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THE NORTH CAROLINA STATE BAR

JOURNAL
SUMMER
 2022

                        IN THIS ISSUE
            Human Trafficking in North Carolina page 6
         Sweeping Changes Proposed to CLE Rules page 10
          Adjusting to a Hybrid Work Environment page 26
JOURNAL - IN THIS ISSUE Human Trafficking in North Carolina page 6 Sweeping Changes Proposed to CLE Rules page 10 Adjusting to a Hybrid Work ...
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JOURNAL - IN THIS ISSUE Human Trafficking in North Carolina page 6 Sweeping Changes Proposed to CLE Rules page 10 Adjusting to a Hybrid Work ...
THE
                     NORTH CAROLINA
                        STATE BAR

       JOURNAL
                                                                           FE AT U R E S
                      Summer 2022
                   Volume 27, Number 2
                                                                      6    Human Trafficking in North Carolina,
                           Editor                                          and How the WORTH Court Works to
                    Jennifer R. Duncan                                     Combat It
                                                                           By Jennifer Haigwood, Lindsay Lane, and
                                                                           Bengie Hair

    © Copyright 2022 by the North Carolina                            10   CLE Board Proposes Sweeping
    State Bar. All rights reserved. Periodicals                            Changes to CLE Rules
    postage paid at Raleigh, NC, and additional                            By Peter Bolac
    offices. POSTMASTER: Send address
    changes to the North Carolina State Bar, PO                       26   Adjusting to a Hybrid Work
    Box 25908, Raleigh, NC 27611. The North
                                                                           Environment: Making Sense of the
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    mail or email (jduncan@ ncbar.gov) to the
    editor. Publishing and editorial decisions are
                                                                      32   Investing in our Future Leaders—30
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    writing, the timeliness of the article, and the
    potential interest to the readers of the                          37   Personal Jurisdiction
    Journal. The Journal reserves the right to edit                        By R. Daniel Gibson
    all manuscripts. The North Carolina State
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T H E N O RT H C A RO L I N A S TAT E B A R J O U R N A L                                                            3
JOURNAL - IN THIS ISSUE Human Trafficking in North Carolina page 6 Sweeping Changes Proposed to CLE Rules page 10 Adjusting to a Hybrid Work ...
D E PA RT M E N TS                        45    Legal Ethics                           56      Distinguished Service Awards
      5   President’s Message                   47    Rule Amendments                        56      Council Adopts DEI Statement
      39  The Disciplinary Department           50    Proposed Ethics Opinions               57      July Bar Exam Applicants
      41  Upcoming Appointments                                                              62      In Memoriam
      42  Legal Specialization                  B A R    U P D AT E S
      44  Lawyer Assistance Program             55    Law School Briefs

    Officers                                       Meredith Nicholson, Durham                     Forest City
    Darrin D. Jordan, Salisbury               17:  Charles E. Davis, Mebane            42:        Michael A. Lovejoy,
      President 2021-2022                     18:  Charles Gordon Brown, Chapel Hill              Hendersonville
    Marcia Armstrong, Smithfield              20:  Joshua Dale Malcolm, Pembroke       43:        Zeyland G. McKinney, Murphy
     President-Elect 2021-2022                21:  F. Davis Poisson III, Wadesboro
    A. Todd Brown, Charlotte                  22:  Matthew W. Smith, Eden              Public Members
     Vice-President 2021-2022                 23:  Thomas B. Langan, Pilot             Patricia Head, Littleton
    Barbara R. Christy, Greensboro                 Mountain                            Dr. Joseph E. Johnson, Greensboro
     Past-President 2021-2022                 24: Patrice A. Hinnant, Greensboro       Mohan Venkataraman, Morrisville
    Alice Neece Mine, Chapel Hill                  Manisha P. Patel, Greensboro
      Secretary-Treasurer                     24H: Kathleen E. Nix, High Point         Executive Director
                                              25: Jay White, Concord                   Alice Neece Mine
    Councilors                                26: David N. Allen, Charlotte
    By Judicial District                           Robert C. Bowers, Charlotte         Assistant Executive Director
    1:    C. Everett Thompson II, Elizabeth        George V. Laughrun II, Charlotte    Peter Bolac
          City                                     Dewitt McCarley, Charlotte
    2:    Tom D. Anglim, Washington                Gena Graham Morris, Charlotte       Counsel
    3:    Robert C. Kemp III, Greenville           Eben T. Rawls, Charlotte            Katherine Jean
    4:    Scott C. Hart, New Bern                  Timika Shafeek-Horton
    5:    Kevin Joseph Kiernan, Clinton       27: T. Gregory Jones, Salisbury          Editor
    6:    W. Allen Cobb Jr., Wilmington       28: John Webster, Albemarle              Jennifer R. Duncan
    7:    Takiya Fae Lewis, Ahoskie           29: Richard Costanza, Southern Pines
    8:    Michael B. Peters, Tarboro               William C. Fields Jr., Raeford      Publications Editorial Board
    9:    Jonathan Mark Herring, Kinston      30: H. Ligon Bundy, Monroe               Andrea N. Capua, Chair
    10: Julie L. Bell, Raleigh                31: George M. Cleland IV, Winston-       W. Allen Cobb, Jr., Vice-Chair
          Heidi C. Bloom, Raleigh                  Salem                               Heidi C. Bloom
          Walter E. Brock Jr., Raleigh             Kevin G. Williams, Winston-         Richard J. Constanza
          Ashley H. Campbell, Raleigh              Salem                               Margaret Dickson (Advisory Member)
          Katherine Ann Frye, Raleigh         32: Daryl G. Davidson, Taylorsville      Patricia Head (Public Member)
          Kimberly A. Moore, Raleigh          33: Roy Lawrence McDonald II,            Mark P. Henriques (Advisory Member)
          Robert Rader, Raleigh                    Lexington                           Robert C. Kemp III
          Warren Savage, Raleigh              34: John S. Willardson, Wilkesboro       Tom B. Langan
    11: James Thomas Burnette, Oxford         35: Andrea N. Capua, Boone               Takiya Fee Lewis
    12: Eddie S. Winstead III, Sanford        36: M. Alan LeCroy, Morganton            Kathleen E. Nix
    13: Dionne Loy Fortner, Smithfield        37: Clark R. Bell, Asheboro              Timika Shareff-Horton
    14: Harold Lee Boughman Jr.,              38: Michael Randalph Neece, Gastonia     Camille Stell (Advisory Member)
          Fayetteville                        39: Rebecca J. Pomeroy, Lincolnton       Darci White (Advisory Member)
    15: Michael R. Ramos, Shallotte           40: Anna Hamrick, Asheville              G. Gray Wilson (Advisory Member)
    16: Dorothy Hairston Mitchell, Durham     41: Merrimon Burwell Oxley,

4                                                                                                                      SUMMER 2022
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T H E        PRES I DE NT’S              M ES SA GE

