An Act to amend the Economic Opportunity Act of 1964 to provide for the transfer of the legal services program from the Office of Economic Opportunity to a Legal Services Corporation, and for other purposes.
PL 93-355 (H.R.7824), enacted 07/25/1974

378 
PUBLIC LAW 93-355-JULY 25, 1974 
[88 STAT. 
Public Law 93-355 
July 25.1974 
AN A C T 
[H. R. 7824] 
To amend the Economic Opportunity Act of 1984 to provide for tlie transfer of 
tlie legal services program from the Office of Economic Opportunity to a Legal 
Services Corporation, and for other purposes. 
Be it eifiacted hy the Sena'e ami House of Representatives 
of the 
co^^orition^Acl^ 
T/mi^ec? States of America in Congress assembled, That this Act may 
o
f 1974. 
be cited as the "I^gal Services Corporation Act of 1974". 
42 use 2 996 
gj,^.^ 2. The Economic Opportmiity Act of 19C4 is amended by 
42USC 2701 
adding at the end thereof the following new title: 
note. 
"TITLE X—LEGAL SERVICES CORPORATION xiCT 
"STATEMENT or FINDINGS AND DECLARATION OF PURPOSE 
42 use 2996. 
"SEC. 1001. The Congress finds and declares that— 
"(1) there is a need to provide equal access to the system of 
justice in our Nation for individuals who seek redress of griev-
ances ; 
"(2) there is a need to provide high quality legal assistance to 
those who would be otherwise unable to afford adequate legal 
counsel and to continue the present vital legal services program; 
"(3) providing legal assistance to those who face an economic 
barrier to adequate legal counsel will serve best the ends of justice; 
"(4) for many of our citizens, the availability of legal services 
has reaffirmed faith in our government of laws; 
"(5) to preserve its strength, the legal services program must 
be kept free from the influence of or use by it of political pres-
sures; and 
"(6) attorneys providing legal assistance must have full free-
dom to protect the best interests of their clients in keeping with 
the Code of Professional Responsibility, the Canons of Ethics, 
and the high standards of the legal profession. 
42 use 2996a. 
U DEFINITIONS 
"SEC. 1002. As used in this title, the term— 
"(1) 'Board' means the Board of Directors of the Legal Serv-
ices Corporation; 
" (2) 'Corporation' means the Legal Services Corporation estab-
lished under this title; 
"(3) 'eligible client' means any person financially unable to 
afford legal assistance; 
"(4) 'Governor' means the chief executive officer of a State; 
" (5) 'legal assistance' means the provision of any legal services 
consistent with the purposes and provisions of this title; 
"(6) 'recipient' means any grantee, contractee, or recipient of 
financial assistance described in clause (A) of section 1006(a) (1) ; 
"(7) 'staff attorney' means an attorney who receives more than 
one-half of his annual professional income from a recipient orga-
nized solely for the provision of legal assistance to eligible clients 
under this title; and 
"(8) 'State' means any State of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico, the Virgin 
Islands, Guam, American Samoa, the Trust Territory of the 
Pacific Islands, and any other territory or possession of the 
United States. 
88 STAT. ] 
PUBLIC LAW 93-355-JULY 25, 1974 
379 
"ESTABLISHMENT OF CORPORATION 
"SEC. 1003. (a) There is established in the District of Columbia a 
private nonmembership nonprofit corporation, which shall be known 
as the Legal Services Corporation, for the purpose of providing finan-
cial support for legal assistance in noncriminal proceedings or matters 
to persons financially unable to afford le^al assistance. 
"(b) The Corporation shall maintain its principal office in the Dis-
trict of Columbia and shall maintain therein a designated agent to 
accept service of process for the Corporation. Notice to or service upon 
the agent shall be deemed notice to or service upon the Corporation. 
"(c) The Corporation, and any legal assistance program assisted 
by the Corporation, shall be eligible to be treated as an organization 
described in section 170(c) (2) (B) of the Internal Revenue Code of 
1954 and as an organization described in section 501(c)(3) of the 
Internal Revenue Code of 1954 which is exempt from taxation under 
section 501 (a) of such Code. If such treatments are conferred in accord-
ance with the provisions of such Code, the Corporation, and legal 
assistance programs assisted by the Corporation, shall be subject to 
all provisions of such Code relevant to the conduct of organizations 
exempt from taxation. 
"GOVERNING BODY 
Legal Services 
Corporation. 
Establishment. 
42 u s e 2996b. 
Tax exemption. 
26 u s e 170. 
26 u s e 501. 
''SEC. 1004. (a) The Corporation shall have a Board of Directors 
consisting of eleven voting members appointed by the President, by 
and with the advice and consent of the Senate, no more than six of 
whom shall be of the same political party. A majority shall be mem-
bers of the bar of the highest court of any State, and none shall be a 
full-time employee of the United States. 
"(b) The term of office of each member of the Board shall be three 
yeai-s, except that five of the members firet appointed, as designated by 
the President at the time of appointment, shall serve for a term of two 
yeai-s. Each member of the Board shall continue to serve until the suc-
cessor to such member has been appointed and qualified. The term of 
initial members shall be computed from the date of the first meeting 
of the Board. The term of each member other than initial members 
shall be computed from the date of tei-mination of the preceding term. 
