IN THE SUPREME COURT OF THE STATE 

### OF MONTANA

No. 12616 

# -------------

Re: THE UNIFIED BAR OF MONTANA



# ....................... JAN251975

ORDER



# .......................

PER CURIAM: The following order implements Unification of the Bar of Montana; adopts a constitution and by-laws; and,provides an implementation schedule. Previously this Court rendered an order and opinion dated December 17, 1973, ordering unification of the Bar of the state of Montana. Subsequently,on February 1, 1974, the Court appointed an organizational committee to draft a proposed constitution,by-laws,and an implementation schedule for the unified Bar. Such committee made its report and this Court entered a further order on July 11, 1974, characterizing the committee report as generally agreeable,but calling for further consideration and recommendations in specific areaswith a resulting change in the implementation schedule. As a result of the further study ordered, the committee filed

a supplemental report on September 3, 1974. The Court hereby approves the supplemental report but of necessity, caused by this court's volume of work, an amended implementation schedule is herein set forth. Additionally,a second supplemental reportby the Court's committeewas filed on December 16, 1974,making further recommendations for amendments to the proposed by-laws to provide (1) for a client indemnitybond inArticle XI, and (2) inArticle I, Section 

### 4authorization to impose an assessment upon the members to provide funds necessary to pay the premium for the indemnitybond. Such recommendations are adopted and incorporatedhereinafter. The following Constitution of the State Bar of Montana is adopted: CONSTITUTION OF THE STATE BAR OF MONTANA ARTICLE I NAME The name of the association is the State Bar of Montana. ARTICLE I1 ORGANIZATION All persons admitted to the practice of law in the state of Montana are members of the State Bar of Montana. All such persons except judges of courts of record and those allowed inactive statusby the by-laws,are active dues paying members. Membership in the State Bar ofMontana is a condition to practicing law in this state. Non-payment ofmembership dues and assessments shall result in suspension of membership and the right to practice lawuntil payment of all dues, assessments and penalties in the manner provided in the by-laws.

ARTICLE IT1

PURPOSES The purposes of the State Bar of Montana are to aid the courts in maintaining and improving the administration of justice; to foster and maintain and require on the part of those engaged in the practice of law high standards of integrity,l&aming, competence, public service,and conduct; to safeguard proper professional interests ofmembers of the bar; to encourage the formation, maintenance, and activities of localbar associations; to provide a forum for the discussion of and effective action concerning subjects pertaining to the practice of law, the science of jurisprudence and law reform,and relations of the bar to the public;to providk for the continuing legal education ofmembers of the bar; and to insure that the responsibilities of the legal profession to the public are more effectively discharged. ARTICLE IV

POWERS The State Bar of Montana may sue and be sued, enter into contracts and acquire, hold, encumber and dispose of real and personal property. ARTICLE V LOCATION OF OFFICES The principal office and place of business of the association shallbe in Helena, Montana, but the Board of Trusteesmay authorize offices to be located at other places within the state of Montana. ARTICLE VI

OFFICERS Officers of the State Bar ofMontana shall include a president, president-elect, a secretary-treasurerand a chairman of the Board. The duties, powers, qualifications, nomination and election of officers shallbe provided for in the by-laws. ARTICLE VII BOARD OF TRUSTEES The State Bar of Montana shallbe governed by a Board of twenty trustees, sixteen ofwhom shall be elected and four ofwhom shall be the President, the President-Elect, the immediatepast President and the Secretary-Treasurer.The duties and powers of the Board and the qualifications, nomination and election of the sixteen elective members shall be provided for in the by-laws. ARTICLE VIII EXECUTIVE COMMITTEE The Board of Trustees shall provide for an Executive Committee consisting of the President, President-Elect, the immediatepast President, the Secretary-Treasurer,the Chairman of the Board of Trustees and four additionalmembers of the Board of Trusteeswho shallbe elected by the Board. The powers and duties of the Executive Committee shallbe provided for in theby-laws.ARTICLE IX ANNUAL MEETING There shall be an annual meeting of the members of the State Bar of Montana at such time and place as is designated by the Board of Trustees, and such other meetings as may be provided in the by-laws. ARTICLE 

