the state of Hawaii.
§ ‑1 License Required. (a) No person shall for commercial purposes provide or offer to provide services as a legal document assistant, offer to so practice, or announce or advertise that person's self publicly or privately as prepared or qualified to perform services as a legal document assistant without having a valid unrevoked license from the State.
(b) This chapter shall not apply to services provided as a legal document assistant, paralegal, legal secretary, legal assistant, or legal document preparer within the scope of employment with or under the direct supervision of an attorney licensed to practice in the State of Hawaii.
§ ‑2 Minimum requirements. An applicant for a legal document assistant license shall at a minimum:
(1) Hold a certificate of completion of an exam or paralegal program as approved by the board, possess an aggregate of five years or more of professional experience in the preparation of legal documents and forms under the supervision of a licensed attorney, and submit to the board a notarized, registered statement by the supervising attorney attesting to the applicant's experience; or
(2) Possess an aggregate of ten years or more of professional experience in the preparation of legal documents and submit to the board a notarized, registered statement by the supervising attorney attesting to the applicant's experience.
§ ‑3 Restrictions on services performed. (a) Legal document assistants licensed in accordance with this chapter may assist parties to a transaction in the preparation of legal forms and documents only to the extent that the forms and documents are standardized forms generated by entities other than the legal document assistant, including court forms, leases, and applications.
(b) A legal document assistant shall not:
(1) Generate and prepare legal documents or forms that are not standardized forms;
(2) Provide legal advice;
(3) Represent a client in court;
(4) Engage in conduct that constitutes the unauthorized practice of law pursuant to section 605-14; and
(5) Otherwise violate any rules adopted by the board pursuant to this chapter.
(c) A legal document assistant may prepare documents for a party only with the party's express authorization and approval.
§ ‑4 Board of legal document assistants. A board of legal document assistants is created and shall consist of seven persons. Two of the members shall be licensed or retired attorneys, two of the members shall be legal document assistants licensed in accordance with this chapter, and three of the members shall be private citizens not connected with the legal profession; provided that the initially appointed members who shall be legal document assistants need not be licensed under this chapter but shall meet the requirements in section ‑2.
§ ‑5 Powers and duties of the board. In addition to any other powers and duties as prescribed by law, the board shall:
(1) Adopt rules in accordance with chapter 91 to carry out the purposes of this chapter;
(2) Compile a list of acceptable programs or exams that, if completed by an applicant, shall fulfill the requirement for licensure under section ‑2(1);
(3) Compile a list of acceptable continuing legal education courses for licensees to fulfill the requirements of section ‑6;
(4) Issue, renew, suspend, and revoke licenses;
(5) Register applicants or holders of a license;
(6) Investigate and conduct hearings regarding any violations of this chapter and any rules of the board;
(7) Maintain a record of its proceedings; and
(8) Do all things necessary to carry out the functions powers and duties of this chapter.
§ ‑6 Biennial renewal. Every person holding a license under this chapter shall pay to the board a biennial fee, complete at least twelve hours of continuing legal education every two years, and provide proof of completion of the continuing legal education before renewing a license. Failure to fulfill the continuing legal education requirement or pay the biennial fee shall constitute a forfeiture of the license as of the date of expiration. Any license so forfeited may be restored within one year after the expiration upon filing of an application and payment of a restoration fee.
§ ‑7 Revocation or suspension of license. In addition to any other actions authorized by law, any license to perform services as a legal document assistant may be revoked or suspended by the board of legal document assistants at any time in a proceeding before the board for any cause authorized by law including:
(1) Providing legal advice;
(2) Representing a client in court;
(3) Engaging in conduct that constitutes the unauthorized practice of law pursuant to section 605-14;
(4) The use of false, fraudulent, or deceptive advertising and making untruthful and improbable statements;
(5) Procuring a license through fraud, misrepresentation, or deceit;
(6) Professional misconduct or gross carelessness or manifest incapacity in the provision of services as a legal document assistant; and
(7) Violating any rules adopted pursuant to this chapter.
§ ‑8 Penalty. (a) Any person except a person licensed under this chapter who performs services as a legal document assistant without a valid license issued by the board, or uses any word or title to induce the belief that the person is licensed to provide services as a legal document assistant, shall be guilty of a misdemeanor and subject to a fine of not less than $50 and not more than $1,000 for each violation.
(b) Any person, except a legal document assistant licensed under this chapter, who:
(1) Performs services as a legal document assistant;
(2) Buys, sells, or fraudulently obtains any diploma or license to perform services as a legal document assistant;
(3) Uses the title or any word or title to induce the belief that the person is engaged in performing services as a legal document assistant without complying with this chapter; or
(4) Violates this chapter;
shall be penalized as provided in subsection (a). The department may also seek all legal and equitable remedies available to it for the enforcement of the provisions of this chapter, including seeking injunctive relief.
§ ‑9 Use of titles. A licensee who has been awarded a license to perform services as a legal document assistant by the board in this State may use only the title of "Certified Document Assistant" or "C.D.A." with the licensee's name in an advertisement for legal document assistance or announce or append the designation to the licensee's name; the use of other titles, prefixes, or designations shall not be permitted."
SECTION 2. Section 605-14, Hawaii Revised Statutes, is amended to read as follows:
"§605-14 Unauthorized practice of law
prohibited. 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[.] or to prohibit the performance
of services by legal document assistants in accordance with chapter
."
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.
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INTRODUCED BY: |
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Report Title:
Legal Document Assistants; Licensing
Description:
Establishes a new chapter in the Hawaii Revised Statutes detailing licensing requirements for legal document assistants who are not under the direct supervision of a licensed attorney.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