Any member appointed to fill a vacancy occurring prior to the expira-
tion of the tei-m for which such member's predecessor was appointed 
shall be appointed for the remainder of such term. No member shall be 
reappointed to more than two consecutive terms immediately following 
such member's initial term. 
"(c) The members of the Board shall not, by reason of such mem-
bership, be deemed officei-s or employees of the United States. 
"(d) The President shall select from among the voting members of 
the Board a chairman, who shall serve for a term of three years. 
Thereafter the Board shall annually elect a chairman from among 
its voting members. 
"(e) A member of the Board may be removed by a vote of seven 
members for malfeasance in office or for persistent neglect of or inabil-
ity to discharge duties, or for offenses involving moral turpitude, and 
for no other cause. 
"(f) Within six months after the first meeting of the Board, the 
Board shall request the Governor of each State to appoint a nine-
member advisory council for such State. A majority of the members ™^"t 
of the advisory council shall be appointed, after recommendations 
have been received from the State bar association, from among the 
attorneys admitted to practice in the State, and the membership of the 
council shall be subiect to annual reappointment. If ninety days have 
elapsed without such an advisory council appointed by the Governor, 
Board of Direc-
tors, membership. 
42 u s e 2996c. 
Term of office. 
Nine-member 
State advisory 
council, appoint-
380 
PUBLIC LAW 93-355-JULY 25, 1974 
[88 STAT. 
Violation noti-
fication. 
Copy. 
Open meetings. 
Quarterly 
meetings. 
President, ap-
pointment by 
Board. 
42 u s e 2996d. 
Compensation. 
83 Stat. 863. 
Budget, OMB 
review and com-
ments. 
5 u s e 8101, 
8301. 
5 u s e 8701. 
5 u s e 8901. 
the Board is authorized to appoint such a council. The advisory coun-
cil shall be charged with notifying the Corporation of any apparent 
violation of the provisions of this title and applicable rules, r e f l a -
tions, and guidelines promulgated pursuant to this title. The advisory 
council shall, at the same time, furnish a copy of the notification to 
any recipient affected thereby, and the Corporation shall allow such 
recipient a reasonable time (but in no case less than thirty days) to 
reply to any allegation contained in the notification. 
"(g) All meetings of the Board, of any executive committee of 
the Board, and of any advisory council established in connection with 
this title shall be open to the public, and any minutes of such public 
meetings shall be available to the public, unless the membership of 
such bodies, by two-thirds vote of those eligible to vote, determines 
that an executive session should be held on a specific occasion. 
"(h) The Board shall meet at least four times during each calendar 
year. 
"OFFICERS AND EMPLOYEES 
"SEC. 1005. (a) The Board shall appoint the president of the Cor-
poration, who shall be a member of the bar of the highest court of a 
State and shall be a non-voting ex officio member of the Board, and 
such other officers as the Board determines to be necessary. No officer 
of the Corporation may receive any salary or other compensation for 
services from any source other than the Corporation during his period 
of employment by the Corporation, except as authorized by the Board. 
All officers shall serve at the pleasure of the Board. 
" (b) (1) The president of the Corporation, subject to general policies 
established by the Board, may appoint and remove such employees of 
the Corporation as he determines necessary to carry out the purposes 
of the Corporation. 
"(2) No political test or political qualification shall be used in 
selecting, appointing, promoting, or taking any other personnel action 
with respect to any officer, agent, or employee of the Corporation or 
of any recipient, or in selecting or monitoring any grantee, contractor, 
or person or entity receiving financial assistance under this title. 
"(c) No member of the Board may participate in any decision, 
action, or recommendation with respect to any matter which directly 
benefits such member or pertains specifically to any firm or organiza-
tion with which such member is then associated or has been associated 
within a period of two years. 
"(d) Officers and employees of the Corporation shall be compensated 
at rates determined by the Board, but not in excess of the rate of level 
V of the Executive Schedule specified in section 5316 of title 5, United 
States Code. 
"(e) (1) Except as otherwise specifically provided in this title, offi-
cers and employees of the Corporation shall not be considered officers 
or employees, and the Corporation shall not be considered a depart-
ment, agency, or instrumentality, of the Federal Gt)vernment. 
" (2) Nothing in this title shall be construed as limiting the author-
ity of the Office of Management and Budget to review and submit 
comments upon the Corporation's annual budget request at the time 
it is transmitted to the Congress. 
"(f) Officers and employees of the Corporation shall be considered 
officers and employees of the Federal Government for purposes of the 
following provisions of title 5, United States Code: subchapter I of 
chapter 81 (relating to compensation for work injuries) ; chapter 83 
(relating to civil service retirement); chapter 87 (relating to life 
insurance); and chapter 89 (relating to health insurance). The Cor-
poration shall make contributions at the same rates applicable to 
agencies of the Federal Government under the provisions referred 
to in this subsection. 
88 STAT. ] 
PUBLIC LAW 93-355-JULY 25, 1974 
381 
" is) The Corporation and its officers and employees shall be subject 
to the provisions of section 552 of title 5, United States Code (relating 
to freedom of information). 
POWERS, DUTIES, AND LIMITATIONS 
42 
use 2996e. 
