****************************************************************************************** AGENDA ALABAMA STATE BAR BOARD OF BAR COMMISSIONERS MEETING

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1 ****************************************************************************************** AGENDA ALABAMA STATE BAR BOARD OF BAR COMMISSIONERS MEETING Alabama State Bar Montgomery, AL Friday, January 9, 2015 ****************************************************************************************** 10:00 a.m. I. ADMINISTRATIVE A. Call to Order 1. Pledge of Allegiance 2. Invocation 3. Roll Call 4. Introduction of Guests B. Approval of Minutes October 31, 2014 Board of Bar Commissioners Meeting II. SPECIAL GUEST: Presentation of the Albritton Award to Tom Methvin III. PUBLIC REPRIMANDS (3) IV. OFFICER / STAFF REPORTS A. President s Report Rich Raleigh B. Secretary s Report Keith Norman 1. Memorial Resolutions from the Mobile Bar Association 2. Travel Mileage Rate for 2015 C ASB Audit Report Michelle Owens D. Office of General Counsel Report Tony McLain E. Digital Communications Update Eric Anderson F. External Relations and Programs Update Ed Patterson G. Admissions Update Justin Aday H. Service Programs Update Laura Calloway

2 AGENDA January 9, 2015 PAGE 2 V. DISCUSSION ITEMS 1. OIDS Director Position VI. ACTION ITEMS 1. Rule III Applications 2. In-House Counsel and Public/Government Lawyers Section Bylaws 3. Solo and Small Firm Task Force Report (including approval of By-laws) - Sam Irby, Chair 4. Ratify Decision of the Executive Council re: Amicus Brief/Barney AFLCIO Motion VII. LOCAL LAWYER RECOGNITION

3 AGENDA January 9, 2015 PAGE 3 ****************************************************************************************** ****************************************************************************************** ALABAMA STATE BAR FOUNDATION BOARD OF TRUSTEES MEETING Alabama State Bar Montgomery, AL Friday, January 9, 2015 ****************************************************************************************** I. Approval of October 31, 2014 Board of Trustees Meeting Minutes II. Building Security Update ****************************************************************************************** ******************************************************************************************

4 MEMORANDUM TO: FROM: RE: Board of Bar Commissioners Keith B. Norman, Executive Director Action Items for January 9, 2015 Meeting DATE: January 5, Rule III Applications There are seven applicants seeking admission by motion pursuant to Rule III of the Rules Governing Admission to the Alabama State Bar. They are: Keri Ann Richardson Bevel (TX); Kelly Marie Breckenridge (MI); Nicholas Adam Danella (TN); Kelly Michael Hayes (MI); Sumpter Milligan McGowin, II (TN); Anastacia Warner Shelton (TN); and Carol Gene Wolf (VA). Each of the applicants meets the requirements of Rule III including character and fitness requirements. 2. In-Counsel and Public/Government Lawyers Section Bylaws A copy of those bylaws including the recommended amendments have been included with your meeting materials. 3. Solo and Small Firm Task Force Report (including approval of bylaws) Commissioner Irby has provided this information which is included with your meeting materials. 4. Ratify Decision of the Executive Council re: Amicus Brief inteague, et al vs Barney As you are aware, the Court of Civil Appeals ruling in this matter basically divested the bar of the authority to deal with an excessive fee challenge under the Alabama Rules of Professional Conduct. The case involved what is termed as double dipping with the attorneys receiving a fee on the workers comp claim as well as a separate fee on a negotiated decrease in a subrogation claim. The decision of the Court of the Civil Appeals has been appealed to the Supreme Court. As you were previously notified, the Executive Council authorized the Office of General Counsel to request leave to join the appeal as an amicus. The Executive Council acted because the filing deadline was December 7, KBN/dl

5 MINUTES ALABAMA STATE BAR BOARD OF BAR COMMISSIONERS MEETING State Bar Building Montgomery, Alabama Friday, October 31, CALL TO ORDER President Rich Raleigh convened this meeting of the Alabama State Bar Board of Commissioners at 10:00 a.m. in the board room of the Alabama State Bar building, Montgomery, Alabama. Commissioner Shattuck gave the invocation. 2. ROLL CALL The secretary called the roll of the commission and the following commissioners were present: Halron W. Turner Jerry L. Thornton Christy Crowe Jana Russell Garner Terri O. Tompkins Hays Webb William H. Broome Emily L. Baggett Leslie R. Barineau S. Greg Burge Robert G. Methvin, Jr. Teresa G. Minor Allison O. Skinner Brannon Buck Kenneth Moore Ralph E. Holt Thad Yancey, Jr. Henry A. Callaway, III Walter H. Honeycutt Juan Ortega James Rebarchak James R. Beaird George R. Parker Les Pittman J. Flynn Mozingo Cole Portis Jeffery C. Duffey James David Martin Donald Rhea Tom Perry, Jr. William Randall May Anne Malatia Glass Robert L. Bowers, Jr. Cliff Mendheim Eric Coale Thomas B. Albritton John A. Brinkley, Jr. Rebekah K. McKinney Daryl Burt F. Patrick Loftin Allan Chason Sam Irby Erskine R. Funderburg, Jr. Lee F. Knowles Sharon Hindman Hester Roger W. Pierce John M. Plunk Gregory M. Varner Scott L. McPherson Diandra S. Debrosse Cooper Shattuck Meredith S. Peters Rebecca G. DePalma Alicia F. Bennett Kira Fonteneau Jeanne Dowdle Rasco Monet M. Gaines The following commissioners were absent: Charles G. Reynolds, Jr. Rocky Watson Barry A. Ragsdale Augusta S. Dowd Derrick A. Mills Clay A. Lanham Julia C. Kimbrough Tazewell T. Shepard, III John Earl Paluzzi Jerry Wayne Baker, Jr. Robert L. Rumsey H. Thomas Heflin, Jr. Jason P. Knight W. Thomas Chapman, II Stephen M. Kennamer Ashley Swink Fincher

