’WPCź žExoXMÄõP„ą²(*“ģPɌe:ŲZČŁSĀņŒX¾“€¬¦% D ¶ƒmÉ+Pä‚nōĮ›«ž/”[/MVŌŃLÆG IćĒRåŁ­€c‹›“ߑ>r“6D06ØōŻ ū¼Pe Kƒ ĶŁ'ķߓvļ0”ī‘*ļ—RÄ0ń¤*v’(8ļqĶ½ś!ō„ƒVā€ĄāćÆȃĄ|Žg ®į (ļ†PØó\{V/-)QK!ė·ó‹(Ž±ŽŌGŠśokŒČ‡{5żµ÷<ķēśCŒ&•=ūxGźŗ,W5< Ÿ@”DCU]ōZNcsHŪŽ(#(# ŠRobert€D.€Klein,€Esq.ą0 h ąą0Ąh(#h(#ąą0Ą(#Ą(#ąSen.€Norman€R.€Stone,€Jr.Šd(#(# ŠJ.€Brooks€Leahy,€Esq.ą0 h ąą0Ąh(#h(#ąą0Ą(#Ą(#ąDel.€Joseph€F.€Vallario,€Jr.Šź:(#(# ŠZakia€Mahasa,€Esq.ą0  ąą0h(#(#ąą0Ąh(#h(#ąą0Ą(#Ą(#ąRobert€A.€Zarnoch,€Esq.ŠĄ(#(# ŠTimothy€F.€Maloney,€Esq.Š –ę ŠĢĢą  ąIn€attendance:Š h ŠĢSandra€F.€Haines,€Esq.,€ReporterŠ Ä ŠSherie€B.€Libber,€Esq.,€Assistant€ReporterŠ šź ŠGeorge€Perry,€Rules€Committee€InternŠ pĄ  ŠSteve€Casey,€Esq.Š F –! ŠSusan€M.€Erlichman,€Esq.,€Executive€Director,€Maryland€LegalŠ !l" Š€€Services€CorporationŠ ņ!B# ŠCynthia€DiPasquale,€The€Daily€RecordŠ Č"$ ŠMichael€L.€Jeffers,€Esq.,€Legal€Aid€Bureau,€Inc.Š ž#ī% ŠSharon€E.€Goldsmith,€Esq.,€Pro€Bono€Resource€Center€of€MarylandŠ t$Ä& ŠHarriet€Robinson,€Esq.,€Maryland€Legal€Services€CorporationŠ J%š ' ŠEdward€J.€Gilliss,€Esq.,€Royston,€Mueller,€McLean€&€ReidŠ  &p!( ŠYoanna€Moisides,€Esq.,€University€of€Baltimore€School€of€LawŠ ö&F") ŠCheryl€L.€Hystad,€Esq.,€Legal€Aid€Bureau,€Inc.Š Ģ'#* ŠRussell€P.€Butler,€Esq.,€Maryland€Crime€Victims€Resource€CenterŠ ¢(ņ#+ ŠDeniece€Fields,€AARP€MarylandŠ x)Č$, ŠCatherine€E.€Stavely,€Esq.Š N*ž%- ŠD.€Robert€Enten,€Esq.,€Gordon,€Feinblatt,€Rothman,€Hoffberger,€&Š $+t&. Š€€Hollander,€LLCŠ ś+J'/ ŠSteven€H.€Brownlee,€Esq.,€Vice€President,€Chevy€Chase€BankŠ Š, (0 ŠŠ  ¦-ö(1 ŠŃ€/VŃGordon€M.€Cooley,€Esq.,€Mercantile€Bankshares€CorporationŠ ° ŠKenneth€F.€Krach,€Esq.,€M€&€T€BankŠ †Ö ŠKathleen€M.€Murphy,€President,€Maryland€Bankers€AssociationŠ \¬ ŠMaureen€McAten,€MD/DC€Credit€Union€AssociationŠ 2‚ ŠHerbert€S.€Garten,€Esq.Š X ŠJoseph€Surkiewicz,€Esq.,€Legal€Aid€Bureau,€Inc.Š Ž. ŠDorothy€Lennig,€Esq.,€House€of€RuthŠ “  ŠVeronica€Jones,€Esq.,€Legal€Officer,€Court€of€AppealsŠ Š Ś ŠDavid€R.€Durfee,€Jr.,€Esq.,€Executive€Director,€Legal€Affairs,Š ` ° Š€€Administrative€Office€of€the€CourtsŠ 6 †  ŠJoseph€K.€Pokempner,€Esq.,€Legal€Services,€Administrative€OfficeŠ  \  Š€€of€the€CourtsŠ ā 2  ŠWilhelm€Joseph,€Esq.,€Legal€Aid€Bureau,€Inc.Š ø  ŠĢĢÓÓą  ąThe€Chair€convened€the€meeting.Š :Š  Šą  ąThe€Reporter€introduced€George€Perry,€a€summer€intern€forŠ ę6 Šthe€Rules€Committee,€who€is€a€student€at€the€University€ofŠ ’ā ŠBaltimore€School€of€Law.€€He€is€available€to€do€research€for€theŠ >Ž Šsubcommittees.Š ź: Šą  ąThe€Chair€told€the€Committee€that€this€would€be€the€lastŠ –ę Šmeeting€that€Judge€Dryden€would€attend€in€his€capacity€as€aŠ B’ ŠDistrict€Court€judge,€because€he€will€be€retiring€from€the€bench.Š ī> ŠHis€term€on€the€Committee€has€not€expired,€and€the€hope€is€thatŠ šź Šhe€will€continue€to€serve€as€a€judge€ņņemeritusóó.€€The€Chair€saidŠ F –! Šthat€Judge€Dryden€has€been€an€excellent€judge,€administrativeŠ ž!N# Šjudge,€and€member€of€the€Committee.€€The€Chair€thanked€JudgeŠ Ŗ#ś% ŠDryden€for€his€service.€€Judge€Dryden€responded€that€he€hadŠ V%¦ ' Šenjoyed€serving€on€the€Committee.Š 'R") Šą  ąThe€Chair€said€that€Master€Mahasa€had€a€resolution€to€readŠ ®(ž#+ Što€the€Committee€before€Agenda€Items€1€and€2€are€considered.€Š Z*Ŗ%- ŠMaster€Mahasa€told€the€Committee€that€she€is€a€member€of€the€BarŠ ,V'/ ŠAssociation€for€Baltimore€City.€€Under€the€leadership€of€MarkŠ ²-)1 ŠScurti,€Esq.,€the€Executive€Council€of€the€Bar€Association€ofŠ ° ŠBaltimore€City€adopted€the€following€resolution:€€Š \¬ ŠŅ` °ŅŅ` °ŅÓÓĢą@0 0 ģąBAR€ASSOCIATION€OF€BALTIMORE€CITYˆŠ Ž. Šą@šš"ģąEXECUTIVE€COUNCILˆŠ “  ŠĢņ ņRESOLVEDó ó,€that€the€Bar€Association€ofŠ ` ° ŠBaltimore€City€supports€the€adoption€of€anŠ D ”  ŠššIOLTA€Comparability€Rulešš€to€ensure€thatŠ  j  ŠMaryland€attorneys€earn€no€less€on€IOLTAŠ š @  Šaccounts€than€the€rates€of€return€generallyŠ Ę  Špaid€to€the€financial€institutionššs€non„IOLTAŠ œģ  Šcustomers€on€comparable€accounts€when€theŠ rĀ  ŠIOLTA€account€meets€or€exceeds€the€sameŠ H˜  Šminimum€balance€and€other€eligibilityŠ n  Šrequirements.Š ōD Šņ ņĢBE€IT€FURTHER€RESOLVEDņņó óóó,€that€the€BarŠ ®ž ŠAssociation€of€Baltimore€City€encourages€theŠ ’ā ŠMaryland€Rules€Committee€to€enact€the€IOLTAŠ hø ŠComparability€Rule€as€proposed.Š >Ž ŠĢĢŅ°` ŅŅ°` ŅÓÓą  ąThe€Chair€stated€that€a€number€of€guests€were€interested€inŠ Ą ŠAgenda€Items€1€and€2.€€He€said€that€Agenda€Item€2€would€beŠ l¼ Šconsidered€first.€€Š h ŠÓÓĢAgenda€Item€2.€€Ō‡XūøXXXūøŌConsideration€of€proposed€amendments€to:€€Rule€Š šź  Š€€2„645€(Garnishment€of€Property€„€Generally)€and€Rule€3„645Š p Ą! Š€€(Garnishment€of€Property€„€Generally)Š F!–" Š_________________________________________________________________Š "l# ŠŌ#†XūøXXXūøŌ#ŌĢĢÓÓą  ąMr.€Bowen€presented€Rules€2„645,€Garnishment€of€Property€„Š ž$ī& ŠGenerally,€and€3„645,€Garnishment€of€Property€€„€Generally,€forŠ J&š!( Šthe€Committeeššs€consideration.€Š ö'F#* ŠĢŅ` °ŅŅ` °ŅÓÓŌ‡XūøXXXūøŌ€€ą@˜ ˜ ģąMARYLAND€RULES€OF€PROCEDUREˆŠ N+ž&. ŠĢą@P P ģąTITLE€2€„€CIVIL€PROCEDURE€š!š€CIRCUIT€COURTˆŠ ś,J(0 ŠĢą@ÄÄģąCHAPTER€600€„€JUDGMENTˆŠ ¦.ö)2 Š‡ą ø ąAMEND€Rule€2„645€to€direct€the€garnisheeŠ ° Šnot€to€attach,€freeze,€or€place€a€hold€onŠ †Ö Šcertain€funds€and€to€require€the€garnishee€toŠ \¬ Šassert€a€defense€on€behalf€of€the€judgmentŠ 2‚ Šdebtor€under€certain€circumstances,€asŠ X Šfollows:Š Ž. ŠĢĢRule€2-645.€€GARNISHMENT€OF€PROPERTY€„Š ` ° ŠGENERALLY€Š 6 †  ŠĢĢ€€€.€.€.Š ø  ŠĢ€€(c)€€ContentŠ d“  ŠĢą ø ą€€The€writ€of€garnishment€shall:€€Š `  ŠĢ€€€€(1)€contain€the€information€in€theŠ ¼  Šrequest,€the€name€and€address€of€the€personŠ ’ā Šrequesting€the€writ,€and€the€date€of€issue,€€€Š hø ŠĢ€€€€(2)€direct€the€garnishee€to€hold,€subjectŠ d Što€further€proceedings,€the€property€of€eachŠ ź: Šjudgment€debtor€in€the€possession€of€theŠ Ą Šgarnishee€at€the€time€of€service€of€the€writŠ –ę Šand€all€property€of€each€debtor€that€may€comeŠ l¼ Šinto€the€garnishee's€possession€after€serviceŠ B’ Šof€the€writņņ,€except€as€provided€in€subsectionŠ h Š(c)(6)€of€this€Ruleóó,€€Š ī> Š€€Š Ä Š€€€€(3)€notify€the€garnishee€of€the€timeŠ šź Šwithin€which€the€answer€must€be€filed€andŠ pĄ  Šthat€the€failure€to€do€so€may€result€inŠ F –! Šjudgment€by€default€against€the€garnishee,€€Š !l" ŠĢ€€€€(4)€notify€the€judgment€debtor€andŠ Č"$ Šgarnishee€that€federal€and€state€exemptionsŠ ž#ī% Šmay€be€available,€€Š t$Ä& ŠĢ€€€€(5)€notify€the€judgment€debtor€of€theŠ  &p!( Šright€to€contest€the€garnishment€by€filing€aŠ ö&F") Šmotion€asserting€a€defense€or€objectionņ ņ.ó óņņ,óóŠ Ģ'#* ŠĢ€€€€ņņ(6)€direct€the€garnishee€not€to€attach,Š x)Č$, Šfreeze,€or€place€a€hold€on€funds€consistingŠ N*ž%- Šsolely€of€those€that€are€depositedŠ $+t&. Šelectronically€with€the€garnishee€on€aŠ ś+J'/ Šrecurring€basis€and€that€are€readilyŠ Š, (0 Šidentifiable€as€exempt€from€levy,€execution,Š ¦-ö(1 Šor€attachment€under€state€or€federal€law.óóŠ |.Ģ)2 Š‡€€€.€.€.Š ° ŠĢ€€(e)€€Answer€of€GarnisheeŠ \¬ ŠĢą ø ą€€The€garnishee€shall€file€an€answerŠ X Šwithin€the€time€provided€by€Rule€2-321.€€TheŠ Ž. Šanswer€shall€admit€or€deny€that€the€garnisheeŠ “  Šis€indebted€to€the€judgment€debtor€or€hasŠ Š Ś Špossession€of€property€of€the€judgment€debtorŠ ` ° Šand€shall€specify€the€amount€and€nature€ofŠ 6 †  Šany€debt€and€describe€any€property.€€TheŠ  \  Šgarnishee€may€assert€any€defense€that€theŠ ā 2  Šgarnishee€may€have€to€the€garnishment,€asŠ ø  Šwell€as€any€defense€that€the€judgment€debtorŠ ŽŽ  Šcould€assert.€€ņņThe€garnishee€shall€assert€aŠ d“  Šdefense€on€behalf€of€the€judgment€debtor€ifŠ :Š  Šthe€garnishee€holds€funds€consisting€solelyŠ `  Šof€those€that€are€deposited€electronicallyŠ ę6 Šwith€the€garnishee€on€a€recurring€basis€andŠ ¼  Šthat€are€readily€identifiable€as€exempt€fromŠ ’ā Šlevy,€execution,€or€attachment€under€state€orŠ hø Šfederal€law.óó€€After€answering,€the€garnisheeŠ >Ž Šmay€pay€any€garnished€indebtedness€into€courtŠ d Šand€may€deliver€to€the€sheriff€any€garnishedŠ ź: Šproperty,€which€shall€then€be€treated€as€ifŠ Ą Šlevied€upon€by€the€sheriff.€€A€garnishee€whoŠ –ę Šhas€filed€an€answer€admitting€indebtedness€toŠ l¼ Šthe€judgment€debtor€or€possession€of€propertyŠ B’ Šof€the€judgment€debtor€is€not€required€toŠ h Šfile€an€amended€answer€solely€because€of€anŠ ī> Šincrease€in€the€garnishee's€indebtedness€toŠ Ä Šthe€judgment€debtor€or€the€garnishee'sŠ šź Šreceipt€of€additional€property€of€the€debtor.