Section 5 - Funding; Reimbursements to Certified Unauthorized Practice of Law Committees(A)Funding and budgets The Supreme Court shall allocate funds for the operation of the Board and disciplinary counsel and development and distribution of materials describing the unauthorized practice of law process from the Attorney Services Fund.
(B)Budget On or before the first day of May each year, the Board shall prepare and submit to the administrative director a proposed budget for the fiscal year that begins on the ensuing first day of July. The budget shall be in the form prescribed by the administrative director.
(C)Reimbursement for expenses The Board may reimburse certified unauthorized practice of law committees for expenses incurred by the committees in performing the obligations imposed on them by these rules. Any reimbursements authorized by the Board shall be paid from moneys allocated by the Court for that purpose from the Attorney Services Fund. Reimbursement is not permitted for costs associated with compliance with the standards contained in in Section 5(D) of this rule, except for the costs listed in division (C)(2) of this section.
(1)Reimbursement of direct expenses. A certified unauthorized practice of law committee and the Attorney General may be reimbursed for direct expenses incurred in performing the obligations imposed by this rule. Reimbursement shall be limited to costs for depositions, transcripts, copies of documents, necessary travel expenses for witnesses and volunteer attorneys, witness fees, subpoenas, the service of subpoenas, postal and delivery charges, long distance telephone charges, and compensation of investigators and expert witnesses authorized in advance by the Board. There shall be no reimbursement for the costs of the time of other bar association or Attorney General personnel or attorneys in discharging these obligations. Reimbursement shall be made upon submission to the secretary of proof of the expenditures. Upon approval by the chairperson, reimbursement shall be made from the Attorney Services Fund.(2)Annual reimbursement of indirect expenses. A certified unauthorized practice of law committee may apply to the Board prior to the first day of February each year for partial reimbursement of other expenses necessarily and reasonably incurred during the preceding calendar year in performing their obligations under this rule. The Board, by regulation, shall establish criteria for determining whether expenses under this section are necessary and reasonable. The Board shall deny reimbursement for any expense for which a certified unauthorized practice of law committee seeks reimbursement on or after the first day of May of the year immediately following the calendar year in which the expense was incurred. Expenses eligible for reimbursement are those specifically related to unauthorized practice of law matters and include the following: (a) The personnel costs for the portion of an employee's work that is dedicated to this area;(b) The costs of bar counsel retained pursuant to a written agreement with the certified unauthorized practice of law committee;(c) Postal and delivery charges;(d) Long distance telephone charges;(e) Local telephone charges and other appropriate line charges included, but not limited to, per call charges;(f) The costs of dedicated telephone lines;(g) Subscription to professional journals, law books, and other legal research services and materials related to the unauthorized practice of law;(h) Organizational dues and educational expenses related to the unauthorized practice of law;(i) All costs of defending a lawsuit relating to the unauthorized practice of law and that portion of professional liability insurance premiums directly attributable to the operation of the committees in performing their obligations under this rule;(j) The percentage of rent, insurance premiums not reimbursed pursuant to division (C)(2)(i) of this section, supplies and equipment, occupancy, utilities, office expenses, repair and maintenance, and other overhead expenses directly attributable to the operation of the committees in performing their obligations under this rule, as determined by the Board and provided that no certified unauthorized practice of law committee shall be reimbursed in excess of three thousand five hundred dollars per calendar year for such expenses. Reimbursement shall not be made for the costs of the time of other bar association personnel, volunteer attorneys, depreciation, amortization, or the cost of compiling and submitting requests for reimbursement of indirect expenses under this division. No certified unauthorized practice of law committee shall apply for reimbursement or be entitled to reimbursement for expenses that are reimbursed pursuant to Gov. Bar R. V, Section 7.(3)Quarterly reimbursement of certain indirect expenses. In addition to applying annually for reimbursement pursuant to division (C)(2) of this section, a certified unauthorized practice of law committee may apply quarterly to the Board for reimbursement of the expenses set forth in divisions (C)(2)(a) and (b) of this section that were necessarily and reasonably incurred during the preceding calendar quarter. Quarterly reimbursement shall be submitted in accordance with the following schedule: Reimbursement for the months of: | Due by: |
January, February, and March | May 1 |
April, May, and June | August 1 |
July, August, and September | November 1 |
October, November, and December | February 1 (with annual reimbursement request) |
Any expense that is eligible for quarterly reimbursement, but that is not submitted on a quarterly reimbursement application, shall be submitted no later than the appropriate annual reimbursement application pursuant to division (C)(2) of this section and shall be denied by the Board if not timely submitted. The application for quarterly reimbursement shall include an affidavit with documentation demonstrating that the certified unauthorized practice of law committee incurred the expenses set forth in divisions (C)(2)(a) and (b) of this section.
(D)Audit Expenses incurred by certified unauthorized practice of law committees and reimbursed under division (C) of this section may be audited at the discretion of the Board or the Court and paid out of the Attorney Services Fund.
(E)Availability of fundsReimbursement under division (C) of this section is subject to the availability of moneys in the Attorney Services Fund.
(F)Deferral or denial of reimbursements The Board may defer or deny an indirect reimbursement requested by a certified unauthorized practice of law committee based on the committee's failure to satisfy the standards of Section 3(D) and (E) of this rule or bar counsel's noncompliance with Section 4(C) of this rule.
Amended April 27, 2021, effective 7/1/2021