Rule2024-17729
Governing Bodies
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 12, 2024
Effective
January 1, 2025
Issuing agencies
Legal Services Corporation
Abstract
The Legal Services Corporation's (LSC) FY 2024 appropriation enacted on March 9, 2024, included language that lowered the proportion of attorneys required to serve on the governing bodies of LSC grant recipients from 60% to 33%, and eliminated the requirement that bar associations appoint the majority of attorneys. This final rule revises LSC's regulation pertaining to recipient governing bodies to be consistent with this directive from Congress.
Full Text
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<title>Federal Register, Volume 89 Issue 155 (Monday, August 12, 2024)</title>
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[Federal Register Volume 89, Number 155 (Monday, August 12, 2024)]
[Rules and Regulations]
[Pages 65550-65552]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-17729]
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LEGAL SERVICES CORPORATION
45 CFR Part 1607
Governing Bodies
AGENCY: Legal Services Corporation.
ACTION: Final rule.
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SUMMARY: The Legal Services Corporation's (LSC) FY 2024 appropriation
enacted on March 9, 2024, included language that lowered the proportion
of attorneys required to serve on the governing bodies of LSC grant
recipients from 60% to 33%, and eliminated the requirement that bar
associations appoint the majority of attorneys. This final rule revises
LSC's regulation pertaining to recipient governing bodies to be
consistent with this directive from Congress.
DATES: This final rule is effective on January 1, 2025.
FOR FURTHER INFORMATION CONTACT: Stefanie K. Davis, Deputy General
Counsel, Legal Services Corporation, 3333 K Street NW, Washington, DC
20007; (202) 295-1563 (phone), (202) 337-6519 (fax), or <a href="/cdn-cgi/l/email-protection#75061114031c06351906165b121a03"><span class="__cf_email__" data-cfemail="57243336213e24173b243479303821">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
The LSC Act of 1974 requires grant recipients to have governing
bodies composed of at least 60% attorneys. 42 U.S.C. 2996f(c). LSC
adopted Part 1607 and the 60% requirement in 1976. 41 FR 25899, June
23, 1976. Subsequently, LSC's fiscal year (FY) 1983 appropriation
included a requirement that a majority of each recipient's governing
body be composed of attorneys appointed by state or local bar
associations, also known as the ``McCollum Amendment.'' Public Law 97-
276, 96 Stat. 1186. LSC revised Part 1607 in 1983 to implement the
McCollum Amendment. 48 FR 1971, Jan. 17, 1983. The McCollum Amendment
currently appears in Sec. 502(2)(b)(ii) of LSC's FY 1996
appropriation, which is incorporated through Sec. 502 of LSC's FY 1998
appropriation, as referenced in all LSC appropriations from 1998
through 2024. See, e.g., Public Law 104-134, 110 Stat. 1321; Public Law
105-119, 111 Stat. 2440; Public Law 118-42.
LSC's FY 2024 appropriation changed the minimum attorney percentage
to 33% and eliminated the McCollum Amendment requirement. The
Administrative Provision of this appropriation reiterates the
incorporation of prior appropriations' restrictions by reference. It
also includes language stating that for purposes of applying the board
composition requirements described in LSC's FY 1998 appropriation, the
requirements would be satisfied if at least 33% of a grant recipient's
board were composed of attorneys licensed in the state in which legal
assistance is to be provided. Finally, it includes language stating
that the McCollum Amendment does not apply. Public Law 118-42, Div. C,
Title IV, 141 (2024) .
LSC proposed to make the following changes to incorporate the
statutory changes and to reorganize Sec. 1607.3 for ease of reference.
First, LSC proposed to delete Sec. 1607.3(b)(1) in its entirety and
replace it with a new paragraph (b)(1) stating that a recipient's
governing body must be composed of at least 33% attorneys. LSC proposed
removing the language implementing the McCollum Amendment. LSC also
proposed to redesignate existing paragraphs (b)(2) and (b)(3) as
(b)(1)(i) and (b)(1)(ii), respectively.
[[Page 65551]]
Second, LSC proposed reorganizing the section by relocating the
categories of governing body members currently located in paragraphs
(c) and (d) to paragraphs (b)(2) and (b)(3), respectively, and placing
the processes for appointments into subparagraphs under each category.
LSC believes that restructuring Sec. 1607.3 in this way will make it
easier for readers to understand the categories of membership on LSC
recipients' governing bodies and the considerations recipients use to
recruit and select members.
Third, LSC proposed to redesignate paragraphs (f), (g), and (h) as
(c), (d), and (e).
Finally, LSC proposed revising paragraph (e) to reflect the
statutory change and allow recipient staff to recommend candidates to
their governing bodies. LSC believes this change would empower
recipient staff to identify and propose clients, attorneys, or other
community members with relevant expertise for appointment to their
respective governing bodies.
On April 2, 2024, the LSC Operations and Regulations Committee
voted to recommend that the Board authorize LSC to open rulemaking on
part 1607 and authorize publication of this NPRM in the Federal
Register for notice and comment. On April 8, 2024, the Board accepted
the Committee's recommendation and voted to approve publication of this
NPRM. After consideration of the comments received during the comment
period, on July 24, 2024, the Committee voted to recommend that the LSC
Board adopt this final rule and approve its publication in the Federal
Register. On July 24, 2024, the Board voted to adopt and publish this
final rule.
