I

103D CONGRESS

2D SESSION H. R. 4508

To authorize appropriations for the Legal Services Corporation and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 26, 1994

Mr. BRYANT introduced the following bill; which was referred to the

Committee on the Judiciary

A BILL

To authorize appropriations for the Legal Services

Corporation and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE, REFERENCE, AND TABLE OF

4 CONTENTS.

5 (a) SHORT TITLE.—This Act may be cited as the

6 ‘‘Legal Services Reauthorization Act of 1994’’.

7 (b) REFERENCE.—Except as otherwise expressly pro8 vided, whenever in this Act an amendment or repeal is

9 expressed in terms of an amendment or repeal of a section

10 or other provision, the reference shall be considered to be
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1 made to a section or other provision of the Legal Services

2 Corporation Act (42 U.S.C. 2996 and following).

3 (c) TABLE OF CONTENTS.—The table of contents is

4 as follows:

Sec. 1. Short title, reference, and table of contents.

Sec. 2. Findings.

Sec. 3. Authorization of appropriations.

Sec. 4. Protection against theft and fraud.

Sec. 5. Prohibitions on lobbying.

Sec. 6. Enforcement.

Sec. 7. Monitoring and independent evaluation.

Sec. 8. Class actions.

Sec. 9. Negotiation requirement.

Sec. 10. Restrictions on use of funds for legal assistance to aliens.

Sec. 11. Governing bodies of recipients.

Sec. 12. Professional responsibilities.

Sec. 13. Solicitation.

Sec. 14. Certain eviction proceedings.

Sec. 15. Procedural safeguards for litigation.

Sec. 16. Competition study.

Sec. 17. Fee-generating case provisions.

Sec. 18. Miscellaneous restrictions.

Sec. 19. Recordkeeping and noncorporation funds.

Sec. 20. Evasion.

Sec. 21. Attorneys’ fees provisions.

Sec. 22. Corporation Board composition and control over policy.

Sec. 23. Reprogramming provisions.

Sec. 24. Grants.

Sec. 25. Establishment of local priorities.

Sec. 26. Staff attorneys.

Sec. 27. Studies.

5 SEC. 2. FINDINGS.

6 Section 1001 (42 U.S.C. 2996) is amended to read

7 as follows:

8 ‘‘FINDINGS

9 ‘‘SEC. 1001. The Congress finds that—

10 ‘‘(1) there is a need to provide equal access to

11 the system of justice in our Nation for those who are

12 unable to afford adequate legal counsel to pursue
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1 and resolve their grievances and protect their legal

2 rights and interests;

3 ‘‘(2) funds made available pursuant to this title

4 have made it possible for millions of individuals, who

5 would otherwise be unable to afford legal counsel, to

6 receive high quality, efficient, and effective legal rep7 resentation;

8 ‘‘(3) the present legal services program should

9 be maintained and its resources expanded to serve

10 the unmet legal needs of indigent clients;

11 ‘‘(4) local control by recipients of assistance

12 under this title over policy, resource allocation, and

13 case selection has enabled the legal services program

14 to meet the priority needs of clients in the commu15 nities served;

16 ‘‘(5) providing legal assistance to those who

17 face an economic barrier to adequate legal counsel

18 will serve best the ends of justice and assist in im19 proving opportunities for low-income persons consist20 ent with the purposes of this title;

21 ‘‘(6) for many of our citizens, the availability of

22 legal services has reaffirmed faith in our government

23 of laws;
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1 ‘‘(7) to preserve its strength, the legal services

2 program must be kept free from the influence of or

3 use by it of political pressures; and

4 ‘‘(8) attorneys providing legal assistance must

5 have full freedom to protect the best interests of

6 their clients in keeping with the rule of ethics and

7 professional responsibility that apply in the jurisdic8 tion where the legal assistance is provided and the

9 highest standards of the legal profession.’’.

10 SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

11 Section 1010(a) (42 U.S.C. 2996i(a)) is amended by

12 striking the first three sentences and inserting the follow13 ing: ‘‘There are authorized to be appropriated for the pur14 pose of carrying out the activities of the Corporation such

15 sums as may be necessary for each of fiscal years 1995,

16 1996, 1997, 1998, and 1999.’’.

17 SEC. 4. PROTECTION AGAINST THEFT AND FRAUD.

18 Section 1005 (42 U.S.C. 2996d) is amended by add19 ing at the end the following:

20 ‘‘(h) For purposes of sections 286, 287, 641, 1001,

21 and 1002 of title 18, United States Code, the Corporation

22 shall be considered to be a department or agency of the

23 United States Government.

24 ‘‘(i) For purposes of sections 3729 through 3733 of

25 title 31, United States Code, the term ‘United States Gov-
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1 ernment’ shall include the Corporation, except that actions

2 that are authorized by section 3730(b) of such title to be

3 brought by persons may not be brought against the Cor4 poration or any recipient or employee thereof.

5 ‘‘(j) For purposes of section 1516 of title 18, United

6 States Code—

7 ‘‘(1) the term ‘Federal auditor’ shall include

8 any auditor employed or retained on a contractual

9 basis by the Corporation,

10 ‘‘(2) the term ‘contract’ shall include any grant

11 or contract made by the Corporation, and

12 ‘‘(3) the term ‘person’, as used in subsection

13 (a) of such section, shall include any recipient receiv14 ing financial assistance under section 1006(a)(1) or

15 1006(a)(3).

16 ‘‘(k) Funds provided by the Corporation under sec17 tion 1006 shall be deemed to be Federal appropriations

18 for the purpose of all Federal criminal laws when used

19 by a recipient.

20 ‘‘(l) For purposes of section 666 of title 18, United

21 States Code, funds provided by the Corporation shall be

22 deemed to be benefits under a Federal program involving

23 a grant or contract.
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1 ‘‘(m) The Corporation shall make available to the ap2 propriate legal authority any evidence of criminal conduct

3 by a recipient or an employee of a recipient.’’.