D.C. 
Code 
29-
1001. 
"SEC. 1006. (a) To the extent consistent with the provisions of this 
title, the Corporation shall exercise the powers conferred upon a 
nonprofit corporation by the District of Columbia Nonprofit Corpora-
tion Act (except for section 1005 (o) of title 29 of the District of 
Columbia Code). In addition, the Corporation is authorized— 
"(1) (A) to provide financial assistance to qualified programs 
furnishing legal assistance to eligible clients, and to make grants 
to and contracts with— 
"(i) individuals, partnerships, firms, corporations, and 
nbnprofit organizations, and 
"(ii) State and local governments (only upon application 
by an appropriate State or local agency or institution and 
upon a special determination by the Board that the arrange-
ments to be made by such agency or institution will provide 
services which will not be provided adequately through non-
governmental arrangements), 
for the purpose of providing legal assistance to eligible clients 
imder this title, and (B) to make such other grants and contracts 
as are necessai-y to carry out the purposes and provisions of this 
title; 
"(2) to accept in the name of the Corporation, and employ or 
dispose of in furtherance of the purposes of this title, any money 
or property, real, personal, or mixed, tangible or intangible, 
received by gift, devise, bequest, or otherwise; and 
"(3) to undertake directly and not by grant or contract, the 
following activities relating to the delivery of legal assistance— 
"(A) research, 
"(B) training and technical assistance, and 
"(C) to serve as a clearinghouse for information. 
"(b) (1) The Corporation shall have authority to insure the com-
pliance of recipients and their employees with the provisions of this 
title and the rules, regulations, and guidelines promulgated pursuant 
to this title, and to terminate, after a hearing in accordance with sec-
tion 1011, financial support to a recipient which fails to comply. 
"(2) If a recipient finds that any of its employees has violated or Hiyir,!f/i°"f' 
caused the recipient to violate the provisions of this title or the rules, 
° " " " 
regulations, and guidelines promulgated pursuant to this title, the 
recipient shall take appropriate remedial or disciplinary action in 
accordance with the types of procedures prescribed in the provisions 
of section 1011. 
"(3) The Corporation shall not, under any provision of this title, 
interfere with any attorney in carrying out his professional respon-
sibilities to his client as established in the Canons of Ethics and the 
Code of Professional Responsibility of the American Bar Association 
(referred to collectively in this title as 'professional responsibilities') 
or abrogate as to attorneys in programs assisted under this title the 
authority of a State or other jurisdiction to enforce the standards of 
professional responsibility generally applicable to attorneys in such 
jurisdiction. The Corporation shall ensure that activities under this 
title are carried out in a manner consistent with attorneys' profes-
sional responsibilities. 
disciplinary 
action. 
382 
PUBLIC LAW 93-355-JULY 25, 1974 
[88 STAT. 
Restrictions. 
Rules and 
regulations. 
" (4) No attorney shall receive any compensation, either directly or 
indirectly, for the provision of legal assistance under this title unless 
such attorney is admitted or otherwise authorized by law, rule, or 
regulation to practice law or provide such assistance m the jurisdic-
tion where such assistance is initiated. 
"(5) The Corporation shall insure that (A) no employee of the 
Corporation or of any recipient (except as permitted by law in connec-
tion with such employee's own employment situation), while carrying 
out legal assistance activities under this title, engage in, or encourage 
others to engage in, any public demonstration or picketing, boycott, 
or strike; and (B) no such employee shall, at any time, engage in, or 
encourage others to engage in, any of the following activities: (i) any 
rioting or civil disturbance, (ii) any activity which is in violation of 
an outstanding injunction of any court of competent jurisdiction, 
(iii) any other illegal activity, or (iv) any intentional identification 
of the Corporation or any recipient with any political activity pro-
hibited by section 1007(a) (6). The Board, within ninety days after 
its first meeting, shall issue rules and regulations to provide for the 
enforcement of this paragraph and section 1007(a) (5), which rules 
shall include, among available remedies, provisions, in accordance 
with the types of procedures prescribed in the provisions of section 
1011, for suspension of legal assistance supported under this title, 
suspension of an employee of the Corporation or of any employee of 
any recipient by such recipient, and, after consideration of other 
remedial measures and after a hearing in accordance with section 1011, 
the termination of such assistance or employment, as deemed appro-
priate for the violation in question. 
"(6) In areas where significant numbers of eligible clients speak a 
language other than English as their principal language, the Corpo-
ration shall, to the extent feasible, provide that their principal lan-
guage is used in the provision of legal assistance to such clients under 
mis title. 
" (c) The Corporation shall not itself— 
" (1) participate in litigation on behalf of clients other than the 
Corporation; or 
"(2) undertake to influence the passage or defeat of any legis-
lation by the Congress of the United States or by any State or 
local legislative bodies, except that personnel of the Corporation 
may testify or make other appropriate communication (A) when 
formally requested to do so by a legislative body, a committee, 
or a member thereof, or (B) in connection with legislation or 
appropriations directly affecting the activities of the Corporation. 
" (d) (1) The Corporation shall have no power to issue any shares of 
stock, or to declare or pay any dividends. 