Takeaways from the April 2022 Quarterly Meeting
B   Y   DARRI    N   D. JO      R D AN

50 Year Lawyers Luncheon                                    to Raleigh in jeopardy; in reality he may not       will soon be on my schedule), but I’ve also
    For longer than I have been a member of                 live to see October.                                attended gatherings of large groups both
the North Carolina State Bar Council, the                       The presentation was not a solemn occa-         indoors and outdoors, with and without a
State Bar has recognized attorneys who have                 sion in light of the circumstances, but was a       mask. When the officers and the executive
been licensed for 50 years at a luncheon during             celebration that included his wife, his son, his    staff of the State Bar decided to convert the
the annual meeting held each                                                 grandson, his former law           January Quarterly Meeting to virtual events,
October. This has been de-                                                   partner, other individuals         well, let’s just say that really took me to a new
scribed by past and present of-                                              from the local courthouse,         all-time low. But the planning and scheduling
ficers and councilors as one of                                              and his paralegal and friend       of an in-person meeting during the April
the highlights of their service                                              of over 31 years, who had          Quarterly Meeting reenergized me, and I was
to the State Bar Council. I                                                  written a poem about the           really excited to be in the presence of friends
have always enjoyed attending                                                service this gentleman had         and colleagues I hadn’t seen since October.
these luncheons during my                                                    provided to his community              The April Quarterly Meeting was every-
time on the council, and I can’t                                             and to his clients. It was truly   thing I had hoped for and more. The progress
remember a time when I’ve                                                    incredible to have the oppor-      made by the council is a testament to how
missed this event. I not only                                                tunity to be a part of this        much good work can be accomplished when
consider it a wonderful oppor-                                               presentation.                      you are in the same room with other deci-
tunity to meet individuals I’ve                                                 The recognition of an           sionmakers; virtual meetings are convenient,
never met, but it is also a great                                            individual who has been            but not as effective. If you disagree, let’s just
time to hear “war stories” from long and inter-             licensed to practice law for 50 years is an         say we will have to agree to disagree and still
esting careers, many of which provide insight               important event for the North Carolina State        be friends.
into how practicing law has evolved.                        Bar Council and, as I experienced in going to           Shortly after the April Quarterly meeting,
    These luncheons have always been mean-                  this rural county, it is extremely meaningful       I decided that it would be a good idea to do
ingful to me and to the honorees. Over the                  to the individuals being honored.                   an at-home COVID test. There are many fac-
last two years, the health crisis that gripped                  I would recommend reading the “life in          tors that led me to that decision which I will
our world put these celebrations on hold, and               the law” essays of the Class of 1971, which         not go into, but I was not surprised when the
we searched for an opportunity to recognize                 can be found on the State Bar’s website at          at-home test was positive, and a subsequent
these lawyers at an “in person” event. After                bit.ly/2022-50Year. There are funny stories,        PCR test was also positive. There is no way of
two postponements, we were finally able to                  stories that provide historical context, and        knowing where or when I was infected. Some
schedule the luncheon celebrating the 1971                  one of my favorites, Michael Crowell’s 19           believe that I was infected during the week of
50 year lawyer class for the April 2022                     “lessons from 50 years of practicing law.”          the quarterly meeting, and some might believe
Quarterly Meeting. The importance and                       Finally, I would encourage you to look at the       my infection was the result of my “irresponsi-
meaningfulness of this luncheon to the hon-                 list of the Class of 1971 and reach out to          ble behavior” (see the comments in my open-
orees became even more clear to me as we                    them with a call or a card congratulating           ing paragraph). To me, it really doesn’t matter
approached the April meeting.                               them on this accomplishment. In October of          where it came from and how I got it.
    A week before that meeting, I was asked to              this year, we will hopefully be back on sched-          For some time now I have believed that at
travel to one of our rural counties to present              ule as we honor the Class of 1972.                  some point two things will become realities
a certificate of appreciation to a North                                                                        when it comes to COVID. First, we all will
Carolina attorney who will have been a                      COVID Revisits                                      be infected (or already have been and don’t
licensed North Carolina lawyer for 50 years                     I have always described myself as a “glass      know it). Second, it is time to “leave the cave”
this coming fall. As I mentioned, these pre-                half full” kind of person and, I sincerely hope     and get back to living as we did pre-pandem-
sentations usually take place at our October                that I’ve made that apparent in how I have          ic. My recent experience with COVID has
Annual Meeting, but this distinguished gen-                 lived my life and how I approach each day.          not changed my mind as to the latter, but that
tleman has been diagnosed with cancer and is                During the pandemic, I have been cautious           is because my symptoms were very mild, and
currently in decline in a way that puts the                 but not overly cautious. I’ve been vaccinated
chances that he will be well enough to come                 and taken the booster (the second booster           CONTINUED ON PAGE 24

T H E N O RT H C A RO L I N A S TAT E B A R J O U R N A L                                                                                                      5
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Human Trafficking in North
                       Carolina, and How the WORTH
                       Court Works to Combat It
BY J   E N N I F E R   H   AI G WOOD   , LI   N DS AY   L   ANE   ,    A ND   B   ENGIE   HA   IR

                 I
                                n   January     2022,       Jennifer

                                Haigwood, chair of the North

                                Carolina Human Trafficking

                                                                                                                                                     mmg1design/istockphoto.com
                                Commission, served as guest host

on All Things Judicial, a podcast from the North Carolina Judicial

Branch. Every year, January is recognized as Human Trafficking

Awareness month. The January episode highlighted the We Overcome Recidivism through Healing (WORTH) Court, which is a human traf-

ficking diversion court in Cumberland County. Lindsey Lane, former assistant district attorney in Cumberland County, and Bengie Hair, coor-

dinator for the Cumberland County WORTH Court Program served as podcast guests.

   Until recently, Ms. Lane was the main         senior legal counsel for the Human                 January podcast.
prosecutor for human trafficking cases in        Trafficking Institute. Mr. Hair is the coordi-
Cumberland County. She also served as pros-      nator of the WORTH Court, which is North           What is human trafficking?
ecutor in the WORTH Court and, along             Carolina’s first human trafficking diversion          Ms. Lane: The legal definition in North
with Cumberland County District Court            court, organized in 2019. He organizes the         Carolina for human trafficking is when a per-
Judge Toni King, was instrumental in the         court’s advisory council activities run by         son knowingly or in reckless disregard of the
program’s initial establishment. Lindsey is      organizations that help both clients and staff.    consequences of the action, recruits, entices,
now located in Alabama and works as the             Following is an edited transcription of the     harbors, transports, provides, or obtains by

