Subchapter G. FINANCIAL MATTERS

 (a)  General rule. Enforcement Rule 208(g)(2) provides that expenses taxable by the Board pursuant to §  89.205(b) (relating to informal admonition or private reprimand following formal hearing) shall be prescribed by these rules. See also §  89.209 (relating to expenses of formal proceedings) and §  89.278 (relating to expenses of reinstatement proceedings).

 (b)  Enumeration of expenses. Taxable expenses under these rules shall include, but not be limited to, the following:

   (1)  court reporter fees and transcript costs;

   (2)  the fees and expenses of expert and other witnesses;

   (3)  the cost of serving subpoenas, pleadings and briefs;

   (4)  the charges by banks and other institutions for production of statements, checks and other records in response to subpoenas or otherwise;

   (5)  the cost of reproducing documents introduced or offered as evidence at hearings; and

   (6)  the cost of reproducing pleadings and briefs.

 (c)  Administrative fee. Enforcement Rule 208(g)(3) provides that the expenses taxable under §  89.205(b) (relating to informal admonition or private reprimand following formal hearing) or §  89.209 (relating to expenses of formal proceedings) may include an administrative fee except that an administrative fee shall not be included where the discipline imposed is an informal admonition; and that the administrative fee shall be $250.

 (a)  Action by Board. Enforcement Rule 219(g) and (l) provide that the Board shall:

   (1)  Transmit by certified mail, return receipt requested, to every attorney who fails to pay any expenses taxed pursuant to §  89.205(b) (relating to informal admonition or private reprimand following formal hearing), or §  89.209 (relating to expenses of formal proceedings), addressed to the last known address of the attorney, a notice stating:

     (i)   That unless the attorney shall pay all such expenses within 30 days after the date of the notice, such failure to pay will be deemed a request to be administratively suspended, and at the end of such period the name of the attorney will be certified to the Supreme Court, which will enter an order administratively suspending the attorney;

     (ii)   That upon entry of the order of administrative suspension, the attorney shall comply with Chapter 91 Subchapter E (relating to formerly admitted attorneys).

     A copy of Enforcement Rule 217 (relating to formerly admitted attorneys) shall be enclosed with the notice.

   (2)  Certify to the Supreme Court the name of every attorney who has failed to respond to a notice issued pursuant to paragraph (a)(1) within the 30 day period provided therein.

 (b)  Action by Supreme Court. Enforcement Rule 219(g) provides that upon certification to the Supreme Court of the name of any attorney pursuant to paragraph (a)(2), the Court shall enter an order administratively suspending the attorney; and that the Chief Justice may delegate the processing and entry of orders under this subsection to the Prothonotary.

 (c)  Reinstatement upon payment of taxed costs. Enforcement Rule 219(m) provides that upon payment of all expenses taxed under § §  89.205(b) and 89.209 by a formerly admitted attorney on administrative suspension solely for failure to comply with paragraph (a)(1), the Board shall so certify to the Supreme Court; and that unless such person is subject to another outstanding order of suspension or disbarment or the order has been in effect for more than 3 years, the filing of the certification from the Board with the Prothonotary of the Supreme Court shall operate as an order reinstating the person to active status.

   The provisions of this §  93.112 adopted April 8, 1983, effective April 9, 1983, 13 Pa.B. 1244; amended October 12, 1984, effective October 13, 1984, 14 Pa.B. 3749; amended May 19, 2006, effective May 20, 2006, 36 Pa.B. 2368; amended August 7, 2009, effective immediately, 39 Pa.B. 4725. Immediately preceding text appears at serial pages (333778) and (343827).

EXPENSES GENERALLY

§ 93.121. Expenses.

 (a)  General. Enforcement Rule 401 provides that the salaries of the staff of the Office of the Secretary and of the Office of Disciplinary Counsel, their expenses, administrative costs, and the expenses of the members of the Board and of hearing committees shall be paid by the Board out of the funds collected under the provisions of § §  93.141—93.147 (relating to annual assessment of attorneys).

 (b)  Special masters. Enforcement Rule 205(c)(4) provides that the expenses and compensation of special masters shall be paid as a cost of disciplinary administration and enforcement. See §  93.141(a) (relating to annual assessment).

 The fiscal year of the Board shall commence July 1 of each year.

ANNUAL ASSESSMENT OF ATTORNEYS

§ 93.141. Annual assessment.

