In Re Unified Bar of Montana

IN THE SUPREME COURT OF THE STATE OF MONTANA No. 12616 ------------- Re: THE UNIFIED BAR OF MONTANA ....................... JAN251975 O R D E R ....................... PER CURIAM: The following order implements Unification of the Bar of Montana; adopts a constitution and by-laws; and, provides an implementation schedule. Previously this Court rendered an order and opinion dated December 17, 1973, ordering unification of the Bar of the state of Montana. Subsequently, on February 1, 1974, the Court ap- pointed an organizational committee to draft a proposed constitu- tion, by-laws, and an implementation schedule for the unified Bar. Such committee made its report and this Court entered a further order on July 11, 1974, characterizing the committee re- port as generally agreeable, but calling for further consideration and recommendations in specific areas with a resulting change in the implementation schedule. As a result of the further study ordered, the committee filed a supplemental report on September 3, 1974. The Court hereby ap- proves the supplemental report but of necessity, caused by this court's volume of work, an amended implementation schedule is herein set forth. Additionally, a second supplemental report by the Court's committee was filed on December 16, 1974, making further recommendations for amendments to the proposed by-laws to provide (1) for a client indemnity bond in Article XI, and (2) in Article I, Section 4 authorization to impose an assessment upon the members to provide funds necessary to pay the premium for the indemnity bond. Such recommendations are adopted and incorporated hereinafter. The following Constitution of the State Bar of Montana is adopted : CONSTITUTION OF THE STATE BAR OF MONTANA ARTICLE I NAME The name of the association is the State Bar of Montana. ARTICLE I1 ORGANIZATION All persons admitted to the practice of law in the state of Montana are members of the State Bar of Montana. All such persons except judges of courts of record and those allowed inactive status by the by-laws, are active dues paying members. Member- ship in the State Bar of Montana is a condition to practicing law in this state. Non-payment of membership dues and assessments shall result in suspension of membership and the right to practice law until payment of all dues, assessments and penalties in the manner provided in the by-laws. ARTICLE I T 1 PURPOSES The purposes of the State Bar of Montana are to aid the courts in maintaining and improving the administration of justice; to foster and maintain and require on the part of those engaged in the practice of law high standards of integrity,l&aming, competence, public service, and conduct; to safeguard proper professional interests of members of the bar; to encourage the formation, main- tenance, and activities of local bar associations; to provide a forum for the discussion of and effective action concerning sub- jects pertaining to the practice of law, the science of juris- prudence and law reform, and relations of the bar to the public; to providk for the continuing legal education of members of the bar; and to insure that the responsibilities of the legal profession to the public are more effectively discharged. ARTICLE IV POWERS The State Bar of Montana may sue and be sued, enter into contracts and acquire, hold, encumber and dispose of real and personal property. ARTICLE V LOCATION OF OFFICES The principal office and place of business of the association shall be in Helena, Montana, but the Board of Trustees may authorize offices to be located at other places within the state of Montana. ARTICLE VI OFFICERS Officers of the State Bar of Montana shall include a president, president-elect, a secretary-treasurer and a chairman of the Board. The duties, powers, qualifications, nomination and election of officers shall be provided for in the by-laws. ARTICLE VII BOARD OF TRUSTEES The State Bar of Montana shall be governed by a Board of twenty trustees, sixteen of whom shall be elected and four of whom shall be the President, the President-Elect, the immediate past President and the Secretary-Treasurer. The duties and powers of the Board and the qualifications, nomination and election of the sixteen elective members shall be provided for in the by-laws. ARTICLE VIII EXECUTIVE COMMITTEE The Board of Trustees shall provide for an Executive Committee con- sisting of the President, President-Elect, the immediate past President, the Secretary-Treasurer, the Chairman of the Board of Trustees and four additional members of the Board of Trustees who shall be elected by the Board. The powers and duties of the Execu- tive Committee shall be provided for in the by-laws. ARTICLE IX ANNUAL MEETING There shall be an annual meeting of the members of the State Bar of Montana at such time and place as is designated by the Board of Trustees, and such other meetings as may be provided in the by-laws. ARTICLE X DISSOLUTION Upon the dissolution of the association, the Board of Trustees shall after paying or making provision for the payment of all its liabilities, dispose of all of the assets of the association exclusively for the purposes of the association in such manner, or to such organization or organizations organized and operated exclusively for charitable, educational, religious, or scientific purposes as shall at the time qualify as exempt organization or organizations under the Internal Revenue Code of 1954 as the Board of Trustees shall determine. Any of such assets not so disposed of shall be disposed of by the district court of the county in which the principal office of the association is then located, exclusively for such purposes or to such organization or