### X DISSOLUTION Upon the dissolution of the association, the Board of Trustees shall after paying or making provision for the payment of all its liabilities, dispose of all of the assets of the association exclusively for the purposes of the association in such manner,

or to such organization or organizations organized and operated exclusively for charitable,educational, religious,or scientific purposes as shall at the time qualify as exempt organization or organizations under the Internal Revenue Code of 1954 as the Board of Trustees shall determine. Any of such assets not so disposed of shall be disposed of by the district court of the county in which the principal office of the association is then located,exclusively for such purposes or to such organization or organizations, as said court shall determine,which are organized and operated exclusively for such purposes. In the event of dissolution of the association,

no member shallbe entitled to any distribution or division of its remaining property or its proceeds. ARTICLE XI AMENDMEW Proposals for amendment or abrogation of provisions of this Constitutionmay be presented to the Supreme Court by (i) petition of the Board of Trustees; or (ii) petition of a regularly called meeting of the members of the association in respect to changes approved by a vote of a majority of members present. ARTICLE XI1 EFFECTIVE DATE This Constitution shall be effective on March 1,1975.The following by-laws of the StateBar of Montana are adopted:

BY-LAWS OF THE STATE BAR OF MONTANA ARTICLE I MEMBERSHIP Section 1. Persons included inmembership. The membership of the StateBar initially shall consist of allthose persons who on the effective date of the Constitution of the StateBar are licensed to practice law inthis state, and after such effective date shall alsoinclude those persons who become licensed topractice law in this state; subject ineach case todue compliance with the conditions and requirements of membership. Residence inthe state of Montana shallnot be a condition of eligibilitytomembership in the StateBar. Section 2. Enrollment. Every person who becomes licensed to practice law inthis state shall enroll in the StateBar by signing and filinginthe StateBar officewithin ten days after admission topractice, a registration card containing theregistrant's: Full name. Residence address. Office address. Location of principal office. Date of admission to practice inMontana. Date of admission topractice inany stateor states other than Montana

# . Date and place of birth; and in the case of a naturalized person the date and place of naturalization. Name of law school and year of graduation. Social securitynumber. Every change after enroUmnt inrespect of any of the matters above specified shallbe promptly reported to the StateBar offices. Communications from the association toany member shallbe sent to the latest address furnishedby such member, Section 3. Classes of membership, (a) The members of the StateBar shallbe divided into three classes known respectively as "active" members, "judicial!' members and "inactive" members. The class of activemembers shallinclude allmembers of the StateBar except thejudicial members and inactive members. Judges of courts of record, and 

### retirsd~i judges who are eligible for temporary judicial assignment and arenot engaged in the practice of law shallbe classed asjudicial members. The classof inactivemembers shall include those personswho are eligible for active membership but arenot engaged in the practice of law and have filedwith the secretary of the associationwrittennotice requesting enrollment in the class of inactive members. (b) Only activemembers may practice law. No individual other than an enrolled active member of the StateBar shall practice in this state or in any manner hold himself out as authorized or qualified topractice law. (c) Only activemembers may hold office or vote inany election conducted by the StateBar. (d) Any inactive member ingood standing and anyjudicial member who isno longer serving ina judicial officemay change his classification tothat of an active member by filingwith the State Bar office a written request for transfer to the class of active members and by paying the dues required of active members. No inactive member who has not actively practiced law in this state

