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THE PROCESS AND YOUR COMMENTS

Proposed amendments to the Rules of the North Carolina State Bar are published for comment during the quarter after the council of the North Carolina State Bar approves their publication. The proposed amendments are published in the North Carolina State Bar's Journal and on this website. After publication for comment, the proposed rule amendments are considered for adoption by the council at its next quarterly meeting. If adopted, the rule amendments are submitted to the North Carolina Supreme Court for approval. Amendments become effective upon approval by the court. Unless otherwise noted, proposed additions to rules appear in in bold and underlined print, deletions are interlined. Proposed amendments to the Rules of Professional Conduct appear at the end of the page.

The State Bar welcomes your comments regarding proposed amendments to the rules. Please adress them to Alice Mine

Highlights

  • Extensive proposed amendments to the rules on prepaid legal services plans are published for comment.

Amendments Pending Supreme Court Approval

At its meetings on October 25, 2019, and January 24, 2020, the North Carolina State Bar Council voted to adopt the following rule amendments for transmission to the North Carolina Supreme Court for approval. (For the complete text of the proposed rule amendments, see the Fall 2019 and Winter 2019 editions of the Journal or visit the State Bar website.)

Proposed Amendment to the Rules Governing the Administrative Committee
27 N.C.A.C. 1D, Section .0900, Procedures for the Administrative Committee

The proposed amendment will allow service of a notice to show cause via publication in the State Bar Journal when the State Bar is unable to serve a member using other authorized methods.

Proposed Amendment to The Plan of Legal Specialization
27 N.C.A.C. 1D, Section .1700, The Plan of Legal Specialization

The proposed amendment clarifies the prohibition on waiving the minimum years of practice requirement for specialty certification.

Proposed Amendment to Immigration Law Specialty Standards
27 N.C.A.C. 1D, Section .2600, Certification Standards for the Immigration Law Specialty

The proposed amendment permits the Board of Legal Specialization to offer the immigration law specialty exam either annually or every other year based upon the recommendation of the Immigration Law Specialty Committee.

Proposed Amendments to The Plan for Certification of Paralegals
27 N.C.A.C. 1G, Section .0100, The Plan for Certification of Paralegals

The proposed amendments eliminate the educational prerequisite for paralegal certification for applicants who satisfy work experience requirements. To be certified, applicants who satisfy the work experience requirements must pass the certification examination.

Proposed Amendments 

At its meeting on January 24, 2020, the council voted to publish for comment the following proposed rule amendments:

Proposed Amendments to the Rules on Administrative Reinstatement

27 N.C.A.C. 1D, Section .0900, Procedures for Administrative Committee

The proposed amendments replace the current $125 fee for reinstatement from inactive status and administrative suspension with a fee in an amount to be determined by the Council.

.0902 Reinstatement from Inactive Status

(a) Eligibility to Apply for Reinstatement.

...

(c) Requirements for Reinstatement

(1) Completion of Petition...

(6) Payment of Fees, Assessments and Costs.

The member must pay all of the following:

(A) a $125.00 reinstatement fee in an amount determined by the council;

(B) …

(d) Service of Reinstatement Petition ...

.0904 Reinstatement from Suspension

(a) Compliance Within 30 Days of Service of Suspension Order…

(d) Requirements for Reinstatement

(1) Completion of Petition ...

(6) Payment of Fees, Assessments and Costs

The member must pay all of the following:

(A) a $125.00 reinstatement fee in an amount determined by the council or $250.00 reinstatement fee if suspended for failure to comply with CLE requirements;

(B) ...

(7) Pro Hac Vice Registration Statements  ...

(e) Procedure for Review of Reinstatement Petition ...

Proposed Amendments to Regulations for Organizations Practicing Law

27 N.C.A.C. 1E, Section .0100, Regulations for Professional Corporations and Professional Limited Liability Companies Practicing Law; Section .0200, Registration of Interstate and International Law Firms

The proposed amendments replace specified filing and registration fees with fees in amounts to be determined by the council.

.0104 Management and Financial Matters

(a) Management

 ...

(g) Transfer of Stock of Professional Corporation - When stock of a professional corporation is transferred to a licensee, the professional corporation shall request that the secretary issue a stock transfer certificate (Form PC-5; see Rule .0106(e) of this subchapter) as required by G.S. 55B-6. The secretary is authorized to issue the certificate which shall be permanently attached to the stub of the transferee’s stock certificate in the stock register of the professional corporation. The fee for such certificate shall be two dollars in an amount determined by the council and shall be charged for each transferee listed on the stock transfer certificate.