4 SEC. 5. PROHIBITIONS ON LOBBYING.

5 Section 1007(a) (42 U.S.C. 2996f(a)) is amended by

6 amending paragraph (5) to read as follows:

7 ‘‘(5) ensure that no funds made available by the

8 Corporation to any recipient are used to pay for any

9 personal service, advertisement, telegram, telephone

10 communication, letter, printed or written matter, or

11 other device, or to pay for any publicity or propa12 ganda, intended or designed—

13 ‘‘(A) to influence any decision by a Fed14 eral, State, or local agency, except when legal

15 assistance is provided by an employee of a re16 cipient of the Corporation to an eligible client

17 on a particular application, claim, case, or other

18 matter, which directly involves the client’s legal

19 rights or responsibilities, or

20 ‘‘(B) to influence any Member of Congress

21 or any other Federal, State, or local elected of22 ficial to favor or oppose any Act, bill, resolu23 tion, or similar legislation, or any referendum,

24 initiative, constitutional amendment, or any

25 similar procedure of the Congress, any State
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1 legislature, any local council, or any similar

2 governing body,

3 except that this paragraph does not preclude funds

4 made available to a recipient from being used in con5 nection with—

6 ‘‘(i) any communication made in response

7 to any Federal, State, or local agency or elected

8 official,

9 ‘‘(ii) any communication to a Federal,

10 State, or local elected or agency official pertain11 ing to the authorization or appropriation of

12 funds or any other measure affecting the au13 thority, functions, or funding of the recipient or

14 the Corporation or pertaining to oversight

15 measures directly affecting the recipient if the

16 project director (or project director’s designee)

17 has expressly determined that the legislative

18 body involved is considering such authorization,

19 appropriation, or other measure or is conduct20 ing oversight of the recipient or the Corpora21 tion, or

22 ‘‘(iii) any communication on behalf of an

23 eligible client in the course of representation of

24 that client before a legislative body, if the

25 project director or designee of the recipient has
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1 expressly approved such representation in ac2 cordance with policy established by the govern3 ing or policy body of the recipient and such

4 project director or designee has determined, be5 fore approving the undertaking of such rep6 resentation, that—

7 ‘‘(I) the client seeks representation to

8 protect the client’s existing legal rights or

9 interests or is in need of relief which can

10 be provided by the legislative body in11 volved, and

12 ‘‘(II) documentation specifically au13 thorizing such representation has been se14 cured from the eligible client by a recipi15 ent,

16 but nothing in this paragraph shall be construed to

17 permit the use of such funds to engage in commu18 nication which is intended or designed to encourage

19 the general public to support or oppose legislation

20 pending before the Congress or State or local legisla21 tive bodies or any decision by a Federal, State, or

22 local agency or to solicit a client, in violation of pro23 fessional responsibilities, for the purpose of making

24 possible any activity permitted by this paragraph;’’.
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1 SEC. 6. ENFORCEMENT.

2 (a) ENFORCEMENT.—Subparagraph (A) of section

3 1006(b)(1) (42 U.S.C. 2996e(b)(1)) is amended to read

4 as follows:

5 ‘‘(A)(i) The Corporation shall have the authority to

6 ensure the compliance of recipients and their respective

7 employees with this title. The Corporation may issue rules,

8 regulations, guidelines, and instructions to interpret the

9 provisions of this title, but may not impose, by regulation

10 or otherwise, restrictions or limitations on types of cases

11 or forms of representation of clients unless such restric12 tions or limitations are explicitly authorized by this title

13 or other applicable law, and may not impose, by regulation

14 or otherwise, restrictions or requirements on such recipi15 ents that are inconsistent with this title and other applica16 ble law.

17 ‘‘(ii) If the Corporation receives information that a

18 recipient has violated this title or the rules, regulations,

19 guidelines, instructions, grant conditions, or assurances is20 sued under this title, the Corporation shall commence an

21 investigation, resolve the allegations without further inves22 tigation, or reject the complaint as groundless. Except in

23 cases where it is alleged that a recipient or an employee

24 of a recipient has violated criminal law, the Corporation

25 shall notify the recipient of the allegations and the Cor26 poration’s planned action. Such notification shall include
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1 a description of the factual allegations, a copy of any writ2 ten materials submitted by the person making the allega3 tions, and a designation of the provisions of this title or

4 the rules, regulations, guidelines, instructions, grant con5 ditions, or assurances issued under this title that are al6 leged to have been violated. If the Corporation has deter7 mined that an investigation is warranted, the Corporation

8 shall provide the recipient a reasonable opportunity to re9 spond in writing to the allegations before commencing a

10 formal investigation. The Corporation shall complete such

11 investigation in a timely manner and shall inform the re12 cipient of the final determination with respect to such in13 vestigation. Unless required by law, the Corporation shall

14 not make the findings of its investigation public until a

15 final report is issued or unless such disclosure is made

16 with the consent of such recipient. If, at the conclusion

17 of the investigation, the Corporation determines that it

18 will take action under paragraph (5) of this subsection,

19 it shall notify the recipient of its right to request a hear20 ing.’’.

21 (b) REGULATIONS FOR ENFORCEMENT.—Paragraph

22 (5) of section 1006(b) (42 U.S.C. 2996e(b)) is amended

23 to read as follows:

24 ‘‘(5)(A) The Board shall issue regulations to provide

25 for the enforcement of this title. Such regulations may in-
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1 clude, among available remedies, provisions for the imme2 diate suspension of financial assistance under this title,

3 suspension or termination of an employee of the Corpora4 tion or of any employee of a recipient by such recipient,

5 the reduction or termination of such financial assistance,

6 and denial of an application for refunding. Any such em7 ployee may be terminated only after consideration of other

8 remedial measures and only after the employee has been

9 afforded reasonable notice and opportunity for a timely,

10 full, and fair hearing. When requested, such hearing shall

11 be conducted by an independent hearing examiner. Unless

12 the Corporation seeks to deny an application for refunding

13 under subparagraph (B), the Corporation may suspend,

14 reduce, or terminate financial assistance under this title

15 or deny an application for refunding under this title

16 only—

17 ‘‘(i) when there has been a substantial failure

18 to comply with the provisions of—

19 ‘‘(I) this title,

20 ‘‘(II) rules, regulations, guidelines, or in21 structions issued under this title, or

22 ‘‘(III) other laws,

23 which failure continues after notice and an oppor24 tunity to correct such failure has been provided to

25 the recipient, or
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1 ‘‘(ii) when independent evaluations demonstrate

2 that a recipient has consistently failed to use its re3 sources to provide economical and effective legal as4 sistance of high quality as measured by generally ac5 cepted professional standards which failure contin6 ues after notice and an opportunity to correct such

7 failure has been provided to such recipient.

8 ‘‘(B) The Corporation may deny an application for

9 refunding of a recipient when, based on independent eval10 uation, the Corporation has identified an applicant for fi11 nancial assistance under this title that is better able to

12 provide high quality, economical, and effective legal assist13 ance. Such evaluation shall be based on criteria developed

14 pursuant to section 1007(d)(5).

15 ‘‘(C) Financial assistance under this title may not be

16 terminated or suspended, an application for refunding

17 under this title may not be denied, and the annual level

18 of financial assistance under this title may not be reduced

19 by more than 5 percent or $20,000, whichever is less, un20 less the recipient has been afforded reasonable notice, an

21 adequate opportunity to respond to the allegations con22 cerning failures and, if requested by the recipient, a timely

23 and fair hearing before an independent hearing examiner

24 pursuant to regulations issued by the Corporation. Such

25 regulations shall provide for commencement of the hearing
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1 before an independent hearing examiner at the earliest ap2 propriate date. As soon as practical after the hearing, the

3 independent hearing examiner shall make a recommended

4 decision on the matter. A copy of the recommended deci5 sion shall be sent to the Corporation and the recipient.