organizations, as said court shall determine, which are organized and operated exclusively for such purposes. In the event of dissolution of the association, no member shall be entitled to any distribution or division of its remaining property or its proceeds. ARTICLE XI AMENDMEW Proposals for amendment or abrogation of provisions of this Constitution may be presented to the Supreme Court by (i) petition of the Board of Trustees; or (ii) petition of a regularly called meeting of the members of the association in respect to changes ap- proved by a vote of a majority of members present. ARTICLE XI1 EFFECTIVE DATE This Constitution shall be effective on March 1, 1975. The following by-laws of t h e S t a t e Bar of Montana a r e adopted: BY-LAWS O THE STATE BAR O MONTANA F F ARTICLE I MEMBERSHIP S e c t i o n 1. Persons i n c l u d e d i n membership. The membership of t h e S t a t e Bar i n i t i a l l y s h a l l c o n s i s t of a l l t h o s e persons who on t h e e f f e c t i v e d a t e of t h e C o n s t i t u t i o n o f t h e S t a t e Bar a r e l i c e n s e d t o p r a c t i c e law i n t h i s s t a t e , and a f t e r such e f f e c t i v e d a t e s h a l l a l s o i n c l u d e t h o s e persons who become l i c e n s e d t o p r a c t i c e law i n t h i s s t a t e ; s u b j e c t i n each c a s e t o due compliance w i t h t h e condi- t i o n s and requirements of membership. Residence i n t h e s t a t e of Montana s h a l l n o t be a c o n d i t i o n of e l i g i b i l i t y t o membership i n t h e S t a t e Bar. S e c t i o n 2. Enrollment. Every person who becomes l i c e n s e d t o p r a c t i c e law i n t h i s s t a t e s h a l l e n r o l l i n t h e S t a t e Bar by s i g n i n g and f i l i n g i n t h e S t a t e Bar o f f i c e w i t h i n t e n days a f t e r admission t o practice, a r e g i s t r a t i o n card containing t h e r e g i s t r a n t ' s : F u l l name. Residence a d d r e s s . O f f i c e a d d r e s s . Location of p r i n c i p a l o f f i c e . Date of admission t o p r a c t i c e i n Montana. Date of admission t o p r a c t i c e i n any s t a t e o r s t a t e s o t h e r than Montana . Date and p l a c e of b i r t h ; and i n t h e c a s e of a n a t u r a l i z e d person t h e d a t e and p l a c e of n a t u r a l i z a t i o n . Name of l a w school and y e a r of g r a d u a t i o n . S o c i a l s e c u r i t y number. Every change a f t e r enroUmnt i n r e s p e c t of any of t h e m a t t e r s above s p e c i f i e d s h a l l be promptly r e p o r t e d t o t h e S t a t e Bar o f f i c e s . Communications from t h e a s s o c i a t i o n t o any member s h a l l be s e n t t o t h e l a t e s t a d d r e s s f u r n i s h e d by such member, Section 3. C l a s s e s of membership, (a) The members of t h e S t a t e Bar s h a l l be d i v i d e d i n t o t h r e e c l a s s e s known r e s p e c t i v e l y a s "active" members, "judicial!' members and " i n a c t i v e " members. The c l a s s of a c t i v e members s h a l l i n c l u d e a l l members of t h e S t a t e Bar except t h e j u d i c i a l members and i n a c t i v e members. Judges of c o u r t s of r e c o r d , and retirsd~ijudges who a r e e l i g i b l e f o r temporary j u d i c i a l assignment and a r e n o t engaged i n t h e p r a c t i c e of law s h a l l b e c l a s s e d a s j u d i c i a l members. The c l a s s of i n a c t i v e members s h a l l i n c l u d e t h o s e persons who a r e e l i g i b l e f o r a c t i v e membership b u t a r e n o t engaged i n t h e p r a c t i c e of law and have f i l e d w i t h t h e s e c r e t a r y o f t h e a s s o c i a t i o n w r i t t e n n o t i c e r e q u e s t i n g enrollment i n t h e c l a s s of i n a c t i v e members. (b) Only a c t i v e members may p r a c t i c e law. N individual other o than an e n r o l l e d a c t i v e member of t h e S t a t e Bar s h a l l p r a c t i c e i n t h i s s t a t e o r i n any manner hold himself o u t a s a u t h o r i z e d o r q u a l i f i e d t o p r a c t i c e law. (c) Only a c t i v e members may hold o f f i c e o r v o t e i n any e l e c t i o n conducted by t h e S t a t e Bar. (d) Any i n a c t i v e member i n good s t a n d i n g and any j u d i c i a l member who i s no l o n g e r s e r v i n g i n a j u d i c i a l o f f i c e may change h i s c l a s s i f i c a t i o n t o t h a t of an a c t i v e member by f i l i n g w i t h t h e S t a t e Bar o f f i c e a w r i t t e n r e q u e s t f o r t r a n s f e r t o t h e c l a s s of a c t i v e members and by paying t h e dues r e q u i r e d of a c t i v e members. No i n a c t i v e member who h a s n o t a c t i v e l y p r a c t i c e d law i n t h i s s t a t e o r i n a n o t h e r s t a t e d u r i n g t h e l a s t t e n y e a r s s h a l l be t r a n s f e r r e d t o a c t i v e membership u n t i l t h e t r a n s f e r s h a l l be approved by t h e Supreme Court except a j u d i c i a l member who i s no longer s e r v i n g i n a j u d i c i a l o f f i c e s h a l l be c l a s s i f i e d a s an a c t i v e member upon h i s written request. (e) N j u d i c i a l o r i n a c t i v e member s h a l l p r a c t i c e law i n t h i s o s t a t e o r s h a l l hold o f f i c e o r v o t e i n any e l e c t i o n conducted by t h e S t a t e Bar. N person engaged i n t h e p r a c t i c e of law i n t h i s o s t a t e i n h i s own b e h a l f o r a s an a s s i s t a n t o r employee of an a c t i v e member of t h e S t a t e Bar, o r occupying a p o s i t i o n t h e d u t i e s of which r e q u i r e t h e g i v i n g of l e g a l a d v i c e o r s e r v i c e i n t h i s s t a t e , s h a l l b e e n r o l l e