 (a)  General rule. Enforcement Rule 219(a) provides that every attorney admitted to practice law in this Commonwealth, shall pay an annual fee under such rule of $140.00; that the annual fee shall be collected under the supervision of the Attorney Registration Office, which shall send and receive, or cause to be sent and received, the notices and forms provided for in this subchapter, and that the fee shall be used to defray the costs of disciplinary administration and enforcement under the Enforcement Rules, and for such other purposes as the Board shall, with the approval of the Supreme Court, from time to time determine.

 (b)  Inapplicable to justices and judges. Enforcement Rule 219(b) provides that justices and judges shall be exempt from the annual fee:

   (1)  Justices or judges serving in the following Pennsylvania courts of record shall be exempt for such time as they serve in office: Supreme, Superior, Commonwealth, Common Pleas, and Philadelphia Municipal; and justices or judges serving an appointment for life on any federal court;

   (2)  retired attorneys; and

   (3)  military attorneys holding a limited certificate of admission issued under Pa.B.A.R. 303 (relating to admission of military attorneys).

   Official Note

   The exemption created by subdivision (b)(1) does not include Philadelphia Traffic Court judges, Pittsburgh Municipal Court judges, magisterial district judges, arraignment court magistrates or administrative law judges.

 (a)  Transmission of form. Enforcement Rule 219(c) provides that on or before May 15 of each year the Attorney Registration Office shall transmit by ordinary mail to all persons required by the rule to pay an annual fee a form required by subsection (b).

 (b)  Filing of annual form. Enforcement Rule 219(d) provides that:

   (1)  On or before July 1 of each year all persons required by the rule to pay an annual fee shall file with the Attorney Registration Office a signed form prescribed by the Attorney Registration Office setting forth:

     (i)   The date on which the attorney was first admitted to practice, licensed as foreign legal consultant, or issued a Limited In-House Corporate Counsel License, and a list of all courts (except courts of this Commonwealth) and jurisdictions in which the person has ever been licensed to practice law, with the current status thereof.

     (ii)   The current residence and office addresses of the attorney, each of which shall be an actual street address or rural route box number, and the Administrative Office shall refuse to accept a statement that sets forth only a post office box number for either required address. A preferred mailing address different from those addresses may also be provided on the statement and may be a post office box number. The attorney shall indicate which of the addresses, the residence, office or mailing address, will be accessible through the website of the Board (http://www.padisciplinaryboard.org/) and by written or oral request to the Board.

     (iii)   The name of each financial institution in which funds of a client are or were held by the attorney on May 1 of the current year or at any time during the preceding 12 months held funds or a third person subject to Rule 1.15 of the Pennsylvania Rules of Professional Conduct. The statement shall include the name and account number for each account in which the lawyer holds such funds, and each IOLTA Account shall be identified as such. The statement provided to a person holding a Limited In-House Corporate Counsel License need not request the information required by this subparagraph.

     (iv)   A certification reading as follows: ‘‘I certify that all Trust Accounts that I maintain are in financial institutions approved by the Supreme Court of Pennsylvania for the maintenance of such accounts pursuant to Pennsylvania Rule of Disciplinary Enforcement 221 (relating to mandatory overdraft notification) and that each Trust Account has been identified as such to the financial institution in which it is maintained.’’

     (v)   A statement that any action brought against the attorney by the Pennsylvania Lawyers Fund for Client Security for the recovery of monies paid by the Fund as a result of claims against the attorney may be brought in the Court of Common Pleas of Allegheny, Dauphin or Philadelphia County.

     (vi)   Such other information as the Administrative Office may from time to time direct.

   (2)  Payment of the annual fee shall accompany the statement. Where a check in payment of the annual fee has been returned to the Board unpaid, the annual fee shall not be deemed to have been paid until a collection fee shall also have been paid. The amount of the collection fee shall be established by the Board annually after giving due regard to the direct and indirect costs incurred by the Board during the preceding year for checks returned to the Board unpaid. On or before July 1 of each year the Office of the Secretary shall publish in the Pennsylvania Bulletin a notice of the collection fee established by the Board for the coming assessment year.

   (3)  Every person who has filed such a statement shall notify the Administrative Office in writing of any change in the information previously submitted within 30 days after such change.

   (4)  Upon original admission to the bar of this Commonwealth, licensure as a foreign legal consultant, or issuance of a Limited In-House Corporate Counsel License, a person shall concurrently file a statement under this subsection for the current assessment year, but no annual fee shall be payable for the assessment year in which originally admitted or licensed.

   Official Note

   The Note to Enforcement Rule 219(d)(1)(ii) explains that public web docket sheets will show the attorney’s address as entered on the court docket.

