Title 2. Rights and Responsibilities of Members

 

Rule 2.1 Roll of attorneys

 

The State Bar maintains, on the official membership records of the State Bar, the roll of all attorneys admitted to practice in California.^[1]

 

 

Rule 2.2  Public information

 

 

(A)        last name, first name, and any middle names;

(B)        State Bar member number;

(C)       address and telephone number;

(D)       e-mail address;

(E)       date of admission in California;

(F)        places and dates of admission in other jurisdictions before admission in California;

(G)       membership status;

(H)       date of any transfer from one membership status to another;

(I)         date and period of any discipline; and

(J)        any other information as directed by the Supreme Court or otherwise required by law.

 

 

Rule 2.3 Duty to update member record

 

(A)          A member must inform the State Bar of a change of address, telephone number, or e-mail address no later than thirty days after making the change. The member must report a change of address or telephone number online or using the State Bar Address Change Form. The member must make a change of e-mail address online.

(B)          A member must inform the State Bar of a change of name no later than thirty days after making the change. The member must report the change using the State Bar Name Change Form.

 

 

Rule 2.4 Confidential treatment of address history

Every member must maintain with the State Bar a non-confidential current address,^[2] but upon the request of a member, the State Bar will not publicly disclose a member’s prior address.

 

 

Rule 2.10 Definitions

 

(A)         “Annual membership fees” are those fees that any member must pay to maintain active or inactive membership in a calendar year. These fees may include additional assessments and costs prescribed by law.^[3]

(B)        “Penalties” are the surcharges assessed any member who fails to pay annual membership fees on time.

 

 

Rule 2.11 Due date

 

A member must pay the annual membership fees set forth in the Schedule of Charges and Deadlines each calendar year no later than February 1.

 

 

 

A new member must be enrolled as active and pay initial fees within forty-five days of the invoice date for the fees as follows:

 

(A)         full annual membership fees if admitted between January 1 and May 31;

(B)         half the annual membership fees if admitted between June 1 and November 30;

(C)         the administrative fee for admission set forth in the Schedule of Charges and Deadlines if admitted in December.

 

 

Rule 2.13 Late payment penalties

 

Late payment of annual membership fees is subject to the penalties set forth in the Schedule of Charges and Deadlines.

 

 

Rule 2.14 No refund

 

Unless these rules provide otherwise, a member is not entitled to a refund of annual membership fees because of death, resignation, disbarment, transfer to inactive status, entering judicial office, or for any other reason.

 

 

 

 

(1)         the Active Member Fee Scaling Declaration signed under penalty of perjury; and

(2)         payment of the reduced fee.

 

New members admitted after May 31 do not qualify for scaling.

 

 

(1)          the Qualified Employer Fee Scaling Declaration signed under penalty of perjury that the employer is qualified and pays annual membership fees on the member’s behalf; and

(2)          payment of the reduced fee.

 

 

 

 

(A)        In this rule, “annual membership fees” and “penalties” are construed narrowly and do not include

 

(1)          disciplinary costs^[5]or monetary sanctions,^[6]

(2)          Client Security Fund disbursements and costs,^[7]

(3)          mandatory fee arbitration award penalties and costs,^[8]

(4)          Minimum Continuing Legal Education (“MCLE”) noncompliance or reinstatement penalties, or

(5)          any other charges that may be added to annual membership fees for failure to comply with obligations imposed by court order, statute, or rule.

 

 

 

(1)         in writing;

 

 

(D)       The Secretary may waive annual membership fees and related penalties for a member serving in the Army National Guard, the Army Reserve, the Naval Reserve, the Marine Corps Reserve, the Air National Guard of the United States, the Air Force Reserve, or the Coast Guard Reserve provided that

 

(1)          the member has been ordered to report to full-time active duty for more than thirty days;

 

 

 

 

 

 

(H)        The board reserves the right for good cause

 

 

 

 

 

(A)          Keller v. State Bar of California (1990) 496 U.S. 1 prohibits the State Bar from charging members for State Bar expenses for lobbying and certain other activities deemed political and ideological and unrelated to the Bar’s permissible goals. California law authorizes members to take a deduction for lobbying activities.^[10] The Board of Trustees may also identify each year additional deductions that it deems to be outside the scope of Keller. The State Bar restricts its spending on lobbying and other activities it deems outside the scope of Keller to fees paid voluntarily by members not taking the deductions. The deductions and the Bar’s most recent audited expenses charged to mandatory membership fees are published as a Statement of Expenditures of Mandatory Membership Fees on the State Bar Web site when the State Bar mails invoices for annual membership fees. Notice is also provided in the California Bar Journal and members may request a copy of the statement by mail.