.0105, General and Administrative Provisions

(a) Administration of Regulations ...

...

(d) Filing Fee - Except as otherwise provided in these regulations, all reports or papers required by law or by these regulations to be filed with the secretary shall be accompanied by a filing fee in an amount determined by the council.

(e) Accounting for Filing Fees - ...

.0203, Registration Fee

There shall be submitted with each registration statement and supporting documentation a registration fee of $500.00 as an administrative cost which shall be in an amount determined by the council.

Proposed Amendments to the Rules for Prepaid Legal Services Plans

27 N.C.A.C. 1E, Section .0300, Rules Concerning Prepaid Legal Services Plans

After studying the rules for registration of prepaid legal services plans, the Authorized Practice Committee of the State Bar Council determined that the rules and forms on which prepaid legal service plans register with the State Bar should be updated. The committee recommended comprehensive amendments to the rules including: incorporating the registration, renewal, and amendment forms in the rules; eliminating the requirement that the State Bar review plan documents to determine whether representations made in the registration, renewal, and amendment forms are true; and specifying that registration and renewal fees shall be in amounts to be determined by the State Bar Council. Note that new rules are identified as new rules, but the text is not underlined or in bold.

.0301 State Bar May Not Approve or Disapprove Plans [INCORPORATED INTO NEW RULE .0309]

The North Carolina State Bar shall not approve or disapprove any prepaid legal services plan or render any legal opinion regarding any plan. The registration of any plan under these rules shall not be construed to indicate approval or disapproval of the plan.

.0303 .0301 Definitions of Prepaid Plan

The following words and phrases when used in this subchapter shall have the meanings given to them in this rule:

1) Counsel – the counsel of the North Carolina State Bar appointed by the Council of the North Carolina State Bar.

2) Plan Owner – the person or entity not authorized to engage in the practice of law that operates or is seeking to operate a plan in accordance with these Rules.

3) A prepaid legal services plan or a group legal services plan (“a plan”) is Prepaid Legal Services Plan or Plan – any arrangement by which a person, firm or corporation or entity, not otherwise authorized to engage in the practice of law, in exchange for any valuable consideration, offers to provide or arranges the provision of specified legal services that are paid for in advance of any immediate need for the specified legal services (“covered services”). In addition to covered services, a plan may provide arrange the provision of specified legal services at fees that are less than what a non-member of the plan would normally pay. The North Carolina legal services offered arranged by a plan must be provided by a North Carolina licensed lawyer attorney who is not an employee, director, or owner of the plan. A prepaid legal services plan does not include the sale of an identified, limited legal service, such as drafting a will, for a fixed, one-time fee. [This definition is also found in Rule 7.3(d) of the Revised Rules of Professional Conduct.]

.0311 .0302 State Bar Jurisdiction

The North Carolina State Bar retains jurisdiction of over North Carolina licensed attorneys who participate in prepaid legal services plans and North Carolina licensed attorneys are, whose conduct is subject to the rules and regulations of the North Carolina State Bar.

.0303 Role of Authorized Practice Committee [NEW RULE]

The Authorized Practice Committee (“committee”), as a duly authorized standing committee of the North Carolina State Bar Council, shall oversee the registration of plans in accordance with these rules. The committee shall also establish reasonable deadlines, rules and procedures regarding the initial and annual registrations, amendments to registrations, and the revocation of registrations of plans.

.0309 .0304 Index of Registered Plans

The North Carolina State Bar shall maintain an index of the prepaid legal services plans registered pursuant to these rules. All documents filed in compliance with this pursuant to these rules are considered public documents and shall be available for public inspection during normal regular business hours.

.0302 .0305 Registration Requirement

A prepaid legal services plan (“plan”) must shall be registered with the North Carolina State Bar before its implementation or operation operating in North Carolina. Registration shall be evidenced by a certificate of registration issued by the State Bar. No licensed North Carolina attorney shall participate in a prepaid legal services plan in this state unless the plan has registered with the North Carolina State Bar and has complied with the rules set forth below. No prepaid legal services plan may operate in North Carolina unless at least one licensed North Carolina attorney has agreed to provide the legal services offered under the plan at all times during the operation of the plan. No prepaid legal services plan may operate in any manner that constitutes violates the North Carolina statutes regarding the unauthorized practice of law. No plan may operate until its registration has been accepted by the North Carolina State Bar in accordance with these rules. No plan may operate in North Carolina unless at least one licensed North Carolina attorney has agreed to provide the legal services arranged by the plan at all times during the operation of the plan. No licensed North Carolina attorney shall participate in a plan in this state unless the plan has registered with the State Bar and has complied with the rules set forth below.