 Enforcement Rule 219(e) provides that upon receipt of a form or notice of change of information contained therein, filed by an attorney in accordance with the provisions of §  93.142 (relating to filing of annual form by attorneys), and of payment of any required annual fee to practice law in this Commonwealth, receipt thereof shall be acknowledged on a certificate or license.

 (a)  Action by Attorney Registration Office. Enforcement Rule 219(f) and (g) provide that the Attorney Registration Office shall:

   (1)  Transmit by ordinary mail to every attorney who fails to timely file the form and pay the annual fee required by this subchapter, addressed to the last known mailing address of the attorney, a notice stating:

     (i)   That unless the attorney shall comply with the requirements of §  93.142 (relating to filing of annual form by attorneys) within 30 days after the date of the notice, such failure to comply will be deemed a request to be administratively suspended and at the end of such period the name of the attorney will be certified to the Supreme Court, which will enter an order administratively suspending the attorney.

     (ii)   That upon the entry of the order of administrative suspension the attorney shall comply with Chapter 91 Subchapter E (relating to formerly admitted attorneys), and that a copy of Enforcement Rule 217 (relating to formerly admitted attorneys) shall be enclosed with the notice.

   (2)  Certify to the Supreme Court the name of every attorney who has failed to respond to a notice issued pursuant to paragraph (a)(1) within the 30 day period provided therein, and supply a copy of such certification to the Board.

 (b)  Action by the Supreme Court. Enforcement Rule 219(g) provides that upon certification to the Supreme Court of the name of any attorney pursuant to paragraph (a)(2), the Court shall enter an order administratively suspending the attorney; and that the Chief Justice may delegate the processing and entry of orders under this subsection to the Prothonotary.

 (a)  General rule. Enforcement Rule 219(h) provides that the procedure for reinstatement of an attorney who has been administratively suspended for three years or less pursuant to the provisions of §  93.144(b) is as follows:

   (1)  The formerly admitted attorney shall submit to the Attorney Registration Office the form required by §  93.142(b) along with payment of:

     (i)   the current annual fee;

     (ii)   the annual fee that was due in the year in which the attorney was administratively suspended;

     (iii)   the late payment penalty required by paragraph (b) of this section;

     (iv)   a reinstatement fee of $300.00.

   (2)  Upon receipt of the annual fee form, a verified statement showing compliance with Enforcement Rule 217 (relating to formerly admitted attorneys), and the payments required by paragraph (a)(1) of this section, the Attorney Registration Office shall so certify to the Board Secretary and to the Supreme Court; and that unless the formerly admitted attorney is subject to another outstanding order of suspension or disbarment or the order has been in effect for more than three years, the filing of the certification from the Attorney Registration Office with the Prothonotary of the Supreme Court shall operate as an order reinstating the person to active status.

 (b)  Late payment penalty. Enforcement Rule 219(h) (3) provides that a formerly admitted attorney who is administratively suspended pursuant to §  93.142(b) must pay a late payment penalty with respect to that year. The amount of the late payment penalty shall be established by the Board annually after giving due regard to such factors as it considers relevant, including the direct and indirect costs incurred by the Board during the preceding year in processing the records of attorneys who fail to timely file the form required by §  93.142(b). On or before July 1 of each year the Office of the Secretary shall publish in the Pennsylvania Bulletin a notice of the late payment penalty established by the Board for the coming assessment year.

 (a)  Retired Status: Enforcement Rule 219(i) provides that:

   (1)  An attorney who has retired shall file with the Attorney Registration Office Form DB-27 (Application for Retirement).

   (2)  Upon the transmission of the application from the Attorney Registration Office to the Supreme Court, the Court shall enter an order transferring the attorney to retired status, and the attorney shall no longer be eligible to practice law.

   (3)  The retired attorney will be relieved from the payment of the fee specified in §  93.141 (relating to annual assessment).

   (4)  Chapter 91 Subchapter E (relating to formerly admitted attorneys) shall not be applicable to the formerly admitted attorney unless ordered by the Supreme Court in connection with the entry of an order of suspension or disbarment under another provision of the Enforcement Rules.

   (5)  An attorney on retired status for three years or less may be reinstated in the same manner as an inactive attorney, by filing a Form DB-29 (Application for Resumption of Active Status), except that the retired attorney shall pay the annual active fee for the three most recent years or such shorter period in which the attorney was on retired status instead of the amounts required to be paid by an inactive attorney seeking reinstatement.

   (6)  Chief Justice may delegate the processing and entry of orders under this subsection to the Prothonotary.

