Maryland 2022 Regular Session

Maryland Senate Bill SB433 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0433
6	6
7	7	SENATE BILL 433
8	8	K1 2lr0414
9	9	SB 951/21 – SRU CF 2lr3073
10	10	By: Senator Klausmeier
11	11	Introduced and read first time: January 26, 2022
12	12	Assigned to: Finance
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Labor and Employment – Workers’ Compensation Claims – Fees for Legal 2
19	19	Services 3
20	20
21	21	FOR the purpose of authorizing the Workers’ Compensation Commission, if there is no 4
22	22	compensation other than a medical benefit payable to a covered employee, to order 5
23	23	that a fee of not more than a certain amount for legal services rendered on behalf of 6
24	24	the covered employee be payable by the covered employee, an employer or its insurer, 7
25	25	a self–insured employer, or the Uninsured Employers’ Fund; exempting the ordered 8
26	26	fee from the requirement that a fee approved by the Commission be a lien on 9
27	27	compensation awarded; and generally relating to fees for legal services rendered in 10
28	28	connection with a workers’ compensation claim. 11
29	29
30	30	BY repealing and reenacting, with amendments, 12
31	31	Article – Labor and Employment 13
32	32	Section 9–731 14
33	33	Annotated Code of Maryland 15
34	34	(2016 Replacement Volume and 2021 Supplement) 16
35	35
36	36	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
37	37	That the Laws of Maryland read as follows: 18
38	38
39	39	Article – Labor and Employment 19
40	40
41	41	9–731. 20
42	42
43	43	(a) (1) Unless approved by the Commission, a person may not charge or collect 21
44	44	a fee for: 22
45	45
46	46	(i) legal services in connection with a claim under this title; 23
47	47
48	48	(ii) medical services, supplies, or treatment provided under Subtitle 24 2 SENATE BILL 433
49	49
50	50
51	51	6, Part IX of this title; or 1
52	52
53	53	(iii) funeral expenses under Subtitle 6, Part XIII of this title. 2
54	54
55	55	(2) IF NO COMPENSATION OT HER THAN A MEDICAL B ENEFIT IS 3
56	56	PAYABLE TO THE COVER ED EMPLOYEE , THE COMMISSION MAY ORDER THAT A FEE 4
57	57	OF NOT MORE TH AN $2,000 FOR LEGAL SERVICES R ENDERED ON BEHALF OF THE 5
58	58	COVERED EMPLOYEE BE PAYABLE BY: 6
59	59
60	60	(I) THE COVERED EMPLOYEE ; 7
61	61
62	62	(II) THE EMPLOYER OR ITS INSURER; 8
63	63
64	64	(III) A SELF–INSURED EMPLOYER ; OR 9
65	65
66	66	(IV) THE UNINSURED EMPLOYERS’ FUND. 10
67	67
68	68	[(2)] (3) [When] EXCEPT FOR A FEE THAT THE COMMISSION ORDERS 11
69	69	UNDER PARAGRAPH (2) OF THIS SUBSECTION , WHEN the Commission approves a fee, 12
70	70	the fee is a lien on the compensation awarded. 13
71	71
72	72	[(3)] (4) Notwithstanding paragraph [(2)] (3) of this subsection, a fee 14
73	73	shall be paid from an award of compensation only in the manner set by the Commission. 15
74	74
75	75	(b) (1) The Commission may order that a fee payable from compensation under 16
76	76	subsection (a) of this section be paid in a lump sum. 17
77	77
78	78	(2) If the Commission grants a lump–sum payment under paragraph (1) of 18
79	79	this subsection, the Commission shall: 19
80	80
81	81	(i) reduce the weekly rate of compensation until the amount of the 20
82	82	lump sum would have been paid if it had been paid in weekly payments; and 21
83	83
84	84	(ii) state in the award the dollar amount and the number of weeks 22
85	85	that the reduced rate shall be paid by: 23
86	86
87	87	1. the employer or its insurer; or 24
88	88
89	89	2. if payments are made from the Subsequent Injury Fund, 25
90	90	the Subsequent Injury Fund. 26
91	91
92	92	(c) On application of a party, the Commission may: 27
93	93
94	94	(1) hear and decide any question concerning legal services performed in 28
95	95	connection with a claim; and 29
96	96	SENATE BILL 433 3
97	97
98	98
99	99	(2) order a person who received a fee for legal services to refund to the 1
100	100	payer any part of the fee that the Commission may find to be excessive. 2
101	101
102	102	(d) An order of the Commission regulating payment or refund of payment for legal 3
103	103	services may be enforced or appealed in the same manner as a compensation award. 4
104	104
105	105	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 5
106	106	apply only prospectively and may not be applied or interpreted to have any effect on or 6
107	107	application to any claims arising from events occurring before the effective date of this Act. 7
108	108
109	109	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
110	110	October 1, 2022. 9
111	111