2005 California Business and Professions Code Sections 6210-6228 Indigent Persons

6210.  The Legislature finds that, due to insufficient funding,
existing programs providing free legal services in civil matters to
indigent persons, especially underserved client groups, such as the
elderly, the disabled, juveniles, and non-English-speaking persons,
do not adequately meet the needs of these persons.  It is the purpose
of this article to expand the availability and improve the quality
of existing free legal services in civil matters to indigent persons,
and to initiate new programs that will provide services to them.
The Legislature finds that the use of funds collected by the State
Bar pursuant to this article for these purposes is in the public
interest, is a proper use of the funds, and is consistent with
essential public and governmental purposes in the judicial branch of
government.  The Legislature further finds that the expansion,
improvement, and initiation of legal services to indigent persons
will aid in the advancement of the science of jurisprudence and the
improvement of the administration of justice.
6211.  (a) An attorney or law firm, which in the course of the
practice of law receives or disburses trust funds, shall establish
and maintain an interest bearing demand trust account and shall
deposit therein all client deposits that are nominal in amount or are
on deposit for a short period of time.  All such client funds may be
deposited in a single unsegregated account.  The interest earned on
all such accounts shall be paid to the State Bar of California to be
used for the purposes set forth in this article.
   (b) Nothing in this article shall be construed to prohibit an
attorney or law firm from establishing one or more interest bearing
bank accounts or other trust investments as may be permitted by the
Supreme Court, with the interest or dividends earned on the accounts
payable to clients for trust funds not deposited in accordance with
subdivision (a).
   (c) With the approval of the Supreme Court, the State Bar may
formulate and enforce rules of professional conduct pertaining to the
use by attorneys or law firms of interest bearing trust accounts for
unsegregated client funds pursuant to this article.
   (d) Nothing in this article shall be construed as affecting or
impairing the disciplinary powers and authority of the Supreme Court
or of the State Bar or as modifying the statutes and rules governing
the conduct of members of the State Bar.
6212.  An attorney who, or a law firm which, establishes an interest
bearing demand trust account pursuant to subdivision (a) of Section
6211 shall comply with all of the following provisions:
   (a) The interest bearing trust account shall be established with a
bank or such other financial institutions as are authorized by the
Supreme Court.
   (b) The rate of interest payable on any interest bearing demand
trust account shall not be less than the rate paid by the depository
institution to regular, nonattorney depositors.  Higher rates offered
by the institution to customers whose deposits exceed certain time
or quantity qualifications, such as those offered in the form of
certificates of deposit, may be obtained by an attorney or law firm
so long as there is no impairment of the right to withdraw or
transfer principal immediately (except as accounts generally may be
subject to statutory notification requirements), even though interest
may be sacrificed thereby.
   (c) The depository institution shall be directed to do all of the
following:
   (1) To remit interest on the average daily balance in the account,
less reasonable service charges, to the State Bar, at least
quarterly.
   (2) To transmit to the State Bar with each remittance a statement
showing the name of the attorney or law firm for whom the remittance
is sent, the rate of interest applied, and the amount of service
charges deducted, if any.
   (3) To transmit to the depositing attorney or law firm at the same
time a report showing the amount paid to the State Bar for that
period, the rate of interest applied, the amount of service charges
deducted, if any, and the average daily account balance for each
month of the period for which the report is made.
6213.  As used in this article:
   (a) "Qualified legal services project" means either of the
following:
   (1) A nonprofit project incorporated and operated exclusively in
California which provides as its primary purpose and function legal
services without charge to indigent persons and which has quality
control procedures approved by the State Bar of California.
   (2) A program operated exclusively in California by a nonprofit
law school accredited by the State Bar of California which  meets the
requirements of subparagraphs (A) and (B).
   (A) The program shall have operated for at least two years at a
cost of at least twenty thousand dollars ($20,000) per year as an
identifiable law school unit with a primary purpose and function of
providing legal services without charge to indigent persons.
   (B) The program shall have quality control procedures approved by
the State Bar of California.
   (b) "Qualified support center" means an incorporated nonprofit
legal services center, which has as its primary purpose and function
the provision of legal training, legal technical assistance, or
advocacy support without charge and which actually provides through
an office in California a significant level of legal training, legal
technical assistance, or advocacy support without charge to qualified
legal services projects on a statewide basis in California.