6 2 In addition, President-elect Lee Copeland and Immediate Past President Anthony Joseph were in attendance. Staff members present included Tony McLain, Justin Aday, Diane Locke, Margaret Murphy, Laura Calloway, Ed Patterson, Christina Butler, Eric Anderson, Jeremy McIntire, Mark Moody, Tripp Vickers, Michelle Owens, Angela Parks, Linda Lund, Kelley Lee and Robert Thornhill. Suzi Edwards, legislative counsel, and Tracy Daniel, director of the Alabama Law Foundation were in attendance. Brandon Hughey, president of the Young Lawyers Section was also present. 3. INTRODUCTION OF GUESTS President Raleigh introduced the following law students who served on the Pro Bono Celebration Task Force: Jessica Shaver and Aigner Kolom, Jones Law School and Queena A. Ruffin, University of Alabama School of Law. 4. APPROVAL OF THE MINUTES OF SEPTEMBER 19, 2014 ALABAMA STATE BAR BOARD OF COMMISSIONERS MEETING President Raleigh stated that the minutes of the September 19, 2014 Board of Commissioners meeting had been transcribed and circulated prior to the meeting. asked if there were any corrections, additions or deletions. There were none. He COMMISSIONER BROOME MOVED TO APPROVE THE MINUTES OF THE SEPTEMBER 19, 2014 BOARD MEETING. THE MOTION WAS SECONDED AND APPROVED BY UNANIMOUS VOICE VOTE. 5. REPORT OF RICKY MCKINNEY, DIRECTOR OF THE OFFICE OF INDIGENT DEFENSE SERVICES (OIDS) President Raleigh recognized Mr. Ricky McKinney, director of the Office of Indigent Defense Services. Mr. McKinney informed the commission that the public defender program has been organized in Montgomery County with Aylia McKee as the program s first director. He stated that the public defender s office will be located in the Shorter Mansion next to the county courthouse and begin operations by January with 18 lawyers and approximately support staff. He also reported that the public defender s office in Jefferson County was operating well and expanding to 30 lawyers with more than 100 staff members. Mr. McKinney reported that the office had handled 5000 cases which constituted all of the criminal cases in Jefferson County. He explained that the Montgomery office would not initially handle capital cases. He also reported that the Escambia program had added two additional lawyers to its staff. Mr. McKinney reported that indigent defense costs were down this year (FY2014 $57 million vs. in FY13 $65 million) and that the quality of services being provided to indigent defendants was very good. He concluded his remarks by stating that the new system was working well across the state. President Raleigh thanked Mr. McKinney for his efforts to make OIDS a success and the commission gave Mr. McKinney a round of applause.

7 3 6. REPRIMANDS 6.a. Douglas Barron Lakeman, Birmingham, ASB Mr. Lakeman accepted a conditional guilty plea and received a public reprimand with general publication for violation of Rules 1.1, 1.3, 1.4(b), 7.1(b) and (c), 7.2(e) and 7.5(a) of the Alabama Rules of Professional Conduct (ARPC). 6.b. Mark Hampton Baxley, Dothan, ASB Mr. Baxley accepted a conditional guilty plea and received a public reprimand with general publication for violation of Rules 1.7(a) and (b), 4.1(b) and 4.3(a) of the ARPC. 6.c. Lance Eric Abbott, Eufaula, ASB Mr. Abbott received a public reprimand without general publication for violating Rules 1.3, 1.4(a) and (b), 1.6(d), 8.4(a) and (g) of the ARPC. 7. PRESIDENT S REPORT President Raleigh praised the state bar staff for their diligence in implementing the uniform invoice and report form. He reported that as of the day s meeting, 15,059 licenses and special memberships had been issued which was ahead of last year despite several problems encountered in the backend operations. President Raleigh next read a proposed resolution honoring Margaret Murphy on the occasion of her 30 years of service to the Alabama State Bar. The resolution has as follows: WHEREAS, Margaret Murphy began working for the Alabama State Bar in October of 1984 as managing editor and later as director of publications for The Alabama Lawyer; and WHEREAS, for the last thirty years Margaret has worked faithfully and conscientiously with the magazine s only two editors and its Board, to bring Alabama lawyers a nationally acclaimed professional journal that is informative, with insightful and practice oriented articles; and WHEREAS, Margaret has directed the publication of 180 issues of The Alabama Lawyer during her tenure at the Alabama State Bar. NOW, THEREFORE, BE IT RESOLVED by the Board of Bar Commissioners of the Alabama State Bar, this day assembled, that Margaret Murphy has rendered exceptional service to the Alabama State Bar and its members and that she is hereby praised for her many years of dedication and loyalty and honored for her long time management of the bar s magazine. BE IT FURTHER RESOLVED that this resolution be recorded in the permanent minutes of this association and that Ms. Murphy be presented a copy in grateful appreciation for her many years of service. Done this the 31 st day of October 2014.

