Proposed New and Revised Rules Related to Grants Administration

Proposed New and Revised Rules Related to Grants Administration

The State Bar seeks comment on recommended changes to Rules of the State Bar governing funds administered by the Legal Services Trust Fund Commission (LSTFC) to support free civil legal services to indigent persons in California.

Deadline: July 14, 2025, 11:59 p.m. (45 days)

Direct comments to

Comments should be submitted using the online Public Comment Form. The online form allows you to input your comments directly.

Background

The Legal Services Trust Fund Commission (LSTFC) is charged with administration and oversight of grant funds that pass through the State Bar to support civil legal aid in California. As part of these obligations, the LSTFC determines eligibility for grant funding and monitors grant compliance among recipient organizations. Since 2023, the LSTFC Rules committee has reviewed the rules and practices related to fiscal standards maintained by the State Bar and its grant recipient organizations, as well as other compliance measures.

Each proposal included here has gone from a working group comprised of State Bar staff and LSTFC members to the LSTFC’s Rules Committee. Stakeholders—in particular, members of the legal aid community—were invited to comment directly in writing or at the LSTFC’s public meetings before these rules were recommended for release for public comment.

Discussion/proposal

The proposed rules and amendments aim to address questions related to:

  • State Bar grant expenditure deductions on the annual IOLTA/EAF application;
  • Unspent and relinquished grant funds;
  • Audited/reviewed financial statement findings;
  • Grant award reductions or terminations;
  • Carryovers and budget modifications;
  • Other expenditure deductions (passthrough funds, exchanged funds, county expenditures, nonqualifying activities);
  • The definitions of fiscal standards and internal controls, as well as program quality and internal controls and noncompliance; and
  • Expectations related to monitoring visit outcomes.

Through the codification process, the LSTFC seeks to improve clarity, fairness, and efficiency in grantmaking as well as oversight of State Bar funds. This group of topics was intentionally held and presented together to allow for a holistic review of proposed rule changes affecting fiscal and related standards during the public comment period.

The LSTFC is charged with recommending rules regarding grant eligibility and administration (Business and Professions Code, section 6210.5(e)). Under that same statute, the Board of Trustees shall approve such recommended rule changes unless they conflict with the State Bar’s statutory, fiduciary, or legal obligations. Consequently, the LSTFC welcomes all comments and is especially interested in comments concerning the State Bar’s relevant statutory, fiduciary, and legal obligations.

Any fiscal/personnel impact

N/A

Background material
Source

Legal Services Trust Fund Commission

Deadline

July 14, 2025, 11:59 p.m.

Direct comments to

Comments should be submitted using the online Public Comment Form. The online form allows you to input your comments directly.