   (c) "Recipient" means a qualified legal services project or
support center receiving financial assistance under this article.
   (d) "Indigent person" means a person whose income is (1) 125
percent or less of the current poverty threshold established by the
United States Office of Management and Budget, or (2) who is eligible
for Supplemental Security Income or free services under the Older
Americans Act or Developmentally Disabled Assistance Act.  With
regard to a project which provides free services of attorneys in
private practice without compensation, "indigent person" also means a
person whose income is 75 percent or less of the maximum levels of
income for lower income households as defined in Section 50079.5 of
the Health and Safety Code. For the purpose of this subdivision, the
income of a person who is disabled shall be determined after
deducting the costs of medical and other disability-related special
expenses.
   (e) "Fee generating case" means any case or matter which, if
undertaken on behalf of an indigent person by an attorney in private
practice, reasonably may be expected to result in payment of a fee
for legal services from an award to a client, from public funds, or
from the opposing party.  A case shall not be considered fee
generating if adequate representation is unavailable and any of the
following circumstances exist:
   (1) The recipient has determined that free referral is not
possible because of any of the following reasons:
   (A) The case has been rejected by the local lawyer referral
service, or if there is no such service, by two attorneys in private
practice who have experience  in the subject matter of the case.
   (B) Neither the referral service nor any attorney will consider
the case without payment of a consultation fee.
   (C) The case is of the type that attorneys in private practice in
the area ordinarily do not accept, or do not accept without
prepayment of a fee.
   (D) Emergency circumstances compel immediate action before
referral can be made, but the client is advised that, if appropriate
and consistent with professional responsibility, referral will be
attempted at a later time.
   (2) Recovery of damages is not the principal object of the case
and a request for damages is merely ancillary to an action for
equitable or other nonpecuniary relief, or inclusion of a
counterclaim requesting damages is necessary for effective defense or
because of applicable rules governing joinder of counterclaims.
   (3) A court has appointed a recipient or an employee of a
recipient pursuant to a statute or a court rule or practice of equal
applicability to all attorneys in the jurisdiction.
   (4) The case involves the rights of a claimant under a publicly
supported benefit program for which entitlement to benefit is based
on need.
   (f) "Legal Services Corporation" means the Legal Services
Corporation established under the Legal Services Corporation Act of
1974 (Public Law 93-355; 42 U.S.C. Sec. 2996 et seq.).
   (g) "Older Americans Act" means the Older Americans Act of 1965,
as amended (Public Law 89-73; 42 U.S.C. Sec. 3001 et seq.).
   (h) "Developmentally Disabled Assistance Act" means the
Developmentally Disabled Assistance and Bill of Rights Act of 1975,
as amended (Public Law 94-103; 42 U.S.C. Sec. 6001 et seq.).
   (i) "Supplemental security income recipient" means an individual
receiving or eligible to receive payments under Title XVI of the
federal Social Security Act, or payments under Chapter 3 (commencing
with Section 12000) of Part 3 of Division 9 of the Welfare and
Institutions Code.
6214.  (a) Projects meeting the requirements of subdivision (a) of
Section 6213 which are funded either in whole or part by the Legal
Services Corporation or with Older American Act funds shall be
presumed qualified legal services projects for the purpose of this
article.
   (b) Projects meeting the requirements of subdivision (a) of
Section 6213 but not qualifying under the presumption specified in
subdivision (a) shall qualify for funds under this article if they
meet all of the following additional criteria:
   (1) They receive cash funds from other sources in the amount of at
least twenty thousand dollars ($20,000) per year to support free
legal representation to indigent persons.
   (2) They have demonstrated community support for the operation of
a viable ongoing program.
   (3) They provide one or both of the following special services:
   (A) The coordination of the recruitment of substantial numbers of
attorneys in private practice to provide free legal representation to
indigent persons or to qualified legal services projects in
California.
   (B) The provision of legal representation, training, or technical
assistance on matters concerning special client groups, including the
elderly, the disabled, juveniles, and non-English-speaking groups,
or on matters of specialized substantive law important to the special
client groups.
6214.5.  A law school program that meets the definition of a
"qualified legal services project" as defined in paragraph (2) of
subdivision (a) of Section 6213, and that applied to the State Bar
for funding under this article not later than February 17, 1984,
shall be deemed eligible for all distributions of funds made under
Section 6216.