€Š pĄ  ŠĢ€€€.€.€.Š !l" ŠĢŅ°` ŅŅ°` Ņą  ąRule€2„645€was€accompanied€by€the€following€Reporterššs€Note.Š Č"$ ŠĢŅ` °ŅŅ` °Ņą ø ąAt€the€suggestion€of€the€Legal€AidŠ t$Ä& ŠBureau,€Inc.€and€others,€amendments€to€RulesŠ J%š ' Š2„645€and€3„645€are€proposed€that€direct€aŠ  &p!( Šgarnishee€not€to€š šattach,€freeze,€or€place€aŠ ö&F") Šhold€on€funds€consisting€solely€of€those€thatŠ Ģ'#* Šare€deposited€electronically€with€theŠ ¢(ņ#+ Šgarnishee€on€a€recurring€basis€and€that€areŠ x)Č$, Šreadily€identifiable€as€exempt€from€levy,Š N*ž%- Šexecution,€or€attachment€under€state€orŠ $+t&. Šfederal€law.šš€€The€proposed€amendments€alsoŠ ś+J'/ Šrequire€the€garnishee€to€assert€a€defense€onŠ Š, (0 Šbehalf€of€the€judgment€debtor€if€the€funds€itŠ ¦-ö(1 Šholds€are€in€this€category.Š |.Ģ)2 Š‡ą ø ąThe€proposed€amendments€are€intended€toŠ ° Šprevent€attachment€of€except€funds€such€asŠ †Ö ŠSocial€Security€and€Veteransšš€AdministrationŠ \¬ Šbenefits€deposited€by€electronic€fundŠ 2‚ Štransfers€into€an€account€of€the€judgmentŠ X Šdebtor.€€So€that€the€Rule€does€not€preventŠ Ž. Šthe€attachment€of€non„exempt€assets,€theŠ “  ŠJudgments€Subcommittee€of€the€Rules€CommitteeŠ Š Ś Šhas€added€the€words€š šconsisting€solely€ofŠ ` ° Šthosešš€to€the€language€that€was€suggested€byŠ 6 †  Šthe€Legal€Aid€Bureau.Š  \  ŠĢĢĢĢĢĢĢĢŌ#†XūøXXXūøf#ŌŌ‡X°«XXXūøŌą@˜ ˜ ģąMARYLAND€RULES€OF€PROCEDUREˆŠ ’ā ŠĢą@Ų Ų ģąTITLE€3€„€CIVIL€PROCEDURE€„„€DISTRICT€COURTˆŠ >Ž ŠĢą@ÄÄģąCHAPTER€600€„€JUDGMENTˆŠ ź: ŠĢĢą ø ąAMEND€Rule€3„645€to€direct€the€garnisheeŠ l¼ Šnot€to€attach,€freeze,€or€place€a€hold€onŠ B’ Šcertain€funds€and€to€require€the€garnishee€toŠ h Šassert€a€defense€on€behalf€of€the€judgmentŠ ī> Šdebtor€under€certain€circumstances,€asŠ Ä Šfollows:Š šź ŠĢĢRule€3„645.€€GARNISHMENT€OF€PROPERTY€„Š !l" ŠGENERALLY€Š ņ!B# ŠĢĢ€€€.€.€.Š t$Ä& ŠĢ€€(c)€€ContentŠ  &p!( ŠĢą ø ą€€The€writ€of€garnishment€shall:€€Š Ģ'#* ŠĢ€€€€(1)€contain€the€information€in€theŠ x)Č$, Šrequest,€the€name€and€address€of€the€personŠ N*ž%- Šrequesting€the€writ,€and€the€date€of€issue,€€€Š $+t&. ŠĢ€€€€(2)€direct€the€garnishee€to€hold,€subjectŠ Š, (0 Što€further€proceedings,€the€property€of€eachŠ ¦-ö(1 Šjudgment€debtor€in€the€possession€of€theŠ |.Ģ)2 Šgarnishee€at€the€time€of€service€of€the€writŠ ° Šand€all€property€of€each€debtor€that€may€comeŠ †Ö Šinto€the€garnishee's€possession€after€serviceŠ \¬ Šof€the€writņņ,€except€as€provided€in€subsectionŠ 2‚ Š(c)(6)€of€this€Ruleóó,€€Š X ŠĢ€€€€(3)€notify€the€garnishee€of€the€timeŠ “  Šwithin€which€the€answer€must€be€filed€andŠ Š Ś Šthat€failure€to€do€so€may€result€in€judgmentŠ ` ° Šby€default€against€the€garnishee,€€Š 6 †  ŠĢ€€€€(4)€notify€the€judgment€debtor€andŠ ā 2  Šgarnishee€that€federal€and€state€exemptionsŠ ø  Šmay€be€available,€€Š ŽŽ  ŠĢ€€€€(5)€notify€the€judgment€debtor€of€theŠ :Š  Šright€to€contest€the€garnishment€by€filing€aŠ `  Šmotion€asserting€a€defense€or€objectionņ ņ.ó óņņ,óóŠ ę6 ŠŌ#†XūøXXX°«ģ6#ŌŌ‡XūøXXXūøŌĢ€€€€ņņ(6)€direct€the€garnishee€not€to€attach,Š ’ā Šfreeze,€or€place€a€hold€on€funds€consistingŠ hø Šsolely€of€those€that€are€depositedŠ >Ž Šelectronically€with€the€garnishee€on€aŠ d Šrecurring€basis€and€that€are€readilyŠ ź: Šidentifiable€as€exempt€from€levy,€execution,Š Ą Šor€attachment€under€state€or€federal€law.óóŌ#†XūøXXXūød?#ŌŌ‡X°«XXXūøŌŠ –ę ŠĢ€€€.€.€.Š B’ ŠĢ€€(e)€€Answer€of€GarnisheeŠ ī> ŠĢą ø ą€€The€garnishee€shall€file€an€answerŠ šź Šwithin€30€days€after€service€of€the€writ.€Š pĄ  ŠThe€answer€shall€admit€or€deny€that€theŠ F –! Šgarnishee€is€indebted€to€the€judgment€debtorŠ !l" Šor€has€possession€of€property€of€the€judgmentŠ ņ!B# Šdebtor€and€shall€specify€the€amount€andŠ Č"$ Šnature€of€any€debt€and€describe€any€property.€Š ž#ī% ŠThe€garnishee€may€assert€any€defense€that€theŠ t$Ä& Šgarnishee€may€have€to€the€garnishment,€asŠ J%š ' Šwell€as€any€defense€that€the€judgment€debtorŠ  &p!( Šcould€assert.€€ņņŌ#†XūøXXX°«BA#ŌŌ‡XūøXXXūøŌThe€garnishee€shall€assert€aŠ ö&F") Šdefense€on€behalf€of€the€judgment€debtor€ifŠ Ģ'#* Šthe€garnishee€holds€funds€consisting€solelyŠ ¢(ņ#+ Šof€those€that€are€deposited€electronicallyŠ x)Č$, Šwith€the€garnishee€on€a€recurring€basis€andŠ N*ž%- Šthat€are€readily€identifiable€as€exempt€fromŠ $+t&. Šlevy,€execution,€or€attachment€under€state€orŠ ś+J'/ Šfederal€law.óó€Ō#†XūøXXXūø}D#ŌŌ‡X°«XXXūøŌ€€After€answering,€the€garnisheeŠ Š, (0 Šmay€pay€any€garnished€indebtedness€into€courtŠ ¦-ö(1 Šand€may€deliver€to€the€sheriff€any€garnishedŠ |.Ģ)2 Šproperty,€which€shall€then€be€treated€as€ifŠ ° Šlevied€upon€by€the€sheriff.€€A€garnishee€whoŠ †Ö Šhas€filed€an€answer€admitting€indebtedness€toŠ \¬ Šthe€judgment€debtor€or€possession€of€propertyŠ 2‚ Šof€the€judgment€debtor€is€not€required€toŠ X Šfile€an€amended€answer€solely€because€of€anŠ Ž. Šincrease€in€the€garnishee's€indebtedness€toŠ “  Šthe€judgment€debtor€or€the€garnishee'sŠ Š Ś Šreceipt€of€additional€property€of€the€debtor.€Š ` ° ŠĢ€€€.€.€.Š  \  ŠĢĢŅ°` ŅŅ°` Ņą  ąRule€3„645€was€accompanied€by€the€following€Reporterššs€Note.Š ŽŽ  ŠĢŅ` °ŅŅ` °Ņą ø ąSee€the€Reporterššs€note€to€Rule€2„645.Š :Š  ŠŌ#†XūøXXX°«‚F#ŌŌ‡XūøXXXūøŌĢŌ#†XūøXXXūøĄJ#ŌĢŅ°` ŅŅ°` ŅÓÓą  ąMr.€Bowen€explained€that€the€proposed€changes€to€Rules€2„645Š ¼  Šand€3„645€direct€that€a€garnishee€not€hold€funds€that€areŠ hø Šdeposited€periodically€and€are€exempt€from€attachment€underŠ d Šfederal€law.€€At€a€recent€meeting€of€the€Judgments€Subcommittee,Š Ą Šall€of€the€interested€parties€representing€the€Legal€Aid€Bureau,Š l¼ Šthe€Maryland€Legal€Services€Corporation,€and€the€banking€industryŠ h Šdiscussed€the€suggested€change€to€the€Rules.€€They€presented€goodŠ Ä Šarguments€and€backed€them€up€with€written€materials.€€TheŠ pĄ  ŠSubcommittee€then€met€by€a€telephone€conference€call€and€decidedŠ !l" Šnot€to€make€a€recommendation€as€to€whether€the€Committee€shouldŠ Č"$ Šapprove€the€proposed€changes€to€the€Rules.€€The€dilemma€for€theŠ t$Ä& ŠSubcommittee€was€that€federal€law€provides€that€certain€items,Š  &p!( Šsuch€as€Veteransšš€and€Social€Security€benefits,€are€not€subjectŠ Ģ'#* Što€attachment.€€Other€funds€in€Maryland€banks€also€may€be€exemptŠ x)Č$, Šfrom€attachment,€and€can€then€be€released€on€motion€of€the€ownerŠ $+t&. Šof€the€bank€account.€€The€proposed€changes€would€shift€the€dutyŠ Š, (0 Što€claim€an€exemption€from€the€owner€of€the€account€to€the€bankŠ |.Ģ)2 Šthat€was€reporting€the€assets€to€the€court€and€holding€them€inŠ ° Šthe€meantime.€€The€Subcommittee€agreed€to€bring€to€the€fullŠ \¬ ŠCommittee€the€Rules€as€they€had€been€presented€by€Legal€Aid€withŠ X Šone€exception:€the€addition€of€the€word€š šsolelyšš€in€subsectionŠ “  Š(c)(6)€and€section€(e)€of€Rules€2„645€and€3„645,€so€that€theŠ ` ° ŠRules€apply€only€if€the€assets€in€the€account€consist€solely€ofŠ  \  Šthose€that€are€deposited€electronically€with€the€garnishee€on€aŠ ø  Šrecurring€basis€and€that€are€readily€identifiable€as€exempt€underŠ d“  ŠState€or€federal€law.Š `  Šą  ąMr.€Bowen€expressed€his€personal€opinion€of€this€matter,Š ¼  Šwhich€is€that€the€recommendation€of€Maryland€legislators,€ThomasŠ hø ŠV.€Mike€Miller,€Jr.,€Senate€President,€and€Michael€E.€Busch,Š d ŠSpeaker€of€the€House,€should€be€followed.€€Their€view,€expressedŠ Ą Šin€a€letter€included€in€the€meeting€materials,€is€that€this€is€aŠ l¼ Šmatter€for€the€legislature€to€decide.€€(See€Appendix€1).€€This€isŠ h Ša€marked€shift€in€garnishment€practice€in€the€State€of€Maryland.€Š Ä ŠThere€are€many€funds€not€subject€to€attachment,€and€theŠ pĄ  Šlegislature€added€several€more,€such€as€child€support€andŠ !l" Šalimony.€€None€of€these€have€shifted€the€burden€from€the€partiesŠ Č"$ Šwho€are€the€most€involved€to€the€innocent€stakeholder€as€theseŠ t$Ä& ŠRules€do.Š  &p!( Šą  ąThe€Chair€commented€that€the€Rules€may€be€procedural,€butŠ Ģ'#* Šthey€are€š šsubstantivešš€procedure,€involving€the€kind€of€mattersŠ x)Č$, Šthat€are€traditionally€left€to€the€legislature,€particularly€whenŠ $+t&. Šthe€legislature€has€not€asked€the€Committee€to€handle€it.€€HeŠ Š, (0 Šasked€the€Committee€if€they€had€any€questions€or€comments.€€TheŠ |.Ģ)2 ŠVice€Chair€inquired€as€to€whether€it€is€federal€law€thatŠ ° Šprohibits€attachment€of€these€benefits.