6 If neither the Corporation nor the recipient requests re7 view by the president of the Corporation of that rec8 ommended decision, the decision shall become final. If ei9 ther party does request a review of a recommended deci10 sion, the president of the Corporation shall make a final

11 decision with respect to that recommended decision. In ad12 dition to other remedies provided by law, the recipient may

13 appeal the final decision to the Board.’’.

14 (c) STATE ADVISORY COUNCILS.—Section 1004 (42

15 U.S.C. 2996c) is amended by striking subsection (f) and

16 redesignating subsections (g) and (h) as subsections (f)

17 and (g), respectively.

18 (d) TECHNICAL AMENDMENTS.—

19 (1) SECTION 1006(b)(2).—Section 1006(b)(2)

20 (42 U.S.C. 2996e(b)(2)) is amended by striking

21 ‘‘provisions of section 1011’’ and inserting ‘‘regula22 tions issued under paragraph (5) of this subsection’’.

23 (2) SECTION 1006(b).—Section 1006(b) (42

24 U.S.C. 2996e(b)) is amended by adding at the end

25 the following:
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1 ‘‘(7) The Corporation shall ensure that—

2 ‘‘(A) no employee of the Corporation or any re3 cipient or other grantee or contractor of the Cor4 poration (except as permitted by law in connection

5 with such employee’s own employment situation),

6 while carrying out legal assistance activities sup7 ported under this title, engages in, or encourages

8 others to engage in, any public demonstration or

9 picketing, boycott, or strike; and

10 ‘‘(B) no such employee, at any time, engages in,

11 or encourages others to engage in—

12 ‘‘(i) any rioting or civil disturbance,

13 ‘‘(ii) any activity which is determined by a

14 court of competent jurisdiction to be in viola15 tion of an outstanding injunction,

16 ‘‘(iii) any other illegal activity, or

17 ‘‘(iv) any intentional identification of the

18 Corporation or any recipient or other grantee or

19 contractor of the Corporation with any political

20 activity prohibited by section 1007(a)(6).’’.

21 (3) SECTION 1007.—Section 1007(a)(9) (42

22 U.S.C. 2996f(a)(9)) is amended by striking ‘‘1011’’

23 and inserting ‘‘1006(b)(5)’’.

24 (4) SECTION 1011.—Section 1011 (42 U.S.C.

25 2996j) is repealed and sections 1012, 1013, and
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1 1014 (42 U.S.C. 2996k, 2996l, 2996nt) are redesig2 nated as sections 1011, 1012, and 1013, respec3 tively.

4 SEC. 7. MONITORING AND INDEPENDENT EVALUATION.

5 Section 1007(d) (42 U.S.C. 2996f(d)) is amended to

6 read as follows:

7 ‘‘(d)(1) The Corporation shall monitor recipients to

8 ensure that the provisions of this title, the rules, regula9 tions, guidelines, and instructions issued under this title,

10 and other laws are carried out by such recipients.

11 ‘‘(2) The Corporation shall provide for independent

12 evaluations to determine whether such recipients are pro13 viding economical and effective legal assistance of high

14 quality to eligible clients and to assist them in providing

15 such assistance. Evaluations shall be carried out primarily

16 by persons who are experienced in the delivery of legal

17 services to the poor and are knowledgeable about the types

18 of matters to which the recipient to be evaluated devotes

19 its resources and shall be carried out primarily by persons

20 who are not employees of the Corporation.

21 ‘‘(3) The Corporation shall adopt standards and pro22 cedures to implement the provisions of section

23 1006(b)(1)(A) and this subsection as regulations under

24 section 1008(e). The standards and procedures adopted

25 shall—
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1 ‘‘(A) take into account that each recipient has

2 both the right and the responsibility to manage its

3 day-to-day operations and to assure that its employ4 ees comply with all applicable law and deliver high

5 quality legal assistance in an effective and economi6 cal manner,

7 ‘‘(B) protect the personal privacy of eligible cli8 ents,

9 ‘‘(C) be consistent with the rules of ethics and

10 professional responsibility that are applicable in the

11 jurisdiction where a recipient delivers legal assist12 ance, and

13 ‘‘(D) protect matters and documents that are

14 personal or private and related to an individual em15 ployee from examination by the Corporation except

16 to the extent that such records can be expected to

17 contain information directly pertinent and necessary

18 to an audit or to an investigation of—

19 ‘‘(i) a likely pattern of discrimination,

20 ‘‘(ii) lack of compliance with the law, the

21 provisions of this title, or the rules, regulations,

22 guidelines, or instructions issued by the Cor23 poration, or

24 ‘‘(iii) or poor performance by a recipient,

25 which is indicated by other external evidence.
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1 ‘‘(4) The Corporation shall ensure that the monitor2 ing process is fair and conducted in a manner that does

3 not cause more than a necessary disruption to the provi4 sion of legal services provided by the recipient being mon5 itored and provides—

6 ‘‘(A) sufficient notice before monitoring is con7 ducted,

8 ‘‘(B) flexibility to negotiate with the Corpora9 tion when disagreements arise over the timing and

10 conduct of monitoring,

11 ‘‘(C) reasonable opportunity to respond and

12 comment on draft reports on monitoring,

13 ‘‘(D) protection from disclosure to third parties

14 of the results of monitoring and the contents of any

15 draft reports on monitoring before a final report on

16 the monitoring is issued, and

17 ‘‘(E) protection from disclosure to third parties

18 of any documents obtained during monitoring except

19 to the extent necessary to carry out the monitoring,

20 consistent with the laws and the rules of ethics and

21 professional responsibility applicable to the jurisdic22 tion where such documents are maintained, except

23 that the Corporation shall at all times have the au24 thority to make evidence of criminal conduct avail25 able to the appropriate legal authority.
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1 The Corporation shall ensure that the monitoring process

2 is reasonably related to the purposes which the monitoring

3 is intended to accomplish.

4 ‘‘(5) The Corporation, in cooperation with recipients

5 and other appropriate groups, shall develop comprehensive

6 criteria for use in evaluating the capability and perform7 ance of recipients, including the assessment of—

8 ‘‘(A) the extent to which any such recipient pro9 vides a comprehensive range of legal assistance to el10 igible clients, including, in the case of support enti11 ties, a comprehensive range of appropriate support

12 services;

13 ‘‘(B) the extent that any such recipient has suc14 ceeded in providing effective, economical, and high

15 quality legal services to eligible clients and is able to

16 use and develop additional resources, including pro

17 bono services from the private bar; and

18 ‘‘(C) the ability of any such recipient to deter19 mine and address the most pressing legal problems

20 and needs of eligible clients.