" (2) No part of the income or assets of the Corporation shall inure 
to the benefit of any director, officer, or employee, except as reasonable 
compensation for services or reimbursement for expenses. 
"(3) Neither the Corporation nor any recipient shall contribute 
or make available corporate funds or program personnel or equip-
ment to any political party or association, or the campaign of any 
candidate for public or party office. 
"(4) Neither the Corporation nor any re-cipient shall contribute or 
make available corporate funds or program personnel or equipment 
for use in advocating or opposing any ballot measures, initiatives, or 
referendums. However, an attorney may provide legal advice and 
representation as an attorney to any eligible client with respect to 
such client's legal rights. 
"(5) No class action suit, class action appeal, or amicus curiae class 
action may be undertaken, directly or through others, by a staff attor-
88 STAT. ] 
PUBLIC LAW 93-355-JULy 25, 1974 
383 
ney, except with the express approval of a project director of a recip-
ient in accordance with policies established by the governing body of 
such recipient. 
"(e) (1) Employees of the Corporation or of recipients shall not at 
any time intentionally identify the Corporation or the recipient with 
any partisan or nonpartisan political activity associated with a politi-
cal party or association, or the campaign of any candidate for public 
or party office. 
"(2) Employees of the Corporation shall be deemed to be State or 
local employees for purposes of chapter 1.5 of title 5, United States 
Code. 
"(f) If an action is commenced by the Corporation or by a recip-
ient and a final order is entered in favor of the defendant and against 
the Corporation or a recipient's plaintiff, the court may, upon motion 
by the defendant and upon a finding by the court that the action was 
commenced or pursued for the sole purpose of harassment of the 
defendant or that the Corporation or a recipient's plaintiff maliciously 
abused legal process, enter an order (which shall be appealable before 
being made final) awarding reasonable costs and legal fees incurred 
by the defendant in defense of the action, except when in contraven-
tion of a State law, a rule of court, or a statute of general applicabil-
ity. Any such costs and fees shall be directly paid by the Corporation. 
5 use 1501, 
Eligibility 
guidelines. 
GRANTS AND CONTRACTS 
"SEC. 1007. (a) With respect to grants or contracts in connection 
^^ ^^^ 2996f. 
with the provision of legal assistance to eligible clients under this 
title, the Corporation shall— 
"(1) insure the maintenance of the highest quality of service 
and professional standards, the preservation of attorney-client 
relationships, and the protection of the integrity of the adversary 
process from any impairment in furnishing legal assistance to 
eligible clients; 
"(2) (A) establish, in consultation with the Director of the le^.T^ermi^"^ 
Office of Management and Budget and with the Governors of nation! 
the several States, maximum income levels (taking into account 
family size, urban and rural differences, and substantial cost-of-
living variations) for individuals eligible for legal assistance 
under this title; 
"(B) establish guidelines to insure that eligibility of clients 
will be determined by recipients on the basis of factors which 
include— 
"(i) the liquid assets and income level of the client, 
"(ii) the fixed debts, medical expenses, and other factors 
which affect the client's ability to pay, 
"(iii) the cost of living in the locality, and 
"(iv) such other factors as relate to financial inability to 
afford legal assistance, which shall include evidence of a prior 
determination, which shall be a disqualifying factor, that 
such individual's lack of income results from refusal or 
unwillingness, without good cause, to seek or accept an 
employment situation; and 
"(C) establish priorities to insure that persons least able to 
afford legal assistance are given preference in the furnishing of 
such assistance; 
"(3) insure that grants and contracts are made so as to pro-
vide the most economical and effective delivery of legal assistance 
to persons in both urban and rural areas; 
" (4) insure that attorneys employed full time in legal assistance 
activities supported in major part by the Corporation refrain 
Priorities. 
384 
PUBLIC LAW 93-355-JULY 25, 1974 
[88 STAT. 
Restrictions on 
legal assistance 
attorneys. 
Review of ap-
peals, guidelines, 
establishment. 