or inanother stateduring the last ten years shallbe transferred to active membership until the transfer shallbe approved by the Supreme Court except a judicial member who isno longer serving in ajudicial office shallbe classified as an activemember upon his written request. (e) No judicial or inactive member shall practice law inthis state or shallhold office or vote inany election conducted by the StateBar. No person engaged in the practice of law in this stateinhis own behalf or as an assistant or employee of an active member of the StateBar, or occupying a position the duties of which require the giving of legal advice or service in this state, shallbe enrolled as an inactivemember. Section4. Membership dues. (a) Annual dues for each active member who has been admitted to practice inthis state three years ormore prior tothe commencement of the fiscalyear forwhich dues arepayable, shallbe $40.00. For allother activemembers, the annual dues shallbe $25.00 except that the dues for those admitted topractice inthis statefor less than one year shallbe $5.00. Allactive members shallpay, inaddition tomembership dues and atthe same time, an assessment of $10.00 for the client security fund, and an additional per capita assessment for premiums fora client security indemnity bond in such amount as shallbe agreed upon between the Board of Trustees and a bonding company. Alldues and assessments paid for the client securityfund shallbe paid to the StateBar. The dues shallconstitute a fund for the payment of the expenses of the association. The payment made for the client security fund and indemnity bond shallbe used for that purpose only. Dues arein addition to the annual license fee paid tothe Clerk of the Supreme Court. (b) The date for the payment of dues and assessments shall be July 1of each year. The StateBar office shallmail statements of dues and assessmentsnot less than thirtydays prior to the due date to allmembers. A second notice shallbe sentby certified mail return receipt requested toany member whose dues or assessments remain unpaid for sixty days after the due date. The second notice shall specify that saidmember willbe suspended unless his dues and assessments arepaid within thirtydays from the date of mailing of such notice. The membership of any member who-does not pay his dues and assessments within thirtydays from the date of mailing of the second notice shallbe suspended. No person whose membership is so suspended fornon-payment of dues and assessments shall practice law during the period of such suspension. (c) Dues firstyear of admission. When a person is first admitted topractice law inMontana he shallpay membership dues and assessments for the full fiscalyear inwhich such admission

occurs. (d) Penalty for non-payment of dues and assessments. (i) The names of allmembers suspended from membership for non-payment of dues or assessments shallbe certifiedby the Executive Director to the Clerk of theMontana Supreme Court, to eachjudge of

a court of record inthis state, to the Clerks of the Federal District Courts forthe state of Montana, to the Clerk of the 9th Circuit Court of Appeals and tothe Clerk of the United States SupremeCourt after twenty 

### (20) days written notice of intent to certify is sent to each suspended member by certified mail, return receipt requested. (ii) Whenever a member so suspended fornon-payment of membership dues or assessments makes full payment of the amount owing, and in addition thereto the sum of $20.00 for each delinquent payment of annual dues or assessments in arrears,he shallbe reinstated as a member and the fact of such reinstatement shall be certifiedby the Executive Director to all parties to whom notice of suspensionwas sent. However, in the case of any person whose membership dues or assessments are in arrears for a period of three or more consecutiveyears,no application for reinstatement shallbe granted unless ordered by the Montana Supreme Court. In

case of hardship the Board of Trusteesmay order waiver of dues, assessments,or penalties. (e) Voluntary resignation ofmembership. Whenever a member fileswith the State Bar office a written notice of suchmember's surrender of his license to practice law and the acceptance by the Supreme Court of his resignation in the State Bar, such person shall thereupon cease to be a member of the State Bar, and his name shallbe removed from the membership register. ARTICLE I1

OFFICERS Section 

### 1. Titles, terms,qualifications. (a) The officers of the State Bar shallbe a President,a President-Elect,a Chairman of the Board of the Board of Trustees, and a Secretary-Treasurer. Only activemembers of the State Bar residing and practicing law in Montana shallbe eligible to serve

as and vote for officers of the association. The term of office of the President, President-Electand Chairman of the Board of Trustees shallbe one year. The term of the Secretary-Treasurer shallbe two years. The term of each officer shall run until the qualification of his successor.(b) The President-Elect shall at the expiration of his term

as President-Elect succeed to the Presidency of the StateBar. (c) Any active member who is a resident of Montana and practices law in this state may be nominated as a candidate for President-Elect or Secretary-Treasurerby a petition signed by not less than twenty-fivemembers. Nominating petitions shallbe filed with ormailed to the State Bar of Montana at least sixtydays before the election date specified by the Board ofTrustees. In the event that no member shallbe nominated as President-Elector Secretary-Treasurer,the Board of Trustees shall nominate one or more qualified candidates for such offices. Election of the President-Elect and Secretary-Treasurershallbe by secret ballot of all activemembers and the candidate receiving the greatest