6                                                                                                                                  SUMMER 2022
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any means another person with intent that                   nationwide year after year, including in NC.       nal charges because of the trafficker. They’d
that person be held in involuntary servitude                This seems to be the one that’s most com-          take the fall for things like drug charges, or
or sexual servitude. This is done by force,                 monly thought of when you hear the term            theft charges, and they’d take the brunt of
fraud, or coercion. Practically speaking, it’s              “human trafficking.” Cases involve exploit-        these charges to protect the trafficker. What
when someone profits from exploiting anoth-                 ing people for money, and it’s usually from a      Mr. West and I were seeing in the District
er person. That can be through commercial                   very vulnerable population. Traffickers rec-       Attorney’s Office in Cumberland County
sex, such as prostitution, or forced labor.                 ognize vulnerability in victims. We see this       were multiple defendants who were charged
                                                            with young victims, such as runaway chil-          and had a known history of being engaged in
This is a complex crime and includes                        dren or children in the foster care system.        the prostitution lifestyle. We would see they
many situations. During your time                           They have no family support. Traffickers           were picking up various misdemeanor
prosecuting these cases, can you                            recruit them, groom them, and manipulate           charges—drug charges, theft charges—but
describe different scenarios you saw?                       them into either forced labor or, especially,      they weren’t specifically charged with human
    Ms. Lane: There are a lot of different                  sex trafficking. This is also true for those who   trafficking because they were the victims in
types. NC divides trafficking into two cate-                suffer from substance abuse problems. We           these cases. It didn’t trigger our state’s safe har-
gories: labor trafficking, which is involuntary             see that a lot. They’re so desperate and bound     bor law to try to provide them with relief for
servitude; and commercial sex trafficking,                  by their addiction. They find themselves in        that charge, but there was definitely a need to
which we call sexual servitude. Labor traffick-             over their heads with drug debt to their traf-     get them out of that trafficking lifestyle and
ing includes someone who is forced to                       ficker, and they get forced into that lifestyle.   back into society.
work—often without pay—and the employ-                                                                              It was our general policy that we would
er is physically forcing them to work or coerc-             I’ve learned during my time on the com-            not charge victims, especially in cases where
ing them by some means, or they’re engaged                  mission that people often don’t know they          we saw it could be dangerous to them. For
in some kind of fraud. Sometimes in NC, in                  are victims or don’t identify as such. The         example, if the trafficker finds out that their
an area such as agriculture or domestic work,               commission encourages best practice                victim has been charged and thinks they
it involves someone who comes from a very                   models when addressing this issue, and             might be cooperating with law enforcement,
vulnerable population. Maybe they have a                    one best practice is not arresting victims.        that could put the victim at risk for harm.
vulnerable legal status, specifically immi-                 It seems evident that potential victims or         Also, if the trafficker bonded them out of jail,
grants. And it might be that their visas are                people at high risk are encountering the           what we were seeing is the victim racking up
being held by the employer to exploit them                  court system. Is this what led to or is a          a debt to their trafficker, who would force
for free labor. But it can also include child               reason for a diversion court?                      them to pay off that debt by making them
labor, where children are being worked ille-                    Ms. Lane: Shockingly, in my experience         work in the sex trafficking industry. And
gally and not being paid. And NC also has                   dealing with victims and working with them         that’s when Cumberland County said, “Hey,
what’s more commonly known—the com-                         over the past several years, that’s absolutely     let’s create a WORTH diversion court,” and
mercial sex trafficking industry. That’s where              correct. Most victims did not know they            try to help victims and persons who might be
traffickers are using force, fraud, or coercion             were being trafficked at the time it was tak-      vulnerable to traffickers.
to cause another person to work in commer-                  ing place and said, “I just didn’t know. I
cial sex. This is what’s most well known and                couldn’t see what was going on.” It wasn’t         We are going to hear more detail about the
most often prosecuted. We see this primarily                until they were removed from that situation        court next, but from your experience, do
online, where there are hundreds of websites                that they realized they were being exploited       you believe this model is worthy of repli-
that traffickers use to advertise their victims             by the trafficker. They either thought they        cation in other North Carolina counties?
and solicit buyers. And of course, the traffick-            were in a romantic relationship with the               Ms. Lane: Absolutely. The WORTH
er takes the money that’s received from those               trafficker, or they were so dependent on           Court is such an amazing tool in cases that
commercial sex acts.                                        drugs they were blind to the fact they were        would ordinarily go undetected or slip
    We also see a hybrid type of trafficking                being exploited. They still have loyalty to        through the cracks. It’s had a two-fold effect.
that you might have heard of on the news                    their trafficker, and this is a complex sce-       One, we’re serving the victim and preventing,
involving massage parlors. That’s when vic-                 nario of trauma bonding that’s unique to           hopefully, potential victims from being pulled
tims are engaging in forced labor, but they                 human trafficking. Victims can’t just walk         into a trafficking ring by meeting them where
are also engaging in the commercial sex                     away. The hold that the trafficker has on          they are and giving them an avenue to get out
industry. Maybe they’re working without                     them is very strong—sometimes it’s physical        of that life. We will offer them services and, if
pay, or maybe their visas are being held by                 abuse, sometimes it’s the drug abuse, or           they’re interested, they can help themselves
their trafficker. But they’re also providing                sometimes it’s extortion, where the trafficker     break free from that cycle, and if they’re not,
sexual services.                                            threatens to have the victim deported if they      that’s OK, too. What we are also seeing is that
    At the Human Trafficking Institute, we                  are in illegal status. Or sometimes it would       when we build up and create a healthy victim,
produce an annual report that collects the                  just be familial shame—the trafficker threat-      we are also improving our success rate in
data on all federal human trafficking cases                 ens to tell their family they have engaged in      prosecution. It makes sense that a healthy vic-
that are filed in the United States. By far,                things like commercial sex.                        tim is going to be in a much better position
commercial sex trafficking involving prosti-                    What would often happen in these types         to testify at trial and confront his or her traf-
tution is the most commonly charged                         of situations is the victim would incur crimi-     ficker. So, by serving the victim, we are actu-