€€Mr.€Bowen€answered€thatŠ \¬ Šfederal€law€states€that€these€are€not€subject€to€being€attached.€Š X ŠThe€proponents€of€the€change€to€the€Rules€take€the€position€thatŠ “  Šthe€funds€cannot€be€attached.€€The€only€other€state€that€has€aŠ ` ° Šsimilar€limitation€is€Pennsylvania,€which€was€introduced€by€aŠ  \  Šjudge€in€a€court€case.€€It€was€pointed€out€to€the€Subcommittee€atŠ ø  Šits€recent€meeting€that€Virginia€has€made€a€change€in€itsŠ d“  Šgarnishment€form€that€has€the€same€effect.€€The€Vice€Chair€notedŠ `  Šthat€the€addition€of€the€word€š šsolelyšš€results€in€a€situationŠ ¼  Šwhere€a€person€could€have€funds€in€the€account€that€might€beŠ hø Šreadily€identifiable€as€exempt€from€levy,€but€nonetheless€couldŠ d Šgo€through€the€process€of€being€temporarily€held€if€any€otherŠ Ą Šfunds€also€had€been€deposited€in€the€account.€€Mr.€Bowen€observedŠ l¼ Šthat€the€Subcommittee€made€the€change€to€use€the€word€š šsolely,ššŠ h Šso€that€if€there€were€funds€in€the€account€from€another€source,Š Ä Šthe€Rule€would€require€that€funds€be€held.€€The€burden€should€notŠ pĄ  Šbe€on€the€bank€to€analyze€the€source€of€each€dollar€in€theŠ !l" Šaccount.€€Š Č"$ Šą  ąMr.€Brault€remarked€that€it€appears€that€the€SubcommitteeŠ t$Ä& Šheard€from€the€bankers€and€from€the€debtors,€but€he€questioned€asŠ  &p!( Što€whether€there€has€been€any€input€from€creditorsšš€rightsŠ Ģ'#* Šattorneys€as€to€the€impact€on€judgment€creditors.€€Mr.€BowenŠ x)Č$, Šnoted€that€the€two€sides€who€were€present€at€the€meeting€briefedŠ $+t&. Šand€argued€the€issues€very€well.€€The€Chair€expressed€the€viewŠ Š, (0 Šthat€this€is€a€matter€for€the€legislature,€given€the€fact€that€itŠ |.Ģ)2 Šis€active€in€this€area,€making€changes€frequently.€€There€areŠ ° Šseveral€ways€to€handle€this.€€One€is€to€craft€a€rule€and€transmitŠ \¬ Šit€to€the€Court€of€Appeals€with€supporting€materials.€€Another€isŠ X Što€find€out€whether€the€Court€is€interested€in€having€this€rule,Š “  Šand€then€the€Committee€could€work€on€it.€€The€Vice€Chair€saidŠ ` ° Šthat€she€understood€the€concern€of€holding€funds€that€are€notŠ  \  Šsubject€to€garnishment,€but€this€does€not€warrant€putting€theŠ ø  Šburden€on€the€banks€to€have€to€analyze€which€funds,€if€any,€areŠ d“  Šnot€subject€to€garnishment.€€This€is€not€a€matter€appropriate€toŠ `  Šaddress€by€rule.Š ¼  Šą  ąMr.€Bowen€moved€to€let€the€legislature€handle€this€subject.€Š hø ŠThe€Vice€Chair€seconded€the€motion,€and€it€passed€unanimously.€€Š d ŠÓÓĢAgenda€Item€1.€€Ō‡XūøXXXūøŌConsideration€of€proposed€amendments€to:€€RuleŠ –ę Š€€16„610€(Approval€of€Financial€Institutions),€Rule€16„602Š l¼ Š€€(Definitions),€Rule€16„607€(Commingling€of€Funds),€and€Rule€Š B’ Š€€16„608€(Interest€on€Funds€in€Attorney€Trust€Accounts)Ō#†XūøXXXūø8e#ŌŠ h Š_________________________________________________________________Š ī> ŠĢÓÓą  ąMr.€Brault€presented€Rules€16„610,€Approval€of€FinancialŠ šź ŠInstitutions,€16„602,€Definitions,€16„607,€Commingling€of€Funds,Š F –! Šand€16„608,€Interest€on€Funds€in€Attorney€Trust€Accounts,€for€theŠ ņ!B# ŠCommitteeššs€consideration.Š ž#ī% ŠŅ` °ŅŅ` °ŅÓÓĢą@˜ ˜ ģąMARYLAND€RULES€OF€PROCEDUREˆŠ  &p!( ŠĢą@Œ Œ ģąTITLE€16€„€COURTS,€JUDGES,€AND€ATTORNEYSˆŠ Ģ'#* ŠĢą@@ @ ģąCHAPTER€600€„€ATTORNEY€TRUST€ACCOUNTSˆŠ x)Č$, ŠĢĢą ø ąAMEND€Rule€16„610€b€to€add€to€theŠ ś+J'/ Šcontents€of€the€agreement€a€provisionŠ Š, (0 Šconcerning€interest€rates€on€IOLTA€accounts,Š ¦-ö(1 Šas€follows:Š |.Ģ)2 Š‡Rule€16-610.€€APPROVAL€OF€FINANCIALŠ ° ŠINSTITUTIONS€Š †Ö ŠĢĢ€€a.€€Written€Agreement€to€be€filed€withŠ X ŠCommissionŠ Ž. ŠĢą ø ą€The€Commission€shall€approve€aŠ Š Ś Šfinancial€institution€upon€the€filing€withŠ ` ° Šthe€Commission€of€a€written€agreement,Š 6 †  Šcomplying€with€this€Rule€and€in€a€formŠ  \  Šprovided€by€the€Commission,€applicable€to€allŠ ā 2  Šbranches€of€the€institution€located€in€thisŠ ø  ŠState.€€Š ŽŽ  ŠĢ€€b.€€Contents€of€AgreementŠ :Š  ŠĢ€€€€1.€Duties€to€be€PerformedŠ ę6 ŠĢą ø ą€€The€agreement€shall€provide€that€theŠ ’ā Šfinancial€institution,€as€a€condition€ofŠ hø Šaccepting€the€deposit€of€any€funds€into€anŠ >Ž Šattorney€trust€account,€shall:€€Š d ŠĢ€€€€€€(A)€Notify€the€attorney€or€law€firmŠ Ą Špromptly€of€any€overdraft€in€the€account€orŠ –ę Šthe€dishonor€for€insufficient€funds€of€anyŠ l¼ Šinstrument€drawn€on€the€account.€€Š B’ ŠĢ€€€€€€(B)€Report€the€overdraft€or€dishonor€toŠ ī> ŠBar€Counsel€as€set€forth€in€subsection€b€1Š Ä Š(C)€of€this€Rule.€€Š šź ŠĢ€€€€€€(C)€Use€the€following€procedure€forŠ F –! Šreports€to€Bar€Counsel€required€underŠ !l" Šsubsection€b€1€(B)€of€this€Rule:€€Š ņ!B# ŠĢ€€€€€€€€(i)€In€the€case€of€a€dishonoredŠ ž#ī% Šinstrument,€the€report€shall€be€identical€toŠ t$Ä& Šthe€overdraft€notice€customarily€forwarded€toŠ J%š ' Šthe€institution's€other€regular€accountŠ  &p!( Šholders.€€The€report€shall€be€mailed€to€BarŠ ö&F") ŠCounsel€within€the€time€provided€by€law€forŠ Ģ'#* Šnotice€of€dishonor€to€the€depositor€andŠ ¢(ņ#+ Šsimultaneously€with€the€sending€of€thatŠ x)Č$, Šnotice.€€Š N*ž%- ŠĢ€€€€€€€€(ii)€If€an€instrument€is€honored€butŠ ś+J'/ Šat€the€time€of€presentation€the€total€fundsŠ Š, (0 Šin€the€account,€both€collected€andŠ ¦-ö(1 Šuncollected,€do€not€equal€or€exceed€theŠ |.Ģ)2 Šamount€of€the€instrument,€the€report€shallŠ ° Šidentify€the€financial€institution,€theŠ †Ö Šattorney€or€law€firm€maintaining€the€account,Š \¬ Šthe€account€name,€the€account€number,€theŠ 2‚ Šdate€of€presentation€for€payment,€and€theŠ X Špayment€date€of€the€instrument,€as€well€asŠ Ž. Šthe€amount€of€the€overdraft€created.€€TheŠ “  Šreport€shall€be€mailed€to€Bar€Counsel€withinŠ Š Ś Šfive€banking€days€after€the€date€ofŠ ` ° Špresentation,€notwithstanding€any€overdraftŠ 6 †  Šprivileges€that€may€attach€to€the€account.Š  \  ŠĢ€€€€€ņņ(D)€Pay€on€its€IOLTA€accounts€(i)€a€rateŠ ø  Šthat€is€no€less€than€the€highest€interestŠ ŽŽ  Šrate€generally€available€from€the€institutionŠ d“  Što€its€non„IOLTA€customers€when€the€IOLTAŠ :Š  Šaccount€meets€or€exceeds€the€same€minimumŠ `  Šbalance€and€other€eligibility€requirements,Š ę6 Šif€any,€or€(ii)€a€net€yield€equal€to€orŠ ¼  Šexceeding€60%€of€the€Federal€Funds€TargetŠ ’ā ŠRate.óóŠ hø ŠņņĢCommittee€note:€€Participation€in€the€IOLTAŠ d Šprogram€is€voluntary€for€financialŠ ź: Šinstitutions.€€A€financial€institution€thatŠ Ą Šchooses€to€offer€and€maintain€IOLTA€accountsŠ –ę Šmust€pay€to€its€IOLTA€customers€no€less€thanŠ l¼ Šthe€highest€interest€rate€generally€availableŠ B’ Šfrom€the€institution€as€is€available€to€itsŠ h Šnon„IOLTA€customers€when€IOLTA€accounts€meetŠ ī> Šor€exceed€the€same€minimum€balance€or€otherŠ Ä Šeligibility€qualifications,€if€any,€or€theŠ šź Šš šsafe€harboršš€net€yield€rate€of€60%€of€theŠ pĄ  ŠFederal€Funds€Target€Rate.€€In€determiningŠ F –! Šthe€highest€interest€rate€generally€availableŠ !l" Što€its€non„IOLTA€customers,€a€financialŠ ņ!B# Šinstitution€may€consider€factors,€in€additionŠ Č"$ Što€the€IOLTA€account€balance,€customarilyŠ ž#ī% Šconsidered€by€the€institution€when€settingŠ t$Ä& Šinterest€rates€for€its€customers,€providedŠ J%š ' Šthat€such€factors€do€not€discriminate€betweenŠ  &p!( ŠIOLTA€accounts€and€accounts€of€non„IOLTAŠ ö&F") Šcustomers,€and€that€these€factors€do€notŠ Ģ'#* Šinclude€that€the€account€is€an€IOLTA€account.€Š ¢(ņ#+ ŠA€financial€institution€may€satisfy€theŠ x)Č$, Šrequirement€of€subsection€b€1€(D)(i)€of€thisŠ N*ž%- ŠRule€by€establishing€the€IOLTA€account€as€oneŠ $+t&. Šof€the€higher€rate€products€that€is€offeredŠ ś+J'/ Što€its€non„IOLTA€customers€or€by€paying€theŠ Š, (0 Šcomparable€interest€rate,€net€of€anyŠ ¦-ö(1 Šallowable€fees€tied€to€the€higher€interestŠ |.Ģ)2 Šrate,€such€as€sweep€fees,€on€qualifying€IOLTAŠ ° Šchecking€accounts€in€lieu€of€actuallyŠ †Ö Šestablishing€the€IOLTA€account€as€the€higherŠ \¬ Šrate€product.óóŠ 2‚ ŠĢą ø ąņņExamples€of€product€options€appropriateŠ Ž. Šfor€consideration€to€achieve€IOLTA€rateŠ “  Šcomparability€for€qualifying€IOLTA€depositsŠ Š Ś Šinclude€checking€accounts€paying€preferredŠ ` ° Šinterest€rates,€such€as€money€market€orŠ 6 †  Šindexed€rates;€business€checking€accountsŠ  \  Šwith€an€automated€investment€feature,€such€asŠ ā 2  Šan€overnight€sweep€and€investment€inŠ ø  Šrepurchase€agreements€fully€collateralized€byŠ ŽŽ  ŠU.S.