4 number of votes cast shallbe elected. Themailing, return and

canvass of the ballots shallbe conducted in the same manner as provided for the election of Trustees. (d) A Chairman of the Board of Trustees shallbe elected by the Board from its elected members at the time of the annual meeting of theAssociation. He shall assume office at the conclusion of the annualmeeting. Section 

### 2. Duties of officers, (a) President. The president shall be the chief executive officer of the association. He shallbe a member-at-large of the Board of Trustees and a member of the executive committee. He shall preside at allmeetings of the association and of the executive committee. He shall make the appointments to, and designate the chairmen of all standing committees; create and appoint special committees;and be a member, ex-officio,of every committee. (b) President-Elect. The President-Elect shallbe a member-atlarge of the Board of Trustees and the executive committee;and he shall perform all other duties assigged to him by the President or Board of Trustees. (c) Chairman Board of Trustees. The Chairman of the Board shallbe a member of the executive committee. He shallpreside at

### all meetings of the Board of Trustees. He shall perform the duties of the President in the absence or disability of the President,and in the event of a vacancy in the office of President,he shall

assume that office for the unexpired term. (d) 

### Secretary-Treasurer. The Secretary-Treasurer shallbe a member-at-large of the Board of Trustees and a member of the executive committee. He shall conferwith the Executive Director and the administrative staff of the State Bar as to (i) The keeping of proper minutes and records. (ii) The maintenance of correctembers ship 

### files and mailing lists. (iii) The general operation of the headquarters office. (iv) Themethods and procedures used in the receipt, collectionand safe-keepingof all funds of the State Bar. (v) The procedures for disbursement and audit of such funds. The Secretary-Treasurer shall assist the executive committee in preparing the annual budget and in presenting it to the Board of Trustees and make recommendations to the Board of Trustees as to the association's affairs,as required. Section 

### 3. Compensation. The officers of the association shall receive no compensation for their services,but shall receive reimbursement of their expenses as may be authorized and directed by the Board of Trustees. Section 

### 4. Commencement of term of office. The terms of all out-going officers of the association shall end and the terms of their successors shall commenceat the conclusion of the annual meeting. ARTICLE I11 BOARD OF 

### TRUSTEES Section 1. Composition of Board. The affairs of the association shall be managed and directed by the Board of Trustees consisting of the three officers of the association and the immediate pastpresident of the association,all of whom shallbe members-at-large of the Board, and sixteen members from the areas hereinafter designated. The rights and powers of the members-at-large of the Boardshallbe the same as those of elected members. The Dean of the School of Law of the University of Montana, the Montana State Bar Delegate and the state delegate to the House of Delegates of the American Bar Association, President of the Montana Trial Lawyers Association or his designee, President of the Montana County Attorneys Association or his designee, and a Montana licensed lawyer designated by the Young Lawyers Section shallbe entitled to floor privileges,but without a vote. Section 

### 2. State Bar areas. For the purposes of conducting elections of the members of the Board of Trustees,the state is divided into the following areas, ,, .with members of the Board to be elected from each area by the activemembers of the bar in such area: Area 

# - A Total Trustees By Judicial District Fourth, Eleventh Second 

### 1 Third & Fifth 1 Eighth & Ninth 

### 2 Twelfth,Fifteenth, & Seventeenth 1 First 

### 2 Sixth & Eighteenth 1 Tenth & Fourteenth 

### 1 G 3 Thirteenth 

### 3 

### H 1 Seventh & Sixteenth 1 Section 3. Term-Qualifications-Nomination-Election. (a) The term of office of each elected member of the Board of Trustees shall be two years, except that trustees from Areas A,By C and 