21 ‘‘(6) Notwithstanding the preceding provisions of this

22 subsection, the Inspector General of the Corporation shall

23 not, in carrying out the Inspector General’s functions, be

24 subject to any restriction that—
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1 ‘‘(A) is contained in the standards and proce2 dures adopted by the Corporation under this sub3 section; and

4 ‘‘(B) limits access by the Corporation to docu5 ments or other information.’’.

6 SEC. 8. CLASS ACTIONS.

7 Section 1006(d)(5) (42 U.S.C. 2996e(d)(5)) is

8 amended—

9 (1) by striking ‘‘No’’ and inserting ‘‘(A) Subject

10 to subparagraph (B), no’’; and

11 (2) by adding at the end the following:

12 ‘‘(B) No recipient or employee of any such recipient

13 may bring a class action suit against the Federal Govern14 ment or any State or local government unless—

15 ‘‘(i) the project director of the recipient has ex16 pressly approved the filing of such an action in ac17 cordance with policies established by the governing

18 or policy body of the recipient;

19 ‘‘(ii) the class relief which is the subject of such

20 an action would significantly benefit individuals who

21 are eligible for legal assistance under this title; and

22 ‘‘(iii) before filing such an action, the project

23 director of the recipient determines that the govern24 ment entity is not likely to change the policy or

25 practice in question, that the policy or practice will
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1 continue to adversely affect eligible clients, that the

2 recipient has given notice of its intention to seek

3 class relief, and that responsible efforts to resolve

4 without litigation the adverse effects of the policy or

5 practice have not been successful or would be ad6 verse to the interest of the clients.’’.

7 SEC. 9. NEGOTIATION REQUIREMENT.

8 Section 1007(a) (42 U.S.C. 2996f(a)) is amended—

9 (1) in paragraph (9) by striking ‘‘and’’ after

10 the semicolon; and by striking the period at the end

11 of paragraph (10) and inserting ‘‘; and’’; and

12 (2) by adding at the end the following:

13 ‘‘(11) require recipients to adopt policies, con14 sistent with the rules of ethics and professional re15 sponsibility that apply in the jurisdiction in which

16 legal assistance is to be provided, which encourage

17 employees of the recipients to attempt to negotiate

18 settlements and to use alternative dispute resolution

19 mechanisms, where appropriate and available, before

20 filing suit, except that nothing in this paragraph

21 shall be construed to permit the Corporation—

22 ‘‘(A) to require policies which restrict rep23 resentation of clients to matters where the cli24 ents agree to such negotiation or use of alter25 native dispute resolution mechanisms; or
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1 ‘‘(B) to preclude an attorney from filing

2 suit where the attorney’s professional respon3 sibility to the client requires that litigation be

4 commenced without notice to or negotiations

5 with the opposing parties.’’.

6 SEC. 10. RESTRICTIONS ON USE OF FUNDS FOR LEGAL AS7 SISTANCE TO ALIENS.

8 Section 1007 (42 U.S.C. 2996f) is amended by add9 ing at the end the following:

10 ‘‘(i) No funds appropriated to the Corporation may

11 be used to provide legal assistance for or on behalf of any

12 alien unless the alien is present in the United States and

13 is—

14 ‘‘(1) an alien lawfully admitted for permanent

15 residence as defined in section 101(a)(20) of the Im16 migration and Nationality Act (8 U.S.C.

17 1101(a)(20)), including aliens who acquire the sta18 tus of lawful permanent resident aliens under the

19 provisions of section 216 or 245A of that Act (8

20 U.S.C. 1186a, 1255a);

21 ‘‘(2) an alien who is either married to a United

22 States citizen or is a parent or an unmarried child

23 under 21 years of age of such citizen and who has

24 filed an application to adjust status to lawful perma25 nent resident under the Immigration and Nationality
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1 Act, and such application has not been finally adju2 dicated;

3 ‘‘(3)(A) an alien who is lawfully present in the

4 United States pursuant to an admission under sec5 tion 207 of the Immigration and Nationality Act (8

6 U.S.C. 1157), who has been granted suspension of

7 deportation under section 244 of the Immigration

8 and Nationality Act, or who has been granted asy9 lum by the Attorney General under such Act; or

10 ‘‘(B) an alien who is lawfully present in the

11 United States as a result of being granted condi12 tional entry pursuant to section 203(a)(7) of the Im13 migration and Nationality Act before April 1, 1980,

14 because of persecution or fear of persecution on ac15 count of race, religion, or political opinion or be16 cause of being uprooted by catastrophic natural ca17 lamity;

18 ‘‘(4) an alien who is lawfully present in the

19 United States as a result of the Attorney General’s

20 withholding of deportation pursuant to section

21 243(h) of the Immigration and Nationality Act (8

22 U.S.C. 1253(h));

23 ‘‘(5) an alien who is authorized to work in the

24 United States by the Immigration and Naturaliza25 tion Service;
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1 ‘‘(6) an alien who has been provided a record

2 of permanent residence under section 249 of the Im3 migration and Nationality Act;

4 ‘‘(7) an alien who is an eligible immigrant (as

5 defined in section 301(b)(1) of the Immigration Act

6 of 1990), was physically present in the United

7 States on May 5, 1988, and is seeking admission as

8 an immediate relative under the Immigration and

9 Nationality Act or under section 203(a)(2) of such

10 Act (including under section 112 of the Immigration

11 Act of 1990) or is seeking (or is being provided)

12 benefits under section 301(a) of the Immigration

13 Act of 1990; or

14 ‘‘(8) an alien who is eligible for medical assist15 ance under title XIX of the Social Security Act, if

16 the legal assistance to be provided is needed in order

17 to help obtain such medical assistance.’’.

18 SEC. 11. GOVERNING BODIES OF RECIPIENTS.

19 Subsection (c) of section 1007 (42 U.S.C. 2996f) is

20 amended to read as follows:

21 ‘‘(c)(1) In making grants or entering into contracts

22 for legal assistance, the Corporation shall ensure that—

23 ‘‘(A) any recipient (other than a recipient de24 fined in section 1002(6)(B)) which has as one of its
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1 purposes the provision of legal assistance to eligible

2 clients is governed by a body—

3 ‘‘(i) the majority of which is comprised of

4 attorneys who are appointed by the governing

5 bodies of State, county, or local bar associations

6 the memberships of which together represent a

7 majority of the attorneys practicing law in the

8 locality or localities in which the recipient is to

9 provide legal assistance or, in the case of pro10 grams providing service in more than one State,

11 in the State or locality in which the principal

12 office of the recipient is located;

13 ‘‘(ii) at least 60 percent of which consists

14 of attorneys who are members of the bar of a

15 State in which the legal assistance is to be pro16 vided; and

17 ‘‘(iii) at least one-third of which consists of

18 persons who are, when selected, eligible clients

19 who may also be representatives of associations

20 or organizations of eligible clients; and

21 ‘‘(B) any other recipient is governed by a body

22 that meets the requirements of subparagraph (A) or

23 has established a policy body, whose membership is

24 selected consistent with such requirements, to estab-
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1 lish policy with respect to the administration of any

2 grant or contract under this title.