d a s a n i n a c t i v e member. Section 4 . Membership dues. (a) Annual dues f o r each a c t i v e member who has been admitted t o p r a c t i c e i n t h i s s t a t e t h r e e y e a r s o r more p r i o r t o t h e commencement of t h e f i s c a l y e a r f o r which dues a r e payable, s h a l l be $40.00. F o r a l l o t h e r a c t i v e members, t h e annual dues s h a l l be $25.00 except t h a t t h e dues f o r t h o s e admitted t o p r a c t i c e i n t h i s s t a t e f o r l e s s than one y e a r s h a l l b e $5.00. A l l a c t i v e members s h a l l pay, i n a d d i t i o n t o membership dues and a t t h e same time, an assessment of $10.00 f o r t h e c l i e n t s e c u r i t y fund, and a n a d d i t i o n a l p e r c a p i t a assessment f o r premiums f o r a c l i e n t s e c u r i t y indemnity bond i n such amount a s s h a l l b e agreed upon between t h e Board of T r u s t e e s and a bonding company. A l l dues and assessments p a i d f o r t h e c l i e n t s e c u r i t y fund s h a l l be paid t o t h e S t a t e Bar. The dues s h a l l c o n s t i t u t e a fund f o r t h e payment of t h e expenses of t h e association. The payment made f o r t h e c l i e n t s e c u r i t y fund and indemnity bond s h a l l be used f o r t h a t purpose only. Dues a r e i n a d d i t i o n t o t h e annual l i c e n s e f e e paid t o t h e Clerk of t h e Supreme Court. (b) The d a t e f o r t h e payment of dues and assessments s h a l l be July 1 of each year. The S t a t e Bar o f f i c e s h a l l mail s t a t e m e n t s of dues and assessments n o t l e s s than t h i r t y days p r i o r t o t h e due d a t e t o a l l members. A second n o t i c e s h a l l b e s e n t by c e r t i f i e d mail r e t u r n r e c e i p t r e q u e s t e d t o any member whose dues o r assessments remain unpaid f o r s i x t y days a f t e r t h e due d a t e . The second n o t i c e s h a l l s p e c i f y t h a t s a i d member w i l l be suspended u n l e s s h i s dues and assessments a r e p a i d w i t h i n t h i r t y days from t h e d a t e of mailing of such n o t i c e . The membership of any member who-does n o t pay h i s dues and assessments w i t h i n t h i r t y days from t h e d a t e of mailing of t h e second n o t i c e s h a l l be suspended. N person whose membership o i s s o suspended f o r non-payment of dues and assessments s h a l l p r a c t i c e law d u r i n g t h e p e r i o d of such suspension. (c) Dues f i r s t y e a r of admission. When a person is f i r s t admitted t o p r a c t i c e law i n Montana he s h a l l pay membership dues and assessments f o r t h e f u l l f i s c a l y e a r i n which such admission occurs. (d) P e n a l t y f o r non-payment of dues and assessments. (i) The names of a l l members suspended from membership f o r non-payment o f dues o r assessments s h a l l be c e r t i f i e d by t h e Executive D i r e c t o r t o t h e Clerk of t h e Montana Supreme Court, t o each judge of a c o u r t of r e c o r d i n t h i s s t a t e , t o t h e Clerks of t h e Federal D i s t r i c t Courts f o r t h e s t a t e of Montana, t o t h e Clerk of t h e 9 t h C i r c u i t Court of Appeals and t o t h e C l e r k of t h e United S t a t e s Supreme Court after twenty (20) days written notice of intent to certify is sent to each suspended member by certified mail, return receipt requested. (ii) Whenever a member so suspended for non-payment of membership dues or assessments makes full payment of the amount owing, and in addition thereto the sum of $20.00 for each delinquent payment of annual dues or assessments in arrears, he shall be rein- stated as a member and the fact of such reinstatement shall be certified by the Executive Director to all parties to whom notice of suspension was sent. However, in the case of any person whose membership dues or assessments are in arrears for a period of three or more consecutive years, no application for reinstatement shall be granted unless ordered by the Montana Supreme Court. In case of hardship the Board of Trustees may order waiver of dues, assessments, or penalties. (e) Voluntary resignation of membership. Whenever a member files with the State Bar office a written notice of such member's surrender of his license to practice law and the acceptance by the Supreme Court of his resignation in the State Bar, such person shall thereupon cease to be a member of the State Bar, and his name shall be removed from the membership register. ARTICLE I1 OFFICERS Section 1 Titles, terms, qualifications. . (a) The officers of the State Bar shall be a President, a President-Elect, a Chairman of the Board of the Board of Trustees, and a Secretary-Treasurer. Only active members of the State Bar residing and practicing law in Montana shall be eligible to serve as and vote for officers of the association. The term of office of the President, President-Elect and Chairman of the Board of Trustees shall be one year. The term of the Secretary-Treasurer shall be two years. The term of each officer shall run until the qualification of his successor. (b) The President-Elect shall at the expiration of his term as President-Elect succeed to the Presidency of the State Bar. (c) Any active member who is a resident of Montana and practices law in this state may be nominated as a candidate for President-Elect or Secretary-Treasurer by a petition signed by not less than twenty-five members. Nominating petitions shall be filed with or mailed to the State Bar of Montana at least sixty days before the election date specified by the Board of Trustees. In the event that no member shall be nominated as President-Elect or Secretary-Treasurer, the Board of Trustees shall