€Government€Securities€(includingŠ d“  ŠGovernment€Sponsored€Entities);€or€any€otherŠ :Š  Šcomparable€interest€bearing€checking€accountsŠ `  Šoffered€by€the€financial€institution€to€itsŠ ę6 Šnon„IOLTA€customers.óóŠ ¼  ŠĢ€€€€€€ņ ņ(D)ó ó€ņņ(E)óó€Not€deduct€from€interest€on€theŠ hø Šaccount€that€otherwise€would€be€payable€toŠ >Ž Šthe€Maryland€Legal€Services€Corporation€FundŠ d Šany€fees€for€wire€transfers,€presentationsŠ ź: Šagainst€insufficient€funds,€certified€checks,Š Ą Šoverdrafts,€deposits€of€dishonored€items,€andŠ –ę Šaccount€reconciliation€services.€€Š l¼ ŠCross€reference:€€Rule€16-607€b€1.€€Š B’ ŠĢ€€€€€€ņ ņ(E)ó ó€ņņ(F)óó€Allow€reasonable€access€to€allŠ ī> Šrecords€of€an€attorney€trust€account€if€anŠ Ä Šaudit€of€the€account€is€ordered€pursuant€toŠ šź ŠRule€16-722€(Audit€of€Attorney€Accounts€andŠ pĄ  ŠRecords).Š F –! ŠĢ€€€€2.€Service€Charges€for€Performing€DutiesŠ ņ!B# ŠUnder€AgreementŠ Č"$ ŠĢą ø ą€€Nothing€in€the€agreement€shallŠ t$Ä& Špreclude€an€approved€financial€institutionŠ J%š ' Šfrom€charging€the€attorney€or€law€firmŠ  &p!( Šmaintaining€an€attorney€trust€account€ņ ņ(1)ó ó€ņņ(A)óóŠ ö&F") Ša€reasonable€fee€for€providing€any€notice€orŠ Ģ'#* Šrecord€pursuant€to€the€agreement€or€ņ ņ(2)ó ó€ņņ(B)óóŠ ¢(ņ#+ Šthe€fees€listed€in€subsection€b€1€ņ ņ(D)ó ó€ņņ(E)óó€ofŠ x)Č$, Šthis€Rule.€€Š N*ž%- ŠĢ€€c.€€Termination€of€AgreementŠ ś+J'/ ŠĢą ø ą€The€agreement€shall€terminate€only€if:€€Š ¦-ö(1 ŠŠ |.Ģ)2 Š€€€€1.€The€financial€institution€files€aŠ ° Špetition€under€any€applicable€insolvency€lawŠ †Ö Šor€makes€an€assignment€for€the€benefit€ofŠ \¬ Šcreditors;€or€€Š 2‚ ŠĢ€€€€2.€The€financial€institution€gives€thirtyŠ Ž. Šdays'€notice€in€writing€to€Bar€Counsel€thatŠ “  Šthe€institution€intends€to€terminate€theŠ Š Ś Šagreement€on€a€stated€date€and€that€copies€ofŠ ` ° Šthe€termination€notice€have€been€mailed€toŠ 6 †  Šall€attorneys€and€law€firms€that€maintainŠ  \  Štrust€accounts€with€any€branch€of€thatŠ ā 2  Šinstitution;€or€€Š ø  ŠĢ€€€€3.€The€Commission€finds,€after€priorŠ d“  Šwritten€notice€to€the€institution€andŠ :Š  Šadequate€opportunity€to€be€heard,€that€theŠ `  Šinstitution€has€failed€or€refused€withoutŠ ę6 Šjustification€to€perform€a€duty€required€byŠ ¼  Šthe€agreement.€€Š ’ā ŠĢSource:€€This€Rule€is€ņņderived€fromóó€formerŠ >Ž ŠRule€BU10.€€Š d ŠĢĢŅ°` ŅŅ°` Ņą  ąRule€16„610€was€accompanied€by€the€following€ReporterššsŠ –ę ŠĢNote.Š B’ ŠĢŅ` °ŅŅ` °Ņą ø ąIn€recent€years,€the€gap€betweenŠ ī> Šinterest€rates€on€IOLTA€accounts€and€interestŠ Ä Šrates€on€comparable€non„IOLTA€accounts€hasŠ šź Šwidened.€€Proposed€amendments€to€Rule€16„610Š pĄ  Šb€add€to€the€contents€of€an€approvedŠ F –! Šfinancial€institutionššs€written€agreement€aŠ !l" Šš šcomparabilityšš€provision€with€respect€toŠ ņ!B# ŠIOLTA€accounts.€€The€provision€requires€thatŠ Č"$ Šthe€interest€rate€on€IOLTA€accounts€be€notŠ ž#ī% Šless€than€the€interest€rate€on€similar,€non„Š t$Ä& ŠIOLTA€accounts;€alternatively,€the€financialŠ J%š ' Šinstitution€may€pay€a€š šsafe€harboršš€net€yieldŠ  &p!( Šthat€equals€or€exceeds€60%€of€the€FederalŠ ö&F") ŠFunds€Target€Rate.€€Twelve€states€haveŠ Ģ'#* Šadopted€š šcomparabilityšš€provisions,€and€onŠ ¢(ņ#+ ŠApril€17,€2007,€the€Maryland€State€BarŠ x)Č$, ŠAssociation€Board€of€Governors€adopted€aŠ N*ž%- ŠResolution€in€support€of€the€concept.Š $+t&. ŠŠ  ś+J'/ Šą@˜ ˜ ģąMARYLAND€RULES€OF€PROCEDUREˆŠ ° ŠĢą@Œ Œ ģąTITLE€16€„€COURTS,€JUDGES,€AND€ATTORNEYSˆŠ \¬ ŠĢą@@ @ ģąCHAPTER€600€„€ATTORNEY€TRUST€ACCOUNTSˆŠ X ŠĢĢą ø ąAMEND€Rule€16„602€to€add€a€definition€ofŠ Š Ś Šš šIOLTA,šš€as€follows:Š ` ° ŠĢĢRule€16-602.€€DEFINITIONS€Š ā 2  ŠĢĢą ø ąIn€this€Chapter,€the€followingŠ d“  Šdefinitions€apply,€except€as€expresslyŠ :Š  Šotherwise€provided€or€as€necessaryŠ `  Šimplication€requires:€€Š ę6 ŠĢ€€a.€€Approved€Financial€Institution.Š ’ā ŠĢą ø ą€"Approved€financial€institution"€meansŠ >Ž Ša€financial€institution€approved€by€theŠ d ŠCommission€in€accordance€with€these€Rules.€€Š ź: ŠĢ€€b.€€Attorney.Š –ę ŠĢą ø ą€"Attorney"€means€any€person€admitted€byŠ B’ Šthe€Court€of€Appeals€to€practice€law.€€Š h ŠĢ€€c.€€Attorney€Trust€Account.Š Ä ŠĢą ø ą€"Attorney€trust€account"€means€anŠ pĄ  Šaccount,€including€an€escrow€account,Š F –! Šmaintained€in€a€financial€institution€for€theŠ !l" Šdeposit€of€funds€received€or€held€by€anŠ ņ!B# Šattorney€or€law€firm€on€behalf€of€a€client€orŠ Č"$ Šthird€person.€€Š ž#ī% ŠĢ€€d.€€Bar€Counsel.Š J%š ' ŠĢą ø ą€"Bar€Counsel"€means€the€personŠ ö&F") Šappointed€by€the€Commission€as€the€principalŠ Ģ'#* Šexecutive€officer€of€the€disciplinary€systemŠ ¢(ņ#+ Šaffecting€attorneys.€€All€duties€of€BarŠ x)Č$, ŠCounsel€prescribed€by€these€Rules€shall€beŠ N*ž%- Šsubject€to€the€supervision€and€proceduralŠ $+t&. Šguidelines€of€the€Commission.€€Š ś+J'/ ŠĢ€€e.€€Client.Š ¦-ö(1 ŠŠ |.Ģ)2 Šą ø ą€"Client"€includes€any€individual,€firm,Š ° Šor€entity€for€which€an€attorney€performs€anyŠ †Ö Šlegal€service,€including€acting€as€an€€escrowŠ \¬ Šagent€or€as€a€legal€representative€of€aŠ 2‚ Šfiduciary.€€The€term€does€not€include€aŠ X Špublic€or€private€entity€of€which€an€attorneyŠ Ž. Šis€a€full-time€employee.€€Š “  ŠĢ€€f.€€Commission.Š ` ° ŠĢą ø ą€"Commission"€means€the€AttorneyŠ  \  ŠGrievance€Commission€of€Maryland,€asŠ ā 2  Šauthorized€and€created€by€Rule€16-711Š ø  Š(Attorney€Grievance€Commission).€€Š ŽŽ  ŠĢ€€g.€€Financial€Institution.Š :Š  ŠĢą ø ą€"Financial€institution"€means€a€bank,Š ę6 Štrust€company,€savings€bank,€or€savings€andŠ ¼  Šloan€association€authorized€by€law€to€doŠ ’ā Šbusiness€in€this€State,€in€the€District€ofŠ hø ŠColumbia,€or€in€a€state€contiguous€to€thisŠ >Ž ŠState,€the€accounts€of€which€are€insured€byŠ d Šan€agency€or€instrumentality€of€the€UnitedŠ ź: ŠStates.Š Ą ŠĢ€€ņņh.€€IOLTA.óóŠ l¼ ŠĢą ø ą€ņņš šIOLTAšš€(Interest€on€Lawyer€TrustŠ h ŠAccounts)€means€interest€on€attorney€trustŠ ī> Šaccounts€payable€to€the€Maryland€LegalŠ Ä ŠServices€Corporation€Fund€under€Code,Š šź ŠBusiness€Occupations€and€Professions€Article,Š pĄ  Ššš10„303.óóŠ F –! ŠĢ€€ņ ņh.ó ó€ņņi.óó€€Law€Firm.Š ņ!B# ŠĢą ø ą€"Law€firm"€includes€a€partnership€ofŠ ž#ī% Šattorneys,€a€professional€or€nonprofitŠ t$Ä& Šcorporation€of€attorneys,€and€a€combinationŠ J%š ' Šthereof€engaged€in€the€practice€of€law.€€InŠ  &p!( Šthe€case€of€a€law€firm€with€offices€in€thisŠ ö&F") ŠState€and€in€other€jurisdictions,€the€RulesŠ Ģ'#* Šin€this€Chapter€apply€only€to€the€offices€inŠ ¢(ņ#+ Šthis€State.€€Š x)Č$, ŠĢSource:€€This€Rule€is€derived€from€formerŠ $+t&. ŠRule€BU2.€€Š ś+J'/ ŠĢĢŅ°` ŅŅ°` ŅŠ |.Ģ)2 Šą  ąRule€16„602€was€accompanied€by€the€following€ReporterššsŠ ° ŠĢNote.Š \¬ ŠĢŅ` °ŅŅ` °Ņą ø ąThe€proposed€amendment€to€Rule€16„602Š X Šadds€a€definition€of€š šIOLTA.ššŠ Ž. ŠĢĢĢĢĢĢĢĢĢą@˜ ˜ ģąMARYLAND€RULES€OF€PROCEDUREˆŠ :Š  ŠĢą@Œ Œ ģąTITLE€16€„€COURTS,€JUDGES,€AND€ATTORNEYSˆŠ ę6 ŠĢą@@ @ ģąCHAPTER€600€„€ATTORNEY€TRUST€ACCOUNTSˆŠ ’ā ŠĢĢą ø ąAMEND€Rule€16„607€to€conform€toŠ d Šamendments€to€Rule€16„610,€as€follows:Š ź: ŠĢĢRule€16-607.€€COMMINGLING€OF€FUNDS€Š l¼ ŠĢĢ€€€.€.€.Š ī> ŠĢ€€b.€€Exceptions.Š šź ŠĢ€€€€1.€€An€attorney€or€law€firm€shall€eitherŠ F –! Š(A)€deposit€into€an€attorney€trust€accountŠ !l" Šfunds€to€pay€any€fees,€service€charges,€orŠ ņ!B# Šminimum€balance€required€by€the€financialŠ Č"$ Šinstitution€to€open€or€maintain€the€account,Š ž#ī% Šincluding€those€fees€that€cannot€be€chargedŠ t$Ä& Šagainst€interest€due€to€the€Maryland€LegalŠ J%š ' ŠServices€Corporation€Fund€pursuant€to€RuleŠ  &p!( Š16-610€b€1€ņ ņ(D)ó ó€ņņ(E)óó,€or€(B)€enter€into€anŠ ö&F") Šagreement€with€the€financial€institution€toŠ Ģ'#* Šhave€any€fees€or€charges€deducted€from€anŠ ¢(ņ#+ Šoperating€account€maintained€by€the€attorneyŠ x)Č$, Šor€law€firm.€€The€attorney€or€law€firm€mayŠ N*ž%- Šdeposit€into€an€attorney€trust€account€anyŠ $+t&. Šfunds€expected€to€be€advanced€on€behalf€of€aŠ ś+J'/ Šclient€and€expected€to€be€reimbursed€to€theŠ Š, (0 Šattorney€by€the€client.€€Š ¦-ö(1 ŠŠ |.Ģ)2 Š€€€.€.€.€Š ° ŠĢŅ°` ŅŅ°` Ņą  ąRule€16„607€was€accompanied€by€the€following€ReporterššsŠ \¬ ŠĢNote.Š X ŠĢŅ` °ŅŅ` °Ņą ø ąThe€proposed€amendment€to€Rule€16„607Š “  Šconforms€it€to€the€amendments€to€Rule€16„610.