Rule III-5 Dues Expenditure Policy, Objection(s) to Expenditure(s)

to Expenditure(s).

(a) Board Policy Concerning Expenditure of Dues. It is the general policy of the Board to restrict the disbursement of dues to expenditures necessarily or reasonably incurred for the purpose of regulating the legal profession in Alaska or improving the quality of legal services available to the people of Alaska. These expenditures are considered “chargeable” within the meaning of Keller v. State Bar of California, 496 U.S. 1, 110 L.Ed.2d 1, 110 S.Ct. 2228 (1990). To the extent that any member objects to the disbursement of dues for reason that the member believes the expenditure to be “nonchargeable”, the member must file an objection as provided in subparagraphs (d) and (e). However, the Board, upon a vote of three quarters of the members of the full Board, may approve the disbursement of dues for expenditures which are considered “nonchargeable” within the meaning of Keller v. State Bar of California. If the Board disburses funds for “nonchargeable” expenditures, notice of the expenditure(s) shall be given in an official publication of the Bar. A member may request, in writing to the Executive Director, an appropriate dues refund within sixty

(60) days of such notice. The dues refund, which shall be determined by the Board, shall be limited to that pro-rata amount of a member’s dues reasonably related to any costs actually incurred with regard to the “nonchargeable” activity. To the extent that any member objects to the determination of the amount of the expenditure, the member must proceed under subparagraph (e).

(b) Publication of Annual Budget. Following approval by the Board, the annual budget of the Bar shall be published in the official publication of the Bar, and shall otherwise be distributed to ensure notice to all dues-paying members. In addition, copies of the approved annual budget shall be available to members upon request.

(c) Information in Dues Notices. Dues notices sent to members shall reference: (1) the publication of the annual budget of the Bar in the official publication of the Bar and advise members that they may obtain a copy of the budget upon request, and (2) that members may review the approved minutes of the Board at the Bar office and obtain a copy of the approved minutes upon request.

(d) Time for Filing Objection(s). A member’s objection to the expenditure of dues by the Board must be received by the Executive Director or postmarked within sixty (60) days of the publication of the Board action in the official publication of the Bar.

(e) Arbitration of Objection(s) to Expenditure(s). Upon receipt of a timely objection to an expenditure, the President of the Board shall appoint a hearing master to consider the objection, utilizing the procedures provided in Bar Rule 7. All objections to expenditure(s) shall be consolidated in a single proceeding, where possible. The Bar shall have the burden of proving by a preponderance of the evidence that the expenditure(s) objected to are “chargeable.” In addition, the President shall direct the Executive Director to determine the amount of the expenditure(s) reasonably in dispute involving the objecting member(s) and shall order that amount to be held in an interest-bearing escrow account pending final determination by the Board, or if appealed, by the Alaska Supreme Court. If the hearing master determines that an objection to an expenditure has been frivolously made, the hearing master may assess costs associated with the proceeding against the member(s) filing the frivolous objection(s). ARTICLE IV. BOARD OF GOVERNORS