 (b)  Inactive Status. Enforcement Rule 219(j) provides that:

   (1)  An attorney who is not engaged in practice in Pennsylvania, has sold his or her practice pursuant to Rule 1.17 of the Pennsylvania Rules of Professional Conduct, or is not required by virtue of his or her practice elsewhere to maintain active licensure in the Commonwealth may request voluntary inactive status or continue that status once assumed. The attorney shall file either the annual form required by §  93.142(b) and request voluntary inactive status or file Form DB-28 (Notice of Voluntary Assumption of Inactive Status). The attorney shall be removed from the roll of those classified as active until and unless such person files Form DB-29 (Application for Resumption of Active Status) and is granted reinstatement to the active rolls.

   (2)  An inactive attorney under this subsection (b) shall continue to file the annual form required by §  93.142(b) and shall pay an annual fee of $70.00. Noncompliance with this provision will result in the inactive attorney being placed on administrative suspension after the Attorney Registration Office provides notice in accordance with the provisions of §  93.144. An attorney who voluntarily assumed inactive status under former subsection (a) of this rule shall continue to file the annual form and pay an annual fee of $70.00 commencing with the next regular assessment year. Noncompliance with this paragraph will result in the inactive attorney being placed on administrative suspension after notice in accordance with the provisions of §  93.144(a)(1).

   (3)  Reinstatement shall be granted, unless the inactive attorney is subject to an outstanding order of suspension or disbarment or unless the inactive status has been in effect for more than three years, upon the payment of the active fee for the assessment year in which the Form DB-29 (Application for Resumption of Active Status) is filed or the difference between the active fee and the inactive fee that has been paid for that year, and any arrears accumulated prior to the assumption of inactive status. See §  93.145(b) (relating to late payment penalty).

   (4)  In transmitting the annual fee form under subsection (a) of §  93.142, the Attorney Registration Office shall include a notice of subdivision (j) of Enforcement Rule 219 (relating to request for voluntary inactive status).

   Official Note

   Under prior practice, an attorney who was neither retiring nor selling his or her law practice was given the option of assuming or continuing inactive status and ceasing the practice of law in Pennsylvania, and no annual fee was required. Under new paragraph (b)(2) of this section, payment of an annual fee is required to assume and continue inactive status, and failure to pay the annual fee required by §  93.146(b)(2) and file the form required by §  93.142(b) (relating to filing of annual form by attorneys) will result in an order administratively suspending the attorney.

 Where administrative suspension is ordered under this Subchapter, the attorney shall comply with the requirements of Chapter 91 of Subchapter E (relating to formerly admitted attorneys). Public notice of such administrative suspension shall clearly state that suspension was ordered for failure to file the required annual form and pay the required annual assessment, or for failure to comply with §  93.112 (relating to failure to pay taxed expenses).

 Enforcement Rule 219(k) provides that on the effective date of that Rule, any attorney who is on inactive status: (a) by order after having failed to pay the annual fee or file the form required by subdivisions (a) and (d) of Rule 219,

 (b)  by order pursuant to Rule 111(b), Pa.R.C.L.E., after having failed to satisfy the requirements of the Pennsylvania Rules for Continuing Legal Education,

 (c)  by order after having failed to pay any expenses taxed pursuant to Enforcement Rule 208(g), or

 (d)  by order after having failed to meet the requirements for maintaining a limited law license as a Limited In-House Corporate Counsel, a foreign legal consultant, an attorney participant in defender legal services programs pursuant to Pa.B.A.R. 311, or a military attorney, shall have a grace period of one year, commencing on July 1 of the year in which the next annual form under §  93.142(b) is due, in which to request reinstatement to active status under an applicable provision of Rule 219, or to be reinstated to active status under Rule 218(a), as the case may be. Failure to achieve active status before the expiration of the grace period shall be deemed a request to be administratively suspended. An attorney who is on inactive status by court order will not be eligible to transfer to voluntary inactive status under §  93.146(b) until the attorney first achieves active status. During the grace period, the inactive attorney shall remain ineligible to practice law. In transmitting the annual form under §  93.142(a), the Attorney Registration Office shall include a notice of Enforcement Rule 219(k).

   Official Note

   Attorneys who voluntarily assumed inactive status under former §  93.146(a) are governed by the provisions of §  93.146(b). Attorneys who were transferred to inactive status by order after having failed to pay any expenses taxed pursuant to §  93.112 are governed by the provisions of that section.

   The provisions of this §  93.149 amended August 7, 2009, effective immediately, 39 Pa.B. 4725.