Post, 
p. 38{ 
from (A) any compensated outside practice of law, and (B) any 
uncompensated outside practice of law except as authorized in 
guidelines promulgated by the Corporation; 
"(5) insure that no funds made available to recipients by the 
Corporation shall be used at any time, directly or indirectly, to 
influence the issuance, amendment, or revocation of any executive 
order or similar promulgation by any Federal, State, or local 
agency, or to undertake to influence the passage or defeat of any 
legislation by the Congress of the United States, or by any State 
or local legislative bodies, except where— 
"(A) representation by an attorney as an attorney for any 
eligible client is necessary to the provision of legal advice 
and representation with I'espect to such client's legal rights 
and responsibilities (which shall not be construed to permit 
a recipient or an attorney to solicit a client for the purpose 
of making such representation possible, or to solicit a group 
with respect to matters of general concern to a broad class of 
persons as distinguished from acting on behalf of any par-
ticular client) ; or 
"(B) a governmental agency, a legislative body, a com-
mittee, or a member thereof requests personnel of any 
recipient to make representations thereto; 
" (6) insure that all attorneys engaged in legal assistance activi-
ties supported in whole or in part by the (Corporation refrain, 
while so engaged, from— 
"(A) any political activity, or 
"(B) any activity to provide voters or prospective voters 
with transportation to the polls or provide similar assistance 
in connection with an election (other than legal advice and 
representation), or 
"(C) any voter registration activity (other than legal 
advice and representation) ; 
and insura that staff attorneys refrain at any time during the 
period for which they receive compensation under this title from 
the activities described in clauses (B) and (C) of this paragraph 
and from political activities of the type prohibited by section 
1502(a) of title 5, United States Code, whether partisan or 
nonpartisan; 
"(7) require recipients to establish guidelines, consistent with 
regulations promulgated by the Corporation, for a system for 
review of appeals to insure the efficient utilization of resources and 
to avoid frivolous appeals (except that such guidelines or regula-
tions shall in no way interfere with attorneys' professional 
responsibilities) ; 
"(8) insure that recipients solicit the recommendations of the 
organized bar in the community being served before filling staff 
attorney positions in any project funded pursuant to this title 
and give preference in filling such positions to qualified persons 
who reside in the community to be served; 
"(9) insure that every grantee, contractor, or person or entity 
receiving financial assistance under this title or predecessor 
authority under this Act which files with the Corporation a timely 
application for refunding is provided interim funding necessary 
to maintain its current level of activities until (A) the applica-
tion for refunding has been approved and funds pursuant thereto 
received, or (B) the application for refunding has been finally 
denied in accordance with section 1011 of this Act; and 
"(10) insure that all attorneys, while engaged in legal assist-
ance activities supported in whole or in part by the Corporation, 
refrain from the persistent incitement of litigation and any other 
88 STAT. ] 
PUBLIC LAW 93-355-JULY 25, 1974 
385 
activity prohibited by the Canons of Ethics and Code of Pro-
fessional Responsibility of the American Bar Association, and 
insure that such attorneys refrain from personal i-epresentation 
for a private fee in any cases in which they were involved while 
engaged in such legal assistance activities. 
"(b) No funds made available by the Corporation under this title, 
Funds, umita-
either by grant or contract, may be used— 
''°"^' 
" (1) to provide legal assistance with respect to any fee-generat-
ing case (except in accordance with guidelines promulgated by 
the Corporation), to provide legal assistance with respect to stny 
criminal proceeding, or to provide legal assistance in civil actions 
to persons who have been convicted of a criminal charge where 
the civil action arises out of alleged acts or failures to act and the 
action is brought against an officer of the court or against a law 
enforcement official for the purpose of challenging the validity 
of the criminal conviction; 
"(2) for any of the political activities prohibited in paragraph 
(6) of subsection (a) of this section ; 
"(3) to make grants to or enter into contracts with any private 
law firm which expends 50 percent or more of its resources and 
time litigating issues in the broad interests of a majority of the 
public; 
"(4) to provide legal assistance under this title to any uneman-
cipated person of less than eighteen years of age, exce :t (A) with 
the written request of one of such person's parents or guardians, 
(B) upon the request of a court of competent jurisdiction, (C) 
in child abuse cases, custody proceedings, persons in need of 
supervision (PINS) proceedings, or cases involving the initia-
tion, continuation, or conditions of institutionalization, or (D) 
where necessary for the protection of such person for the purpose 
of securing, or preventing the loss of, benefits, or securing, or 
preventing the loss or imposition of, services under law in cases 
not involving the child's parent or guardian as a defendant or 
respondent; 
"(5) to support or conduct training programs for the purpose 
of advocating particular public policies or encouraging political 
activities, labor or antilabor activities, boycotts, picketing, strikes, 
and demonstrations, as distinguished from the dissemination of 
information about such policies or activities, except that this 
provision shall not be construed to prohibit the training of attor-
neys or paralegal personnel necessary to prepare them to provide 
adequate legal assistance to eligible clients; 
"(6) to organize, to assist to organize, or to encourage to orga-
nize, or to plan for the creation or formation of, or the struc-
turing of, any organization, association, coalition, allianco, 
federation, confederation, or any similar entity, except for the 
provision of legal assistance to eligible clients in accordance with 
guidelines promulgated by the Corporation; 
"(7) to provide legal assistance with respect to any proceeding 
or litigation relating to the desegregation of any elementary or 
secondary school or school system; 
"(8) to provide legal assistance with respect to any proceeding 
or litigation which seeks to procure a nontherapeutic abortion or 
to compel any individual or institution to perform an abortion, or 
assist in the performance of an abortion, or provide facilities for 
the performance of an abortion, contrary to the religious beliefs 
or moral convictions of such individual or institution; or 
"(9) to provide legal assistance with respect to any proceeding 
or litigation arising out of a violation of the Military Selective 
Service Act or of desertion from the Armed Forces of the United 
so use app. 
States. 
^''-
386 
PUBLIC LAW 93-355-JULY 25, 1974 
[88 STAT. 
Governing 
board, member-
ship. 
Post, p. 390. 
Program evalu-
ation. 
Grant approval, 
public notifica-
tion. 
Staff-attorney 
program, study. 
