To ensure that it retains appropriate supervision and control over the State Bar's financial affairs, the board should establish a policy that includes requirements to make sure that the board reviews and approves all documents the State Bar uses in the creation and use of a nonprofit organization, including original and amended bylaws as well as agreements between the State Bar and the organization.
The 2018 fee bill directs the Bar to establish a non-profit entity to support the transition of the State Bar Sections to a standalone entity. A policy establishing eliminating the Bar's ability to establish such entities will be established once the transition of the Sections is complete.
Since submission of the last Update, the Bar was advised by Legislative staff that it should maintain its ability to establish non-profit entities pending the transition of the State Bar Sections to a standalone entity. Anticipating that the Bar will not retain this ability in perpetuity, the Bar has not acted to establish policies.
The Board intends to adopt a policy eliminating its ability to establish nonprofits at an upcoming meeting.
The 2017 fee bill includes provisions which eliminate the State Bar's ability to establish nonprofits, rendering this recommendation moot. Should these provisions not ultimately be adopted, the State Bar will revisit this recommendation.
Agency responses received are posted verbatim.