3 Any attorney serving on a governing body or policy body

4 of a recipient described in this paragraph may not, while

5 so serving, receive compensation from the recipient on

6 whose board the attorney sits. Subparagraph (A)(i) shall

7 not be construed to prevent the governing body of a bar

8 association from appointing members of the governing or

9 policy bodies of more than one recipient.

10 ‘‘(2) The Corporation—

11 ‘‘(A) shall, upon application, grant waivers of

12 the requirements of clauses (i) and (ii) of paragraph

13 (1)(A) for a legal services program, supported under

14 section 222(a)(3) of the Economic Opportunity Act

15 of 1964, which on the date of the enactment of this

16 title has a majority of persons who are not attorneys

17 on its policymaking board;

18 ‘‘(B) may grant, pursuant to regulations issued

19 by the Corporation, a waiver of the requirements of

20 clauses (i) and (ii) of paragraph (1)(A) for recipients

21 which, because of the nature or size of the popu22 lation, legal community, or area they serve, are un23 able to comply with such requirements; and

24 ‘‘(C) may, upon application, grant waivers of

25 clause (iii) of paragraph (1)(A) for a recipient which
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1 the Corporation has determined does not have as a

2 primary purpose the provision of legal assistance to

3 clients eligible for assistance under this title.

4 As a condition for a grant of a waiver under subparagraph

5 (C), the Corporation may require the recipient to establish

6 a policy body whose membership is selected consistent with

7 the requirements of subparagraph (A) of paragraph (1)

8 with respect to the administration of any grant or contract

9 under this title.

10 ‘‘(3) Consistent with the provisions of this title, the

11 rules, regulations, guidelines, and instructions issued

12 under this title, and any other laws, each recipient, pursu13 ant to the direction and control of its governing or policy

14 body, and not the Corporation, shall determine all broad

15 policies concerning its provision of legal assistance and

16 other activities of the recipient, including—

17 ‘‘(A) financial eligibility criteria of clients rep18 resented, consistent with the guidelines established

19 pursuant to section 1007(a)(2)(B);

20 ‘‘(B) the services that the recipient will make

21 available;

22 ‘‘(C) the policies that will govern the fiscal, ad23 ministrative, and representational activities of the

24 recipient in compliance with the provisions of this

25 title and regulations issued under this title, other
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1 applicable law, or requirements imposed by grantors

2 of resources to the recipient;

3 ‘‘(D) subject to the prohibitions and require4 ments contained in this title, the priorities of the re5 cipient for the use of all available resources, includ6 ing the policies regarding the types of cases or mat7 ters attorneys, paralegal staff, and other staff may

8 undertake using such resources; and

9 ‘‘(E) subject to regulations on private attorney

10 involvement promulgated by the Corporation under

11 section 1008(e), significant policy decisions concern12 ing the use of staff attorneys and other available

13 and appropriate staff and nonstaff resources, includ14 ing private attorneys and others, to provide legal as15 sistance to eligible clients and to carry out activities

16 relating to the delivery of legal assistance.

17 ‘‘(4) The governing or policy body of a recipient

18 shall—

19 ‘‘(A) not interfere with the lawyer-client rela20 tionship in the representation of specific clients by

21 the recipient;

22 ‘‘(B) comply with the legal and ethical require23 ments on conflicts of interest that apply in the juris24 diction where the recipient is located;
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1 ‘‘(C) not act on a case-by-case basis in setting

2 priorities, except that the governing or policy body

3 may reconsider priorities at any time for future ap4 plications for services in light of changing legal

5 needs of clients or in light of an emergency; and

6 ‘‘(D) ensure that activities under this title are

7 carried out in a manner consistent with attorneys’

8 professional responsibilities to a client as established

9 in the rules of ethics and professional responsibility

10 that apply in the jurisdiction where the legal assist11 ance is provided.

12 ‘‘(5) The Corporation shall not—

13 ‘‘(A) interfere with the governing or policy bod14 ies described in paragraph (1) in their determina15 tions of the broad policy matters described in para16 graph (2);

17 ‘‘(B) impose requirements or limitations on the

18 types of cases or representation of clients unless

19 those requirements or limitations are explicitly au20 thorized by this title or other applicable law; or

21 ‘‘(C) impose requirements or limitations on the

22 governing or policy bodies of recipients that are ad23 ditional to, or more restrictive than, the provisions

24 of this subsection.’’.
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1 SEC. 12. PROFESSIONAL RESPONSIBILITIES.

2 (a) RESPONSIBILITIES OF THE CORPORATION.—

3 Paragraph (3) of section 1006(b) (42 U.S.C. 2996e(b))

4 is amended to read as follows:

5 ‘‘(3) The Corporation shall not, under any provision

6 of this title, interfere with any attorney in carrying out

7 the attorney’s ethical or professional responsibilities to a

8 client as established in the rules of ethics and professional

9 responsibility that apply in the jurisdiction where the legal

10 assistance is provided or abrogate as to attorneys in pro11 grams assisted under this title the authority of a State

12 or other jurisdiction to enforce the standards of profes13 sional responsibility generally applicable to attorneys in

14 such jurisdiction.’’.

15 (b) GRANTS AND CONTRACTS.—Paragraph (10) of

16 section 1007(a) (42 U.S.C. 2996f(a)) is amended to read

17 as follows:

18 ‘‘(10) ensure that all attorneys employed by re19 cipients supported, in whole or in part, by the Cor20 poration, while engaged in legal assistance activities,

21 refrain from the persistent incitement of litigation

22 and any other activity prohibited by the rules of eth23 ics or professional responsibility that apply in the ju24 risdiction where the legal assistance is provided, and

25 ensure that such attorneys refrain from personal

26 representation for a private fee from the client in
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1 any cases in which they were involved while engaged

2 in such legal assistance activities; and’’.

3 (c) ACCESS TO RECORDS.—Section 1009(d) (42

4 U.S.C. 2996h(d)) is amended by inserting before the pe5 riod at the end the following: ‘‘or protected from disclosure

6 by the laws or the rules of ethics or professional respon7 sibility that apply in the jurisdiction where such reports

8 or records are maintained’’.

9 SEC. 13. SOLICITATION.

10 Section 1007 (42 U.S.C. 2996f) (as amended by sec11 tion 10) is amended by adding at the end the following:

12 ‘‘(j) A recipient and any employee of any such recipi13 ent shall not solicit professional employment from a pro14 spective client if—

15 ‘‘(1) the prospective client has made known to

16 the recipient or employee of such recipient a desire

17 not to be solicited by the recipient or employee of

18 such recipient;

19 ‘‘(2) the solicitation involves coercion, duress, or

20 harassment; or

21 ‘‘(3) the solicitation is made in order to urge

22 the client to initiate litigation without a proper fac23 tual basis for the complaint.’’.
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1 SEC. 14. CERTAIN EVICTION PROCEEDINGS.