"(c) In making grants or entering into contracts for legal assist-
ance, the Corporation shall insure that any recipient organized solely 
for the purpose of providing legal assistance to eligible clients is gov-
erned by a body at least 60 percent of which consists of attorneys 
who are members of the bar of a State in which the legal assistance is to 
be provided (except that the (Corporation (1) shall, upon application, 
grant waivers to permit a legal services program, supported under 
section 222(a) (3) of the Economic Opportunity Act of 1964, which 
on the date of enactment of this title has a majority of persons who are 
not attorneys on its policy-making board to continue such a non-
attorney majority under the provisions of this title, and (2) may 
grant, pursuant to regulations issued by the Corporation, such a waiver 
for recipients which, because of the nature of the population they 
serve, are unable to comply with such requirement) and which include 
at least one individual eligible to receive legal assistance under this 
title. Any such attorney, while serving on such board, shall not receive 
compensation from a recipient. 
"(d) The Corporation shall monitor and evaluate and provide for 
independent evaluations of programs supported in whole or in part 
under this title to insure that the provisions of this title and the bylaws 
of the Corporation and applicable rules, regulations, and guidelines 
pi-omul 
gated pursuant to this title are carried out. 
"(e) The president of the Corporation is authorized to make grants 
and enter into contracts under this title. 
"(f) At least thirty days prior to the approval of any grant applica-
tion or prior to entering into a contract or prior to the initiation of any 
other project, the Corporation shall announce publicly, and shall 
notify the Governor and the State bar association of any State where 
legal assistance will thereby be initiated, of such grant, contract, or 
project. Notification shall include a reasonable description of the grant 
application or proposed contract or project and request comments and 
recommendations. 
" (g) The Corporation shall provide for comprehensive, independent 
study of the existing staff-attorney program under this Act and, 
through the use of appropriate demonstration projects, of alternative 
and supplemental methods of delivery of legal services to eligible 
clients, including judicare, voucher's, prepaid legal insurance, and con-
tracts with law firms; and, based upon the results of such study, shall 
make i-ecommendations to the President and the Congress, not later 
than two years after the first meeting of the Board, concerning 
improvements, changes, or alternative methods for the economical and 
effective delivery of such services. 
42 u s e 2996g. 
Annual report 
to President and 
Congress. 
"RECORDS AND REPORTS 
"SEC. 1008. (a) The Corporation is authorized to require such 
reports as it deems necessary from any grantee, contractor, or person 
or entity receiving financial assistance under this title regarding activi-
ties carried out pursuant to this title. 
"(b) The Corporation is authorized to prescribe the keeping of rec-
ords with respect to funds provided by grant or contract and shall 
have access to such records at all reasonable times for the purpose 
of insuring compliance with the grant or contract or the terms and 
conditions upon which financial assistance was provided. 
"(c) The Corporation shall publish an annual report which shall be 
filed by the Corporation with the President and the Congress. 
"(d) Copies of all reports pertinent to the evaluation, inspection, 
or monitoring of any grantee, contractor, or person or entity receiving 
financial assistance under this title shall be submitted on a timely basis 
to such grantee, contractor, or person or entity, and shall be maintained 
88 STAT. ] 
PUBLIC LAW 93-355-JULY 25, 1974 
387 
in the principal office of the Corporation for a period of at least five 
years subsequent to such evaluation, inspection, or monitoring. Such 
reports shall be available for public inspection during regular business 
hours, and copies shall be furnished, upon request, to interested parties 
upon payment of such reasonable fees as the Corporation may establish. 
"(e) The Corporation shall afford notice and reasonable opportu-
nity for comment to interested parties prior to issuing rules, regula-
tions, and guidelines, and it shall publish in the Federal Register at 
least 30 days prior to their effective date all its rules, regulations, guide-
lines, and instructions. 
"AUDITS 
"SEC. 1009. (a) (1) The accounts of the Corporation shall be audited 
annually. Such audits shall be conducted in accordance with generally 
accepted auditing standards by independent certified public account-
ants who are certified by a regulatory authority of the jurisdiction in 
which the audit is undertaken. 
"(2) The audits shall be conducted at the place or places where the 
accounts of the Corporation are normally kept. All books, accounts, 
financial records, reports, files, and other papers or property belonging 
to or in use by the Corporation and necessary to facilitate the audits 
shall be made available to the person or persons conducting the audits; 
and full facilities for verifying transactions with the balances and 
securities held by depositories, fiscal agents, and custodians shall be 
afforded to any such person. 
"(3) The report of the annual audit shall be filed with the General 
Accounting Office and shall be available for public inspection during 
business hours at the principal office of the Corporation. 
"(b) (1) In addition to the annual audit, the financial transactions 
of the Corporation for any fiscal year during which Federal funds 
are available to finance any portion of its operations may be audited 
by the General Accounting Office in accordance with such rules and 
regulations as may be prescribed by the Comptroller General of the 
United States. 
"(2) Any such audit shall be conducted at the place or places where 
accounts of the Corporation are normally kept. The representatives 
of the Goneral Accounting Office shall have access to all books, 
accounts, financial records, reports, files, and other papers or property 
belongi]ig to or in use by the Corporation and necessary to facilitate 
the audit; and full facilities for verifying transactions with the 
balances and securities held by depositories, fiscal agents, and cus-
todians shall be afforded to such representatives. All such books, 
accounts, financial records, reports, files, and other papers or property 
of the Corporation shall remain in the possession and custody of the 
Corporation. 
