[Federal Register Volume 89, Number 155 (Monday, August 12, 2024)]
[Rules and Regulations]
[Pages 65550-65552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-17729]


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LEGAL SERVICES CORPORATION

45 CFR Part 1607


Governing Bodies

AGENCY: Legal Services Corporation.

ACTION: Final rule.

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SUMMARY: The Legal Services Corporation's (LSC) FY 2024 appropriation 
enacted on March 9, 2024, included language that lowered the proportion 
of attorneys required to serve on the governing bodies of LSC grant 
recipients from 60% to 33%, and eliminated the requirement that bar 
associations appoint the majority of attorneys. This final rule revises 
LSC's regulation pertaining to recipient governing bodies to be 
consistent with this directive from Congress.

DATES: This final rule is effective on January 1, 2025.

FOR FURTHER INFORMATION CONTACT: Stefanie K. Davis, Deputy General 
Counsel, Legal Services Corporation, 3333 K Street NW, Washington, DC 
20007; (202) 295-1563 (phone), (202) 337-6519 (fax), or [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    The LSC Act of 1974 requires grant recipients to have governing 
bodies composed of at least 60% attorneys. 42 U.S.C. 2996f(c). LSC 
adopted Part 1607 and the 60% requirement in 1976. 41 FR 25899, June 
23, 1976. Subsequently, LSC's fiscal year (FY) 1983 appropriation 
included a requirement that a majority of each recipient's governing 
body be composed of attorneys appointed by state or local bar 
associations, also known as the ``McCollum Amendment.'' Public Law 97-
276, 96 Stat. 1186. LSC revised Part 1607 in 1983 to implement the 
McCollum Amendment. 48 FR 1971, Jan. 17, 1983. The McCollum Amendment 
currently appears in Sec.  502(2)(b)(ii) of LSC's FY 1996 
appropriation, which is incorporated through Sec.  502 of LSC's FY 1998 
appropriation, as referenced in all LSC appropriations from 1998 
through 2024. See, e.g., Public Law 104-134, 110 Stat. 1321; Public Law 
105-119, 111 Stat. 2440; Public Law 118-42.
    LSC's FY 2024 appropriation changed the minimum attorney percentage 
to 33% and eliminated the McCollum Amendment requirement. The 
Administrative Provision of this appropriation reiterates the 
incorporation of prior appropriations' restrictions by reference. It 
also includes language stating that for purposes of applying the board 
composition requirements described in LSC's FY 1998 appropriation, the 
requirements would be satisfied if at least 33% of a grant recipient's 
board were composed of attorneys licensed in the state in which legal 
assistance is to be provided. Finally, it includes language stating 
that the McCollum Amendment does not apply. Public Law 118-42, Div. C, 
Title IV, 141 (2024) .
    LSC proposed to make the following changes to incorporate the 
statutory changes and to reorganize Sec.  1607.3 for ease of reference. 
First, LSC proposed to delete Sec.  1607.3(b)(1) in its entirety and 
replace it with a new paragraph (b)(1) stating that a recipient's 
governing body must be composed of at least 33% attorneys. LSC proposed 
removing the language implementing the McCollum Amendment. LSC also 
proposed to redesignate existing paragraphs (b)(2) and (b)(3) as 
(b)(1)(i) and (b)(1)(ii), respectively.

[[Page 65551]]

    Second, LSC proposed reorganizing the section by relocating the 
categories of governing body members currently located in paragraphs 
(c) and (d) to paragraphs (b)(2) and (b)(3), respectively, and placing 
the processes for appointments into subparagraphs under each category. 
LSC believes that restructuring Sec.  1607.3 in this way will make it 
easier for readers to understand the categories of membership on LSC 
recipients' governing bodies and the considerations recipients use to 
recruit and select members.
    Third, LSC proposed to redesignate paragraphs (f), (g), and (h) as 
(c), (d), and (e).
    Finally, LSC proposed revising paragraph (e) to reflect the 
statutory change and allow recipient staff to recommend candidates to 
their governing bodies. LSC believes this change would empower 
recipient staff to identify and propose clients, attorneys, or other 
community members with relevant expertise for appointment to their 
respective governing bodies.
    On April 2, 2024, the LSC Operations and Regulations Committee 
voted to recommend that the Board authorize LSC to open rulemaking on 
part 1607 and authorize publication of this NPRM in the Federal 
Register for notice and comment. On April 8, 2024, the Board accepted 
the Committee's recommendation and voted to approve publication of this 
NPRM. After consideration of the comments received during the comment 
period, on July 24, 2024, the Committee voted to recommend that the LSC 
Board adopt this final rule and approve its publication in the Federal 
Register. On July 24, 2024, the Board voted to adopt and publish this 
final rule.
    Materials regarding this rulemaking are available in the open 
rulemaking section of LSC's website at http://www.lsc.gov/about-lsc/laws-regulations-guidance/rulemaking. After the effective date of the 
rule, those materials will appear in the closed rulemaking section at 
http://www.lsc.gov/about-lsc/laws-regulations-guidance/rulemaking/closed-rulemaking.