8 4 COMMISSIONER BENNETT MOVED TO SUSPEND THE RULES IN ORDER TO TAKE UP THE PROPOSED RESOLUTION OUT OF ORDER. THE MOTION WAS SECONDED AND APPROVED BY THE NECESSARY TWO-THIRDS VOTE. COMMISSIONER GAINES MOVED TO ADOPT THE RESOLUTION. THE MOTION WAS SECONDED AND APPROVED. President Raleigh concluded by stating that he had attended the admissions ceremony earlier in the week and that the commission would hear about the success of Pro Bono Month later in the meeting. 8. SECRETARY S REPORT The secretary had an abbreviated report. He informed the commission that Commissioner Barineau had been elected treasurer of the National Conference of Bar Foundations which would place her in line to become the first person from the state of Alabama to serve as president of the National Conference of Bar Foundations. 9. FINANCIAL REPORT Director of Finance, Michelle Owens reviewed both the quarterly and year-end report for FY Following her report, she asked if there were any questions. There were none. 10. OFFICE OF GENERAL COUNSEL REPORT Mr. McLain stated that the bar had received a recent order from the Supreme Court regarding disciplinary hearing officers which was considerably different from what the state bar had originally proposed. (A copy of the proposed rules had been previously circulated to the members of the commission.) He next reported that the Disciplinary Commission was considering issuing a formal opinion about legal fees in workers comp cases known as double dipping. (i.e., The lawyer receives a separate fees from the comp claim and for a negotiated decrease in the subrogation claim made by the insurance company.) He stated that a formal opinion may not be necessary depending on how the case is decided by the Court of Civil Appeals on a second request for rehearing, or on its appeal to the Alabama Supreme Court. He stated that the case is referred to as Barney 1. President Raleigh recognized Commissioner Rhea, who is handling the appeal of the Case (Barney 1). Commissioner Rhea gave an overview of the case and its posture on appeal. He noted that it was a very convoluted case and that on rehearing he had argued that it was really an excess fee case and a matter for the Alabama State Bar to handle. He reported that the Court of Civil Appeals withdrew the original opinion, Barney 1, and filed a substitute opinion which he referred to as Barney 2. He stated that he filed a second application for rehearing because of the substantial nature of the changes made in the substitute opinion. Commissioner Rhea concluded that the implications of bringing the Alabama Rules of Professional Conduct into the litigation arena were very disturbing. Commissioner Crow commented about fees on underlying cases when a subrogation claim is negotiated downward. She remarked that such a practice is questionable at best.

9 5 Mr. McLain concluded by stating that he welcomed the commission s input on these matters. 11. DIGITAL COMMUNICATIONS REPORT Mr. Anderson reported that the consolidated fee statement had been very successful but that efforts were still underway to improve the process. He stated that he would be contacting firm administrators to get feedback on how the system worked with respect to firms using the e-check apparatus, without charge, to pay for all firm member fees. He noted that with the utilization of the consolidated invoice, online usage was up this year, thus far, by 12 percent in addition to a substantial increase in the e-check payments. Mr. Anderson also reported that a redesign of the state bar database was in order. He emphasized that this would be a big project and be done over most of next year. He concluded by informing the commission that a revision to the broadcast policy was being considered. 12. EXTERNAL RELATIONS REPORT President Raleigh reported for Mr. Patterson who was attending a funeral. He stated that the stats on the Leadership Forum had been included in the materials and that a law school summit would be held the following week with all of Alabama s in-state law schools participating. 13. ADMISSIONS REPORT Mr. Aday reported that a letter had been transmitted to the court with an analysis of the July bar exam results. He discussed the lower pass rate on the July bar exam. He noted that it was down approximately nine percent from the previous year. He stated that based on raising the cut-score and eliminating re-grades had been insignificant factors in the decline in the overall pass rate. Mr. Aday informed the commission that the letter to the Supreme Court outlining the lower pass rate and that the recent changes had less than a two percent impact on the overall percentage of passages. He surmised that the most likely reason for the drop in the overall pass rate was the nature of the examinee and not the exam itself. 14. WOMEN S SECTION REPORT SUSAN BEVILL LIVINGSTON LEADERSHIP AWARD Commissioner Skinner, who also serves as chair of the Women s Section, discussed the genesis of the proposed Susan Bevill Livingston Leadership award. She explained that the Maud McLure Kelly Award given by the section was developed for female attorneys who were trailblazers in the profession and that it was not an award to recognize leadership. She stated that the section was recommending the creation of the Susan Bevill Livingston Leadership Award for that purpose. She then discussed the criteria for the award. Next, Commissioner Minor spoke as a former partner of Susan Livingston and what the award would mean as well as the Women s Section s efforts to create a leadership award honoring not only Ms. Livingston but other leaders within the legal profession.

