BILL REQ. #:  S-3825.3 

Read first time 01/20/2004.   Referred to Committee on Commerce & Trade.

     AN ACT Relating to industrial insurance appeals; and amending RCW 51.52.132, 51.52.120, and 51.52.130.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 51.52.132 and 1965 ex.s. c 63 s 2 are each amended to read as follows:
     ((Where the department, the board or the court, pursuant to RCW 51.52.120 or 51.52.130 fixes the attorney's fee, it shall be)) (1) It is unlawful for an attorney engaged in the representation of any worker or beneficiary to charge or receive any fee for services rendered in connection with securing benefits under this title in excess of ((that)) the lesser of:
     (a) Twenty percent of the compensation awarded under chapter 51.32 RCW; or
     (b) The amount fixed by the department, board, or the court under RCW 51.52.120.
     (2) The department shall notify any worker or beneficiary represented by an attorney that the attorney's fee is restricted as provided in subsection (1)(a) and (b) of this section.
     (3) An attorney who is entitled to a fee under this chapter shall be paid by the worker or beneficiary he or she has represented out of that worker or beneficiary's compensation awarded under chapter 51.32 RCW. The department shall not pay the attorney's fee separately from the compensation award.
     (4) Any person who violates any provision of this section ((shall be)):
     (a) Is guilty of a misdemeanor; and
     (b) From the date of conviction under (a) of this subsection, may not engage in the representation for a fee of a worker or beneficiary in connection with securing benefits under this title.

Sec. 2   RCW 51.52.120 and 2003 c 53 s 285 are each amended to read as follows:
     (1) ((It shall be unlawful for an attorney engaged in the representation of any worker or beneficiary to charge for services in the department any fee in excess of a reasonable fee, of not more than thirty percent of the increase in the award secured by the attorney's services. Such reasonable fee shall be fixed by)) For services rendered before the department in connection with securing benefits under this title, the director or the director's designee shall fix a reasonable fee, subject to RCW 51.52.132, for services performed by an attorney for ((such)) a worker or beneficiary, if written application therefor is made by the attorney, worker, or beneficiary within one year from the date the final decision and order of the department is communicated to the party making the application.
     (2)(a) If, on appeal to the board, the order, decision, or award of the department is reversed or modified and additional relief is granted to a worker or beneficiary, or in cases where a party other than the worker or beneficiary is the appealing party and the worker's or beneficiary's right to relief is sustained by the board, the board shall fix a reasonable fee, subject to RCW 51.52.132, for the services of ((his or her)) the worker's or beneficiary's attorney in proceedings before the board if written application therefor is made by the attorney, worker, or beneficiary within one year from the date the final decision and order of the board is communicated to the party making the application.
     (b) In fixing the ((amount of such attorney's)) fee, the board shall take into consideration the fee ((allowed)), if any, fixed by the director or the director's designee, for the attorney's services before the department, and the board may review the fee fixed by the director or the director's designee.
     (3)(a) If, on appeal to the superior or appellate court from the decision and order of the board, the decision and order is reversed or modified and additional relief is granted to a worker or beneficiary, or in cases where a party other than the worker or beneficiary is the appealing party and the worker's or beneficiary's right to relief is sustained, the court shall fix a reasonable fee, subject to RCW 51.52.132, for the services before the court of the worker's or beneficiary's attorney.
     (b) In fixing the fee, the court shall take into consideration the fee or fees, if any, fixed by the director or the director's designee or the board for the attorney's services before the department and the board under subsections (1) and (2) of this section.
     (4) Any attorney's fee ((set)) fixed by the ((department)) director or the director's designee or the board may be reviewed by the superior court upon application of such attorney, worker, or beneficiary. The department or self-insured employer, as the case may be, shall be served a copy of the application and shall be entitled to appear and take part in the proceedings. ((Where the board, pursuant to this section, fixes the attorney's fee, it shall be unlawful for an attorney to charge or receive any fee for services before the board in excess of that fee fixed by the board.
     (3) Any person who violates this section is guilty of a misdemeanor.))

Sec. 3   RCW 51.52.130 and 1993 c 122 s 1 are each amended to read as follows:
     ((If, on appeal to the superior or appellate court from the decision and order of the board, said decision and order is reversed or modified and additional relief is granted to a worker or beneficiary, or in cases where a party other than the worker or beneficiary is the appealing party and the worker's or beneficiary's right to relief is sustained, a reasonable fee for the services of the worker's or beneficiary's attorney shall be fixed by the court. In fixing the fee the court shall take into consideration the fee or fees, if any, fixed by the director and the board for such attorney's services before the department and the board. If the court finds that the fee fixed by the director or by the board is inadequate for services performed before the department or board, or if the director or the board has fixed no fee for such services, then the court shall fix a fee for the attorney's services before the department, or the board, as the case may be, in addition to the fee fixed for the services in the court.)) If, in a worker or beneficiary appeal to the superior or appellate court from the decision and order of the board, the decision and order of the board is reversed or modified and if the accident fund or medical aid fund is affected by the litigation, or if in an appeal by the department or employer the worker or beneficiary's right to relief is sustained, or in an appeal by a worker involving a state fund employer with twenty-five employees or less, in which the department does not appear and defend, and the board order in favor of the employer is sustained, the attorney's fee permitted under RCW 51.52.132 and fixed by the court under RCW 51.52.120, for services before the court only, and the fees of medical and other witnesses and the costs shall be payable out of the administrative fund of the department. In the case of self-insured employers, the attorney's fee((s)) permitted under RCW 51.52.132 and fixed by the court under RCW 51.52.120, for services before the court only, and the fees of medical and other witnesses and the costs shall be payable directly by the self-insured employer.