II. Comments

    LSC received two comments during the public comment period. 
Comments were received from the National Legal Aid and Defender 
Association (NLADA) and Neighborhood Legal Services of Los Angeles 
County (NLSLA), an LSC grantee. Both comments supported LSC's proposed 
changes. NLSLA fully supported LSC's changes to Sec.  1607.3(b)(1) due 
to the ``increased capacity to identify candidates that have useful 
experiences'' that are beneficial and effective to the boards of grant 
recipients. NLSLA also agreed with LSC's removal of the McCollum 
Amendment to allow ``programs to use their discretion to select 
potential attorney members or designate other organizations to propose 
candidates.''
    NLADA stated that it believed the proposed rule change allows for 
``talented individuals to join governing bodies, contributing new and 
important experience, skills, and perspectives.'' NLADA further 
supported the rule change because it will ``improve the quality of the 
attorneys that serve on the governing bodies of LSC grantees.''
    LSC is making two technical changes that do not affect the 
substance of the final rule. First, at its April 2, 2024, meeting, a 
member of the Committee recommended reorganizing paragraph (b)(3) for 
consistency with paragraphs (b)(1) and (b)(2). LSC has made this 
technical change to the rule text. Additionally, in paragraphs 
(b)(1)(i) and (e)(1), LSC is replacing the term ``the poor'' with 
``low-income populations'' based on the recommendation of a member of 
LSC's Board of Directors. The term ``low-income populations'' is also 
more consistent with LSC's use of the Income Eligibility Guidelines. 
LSC is otherwise adopting this rule as proposed.

List of Subjects in 45 CFR Part 1607

    Grant program--law, Legal services.

    For the reasons discussed in the preamble, the Legal Services 
Corporation amends 45 CFR part 1607 as follows:

PART 1607--GOVERNING BODIES

0
1. The authority citation for part 1607 is revised to read as follows:

    Authority:  42 U.S.C. 2996g(e).


0
2. Amend Sec.  1607.3 by revising paragraphs (b) through (e) to read as 
follows.


Sec.  1607.3   Composition.

* * * * *
    (b) A recipient's governing body must be composed of:
    (1) At least 33% attorneys;
    (i) Attorney members may be selected by the recipient's governing 
body or may be selected by other organizations designated by the 
recipient which have an interest in the delivery of legal services to 
low-income populations.
    (ii) Selections shall be made to ensure that the attorney members 
reasonably reflect the diversity of the legal community and the 
population of the areas served by the recipient, including race, 
ethnicity, gender, and other similar factors.
    (2) At least one-third eligible client members who are eligible 
client members when initially selected by the recipient.
    (i) Recipients must solicit recommendations for eligible client 
members from a variety of appropriate groups designated by the 
recipient that may include, but are not limited to, client and 
neighborhood associations and community-based organizations that 
advocate for or deliver services or resources to the client community 
served by the recipient.
    (ii) Recipients should solicit recommendations from groups in a 
manner that reflects, to the extent possible, the variety of interests 
within the client community, and eligible client members should be 
selected so that they reasonably reflect the diversity of the eligible 
client population served by the recipient, including race, gender, 
ethnicity, and other similar factors.
    (3) Other members selected by the recipients' governing body or in 
another manner described in the recipient's bylaws or policies.
    (i) Recipients must appoint or select members so that the governing 
body as a whole reasonably reflects the diversity of the areas served 
by the recipient, including race, ethnicity, gender, and other similar 
factors.
    (ii) Recipients should consider recruiting and selecting members 
possessing fiscal or nonprofit governance expertise or other skills 
necessary to effectively govern the recipient's operations.
    (iii) Members of a governing body shall not be dominated by persons 
serving as the representatives of a single association, group or 
organization, except that eligible client members may be selected from 
client organizations that are composed of coalitions of numerous 
smaller or regionally based client groups.
    (c) Members of a governing body may be selected by appointment, 
election, or other means consistent with this part and with the 
recipient's bylaws and applicable State law.
    (d) Recipients shall make reasonable and good faith efforts to 
ensure that governing body vacancies are filled as promptly as 
possible.
    (e) Recipient staff may recommend candidates for governing body 
membership to its governing body and other appointing groups and should 
consult with the appointing organizations to ensure that:
    (1) Appointees meet the criteria for board membership set out in 
this part, including financial eligibility for persons appointed as 
eligible clients, bar admittance requirements for

[[Page 65552]]

attorney board members, and the general requirements that all members 
be supportive of the purposes of the Act and have an interest in and 
knowledge of the delivery of legal services to low-income populations;
    (2) The particular categories of board membership and the board as 
a whole meet the diversity requirement described in paragraphs 
(b)(1)(ii), (b)(2)(ii), and (b)(3)(ii) of this section;
    (3) Appointees do not have actual and significant individual or 
institutional conflicts of interest with the recipient or the 
recipient's client community that could reasonably be expected to 
influence their ability to exercise independent judgement as members of 
the recipient's governing body.
* * * * *

    Dated: August 6, 2024.
Stefanie Davis,
Deputy General Counsel, Legal Services Corporation.
[FR Doc. 2024-17729 Filed 8-9-24; 8:45 am]
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