10 6 COMMISSIONER PERRY MOVED TO SUSPEND THE RULES AND TO TAKE UP CONSIDERATION OF THE SUSAN BEVILL LIVINGSTON LEADERSHIP AWARD OUT OF ORDER. THE MOTION WAS SECONDED AND APPROVED BY THE NECESSARY TWO-THIRDS VOTE. COMMISSIONER SHATTUCK NEXT MOVED TO AUTHORIZE THE CREATION OF THE SUSAN BEVILL LIVINGSTON LEADERSHIP AWARD TO BE GIVEN BY THE WOMEN S SECTION. THE MOTION WAS SECONDED AND APPROVED. President Raleigh thanked Commissioners Skinner and Minor. 15. PRO BONO CELEBRATION MONTH President Raleigh recognized Commissioner Mozingo. Commissioner Mozingo stated that he was reporting on behalf of Ms. Cassandra Adams, chair of the Pro Bono Celebration Month Committee because she was unable to attend the meeting. Commissioner Mozingo gave an overview of the month s activity including two poverty simulations, 29 legal clinics, state-wide recruitment events, local bar events in most of the judicial circuits, CLE opportunities and law student participation in most of the events. He stated that Pro Bono Month had become a national as well as an international event and he thanked everyone for their participation and help in making this year s event very successful. 16. LAWYER REFERRAL SERVICE REPORT Commissioner Garner reported that the committee was evaluating the efficiency of the program and that a survey would be sent out to bar members to obtain information and to encourage more participation in the lawyer referral service. 17. LEGISLATIVE GOVERNMENTAL LIAISON COMMITTEE REPORT Legislative Counsel Suzi Edwards explained that efforts were underway to prepare for the 2015 legislative session. She reported on efforts to establish a committee to both read and analyze bills as they are filed. She also stated that the state bar would participate in the legislative orientation by conducting a law school for legislators. She encouraged commission members to stay in touch with local legislators. 18. PARCA STUDY Immediate Past President Anthony Joseph reported on the PARCA Study commissioned by the state bar. He explained that the study would be an independent and an objective tool to discuss court funding. He noted that the report revealed that only six percent of what is collected by the judicial system as court costs is actually returned to the judicial system. He stated that the PARCA Study dramatically shows the woefully small percentage of fees that are collected as court costs are actually used to fund the judicial system.

11 7 19. IN-HOUSE COUNSEL AND PUBLIC GOVERNMENT LAWYERS TASK FORCE Commissioner Shattuck reported that the task force had issued a survey and the results had been received and would be included in the meeting packet for January. He explained that this particular area of the bar was growing and that the creation of a new section for this group of lawyers would address their unique needs including CLE. 20. RULE III APPLICATIONS President Raleigh reported that five applications for admission by motion pursuant to Rule III of the Rules Governing Admission to the Alabama State Bar had been received. He stated that they were from Gary Oman Bruce (GA); Patricia I.-Pearn Chen (MA); Emily McDonald Heersink (PA); Linda Carol Roberson (VA); Jonathan Palmer Summers (GA). He explained that each of the applications meets the elements of Rule III and have satisfied the character and fitness requirements as well. COMMISSIONER DEBROSSE MOVED TO ADMIT GARY OMAN BRUCE, PATRICIA I.-PEARN CHEN, EMILY MCDONALD HEERSINK, LINDA CAROL ROBERSON AND JONATHAN PALMER SUMMERS. THE MOTION WAS SECONDED AND APPROVED BY VOICE VOTE. 21. APPOINTMENT OF NEW CHAIR FOR THE BOARD OF BAR EXAMINERS President Raleigh stated that the term of the current chair of the Board of Bar Examiners, David Hymer, had expired. He stated that Warren Matthews, a long-term Board of Bar Examiners, was recommended to fill the remainder of his current term (through February 2016 examination) as the new chair of the board. COMMISSIONER DEBROSSE MOVED TO APPROVE MR. WARREN MATTHEWS AS THE NEW CHAIR OF THE BOARD OF BAR EXAMINERS THROUGH FEBRUARY THE MOTION WAS SECONDED AND APPROVED BY VOICE VOTE. 22. LEADERSHIP FORUM CLASS 11 Commissioner DePalma reported on the 11 th recommended class. A list of those recommended for approval and the four alternates were as follows: William Reeves Andrews Benjamin Huff Barron Rebecca Ashley Beers Christopher Patrick Bodden Haley Andrews Cox Howard Hube Dodd, Jr. Christopher Ramsey Duck Roy Clay Dumas Prim Formby Escalona Brandon Keith Essig

12 8 Andrew Brent Freeman Timothy Justin Flinn Gallagher Shera Craig Grant Scott Bradley Holmes George Allen Howell John W. Johnson II Henry Sprott Long III Thomas Matthews Loper Glory Rachel McLaughlin Harold Deen Mooty, III Kathleen Shuey O Connell Adam Patterson Plant John Thomas Richie Rachel Laurie Riddle Kelly Burleson Rushin Ernest Glenn Smith, Jr. Kristofor David Sodergren Brian Michael Vines Mickey Jansen Voss William Christopher Waller, Jr. John Matthew Hart, Alternate Kimberly Carter Brown, Alternate Andrew Ray Salser, Alternate Mark David Johnson, Alternate COMMISSIONER CROW MOVED TO APPROVE THE NOMINEES FOR THE LEADERSHIP FORUM CLASS 11. THE MOTION WAS SECONDED AND APPROVED BY VOICE VOTE BUDGET REQUEST The secretary reviewed the budget request for FY2016. He stated that the amount requested was $6,699,918 or a 2.64 percent increase over the previous year s budget. Following the discussion of the budget request, President Raleigh asked if there were any questions and there were none. COMMISSIONER SHATTUCK MOVED TO ADOPT THE BUDGET FOR FY2016 IN THE AMOUNT OF $6,699,918. THE MOTION WAS SECONDED AND APPROVED BY VOICE VOTE.

