Relating to litigation costs for prevailing claimants.

Increased the maximum cap for witness fees, expenses, and costs from $1,500 to $3,500 for claimants who win disputes over denied workers' compensation claims.

Added an annual indexing mechanism that adjusts the fee cap on July 1 each year based on the percentage increase in average weekly wages, ensuring the cap keeps pace with inflation and wage growth.

Reorganized the statute structure by moving the definition of 'denied claim' to a new subsection and consolidating fee award provisions into a single section for clarity.

Removed proposed new sections that would have created additional rules for costs and expenses in other types of disputes, limiting the bill to amendments of existing ORS 656.386.