nominate one or more qualified candidates for such offices. Election of the President-Elect and Secretary-Treasurer shall be by secret ballot of all active members and the candidate receiving the greatest 4 number of votes cast shall be elected. The mailing, return and canvass of the ballots shall be conducted in the same manner as provided for the election of Trustees. (d) A Chairman of the Board of Trustees shall be elected by the Board from its elected members at the time of the annual meeting of the Association. He shall assume office at the conclu- sion of the annual meeting. Section 2. Duties of officers, (a) President. The president shall be the chief executive officer of the association. He shall be a member-at-large of the Board of Trustees and a member of the executive committee. He shall preside at all meetings of the association and of the executive committee. He shall make the appointments to, and designate the chairmen of all standing committees; create and appoint special committees; and be a member, ex-officio, of every committee. (b) President-Elect. The President-Elect shall be a member-at- large of the Board of Trustees and the executive committee; and he shall perform all other duties assigged to him by the President or Board of Trustees. (c) Chairman Board of Trustees. The Chairman of the Board shall be a member of the executive committee. He shall preside at all meetings of the Board of Trustees. He shall perform the duties of the President in the absence or disability of the President, and in the event of a vacancy in the office of President, he shall assume that office for the unexpired term. (d) Secretary-Treasurer. The Secretary-Treasurer shall be a member-at-large of the Board of Trustees and a member of the execu- tive committee. He shall confer with the Executive Director and the administrative staff of the State Bar as to (i) The keeping of proper minutes and records. (ii) The maintenance of correct embers ship files and mailing lists. (iii) The general operation of the headquarters office. (iv) The methods and procedures used in the receipt, collection and safe-keeping of all funds of the State Bar. (v) The procedures for disbursement and audit of such funds. The Secretary-Treasurer shall assist the executive committee in preparing the annual budget and in presenting it to the Board of Trustees and make recommendations to the Board of Trustees as to the association's affairs, as required. Section 3. Compensation. The officers of the association shall receive no compensation for their services, but shall receive reim- bursement of their expenses as may be authorized and directed by the Board of Trustees. Section 4 Commencement of term of office. The terms of all out-going . officers of the association shall end and the terms of their succes- sors shall commence at the conclusion of the annual meeting. ARTICLE I11 BOARD OF TRUSTEES Section 1. Composition of Board. The affairs of the association shall be managed and directed by the Board of Trustees consisting of the three officers of the association and the immediate past- president of the association, all of whom shall be members-at-large of the Board, and sixteen members from the areas hereinafter designa- ted. The rights and powers of the members-at-large of the Board shall be the same as those of elected members. The Dean of the School of Law of the University of Montana, the Montana State Bar Delegate and the state delegate to the House of Delegates of the American Bar Association, President of the Montana Trial Lawyers Association or his designee, President of the Montana County Attorneys Association or his designee, and a Montana licensed lawyer designated by the Young Lawyers Section shall be entitled to floor privileges, but without a vote. Section 2. State Bar areas. For the purposes of conducting elections of the members of the Board of Trustees, the state is divided into the following areas, ,, .with members of the Board to be elected from each area by the active members of the bar in such area: - Area Total Trustees By Judicial District A Fourth, Eleventh Second 1 Third & Fifth 1 Eighth & Ninth 2 Twelfth, Fifteenth, & Seventeenth 1 First 2 Sixth & Eighteenth 1 Tenth & Fourteenth 1 G 3 Thirteenth 3 H 1 Seventh & Sixteenth 1 Section 3. Term-Qualifications-Nomination-Election. (a) The term of office of each elected member of the Board of Trustees shall be two years, except that trustees from Areas A, B y C and D chosen in the first election under these by-laws shall serve for only one year. The term of office shall commence at the conclu- sion of the annual meeting of the association next following his election. No person shall be eligible to vote in an area for trustee or to serve on the Board of Trustees from an area unless he is an active member of the association and practices law and resides in such area. The eligibility of any person to serve as a member of the Board of Trustees from any State Bar area shall be contingent upon his maintaining his practice of law and residence in such area. (b) Nomination of each c a n d i d a t e t o be e l e c t e d t o t h e Board of T r u s t e e s s h a l l be by p e t i t i o n signed by t e n a c t i v e members residing i n the candidate's area. Nominating p e t i t i o n s s h a l l be f i l e d w i t h o r mailed t o t h e S t a t e Bar o f f i c e a t l e a s t s i x t y days b e f o r e t h e e l e c t i o n d a t e s p e c i f i e d by t h e Board o f T r u s t e e s . In t h e event t h e r e i s no p e t i t i o n t o f i l l t h e o f f i c e of T r u s t e e i n any a r e a , t h e Board of T r u s t e e s s h a l l nominate a q u a l i f i e d candi- d a t e o r c a n d i d a t e s f o r such o