13 9 24. ADJOURNMENT President Raleigh asked if there was any further business to come before the commission. There being no further business to come before the commission, a motion was made and duly seconded to adjourn. The motion was approved by voice vote. ATTEST: Keith B. Norman, Secretary Alabama State Bar Richard J.R. Raleigh, Jr., President Alabama State Bar

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35 Report of the In-House Counsel and Public/Government Lawyers Task Force On February 21, 2014, President Anthony Joseph created the In-House Counsel and Public/Government Lawyers Task Force. The task force consisted of over twenty lawyers representing a wide range of in-house counsel, public and government lawyers. The group met a number of times. The purpose of this task force was to explore ways of obtaining greater participation by in-house lawyers and public/government lawyers in bar activities, including sections, committees, volunteer lawyer programs, pro bono programs, and other related areas of service to the bar and community. One of the first tasks undertaken by the task force was a survey of identifiable attorneys who would be characterized as in-house, public and government lawyers. The survey was distributed to 711 such attorneys. 194 responded. A summary of the results of the survey are attached hereto as Exhibit A. With the survey results in-hand, the task force members met with their subcommittees and then as an entire group to: Identify the barriers (real and perceived) to greater participation by in-house lawyers and public/government lawyers in bar activities, including sections, committees, volunteer lawyer programs, pro bono programs, and other related areas of service to the bar and community, and Identify and present the recommendations to address these barriers below. Background and General Information Attached as Exhibit B is Rule VIII of the Rules Governing Admission to the Alabama State Bar regarding the admission of foreign attorneys as authorized house counsel. The rule provides a mechanism by which attorneys authorized to practice in another jurisdiction may undertake activities in Alabama on behalf of a business entity which is their employer, without having to take the Bar exam. Otherwise, in-house counsel and government lawyers are generally treated as are other attorneys desiring to practice in Alabama. Alabama Code prescribes who may practice as an attorney in Alabama and is set forth in full in Exhibit C. Alabama Code provides that an attorney who engages in the active practice of law is required to purchase an occupational license, and is attached hereto as Exhibit D. Alabama Code and 18 provide for special membership dues for those exempt from licensing by virtue of a position held, i.e. judgeships, attorneys general, U.S. attorneys, district attorneys, etc., and are set forth in Exhibit E. Barriers The following are the real and perceived barriers to more involvement by in-house counsel 1 in the Bar s activities: 1. Many in-house counsel do not believe that they are considered members of the Bar. 2. Many in-house counsel are unaware of the benefits of being more active in the Bar. 3. Many in-house counsel do not know many other lawyers who are members of the Bar or are involved in Bar activities. 4. Budget constraints prevent the payment of Alabama State Bar dues. 1 The term in-house counsel will be used throughout this report and shall be read to include not only in-house counsel but also public/government lawyers. 1

36 Report of the In-House Counsel and Public/Government Lawyers Task Force Recommendations 1. Create a new section for in-house counsel. Creating a new section dedicated to those members who work as in-house counsel will accomplish many of the goals that have been set for our Task Force and will accomplish many of the challenges identified by our work. A dedicated section will give in-house counsel the opportunity to get to know each other, which will encourage greater involvement in the Bar as a whole. Obviously, such lawyers will be more comfortable engaging in Bar activities if they have met other similarly situated lawyers who desire to become more involved in Bar activities as well. A new section will also enable these attorneys to target CLE opportunities that are more applicable and appropriate to their practice. Those networking opportunities should also foster greater volunteer opportunities and involvement as well. 2. Provide activities and CLE opportunities designed for in-house counsel. A dedicated section, as discussed above, will provide an organizational structure to accomplish activities and CLE opportunities designed for in-house counsel. But, all Bar sections, committees and task forces should remember this group of our membership when organizing events and can tap into the new section to help encourage participation. 3. Streamline the membership process for in-house counsel to acquire membership through reciprocity or otherwise. The barriers to licensure in Alabama can be quite high for out of state lawyers. For those lawyers who are not eligible for reciprocity, the wait can be as long as 14 months. Those who are eligible for reciprocity can wait as many as six months. These long wait times discourage employers from bringing talented lawyers to the state in both the public and private sectors. In order to address these concerns, the Bar should consider modifying the application deadlines for those lawyers who must take the Bar examination to reduce the time between application and licensure. The Bar should also consider developing policies and procedures to approve reciprocity applications on a rolling basis or otherwise more frequent basis. In addition, the Bar might also consider granting out of state lawyers working in the public sector temporary practice privileges while they wait for Bar examination results or reciprocity approval. 4. Waive or provide reduced CLE or Section Fees for at least one year. In order to encourage membership in the newly created section, the Task Force believes that waiving any section membership fees would be appropriate and would encourage participation. Once the section is up and going, dues could be considered. To the extent possible, the CLE offerings by the new section should be offered with reduced or minimal costs, again to encourage participation. 2

37 Report of the In-House Counsel and Public/Government Lawyers Task Force 5. Conduct presentations on the benefits of being a member of the Alabama State Bar focused on inhouse lawyers. The Task Force would encourage Bar staff and leadership to engage groups of in-house counsel in order to make them aware of the benefits of being an active member of the Alabama State Bar. 3

38 Report of the In-House Counsel and Public/Government Lawyers Task Force EXHIBIT A Alabama In-House and Government Lawyers Survey Results 4