### D chosen in the first electionunder these by-laws shall serve for only one year. The term of office shall commence at the conclusion of the annual meeting of the associationnext followinghis election. No person shallbe eligible to vote in an area for trustee

or to serve on the Board of Trustees from an area unless he is 

### an active member of the association and practices law and resides in such area. The eligibility of any person to serve as a member of the Board of Trustees from any State Bar area shall be contingentupon his maintaining his practice of law and residence in such area.(b) Nomination of each candidate tobe elected to the Board of Trustees shallbe by petition signed by ten active members residing in the candidate's area. Nominating petitions shallbe filedwith ormailed to the StateBar office atleast sixty days before the election date specifiedby the Board of Trustees. In the event there isno petition to fillthe office of Trustee in any area, the Board of Trustees shallnominate a qualified candidate orcandidates for such office or offices. The Executive Director shallmail writtenballots containing thenominations for the office of Trustee for each area toevery member residing in such area not less than thirty days before such election date. Such ballots, in sealed envelopes, signed by themember, shallbe mailed to the Executive Director not less than ten days before the specified election date. A committee of not less than three members appointed by the President shall canvass the votes and record the votes thereof. The candidates receiving the greatest number of votes cast ineach

area shallbe declared elected, Section4. Powers and Functions, (a) The Board of Trustees shallhave general charge of the affairs and activities of the association. It shall: (i) Fix the time and place of the annual meeting of members of the association. (ii) Fix the date of election of officers and trustees. (iii) Make appropriations and authorize disbursements from the funds of the StateBar inpayment of thenecessary expenses of the association, its officers and committees. (iv) Cause proper books of accounts tobe kept and to procure an annual audit thereof by a certified public accountant (a copy of the annual audit shallbe filedwith the Supreme Court). (v) Engage and define the duties of employees and fix their compensation. (vi) Arrange for publication of an official State

### Bar bulletin orjournal.(vii) Receive, consider and take action on reports and recommendations submitted by committees, sections and the assembly of members of the association at any annual or specialmeeting. (viii) Fill vacancieshowever arising, in the membership of the Board of Trustees, or in any office except the office of President, and in each case the person appointed to fill such a vacancy shallhold for the unexpired term. (ix) Adopt regulations,not inconsistentwith the association's Constitution and these By-Laws, for the orderly administration of the association's affairs and activities. Section 

### 5. Meetings of Board of Trustees, (a) There shallbe a regularmeeting of the Board of Trustees in each year at the time of the annualmeeting of members of the State Bar and during the months ofApril, September and December in each year. Themeetings in the months ofApril, September and December shallbe on dates set by the Executive Committee. (b) Special meetings of the Board may be held at any time upon call of the President, and shall be called by him upon written requests signed by five members of the Board. Notice of the time and place of regular and specialmeetings of the Board shall be given to each member by the Executive Director by mail or telephone at least five days before the meeting. At any regular or specialmeeting of the Board any business may be transacted which is within the power of the Board,whether or not specified in the call or notice of the meeting. Action of the Board may be taken without a meeting by mail or telephone vote. (c) A majority of the Trustees shall constitutea quorum. Any Trusteewho fails to attend two successivemeetinlfsaf the Board of Trusteeswithout good cause shall forfeit his office and the vacancy filled by the remainingmembers of the Board. Good cause shallbe determined by the Board. (d) A summary of the minutes of each meeting or of any mail or telephone action of the Board of Trustees shallbe printed in the State Bar Bulletin with a notation that any interested person may obtain a copy of the minutes on request to the Executive Director.Section 

### 6. Compensation. The members of the Board of Trustees shall receiveno compensation for services to the association,but they and also the members of committees and the officers and directors of sections may, upon authorization of the Board of Trustees, be

, reimbursed for necessary expenses incurred in the performance of their duties. ARTICLE IV EXECUTIVE COMMITTEE Section 

### 1. Members; selection. There shallbe an Executive Committee consisting of the President, President-Elect,the immediate Past-President,the Secretary-Treasurer,the Chairman of the Board of Trustees, and four additionalmembers elected annually by the Board of Trustees from among itsmembers at its meeting held at the

same time as the annualmeeting of the association. A vacancy occurring in the elected membership may be filled by the Board of Trustees. Section 