Š Š Ś ŠĢĢĢĢĢĢĢĢĢą@˜ ˜ ģąMARYLAND€RULES€OF€PROCEDUREˆŠ ę6 ŠĢą@Œ Œ ģąTITLE€16€„€COURTS,€JUDGES,€AND€ATTORNEYSˆŠ ’ā ŠĢą@@ @ ģąCHAPTER€600€„€ATTORNEY€TRUST€ACCOUNTSˆŠ >Ž ŠĢĢą ø ąAMEND€Rule€16„608€to€conform€toŠ Ą Šamendments€to€Rules€16„602€and€16„610,€asŠ –ę Šfollows:Š l¼ ŠĢĢRule€16-608.€€INTEREST€ON€FUNDS€IN€ATTORNEYŠ ī> ŠTRUST€ACCOUNTS€Š Ä ŠĢĢ€€a.€€Generally.Š F –! ŠĢą ø ą€Any€interest€paid€on€funds€deposited€inŠ ņ!B# Šan€attorney€trust€account,€after€deductingŠ Č"$ Šservice€charges€and€fees€of€the€financialŠ ž#ī% Šinstitution,€shall€be€credited€and€belong€toŠ t$Ä& Šthe€client€or€third€person€whose€funds€are€onŠ J%š ' Šdeposit€during€the€period€the€interest€isŠ  &p!( Šearned,€except€to€the€extent€that€interest€isŠ ö&F") Špaid€to€the€Maryland€Legal€ServicesŠ Ģ'#* ŠCorporation€Fund€as€authorized€by€law.€€TheŠ ¢(ņ#+ Šattorney€or€law€firm€shall€have€no€right€orŠ x)Č$, Šclaim€to€the€interest.€€Š N*ž%- ŠĢCross€reference:€€See€Rule€16-610€b€1€ņ ņ(D)ó ó€ņņ(E)óóŠ ś+J'/ Šproviding€that€certain€fees€may€not€beŠ Š, (0 Šdeducted€from€interest€that€otherwise€wouldŠ ¦-ö(1 Šbe€payable€to€the€Maryland€Legal€ServicesŠ |.Ģ)2 ŠCorporation€Fund.€€Š ° ŠĢ€€b.€€Duty€to€Report€IOLTA€Participation.Š \¬ ŠĢą ø ą€Each€attorney€admitted€to€practice€inŠ X ŠMaryland€shall€report€annually€informationŠ Ž. Šconcerning€all€IOLTA€ņ ņ(Interest€on€LawyerŠ “  ŠTrust€Accounts)ó ó€accounts,€including€name,Š Š Ś Šaddress,€location,€and€account€number,€on€aŠ ` ° Šform€approved€by€the€Court€of€Appeals€andŠ 6 †  Šmailed€and€returned€annually€as€directed€byŠ  \  Šthe€Court€of€Appeals.Š ā 2  ŠĢCross€reference:€€See€Code,€BusinessŠ ŽŽ  ŠOccupations€and€Professions€Article,€šš10-303.€Š d“  ŠĢSource:€€Section€a€of€this€Rule€is€formerŠ `  ŠRule€BU8.€€Section€b€is€new.€€Š ę6 ŠĢĢŅ°` ŅŅ°` Ņą  ąRule€16„608€was€accompanied€by€the€following€ReporterššsŠ hø ŠĢNote.Š d ŠĢŅ` °ŅŅ` °Ņą ø ąThe€proposed€amendments€to€Rule€16„608Š Ą Šconform€the€cross€reference€following€sectionŠ –ę Ša€to€the€relettering€of€Rule€16„610€andŠ l¼ Šdelete€from€section€b€language€that€isŠ B’ Šunnecessary€in€light€of€the€proposed€additionŠ h Šof€a€definition€of€š šIOLTAšš€to€Rule€16„602.Š ī> ŠĢĢŅ°` ŅŅ°` ŅÓÓą  ąMr.€Brault€told€the€Committee€that€the€amendments€before€theŠ pĄ  ŠCommittee€today€had€been€drafted€by€the€Rules€Committeeššs€staffŠ !l" Šin€an€effort€to€provide€a€rapid€response€to€correspondence€fromŠ Č"$ Šthe€Honorable€Robert€M.€Bell,€Chief€Judge€of€the€Corut€ofŠ t$Ä& ŠAppeals.€€(See€Appendix€2.)€€The€issue€of€changing€the€Rules€toŠ  &p!( Šensure€that€interest€rates€on€IOLTA€(Interest€on€Lawyer€TrustŠ Ģ'#* ŠAccounts)€bank€accounts€are€the€same€as€for€other€bank€accountsŠ x)Č$, Šdid€not€come€before€the€Attorneys€Subcommittee.€€The€SubcommitteeŠ $+t&. Šdid€not€have€the€benefit€of€the€two€sides€presenting€their€views,Š Š, (0 Šas€the€Judgments€Subcommittee€had€on€the€previous€issue.€€Mr.Š |.Ģ)2 ŠBrault€had€discussed€IOLTA€at€the€recent€Maryland€State€BarŠ ° ŠAssociation€meeting.€€It€is€difficult€not€to€be€completely€inŠ \¬ Šfavor€of€IOLTA.€€This€subject€was€initially€introduced€andŠ X Šexplained€by€Herbert€Garten,€Esq.€at€its€inception,€and€Mr.Š “  ŠBrault€remarked€that€he€had€not€forgotten€those€lessons.€€LawyersŠ ` ° Štend€to€favor€IOLTA,€which€increases€the€ability€of€the€LegalŠ  \  ŠServices€Corporation€to€provide€help€to€the€less€fortunate.€€Mr.Š ø  ŠBrault€has€also€discussed€the€problems€perceived€by€the€otherŠ d“  Šside,€the€banks.€€It€is€difficult€to€define€what€is€š šcomparable.šš€Š `  ŠThis€will€cause€much€of€the€debate€related€to€this€issue.€€TheŠ ¼  Šquestion€of€legislative€primacy€is€present€in€Rule€16„610,€asŠ hø Šwell€as€in€the€Rules€discussed€earlier€today.€€In€the€lettersŠ d Šreceived€from€Senate€President€Miller€and€Speaker€of€the€HouseŠ Ą ŠBusch,€they€do€not€specify€what€it€is€they€want€to€do,€but€theyŠ l¼ Šmust€have€some€interest€in€this€subject,€or€they€would€not€haveŠ h Šsent€the€letters.€€(See€Appendix€3).Š Ä Šą  ąMr.€Brault€said€that€like€most€lawyers,€he€is€involved€withŠ pĄ  Šdifferent€types€of€bank€accounts,€such€as€his€personal€accountsŠ !l" Šand€those€relating€to€his€law€firm.€€He€stated€that€he€is€not€inŠ Č"$ Ša€position€to€define€what€a€š šcomparablešš€account€is.€€HeŠ t$Ä& Šexpressed€his€preference€for€the€Attorneys€Subcommittee€to€meetŠ  &p!( Šand€for€representatives€of€the€Maryland€Legal€ServicesŠ Ģ'#* ŠCorporation€(MLSC)€and€the€banking€industry€to€attend€the€meetingŠ x)Č$, Što€participate€in€drafting€a€rule.€€He€commented€that€heŠ $+t&. Šhesitates€to€let€an€opportunity€go€by€to€improve€the€recovery€ofŠ Š, (0 Šmonies€that€go€to€the€MLSC.€€Mr.€Boozer€expressed€the€view€thatŠ |.Ģ)2 Šthis€issue€is€different€from€the€garnishment€matter€that€was€justŠ ° Šdiscussed.€€He€sent€a€letter€on€this€issue€to€Senate€PresidentŠ \¬ ŠMiller€and€Speaker€Busch.€€(See€Appendix€4.)€€The€matter€is€inŠ X Šfront€of€the€Committee€because€of€the€March€22,€2007€letter€fromŠ “  ŠChief€Judge€Bell,€in€which€Chief€Judge€Bell€noted€that€time€is€ofŠ ` ° Šthe€essence€and€that€he€is€anxious€to€move€forward€with€thisŠ  \  Šmatter€as€quickly€as€possible.€€Mr.€Boozer€asked€that€the€matterŠ ø  Šbe€heard€today,€before€a€decision€is€made€as€to€whether€this€is€aŠ d“  Šmatter€for€the€legislature,€which€he€believes€is€the€wrongŠ `  Šdecisionņņóó.€€Several€interested€persons€are€present,€and€theirŠ ¼  Štestimony€should€not€be€very€lengthy.€€They€have€taken€the€timeŠ hø Šfrom€their€busy€schedules€to€come€to€the€meeting€and€are€ready€toŠ d Šanswer€any€questions€that€the€Committee€may€have.€€Some€have€comeŠ Ą Šfrom€out€of€town.€€Š l¼ Šą  ąMr.€Boozer€said€that€the€Rule€does€not€mandate€that€theŠ h Šbanks€pay€a€higher€interest€rate.€€He€is€on€the€board€of€theŠ Ä ŠMLSC,€and€they€have€tried€to€work€with€the€banks.€€Chief€JudgeŠ pĄ  ŠBell€has€asked€for€this€matter€to€be€considered€as€quickly€asŠ !l" Špossible,€and€those€interested€persons€present€today€should€notŠ Č"$ Šhave€to€be€brought€back€again€without€having€had€the€opportunityŠ t$Ä& Što€speak.€€They€can€be€heard€today,€and€then€the€Subcommittee€canŠ  &p!( Šdiscuss€the€matter.Š Ģ'#* Šą  ąThe€Chair€agreed,€noting€that€this€matter€has€been€put€on€aŠ x)Č$, Šfast€track€because€of€the€letter€from€Chief€Judge€Bell.€€This€isŠ $+t&. Šthe€second€of€the€two€options€previously€referred€to€by€the€ChairŠ Š, (0 Šwhen€Agenda€Item€2€was€discussed€to€craft€a€rule€to€present€toŠ |.Ģ)2 Šthe€Court€of€Appeals,€and€the€Court€can€decide€whether€it€wantsŠ ° Što€defer€to€the€legislature.€€There€is€no€need€to€bring€back€theŠ \¬ Šinterested€persons€who€are€already€present€today.Š X Šą  ąEdward€J.€Gilliss,€Esq.,€President€of€the€Maryland€State€BarŠ “  ŠAssociation€(MSBA),€told€the€Committee€that€he€was€speaking€onŠ ` ° Šbehalf€of€the€almost€23,000€members€of€the€MSBA.€€On€April€17,Š  \  Š2007,€the€MSBA€Board€of€Governors,€a€representative€group€ofŠ ø  Šlawyers€from€across€the€State,€passed€a€resolution€that€is€in€theŠ d“  Šmeeting€materials€for€today.€€(See€Appendix€5).€€The€Board€ofŠ `  ŠGovernors€unanimously€endorsed€that€the€š šcomparabilityšš€rule€beŠ ¼  Šadded€to€the€Maryland€Rules€of€Procedure.€€Along€with€its€purposeŠ hø Šof€being€a€voice€for€Maryland€lawyers€and€providing€services€toŠ d Šits€members,€the€MSBA€has€in€its€mission€a€statement€promotingŠ Ą Šaccess€to€justice.€€The€Board€of€Governors€decided€that€anŠ l¼ Šexcellent€way€to€accomplish€this€is€to€increase€funds€to€theŠ h ŠMLSC.€€The€MSBA€supports€the€š šcomparabilityšš€rule.Š Ä ŠŅe°Ņą  ąMr.€Bowen€asked€whether€the€MSBA€would€support€a€sales€taxŠ pĄ  Šon€legal€services€if€the€proceeds€were€dedicated€to€the€poor.€Š !l" ŠMr.€Gilliss€responded€that€he€was€not€sure€as€to€what€the€MSBAŠ Č"$ Šposition€would€be€on€that.€€There€have€been€other€suggestions€toŠ t$Ä& Štax€legal€services,€and€the€MSBA€has€always€opposed€it.€€Mr.Š  &p!( ŠMaloney€commented€that,€unlike€a€sales€tax,€which€is€solelyŠ Ģ'#* Šwithin€the€province€of€the€legislature,€IOLTA€š šcomparabilityššŠ x)Č$, Šinvolves€a€legitimate€question€as€to€whether€the€matter€fallsŠ $+t&. Šwithin€the€province€of€the€rule„making€authority€of€the€Court€ofŠ Š, (0 ŠAppeals.€€However,€there€is€near€universal€agreement€thatŠ |.Ģ)2 Šinterest€on€IOLTA€accounts€should€be€maximized.