39 Report of the In-House Counsel and Public/Government Lawyers Task Force 5

40 Report of the In-House Counsel and Public/Government Lawyers Task Force

41 Report of the In-House Counsel and Public/Government Lawyers Task Force

42 Report of the In-House Counsel and Public/Government Lawyers Task Force

43 Report of the In-House Counsel and Public/Government Lawyers Task Force 9

44 Report of the In-House Counsel and Public/Government Lawyers Task Force

45 Report of the In-House Counsel and Public/Government Lawyers Task Force EXHIBIT B Rule VIII. Rules Governing Admission to the Alabama State Bar. Admission of Foreign Attorneys as Authorized House Counsel. A. Purpose. This rule is intended to facilitate the relocation of persons employed by or to be employed by any "business organization," as that term is defined in this rule, who will undertake, in whole or in part, to provide legal services for such business organizations in Alabama. Notwithstanding the provisions of Rules I through VII, supra, this rule authorizes attorneys licensed to practice in jurisdictions other than Alabama to be permitted to undertake activities in Alabama while employed exclusively by a business organization without the requirement of taking and passing the Alabama Bar examination. B. Definitions. (1) Authorized House Counsel. Authorized house counsel shall be any person who: (a) is not a member of the Alabama State Bar but is licensed to practice law in any state other than Alabama, a United States territory, or the District of Columbia and who is a member in good standing of the entity governing the practice of law in that state, United States territory, or the District of Columbia; (b) is not subject to a disciplinary proceeding or outstanding order of reprimand, censure, or disbarment, permanent or temporary, for professional misconduct by the bar or courts of any jurisdiction at the time he or she applies for registration under this rule; (c) has not been permanently denied admission to practice before the bar of any jurisdiction based upon character or fitness at the time he or she applies for registration under this rule; (d) agrees to abide by the Alabama Rules of Professional Conduct and the Alabama Rules of Disciplinary Procedure, without limitation, and to submit, for disciplinary purposes, to the jurisdiction of the Disciplinary Board and the Disciplinary Commission of the Alabama State Bar and the Supreme Court of Alabama; (e) is, on the date the person applies for registration under this rule, exclusively employed by a business organization located in the State of Alabama or relocating to the State of Alabama in furtherance of such employment within six months of such application under this rule and receives or shall receive compensation for activities performed for that business organization; and (f) has registered pursuant to Rule VIII.D., infra. (2) Business Organization. For the purpose of this rule, a "business organization" is a corporation, partnership, association, or other legal entity (taken together with its respective parents, subsidiaries, and affiliates) authorized to transact business in the State of Alabama that is not itself engaged in the practice of law or the rendering of legal services outside such organization, whether for a fee or otherwise, and does not charge or collect a fee, other than from entities constituting the business organization, for the representation or advice of authorized house counsel. For purposes of this rule, a "business organization" does not include a governmental entity, governmental subdivision, political subdivision, school board, or any other entity that has the authority to levy a tax. 11

46 Report of the In-House Counsel and Public/Government Lawyers Task Force C. Activities. (1) Authorized Activities. For the purpose of this rule, a "business organization" is a corporation, partnership, association, or other legal entity (taken together with its respective parents, subsidiaries, and affiliates) authorized to transact business in the State of Alabama that is not itself engaged in the practice of law or the rendering of legal services outside such organization, whether for a fee or otherwise, and does not charge or collect a fee, other than from entities constituting the business organization, for the representation or advice of authorized house counsel. For purposes of this rule, a "business organization" does not include a governmental entity, governmental subdivision, political subdivision, school board, or any other entity that has the authority to levy a tax. (2) Disclosure. In undertaking legal services permitted by subdivisions C(1)(b) or (c) of this rule, authorized house counsel shall disclose to the party with whom authorized house counsel is negotiating or to the administrative agency or commission, as the case may be, his or her capacity by written or printed communication. Such disclosure shall include the name of the business organization, the title or function of authorized house counsel, and a statement that authorized house counsel is not licensed to practice law in the State of Alabama; such disclosure shall be transmitted in a manner reasonably contemplated to create an awareness of authorized house counsel's status with respect to the relevant activity. In making the disclosure required by this subdivision, authorized house counsel shall not represent that they are members of the Alabama State Bar licensed to practice law in this State. (3) Limitation on Representation. In no event shall the activities permitted under this rule include the individual or personal representation of any shareholder, owner, partner, officer, employee, servant, director, or agent of the business organization in any matter or transaction, or the giving of legal advice, unless otherwise permitted or authorized by law, code, or rule, or as may be permitted by Rule VIII.C(1). (4) Authorized house counsel shall not express or render a legal judgment or opinion to be relied upon by any person or party other than in the course of representing the business organization by which authorized house counsel is employed. D. Registration. (1) Filing with the Alabama State Bar. An individual seeking to be certified as authorized house counsel under this rule shall file the following documents with the Alabama State Bar: (a) a certificate from the entity governing the practice of law in each state, United States territory, or the District of Columbia in which the registrant is licensed to practice law certifying that the registrant: (i) (ii) is a member in good standing of the entity, and has a clear disciplinary record, as required by Rule VIII.B(1). (b) a sworn statement by the registrant that the registrant: (i) (ii) has read and is familiar with the Alabama Rules of Professional Conduct and the Alabama Rules of Disciplinary Procedure, as adopted by the Supreme Court of Alabama, and will abide by the provisions of those rules; submits to the jurisdiction of the Alabama State Bar and the Supreme Court of Alabama for disciplinary purposes, and authorizes the Alabama State Bar to notify, or to receive notification from, the entity governing the practice of law in each state, United States 12