T H E N O RT H C A RO L I N A S TAT E B A R J O U R N A L                                                                                                       7
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ally seeing more success busting the trafficker    Benjie, what is the WORTH Court, and               of any case management service. There is an
and saving exponential lives by doing so.          can you explain its description and                assessment done after an intake that helps
                                                   purpose?                                           determine an individual’s immediate pending
As you know, many people feel human                    Mr. Hair: WORTH Court is a diversion           needs, what the long-term needs throughout
trafficking is a “big city” crime. If another      court set up to manage human trafficking           the 12-to-18-month WORTH court process
county is interested in such a program,            survivor cases by providing supportive care        might be, and what their needs following
how many referrals justify starting this           and intervention services. We’re a little over     their participation might be. The services
initiative?                                        two years old, and have had 35 referrals, with     determined by the assessment to be neces-
     Ms. Lane: Anyone who has worked in this       15 dismissals out of those referrals. We’ve had    sary—such as housing, transportation, med-
industry knows that human trafficking hap-         ten graduates and currently have ten active        ical services, substance abuse supportive care
pens everywhere. It has no respect for big         participants. We’re based in Cumberland            services, and mental health services—are set
cities or small towns. It happens in all com-      County, and we’re a little bit different from      up by the case management entity. We have
munities. We know from the cases that have         other diversion courts, such as drug courts        obtained these services by establishing mem-
been charged in Cumberland County that             and veterans’ courts, in that we don’t meet as     orandums of agreement with local communi-
victims are often transported from place to        frequently as other courts do, and we have         ty providers, identified through our council
place, and depending on where the demand           outside resources within the community that        members who have relationships with the
is, the trafficker will take the victim wherever   provide a lot of the supportive services for our   providers. That’s one of the values of setting
he can make the most money. A diversion            participants.                                      up the council in the beginning—we became
court is beneficial in any jurisdiction. I prom-                                                      connected to the community and to people
ise that human trafficking is going on even if     Who does the court see and how do they             willing to work with us, whether we had a
it is not immediately recognizable. It is espe-    get there?                                         dollar to pay them or not. These people were
cially important in our more metropolitan              Mr. Hair: Referrals for the WORTH              willing to support the WORTH Court and
areas, where you see the most charges for          Court typically come from the district attor-      what it stands for.
human trafficking. It makes sense that in          ney’s office and the public defender’s office.
those places we will find more victims that        We do get some referrals from private attor-       Diversion programs have long been used
could utilize these services.                      neys. It’s basically a system whereby individu-    as alternatives to incarceration. Is there
                                                   als who appear in court—either superior            anything different about this program as
Lastly, what stakeholders are necessary            court or district court—are identified as hav-     compared to other diversion court
to support the program?                            ing been a victim of human trafficking, and        models?
    Ms. Lane: No one person can do this            have charges against them for an offense of            Mr. Hair: Other diversion courts have
alone. You can ask Judge King from                 some nature. It’s recognized that they could       more frequent interaction with the individ-
Cumberland County, or Billy West, who is           benefit from supportive care activity, and that    ual in the court setting, and one of the
the elected district attorney of Cumberland        they, as a victim, have not perpetuated a          things we find with human trafficking sur-
County, or even our public defenders. They         crime, but have been charged with a crime,         vivors is that they don’t need to be retrauma-
will tell you that it takes a village to develop   and they’re in court and are seeking some type     tized. They’ve been through a lot of trauma
a court like this, and more importantly to         of relief. Having been charged as a defendant,     and sometimes it’s been for a lengthy period
make it successful. Watching the changes           they are eligible to come to one of the diver-     of time. So, what we did in the beginning—
that we have affected in the lives of the par-     sion courts. They can be referred to us and we     and this is due to the insight of Judge
ticipants that have already been through the       can provide them with the services of              King—is we had them come into court only
program, it’s absolutely worth it. Now, per-       WORTH Court. If the participant agrees to          every two months. In the interim period
sonally, as a prosecutor, it took our office,      come to WORTH Court, and the district              they are working with their case manage-
through Mr. West, recognizing that a vic-          attorney’s office agrees that the individual’s     ment provider, and we get weekly updates
tim-centered approach is important. It’s nec-      charges will be held back until they have          on their progress and their attendance to
essary not just for the well-being of that vic-    completed WORTH Court, then those                  case management and group sessions. Every
tim, but for the successful prosecution of the     charges will be dismissed. The individual will     month we get a cumulative report on their
trafficker.                                        participate in WORTH Court for a period of         total activity. We’re able to keep in touch
                                                   12 to 18 months.                                   with what’s going on with them, but we, as
Thank you so much for taking time with                                                                a different type of court, are not having
us today. Any closing thoughts?                    What types of services are most com-               them appear in court and profess to their
    Ms. Lane: If anyone is interested in start-    monly needed for participants or what              progress. By doing so, we hope to reduce
ing a diversion court program in your com-         can be offered?                                    stress. A lot of times appearing in court itself
munity, please reach out to the commission             Mr. Hair: All participants are involved in     is traumatic to an individual. We’re trying to
or to the WORTH Court directly. It’s such an       case management services. These are services       help them make the transition from being in
invaluable resource, and each city should real-    we have designed specifically for human traf-      a stressful environment to one that’s a little
ly be looking into how they’re combatting          ficking survivors. The case management is          more relaxed, while showing them care so
human trafficking. Be mindful that you’re          tailored so that the individual can comply         they can overcome some of what they have
working from a victim-centered approach.           with the care plan, which is a core component      endured.

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The commission is so glad to have this                      are you going to look at the development of           sive and it’s not something that makes people
program in the state. If others want to ex-                 the court as it’s growing, as it’s going about its    feel uncomfortable. Each day, WORTH
plore this option in their county, are there                business? The concept of “build it and they           Court has done good work in our commu-
a few key points of major significance                      shall come” sometimes happens. Right away             nity. And we see in every one of the individ-
they should know?                                           we had a lot of referrals, and we had to figure       uals with whom we’ve worked the daily strug-
     Mr. Hair: The program was conceptualized               out how we were going to manage everything.           gle to overcome.
and put into practice in early 2019. We became              The fourth area is collecting data. I started             One of the things I can say about the ten
active in the fall of 2019, so we have been                 right away setting up my own system for col-          individuals who have graduated—to date, none
providing direct services for about two years.              lecting data and reporting out that data, so we       of them has relapsed. That’s one of the things
During that time, we have been tracking the                 had something to show for what we were do-            I’m most proud of with this program. One of
successes and challenges of putting this type               ing. A little over a year into the process, I real-   the points I will make about our case manage-
of court in place. We’re a little bit different,            ized there were some key data elements I was          ment efforts and this term “WORTH,” is that
and with that we’ve had to adjust the court                 not collecting that needed to be reported—            when an individual completes the program
system to our needs. We’ve all had to do a                  data that would help us understand a little           and graduates, the services and the supportive
little give and take. In doing so, we have noted            more about the work we’re doing, and tell oth-        care services are still there for them. Those serv-
what we feel are the best practices. Through                ers about it. We have best practices we can           ices will remain for as long necessary to con-
that process, I came up with an outline of best             share with any other judicial district in this        tinue growing and healing.
practices with 12 categories of how to put this             state looking at implementing a similar type
type of court together, taking into account the             of court, and we are willing to share it.             Thank you so much for taking time with
administrative components, the judicial com-                                                                      us today. Any closing thoughts?
ponents, and the sustainability of this type of             WORTH stands for We Overcome Recidi-                     Mr. Hair: This has been a great opportu-
program. We also considered the strategic plan-             vism Through Healing. Why did the plan-               nity to review our practices, and sometimes
ning piece, taking into account what services               ning group choose to use this name?                   we take our best practices and make them
we needed to have in place, and our desire to                   Mr. Hair: Judge King came up with the             better. We are willing to share with other ju-
reduce the trauma of those services.                        name. It reflects the “WE,” meaning that              dicial districts what our experience has been,
     Out of the 12 categories, we came up with              we’re a team, and we like to think of our-            and we’re willing to mentor folks who wish
four key areas that we determined any kind of               selves as a team. We constantly strive to             to entertain the idea and implement a
court would need to consider when starting a                overcome recidivism, which is so much a               WORTH Court program. n
new WORTH-type court. One of those is                       part of the lives of the people with whom we
how to integrate that court into the existing               work. We do this through healing, and that                Human trafficking is a crime that involves
court system, with as little stress as possible.            healing is a constant effort, and it happens          all disciplines, communities, and systems. The
The next one would be the administrative                    through many different methods. It may                courts play a major role in identifying and ad-
oversight. How are you going to address the                 mean physical healing, it may mean mental             dressing human trafficking. If you believe you
administrative function? Such as, if you are                healing, it may be that the victim has to             are a victim or know a victim, there is help
awarded money, how do you receive that                      define how they see themselves and com-               available. Call the National Human Trafficking
money and where are those funds going to be                 pletely reinvent that definition.                     Hotline at 1-888-373-7888 or text BeFree. For
placed? More than likely, this court will not                   WORTH also, as a term, signifies that             more information about the WORTH Court or
be a 501(c) nonprofit. Someone has to manage                the person has recognized their value. This is        other human trafficking programs, please visit
the funds. The third area is operations and                 a very appropriate term for individuals who           the NC Human Trafficking Commission’s web-
programmatic development. How are you go-                   are survivors, and it is a term that has proven       site, nccourts.gov/ commissions/human-traffick-
ing to account for your operations, and how                 to be very appealing to others. It’s not offen-       ing-commission, or call (919) 890-1424.