€€He€noted€thatŠ ° Šthe€Bar€of€Maryland€can€publicize€which€financial€institutionsŠ \¬ Šoffer€the€higher€interest€rates.€€Most€lawyers€support€IOLTA,€andŠ X Šif€they€knew€which€institutions€offered€the€higher€rate,€it€wouldŠ “  Šhave€an€effect€on€the€market.€€A€minister,€the€Reverend€JacksonŠ ` ° ŠWeaver,€who€has€a€Masters€of€Business€Administration€from€HarvardŠ  \  ŠUniersity,€published€an€article€which€informed€the€public€as€toŠ ø  Šwhich€financial€institutions€gave€the€best€interest€rate€forŠ d“  Šchurches€in€Prince€Georgeššs€County,€and€this€had€a€major€impactŠ `  Šon€the€financial€services€market.€€Š ¼  Šą  ąMr.€Maloney€said€that€he€is€not€suggesting€that€somethingŠ hø Šlike€this€should€be€a€substitute€for€changing€the€interest€rate,Š d Šbut€he€asked€why€the€Bar€is€not€taking€similar€action.€€Mr.Š Ą ŠGilliss€replied€that€there€is€a€published€š šHonor€Rollšš€of€banksŠ l¼ Šthat€pay€higher€rates.€€The€MSBA€encourages€its€members€to€keepŠ h Šthere€IOLTA€accounts€at€these€banks,€but€it€cannot€require€themŠ Ä Što€do€so.€€Mr.€Maloney€inquired€as€to€where€the€list€can€beŠ pĄ  Šfound,€and€Mr.€Gilliss€answered€that€it€is€in€materials€publishedŠ !l" Šby€the€MSBA.€€The€Chair€added€that€the€list€has€grown€from€two€orŠ Č"$ Šthree€banks€to€about€12€banks.€€Ms.€Potter€remarked€that€it€isŠ t$Ä& Švery€difficult€for€a€lawyer€transfer€his€or€her€escrow€accountsŠ  &p!( Što€a€different€bank.Š Ģ'#* Šą  ąSusan€Erlichman,€Esq.,€Executive€Director€of€the€MLSC,Š x)Č$, Šthanked€the€Committee€for€the€opportunity€to€speak.€€She€saidŠ $+t&. Šthat€she€would€be€speaking€on€behalf€of€Chief€Judge€Bellššs€MarchŠ Š, (0 Š22,€2007€letter€requesting€the€Rules€Committee€to€considerŠ |.Ģ)2 Šamending€Rule€16„610,€Approval€of€Financial€Institutions.€€TheŠ ° ŠIOLTA€program€in€Maryland€was€created€in€1982,€and€theŠ \¬ Šlegislature€converted€it€to€a€mandatory€program€in€1989€to€earnŠ X Šrevenue€for€providing€legal€services€to€the€poor.€€Since€thatŠ “  Štime,€all€procedural€activities€regarding€IOLTA€have€beenŠ ` ° Šundertaken€by€the€Maryland€Judiciary€in€the€appropriate€role€ofŠ  \  Šregulating€the€behavior€of€lawyers.€€Chapter€600€of€Title€16€ofŠ ø  Šthe€Maryland€Rules€of€Procedure€regulates€lawyer€behavior€as€toŠ d“  Štrust€accounts€generally€and€IOLTA€specifically.€€In€regulatingŠ `  Šthe€behavior€of€lawyers,€Rule€16„610€speaks€to€the€requirementsŠ ¼  Šthat€a€financial€institution€must€meet€to€be€certified€as€anŠ hø Šapproved€financial€institution€to€hold€trust€funds.€€CurrentŠ d Šprovisions€include€notifying€the€lawyer€and€Bar€Counsel€ofŠ Ą Šoverdrafts,€allowing€Bar€Counsel€reasonable€access€to€trustŠ l¼ Šaccounts€records,€and€stating€that€certain€fees€will€not€beŠ h Šcharged€against€IOLTA€revenue.€€The€proposed€amendments€logicallyŠ Ä Šfollow€the€courtššs€adoption€of€the€provision€prohibitingŠ pĄ  Šextraordinary€fees.€€The€amendments€add€provisions€to€Rule€16„610Š !l" Šrequiring€financial€institutions€to€pay€rates€on€IOLTA€accountsŠ Č"$ Šcomparable€to€those€paid€on€other€similarly€situated€non„IOLTAŠ t$Ä& Šaccounts.€€Š  &p!( Šą  ąMs.€Erlichman€acknowledged€the€objections€that€have€beenŠ Ģ'#* Šraised€regarding€the€jurisdiction€of€the€Court€of€Appeals.€Š x)Č$, ŠMaryland€is€in€the€minority€of€states€where€both€the€legislatureŠ $+t&. Šand€the€judiciary€have€concurrently€acted.€€Code,€BusinessŠ Š, (0 ŠOccupations€and€Professions€Article,€šš10„301€pertains€to€attorneyŠ |.Ģ)2 Štrust€accounts,€and€the€Title€16,€Chapter€600€Rules€also€addressŠ ° Šthe€same€subject.€€Notwithstanding€the€fact€that€this€isŠ \¬ Šaddressed€by€both€statute€and€rule,€IOLTA€comparability€isŠ X Šclearly€within€the€jurisdiction€of€the€Court€of€Appeals.€€RuleŠ “  Š16„610€provides€for€the€conditions€under€which€a€financialŠ ` ° Šinstitution€may€hold€attorney€escrow€accounts.€€The€legislatureŠ  \  Šhas€not€acted€in€this€area€and€has€specifically€recognized€theŠ ø  ŠCourtššs€authority€to€do€so.€€Code,€Business€Occupations€andŠ d“  ŠProfessions€Article,€šš10„302€(b)€states:€€š šEach€attorney€trustŠ `  Šaccount€shall€be€maintained€at€an€approved€financial€institution,Š ¼  Šas€provided€in€the€Maryland€Rules.šš€€The€Rules€Committee€heardŠ hø Šthe€same€jurisdictional€objections€from€the€bankers€ten€years€agoŠ d Šwhen€the€Committee€considered€the€rules€prohibiting€banks€fromŠ Ą Šcharging€certain€fees€against€IOLTA€revenues.€€The€CommitteeššsŠ l¼ Šview€at€that€time€was€that€the€Court€of€Appeals€had€jurisdiction.€Š h ŠThe€Court€exercised€its€jurisdiction€when€it€adopted€section€(b)Š Ä Šof€Rule€16„608,€Interest€on€Funds€in€Attorney€Trust€Accounts.€€Š pĄ  Šą  ąMs.€Erlichman€said€that€IOLTA€revenue€is€a€creature€ofŠ !l" Šeconomic€activity€and€the€interest€rate€environment,€neither€ofŠ Č"$ Šwhich€is€static.€€In€January€2001,€the€federal€funds€target€rateŠ t$Ä& Šbegan€a€steady€decline,€and€the€IOLTA€revenue€also€declined.€€InŠ  &p!( Šresponse€to€this,€the€MSBA€and€MLSC€created€the€IOLTA€Honor€RollŠ Ģ'#* Šin€an€attempt€to€stem€the€impact€of€loss€of€funding.€€TheŠ x)Č$, Šcreation€of€the€Honor€Roll€occurred€in€a€dramatically€differentŠ $+t&. Šinterest€rate€environment€than€the€one€that€exists€today.€€TheŠ Š, (0 Š1.5%€rate€(this€continues€to€be€the€rate€today)€that€was€requiredŠ |.Ģ)2 ŠŃ/VŃā āŃXXŃā āŃ  Ńfor€banks€to€give€to€be€an€Honor€Roll€member€was€very€aggressiveŠ ° Šat€the€time€the€Honor€Roll€was€instated.€€The€federal€funds€rateŠ \¬ Šwas€under€2%€and€falling.€€Banks€are€not€charitable€institutions,Š X Šand€interest€rates€were€going€down.€€Although€a€few€public„Š “  Šspirited€banks€came€forward€to€join€the€Honor€Roll,€the€MLSC€hadŠ ` ° Što€suffer€like€other€depositors€and€wait€until€the€rates€wentŠ  \  Šback€up.€€Rates€began€to€turn€around€in€mid„2004,€and€from€JuneŠ ø  Š2004€to€June€2006,€the€federal€funds€short„term€target€rateŠ d“  Šincreased€17€times€to€its€current€rate€of€5€1/4%.€€That€is€whenŠ `  Šwhat€is€known€as€the€š šIOLTA€phenomenonšš€that€brings€up€the€issueŠ ¼  Šof€comparability€began€to€emerge.€€When€rates€went€down,€IOLTAŠ hø Šrates€went€down.€€When€rates€went€back€up,€IOLTA€rates€wentŠ d Šnowhere.Š Ą Šą  ąMs.€Erlichman€explained€that€she€had€distributed€a€chart€atŠ l¼ Šthe€meeting€today€labeled€š šMD€Historical€Interest€RateŠ h ŠComparison:€€2003€„€2007."€€(See€Appendix€6).€€It€provides€aŠ Ä Šgraphic€picture€of€the€issue€being€discussed€today.€€The€top€lineŠ pĄ  Šin€dark€blue€represents€the€federal€funds€rate,€and€the€bottomŠ !l" Šline€in€yellow€represents€the€Maryland€IOLTA€rate.€€The€pink€lineŠ Č"$ Šis€the€average€rate€currently€paid€in€Maryland€for€a€high€balanceŠ t$Ä& Šaccount,€and€the€light€blue€line€is€the€š šsafe€harboršš€rate.€€ThisŠ  &p!( Špicture€has€been€seen€nationwide,€not€only€in€Maryland.€€TheŠ Ģ'#* ŠIOLTA€program€and€courts€around€the€country€began€to€address€thisŠ x)Č$, Šissue.€€Currently€14€states€have€adopted€IOLTA€comparabilityŠ $+t&. Šrules:€€Alabama,€Arkansas,€Connecticut,€Florida,€Illinois,Š Š, (0 ŠIndiana,€Massachusetts,€Michigan,€Minnesota,€New€Jersey,€Ohio,Š |.Ģ)2 ŠPennsylvania,€Texas,€and€Utah.€€Six€other€jurisdictions,Š ° Šincluding€the€District€of€Columbia,€are€moving€forward€to€adoptŠ \¬ Šsimilar€rules.€€The€Vice€Chair€inquired€as€to€whether€the€listedŠ X Šstates€have€adopted€a€comparability€statute€or€rule.€€Ms.Š “  ŠErlichman€replied€that€most€of€the€states€have€a€rule,€but€notŠ ` ° Šall€of€them.€€New€Yorkššs€regulation,€which€will€be€in€effect€inŠ  \  Šthe€next€10€days,€was€put€into€place€by€an€executive€regulationŠ ø  Šissued€by€the€Governor.Š d“  Šą  ąMr.€Maloney€asked€what€the€market€reaction€was€to€theseŠ `  Šrules€or€statutes€š!š„€did€banks€comply,€or€did€lawyers€move€theirŠ ¼  Šaccounts€to€other€banks?€€Ms.€Erlichman€responded€that€as€ofŠ hø Štoday,€there€is€not€one€bank€in€the€states€that€have€implementedŠ d Šcomparability€that€has€not€come€into€compliance€with€theŠ Ą Šcomparability€rule.€€Master€Mahasa€questioned€whether€the€statesŠ l¼ Šare€paying€the€highest€interest€rate€or€comparable€interestŠ h Šrates.€€Some€of€the€drafts€of€the€Rule€refer€to€the€former€andŠ Ä Šsome€to€the€latter.€€Ms.€Erlichman€answered€that€the€states€areŠ pĄ  Špaying€the€highest€interest€rates€generally€available€onŠ !l" Šcomparable€accounts.€€Mr.