47 Report of the In-House Counsel and Public/Government Lawyers Task Force (iii) territory, or the District of Columbia in which the registrant is licensed to practice law of any disciplinary action taken against the registrant; is not subject to a disciplinary proceeding or outstanding order of reprimand, censure, or disbarment, permanent or temporary, for professional misconduct by the bar or courts of any jurisdiction; (c) a certificate from a business organization certifying that it is qualified as a business organization as that term is defined in Rule VIII.B(2), that it is aware that the registrant is not licensed to practice law in the State of Alabama, and that it is not relying upon the Alabama State Bar in any manner in employing authorized house counsel; (d) an appropriate registration application to the Alabama State Bar as promulgated by the Board of Commissioners; and (e) a filing fee prescribed and set by the Board of Commissioners in an amount not to exceed the amount applicable for admission into the bar examination for an attorney licensed in a state other than Alabama. (2) Review by the Alabama State Bar. Upon receipt of the items set forth in Rule VIII.D(1), the Alabama State Bar shall review the items for compliance with this rule. Any application not meeting the requirements of this rule shall be returned to the applicant. Grounds for return include, but are not limited to, a certificate lacking all the information required by Rule VIII.D(1), a certification from an entity that does not qualify as a business organization as defined by this rule, and failure to remit a correct filing fee. (3) Certification by Alabama Supreme Court. After reviewing an application for registration as authorized house counsel and determining that he or she has complied with the provisions of Rule VIII.D(1), the Alabama State Bar shall file with the clerk of the Supreme Court of Alabama (a) the name and address of the registrant and (b) a request that the registrant be certified as authorized house counsel for the business organization. For a registrant employed in Alabama at the time the Bar's request is approved, permission for authorized house counsel to perform services under this rule shall become effective upon approval of the request for certification by the clerk of the Supreme Court of Alabama. If the registrant is not yet in Alabama, the date authorized house counsel is permitted to perform services under this rule shall be the effective date of the registrant's employment in Alabama, but not later than six months from the filing of the items required to be filed by Rule VIII.D(1). (4) Annual Renewal. The registration required by this rule shall be annual, in a manner consistent with the registration applicable to an attorney licensed to practice in the State of Alabama, including payment of the annual fee equal in amount to the occupational license fee; provided, however, such renewal shall include a statement that the registrant remains in good standing in all states, United States territories, or the District of Columbia in which authorized house counsel is licensed and that he or she is not subject to any disciplinary proceedings in any jurisdiction. E. Termination or Withdrawal of Registration. (1) Cessation of Authorization to Perform Services. Authorization of authorized house counsel to perform services permitted under this rule shall cease upon the earliest of the following events: (a) termination of employment with the business organization for which registration was filed; provided, however, if authorized house counsel shall begin employment with another business organization within 30 days of the termination, authorization to perform services under this rule for the other business organization shall continue upon authorized house counsel's filing with the 13

48 Report of the In-House Counsel and Public/Government Lawyers Task Force Alabama State Bar the certificate described in Rule VIII.D(1)(c) as it pertains to the business organization by which authorized house counsel is then employed. (b) withdrawal of certification by the business organization; (c) withdrawal of registration by authorized house counsel; (d) the relocation of authorized house counsel outside Alabama for a period greater than 160 days; (e) authorized house counsel's disbarment or suspension from the practice of law by a court or other authorized disciplinary agency of another state, United States territory, the District of Columbia, or by a federal court; or (f) failure of authorized house counsel to comply with any applicable provision of this rule. Notice of the occurrence of one of the events set forth in Rule VIII.E(1)(a)-(f), or of a new certificate as provided by Rule VIII.E(1)(a), must be filed with the Alabama State Bar by authorized house counsel within 30 days after such action. Authorized house counsel who has been disbarred or suspended from the practice of law by a court or other authorized disciplinary agency of another state, United States territory, the District of Columbia, or by a federal court shall, within 30 days after the effective date of his or her disbarment or suspension, file with the Alabama State Bar a copy of the order or judgment effecting the disbarment or suspension. Failure to provide such notice by authorized house counsel shall be a basis for discipline pursuant to the Alabama Rules of Disciplinary Procedure. (2) Notice of Withdrawal of Authorization. Upon receipt of the notice required by Rule VIII.E(1), the Alabama State Bar shall mail a notice of revocation of authority to perform services to authorized house counsel and the business organization employing authorized house counsel. (3) Reapplication. Nothing herein shall prevent an individual previously registered as authorized house counsel from re-registering as authorized house counsel as set forth in Rule VIII.D. F. Discipline Termination of Authorization. In addition to any appropriate discipline imposed by the Alabama State Bar, the Disciplinary Commission of the Alabama State Bar may, at any time, temporarily or permanently terminate the registration of authorized house counsel. 14

49 Report of the In-House Counsel and Public/Government Lawyers Task Force Who may practice as attorneys. EXHIBIT C (a) Only such persons as are regularly licensed have authority to practice law. (b) For the purposes of this chapter, the practice of law is defined as follows: Whoever, (1) In a representative capacity appears as an advocate or draws papers, pleadings, or documents, or performs any act in connection with proceedings pending or prospective before a court or a body, board, committee, commission, or officer constituted by law or having authority to take evidence in or settle or determine controversies in the exercise of the judicial power of the state or any subdivision thereof; or (2) For a consideration, reward, or pecuniary benefit, present or anticipated, direct or indirect, advises or counsels another as to secular law, or draws or procures or assists in the drawing of a paper, document, or instrument affecting or relating to secular rights; or (3) For a consideration, reward, or pecuniary benefit, present or anticipated, direct or indirect, does any act in a representative capacity in behalf of another tending to obtain or secure for such other the prevention or the redress of a wrong or the enforcement or establishment of a right; or (4) As a vocation, enforces, secures, settles, adjusts, or compromises defaulted, controverted, or disputed accounts, claims or demands between persons with neither of whom he or she is in privity or in the relation of employer and employee in the ordinary sense; is practicing law. (c) Nothing in this section shall be construed to prohibit any person, firm, or corporation from attending to and caring for his, her, or its own business, claims, or demands, nor from preparing abstracts of title, certifying, guaranteeing, or insuring titles to property, real or personal, or an interest therein, or a lien or encumbrance thereon, but any such person, firm, or corporation engaged in preparing abstracts of title, certifying, guaranteeing, or insuring titles to real or personal property are prohibited from preparing or drawing or procuring or assisting in the drawing or preparation of deeds, conveyances, mortgages, and any paper, document, or instrument affecting or relating to secular rights, which acts are hereby defined to be an act of practicing law, unless such person, firm, or corporation shall have a proprietary interest in such property; however, any such person, firm, or corporation so engaged in preparing abstracts of title, certifying, guaranteeing, or insuring titles shall be permitted to prepare or draw or procure or assist in the drawing or preparation of simple affidavits or statements of fact to be used by such person, firm, or corporation in support of its title policies, to be retained in its files and not to be recorded. (d) Only a person who is a citizen of the United States or, if not a citizen of the United States, a person who is legally present in the United States with appropriate documentation from the federal government, may be licensed to practice law in this state. 15