.0308 .0306 Registration Fees

The initial and annual registration fees for each prepaid legal services plan shall be $100 in an amount determined by the council and shall be non-refundable. The fee is nonrefundable.

.0304 .0307 Registration Procedures

To register with the North Carolina State Bar, a prepaid legal services plan must comply with all of the following procedures for initial registration:

(a) A prepaid legal services plan seeking to operate in North Carolina must file an To register a plan, the plan owner shall complete the initial registration statement form contained in Rule .0310 and file it with the secretary of the North Carolina State Bar, using a form promulgated by the State Bar, requesting registration.

(b) The owner or sponsor of the prepaid legal services plan must fully disclose in its initial registration statement form filed with the secretary at least the following information: the name of the plan, the name of the owner or sponsor of the plan, a principal address for the plan in North Carolina, a designated plan representative to whom communications with the State Bar will be directed, all persons or entities with ownership interest in the plan and the extent of their interests, all terms and conditions of the plan, all services provided under the plan and a schedule of benefits and fees or charges for the plan, a copy of all plan documents, a copy of all plan marketing and advertising materials, a copy of all plan contracts with its customers, a copy of all plan contracts with plan attorneys, and a list of all North Carolina attorneys who have agreed to participate in the plan. Additionally, the owner or sponsor will provide a detailed statement explaining how the plan meets the definition of a prepaid legal services plan in North Carolina. The owner or sponsor of the prepaid legal services plan will certify or acknowledge the veracity of the information contained in the registration statement, an understanding of the rules applicable to prepaid legal services plans, and an understanding of the law on unauthorized practice.

(c) The Authorized Practice Committee (“committee”), as a duly authorized standing committee of the North Carolina State Bar Council, shall oversee the registration of prepaid legal services plans in accordance with these rules. The committee shall also establish any deadlines by when registrations may be submitted for review and any additional, necessary rules and procedures regarding the initial and annual registrations, and the revocation of registrations, of prepaid legal services plans.

.0305 .0308 Initial Registration Determination

Counsel will shall review the plan’s initial registration statement to determine whether the registration statement is complete and the plan, as described in the registration statement, meets the definition of a prepaid legal services plan and otherwise satisfies the requirements for registration provided by Rule .0304. If, in the opinion of counsel, the plan clearly meets the definition and the registration statement otherwise satisfies the requirements for registration, the secretary will shall issue a certificate of registration to the plan’s sponsor owner. If, in the opinion of counsel, the plan does not meet the definition or otherwise fails to satisfy the requirements for registration, counsel will shall inform the plan’s sponsor owner that the registration is not accepted plan will not be registered and shall explain any the deficiencies. Upon notice that the plan’s registration has not been accepted will not be registered, the plan sponsor owner may resubmit an one amended plan initial registration form statement or request a hearing before the committee pursuant to Rule .0313 .0317 below. Counsel will shall provide a report to the committee each quarter identifying the plans that submitted initial registration statements and the registration decisions made by counsel whether each plan was registered.

.0309 Registration Does Not Constitute Approval [NEW RULE]

The registration of any plan under these rules shall not be construed to indicate approval, disapproval, or an endorsement of the plan by the North Carolina State Bar. Any plan that advertises or otherwise represents that it is registered with the State Bar shall include a clear and conspicuous statement within the advertisement or communication that registration with the State Bar does not constitute approval or an endorsement of the plan by the State Bar.

.0310 Advertising of State Bar Approval Prohibited [INCORPORATED INTO NEW RULE .0309]

Any plan that advertises or otherwise represents that it is registered with the North Carolina State Bar shall include a clear and conspicuous statement within the advertisement or communication that registration with the North Carolina State Bar does not constitute approval of the plan by the State Bar.

.0310 Initial Registration Statement Form [NEW RULE]

Initial Registration Statement Form for Prepaid Legal Services Plan

Any person or entity seeking to operate a prepaid legal services plan shall register the plan with the North Carolina State Bar on the initial registration statement form provided by the State Bar. Each plan must be registered prior to its operation in North Carolina.

The plan owner shall complete this form and file it with the secretary of the State Bar. The plan owner must provide complete responses to each of the following items. The plan will not be registered if any item is left incomplete.