(B)         Members who believe that the annual Statement of Expenditures of Mandatory Membership Fees inappropriately includes an expenditure disallowed by Keller may object to the expenditure. The objection must be filed using the Challenge to Mandatory Membership Fees. The board may allow the objection or promptly refer it to arbitration. Filing an objection does not relieve a member of the obligation of paying the invoiced annual mandatory membership fees on time.

(C)         For purposes of this rule, “arbitration” means that the State Bar will refer the challenge to an arbitrator selected by the American Arbitration Association. The State Bar may consolidate multiple challenges. The arbitration procedure is specified in the instructions to the Challenge to Mandatory Membership Fees.

(D)         If an arbitrator determines that a challenged expense is outside the scope of Keller and is allowable as a deduction, the State Bar will refund the amount of the deduction to any public agency that has paid the amount on behalf of a member.

 

 

 

 

 

Rule 2.31 Change of membership status

 

 

 

 

 

 

Rule 2.33  Suspension for failure to pay annual membership fees and outstanding penalties or costs

 

 

 

 

 

 

 

 

 

Rule 2.34 Suspension for failure to comply with a family or child support obligation

 

(A)          A member identified under the terms of Family Code § 17520 as failing to comply with a judgment or court order for child or family support will be suspended from the practice of law by the Supreme Court.^[15]

(B)         The State Bar will send a written notice of suspension for failure to pay child or family support to the member’s address of record. The suspension will be effective on the date ordered by the Supreme Court.

(C)         The State Bar will ask the Supreme Court to reinstate a member if it receives statutory notice^[16] that the obligation has been discharged and if the member has paid any surcharge authorized by statute.^[17]

(D)         If a reinstated member subsequently fails to comply with a judgment or court order for child or family support,^[18] the State Bar will request that the Supreme Court suspend the member within thirty days and will send written notice of its request to the member’s address of record.

(E)        Annual membership fees accrue according to the member’s status prior to suspension.

 

 

Rule 2.35 Suspension for disciplinary violations

 

A member on actual rather than stayed suspension for disciplinary violations for part of a year must pay full annual membership fees. Annual membership fees do not accrue during periods of suspension that last an entire year.

 

 

 

If under these rules there is a conflict in the rate at which a member accrues fees, the active rate applies.

 

 

Rule 2.37 Voluntary resignation

 

 

 

 

 

 

 

 

 

 

Rules for Minimum Continuing Legal Education (MCLE) require active members of the State Bar of California to remain current regarding the law, the obligations and standards of the legal profession, and the management of their practices. A member’s involuntary enrollment as inactive for failing to comply with these rules is public information available on the State Bar Web site.

 

 

Rule 2.51 Definitions

 

(A)         An “activity” is legal education that the State Bar approves as meeting standards for MCLE credit.

 

 

 

 

(A)         The activity must relate to legal subjects directly relevant to members of the State Bar and have significant current professional and practical content.

(C)         Promotional material must state that the activity is approved for MCLE credit or that a request for approval is pending; specify the amount of credit offered; and indicate whether any of the credit may be claimed for required MCLE in legal ethics, elimination of bias, or the prevention, detection, and treatment of substance abuse or mental illness that impairs professional competence.

(D)         If the activity lasts more than an hour, the provider must make substantive written materials available either before or during the activity. Any materials provided online must be available online for at least thirty calendar days following the activity.

(E)          Programs and classes must be scheduled so that participants are free of interruptions.

 

 

Rule 2.53 New members

 

(A)         A new member is permanently assigned to a compliance group on the date of admission.

(B)         The initial compliance period for a new member begins on the first day of the month in which the member was admitted. It ends when the period ends for the compliance group. If the initial period is less than the period for the compliance group, the required credit hours may be reduced as provided in these rules.^[19]

(C)        A new member may not claim credit for education taken before the initial compliance period.

 

 

Rule 2.54 Exemptions

 

(A)         The following active members are exempt from MCLE requirements, provided they claim the exemption in their assigned compliance periods using My State Bar Profile online or an MCLE Compliance Form:

 

(1)          officers and elected officials of the State of California;

(2)          full-time professors at law schools accredited by the State Bar of California or the American Bar Association;

(3)          those employed full-time by the State of California as attorneys or administrative law judges on a permanent or probationary basis, regardless of their working hours, who do not otherwise practice law; and

(4)          those employed full-time by the United States government as attorneys or administrative law judges on a permanent or probationary basis, regardless of their working hours, who do not otherwise practice law.

 

(B)          Members whom this rule exempts by reason of their employment with the State of California or the United States government may provide pro bono legal services through a California qualified legal services project or a qualified support center,^[20] or through a legal services project or support center that primarily provides legal services without charge to indigent persons in another jurisdiction and is funded by the Legal Services Corporation or the Older Americans Act or receives funding administered by the jurisdiction’s interest on lawyers trust accounts program.