f f i c e o r o f f i c e s . The Executive D i r e c t o r s h a l l mail w r i t t e n b a l l o t s c o n t a i n i n g t h e nominations f o r t h e o f f i c e of T r u s t e e f o r each a r e a t o every member r e s i d i n g i n such a r e a n o t l e s s than t h i r t y days b e f o r e such e l e c t i o n d a t e . Such b a l l o t s , i n s e a l e d envelopes, signed by t h e member, s h a l l be mailed t o t h e Executive D i r e c t o r n o t l e s s than t e n days b e f o r e t h e s p e c i f i e d election date. A committee of n o t l e s s than t h r e e members appointed by t h e P r e s i d e n t s h a l l canvass t h e v o t e s and r e c o r d t h e v o t e s t h e r e o f . The c a n d i d a t e s r e c e i v i n g t h e g r e a t e s t number of v o t e s c a s t i n each area s h a l l be declared elected, Section 4 . Powers and Functions, (a) The Board of T r u s t e e s s h a l l have g e n e r a l charge of t h e a f f a i r s and a c t i v i t i e s of t h e a s s o c i a t i o n . It shall: (i) F i x t h e time and p l a c e of t h e annual meeting of members of t h e a s s o c i a t i o n . (ii) F i x t h e d a t e of e l e c t i o n of o f f i c e r s and t r u s t e e s . (iii) Make a p p r o p r i a t i o n s and a u t h o r i z e disbursements from t h e funds of t h e S t a t e Bar i n payment of t h e n e c e s s a r y expenses of t h e a s s o c i a t i o n , i t s o f f i c e r s and committees. (iv) Cause proper books of accounts t o b e k e p t and t o procure an annual a u d i t t h e r e o f by a c e r t i f i e d p u b l i c accountant (a copy of t h e annual a u d i t s h a l l be f i l e d w i t h t h e Supreme Court). (v) Engage and d e f i n e t h e d u t i e s of employees and f i x t h e i r compensation. (vi) Arrange f o r p u b l i c a t i o n o f an o f f i c i a l S t a t e Bar b u l l e t i n o r journal. (vii) Receive, consider and take action on reports and recommendations submitted by committees, sections and the assembly of members of the association at any annual or special meeting. (viii) Fill vacancies however arising, in the membership of the Board of Trustees, or in any office except the office of President, and in each case the person appointed to fill such a vacancy shall hold for the unexpired term. (ix) Adopt regulations, not inconsistent with the associa- tion's Constitution and these By-Laws, for the orderly administration of the association's affairs and activities. Section 5. Meetings of Board of Trustees, (a) There shall be a regular meeting of the Board of Trustees in each year at the time of the annual meeting of members of the State Bar and during the months of April, September and December in each year. The meetings in the months of April, September and December shall be on dates set by the Executive Committee. (b) Special meetings of the Board may be held at any time upon call of the President, and shall be called by him upon written re- quests signed by five members of the Board. Notice of the time and place of regular and special meetings of the Board shall be given to each member by the Executive Director by mail or telephone at least five days before the meeting. At any regular or special meeting of the Board any business may be transacted which is within the power of the Board, whether or not specified in the call or notice of the meeting. Action of the Board may be taken without a meeting by mail or telephone vote. (c) A majority of the Trustees shall constitute a quorum. Any Trustee who fails to attend two successive meetinlfsaf the Board of Trustees without good cause shall forfeit his office and the vacancy filled by the remaining members of the Board. Good cause shall be determined by the Board. (d) A summary of the minutes of each meeting or of any mail or telephone action of the Board of Trustees shall be printed in the State Bar Bulletin with a notation that any interested person may obtain a copy of the minutes on request to the Executive Director. Section 6. Compensation. The members of the Board of Trustees shall receive no compensation for services to the association, but they and also the members of committees and the officers and directors of sections may, upon authorization of the Board of Trustees, be , reimbursed for necessary expenses incurred in the performance of their duties. ARTICLE IV EXECUTIVE COMMITTEE Section 1 Members; selection. There shall be an Executive Commit- . tee consisting of the President, President-Elect, the immediate Past-President, the Secretary-Treasurer, the Chairman of the Board of Trustees, and four additional members elected annually by the Board of Trustees from among its members at its meeting held at the same time as the annual meeting of the association. A vacancy occurring in the elected membership may be filled by the Board of Trustees. Section 2. Powers and duties. The Executive Committee may exercise all the powers and perform all the duties of the Board of Trustees between the meetings of the Board subject to ratification by the - Board except the power to initiate the taking of any referendum or poll of members of the association, The Executive Committee shall prepare an annual budget for submission to the Board of Trustees, and shall perform such other duties as the Board of Trustees may prescribe. Section 3 . Meeting; quorum. The Executive Committee shall meet at the call of the President, or at the call of the Executive Director upon the written demand of at least three of its members. All members shall be given at least 48 hours notice by mail, or tele- phone of the time and place of any meeting, Five members present at a meeting shall constitute a quorum. Action of the Executive Committee may be