" (3) A report of such audit shall be made by the Comptroller General 
to the Congress and to the President, together with such recommenda-
tions with respect thereto as he shall deem advisable. 
"(c)(1) The Corporation shall conduct, or require each grantee, 
contractor, or person or entity receiving financial assistance under this 
title to provide for, an annual financial audit. The report of each such 
audit shall be maintained for a period of at least five years at the 
l^rincipal office of the Corporation. 
"(2) The Corporation shall submit to the Comptroller General of 
the United States copies of such reports, and the Comptroller General 
may, in addition, inspect the books, accounts, financial records, files, 
and other papers or property belonging to or in use by such grantee, 
contractor, or person or entity, which relate to the disposition or use 
of funds received from the Corporation. Such audit reports shall be 
available for public inspection, during regular business hours, at the 
principal office of the Corporation. 
Public 
federal 
ation in 
Register. 
42 u s e 2996h. 
Audit report, 
submittal to GAG. 
GAO audit. 
Records, acces-
sibility. 
Report to 
Congress and 
President. 
Audit reports, 
public inspection. 
388 
PUBLIC LAW 93-355-JULY 25, 1974 
[88 STAT. 
Attorneyc lient 
privilege. 
"(d) Notwithstanding the provisions of this section or section 1008, 
neither the Corporation nor the Comptroller General shall have access 
to any reports or records subject to the attorney-client privilege. 
Appropriation. 
42 u s e 2996i. 
Funds, avail-
ability. 
Non-Federal 
funds. 
FINANCING 
"SEC. 1010. (a) There are authorized to be appropriated for the 
purpose of carrying out the activities of the Corporation, $90,000,000 
for fiscal year 1975, $100,000,000 for fiscal year 1976, and such sums 
as may be necessary for fiscal year 1977. The first appropriation may 
be made available to the Corporation at any time after six or more 
members of the Board have been appointed and qualified. Appropria-
tions shall be for not more than two fiscal years, and, if for more than 
one year, shall be paid to the Corporation in annual installments at the 
beginning of each fiscal year in such amounts as may be specified in 
appropriation Acts. 
"(b) Funds appropriated pursuant to this section shall remain 
available until expended. 
"(c) Non-Federal funds received by the Corporation, and funds 
received by any recipient from a source other than the Corporation, 
shall be accounted for and reported as receipts and disbursements 
separate and distinct from Federal funds; but any funds so received 
for the provision of legal assistance shall not be expended by recipients 
for any purpose prohibited by this title, except that this provision 
shall not be construed to prevent recipients from receiving other pub-
lic funds or tribal funds (including foundation funds benefiting 
Indians or Indian tribes) and expending them in accordance with 
the purposes for which they are provided, or to prevent contracting 
or making other arrangements with private attorneys, private law 
firms, or other State or local entities of attorneys, or with legal aid 
societies having separate public defender programs, for the provision 
of legal assistance to eligible clients under this title. 
SPECIAL LIMITATIONS 
42 use 2996J. 
"SEC. 1011. The Corporation shall prescribe procedures to insure 
that— 
" (1) financial assistance under this title shall not be suspended 
unless the grantee, contractor, or person or entity receiving finan-
cial assistance under this title has been given reasonable notice 
and opportunity to show cause why such action should not be 
taken; and 
" (2) financial assistance under this title shall not be terminated, 
an application for refunding shall not be denied, and a suspension 
of financial assistance shall not be continued for longer than thirty 
days, unless the grantee, contractor, or person or entity receiving 
financial assistance under this title has been afforded reasonable 
notice and opportunity for a timely, full, and fair hearing. 
u 
Support func-
tions. 
42 use 2996k. 
COORDINATION 
"SEC. 1012. The President may direct that appropriate support func-
tions of the Federal Government may be made available to the Cor-
poration in carrying out its activities under this title, to the extent 
not inconsistent with other applicable law. 
42 use 2996Z. 
RIGHT TO REPEAL, ALTER, OR AMEND 
"SEC. 1013. The right to repeal, alter, or amend this title at any 
time is expressly reserved. 
88 STAT. ] 
PUBLIC LAW 93-355-JULY 25, 1974 
389 
42 u s e 2996 
note. 
SHORT TITLE 
"SEC. 1014. This title may be cited as the 'Legal Services Corpora-
tion Act'.". 
TRANSITION PROVISIONS 
SEC. 3. (a) Notwithstanding any other provision of law, effective 
"
^
^ use 2996b 
ninety days after the date of the first meeting of the Board of "° ^
* 
Directors of the Legal Services Corporation established under the 
Legal Services Corporation Act (title X of the Economic Opportunity 
Act of 1964, as added by this Act), the Legal Services Corporation 
^"*^' P- ^''^' 
shall succeed to all rights of the Federal Government to capital 
equipment in the possession of legal services programs or activities 
assisted pursuant to section 222(a) (3), 230,232, or any other provision 
of the Economic Opportunity Act of 1964. , 
42 use 2809, 
(b) Within ninety days after the first meeting of the Board, all ^^^^' ^^^^' 
assets, liabilities, obligations, property, and records as determined by 
the Director of the Office of Management and Budget, in consultation 
with the Director of the Office of Economic Opportunity or the head 
of any successor authority, to be employed directly or held or used 
primarily, in connection with any function of the Director of the Office 
of Economic Opportunity or the head of any successor authority in 
carrying out legal services activities under the Economic Opportunity 
Act of 1964, shall be transferred to the Corporation. Personnel trans- 
42 use 2701 
ferred to the Corporation from the Office of Economic Opportunity or 
any successor authority shall be transferred in accordance with appli-
cable laws and regulations, and shall not be reduced in compensation 
for one year after such transfer, except for cause. The Director of the 
Office of Economic Opportunity or the head of any successor authority 
shall take whatever action is necessary and reasonable to seek suitable 
employment for personnel who do not transfer to the Corporation. 