 

 

Rule 2.55 Modifications

 

 

 

 

Rule 2.70 Compliance groups

 

A member is permanently assigned to one of three compliance groups on the basis of the first letter of the member’s last name at the date of admission.^[21] The three groups are A-G, H-M, and N-Z. The member remains in the compliance group despite any subsequent change of last name.

 

 

Rule 2.71 Compliance periods

 

A compliance period consists of thirty-six months. It begins on the first day of February and ends three years later on the last day of January. The three compliance groups begin and end their compliance periods in different years. A member must report MCLE compliance no later than the day following the end of the compliance period. The report must be made online using My State Bar Profile or with an MCLE Compliance Form. Fees for noncompliance are set forth in the Schedule of Charges and Deadlines.

 

 

Rule 2.72 Requirements

 

(A)          Unless these rules indicate otherwise, a member who has been active throughout a thirty-six-month compliance period must complete twenty-five credit hours of State Bar approved education. No more than twelve and a half credit hours may be self-study.^[22] Total hours must include:

 

(1)          at least four hours of ethics in the legal profession;

(2)          at least one hour dealing with the elimination of bias in the legal profession by reason of but not limited to sex, color, race, religion, ancestry, national origin, physical disability, age, or sexual orientation; and

(3)          at least one hour of education designed to prevent, detect, and treat substance abuse or mental illness that impairs professional competence

 

(B)         Required education in legal ethics, elimination of bias, or the prevention, detection, and treatment of substance abuse or mental illness that impairs professional competence may be a component of an approved educational activity that deals with another topic.

(C)         A member may reduce the required twenty-five hours in proportion to the number of full months the member was inactive or exempt in the thirty-six-month compliance period. Up to half the reduced hours may be self-study.^[23] A tool for applying this formula is available at the State Bar Web site.

(D)         Excess credit hours may not be applied to the next compliance period.^[24]

 

 

Rule 2.73 Record of MCLE

 

For a year after reporting MCLE compliance, a member must retain and provide upon demand and to the satisfaction of the State Bar

 

(A)       a provider’s certificate of attendance;

(B)       a record of self-study that includes the title, provider, credit hours, and date of each activity; or

(C)       proof of exempt status.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rule 2.84 Legal specialization

 

A member may claim MCLE credit for educational activities that the Board of Legal Specialization approves for certification or recertification.

 

 

Rule 2.85 Education taken while physically out of state

 

 

 

Rule 2.86 Member credit request

 

A member may apply for credit for an activity directly relevant to the member’s practice but not otherwise approved if the activity substantially meets State Bar standards. The application must be submitted with the appropriate fee.

 

 

 

 

 

 

Rule 2.90 Definition

 

Noncompliance is failure to

 

(A)       complete the required education during the compliance period or an extension of it;

(B)       report compliance or claim exemption from MCLE requirements;

(C)       keep a record of MCLE compliance^[25]; or

(D)       pay fees for noncompliance.

 

 

Rule 2.91 Notice of noncompliance

 

(A)          A member who is sent a notice of noncompliance must comply with its terms or be involuntarily enrolled as inactive. An inactive member is not eligible to practice law.

(B)          If the notice requires the member to complete credit hours for the previous compliance period, any excess credit hours may be counted toward the current compliance period.

 

 

Rule 2.92 Enrollment as inactive for MCLE noncompliance

 

A member who fails to comply with a notice of noncompliance is enrolled as inactive and is not eligible to practice law. The enrollment is administrative and no hearing is required.

 

 

Rule 2.93 Reinstatement following MCLE noncompliance

 

Enrollment as inactive for MCLE noncompliance terminates when a member submits proof of compliance and pays noncompliance fees. Credit hours that exceed those required for compliance may be counted toward the current period.

 

 

 

Rule 2.100 Definitions

 

(A)          A “Chargeable fee” is a per-check charge, per-deposit charge, fee in lieu of minimum balance, federal deposit insurance fee, or sweep fee.

(B)          A "Client" is a person or a group of persons that has engaged the attorney or firm for a common purpose.

(C)         “Comparably conservative” in Business and Professions Code 6213(j) includes, but is not limited to, securities issued by Government Sponsored Enterprises.

(D)         An “Exempt Account” is exempt from IOLTA requirements because it does not meet the productivity criteria established by the Legal Services Trust Fund Commission.

(E)         “Funds” are monies held in a fiduciary capacity by a member for the benefit of a client or a third party. 