€Steve€Casey,€a€consultant€to€the€MLSC,Š Č"$ Šwho€is€present€at€the€meeting,€will€speak€to€this€later.€€ManyŠ t$Ä& ŠIOLTA€accounts€in€Maryland€have€balances€of€well€over€$100,000;Š  &p!( Šsome€have€over€$1,000,000.€€This€Rule€requires€that€if€a€non„Š Ģ'#* ŠIOLTA€customer,€who€needs€absolute€liquidity€and€access€to€theŠ x)Č$, Šfunds€but€wants€to€earn€the€highest€interest€rate,€opens€anŠ $+t&. Šappropriate€account,€without€other€specific€requirements,€theŠ Š, (0 Šbank€must€offer€an€IOLTA€customer€the€same€interest€rate€if€theŠ |.Ģ)2 Šfact€pattern€is€the€same€for€the€two€customers.€€The€bank€setsŠ ° Šits€rates;€this€Rule€does€not€set€bank€rates.Š \¬ Šą  ąMr.€Brault€commented€that€recently,€a€set€of€mandatoryŠ X Šethical€rules€was€revised€relating€to€the€maintenance€andŠ “  Šaccounting€of€client€funds€and€trust€accounts,€with€preciseŠ ` ° Šethical€requirements.€€A€failure€to€observe€those€requirementsŠ  \  Šwould€result€in€disciplinary€proceedings€against€the€lawyer.€€IfŠ ø  Šthe€changes€to€Rule€16„610€are€adopted,€would€it€mean€that€everyŠ d“  Šlawyer€would€have€to€shop€around€for€the€best€rates€on€the€trustŠ `  Šaccounts€or€risk€getting€into€trouble€for€violating€the€ethicalŠ ¼  Šrules?€€Ms.€Erlichman€replied€that€it€would€not,€explaining€thatŠ hø Što€implement€the€Rule,€the€MLSC€will€work€with€all€of€the€banksŠ d Šindividually€to€make€sure€that€each€bank€is€in€compliance.€€TheŠ Ą Šlawyers€do€not€have€to€look€at€the€rates€at€all.€€No€lawyer€isŠ l¼ Šrequired€to€change€banks€unless€the€bank€decides€to€end€itsŠ h Šparticipation€in€the€IOLTA€program.€Š Ä Šą  ąThe€Chair€questioned€whether€the€proposed€change€to€theŠ pĄ  ŠRules€is,€in€reality,€regulating€the€banks.€€Ms.€Erlichman€saidŠ !l" Šthat€it€is€not€regulating€banks,€noting€that€as€in€many€otherŠ Č"$ Šstates,€the€Rule€pertains€to€the€regulation€of€lawyers.€€TheŠ t$Ä& ŠChair€responded€that€if€that€is€the€case,€then€this€provision€canŠ  &p!( Šgo€into€the€Rules€of€Professional€Conduct€as€a€rule€providingŠ Ģ'#* Šthat€the€lawyer€has€to€place€his€or€her€escrow€account€with€aŠ x)Č$, Šfinancial€institution€that€pays€the€highest€interest.€€Ms.Š $+t&. ŠOgletree€disagreed,€explaining€that€there€are€lawyers€with€aŠ Š, (0 Šsmall„town€practice,€including€real€estate€settlements€that€areŠ |.Ģ)2 Šnot€handled€by€title€companies.€€Each€bank€requires€that€theŠ ° Šlawyer€have€an€escrow€account€with€it;€Ms.€Ogletree€has€fiveŠ \¬ Šdifferent€escrow€accounts.€€At€some€time,€each€account€may€have€aŠ X Šbalance€of€$3€in€it,€or€whatever€the€minimum€is€to€retain€theŠ “  Šaccount.€€When€there€is€a€large€real€estate€settlement,€there€isŠ ` ° Šmore€money€in€the€account,€and€MLSC€receives€the€interest.€€OneŠ  \  Šof€the€banks€with€which€Ms.€Ogletree€does€the€most€business€isŠ ø  Šnot€on€the€Honor€Roll€list.€€She€would€like€MLSC€to€receive€asŠ d“  Šmuch€money€as€possible,€but€the€way€to€do€that€is€to€provide€thatŠ `  Šthe€banks€must€pay€a€rate€comparable€with€whatever€they€areŠ ¼  Špaying€their€other€customers.€€The€specific€rate€does€not€matterŠ hø Šas€long€as€MLSC€is€not€getting€short„changed.€€Š d Šą  ąMr.€Bowen€expressed€the€view€that€regulating€the€banks€isŠ Ą Šmore€appropriate€for€the€legislature€and€that€the€issue€ofŠ l¼ Šcomparability€makes€no€sense,€because€there€are€no€accountsŠ h Šcomparable€to€IOLTA€accounts€with€their€specific€provisions.€€TheŠ Ä ŠVice€Chair€pointed€out€that€to€the€extent€that€this€discussionŠ pĄ  Špertains€to€the€regulation€of€banks,€this€has€already€been€theŠ !l" Šsubject€of€some€of€the€Rules€of€Procedure.€€The€Chair€added€thatŠ Č"$ Šthe€applicable€statute€expressly€refers€to€the€Rules€ofŠ t$Ä& ŠProcedure.€€Š  &p!( Šą  ąThe€Vice€Chair€expressed€the€opinion€that€this€is€not€aŠ Ģ'#* Šmatter€for€the€legislature,€because€it€has€been€part€of€the€RulesŠ x)Č$, Šfor€such€a€long€time.€€She€said€that€she€did€not€like€theŠ $+t&. ŠCommittee€note€in€Rule€16„610,€because€it€seems€to€create€moreŠ Š, (0 Šproblems€than€it€solves.€€She€suggested€that€the€note€be€deleted,Š |.Ģ)2 Šso€that€the€proposal€would€be€to€pay€on€IOLTA€accounts€theŠ ° Šcomparable€rate€that€any€equivalent€customer€would€get€or€use€theŠ \¬ Šš šsafe€harboršš€provision.€€She€asked€what€the€sanction€is€if€thereŠ X Šare€no€comparable€accounts.€€Ms.€Erlichman€replied€that€there€isŠ “  Šno€sanction.€€The€MLSC€does€not€decide€whether€a€bank€is€wrong€orŠ ` ° Šright.€€The€issue€is€whether€the€rates€are€applied€fairly.€€TheŠ  \  ŠVice€Chair€then€inquired€as€to€what€happens€if€the€rates€are€notŠ ø  Šapplied€fairly.€€Ms.€Erlichman€answered€that€the€MLSC€wouldŠ d“  Šnegotiate€with€each€bank€in€the€implementation€phase.€€HerŠ `  Šcolleague,€Mr.€Casey,€who€is€present€today,€has€been€involved€inŠ ¼  Šthe€implementation€phase€in€states€that€have€more€banks€thanŠ hø ŠMaryland.€€If€the€banks€have€a€reasonable€basis€for€stating€whatŠ d Šthe€comparable€rate€is,€the€MLSC€would€not€dispute€this.Š Ą Šą  ąThe€Vice€Chair€commented€that€it€is€very€difficult€toŠ l¼ Šdisagree€with€the€Rule.€€It€simply€provides€that€the€bank€shouldŠ h Šbe€as€fair€to€an€IOLTA€account€as€it€is€to€other€accounts.€€ItŠ Ä Šencourages€banks€to€be€equitable,€but€it€has€no€sanction.€€JudgeŠ pĄ  ŠMatricciani€remarked€that€the€sanction€is€that€a€bank€would€notŠ !l" Šbe€approved€to€be€part€of€IOLTA.€€The€Vice€Chair€noted€thatŠ Č"$ Šalthough€the€Rule€uses€the€word€š šshall,šš€it€is€more€of€anŠ t$Ä& Šencouragement€rather€than€mandatory.€€Ms.€Erlichman€said€that€toŠ  &p!( Šher€knowledge,€there€has€not€been€opposition€to€implementing€theŠ Ģ'#* ŠRule€in€other€states.€€This€is€a€rule€that€regulates€lawyers.€€IfŠ x)Č$, Ša€bank€were€paying€3%€interest€on€other€similarly€situatedŠ $+t&. Šaccounts€and€.2%€on€a€$500,000€IOLTA€account,€the€bank€would€notŠ Š, (0 Šbe€in€compliance,€and€the€lawyer€would€have€to€move€his€or€herŠ |.Ģ)2 ŠIOLTA€account€to€another€bank.€€The€Chair€asked€if€that€is€muchŠ ° Šof€a€problem€for€practitioners€in€the€smaller€jurisdictions,€whoŠ \¬ Šuse€several€banks,€because€they€must€to€be€able€to€do€so€inŠ X Šconjunction€with€real€estate€transactions.€€If€Ms.€OgletreeššsŠ “  Šbanks€will€not€cooperate,€how€much€of€a€problem€is€it€for€her€toŠ ` ° Šuse€other€banks?€€How€many€lawyers€around€the€State€are€likely€toŠ  \  Šbe€in€that€situation?€€Ms.€Ogletree€responded€that€when€sheŠ ø  Šconducts€a€real€estate€settlement,€she€must€escrow€the€funds€inŠ d“  Šthe€bank€that€is€providing€the€loan.€€Ms.€Erlichman€said€that€sheŠ `  Šhad€no€reason€to€believe€that€Maryland€is€any€different€than€theŠ ¼  Šother€14€states€that€have€a€similar€rule.€€Once€the€rule€is€inŠ hø Šeffect,€compliance€is€not€a€problem.Š d ŠŅūeŅą  ąThe€Chair€inquired€as€to€whether€the€banks€have€been€askedŠ Ą Šabout€this€program.€€Ms.€Erlichman€answered€that€the€MLSC€hasŠ l¼ Šbeen€working€with€the€banks€to€get€them€to€voluntarilyŠ h Šparticipate€ever€since€the€interest€rates€began€to€rise€again.€Š Ä ŠThe€Chair€asked€whether€the€banks€have€been€resistant€toŠ pĄ  Šparticipating.€€Ms.€Erlichman€replied€that€there€has€beenŠ !l" Šresistance.€€70%€of€Maryland€financial€institutions€pay€ratesŠ Č"$ Šthat€are€less€than€1%€to€IOLTA.€€Half€of€them€pay€less€thanŠ t$Ä& Š1/4%.€€The€Chair€questioned€as€to€how€many€banks€refuse€toŠ  &p!( Šcooperate€in€the€absence€of€a€legislative€provision€or€a€ruleŠ Ģ'#* Šchange.€€Ms.€Erlichman€responded€that€letters€have€been€sent€toŠ x)Č$, Ševery€bank€in€Maryland€asking€each€bank€to€raise€its€rate,Š $+t&. Šbecause€the€interest€rates€have€increased.€€The€MLSC€usuallyŠ Š, (0 Šreceives€no€response€or€a€negative€response.€€The€Chair€pointedŠ |.Ģ)2 Šout€that€the€headquarters€of€some€banks€with€branches€inŠ ° ŠMaryland€are€in€other€states.€€He€inquired€as€to€who€makes€theŠ \¬ Šdecision€on€behalf€of€the€bank.€€If€the€letter€is€sent€to€theŠ X ŠBank€of€America,€for€example,€it€may€be€read€by€someone€in€NorthŠ “  ŠCarolina.€€Ms.€Erlichman€noted€that€the€efforts€of€the€MLSC€haveŠ ` ° Šnot€been€totally€fruitless.€€The€Bank€of€America€has€increasedŠ  \  Šits€rate,€as€have€several€other€banks.€€IOLTA€income€hasŠ ø  Šincreased€by€$2€million.€€The€bad€news€is€that€70%€of€the€banksŠ d“  Špay€less€than€1%,€despite€the€best€efforts€of€the€MLSC.