(c) Collective-bargaining agreements in effect on the date of enact-
ment of this Act covering employees transferred to the Corporation 
shall continue to be recognized by the Corporation until the termina-
tion date of such agreements, or until mutually modified by the parties. 
(d) (1) Notwithstanding any other provision of law, the Director 
of the Office of Economic Opportunity or the head of any successor 
authority shall take such-action as may be necessary, in cooperation 
with the president of the Legal Services Corporation, including the 
provision (by grant or otherwise) of financial assistance to recipients 
and the Corporation and the furnishing of services and facilities to 
the Corporation— 
(A) to assist the Corporation in prej^aring to undertake, and in 
the initial undertaking of, its responsibilities under this title; 
(B) out of appropriations available to him, to make funds 
available to meet the organizational and administrative expenses 
of the Corporation ; 
(C) within ninety days after the first meeting of the Board, 
to transfer to the Corporation all unexpended balances of funds 
appropriated for the purpose of carrying out legal services pro-
grams and activities under the Economic Opportunity Act of 
1964 or successor authority; and 
(D) to arrange for the orderly continuation by such Corpora-
tion of financial assistance to legal services programs and activi-
ties assisted pursuant to the Economic Opportunity Act of 1964 
or successor authority. 
Whenever the Director of the Office of Economic Opportunity or the 
head of any successor authority determines that an obligation to pro-
vide financial assistance pursuant to any contract or grant for such 
38-194 O - 76 - 28 Pt. 1 
CEO Director, 
assistance. 
390 
PUBLIC LAW 93-356-JULY 25, 1974 
[88 STAT. 
Repeal; effec-
tive date. 
42 use 2809 
and note. 
Appropriation. 
42 use 2996b 
note. 
42 u s e 2971e. 
Ante, p. 378. 
legal services will extend beyond six months after the date of enact-
ment of this Act, he shall include, in any such contract or grant, pro-
visions to assure that the obligation to provide such financial assistance 
may be assumed by the Legal Services Corporation, subject to such 
modifications of the terms and conditions of such contract or grant 
as the Corporation determines to be necessary. 
(2) Section 222(a)(3) of the Economic Opportunity Act of 1964 
is repealed, effective ninety days after the first meeting of the Board 
of Directors of the Legal Services Corporation. 
(e) There are authorized to be appropriated for the fiscal year end-
ing June 30, 19Y5, such sums as may be necessary for carrying out 
this section. 
(f) Title VI of the Economic Opportunity Act of 1964 is amended 
by inserting after section 625 thereof the following new section: 
u 
INDEPENDENCE OF LEGAL SERVICES CORPORATION 
"SEC. 626. Nothing in this Act, except title X, and no reference to 
this Act unless such reference refers to title X, shall be construed to 
affect the powers and activities of the Legal Services Corporation.". 
Approved July 25, 1974. 
July 25,1974 
[S.3311] 
Public Law 93-356 
AN ACT 
To provide for the use of simplified procedures in the procurement of property 
and services by the Government where the amount involved does not exceed 
$10,000. 
Government 
property procure-
ment and serv-
ices. 
Simplified pro-
cedures. 
D.e. eode 
1-808. 
Be it enacted by the /Senate and House of Representatives 
of the 
United States of America in Congress 
assembled, 
SECTION 1. Section 3709 of the Revised Statutes, as amended (41 
U.S.C. 5), is amended by striking out "$2,500" and inserting in lieu 
thereof "$10,000". 
SEC. 2. The third full unnumbered paragraph under the heading 
"Office of Architect of the Capitol" contained in the appropriations for 
the Architect of the Capitol in the Legislative Branch Appropriation 
Act, 1966 (79 Stat. 276; 41 U.S.C. 6a-l) is amended by striking out 
"$2,500" and inserting in lieu thereof "$10,000". 
SEC, 3. Section 302(c) (3) of the Federal Property and Adminis-
trative Services Act of 1949, as amended (41 U.S.C. 252(c)(3)) is 
amended by striking out "$2,500" and inserting in lieu thereof 
"$10,000". 
SEC. 4. 
amended 
"$10,000". 
(b) Section 2304(g) of such title is amended by striking out 
"$2,500" and inserting in lieu thereof "$10,000". 
SEC. 5. Section 9(b) of the Tennessee Valley Authority Act of 1933, 
as amended (16 U.S.C. 831h(b) (3)) is amended by striking out "$500" 
and inserting in lieu thereof "$10,000". 
Approved July 25, 1974. 
(a) Section 2304(a) (3) of title 10, United States Code, is 
by striking out "$2,500" and inserting in lieu thereof