1. Name of Plan:

(a) Owner of Plan

i. Name:                                   

ii. Title:                                      

2. Principal North Carolina Address for Plan:

a. Address:

b. City:

c. State:                                          

d. Zip Code:                                

3.Contact Information for Plan Representative

a. Name:                                                            

b. Address:                                    

c. City:                     

d. State:                    

e. Zip Code:           

f. Telephone Number:

g. Email Address:

4. Is the plan offered by a person or entity not authorized to engage in the practice of law? [Yes] [No]

5. Does the plan, in exchange for any valuable consideration, offer to arrange the provision of specified legal services that are paid for in advance of any immediate need for the specified legal service (“covered services”)? [Yes] [No]

6. Are the legal services the plan offers to arrange provided by North Carolina licensed attorneys who are not employees, directors, or owners of the plan? [Yes] [No]

a. Attach a list of the names, addresses, bar numbers, and telephone numbers of all North Carolina licensed attorneys who have agreed to participate in the plan. This list should be alphabetized by attorney last name.

7. Do the covered services the plan offers to arrange extend beyond the sale of an identified, limited legal service, such as drafting a will, for a fixed, one-time fee? [Yes] [No]

8. Has the plan owner signing below read and gained an understanding of the administrative rules applicable to prepaid legal services plans as adopted by the State Bar Council? [Yes] [No]

9. Does the plan owner signing below agree to comply with the administrative rules applicable to prepaid legal services plans as adopted by the State Bar Council and accept responsibility for the plan’s compliance with those administrative rules? [Yes] [No]

10. Has the plan owner signing below read and gained an understanding of the law governing the unauthorized practice of law as set out in N.C. Gen. Stat. § 84-2.1, 4, and 5? [Yes] [No]

11. Is a check for the initial registration fee made payable to the State Bar enclosed with this statement? [Yes] [No]

12. After reading the foregoing form and examining the requested attachment in its entirety, does the plan owner signing below certify that all statements made in this form and all attachments are true and correct to the best of his or her knowledge? [Yes] [No]

_______________________________

Date

_______________________________

Signature of Plan Owner

_______________________________

Typed Name of Plan Owner

.0307 .0311 Annual Registration Renewal

After its initial registration, a prepaid legal services plan may continue to operate so long as it is operated as registered and it renews its registration annually on or before January 31 by filing a timely files the proscribed registration renewal form and its operation is consistent with its registration statement. The plan owner shall file the registration renewal form contained in Rule .0312 with the secretary of the North Carolina State Bar and paying the annual registration fee on or before December 1 of each year. If a plan fails to file the registration renewal form and pay the annual registration fee by December 1, counsel may request the committee at its next quarterly meeting to instruct the secretary of the State Bar to serve upon the plan owner a notice to show cause why the plan’s registration should not be revoked as provided in Rule .0316.

.0312 Registration Renewal Form [NEW RULE]

Registration Renewal Form for Prepaid Legal Services Plan

Each prepaid legal services plan registered to operate in North Carolina shall renew its registration each year. If a plan fails to file the registration renewal form and pay the annual registration fee by December 1, counsel may request the Authorized Practice Committee at its next quarterly meeting to instruct the secretary of the State Bar to serve upon the plan’s owner a notice to show cause why the plan’s registration should not be revoked.

1. Current Registration Information

a. Plan Name:

b. Plan Number:

2. Is the plan still offered by a person or entity not authorized to engage in the practice of law? [Yes] [No]

3. Does the plan, in exchange for any valuable consideration, still offer to arrange the provision of specified legal services that are paid for in advance of any immediate need for the specified legal service (“covered services”)? [Yes] [No]

4. Are the legal services the plan offers to arrange still provided by North Carolina licensed attorneys who are not employees, directors, or owners of the plan? [Yes] [No]

5. Do the covered services the plan offers to arrange still extend beyond the sale of an identified, limited legal service, such as drafting a will, for a fixed, one-time fee? [Yes] [No]

6. Attach a list of the names, addresses, bar numbers, and telephone numbers of all North Carolina licensed attorneys who provide or offer to provide the legal services arranged by the plan. This list should be alphabetized by attorney last name.

7. If there have been any amendments to the plan since its initial registration statement or since it renewed its registration last year that are not indicated herein, please attach copies of the registration amendment forms filed with the State Bar and the letter from the State Bar reporting that such forms were registered to this report and indicate in the box provided whether any amendments are attached. []

8. Is a check for the non-refundable annual registration fee payable to the State Bar enclosed with this report? [Yes] [No]

9. Are there any changes the owner signing below wishes to make to the plan? [Yes] [No]

a. If “No,” please skip to item 15. If “Yes,” only complete the items below that the plan owner wishes to change. Please note that any desired changes must be indicated here and that the plan owner must complete and file a separate registration amendment form.

