[Federal Register Volume 61, Number 169 (Thursday, August 29, 1996)]
[Rules and Regulations]
[Pages 45755-45757]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21664]


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LEGAL SERVICES CORPORATION
45 CFR Part 1638


Restriction on Solicitation

AGENCY: Legal Services Corporation.

ACTION: Interim rule with request for comments.

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SUMMARY: This interim rule is intended to implement a restriction 
contained in the Legal Services Corporation's (``LSC'' or 
``Corporation'') FY 1996

[[Page 45756]]

appropriations act which prohibits an LSC recipient from representing 
an individual who had not sought legal advice from the recipient but 
whom the recipient advised to seek legal representation or take legal 
action. Although this rule is effective upon publication, the 
Corporation also solicits public comment on the interim rule in 
anticipation of adoption of a final rule at a later time.

DATES: This interim rule is effective on August 29, 1996. Comments must 
be submitted on or before October 28, 1996.

ADDRESSES: Comments should be submitted to the Office of the General 
Counsel, Legal Services Corporation, 750 First St NE., 11th Floor, 
Washington, DC 20002-4250.

FOR FURTHER INFORMATION CONTACT: Victor M. Fortuno, General Counsel, 
(202) 336-8910.

SUPPLEMENTARY INFORMATION: On May 19, 1996, the Operations and 
Regulations Committee (``Committee'') of the LSC Board of Directors' 
(``Board'') requested the LSC staff to prepare an interim rule to 
implement Sec. 504(a)(18), a restriction in the Corporation's FY 1996 
appropriations act, Pub. L. 104-134, 110 Stat. 1321 (1996), which 
prohibits an LSC recipient from representing an individual who had not 
sought legal advice from the recipient but whom the recipient advised 
to seek legal representation or take legal action. The Committee held 
hearings on staff proposals on July 8 and 19 and the Board adopted this 
interim rule on July 20 for publication in the Federal Register. The 
Committee recommended and the Board agreed to publish this rule as an 
interim rule. An interim rule is necessary in order to provide prompt 
and critically necessary guidance to LSC recipients on legislation 
which is already effective and which carries strong penalties for 
noncompliance. Because of the great need for guidance on how to comply 
with substantially revised legislative requirements, prior notice and 
public comment are impracticable, unnecessary, and contrary to the 
public interest. See 5 U.S.C. 553(b)(3)(B) and 553(d)(3). Accordingly, 
this rule is effective upon publication.
    However, the Corporation also solicits public comment for review 
and consideration by the Committee. After receipt of public comment, 
the Committee intends to hold public hearings to discuss the written 
comments and to hear oral comments. It is anticipated that a final rule 
will be issued which will supersede this interim rule.
    A section-by-section discussion of this interim rule is provided 
below.

Section 1638.1  Purpose

    The purpose of this new rule is to ensure that recipients do not 
obtain clients through in-person unsolicited advice to seek legal 
representation or to take legal action.

Section 1638.2  Definitions

    This section defines ``in-person'' to include a face-to-face 
conversation and other personal contacts such as a personal letter or 
telephone call. While the ordinary meaning of ``in-person'' is limited 
to ``face-to-face'' contacts, for the purposes of this part, a personal 
letter or phone call from a recipient or a recipient's employee to an 
individual advising that individual to obtain counsel or take legal 
action would constitute ``in person'' advice.
    ``Unsolicited advice'' is defined as advice to obtain counsel or 
take legal action given by a recipient or employee of a recipient to an 
individual with whom the recipient does not have an attorney-client 
relationship or who did not seek legal advice or assistance from the 
recipient. It does not include advice to obtain counsel or take legal 
action that an individual receives from others such as social workers, 
judges or neighbors.

Section 1638.3  Prohibition

    This section prohibits LSC recipients and their employees from 
representing any individuals to whom they have given in-person 
unsolicited advice. It also prohibits recipients and their employees 
who have given such advice from referring the person receiving the 
advice to another LSC recipient. A recipient may, however, refer a 
person who has received unsolicited advice from one of the recipient's 
employees to a private attorney who takes the case pro bono, but the 
recipient may not count the case toward its private attorney 
involvement requirement as set out in 45 CFR Part 1614.

Section 1638.4  Permissible Activities

    While recipients are prohibited from soliciting clients, there is a 
continuing need for community legal education about laws that affect 
clients and about the service provided by the program. This section 
explicitly notes, therefore, that it is permissible to participate in 
community legal education activities such as outreach activities, 
public service announcements, maintaining an ongoing presence in a 
courthouse to provide advice at the invitation of the court, 
disseminating community legal education publications and giving 
presentations to groups that request it. These activities may include 
descriptions of legal rights and responsibilities, and descriptions of 
the recipient's services as well as ways to access the services. An 
individual who seeks assistance from the recipient after these 
activities may be represented provided that the request did not result 
from in-person unsolicited advice.

Section 1638.5  Recipient Policies

    This section requires that recipients establish written policies to 
implement the requirements of this part.

List of Subjects in 45 CFR Part 1638

    Grant programs-law; Legal services; Solicitation.

    For reasons set forth in the preamble, 45 CFR Chapter XVI is 
amended by adding part 1637 as follows:

45 CFR PART 1638--RESTRICTION ON SOLICITATION

Sec.
1638.1  Purpose.
1638.2  Definitions.
1638.3  Prohibition.
1638.4  Permissible activities.
1638.5  Recipient policies

    .Authority: Sec. 504(a)(18), Pub. L. 104-134, 110 Stat. 1321.


Sec. 1638.1  Purpose.

    This part is designed to ensure that recipients and their employees 
do not solicit clients.


Sec. 1638.2  Definitions.

    (a) In-person means a face-to-face encounter or a personal 
encounter via other means of communication such as a personal letter or 
telephone call.
    (b) Unsolicited advice means advice to obtain counsel or take legal 
action given by a recipient or its employee to an individual who did 
not seek the advice or with whom the recipient does not have an 
attorney-client relationship.


Sec. 1638.3  Prohibition.

    (a) Recipients and their employees are prohibited from representing 
a client as a result of in-person unsolicited advice.
    (b) Recipients and their employees are also prohibited from 
referring to other recipients individuals to whom they have given in-
person unsolicited advice.


Sec. 1638.4  Permissible activities.

    (a) This part does not prohibit recipients or their employees from 
providing information regarding legal rights and responsibilities or 
providing information regarding the recipient's services and intake 
procedures through community legal education activities such as 
outreach, public service

[[Page 45757]]

announcements, maintaining an ongoing presence in a courthouse to 
provide advice at the invitation of the court, disseminating community 
legal education publications, and giving presentations to groups that 
request it.
    (b) A recipient may represent an otherwise eligible individual 
seeking legal assistance from the recipient as a result of information 
provided as described in Sec. 1638.4(a), provided that the request has 
not resulted from in-person unsolicited advice.


Sec. 1638.5  Recipient policies.

    Each recipient shall adopt written policies to implement the 
requirements of this part.

    Dated: August 20, 1996.
Suzanne B. Glasow,
Senior Counsel for Operations & Regulations.
[FR Doc. 96-21664 Filed 8-28-96; 8:45 am]
BILLING CODE 7050-01-P