6215.  (a) Support centers satisfying the qualifications specified
in subdivision (b) of Section 6213 which were operating an office and
providing services in California on December 31, 1980, shall be
presumed to be qualified support centers for the purposes of this
article.
   (b) Support centers not qualifying under the presumption specified
in subdivision (a) may qualify as a support center by meeting both
of the following additional criteria:
   (1) Meeting quality control standards established by the State
Bar.
   (2) Being deemed to be of special need by a majority of the
qualified legal services projects.
6216.  The State Bar shall distribute all moneys received under the
program established by this article for the provision of civil legal
services to indigent persons.  The funds first shall be distributed
18 months from the effective date of this article, or upon such a
date, as shall be determined by the State Bar, that adequate funds
are available to initiate the program.  Thereafter, the funds shall
be distributed on an annual basis.  All distributions of funds shall
be made in the following order and in the following manner:
   (a) To pay the actual administrative costs of the program,
including any costs incurred after the adoption of this article and a
reasonable reserve therefor.
   (b) Eighty-five percent of the funds remaining after payment of
administrative costs allocated pursuant to this article shall be
distributed to qualified legal services projects.  Distribution shall
be by a pro rata county-by-county formula based upon the number of
persons whose income is 125 percent or less of the current poverty
threshold per county.  For the purposes of this section, the source
of data identifying the number of persons per county shall be the
latest available figures from the United States Department of
Commerce, Bureau of the Census.  Projects from more than one county
may pool their funds to operate a joint, multicounty legal services
project serving each of their respective counties.
   (1) (A) In any county which is served by more than one qualified
legal services project, the State Bar shall distribute funds for the
county to those projects which apply on a pro rata basis, based upon
the amount of their total budget expended in the prior year for legal
services in that county as compared to the total expended in the
prior year for legal services by all qualified legal services
projects applying therefor in the county.  In determining the amount
of funds to be allocated to a qualified legal services project
specified in paragraph (2) of subdivision (a) of Section 6213, the
State Bar shall recognize only expenditures attributable to the
representation of indigent persons as constituting the budget of the
program.
   (B) The State Bar shall reserve 10 percent of the funds allocated
to the county for distribution to programs meeting the standards of
subparagraph (A) of paragraph (3) and paragraphs (1) and (2) of
subdivision (b) of Section 6214 and which perform the services
described in subparagraph (A) of paragraph (3) of Section 6214 as
their principal means of delivering legal services.  The State Bar
shall distribute the funds for that county to those programs which
apply on a pro rata basis, based upon the amount of their total
budget expended for free legal services in that county as compared to
the total expended for free legal services by all programs meeting
the standards of subparagraph (A) of paragraph (3) and paragraphs (1)
and (2) of subdivision (b) of Section 6214 in that county.  The
State Bar shall distribute any funds for which no program has
qualified pursuant hereto, in accordance with the provisions of
subparagraph (A) of paragraph (1) of this subdivision.
   (2) In any county in which there is no qualified legal services
projects providing services, the State Bar shall reserve for the
remainder of the fiscal year for distribution the pro rata share of
funds as provided for by this article.  Upon application of a
qualified legal services project proposing to provide legal services
to the indigent of the county, the State Bar shall distribute the
funds to the project.  Any funds not so distributed shall be added to
the funds to be distributed the following year.
   (c) Fifteen percent of the funds remaining after payment of
administrative costs allocated for the purposes of this article shall
be distributed equally by the State Bar to qualified support centers
which apply for the funds.  The funds provided to support centers
shall be used only for the provision of legal services within
California.  Qualified support centers that receive funds to provide
services to qualified legal services projects from sources other than
this article, shall submit and shall have approved by the State Bar
a plan assuring that the services funded under this article are in
addition to those already funded for qualified legal services
projects by other sources.
6217.  With respect to the provision of legal assistance under this
article, each recipient shall ensure all of the following:
   (a) The maintenance of quality service and professional standards.
   (b) The expenditure of funds received in accordance with the
provisions of this article.
   (c) The preservation of the attorney-client privilege in any case,
and the protection of the integrity of the adversary process from
any impairment in furnishing legal assistance to indigent persons.
   (d) That no one shall interfere with any attorney funded in whole
or in part by this article in carrying out his or her professional
responsibility to his or her client as established by the rules of
professional responsibility and this chapter.
6218.  All legal services projects and support centers receiving
funds pursuant to this article shall adopt financial eligibility
guidelines for indigent persons.