2 Section 1007 (42 U.S.C. 2996f) (as amended by sec3 tion 13) is amended by adding at the end the following:

4 ‘‘(k)(1) No funds made available by the Corporation

5 may be used for initiating the defense of a person in a

6 proceeding to evict that person from a public housing

7 project if the person has been convicted of the illegal sale

8 or distribution of a controlled substance and if the eviction

9 proceeding is brought by a public housing agency because

10 the illegal drug activity of that person threatens the health

11 or safety of other tenants residing in the public housing

12 project or employees of the public housing agency.

13 ‘‘(2) As used in this subsection—

14 ‘‘(A) the term ‘controlled substance’ has the

15 meaning given that term in section 102 of the Con16 trolled Substances Act (21 U.S.C. 802); and

17 ‘‘(B) the terms ‘public housing project’ and

18 ‘public housing agency’ have the meanings given

19 those terms in section 3 of the United States Hous20 ing Act of 1937 (42 U.S.C. 1437a).’’.

21 SEC. 15. PROCEDURAL SAFEGUARDS FOR LITIGATION.

22 Section 1007 (42 U.S.C. 2996f) (as amended by sec23 tion 14) is amended by adding at the end the following:

24 ‘‘(l) Except when necessary to respond to an emer25 gency situation, no recipient or employee of such recipient

26 may with respect to a claim or controversy engage in
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1 precomplaint settlement negotiations, file a complaint, or

2 otherwise pursue litigation against a defendant unless a

3 written retainer agreement which enumerates the particu4 lar facts on which the claim or controversy is initially

5 based has been signed by the plaintiff (including named

6 plaintiffs in a class action). Such retainer agreement shall

7 be executed when representation commences or as soon

8 thereafter as is practicable. Such retainer agreement—

9 ‘‘(1) shall be kept on file by the recipient in a

10 manner that prevents disclosure of information pro11 tected by the attorney-client privilege or by the rules

12 of ethics or professional responsibility that apply in

13 the jurisdiction in which the legal assistance is pro14 vided; and

15 ‘‘(2) shall be made available—

16 ‘‘(A) to any Federal department or agency

17 that is auditing the activities of the Corporation

18 or of any such recipient; and

19 ‘‘(B) to any auditor receiving Federal

20 funds to conduct such auditing, including any

21 auditor or monitor of the Corporation.

22 Other parties shall have access to such agreement only

23 through the applicable rules of discovery after litigation

24 has begun. The recipient is not required to execute a writ25 ten retainer agreement under this subsection when the
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1 only service to be provided is a brief service, advice, or

2 consultation that does not obligate the recipient to provide

3 additional service or undertake continued representation.

4 Unless authorized by a court of competent jurisdiction, no

5 recipient or employee of such recipient may file a com6 plaint or petition in a court until all plaintiffs known to

7 plaintiff’s counsel at the time have been specifically identi8 fied in the complaint or petition.’’.

9 SEC. 16. COMPETITION STUDY.

10 Section 1007 (42 U.S.C. 2996f) (as amended by sec11 tion 15) is amended by adding at the end the following:

12 ‘‘(m)(1) The Corporation shall study the feasibility

13 of a system of competition in the delivery of legal assist14 ance and related activities under subsections (a)(1) and

15 (a)(3) of section 1006 and shall report its conclusions to

16 the Congress not later than 3 years after the date of the

17 enactment of the Legal Services Reauthorization Act of

18 1994. Such study shall be conducted in conjunction with

19 an advisory committee which includes project directors, at20 torneys providing legal assistance, the organized bar, and

21 eligible clients, who are selected by appropriate represent22 atives of these groups.

23 ‘‘(2) The study under paragraph (1) shall examine

24 how a system of competition would—
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1 ‘‘(A) ensure access to, and the continued provi2 sion of, high-quality, economical, and effective legal

3 services;

4 ‘‘(B) take into account—

5 ‘‘(i) the ongoing ethical and professional

6 responsibilities of recipients and their attorneys

7 for existing cases;

8 ‘‘(ii) the potential for disruption in the de9 livery of services to clients, including pro bono

10 services or the loss or reduction of funding or

11 other resources from sources other than the

12 Corporation if an existing recipient were re13 placed;

14 ‘‘(iii) whether competition would harm the

15 ability of existing recipients to recruit and re16 tain qualified staff; and

17 ‘‘(iv) whether the Corporation could re18 quire a new recipient, as a condition of a com19 petitive grant, to assume collective bargaining

20 agreements or to hire non-management or other

21 staff from the previous provider in order to

22 minimize the loss of experienced staff.

23 ‘‘(3) If the Corporation decides to adopt a competitive

24 model for the award of some or all grants for the delivery

25 of legal assistance to eligible clients, it may do so only
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1 in accordance with regulations promulgated pursuant to

2 section 1008(e) and the other requirements of this title.’’.

3 SEC. 17. FEE-GENERATING CASE PROVISIONS.

4 Subsection (b)(1) of section 1007 (42 U.S.C.

5 2996f(b)(1)) is amended by striking ‘‘(which guidelines’’

6 and all that follows through the end of the paragraph and

7 inserting the following: ‘‘, except that—

8 ‘‘(A) such guidelines shall not preclude the

9 provision of legal assistance in cases in which a

10 client seeks only statutory benefits and appro11 priate private representation is not available

12 and the recipient does not seek or accept any

13 fee that is deducted directly from the individual

14 client’s recovery; and

15 ‘‘(B) the Corporation may not—

16 ‘‘(i) prevent recipients from seeking,

17 receiving, or retaining attorneys’ fees

18 awarded or approved by a court or admin19 istrative body or included in a settlement

20 in any matter that may be appropriately

21 undertaken under the guidelines promul22 gated under this paragraph, or

23 ‘‘(ii) offset attorneys’ fees against

24 grant amounts or take into account the

25 amount of any such attorneys’ fees in es-
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1 tablishing funding levels, fund balances, or

2 distributing funds appropriated under this

3 title;’’.

4 SEC. 18. MISCELLANEOUS RESTRICTIONS.

5 (a) RESTRICTED ACTIVITIES.—Section 1007(b)(6)

6 (42 U.S.C. 2996f(b)(6)) is amended to read as follows:

7 ‘‘(6) to support or conduct training programs

8 for the purpose of advocating particular public poli9 cies or encouraging political activities, labor or

10 antilabor activities, boycotts, picketing, strikes, or

11 demonstrations, except that this subsection shall not

12 be construed to prohibit the training of attorneys or

13 paralegal personnel necessary to prepare them to

14 provide adequate legal assistance to eligible clients,

15 to advise any eligible client as to the nature of the

16 legislative process, or to inform any eligible client of

17 the client’s rights under any statute, order, or regu18 lation;’’.