T H E N O RT H C A RO L I N A S TAT E B A R J O U R N A L                                                                                                         9
JOURNAL - IN THIS ISSUE Human Trafficking in North Carolina page 6 Sweeping Changes Proposed to CLE Rules page 10 Adjusting to a Hybrid Work ...
CLE Board Proposes Sweeping
                         Changes to CLE Rules
B   Y   PE   T E R   B   O L AC

O
                                   n March 12, 2022, the North Carolina State Bar’s Board

                                   of Continuing Legal Education (CLE Board) approved

                                   large-scale amendments to its rules following a multi-

                                   year review process. The CLE Board believes that these

                                                                                                                                                   scibak/istockphoto.com
proposed changes will have the combined effect of providing more flexibility for lawyers,

while also improving efficiency for the CLE program.

    This executive summary details the key       hours), have become both inefficient and         publication. The CLE Board and the council
changes. The full text of proposed rule          unnecessary.                                     are very interested in receiving comments
changes follows this summary. Lawyers are            Beginning in 2020, the Board of              from both lawyers and sponsors. In addition
encouraged to read both the summary and          Continuing Legal Education undertook an          to publication in this edition of the Journal,
the full-text version of the proposed            all-encompassing review of its rules to create   we intend to hold multiple question and
amendments.                                      a more efficient and flexible CLE program.       answer sessions for lawyers, and we are avail-
    The rules of the Continuing Legal            The review included meetings with State Bar      able to meet with bar groups and other pro-
Education program were originally adopted        CLE directors in other states, where board       fessional associations over the next quarter.
by Order of the Supreme Court in 1987.           members were able to ask questions and learn     The CLE Board, along with the council, will
While various minor changes have been            what works best around the country. The          review any comments received. Following the
made in the 35 years since adoption, the gen-    review process was conducted transparently       comment period, which ends July 1, if no
eral structure of the CLE program remains        (meetings are available on the State Bar’s       substantive changes are needed, the rules will
unchanged since its inception. Requirements      YouTube page), and the board received regu-      come back before the State Bar Council for
that once made practical sense (e.g., the        lar feedback from CLE providers, including       adoption. The adopted rules will then be sent
Annual Report Form requirement), and             the North Carolina Bar Association.              to the Supreme Court for its review and
administrative tasks that were easier to             The proposed rule changes were presented     approval. It is the board’s desire that these
accomplish when there were fewer licensed        to the North Carolina State Bar Council in       new rules will be effective beginning with the
lawyers (e.g., collecting fees based on credit   April and were subsequently approved for         2023 CLE year.

10                                                                                                                               SUMMER 2022
.(
Additional Information                               clusion, bias, or equal access to justice.” The       uing Legal Education Program
    • As part of the 36-hour requirement over        program is not mandatory. Lawyers can choose
three years, lawyers must complete at least:         to take social responsibility programs as part            .1501 Scope, Purpose, and Definitions
    o 6 ethics hours (professional responsibility,   of their 6-hour ethics requirement.                       (a) Scope.
    professionalism, or social responsibility);          • Exemptions will be claimed during the               Except as provided herein, these rules shall
    o 1 professional well-being and impairment       annual membership dues renewal process and            apply to every active member licensed by the
    (PWI) hour; and                                  will be effective for one year. Exempt lawyers        North Carolina State Bar.
    o 1 technology training hour.                    will not be assessed an annual attendance fee.            (b) Purpose.
    • The CLE Board intends to create stag-              • To encourage and recognize service to the           The purpose of these continuing legal
gered reporting periods so that roughly one-         profession, the CLE Board recommends that             education rules is to assist lawyers licensed to
third of lawyers are reporting each year. This       State Bar councilors be exempt from CLE re-           practice and practicing law in North Carolina
will require a one-time modification to the          quirements in the same manner as members              in achieving and maintaining professional
rules where one-third of lawyers have a one-         of the Board of Law Examiners.                        competence for the benefit of the public
year/12-hour requirement and one-third have              • There will be increased penalties for late      whom they serve. The North Carolina State
a two-year/24-hour requirement before starting       compliance, and a faster process for adminis-         Bar, under Chapter 84 of the General
the three-year reporting period.                     trative suspensions due to non-compliance.            Statutes of North Carolina, is charged with
    • Program application fees will be based         Notices to Show Cause and Orders of Sus-              the responsibility of providing rules of profes-
on the number of credit hours sought for ap-         pension will operate in tandem without the            sional conduct and with disciplining lawyers
proval and will be due upon submission of            need for additional council action.                   attorneys who do not comply with such rules.
the program application.                                 • The designation of “registered sponsor”         The Revised Rules of Professional Conduct
    • Courses offered for free will have a re-       is eliminated.                                        adopted by the North Carolina State Bar and
duced application fee and will be searchable             • Sponsors failing to timely submit atten-        approved by the Supreme Court of North
in the CLE Course Directory.                         dance reports will be charged a late reporting        Carolina require that lawyers adhere to
    • On-demand programs will be approved            fee and also prohibited from having new               important ethical standards, including that of
for three years and thereafter may be renewed        courses approved for credit until the report is       rendering competent legal services in the rep-
annually as long as the program continues to         filed.                                                resentation of their clients.
meet accreditation standards.                            • The CLE Board intends to maintain its               At a time when all aspects of life and soci-
    • Eliminating carry-over credit may frus-        historical funding in support of the Chief Jus-       ety are changing rapidly or becoming subject
trate lawyers who like to stay ahead on their        tice’s Commission on Professionalism (CJCP)           to pressures brought about by change, laws
requirements. The reasons for eliminating            and the Equal Access to Justice Commission            and legal principles are also in transition
carry-over credit include:                           (EAJC).                                               (through additions to the body of law, modi-
    o A three-year reporting period provides             • Specialists should note that these changes      fications, and amendments) and are increas-
    the flexibility and additional time that         do NOT impact the CLE requirements for                ing in complexity. One cannot render compe-
    carry-over credit now provides.                  obtaining and maintaining specialty certifica-        tent legal services without continuous educa-
    o If carry-over credit was permitted (36-        tion through the Board of Legal Specialization.       tion and training.
    hours, for example) then lawyers could the-      Existing specialists and lawyers intending to             The same changes and complexities, as
    oretically take 72 hours in year one of their    apply for specialty certification in their practice   well as the economic orientation of society,
    reporting period and not have to complete        area should consult the administrative rules          result in confusion about the ethical require-
    another CLE program for eight or nine            governing their specific specialty for a full list    ments concerning the practice of law and the
    years. This is not a good way to ensure          of CLE requirements associated with specialty         relationships it creates. The data accumulated
    continued competency in the profession.          certification (including annual, cumulative,          in the discipline program of the North
    o The elimination of carry-over credit im-       and content requirements).                            Carolina State Bar argue persuasively for the
    proves administrative efficiency, and the                                                              establishment of a formal program for con-
    board believes it is an acceptable tradeoff      Contact Us                                            tinuing and intensive training in professional
    for the additional flexibility provided to           Please contact Peter Bolac, assistant execu-      responsibility and legal ethics.
    lawyers in these changes.                        tive director of the North Carolina State Bar             It has also become clear that in order to
    • The additional credit for teaching CLE         and director of the Board of Continuing               render legal services in a professionally
courses (6 hours for every hour taught) remains      Legal Education, at Pbolac@ncbar.gov with             responsible manner, a lawyer must be able to
the same.                                            your questions and comments. Comments                 manage his or her law practice competently.
    • The substance abuse and mental health          may also be sent to ethicscomments@                   Sound management practices enable lawyers
program definition is modernized and is now          ncbar.gov.                                            to concentrate on their clients’ affairs while
called professional well-being and impairment                                                              avoiding the ethical problems which can be
(PWI).                                               Proposed Amendments to Rules of                       caused by disorganization.
    • A new type of ethics program called “so-       the Standing Committee of the North                       It is in response to such considerations
cial responsibility” is created and is defined as    Carolina State Bar                                    that the North Carolina State Bar has adopt-
“a program, directly related to the practice of        27 N.C.A.C. 1D, Section .1500, Rules                ed these minimum continuing legal educa-
law, devoted to education about diversity, in-       Governing the Administration of the Contin-           tion requirements. The purpose of these min-