(F)          An “IOLTA account” is an Interest on Lawyers’ Trust Account as defined in Business and Professions Code section 6213(j).

(G)         An “IOLTA-eligible institution” is an eligible institution as defined in 6213(k) that meets the requirements of these rules, State Bar guidelines, and the State Bar Act.

(H)         “IOLTA funds” are the interest or dividends generated by IOLTA accounts.

(I)            A “member” is a member and a member’s law firm.

(J)          A “member business expense” is an expense that a member incurs in the ordinary course of business, such as charges for check printing, deposit stamps, insufficient fund charges, collection charges, wire transfer fees, fees for cash management, and any other fee that is not a chargeable fee. 

 

 

 

Rule 2.110 Funds to be held in an IOLTA account

 

(A)          Members must establish IOLTA accounts for funds that cannot earn income for the client or third party in excess of the costs incurred to secure such income because the funds are nominal in amount or held for a short period of time. In determining whether funds can earn income in excess of costs, a member must consider the following factors:

 

(1)         the amount of the funds to be deposited;

(2)         the expected duration of the deposit, including the likelihood of delay in resolving the matter for which the funds are held;

(3)         the rates of interest or dividends at eligible institutions where the funds are to be deposited;

(4)         the cost of establishing and administering non-IOLTA accounts for the client or third party’s benefit, including service charges, the costs of the member’s services, and the costs of preparing any tax reports required for income earned on the funds;

(5)         the capability of eligible institutions or the member to calculate and pay income to individual clients or third parties;

(6)         any other circumstances that affect the ability of the funds to earn a net return for the client or third party.

 

(B)         The State Bar will not bring disciplinary charges against a member for determining in good faith whether or not to place funds in an IOLTA account.

 

 

 

(A)          If a member determines that the funds can earn income for the benefit of the client or third party in excess of the costs incurred to secure such income, the funds must be deposited in a trust account in accordance with the provisions of Section 6211(b) of the Business and Professions Code and Rule 4-100 of the Rules of Professional Conduct or as the client or third party directs in writing.

(B)         A member should not designate an exempt account^[26] as an IOLTA account.

 

 

 

A member must review an IOLTA account at reasonable intervals to determine whether changed circumstances require funds be moved out of the IOLTA account. 

 

 

 

A member may allow an IOLTA-eligible institution to deduct chargeable fees permitted by Business and Professions Code 6212(c) from IOLTA funds. A member must pay any member business expense and may not allow the bank to deduct such expenses from IOLTA funds. If the State Bar becomes aware that a member business expense is erroneously deducted from IOLTA funds, the State Bar will inform the IOLTA-eligible institution and request that the error be corrected.

 

 

 

A member must report compliance with these rules.

 

 

 

By establishing funds in an account, a member consents to the eligible institution’s furnishing account information to the State Bar as required by these rules, State Bar guidelines, and the State Bar Act.

 

 

 

IOLTA accounts must allow prompt withdrawal of funds, except that such accounts may be subject to notification requirements applicable to all other accounts of the same class at the eligible institution so long as the notification requirement does not exceed thirty days. 

 

 

 

A member may place an IOLTA account only in an IOLTA-eligible institution. The State Bar will maintain a list of IOLTA-eligible institutions. 

 

 

 

Nothing in these rules shall be construed as affecting or impairing the duties and obligations of a member pursuant to the statutes and rules governing the conduct of members of the State Bar including, but not limited to, provisions of Rule 4-100 of the Rules of Professional Conduct requiring a member to promptly notify a client of the receipt of the client's funds and to promptly pay or deliver to the client, as requested by the client, the funds in the possession of the member which the client is entitled to receive.

 

 

 

Rule 2.130       Comparable Interest Rate or Dividend Requirement

 

(A)          An IOLTA-eligible institution must pay comparable interest rates or dividends as required under Business and Professional Code 6212(b) and 6212(e) and may choose to do so in one of three ways:

 

(1)      allow establishment of IOLTA accounts as comparable-rate products;

(2)      pay the comparable-product rate on IOLTA deposit accounts, less chargeable fees, if any; or

(3)      pay the Established Compliance Rate determined by the Legal Services Trust Fund Commission. 

 

(B)         "Accounts of the same type" in section 6212(b) refers to comparable-rate products described in sections 6212(e) and 6212(j) for which the IOLTA-eligible institution pays no less than the highest interest rate or dividend generally available from the institution to non-IOLTA account customers when the IOLTA account meets the same minimum balance or other eligibility qualifications.

 

 

Rule 2.131 Payments to the State Bar

 

An IOLTA-eligible institution must remit payments to the State Bar in accordance with Business and Professions Code 6212(d)(1-3) and State Bar rules and guidelines.

 

 

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