   (a) Qualified legal services programs shall ensure that funds
appropriated pursuant to this article shall be used solely to defray
the costs of providing legal services to indigent persons or for such
other purposes as set forth in this article.
   (b) Funds received pursuant to this article by support centers
shall only be used to provide services to qualified legal services
projects as defined in subdivision (a) of Section 6213 which are used
pursuant to a plan as required by subdivision (c) of Section 6216,
or as permitted by Section 6219.
6219.  Qualified legal services projects and support centers may use
funds provided under this article to provide work opportunities with
pay, and where feasible, scholarships for disadvantaged law students
to help defray their law school expenses.
6220.  Attorneys in private practice who are providing legal
services without charge to indigent persons shall not be disqualified
from receiving the services of the qualified support centers.
6221.  Qualified legal services projects shall make significant
efforts to utilize 20 percent of the funds allocated under this
article for increasing the availability of services to the elderly,
the disabled, juveniles, or other indigent persons who are members of
disadvantaged and underserved groups within their service area.
6222.  A recipient of funds allocated pursuant to this article
annually shall submit a financial statement to the State Bar,
including an audit of the funds by a certified public accountant or a
fiscal review approved by the State Bar, a report demonstrating the
programs on which they were expended, a report on the recipient's
compliance with the requirements of Section 6217, and progress in
meeting the service expansion requirements of Section 6221.
   The Board of Governors of the State Bar shall include a report of
receipts of funds under this article, expenditures for administrative
costs, and disbursements of the funds, on a county-by-county basis,
in the annual report of State Bar receipts and expenditures required
pursuant to Section 6145.
6223.  No funds allocated by the State Bar pursuant to this article
shall be used for any of the following purposes:
   (a) The provision of legal assistance with respect to any fee
generating case, except in accordance with guidelines which shall be
promulgated by the State Bar.
   (b) The provision of legal assistance with respect to any criminal
proceeding.
   (c) The provision of legal assistance, except to indigent persons
or except to provide support services to qualified legal services
projects as defined by this article.
6224.  The State Bar shall have the power to determine that an
applicant for funding is not qualified to receive funding, to deny
future funding, or to terminate existing funding because the
recipient is not operating in compliance with the requirements or
restrictions of this article.
   A denial of an application for funding or for future funding or an
action by the State Bar to terminate an existing grant of funds
under this article shall not become final until the applicant or
recipient has been afforded reasonable notice and an opportunity for
a timely and fair hearing.  Pending final determination of any
hearing held with reference to termination of funding, financial
assistance shall be continued at its existing level on a
month-to-month basis.  Hearings for denial shall be conducted by an
impartial hearing officer whose decision shall be final.  The hearing
officer shall render a decision no later than 30 days after the
conclusion of the hearing.  Specific procedures governing the conduct
of the hearings of this section shall be determined by the State Bar
pursuant to Section 6225.
6225.  The Board of Governors of the State Bar shall adopt the
regulations and procedures necessary to implement this article and to
ensure that the funds allocated herein are utilized to provide civil
legal services to indigent persons, especially underserved client
groups such as but not limited to the elderly, the disabled,
juveniles, and non-English-speaking persons.
   In adopting the regulations the Board of Governors shall comply
with the following procedures:
   (a) The board shall publish a preliminary draft of the regulations
and procedures, which shall be distributed, together with notice of
the hearings required by subdivision (b), to commercial banking
institutions, to members of the State Bar, and to potential
recipients of funds.
   (b) The board shall hold at least two public hearings, one in
southern California and one in northern California where affected and
interested parties shall be afforded an opportunity to present oral
and written testimony regarding the proposed regulations and
procedures.
6226.  The program authorized by this article shall become operative
only upon the adoption of a resolution by the Board of Governors of
the State Bar stating that regulations have been adopted pursuant to
Section 6225 which conform the program to all applicable tax and
banking statutes, regulations, and rulings.
6227.  Nothing in this article shall create an obligation or pledge
of the credit of the State of California or of the State Bar of
California.  Claims arising by reason of acts done pursuant to this
article shall be limited to the moneys generated hereunder.
6228.  If any provision of this article or the application thereof
to any group or circumstances is held invalid, such invalidity shall
not affect the other provisions or applications of this article which
can be given effect without the invalid provision or application,
and to this end the provisions of this article are severable.