12                                                                                                                                         SUMMER 2022
imum continuing legal education require-                      the education of their employees or             of clients, civility, improvement of the jus-
ments is the same as the purpose of the                       members;                                        tice system, diversity of the legal profession
Revised Rules of Professional Conduct them-                   (B) to be concerned with areas of legal         and clients, advancement of the rule of law,
selves—to ensure that the public at large is                  education not generally offered by spon-        service to the community, and service to
served by lawyers who are competent and                       sors of programs attended by lawyers en-        the disadvantaged and those unable to pay
maintain high ethical standards.                              gaged in the private practice of law.           for legal services.
    (c) Definitions.                                        (1011) A “newly admitted active member”           (16) “Registered sponsor” shall mean an
    (1) “Active member” shall include any per-              is one who becomes an active member of            organization that is registered by the board
    son who is licensed to practice law in the              the North Carolina State Bar for the first        after demonstrating compliance with the
    state of North Carolina and who is an                   time., has been reinstated, or has changed        accreditation standards for continuing legal
    active member of the North Carolina                     from inactive to active status.                   education programs as well as the require-
    State Bar.                                              (1112) “On demand” program shall mean             ments for reporting attendance and remit-
    (2) “Administrative Committee” shall                    an accredited educational program accessed        ting sponsor fees for continuing legal edu-
    mean the Administrative Committee of                    via the internet that is available at any time    cation programs.
    the North Carolina State Bar.                           on a provider’s website and does not include      (1716) “Rules” shall mean the provisions
    (3) “Approved program” shall mean a spe-                live programming.                                 of the continuing legal education rules
    cific, individual educational program                   (1213) “Online” program shall mean an             established by the Supreme Court of
    approved as a continuing legal education                accredited educational program accessed           North Carolina. (Section .1500 of this
    program under these rules by the Board of               through a computer or telecommunica-              subchapter).
    Continuing Legal Education.                             tions system such as the internet and can         (1817) “Sponsor” is any person or entity
    (4) “Board” means the Board of                          include simultaneously broadcast and on           presenting or offering to present one or
    Continuing Legal Education created by                   demand programming.                               more continuing legal education programs.,
    these rules.                                            (13) “Participatory CLE” shall mean pro-          whether or not an accredited sponsor.
    (5) “Continuing legal education” or                     grams or segments of programs that en-            (18) “Professional well-being and impair-
    “CLE” is any legal, judicial or other edu-              courage the participation of attendees in         ment” (PWI) is a program focused on the
    cational program accredited by the                      the educational experience through, for ex-       relationship between stressors inherent in
    bBoard. Generally, CLE will include edu-                ample, the analysis of hypothetical situa-        the profession, impairment, competence,
    cational programs designed principally to               tions, role playing, mock trials, roundtable      and professionalism. Topics may include
    maintain or advance the professional com-               discussions, or debates.                          the prevention, detection, treatment, and
    petence of lawyers and/or to expand an                  (14) “Professional responsibility” shall mean     etiology of a range of substance use and
    appreciation and understanding of the                   those programs or segments of programs            mental health conditions, as well as re-
    professional responsibilities of lawyers.               devoted to (ai) the substance, underlying         sources available for assistance and strategies
    (6) “Council” shall mean the North                      rationale, and practical application of the       for improving resilience and well-being.
    Carolina State Bar Council.                             Rules of Professional Conduct; (bii) the          Experiential exercises, practices, or demon-
    (7) “Credit hour” means an increment of                 professional obligations of the lawyer to         strations of tools for improving resilience
    time of 60 minutes which may be divided                 the client, the court, the public, and other      and well-being are permitted provided they
    into segments of 30 minutes or 15 min-                  lawyers; or (ciii) moral philosophy and eth-      do not exceed a combined total of 20 min-
    utes, but no smaller.                                   ical decision-making in the context of the        utes in any 60-minute presentation.
    (8) “Ethics” shall mean programs or seg-                practice of law.; and d) the effects of stress,   (19) “Technology training” shall mean a
    ments of programs devoted to (i) profes-                substance abuse and chemical dependency,          program, or a segment of a program, de-
    sional responsibility, (ii) professionalism,            or debilitating mental conditions on a            voted to education on information tech-
    or (iii) social responsibility as defined in            lawyer’s professional responsibilities and the    nology (IT) or cybersecurity (see N.C. Gen.
    Rules .1501(c)(14), (15), and (20) below.               prevention, detection, treatment, and eti-        Stat. § 143B-1320(a)(11), or successor
    (89) “Inactive member” shall mean a                     ology of stress, substance abuse, chemical        statutory provision, for a definition of “in-
    member of the North Carolina State Bar                  dependency, and debilitating mental con-          formation technology”), including educa-
    who is on inactive status.                              ditions. This definition shall be interpreted     tion on an information technology prod-
    (910) “In-house continuing legal educa-                 consistent with the provisions of Rule            uct, device, platform, application, or other
    tion” shall mean courses or programs                    .1501(c)(4) or (6) above.                         tool, process, or methodology. that is spe-
    offered or conducted by law firms, either               (15) “Professionalism” programs are pro-          cific or uniquely suited to the practice of
    individually or in connection with other                grams or segments of programs devoted to          law. A technology training program must
    law firms, corporate legal departments, or              the identification and examination of, and        have the primary objective of enhancing a
    similar entities primarily for the education            the encouragement of adherence to, non-           lawyer’s proficiency as a lawyer. To be eli-
    of their members. The board may exempt                  mandatory aspirational standards of pro-          gible for CLE accreditation as a technology
    from this definition those programs which               fessional conduct which transcend the re-         training program, the program must satisfy
    it finds                                                quirements of the Rules of Professional           the accreditation standards in Rule .1519
      (A) to be conducted by public or quasi-               Conduct. Such programs address principles         and the course content requirements in
      public organizations or associations for              of competence and dedication to the service       Rule .1602(e) of this subchapter.