### 2. Powers and duties. The Executive Committeemay exercise all the powers and perform all the duties of the Board of Trustees between the meetings of the Board subject to ratification by the 

## - Board except the power to initiate the taking of any referendumor poll of members of the association, The Executive Committee shallprepare an annual budget for submission to the Board of Trustees, and shall perform such other duties as the Board of Trusteesmay prescribe. Section 3. Meeting; quorum. The Executive Committee shallmeet at the call of the President, or at the call of the Executive Director upon the written demand of at least three of its members. All members shall be given at least 

### 48 hours notice by mail, or telephone of the time and place of any meeting, Fivemembers present at a meeting shall constitute a quorum. Action of the Executive Committee may be takenwithout a meeting by mail or telephonevote. Any elected member of the Executive Committee who fails to attend two successive meetings without good cause shall automatically forfeit his office and the vacancy shallbe filled by the Board of Trustees. Good cause shallbe determined 

### by the Executive Committee.A summary of the minutes of each meeting of the Executive Committee shallbe printed in the StateBar Bulletin, with a notation that any interested person may obtain a copy of the minutes upon request to the Executive Director. ARTICLE V YOUNG LAWYERS SECTION There shallbe a young lawyers section of the StateBar of Montana. Each member of the StateBar of Montana thirty-six years old or younger may be a member of this section.

ARTICLE VI AMERICAN BAR ASSOCIATION DELEGATE Any activemember who is a resident of Montana and maintains an office forpractice of law in this statemay be nominated asa candidate for delegate to the House of Delegates of theAmerican Bar Association by a petition signed by not less than twenty-five active members. Nominating petitions shallbe filedwith ormailed to the StateBar of Montana at least sixtydays before the election date specifiedby the Board of Trustees. In the event that no member shallbe nominated as delegate, the Board of Trustees shall nominate one or more qualified candidates for such office. Election of the delegate shallbe by secretballot of allactive members and the candidatereceiving the greatest number of votes cask shallbe elected. The mailing, return and canvass of theballots shallbe conducted inthe same manner as provided for the election of trustees. ARTICLE 

### VII EXECUTIVE DIRECTOR There shallbe an Executive Director of the StateBar who shallbe the chief executive officer of the administrative staff and in direct charge of the StateBar office, itsrecords, property and equipment. The executive director shallbe hired by the Board of Trustees under terms of employment and compensation fixedby the Board. He shallupon enteringupon the duties of executive director give a suretybond to the StateBar of Montana for the faithful performanceof his duties,which bond must be approved by the President. Subject to the general control of the officers, executive committee, and Board of Trustees and as appropriate and consistent with the requirementsof this constitutionand the by-laws,he shall: (a) Attend meetings of the executive committeeand Board of Trustees, and keep and disseminate the minutes of suchmeetings. (b) Collect, deposit and disburse the association's funds pursuant to the budget, and invest surplus funds at the direction of the executive committee. (c) Maintain membership lists, and member files. (d) Advise and assist the officers, trustees, sections and committees. (e) Make the arrangements for associationmeetings. (f) Perform such other duties asmay be directed by the Board of Trustees or officers, or as prescribed by the State Bar's constitution or by these by-laws. ARTICLE VIII MEETINGS 

### OF THEASSOCIATION Section 1. Annual meeting. There shallbe an annualmeeting of the members of the State Bar at such time and place as is designated by the Board of Trustees. Section 

### 2. Specialmeetings. Specialmeetings of the members of the StateBar of Montana may be held at such times and places as designatedby the Board of Trustees. A specialmeeting may also be called upon a petition signed by not less than twenty percent of the members of the State Bar of Montana. Section 

### 3. Notice of meetings. At least fifteen dayswritten notice shall be given for all specialmeetings of the State Bar of Montana and at least thirty days notice shall be given for the annualmeeting of the State Bar of Montana. Section 

### 4. Powers of annual meeting. 

### At any annual or special meeting of the State Bar of Montana the members present shall constitute a quorum and,by a majority vote of those present,may modify or rescind any action or decision of the Board of Trustees andmay alsoinstruct theBoard as to future action and the Board shall be bound by any such action. The right aforesaid todirect, modify

or rescind an action of the Board shallnot include the power to invalidate payments previously made under the direction of the Board. Section 5. Conference formembers. Ateach annual meeting the officers and executive committee shall include in the printed program a time and place atwhich any member of the StateBar shall have

an opportunity toconferwith the officers and the executive committee and present any complaints or suggestions for the improvement of the StateBar. 