taken without a meeting by mail or telephone vote. Any elected member of the Executive Committee who fails to attend two successive meetings without good cause shall automatically forfeit his office and the vacancy shall be filled by the Board of Trustees. Good cause shall be determined by the Executive Committee. A summary of t h e minutes of each meeting of t h e Executive Committee s h a l l b e p r i n t e d i n t h e S t a t e Bar B u l l e t i n , w i t h a n o t a t i o n t h a t any i n t e r e s t e d person may o b t a i n a copy of t h e minutes upon r e q u e s t t o t h e Executive D i r e c t o r . ARTICLE V YOUNG L W E S SECTION A YR There s h a l l be a young lawyers s e c t i o n of t h e S t a t e Bar of Montana. Each member of t h e S t a t e Bar o f Montana t h i r t y - s i x y e a r s o l d o r younger may be a member of t h i s s e c t i o n . ARTICLE V I AMERICAN BAR ASSOCIATION DELEGATE Any a c t i v e member who i s a r e s i d e n t of Montana and maintains an o f f i c e f o r p r a c t i c e of law i n t h i s s t a t e may b e nominated a s a c a n d i d a t e f o r d e l e g a t e t o t h e House of Delegates o f t h e American Bar A s s o c i a t i o n by a p e t i t i o n signed by n o t less than twenty-five a c t i v e members. Nominating p e t i t i o n s s h a l l b e f i l e d w i t h o r mailed t o t h e S t a t e Bar of Montana a t l e a s t s i x t y days b e f o r e t h e e l e c t i o n d a t e s p e c i f i e d by t h e Board of T r u s t e e s . I n t h e event t h a t no member s h a l l be nominated as d e l e g a t e , t h e Board of T r u s t e e s s h a l l nominate one o r more q u a l i f i e d c a n d i d a t e s f o r such o f f i c e . Election of t h e d e l e g a t e s h a l l be by s e c r e t b a l l o t of a l l a c t i v e members and t h e c a n d i d a t e r e c e i v i n g t h e g r e a t e s t number of v o t e s cask s h a l l be elected. The m a i l i n g , r e t u r n and canvass of t h e b a l l o t s s h a l l be conducted i n t h e same manner a s provided f o r t h e e l e c t i o n o f t r u s t e e s . ARTICLE VII EXECUTIVE DIRECTOR There s h a l l be an Executive D i r e c t o r of t h e S t a t e Bar who s h a l l be t h e c h i e f e x e c u t i v e o f f i c e r of t h e a d m i n i s t r a t i v e s t a f f and i n d i r e c t charge of t h e S t a t e Bar o f f i c e , i t s r e c o r d s , p r o p e r t y and equipment. The e x e c u t i v e d i r e c t o r s h a l l be h i r e d by t h e Board of T r u s t e e s under terms of employment and compensation f i x e d by t h e Board. He s h a l l upon e n t e r i n g upon t h e d u t i e s of e x e c u t i v e d i r e c t o r g i v e a s u r e t y bond t o t h e S t a t e Bar of Montana f o r t h e f a i t h f u l performance of his duties, which bond must be approved by the President. Sub- ject to the general control of the officers, executive committee, and Board of Trustees and as appropriate and consistent with the requirements of this constitution and the by-laws, he shall: (a) Attend meetings of the executive committee and Board of Trustees, and keep and disseminate the minutes of such meetings. (b) Collect, deposit and disburse the association's funds pursuant to the budget, and invest surplus funds at the direction of the executive committee. (c) Maintain membership lists, and member files. (d) Advise and assist the officers, trustees, sections and committees. (e) Make the arrangements for association meetings. (f) Perform such other duties as may be directed by the Board of Trustees or officers, or as prescribed by the State Bar's constitution or by these by-laws. ARTICLE VIII MEETINGS OF THE ASSOCIATION Section 1. Annual meeting. There shall be an annual meeting of the members of the State Bar at such time and place as is designated by the Board of Trustees. Section 2. Special meetings. Special meetings of the members of the State Bar of Montana may be held at such times and places as designated by the Board of Trustees. A special meeting may also be called upon a petition signed by not less than twenty percent of the members of the State Bar of Montana. Section 3. Notice of meetings. At least fifteen days written notice shall be given for all special meetings of the State Bar of Montana and at least thirty days notice shall be given for the annual meeting of the State Bar of Montana. Section 4 Powers of annual meeting. . At any annual or special meeting of the State Bar of Montana the members present shall con- stitute a quorum and, by a majority vote of those present, may modify or rescind any action or decision of the Board of Trustees and may a l s o i n s t r u c t t h e Board a s t o f u t u r e a c t i o n and t h e Board s h a l l be bound by any such a c t i o n . The r i g h t a f o r e s a i d t o d i r e c t , modify o r r e s c i n d a n a c t i o n of t h e Board s h a l l n o t i n c l u d e t h e power t o i n v a l i d a t e payments p r e v i o u s l y made under t h e d i r e c t i o n of t h e Board. S e c t i o n 5. Conference f o r members. A t each annual meeting t h e o f f i c e r s and e x e c u t i v e committee s h a l l i n c l u d e i n t h e p r i n t e d pro- gram a time and p l a c e a t which any member of t h e S t a t e Bar s h a l l have an o p p o r t u n i t y t o c o n f e r w i t h t h e o f f i c e r s and t h e e x e c u t i v e committee and p r e s e n t any complaints o r s u g g e s t i o n s f o r t h e improvement of t h e S t a t e Bar. ARTICLE IX STANDING COMMITTEES S e c t i o n 1. Appointment and removal. (a) Appointment. Number of members. Term. Each of t h e s t a n d i n g committees s h a l l c o n s i s t of n i n e members. The members of each such