T H E N O RT H C A RO L I N A S TAT E B A R J O U R N A L                                                                                                13
(20) “Year” shall mean calendar year.          lowing the date on which the appointment is        (1) Annual CLE Attendance Fee – All
    (20) “Social responsibility” programs shall    made by the cCouncil. See, however, Rule           members, except those who are exempt
mean programs, directly related to the practice    .1508 of this Section.                             from these requirements under Rule .1517,
of law, devoted to education about diversity,                                                         shall pay an annual CLE fee in an amount
inclusion, bias, or equal access to justice.           .1508 Staggered Terms                          set by the Board and approved by the
                                                       It is intended that mMembers of the            Council. Such fee shall accompany the
    .1502 Jurisdiction: Authority                  bBoard shall be elected to staggered terms such    member’s annual membership fee. Annual
    The Council of the North Carolina State        that three members are appointed in each year.     CLE fees are non-refundable. Registered
Bar hereby establishes the Board of Continuing     Of the initial board, three members shall be       sponsors located in North Carolina (for
Legal Education (bBoard) as a standing com-        elected to terms of one year, three members        programs offered in or outside North Car-
mittee of the cCouncil, which bBoard shall         shall be elected to terms of two years, and        olina), registered sponsors not located in
have authority to establish regulations govern-    three members shall be elected to terms of         North Carolina (for programs offered in
ing a continuing legal education program and       three years. Thereafter, three members shall       North Carolina), and all other sponsors lo-
a law practice assistance program for attorneys    be elected each year.                              cated in or outside of North Carolina (for
lawyers licensed to practice law in this state.                                                       programs offered in North Carolina) shall,
                                                       .1509 Succession                               as a condition of conducting an approved
   .1503 Operational Responsibility                    Each member of the bBoard shall be enti-       program, agree to remit a list of North Car-
   The responsibility for operating the con-       tled to serve for one full three-year term and     olina attendees and to pay a fee for each
tinuing legal education program and the law        to succeed himself or herself for one additional   active member of the North Carolina State
practice assistance program shall rest with the    three-year term. Thereafter, no person may be      Bar who attends the program for CLE
bBoard, subject to the statutes governing the      reappointed without having been off the            credit. The sponsor’s fee shall be based on
practice of law, the authority of the cCouncil,    bBoard for at least three years.                   each credit hour of attendance, with a pro-
and the rules of governance of the bBoard.                                                            portional fee for portions of a program last-
                                                      .1510 Appointment of Chairperson                ing less than an hour. The fee shall be set
    .1504 Size of Board                               The chairperson of the bBoard shall be          by the board upon approval of the council.
    The bBoard shall have nine members, all        appointed from time to time as necessary by        Any sponsor, including a registered sponsor,
of whom must be attorneys lawyers in good          the cCouncil. The term of such individual as       that conducts an approved program which
standing and authorized to practice in the state   chairperson shall be one year. The chairper-       is offered without charge to attendees shall
of North Carolina.                                 son may be reappointed thereafter during his       not be required to remit the fee under this
                                                   or her tenure on the bBoard. The chairperson       section. Attendees who wish to receive
    .1505 Lay Participation                        shall preside at all meetings of the bBoard,       credit for attending such an approved pro-
    The bBoard shall have no members who           shall prepare and present to the cCouncil the      gram shall comply with paragraph (a)(2)
are not licensed attorneys lawyers.                annual report of the bBoard, and generally         of this rule.
                                                   shall represent the bBoard in its dealings with    (2) Program Application Fee – The sponsor
    .1506 Appointment of Members; When;            the public.                                        of a CLE program shall pay a program ap-
Removal                                                                                               plication fee due when filing an application
    The members of the bBoard shall be ap-             .1511 Appointment of Vice-Chairperson          for program accreditation pursuant to Rule
pointed by the cCouncil. The first members             The vice-chairperson of the bBoard shall       .1520(b). Program application fees are non-
of the board shall be appointed as of the quar-    be appointed from time to time as necessary        refundable. A member submitting an ap-
terly meeting of the council following the cre-    by the cCouncil. The term of such individual       plication for a previously unaccredited pro-
ation of the board. Thereafter, members shall      as vice-chairperson shall be one year. The         gram for individual credit shall pay a
be appointed annually as of the same quarterly     vice-chairperson may be reappointed there-         reduced fee. The board shall fix a reasonably
meeting. Vacancies occurring by reason of          after during tenure on the bBoard. The vice-       comparable fee to be paid by individual
death, resignation, or removal shall be filled     chairperson shall preside at and represent the     attorneys who attend for CLE credit ap-
by appointment of the cCouncil at the next         bBoard in the absence of the chairperson and       proved continuing legal education pro-
quarterly meeting following the event giving       shall perform such other duties as may be          grams for which the sponsor does not sub-
rise to the vacancy, and the person so appointed   assigned to him or her by the chairperson or       mit a fee under Rule .1512(a)(1) above.
shall serve for the balance of the vacated term.   by the bBoard.                                     Such fee shall accompany the member’s
Any member of the bBoard may be removed                                                               annual affidavit. The fee shall be set by the
at any time by an affirmative vote of a majority       .1512 Source of Funds                          board upon approval of the council.
of the members of the cCouncil in session at a         (a) Funding for the program carried out        (3) Fee Review – The Board will review
regularly called meeting.                          by the bBoard shall come from sponsor’s fees       the level of fees at least annually and adjust
                                                   and attendee’s fees an annual CLE atten-           the fees as necessary to maintain adequate
   .1507 Term of Office                            dance fee and program application fees as          finances for prudent operation of the Board
   Each member who is appointed to the             provided below, as well as from duly assessed      in a nonprofit manner. The Council shall
bBoard shall serve for a term of three years be-   penalties for noncompliance and from rein-         annually review the assessments for the
ginning as of the first day of the month fol-      statement fees.                                    Chief Justice’s Commission on Profession-