10. New Name of Plan:

11. New Owner of Plan

a. Name:

b. Title:

12. New Principal North Carolina Address for Plan

a. Address:

b. City:

c. State:

d. Zip Code:

13. New Contact Information for Plan Representative

a. Name:

b. Address:

c. City:

d. State:

e. Zip Code:

f. Telephone Number:

g. Email Address:

14. Does the plan owner signing below understand that the amendments to this plan may not be implemented until the registration amendment form is registered with the State Bar in accordance with 27 N.C.A.C. 1E, §§ .0313 through .0315 of the North Carolina State Bar Regulations for Organizations Practicing Law? [Yes] [No]

15. Does the plan owner signing below certify that the information contained herein is true and correct to the best of his or her knowledge? [Yes] [No]

_______________________________

Date

_______________________________

Signature of Plan Owner

_______________________________

Typed Name of Plan Owner

.0306 .0313 Requirement to File Registration Amendments

a. A plan owner shall file an amendment to its registration statement (“registration amendment”) to document any change in the information provided in its initial registration statement or in its last registration renewal form. Amendments to prepaid legal services plans and to other documents required to be filed upon registration of such plans shall be filed in the office of the North Carolina State Bar A plan owner shall file the registration amendment form contained in Rule .0315 with the secretary of the North Carolina State Barno later than 30 days after the adoption of such amendments prior to any change that requires the plan owner to file an amendment. Plan amendments must be submitted in the same manner as the initial registration and may An amendment to a plan shall not be implemented until the amended plan registration amendment is registered in accordance with Rule .0305 .0314.

b. A plan owner shall not be required to file a registration amendment form each time there is a change in licensed North Carolina attorneys who have agreed to provide the legal services arranged by the plan. A plan owner shall provide a current list of licensed North Carolina attorneys who agree to provide the legal services arranged by the plan with each registration renewal form as set forth in Rule .0312.

.0314 Determination of Registration Amendments [NEW RULE]

Counsel shall review a plan’s registration amendment. If counsel determines that the plan will continue to satisfy the requirements for registration, counsel shall inform the plan owner that the plan’s registration amendment will be registered. If counsel determines that the plan will not continue to satisfy the requirements for registration, counsel shall inform the plan owner that the registration amendment will not be registered and shall explain the deficiencies. Counsel shall provide a report to the committee each quarter identifying the plans that submitted registration amendments and whether each registration amendment was registered.

.0315 Registration Amendment Form [NEW RULE]

Registration Amendment Form for Prepaid Legal Services Plan

A prepaid legal services plan shall file a registration amendment form with the secretary of the North Carolina State Bar no later than 30 days after a change in the information provided by the plan in its initial registration statement or in its last registration renewal form. Changes to the operation of the plan or to the governing documents of the plan that are inconsistent with the information contained in the plan’s initial registration statement or in the plan’s last registration renewal form may not be implemented until they are registered with the State Bar.

The plan owner shall provide complete responses to items 2 – 5 if he or she would like to amend the plan’s current registration information. There is no need to complete items that have not changed. The plan owner shall provide complete responses to item 1 and items 6 – 11. If more space is needed to respond to an item, additional documents may be attached to this form.

1. Current Registration Information

a. Plan Name:

b. Plan Number:

2. New Name of Plan:

3. New Owner of Plan

a. Name:

b. Title:

4. New Principal North Carolina Address for Plan

a. Address:

b. City:

c. State:

d. Zip Code:

5. New Contact Information for Plan Representative

a. Name:

b. Address:

c. City:

d. State:

e. Zip Code:

f. Telephone Number:

g. Email Address:

6. Is the plan still offered by a person or entity not authorized to engage in the practice of law? [Yes] [No]

7. Does the plan, in exchange for any valuable consideration, still offer to arrange the provision of specified legal services that are paid for in advance of any immediate need for the specified legal service (“covered services”)? [Yes] [No]

8. Are the legal services the plan offers to arrange still provided by North Carolina licensed attorneys who are not employees, directors, or owners of the plan? [Yes] [No]

9. Do the covered services the plan offers to arrange still extend beyond the sale of an identified, limited legal service, such as drafting a will, for a fixed, one-time fee? [Yes] [No]

