Mich. Admin. Ord. Administrative Order No. 1990-2
On order of the Court, Administrative Order No. 1987-3 is vacated and this order replaces it. The provisions of this order are adopted February 21, 1990, effective immediately.
1. Lawyer Trust Account Program. The Board of Trustees of the Michigan State Bar Foundation has been designated and has agreed to organize and administer the Lawyer Trust Account Program.
2. Powers and Duties.
(A) The Board shall have general supervisory authority over the administration of the Lawyer Trust Account Program.
(B) The Board shall receive funds from lawyers' interest-bearing trust accounts established in accordance with MRPC 1.15 of the Code of Professional Conduct and shall make appropriate temporary investments of such funds pending disbursement of them.
(C) The Board shall, by grants and appropriations it deems appropriate, disburse *[See modification pursuant to Administartive Order No.1994-8 - Reporter] funds as follows:
(1) 10 percent of the net proceeds of the Lawyer Trust Account Program to support programs to promote improvements in the administration of justice, provided that one half of such disbursements shall be to the Michigan Supreme Court to support implementation, within the judiciary, of the recommendations of the Task Force on Gender Issues in the Courts and the Task Force on Racial/Ethnic Issues in the Courts;
(2) 45 percent of the net proceeds of the Lawyer Trust Account Program to support the delivery of civil legal services to the poor; and
(3) 45 percent of the net proceeds of the Lawyer Trust Account Program to fund the appointment of counsel for indigent persons in criminal cases in the following manner:
(a) 25 percent of the net proceeds to fund counsel for indigents in felony cases in circuit courts and the Recorder's Court of the City of Detroit to be distributed by the State Court Administrative Office in accordance with felony caseload statistics maintained by that office;
(b) 20 percent of the net proceeds to fund appointment of counsel to prepare, on behalf of indigent defendants in criminal cases, applications for leave to appeal to the Michigan Supreme Court pursuant to rules to be promulgated by the Court.
(D) The Board shall maintain proper books and records of all Program receipts and disbursements and shall have them audited annually by a certified public accountant. The Board shall annually within 90 days after the close of its fiscal year cause to be presented an audited financial statement of its Program receipts and expenditures for the year. The statement shall be filed with the clerk of this Court and shall be published in the next available issue of the Michigan Bar Journal.
(E) The Board shall monitor the operation of the Lawyer Trust Account Program, propose to this Court changes in this order or in MRPC 1.15, and may, subject to approval by this Court, adopt and publish such instructions or guidelines not inconsistent with this order which it deems necessary to administer the Lawyer Trust Account Program.
3. Executive Director.
(A) The Board may appoint an executive director of the Lawyer Trust Account Program to serve on a full- or part-time basis at the pleasure of the Board. The executive director shall be paid such compensation as is fixed by the Board.
(B) The executive director shall be responsible and accountable to the Board for the proper administration of this Program.
(C) The executive director may employ persons or contract for services as the Board may approve.
4. Compensation and Expenses of the Board.
(A) The President and other members of the Board shall administer the Lawyer Trust Account Program without compensation, but shall be paid their reasonable and necessary expenses incurred in the performance of their duties.
(B) All expenses of the operation of the Lawyer Trust Account Program shall be paid from funds which the Board receives from the Program.
(C) The Board may borrow from the State Bar of Michigan or a commercial lender monies needed to finance the operation of the Lawyer Trust Account Program from the time it is constituted until the Program becomes operational. Any sum so borrowed shall be repaid, together with interest at prevailing market rates, as promptly as the initial receipts from the Program permit.
5. Disposition of Funds Upon Dissolution. If the Program or its administration by the Michigan State Bar Foundation is discontinued, any Program funds then on hand shall be transferred in accordance with the order of this Court terminating the Program or its administration by the Michigan State Bar Foundation.
Mich. Admin. Ord. Administrative Order No. 1990-2