50 Report of the In-House Counsel and Public/Government Lawyers Task Force Attorneys. EXHIBIT D (a) Each attorney engaged in the practice of law shall pay an annual license tax to the state, but none to the county. On October 1, 2006, and each year thereafter, the annual license tax shall be three hundred dollars ($300). On and after May 15, 2012, the Board of Bar Commissioners shall by rule determine the amount of the annual license tax. If business is conducted as a firm or as a corporation in which more than one lawyer is engaged, each lawyer shall pay such license tax, but no lawyer shall be required to pay a license tax until the first day of October following admission to the bar. The license tax shall be paid to the Secretary of the Board of Bar Commissioners of the Alabama State Bar. The funds collected for the issuance of the license tax levied shall constitute a separate fund to be disbursed on the order of the Board of Commissioners of the Alabama State Bar. As soon after the first day of each November as practicable, the Secretary of the Alabama State Bar shall certify to the presiding judge of the circuit court having jurisdiction in the county the names of attorneys who have paid the license fee. (b) The license taxes shall be due and payable on October 1 of each year and shall be delinquent on the following November 1. If a license is delinquent, the Secretary of the Board of Bar Commissioners of the Alabama State Bar shall assess and collect a penalty of 15 percent of the amount of the license. The penalty shall be paid when the license is issued. (c) Section , relating to the collection and distribution of business license taxes shall not be applicable to license taxes provided in subsection (a). 16

51 Report of the In-House Counsel and Public/Government Lawyers Task Force EXHIBIT E Qualified lawyers holding public office authorized to become members of Alabama Bar Association. All lawyers who are qualified to practice law in Alabama and who are not engaged in active practice because they are holding a state or federal office that precludes them from practicing law may become members of the Alabama Bar Association by paying directly to the secretary of such association an annual sum equal to 50 percent of the money collected by the State of Alabama from a lawyer as a privilege license tax to engage in the practice of law. Upon payment of the sum as prescribed in the preceding sentence, such persons shall be entitled to all the privileges and benefits common to other members of such association Lawyers not engaged in active practice authorized to become members of Alabama Bar Association. All lawyers who are qualified to practice law in Alabama and who are not engaged in active practice may become members of the Alabama Bar Association by paying directly to the secretary of such association an annual sum equal to 50 percent of the money collected by the State of Alabama from a lawyer as a privilege license tax to engage in the practice of law. Upon the payment of the sum as prescribed in this section, such person shall be entitled to all the privileges and benefits common to the other members of such association. 17

52 BY-LAWS IN-HOUSE COUNSEL AND GOVERNMENT LAWYERS SECTION OF ALABAMA STATE BAR ASSOCIATION Article I Name and Jurisdiction Section 1. Name. The name of this Section shall be the Section of In-House Counsel and Government Lawyers. Section 2. Purpose. The purpose of this Section shall be to promote the objects of the Alabama State Bar for those who practice as in-house counsel or as government lawyers which are not otherwise assigned by the Board of Bar Commissioners of the Alabama State Bar to any other Section or Committee or Task Force of the Alabama State Bar. Article II Membership and Dues Section 1. Membership. Any active member of the Alabama State Bar Association who is in good standing upon request to the Secretary of this Section and upon payment of the Section dues for the current year, shall be enrolled as a member of this Section. The membership of this Section shall consist of members whose dues are paid where applicable. Members so enrolled shall constitute the membership of this Section, and shall be a member in good standing. Section 2. Dues. The initial Section dues shall be $15, and for any attorney practicing for five years or less, dues shall be $10. Dues are waived for attorneys working in the government sector. Dues may be fixed or adjusted by the membership at a regular annual meeting. Article III Officers Section 1. Officers. The minimum officers of this Section shall be a Chairperson, Vice- Chairperson, and a Secretary and a Treasurer, or a Secretary-Treasurer. Section 2. Council. There shall be a council, which shall consist of the Chairperson, Vice- Chairperson, Secretary, Treasurer (or the Secretary-Treasurer), the last retiring chairman, together with three other members to be elected by the Section, one for a term of one year, one for a term of two years, and one for a term of three years. Hereafter the terms of members of the Council shall be for three years. Section 3. Term of Office. The Chairperson, Vice-Chairperson, Secretary, Treasurer, (or the Secretary-Treasurer) shall be nominated and elected in the manner hereinafter provided at each annual meeting of this Section, to hold office for a term beginning at the close of the annual 1