### ARTICLE 

### IX STANDING COMMITTEES Section 1. Appointment and removal. (a) Appointment. Number of members. Term. Each of the standingcommittees shall consist of nine members. The members of each such committee shallbe appointed by the president for a term of three years, soarranged that the term of office of only one-third of the members shall expire in any year. The chairman of each committee shallbe designated by the president for a term of one year. A vacancy inany committee shallbe filledby appointment by the president for theunexpired term. Members of committees shall serve until the appointment of their respective successors. A majority of the members of any committee shallconstitute a quorum for the transaction of business. Each committee shallkeep a record of its meetings and proceedings and shall submit an annual report tothe Board of Trustees. The Board of Trustees may assign powers or duties toany standing committee inaddition to those initiallyprescribed for the committee. (b) Removal fornon-attendance. After two consecutive nonexcused absences from meetings of any committee, the chairman of the committee shallreport said absences tothe president. The president shall thereupon notify such member of his removal from the committee, and appoint a replacement for thebalance of the term of office.Section 2. Committees created. The Board of Trustees, by majority vote, shall create the committees of the StateBar and prescribe their powers and duties. ARTICLE X SECTION ORGANIZATION AND ACTIVITIES Section 1. Establishment of sections. The Board of Trustees may establish, consolidate and discontinue sections. Upon approval of an application for the establishment of a new section, the Board of Trustees, by a vote of a majority of itsmembers, may establish such a section dedicated toa field of law not committed toany other section. Every application to the Board of Trustees for the establishment of a section shall set forth: (a) The field of law towhich the proposed section is tobe dedicated, which shallbe within the purposes of the StateBar and outside the field of law committed toany existing section. (b) A statement of the need for the proposed section. (c) The proposed by-laws for the government of such section. (d) The name of the several committees, if any, of the proposed section. (e) A list of members of the associationwhd have signified their intention of applying formembership inthe proposed section. An application for the consolidation of existing sections shall set forth the information required in the case of an application for establishing a section. Such an application may be granted by the Board of Trustees initsdiscretion, by a vote of a majority of themembers. A sectionmay be discontinued by a vote of a majority of the Board of Trustees, but only afternoticeby mail tothe members of said section. Section 2. Membership of sections. Any member of the StateBar shall be entitled athis election to enroll in any section. Section 3. Section officers and council. Each section shallhave a chairman and council and such other officers as the sectionby-laws may provide. The council of a section shallconsist of the officers ex-officio and such other members asmay be provided inthe by-laws. No change inthe by-laws of any section shallbe effectiveuntil approved by the Board of Trustees. 

# - 18

# -Section 4. Section dues. The members of any section may be required topay section dues in such amount and for such purposes

as the section, with the approval of the Board of Trustees, may determine. The dues shallbe paid to the StateBar office. Section 5. Section meetings. The officers and council of each section shall arrange for meetings of the section inconjunction with the annual meeting. Special meetings may be held at such times and places as the section council officers may determine. Section 6. Reports. Each section shall submit to the Board of Trustees prior to the annual meeting of the association in each year a report of the activities of the section. Section 7. Expenses. Expenditures out of the dues of sections shallbe made only by direction of the council of the section; and the StateBar shallpay out of such dues only such amounts as the chairman of the section shall certify tohave been so authorized. ARTICLE XI CLIENT SECURITY FUND The Board of Trustees shall establish a client security fund and provide rules of procedure for itsadministration. The Board may purchase a client security indemnity bond for additional client protection. ARTICLE XI1 OFFICIAL PUBLICATION: NOTICE TO MEMBERS (a) The Montana StateBar Bulletin shallbe the publication of the StateBar of Montana. Allofficial notices shallbe published therein and such publication shall'can;;stitutenotice to all members. The Bar Bulletin shallbe mailed to allmembers at their address of record. (b) A financial statement showing assets, lfabilities, receipts and disbursements of the StateBar shallbe published in the State Bar Bulletin prior to the annual meeting.ARTICLE XI11 REFERENDUM PROCEDURE Section 1. Trustees may initiate. The Baard of Trusteesmay at any time, by the affirmative vote of two-thirds of its membership, refer to the active members of the association for a determination by mail ballot, any question of associationpolicy.

