The Senate Judiciary and Labor Committee added a very restrictive definition of UPL to a bill with different content but the right title (similar to a gut and replace, but adding to the existing content instead of adding new content while deleting the old content). The new language is:
"(b) For purpose of this section, "practice of law" means the provision of professional legal advice or services by a person, firm, association, or corporation if there is an attorney-client relationship of trust and reliance; provided that the term "practice of law" does not include a person, firm, association, or corporation that is licensed under chapters 431, 466, or 467, and is doing business accordingly, and while in the course of doing the licensed business does not provide or profess to provide professional legal advice or services based on legal competency or standing in the law."
Did this language create a big hole in the law? The first sentence encompasses "legal advice or services." What is a legal service? The exemption for Chapters 431, 466, and 467 cover insurance companies, realtors, and accountants. This excludes everyone else who might provide legal "services," which can be much broader than legal advice, such as hospitals (which pass out advance health care directives ("living wills")) and have to explain their legal implications, mortgage companies (who have to explain the legal consequences of the choices people make in buying property), etc.
HPA sent key legislators a letter in opposition, as did the Hawaii State Bar Association. The bill passed out of conference committee, but without the UPL language.
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