19 (b) RECOMMENDATIONS REGARDING HIRING OF

20 STAFF ATTORNEYS.—Paragraph (8) of section 1007(a)

21 (42 U.S.C. 2996f(a)) is repealed and paragraphs (9), (10),

22 and (11) are redesignated as paragraphs (8), (9) and (10),

23 respectively.
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1 (c) LABOR LAW VIOLATIONS.—Section 1006 (42

2 U.S.C. 2996e) is amended by adding at the end the follow3 ing:

4 ‘‘(g) No recipient may engage in activity that, with

5 respect to the recipient, is determined to be a violation

6 of applicable labor laws by the National Labor Relations

7 Board or a court or other State or local agency.’’.

8 (d) RECIPIENT DEFINED.—Section 1002(6) (42

9 U.S.C. 2996a(6)) is amended to read as follows:

10 ‘‘(6) ‘recipient’ means—

11 ‘‘(A) any grantee, contractor, or recipient

12 of financial assistance described in subpara13 graph (A) of section 1006(a)(1); or

14 ‘‘(B) any subrecipient, subgrantee, or sub15 contractor of any recipient described in sub16 paragraph (A) or any grantee or contractor re17 ceiving funds from the Corporation under sub18 paragraph (B) of section 1006(a)(1) or under

19 section 1006(a)(3), but only with respect to the

20 provision of legal assistance to eligible clients

21 that are supported with funds provided under

22 this title;’’.

23 (e) LIMITATION ON USE AMENDMENT.—Section

24 1007(b) (42 U.S.C. 2996f(b)) is amended by inserting
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1 ‘‘and’’ at the end of paragraph (7) and by striking para2 graphs (9) and (10).

3 SEC. 19. RECORDKEEPING AND NONCORPORATION FUNDS.

4 (a) NON-CORPORATION FUNDS.—Subsection (c) of

5 section 1010 (42 U.S.C. 2996i) is amended to read as fol6 lows:

7 ‘‘(c)(1) Funds received by a recipient from sources

8 other than the Corporation shall be accounted for and re9 ported as receipts and disbursements separate and distinct

10 from Corporation funds, pursuant to generally accepted

11 accounting principles. A recipient shall maintain a system

12 of recordkeeping which discloses the activities supported

13 by Corporation and non-Corporation funds and allocates

14 costs appropriately to such activities. The recipient shall

15 adopt procedures providing for the design and implemen16 tation of such a recordkeeping system. The specific record17 keeping system to be employed shall be determined by the

18 recipient in a manner that meets the requirements estab19 lished by the Office of Management and Budget and pub20 lished as Circular A-122 (Cost Principles for Nonprofit

21 Organizations).

22 ‘‘(2) Private funds received by a recipient or other

23 grantee or contractor of the Corporation for the provision

24 of legal assistance shall not be used to engage in activities

25 prohibited by paragraph (2), (3), (4), (6), or (7) of section
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1 1007(b) or by section 1007(k). This subsection shall not

2 be construed to prevent recipients or other grantees or

3 contractors of the Corporation from receiving tribal funds

4 (including foundation funds benefiting Indians or Indian

5 Tribes) and expending them in accordance with the pur6 poses for which they are provided or to prevent contracting

7 or making other arrangements with private attorneys, pri8 vate law firms, or other State or local entities of attorneys

9 or with legal aid societies having separate public defender

10 programs for the provision of legal assistance to eligible

11 clients under this title.’’.

12 (b) ANNUAL FINANCIAL AUDIT.—Paragraph (1) of

13 section 1009(c) (42 U.S.C. 2996h(c)) is amended to read

14 as follows:

15 ‘‘(1) The Corporation shall require each recipient to

16 provide for an annual financial audit but the Corporation

17 may not select the auditor employed for such audit by such

18 recipient. The Corporation may conduct its own financial

19 audits of recipients and may use funds appropriated to

20 the Corporation to retain independent auditors to conduct

21 financial audits of any recipient. The report of each audit

22 shall be maintained for a period of at least 5 years at the

23 principal office of the Corporation.’’.
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1 SEC. 20. EVASION.

2 The Legal Services Corporation Act (as amended by

3 section 6(d)(4)) is amended by inserting after section

4 1013 the following new section:

5 ‘‘EVASION

6 ‘‘SEC. 1014. The use of ‘alternative corporations’ to

7 avoid or otherwise evade the provisions of this title or the

8 Legal Services Reauthorization Act of 1994 is prohibited.

9 The term ‘alternative corporation’ means any corporation,

10 law firm, business association, group, entity, or enterprise

11 which, through control over workload or interlocking

12 boards of directors, has a single identity of interest with

13 a recipient. Any recipient which shares employees with any

14 other corporation, law firm, business association, group,

15 entity, or enterprise shall specify with particularity the use

16 of any funds by such employees in accordance with the

17 recordkeeping requirements established under section

18 1010(c).’’.

19 SEC. 21. ATTORNEYS’ FEES PROVISIONS.

20 Subsection (f) of section 1006 (42 U.S.C. 2996e) is

21 amended to read as follows:

22 ‘‘(f) If any court finds, based on substantial evidence,

23 that a recipient commenced an action for the purpose of

24 harassment or retaliation or maliciously abused legal proc25 ess, or that the plaintiff’s action was frivolous or without

26 foundation and not warranted by existing law or by a non-
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1 frivolous argument for the extension, modification, or re2 versal of existing law or the establishment of new law, the

3 court may award reasonable costs and attorneys’ fees in4 curred by the defendant in defending the action. Any such

5 costs and fees shall be paid directly by the Corporation.

6 The Corporation may recover the amount of any costs and

7 fees paid by the Corporation from the recipient against

8 whom the award was made by offsetting that amount

9 against future grant awards made by the Corporation to

10 such recipient. Unless otherwise agreed by the Corporation

11 and the recipient the Corporation, in any one grant year,

12 may not deduct more than 5 percent of a grant for pur13 poses of recoupment of such costs and fees.’’.

14 SEC. 22. CORPORATION BOARD COMPOSITION AND CON15 TROL OVER POLICY.

16 (a) TERM OF OFFICE.—Subsection (b) of section

17 1004 (42 U.S.C. 2996c) is amended to read as follows:

18 ‘‘(b) The term of office of each member of the Board

19 shall be 3 years, except that a member of the Board shall

20 continue to serve after the end of the member’s term of

21 office until the successor to such member has been ap22 pointed and qualified. The term of each member shall be

23 computed from the date of termination of the preceding

24 term. Any member appointed to fill a vacancy arising as

25 a result of a prior member’s resignation, death, or removal
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1 pursuant to subsection (e) occurring before the expiration

2 of the term for which such member’s predecessor was ap3 pointed shall be appointed for the remainder of such term.