10. After reading the foregoing form and examining any attachments in their entirety, does the plan owner signing below certify that all statements made in this form and all attachments are true and correct to the best of his or her knowledge? [Yes] [No]

11. Does the plan owner signing below understand that the amendments to this plan may not be implemented until the registration amendment form is registered with the North Carolina State Bar in accordance with 27 N.C.A.C. 1E, §§ .0313 through .0315 of the North Carolina State Bar Regulations for Organizations Practicing Law? [Yes] [No]

_______________________________

Date

_______________________________

Signature of Plan Owner

_______________________________

Typed Name of Plan Owner

.0312 .0316 Revocation of Registration

Whenever it appears that a plan: (1) no longer meets the definition of a prepaid legal services plan; (2) is marketed or operates in a manner that is not consistent with the representations made in the initial or amended registration statement and accompanying documents upon which the State Bar relied in registering the plan registration statement, the registration amendment form, or with the most recent registration renewal form filed with the North Carolina State Bar; (3) is marketed or operates in a manner that would constitutes the unauthorized practice of law; (4) is marketed or operates in a manner that violates state or federal laws or regulations, including the rules and regulations of the North Carolina State Bar; or (5) has failed to pay the annual registration fee, the committee may instruct the secretary of the State Bar to serve upon the plan’s sponsor owner a notice to show cause why the plan’s registration should not be revoked. The notice shall specify the plan’s apparent deficiency and allow the plan’s sponsor owner to file with the secretary a written response within 30 days of service by sending the same to the secretary. If the sponsor plan owner fails to file a timely written response, the secretary shall issue an order revoking the plan’s registration and shall serve the order upon the plan’s sponsor owner. If a timely written response is filed, the secretary shall schedule a hearing, in accordance with Rule .0313 .0317 below, before the Authorized Practice Committee at its next regularly scheduled meeting committee and shall so notify the plan sponsor owner. The secretary may waive such hearing based upon a stipulation by the plan owner and counsel that the plan’s apparent deficiency has been cured. All notices to show cause and orders required to be served herein may shall be served: (1) by certified mail to at the last address last provided for to the State Bar by the plan sponsor on its most current registration statement or owner; (2) in accordance with any other provisions of Rule 4 of the North Carolina Rules of Civil Procedure; and or (3) may be served by a State Bar investigator or by any other person authorized by Rule 4 of the North Carolina Rules of Civil Procedure to serve process. The State Bar will shall not renew the annual registration register the registration renewal form of any plan that has received for which the secretary has issued a notice to show cause under this section, but the plan may continue to operate under the prior registration statement until resolution of the show cause notice by the council.

.0313 .0317 Hearing before the Authorized Practice Committee

At any hearing concerning the registration of a prepaid legal services plan, the committee chair The chair of the Authorized Practice Committee will shall preside to ensure that the hearing is conducted in accordance with these rules at any hearing concerning the registration of a prepaid legal services plan. The committee chair shall cause a record of the proceedings to be made. Strict compliance with the North Carolina Rules of Evidence is not required, but the North Carolina Rules of Evidence may be used to guide the committee in the conduct of an orderly hearing. The plan sponsor may appear and be heard, be represented by counsel, offer witnesses and documents in support of its position and cross-examine any adverse witnesses. The counsel may appear on behalf of the State Bar and be heard, shall represent the State Bar and may offer witnesses and documents documentary evidence, may cross-examine adverse witnesses, and may argue the State Bar’s position. The plan owner may appear and may be represented by counsel, may offer witnesses and documentary evidence, may cross-examine adverse witnesses, and may argue the plan owner’s position. The burden of proof shall be upon the sponsor plan owner to establish that the plan meets the definition of a prepaid legal services plan, that all registration fees have been paid, and that the plan has operated and does operate in a manner consistent with all material applicable law, with these rules, and with all representations made in its then current registration statement, the law, and these rules. If the sponsor plan owner carries meets its burden of proof, the plan’s registration shall be accepted or continued initial registration statement, the registration amendment form, or the registration renewal form in question shall be registered. If the sponsor plan owner fails to carry meet its burden of proof, the committee shall recommend to the council that the plan’s initial registration statement, registration amendment form, or registration renewal form be denied or revoked.

.0314 .0318 Action by the Council

Upon the recommendation of the Authorized Practice cCommittee, the council may enter an order denying or revoking the registration of the a plan. The order shall be effective when entered by the council. A copy of the order shall be served upon the plan’s sponsor owner as prescribed in Rule .0312 .0316 above.

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