14                                                                                                                                  SUMMER 2022
alism and the North Carolina Equal Access                official duties.                                       over the administration of these rules;
   to Justice Commission and adjust them as                     (c) Disbursement. - Disbursement of funds          (2) to adopt and amend regulations con-
   necessary to maintain adequate finances                  of the bBoard shall be made by or under the            sistent with these rules with the approval
   for the operation of the commissions.                    direction of the sSecretary treasurer of the           of the cCouncil;
   (4) Uniform Application and Financial Re-                North Carolina State Bar pursuant to authority         (3) to establish an office or offices and to
   sponsibility – Fees shall be applied uni-                of the cCouncil. The members of the bBoard             employ such persons as the bBoard deems
   formly without exceptions or other prefer-               shall serve on a voluntary basis without com-          necessary for the proper administration of
   ential treatment for a sponsor or member.                pensation, but may be reimbursed for the rea-          these rules, and to delegate to them appro-
   (b) Funding for a law practice assistance                sonable expenses incurred in attending meet-           priate authority, subject to the review of
program shall be from user fees set by the                  ings of the bBoard or its committees.                  the cCouncil;
board upon approval of the council and from                     (d) All revenues resulting from the CLE            (4) to report annually on the activities and
such other funds as the council may provide.                program, including fees received from atten-           operations of the bBoard to the cCouncil
   (c) No Refunds for Exemptions and Record                 dees and sponsors, late filing penalties, late         and make any recommendations for
Adjustments.                                                compliance fees, reinstatement fees, and               changes in the fee amounts, rules, or meth-
   (1) Exemption Claimed. If a credit hour                  interest on a reserve fund shall be applied first      ods of operation of the continuing legal
   of attendance is reported to the board, the              to the expense of administration of the CLE            education program; and
   fee for that credit hour is earned by the                program including an adequate reserve fund;            (5) to submit an annual budget to the
   board regardless of an exemption subse-                  provided, however, that a portion of each              cCouncil for approval and to ensure that
   quently claimed by the member pursuant                   sponsor or attendee fee, annual CLE fee and            expenses of the bBoard do not exceed the
   to Rule .1517 of this subchapter. No paid                program application fee, in an amount to be            annual budget approved by the cCouncil.;
   fees will be refunded and the member shall               determined by the cCouncil, shall be paid to           (6) to administer a law office assistance
   pay the fee for any credit hour reported on              the Chief Justice’s Commission on                      program for the benefit of lawyers who re-
   the annual report form for which no fee                  Professionalism and to the North Carolina              quest or are required to obtain training in
   has been paid at the time of submission of               Equal Access to Justice Commission for                 the area of law office management.
   the member’s annual report form.                         administration of the activities of these com-         (b) The bBoard shall be organized as fol-
   (2) Adjustment of Reported Credit Hours.                 missions. Excess funds may be expended by           lows:
   When a sponsor is required to pay the                    the cCouncil on lawyer competency pro-                 (1) Quorum. Five members A majority of
   sponsor’s fee, there will be no refund to the            grams approved by the cCouncil.                        members serving shall constitute a quorum
   sponsor or to the member upon the mem-                                                                          of the bBoard.
   ber’s subsequent adjustment, pursuant to                    .1514 Meetings                                      (2) The Executive Committee. - The Board
   Rule .1522(a) of this subchapter, to credit                 The Board shall meet at least annually.an-          may establish an executive committee. The
   hours reported on the annual report form.                nual meeting of the board shall be held in Oc-         executive committee of the bBoard shall
   When the member is required to pay the                   tober of each year in connection with the an-          be comprised of the chairperson, a the vice-
   attendee’s fee, the member shall pay the                 nual meeting of the North Carolina State Bar.          chairperson, elected by the members of the
   fee for any credit hour reported after any               The bBoard by resolution may set regular               board, and a member to be appointed by
   adjustment by the member to credit hours                 meeting dates and places. Special meetings of          the chairperson. Its purpose is to conduct
   reported on the annual report form.                      the bBoard may be called at any time upon              all necessary business of the bBoard that
                                                            notice given by the chairperson, the vice-chair-       may arise between meetings of the full
    .1513 Fiscal Responsibility                             person, or any two members of the bBoard.              bBoard. In such matters it shall have com-
    All funds of the bBoard shall be considered             Notice of meeting shall be given at least two          plete authority to act for the bBoard.
funds of the North Carolina State Bar and                   days prior to the meeting by mail, electronic          (3) Other Committees. - The chairperson
shall be administered and disbursed accord-                 mail, telegram, facsimile transmission or tele-        may appoint committees as established by
ingly.                                                      phone. A quorum of the bBoard for conduct-             the bBoard for the purpose of considering
    (a) Maintenance of Accounts: Audit. - The               ing its official business shall be a majority of       and deciding matters submitted to them
North Carolina State Bar shall maintain a sep-              the members serving at a particular time.              by the bBoard.
arate account for funds of the bBoard such                                                                         (c) Appeals. - Except as otherwise provided,
that such funds and expenditures therefrom                      .1515 Annual Report                             the bBoard is the final authority on all matters
can be readily identified. The accounts of the                  The bBoard shall prepare at least annually      entrusted to it under Section .1500 and Sec-
bBoard shall be audited on an annual basis in               a report of its activities and shall present the    tion .1600 of this subchapter. Therefore, any
connection with the audits of the North Car-                same to the cCouncil one month prior to its         decision by a committee of the bBoard pur-
olina State Bar.                                            annual meeting.                                     suant to a delegation of authority may be ap-
    (b) Investment Criteria. - The funds of the                                                                 pealed to the full bBoard and will be heard by
bBoard shall be handled, invested and rein-                     .1516 Powers, Duties, and Organization          the bBoard at its next scheduled meeting. A
vested in accordance with investment policies               of the Board                                        decision made by the staff pursuant to a dele-
adopted by the cCouncil for the handling of                     (a) The bBoard shall have the following         gation of authority may also be reviewed by
dues, rents, and other revenues received by the             powers and duties:                                  the full bBoard but should first be appealed to
North Carolina State Bar in carrying out its                    (1) to exercise general supervisory authority   any committee of the bBoard having jurisdic-

T H E N O RT H C A RO L I N A S TAT E B A R J O U R N A L                                                                                                   15
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