4 No member shall be reappointed to more than 2 consecu5 tive terms immediately following such member’s initial

6 term unless the initial term served by that member was

7 less than one year in duration.’’.

8 (b) CHAIRMAN.—Subsection (d) of section 1004 (42

9 U.S.C. 2996c) is amended to read as follows:

10 ‘‘(d) The Board shall annually elect a chairman from

11 among its voting members.’’.

12 (c) PROCEDURE.—Section 1006 (42 U.S.C. 2996e),

13 as amended by section 18(c), is amended by adding at the

14 end the following:

15 ‘‘(h) All rules, regulations, guidelines, instructions,

16 and grant conditions under this title, and all policies or

17 changes in policy directly affecting recipients shall be

18 adopted by the Board after notice and comment. For pur19 poses of this subsection, policies or changes in policies in20 clude increasing or decreasing funding to, imposing new

21 terms and conditions on, or making changes in, the classes

22 of recipients which provide and support the delivery of

23 legal assistance. This subsection shall not preclude the

24 staff of the Corporation from imposing, without notice and

25 comment, specific conditions on a grant or contract to an
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1 individual recipient which are not applicable to other such

2 recipients if the conditions relate specifically to a prior de3 termination that the recipient has not complied with the

4 provisions of this title or the rules, regulations, guidelines,

5 or instructions issued under this title or has failed to pro6 vide high quality, effective, and economical legal assist7 ance.’’.

8 (d) COMPENSATION OF OFFICERS AND EMPLOY9 EES.—Section 1005(d) (42 U.S.C. 2996(d)) is amended

10 by striking ‘‘level V’’ and inserting ‘‘level III’’.

11 SEC. 23. REPROGRAMMING PROVISIONS.

12 Section 1008 (42 U.S.C. 2996g) is amended by add13 ing at the end the following:

14 ‘‘(f) The Corporation may not promulgate rules, reg15 ulations, guidelines, or instructions under this title unless

16 the Corporation has so notified the Committee on Appro17 priations and the Committee on the Judiciary of the

18 House of Representatives and the Committee on Appro19 priations and the Committee on Labor and Human Re20 sources of the Senate at least 15 days before final publica21 tion of the rules, regulations, guidelines, or instructions,

22 and has given such committees an opportunity to comment

23 on such rules, regulations, guidelines, or instructions.’’.
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1 SEC. 24. GRANTS.

2 (a) 12-MONTH GRANTS REQUIRED.—Section 1010

3 (42 U.S.C. 2996i) is amended by adding to the end the

4 following:

5 ‘‘(e) All grants and contracts made pursuant to sec6 tions 1006(a)(1) and (3) for calendar years 1995, 1996,

7 1997, 1998, and 1999 shall be made for a period of at

8 least 12 months, except for any grant to a new program

9 commencing operations after the beginning of the applica10 ble calendar year.’’.

11 (b) AUTHORITY FOR GRANTS TO STATES AND LOCAL

12 GOVERNMENTS REPEALED.—Section 1006(a)(1) (42

13 U.S.C. 2996e(a)(1)) is amended to read as follows:

14 ‘‘(1)(A) to provide financial assistance to quali15 fied programs furnishing legal assistance to eligible

16 clients and to make grants and contracts with indi17 viduals, partnerships, firms, corporations, and non18 profit organizations for the purposes of providing

19 legal assistance to eligible clients under this title,

20 and (B) to make such other grants and contracts as

21 are necessary to carry out the purposes and provi22 sions of this title;’’.

23 SEC. 25. ESTABLISHMENT OF LOCAL PRIORITIES.

24 Section 1007(a) (42 U.S.C. 2996f(a)) is amended—

25 (1) in paragraph (2)(C)(i) by striking ‘‘goals es26 tablished by the Corporation’’ and inserting ‘‘the
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1 principles of section 1001 of this title and any goals

2 established by this title’’; and

3 (2) by adding after paragraph (10) (as redesig4 nated by section 18(b) of this Act) the following:

5 ‘‘The procedures adopted pursuant to paragraph (2)(C)(i)

6 shall require the governing or policy bodies of recipients

7 to review annually the priorities that are adopted in ac8 cordance with such procedures, and periodically analyze

9 the legal needs of clients in the area served by each such

10 recipient to take into account new or changing cir11 cumstances of such clients. As part of such analysis, each

12 such recipient shall seek comments and information from

13 clients, the organized bar, and program staff and from

14 other parties with relevant information concerning client

15 needs.’’.

16 SEC. 26. STAFF ATTORNEYS.

17 Paragraph (7) of section 1002 (42 U.S.C. 2996a) is

18 amended to read as follows:

19 ‘‘(7) ‘staff attorney’ means an attorney who—

20 ‘‘(A) is employed by a recipient that pro21 vides legal assistance to eligible clients under

22 this title; and

23 ‘‘(B) a significant part of such attorney’s

24 annual professional salary is derived from the
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1 proceeds of a grant or contract from the Cor2 poration to such recipient; and’’.

3 SEC. 27. STUDIES.

4 (a) STUDY ON LEGAL ASSISTANCE TO OLDER AMER5 ICANS.—Section 1007 (42 U.S.C. 2996f) (as amended by

6 section 16) is amended by adding at the end the following:

7 ‘‘(n) The Corporation shall conduct a study to deter8 mine the extent and effectiveness of legal assistance pro9 vided by recipients to older Americans. The Corporation

10 shall submit to the Congress, not later than 6 months

11 after the date of the enactment of the Legal Services Re12 authorization Act of 1994, a report on the study, together

13 with any recommendations that the Corporation has on

14 ways to improve the provision of such legal assistance to

15 older Americans.’’.

16 (b) STUDY ON RECRUITMENT AND RETENTION.—

17 Section 1007 (42 U.S.C. 2996f) (as amended by sub18 section (a)) is amended by adding at the end the following:

19 ‘‘(o) Within 6 months after the date of the enactment

20 of the Legal Services Reauthorization Act of 1994, the

21 Corporation shall undertake a study of factors that affect

22 the recruitment and retention by recipients of legal serv23 ices attorneys and other personnel, including loan forgive24 ness programs and the need for and availability of retire25 ment benefits. The Corporation shall submit to the Con-
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1 gress a report on such study, together with recommenda2 tions on how to improve recruitment of a highly qualified

3 and diverse workforce and increase retention of experi4 enced personnel. Such study shall be conducted with an

5 advisory committee which includes project directors, attor6 neys and paralegals providing legal assistance and eligible

7 clients, all of whom shall be selected by appropriate rep8 resentatives of such groups.’’.

9 (c) OTHER STUDIES.—Section 1007 (42 U.S.C.

10 2996f) is amended—

11 (1) by striking subsections (g) and (h), and

12 (2) by redesignating subsections (i) through (o)

13 as subsections (g) through (m), respectively.

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