committee s h a l l b e appointed by t h e p r e s i d e n t f o r a term of t h r e e y e a r s , s o arranged t h a t t h e term of o f f i c e of only o n e - t h i r d of t h e members s h a l l e x p i r e i n any y e a r . The chairman of each com- m i t t e e s h a l l be d e s i g n a t e d by t h e p r e s i d e n t f o r a term of one year. A vacancy i n any committee s h a l l b e f i l l e d by appointment by t h e p r e s i d e n t f o r t h e unexpired term. Members of committees s h a l l s e r v e u n t i l t h e appointment of t h e i r r e s p e c t i v e s u c c e s s o r s . A majority of t h e members of any committee s h a l l c o n s t i t u t e a quorum f o r t h e t r a n s a c t i o n of b u s i n e s s . Each committee s h a l l keep a r e c o r d of i t s meetings and proceedings and s h a l l submit an annual r e p o r t t o t h e Board of T r u s t e e s . The Board of T r u s t e e s may a s s i g n powers o r d u t i e s t o any s t a n d i n g committee i n a d d i t i o n t o t h o s e i n i t i a l l y p r e s c r i b e d f o r t h e committee. (b) Removal f o r non-attendance. A f t e r two c o n s e c u t i v e non- excused absences from meetings of any committee, t h e chairman of t h e committee s h a l l r e p o r t s a i d absences t o t h e p r e s i d e n t . The p r e s i - d e n t s h a l l thereupon n o t i f y such member o f h i s removal from t h e committee, and a p p o i n t a replacement f o r t h e b a l a n c e of t h e term of office. Section 2. Committees c r e a t e d . The Board of T r u s t e e s , by m a j o r i t y v o t e , s h a l l c r e a t e t h e committees of t h e S t a t e Bar and p r e s c r i b e t h e i r powers and d u t i e s . ARTICLE X SECTION ORGANIZATION AND ACTIVITIES S e c t i o n 1. Establishment of s e c t i o n s . The Board of T r u s t e e s may e s t a b l i s h , c o n s o l i d a t e and d i s c o n t i n u e s e c t i o n s . Upon approval of an a p p l i c a t i o n f o r t h e e s t a b l i s h m e n t of a new s e c t i o n , t h e Board of T r u s t e e s , by a v o t e of a m a j o r i t y of i t s members, may e s t a b l i s h such a s e c t i o n d e d i c a t e d t o a f i e l d of law n o t committed t o any o t h e r s e c t i o n . Every a p p l i c a t i o n t o t h e Board of T r u s t e e s f o r t h e e s t a b l i s h m e n t of a s e c t i o n s h a l l s e t f o r t h : (a) The f i e l d of law t o which t h e proposed s e c t i o n i s t o be d e d i c a t e d , which s h a l l b e w i t h i n t h e purposes of t h e S t a t e Bar and o u t s i d e t h e f i e l d of law committed t o any e x i s t i n g s e c t i o n . (b) A statement of t h e need f o r t h e proposed s e c t i o n . (c) The proposed by-laws f o r t h e government o f such s e c t i o n . (d) The name of t h e s e v e r a l committees, i f any, of t h e proposed section. (e) A l i s t of members of t h e a s s o c i a t i o n whd have s i g n i f i e d t h e i r i n t e n t i o n o f a p p l y i n g f o r membership i n t h e proposed s e c t i o n . An a p p l i c a t i o n f o r t h e c o n s o l i d a t i o n of e x i s t i n g s e c t i o n s s h a l l s e t f o r t h t h e information r e q u i r e d i n t h e c a s e of an a p p l i c a t i o n f o r establishing a section. Such an a p p l i c a t i o n may be g r a n t e d by t h e Board of T r u s t e e s i n i t s d i s c r e t i o n , by a v o t e of a m a j o r i t y of t h e members. A s e c t i o n may b e d i s c o n t i n u e d by a v o t e of a m a j o r i t y of t h e Board of T r u s t e e s , b u t only a f t e r n o t i c e by mail t o t h e members of s a i d s e c t i o n . S e c t i o n 2. Membership of s e c t i o n s . Any member of t h e S t a t e Bar s h a l l be e n t i t l e d a t h i s e l e c t i o n t o e n r o l l i n any s e c t i o n . Section 3. S e c t i o n o f f i c e r s and c o u n c i l . Each s e c t i o n s h a l l have a chairman and c o u n c i l and such o t h e r o f f i c e r s as t h e s e c t i o n by-laws may provide. The c o u n c i l of a s e c t i o n s h a l l c o n s i s t of t h e o f f i c e r s e x - o f f i c i o and such o t h e r members a s may be provided i n t h e by-laws. N change i n t h e by-laws of any s e c t i o n s h a l l be e f f e c t i v e u n t i l o approved by t h e Board of T r u s t e e s . - 18 - Section 4. Section dues. The members of any s e c t i o n may be required t o pay s e c t i o n dues i n such amount and f o r such purposes a s t h e s e c t i o n , with t h e approval of t h e Board of T r u s t e e s , may determine. The dues s h a l l be paid t o t h e S t a t e Bar o f f i c e . Section 5. Section meetings. The o f f i c e r s and c o u n c i l of each s e c t i o n s h a l l arrange f o r meetings of t h e s e c t i o n i n conjunction with t h e annual meeting. Special meetings may be held a t such times and places a s t h e s e c t i o n council o f f i c e r s may determine. Section 6. Reports. Each s e c t i o n s h a l l submit t o t h e Board of Trustees p r i o r t o t h e annual meeting of t h e a s s o c i a t i o n i n each year a r e p o r t of t h e a c t i v i t i e s of t h e s e c t i o n . Section 7. Expenses. Expenditures out of t h e dues of s e c t i o n s s h a l l be made only by d i r e c t i o n of t h e council of t h e s e c t i o n ; and t h e S t a t e Bar s h a l l pay out of such dues only such amounts a s t h e chairman of t h e s e c t i o n s h a l l c e r t i f y t o have been so a u t h o r i - zed. ARTICLE X I CLIENT SECURITY FUND The Board of Trustees s h a l l e s t a b l i s h a c l i e n t s e c u r i t y fund and provide r u l e s of procedure f o r i t s administration. The