EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0433*
SENATE BILL 433
K1 2lr0414
SB 951/21 – SRU CF 2lr3073
By: Senator Klausmeier
Introduced and read first time: January 26, 2022
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Labor and Employment – Workers’ Compensation Claims – Fees for Legal 2
Services 3
FOR the purpose of authorizing the Workers’ Compensation Commission, if there is no 4
compensation other than a medical benefit payable to a covered employee, to order 5
that a fee of not more than a certain amount for legal services rendered on behalf of 6
the covered employee be payable by the covered employee, an employer or its insurer, 7
a self–insured employer, or the Uninsured Employers’ Fund; exempting the ordered 8
fee from the requirement that a fee approved by the Commission be a lien on 9
compensation awarded; and generally relating to fees for legal services rendered in 10
connection with a workers’ compensation claim. 11
BY repealing and reenacting, with amendments, 12
Article – Labor and Employment 13
Section 9–731 14
Annotated Code of Maryland 15
(2016 Replacement Volume and 2021 Supplement) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Labor and Employment 19
9–731. 20
(a) (1) Unless approved by the Commission, a person may not charge or collect 21
a fee for: 22
(i) legal services in connection with a claim under this title; 23
(ii) medical services, supplies, or treatment provided under Subtitle 24 2 SENATE BILL 433
6, Part IX of this title; or 1
(iii) funeral expenses under Subtitle 6, Part XIII of this title. 2
(2) IF NO COMPENSATION OT HER THAN A MEDICAL B ENEFIT IS 3
PAYABLE TO THE COVER ED EMPLOYEE , THE COMMISSION MAY ORDER THAT A FEE 4
OF NOT MORE TH AN $2,000 FOR LEGAL SERVICES R ENDERED ON BEHALF OF THE 5
COVERED EMPLOYEE BE PAYABLE BY: 6
(I) THE COVERED EMPLOYEE ; 7
(II) THE EMPLOYER OR ITS INSURER; 8
(III) A SELF–INSURED EMPLOYER ; OR 9
(IV) THE UNINSURED EMPLOYERS’ FUND. 10
[(2)] (3) [When] EXCEPT FOR A FEE THAT THE COMMISSION ORDERS 11
UNDER PARAGRAPH (2) OF THIS SUBSECTION , WHEN the Commission approves a fee, 12
the fee is a lien on the compensation awarded. 13
[(3)] (4) Notwithstanding paragraph [(2)] (3) of this subsection, a fee 14
shall be paid from an award of compensation only in the manner set by the Commission. 15
(b) (1) The Commission may order that a fee payable from compensation under 16
subsection (a) of this section be paid in a lump sum. 17
(2) If the Commission grants a lump–sum payment under paragraph (1) of 18
this subsection, the Commission shall: 19
(i) reduce the weekly rate of compensation until the amount of the 20
lump sum would have been paid if it had been paid in weekly payments; and 21
(ii) state in the award the dollar amount and the number of weeks 22
that the reduced rate shall be paid by: 23
1. the employer or its insurer; or 24
2. if payments are made from the Subsequent Injury Fund, 25
the Subsequent Injury Fund. 26
(c) On application of a party, the Commission may: 27
(1) hear and decide any question concerning legal services performed in 28
connection with a claim; and 29
SENATE BILL 433 3
(2) order a person who received a fee for legal services to refund to the 1
payer any part of the fee that the Commission may find to be excessive. 2
(d) An order of the Commission regulating payment or refund of payment for legal 3
services may be enforced or appealed in the same manner as a compensation award. 4
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 5
apply only prospectively and may not be applied or interpreted to have any effect on or 6
application to any claims arising from events occurring before the effective date of this Act. 7
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2022. 9