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NC H714
Bill
Status
4/6/2011
Primary Sponsor
Mary Harrison
Click for details
AI Summary
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Allows nonprofit corporations exempt under Internal Revenue Code sections 501(c)(5) or 501(c)(6) (labor organizations, professional/trade associations, business leagues) to provide legal services to members through licensed North Carolina attorneys.
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Requires the nonprofit's governing structure prevent non-attorneys from controlling the manner or course of legal services and mandates continuous satisfaction of IRS criteria for tax-exempt status.
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Subjects attorneys providing services under this provision to all North Carolina State Bar Rules of Professional Conduct, including Rule 1.13 regarding organization clients.
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Requires associations providing legal services to corporate or organizational members to provide written policies regarding client identification, conflict of interest resolution, scope of services, and applicable fees, with policies subject to State Bar review.
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Permits nonprofits to charge members for legal services rendered by officers, employees, and agents and to compensate those individuals for providing such services.
Legislative Description
Legal Services
Last Action
Re-ref Com On Rules, Calendar, and Operations of the House
6/9/2011