Board may purchase a c l i e n t s e c u r i t y indemnity bond f o r a d d i t i o n a l c l i e n t protection. ARTICLE X I 1 OFFICIAL PUBLICATION: NOTICE TO M M E S E BR (a) The Montana S t a t e Bar B u l l e t i n s h a l l be t h e p u b l i c a t i o n of t h e S t a t e Bar of Montana. A l l o f f i c i a l n o t i c e s s h a l l be pub- l i s h e d t h e r e i n and such p u b l i c a t i o n s h a l l 'can;;stitute n o t i c e t o a l l members. The Bar B u l l e t i n s h a l l be mailed t o a l l members a t t h e i r address of record. (b) A f i n a n c i a l statement showing a s s e t s , l f a b i l i t i e s , r e c e i p t s and disbursements of t h e S t a t e Bar s h a l l be published i n t h e S t a t e Bar B u l l e t i n p r i o r t o t h e annual meeting. ARTICLE XI11 REFERENDUM PROCEDURE Section 1. Trustees may initiate. The Baard of Trustees may at any time, by the affirmative vote of two-thirds of its membership, refer to the active members of the association for a determination by mail ballot, any question of association policy. Section 2. Annual or special meetings may initiate. The Board of Trustees shall, in like manner, submit for determination by the active members of the association, any question of association policy, including proposed changes in the constitution or by-laws of the association, whenever directed so to do by resolution adopted at any regularly called meeting of the membership by the affirmative vote of a majority of those voting. Section 3. Members may initiate by petition. The Board of Trustees shall, in like manner,submit for determination, by the members of the association, of any question of association policy, including proposals for changes in the constitution or by-laws, whenever directed so to do by a petition signed by not less than ten percent of the active members of the association. Section 4 Procedure. . Ballots for use in any such referendum shall be prepared, distributed, returned and counted in accordance with regulations prescribed by the Board of Trustees. The result of the referendum, as determined by a majority of the votes c a s t , when duly ascertained, shall be published by the Board of Trustees in the official Bar Bulletin, and shall control the action of the association, the Board of Trustees, the officers, sections and committees. ARTICLE XIV CANONS OF PROFESSIONAL ETHICS The rules of professional conduct set forth from time to time in the Canons of Professional Ethics of the Supreme Court, as it may be supplemented or modified by the Court, shall be the standards governing the practice of law in this state. ARTICLE XV A ED ET MN MN (a) These by-laws may be amended o r r e p e a l e d a t any annual o r s p e c i a l meeting of t h e S t a t e B a r by a m a j o r i t y v o t e of t h e members p r e s e n t , provided n o t i c e s e t t i n g f o r t h t h e proposed amendment s h a l l be given a l l members i n t h e n o t i c e of t h e meeting. (b) The Board of T r u s t e e s s h a l l review t h e by-laws every t h r e e y e a r s , s o l i c i t o p i n i o n s of t h e members r e l a t i v e t o proposed amendments and r e p o r t t o t h e members p r e s e n t a t t h e annual meeting i n t h a t year. ARTICLE XVI FIRST ELECTION The f i r s t e l e c t i o n of o f f i c e r s and a Board of T r u s t e e s under t h e s e by-laws s h a l l be h e l d under t h e d i r e c t i o n of t h e Supreme Court i n accordance w i t h t h e by-laws. A t t h e f i r s t e l e c t i o n a p r e s i d e n t s h a l l b e nominated and e l e c t e d i n t h e same manner a s t h e p r e s i d e n t - e l e c t i n accordance w i t h Article II(c). The o f f i c e r s and t r u s t e e s f i r s t e l e c t e d s h a l l assume o f f i c e on e l e c t i o n day and s h a l l immediately s e l e c t a s i t e and d a t e f o r t h e f i r s t annual meeting of t h e a s s o c i a t i o n . The terms of o f f i c e of o f f i c e r s f i r s t e l e c t e d s h a l l e x p i r e a t t h e conclusion of t h e second annual meeting. ARTICLE X V I I EFFECTIVE DT AE These by-laws a r e e f f e c t i v e on March 1, 1975. The following implementation schedule, which d i f f e r s from t h e by-laws i n n o t i f i c a t i o n time requirements f o r t h e e l e c t i o n p r o c e s s , i s adopted: March 1, 1975 . E f f e c t i v e d a t e of C o n s t i t u t i o n and By-Laws March 1, 1975 N o t i f i c a t i o n , X e g i s t r a t i o n forms, and nominating p e t i t i o n s s e n t t o a l l members of Unified Bar. A p r i l 1, 1975 Deadline f o r f i l i n g nominating p e t i t i o n s w i t h Supreme Court. A p r i l 15,1975 B a l l o t s mailed t o a l l members by Supreme Court. May 1, 1975 Deadline f o r r e t u r n i n g voted b a l l o t s t o Supreme Court. May 1 0 , 1975 F i r s t Election date. May 15, 1975 O r g a n i z a t i o n a l meeting -- Board of T r u s t e e s t r a n s f e r of Montana Bar A s s o c i a t i o n a s s e t s t o Unified Bar. H i r i n g of s t a f f . C a l l i n g of f i r s t annual meeting o f Unified Bar. May 20, 1975 Mail n o t i c e of f i r s t annual meetine;. June 1, 1975 F i r s t m a i l i n g of dues n o t i c e s f o r 1975-1976 f i s c a l y e a r . June 21, 1975 Convention and f i r s t r e g u l a r Board meeting. J u l y 1, 1975. Due d a t e f o r dues. Sept. 1, 1975 Second dues n o t i c e . Oct. 1, 1975 Suspension f o r unpaid dues. Oct. 21, 1975 Notice of suspension s e n t t o c o u r t s . A copy of t h i s Order s h a l l be mailed t o each c u r r e n t l y l i c e n s e d a t t o r n e y appearing i n t h e r e c o r d s of t h e C l e r k of t h e Supreme Court. DONE t h i s > & a & dy of January, 1975.