Materials regarding this rulemaking are available in the open
rulemaking section of LSC's website at <a href="http://www.lsc.gov/about-lsc/laws-regulations-guidance/rulemaking">http://www.lsc.gov/about-lsc/laws-regulations-guidance/rulemaking</a>. After the effective date of the
rule, those materials will appear in the closed rulemaking section at
<a href="http://www.lsc.gov/about-lsc/laws-regulations-guidance/rulemaking/closed-rulemaking">http://www.lsc.gov/about-lsc/laws-regulations-guidance/rulemaking/closed-rulemaking</a>.
II. Comments
LSC received two comments during the public comment period.
Comments were received from the National Legal Aid and Defender
Association (NLADA) and Neighborhood Legal Services of Los Angeles
County (NLSLA), an LSC grantee. Both comments supported LSC's proposed
changes. NLSLA fully supported LSC's changes to Sec. 1607.3(b)(1) due
to the ``increased capacity to identify candidates that have useful
experiences'' that are beneficial and effective to the boards of grant
recipients. NLSLA also agreed with LSC's removal of the McCollum
Amendment to allow ``programs to use their discretion to select
potential attorney members or designate other organizations to propose
candidates.''
NLADA stated that it believed the proposed rule change allows for
``talented individuals to join governing bodies, contributing new and
important experience, skills, and perspectives.'' NLADA further
supported the rule change because it will ``improve the quality of the
attorneys that serve on the governing bodies of LSC grantees.''
LSC is making two technical changes that do not affect the
substance of the final rule. First, at its April 2, 2024, meeting, a
member of the Committee recommended reorganizing paragraph (b)(3) for
consistency with paragraphs (b)(1) and (b)(2). LSC has made this
technical change to the rule text. Additionally, in paragraphs
(b)(1)(i) and (e)(1), LSC is replacing the term ``the poor'' with
``low-income populations'' based on the recommendation of a member of
LSC's Board of Directors. The term ``low-income populations'' is also
more consistent with LSC's use of the Income Eligibility Guidelines.
LSC is otherwise adopting this rule as proposed.
List of Subjects in 45 CFR Part 1607
Grant program--law, Legal services.
For the reasons discussed in the preamble, the Legal Services
Corporation amends 45 CFR part 1607 as follows:
PART 1607--GOVERNING BODIES
0
1. The authority citation for part 1607 is revised to read as follows:
Authority: 42 U.S.C. 2996g(e).
0
2. Amend Sec. 1607.3 by revising paragraphs (b) through (e) to read as
follows.
Sec. 1607.3 Composition.
* * * * *
(b) A recipient's governing body must be composed of:
(1) At least 33% attorneys;
(i) Attorney members may be selected by the recipient's governing
body or may be selected by other organizations designated by the
recipient which have an interest in the delivery of legal services to
low-income populations.
(ii) Selections shall be made to ensure that the attorney members
reasonably reflect the diversity of the legal community and the
population of the areas served by the recipient, including race,
ethnicity, gender, and other similar factors.
(2) At least one-third eligible client members who are eligible
client members when initially selected by the recipient.
(i) Recipients must solicit recommendations for eligible client
members from a variety of appropriate groups designated by the
recipient that may include, but are not limited to, client and
neighborhood associations and community-based organizations that
advocate for or deliver services or resources to the client community
served by the recipient.
(ii) Recipients should solicit recommendations from groups in a
manner that reflects, to the extent possible, the variety of interests
within the client community, and eligible client members should be
selected so that they reasonably reflect the diversity of the eligible
client population served by the recipient, including race, gender,
ethnicity, and other similar factors.
(3) Other members selected by the recipients' governing body or in
another manner described in the recipient's bylaws or policies.
(i) Recipients must appoint or select members so that the governing
body as a whole reasonably reflects the diversity of the areas served
by the recipient, including race, ethnicity, gender, and other similar
factors.
(ii) Recipients should consider recruiting and selecting members
possessing fiscal or nonprofit governance expertise or other skills
necessary to effectively govern the recipient's operations.
(iii) Members of a governing body shall not be dominated by persons
serving as the representatives of a single association, group or
organization, except that eligible client members may be selected from
client organizations that are composed of coalitions of numerous
smaller or regionally based client groups.
(c) Members of a governing body may be selected by appointment,
election, or other means consistent with this part and with the
recipient's bylaws and applicable State law.
(d) Recipients shall make reasonable and good faith efforts to
ensure that governing body vacancies are filled as promptly as
possible.
(e) Recipient staff may recommend candidates for governing body
membership to its governing body and other appointing groups and should
consult with the appointing organizations to ensure that:
(1) Appointees meet the criteria for board membership set out in
this part, including financial eligibility for persons appointed as
eligible clients, bar admittance requirements for
[[Page 65552]]
attorney board members, and the general requirements that all members
be supportive of the purposes of the Act and have an interest in and
knowledge of the delivery of legal services to low-income populations;
(2) The particular categories of board membership and the board as
a whole meet the diversity requirement described in paragraphs
(b)(1)(ii), (b)(2)(ii), and (b)(3)(ii) of this section;
(3) Appointees do not have actual and significant individual or
institutional conflicts of interest with the recipient or the
recipient's client community that could reasonably be expected to
influence their ability to exercise independent judgement as members of
the recipient's governing body.
* * * * *
Dated: August 6, 2024.
Stefanie Davis,
Deputy General Counsel, Legal Services Corporation.
[FR Doc. 2024-17729 Filed 8-9-24; 8:45 am]
BILLING CODE P
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