Section 2. Annual or special meetings may initiate. The Board of Trustees shall, in like manner, submit for determinationby the active members of the association,any question of association policy, including proposed changes in the constitution or by-laws of the association, whenever directed so to do by resolution adopted at any regularly called meeting of the membership by the affirmative vote of a majority of those voting.

Section 3. Members may initiateby petition. The Board of Trustees shall, in like manner,submit for determination,by the members of the association,of any question of association policy, including proposals for changes in the constitution or by-laws, whenever directed so to do by a petition signedby not less than ten percent of the active members of the association.

Section 

### 4. Procedure. Ballots for use in any such referendum shall be prepared, distributed,returned and counted in accordance with regulations prescribed by the Board of Trustees. The result of the referendum,as determined by a majority of the votes cast, when duly ascertained, shallbe published by the Board of Trustees in the official Bar Bulletin,and shall control the action of the association, the Board of Trustees, the officers, sections and committees. ARTICLE XIV CANONS OF PROFESSIONAL ETHICS The rules of professional conduct set forth from time to time in the Canons of Professional Ethics of the Supreme Court,as it may be supplemented or modified by the Court, shallbe the standards governing the practice of law in this state.ARTICLE 

### XV AMENDMENT (a) These by-laws may be amended or repealed atany annual or specialmeeting of the StateBarby a majority vote of the members present, provided notice setting forth the proposed amendment shall be given allmembers inthenotice of the meeting. (b) The Board of Trustees shallreview theby-laws every three years, solicit opinions of the members relative toproposed amendments and report to the members present at the annual meeting in that year. ARTICLE XVI FIRST ELECTION The first election of officers and a Board of Trustees under these by-laws shallbe held under the direction of the Supreme Court in accordance with theby-laws.

Atthe first election a president shallbe nominated and elected in the same manner as the president-elect inaccordance with Article II(c). The officers and trustees first elected shall assume office on election day and shallimmediately select a siteand date for the firstannual meeting of the association. The terms of office of officers firstelected shall expire atthe conclusion of the second annual meeting. ARTICLE XVII EFFECTIVE DATE These by-laws are effective on March 1, 1975.

The following implementation schedule, which differs from the by-laws innotification time requirements for the election process, is adopted: March 1, 1975 Effective date of Constitution and By-Laws

# . March 1, 1975 Notification, Xegistration forms, and nominating petitions sent toall members of Unified Bar.April 1, 1975 April 15,1975

May 1, 1975

May 10, 1975 May 15, 1975 Deadline for filingnominating petitions with Supreme Court. Ballots mailed toallmembers by Supreme Court. Deadline forreturning voted ballots to Supreme Court. First Election date. Organizational meeting

# -- Board of Trustees transfer of Montana Bar Association assets toUnified Bar. Hiring of staff. Calling of first annual meeting of Unified Bar. May 20, 1975 Mail notice of firstannual meetine;. June 1, 1975 First mailing of dues notices for 1975-1976 fiscalyear. June 21, 1975 Convention and firstregular Board meeting. July 1, 1975. Due date for dues. Sept. 1, 1975 Second dues notice. Oct. 1, 1975 Suspension forunpaid dues. Oct. 21, 1975 Notice of suspension sent tocourts.

A copy of this Order shallbe mailed toeach currently licensed attorney appearing inthe records of the Clerk of the Supreme Court. DONE this>&&day of January, 1975.