Š `  Šą  ąThe€Chair€asked€again€how€many€banks€have€refused€toŠ ¼  Šincrease€their€rates.€€There€is€a€difference€between€sending€aŠ hø Šletter€and€asking€a€bank€employee€directly.€€Ms.€Erlichman€saidŠ d Šthat€the€personal€communication€was€with€the€larger€banks.€€Mr.Š Ą ŠMichael€inquired€as€to€what€it€is€the€banks€are€being€requestedŠ l¼ Što€do.€€Ms.€Erlichman€answered€that€the€banks€are€being€asked€toŠ h Štreat€IOLTA€customers€the€same€as€they€treat€other€customersŠ Ä Šwith€similar€banking€needs.€€Mr.€Maloney€inquired€as€to€what€theŠ pĄ  Šfinancial€impact€would€be€for€IOLTA€if€all€banks€were€inŠ !l" Šcompliance.€€Ms.€Erlichman€replied€it€could€be€an€additional€$6Š Č"$ Šmillion€that€would€allow€the€MLSC€to€serve€20,000€more€low„Š t$Ä& Šincome€Marylanders,€who€have€many€legal€problems€and€are€nowŠ  &p!( Šproceeding€ņņpro€seóó.€Š Ģ'#* Šą  ąMs.€Ogletree€questioned€as€to€whether€it€would€beŠ „)Ō$, Šconsidered€to€be€comparable€for€a€bank€who€pays€.65%€to€itsŠ 0+€&. Šregular€customers€to€pay€the€same€to€the€IOLTA€customers.€€Ms.Š Ü,,(0 ŠErlichman€responded€that€passbook€interest€rates€may€not€beŠ ˆ.Ų)2 Šcomparable,€but€Mr.€Casey€would€address€this.€€The€Vice€ChairŠ ° Šasked€Ms.€Erlichman€if€she€objected€to€elimination€of€theŠ \¬ ŠCommittee€note€after€subsection€(b)(1)(D)€of€Rule€16„610.€€Ms.Š X ŠErlichman€answered€that€she€would€have€to€confer€with€Mr.€Casey.€Š “  ŠMr.€Brault€inquired€as€to€whether€there€has€been€a€study€ofŠ ` ° Šcomparability€in€terms€of€what€the€accounts€do.€€An€account€mayŠ  \  Šhave€a€certain€interest€rate,€and€the€account„holder€writes€fourŠ ø  Šchecks€a€month,€while€an€IOLTA€account„holder€may€write€400Š d“  Šchecks€a€month.€€Has€there€been€any€study€as€to€whether€theŠ `  Šservice€charges€or€the€number€of€checks€have€an€effect€on€theŠ ¼  Šrates?€€Ms.€Erlichman€replied€that€Mr.€Casey€will€speak€to€this.€Š hø Šą  ąThe€Chair€announced€that€because€Mr.€Butler,€who€hadŠ d Šsuggested€the€changes€to€several€rules€in€Agenda€Item€3,€had€toŠ Ą Šleave€the€meeting€very€soon,€the€discussion€of€Agenda€Item€1Š l¼ Šwould€be€interrupted€at€this€point.Š h ŠÓÓĢAgenda€Item€3.€€Reconsideration€of€proposed€amendmentsą0 x ąto:€€ą @Š ąą @Š ąRuleŠšźxŻ"xŻ" Š€€4„217€(Bail€Bonds),€Rule€4„242€(Pleas),€Rule€4„265€(SubpoenaŠ pĄ  Š€€for€Hearing€or€Trial),€and€Rule€4„264€(Subpoena€for€TangibleŠ F –! Š€€Evidence€Before€Trial€in€Circuit€Court)Š !l" Š________________________________________________________________Š ņ!B# ŠĢÓÓą  ąMr.€Karceski€presented€Rules€4„265,€Subpoena€for€Hearing€orŠ ž#ī% ŠTrial,€and€4„264,€Subpoena€for€Tangible€Evidence€Before€Trial€inŠ J%š ' ŠCircuit€Court,€for€the€Committeeššs€consideration.€€Š ö&F") ŠŅ` °ŅŅ` ūŅÓÓĢŌ‡XūøXXXūøŌą@˜ ˜ ģąMARYLAND€RULES€OF€PROCEDUREˆŠ x)Č$, ŠĢą@ģąTITLE€4€„€CRIMINAL€CAUSESˆŠ $+t&. ŠĢą@0 0 ģąCHAPTER€200€„€PRETRIAL€PROCEDURESˆŠ Š, (0 ŠĢŠ |.Ģ)2 Šą ø ąAMEND€Rule€4„265€to€add€definitions€to€aŠ ° Šnew€section€(a);€to€delete€language€fromŠ †Ö Šsection€(b);€to€change€the€tagline€of€andŠ \¬ Šdelete€language€from€section€(c);€to€add€aŠ 2‚ Šnew€section€(d)€providing€that€the€requestŠ X Šfor€a€subpoena€contain€a€designation€of€theŠ Ž. Šmaterials,€not€privileged,€which€constituteŠ “  Šor€contain€evidence€to€be€produced;€to€add€aŠ Š Ś Šnew€section€(e)€pertaining€to€filing€andŠ ` ° Šservice;€to€add€a€cross€reference€afterŠ 6 †  Šsection€(e);€and€to€make€stylistic€changes,Š  \  Šas€follows:Š ā 2  ŠĢĢRule€4-265.€€SUBPOENA€FOR€HEARING€OR€TRIAL€Š d“  ŠĢĢ€€ņņ(a)€€DefinitionsóóŠ ę6 ŠĢ€€€€ņņ(1)€€TrialóóŠ ’ā ŠĢą ø ą€€€€ņņFor€purposes€of€this€Rule,€š štrialššŠ >Ž Šshall€also€include€any€š šhearing.ššóóŠ d ŠĢ€€€€ņņ(2)€€Trial€SubpoenaóóŠ Ą ŠĢą ø ą€€€€ņņFor€purposes€of€this€Rule,€š štrialŠ l¼ Šsubpoenašš€shall€also€include€any€š šhearingŠ B’ Šsubpoena.ššóóŠ h ŠĢ€€ņ ņ(a)ó ó€ņņ(b)óó€Preparation€by€ClerkŠ Ä ŠĢą ø ą€€On€request€of€a€party,€the€clerk€shallŠ pĄ  Šprepare€and€issue€a€subpoena€commanding€aŠ F –! Šwitness€to€appear€to€testify€at€ņ ņa€hearing€oró óŠ !l" Štrial.€€ņ ņUnless€the€court€waives€the€timeŠ ņ!B# Šrequirements€of€this€section,€the€requestŠ Č"$ Šshall€be€filed€at€least€nine€days€beforeŠ ž#ī% Štrial€in€circuit€court,€or€seven€days€beforeŠ t$Ä& Štrial€in€District€Court,€not€including€theŠ J%š ' Šday€of€trial€and€intervening€Saturdays,Š  &p!( ŠSundays,€and€holidays.ó ó€€The€request€forŠ ö&F") Šsubpoena€shall€state€the€name,€address,€andŠ Ģ'#* Šcounty€of€the€witness€to€be€served,€the€dateŠ ¢(ņ#+ Šand€hour€when€the€attendance€of€the€witnessŠ x)Č$, Šis€required,€and€the€party€requesting€theŠ N*ž%- Šsubpoena.€€ņ ņIf€the€request€is€for€a€subpoenaŠ $+t&. Šņņduces€tecumóó,€the€request€also€shall€contain€aŠ ś+J'/ Šdesignation€of€the€documents,€recordings,Š Ö,&(0 Šphotographs,€or€other€tangible€things,€notŠ ¬-ü(1 Šprivileged,€which€constitute€or€containŠ ‚.Ņ)2 Ševidence€relevant€to€the€action,€that€are€toŠ ° Šbe€produced€by€the€witness.€€At€least€fiveŠ †Ö Šdays€before€trial,€not€including€the€day€ofŠ \¬ Štrial€and€intervening€Saturdays,€Sundays,€orŠ 2‚ Šholidays,€the€clerk€shall€deliver€theŠ X Šsubpoena€for€service€pursuant€to€Rule€4-266Š Ž. Š(b).ó 󀀩 “  ŠĢ€€ņ ņ(b)ó ó€ņņ(d)óó€Preparation€by€Party€ņņor€Officer€ofŠ ` ° Šthe€CourtóóŠ 6 †  ŠĢą ø ą€€On€request€of€a€party€entitled€to€theŠ ā 2  Šissuance€of€a€subpoena,€the€clerk€shallŠ ø  Šprovide€a€blank€form€of€subpoena€which€shallŠ ŽŽ  Šbe€filled€in€and€returned€to€the€clerk€to€beŠ d“  Šsigned€and€sealed€before€service.€€On€requestŠ :Š  Šof€an€attorney€or€other€officer€of€the€courtŠ `  Šentitled€to€the€issuance€of€a€subpoena,€theŠ ę6 Šclerk€shall€issue€a€subpoena€signed€andŠ ¼  Šsealed€but€otherwise€in€blank,€which€shall€beŠ ’ā Šfilled€in€before€service.€€ņ ņUnlessŠ hø Šimpracticable,€a€party€shall€make€a€goodŠ >Ž Šfaith€effort€to€cause€a€trial€or€hearingŠ d Šsubpoena€to€be€served€at€least€five€daysŠ ź: Šbefore€the€trial€or€hearing.ó 󀀩 Ą ŠĢ€€ņņ(e)€€Subpoena€ņņDuces€TecumóóóóŠ l¼ ŠĢą ø ą€€ņņIf€the€subpoena€is€a€subpoena€ņņducesŠ n Štecumóó,€the€request€also€shall€contain€aŠ śJ Šdesignation€of€the€documents,€recordings,Š Ö& Šphotographs,€or€other€tangible€things,€notŠ ¬ü Šprivileged,€which€constitute€or€containŠ ‚Ņ  Ševidence€relevant€to€the€action,€that€are€toŠ X Ø! Šbe€produced€by€the€witness.óóŠ .!~" ŠĢ€€ņņ(d)€€Filing€and€ServiceóóŠ Ś"*$ ŠĢą ø ą€€ņņUnless€the€court€waives€the€timeŠ †$Ö& Šrequirements€of€this€section,€the€request€forŠ \%¬ ' Šsubpoena€shall€be€filed€at€least€nine€daysŠ 2&‚!( Šbefore€trial€in€the€circuit€court,€or€sevenŠ 'X") Šdays€before€trial€in€the€District€Court,€notŠ Ž'.#* Šincluding€the€date€of€trial€and€interveningŠ “($+ ŠSaturdays,€Sundays,€and€holidays.€€At€leastŠ Š)Ś$, Šfive€days€before€trial,€not€including€theŠ `*°%- Šdate€of€the€trial€and€intervening€Saturdays,Š 6+†&. ŠSundays,€or€holidays,€the€clerk€shall€deliverŠ  ,\'/ Šthe€subpoena€for€service€pursuant€to€Rule€4„Š ā,2(0 Š266€(b).€€Unless€impracticable,€there€must€beŠ ø-)1 Ša€good€faith€effort€to€cause€a€trial€subpoenaŠ Ž.Ž)2 Što€be€served€at€least€five€days€before€theŠ ° Štrial.óóŠ †Ö ŠņņĢCross€reference:€€Code,€Health€GeneralŠ 2‚ ŠArticle,€šš4„306€requires€that€a€subpoena€toŠ X Šproduce€medical€records€without€theŠ Ž. Šauthorization€of€a€person€in€interest€beŠ “  Šaccompanied€by€a€certification€that€a€copy€ofŠ Š Ś Šthe€subpoena€has€been€served€on€the€personŠ ` ° Šwhose€records€are€being€sought€or€that€theŠ 6 †  Šcourt€has€waived€service€for€good€cause.óóŠ  \  ŠĢSource:€€This€Rule€is€derived€from€formerŠ ø  ŠRule€742€b€and€M.D.R.€742€a.€Š ŽŽ  ŠĢĢŅ°` ŅŅ°` Ņą  ąRule€4„265€was€accompanied€by€the€following€Reporterššs€Note.Š `  ŠĢŅ` °ŅŅ` °Ņą ø ą€Russell€Butler,€Esq.€pointed€out€anŠ ¼  Šinadvertent€omission€in€Rule€4„265.€€CurrentŠ ’ā Šsection€(a),€pertaining€to€subpoenas€preparedŠ hø Šby€the€clerk,€provides€that€privilegedŠ >Ž Šmaterial€should€not€be€subpoenaed,€butŠ d Šcurrent€section€(b),€pertaining€to€subpoenasŠ ź: Šprepared€by€a€party,€does€not€contain€thatŠ Ą Šprohibition.€€Mr.€Butler€suggests€adding€aŠ –ę Šnew€section€(d)€to€Rule€4„265€that€wouldŠ l¼ Šcontain€language€similar€to€that€currently€inŠ B’ Šsection€(a)€providing€that€the€request€for€aŠ h Šsubpoena€contain€a€designation€of€theŠ ī> Šmaterials,€not€privileged,€which€constituteŠ Ä Šor€contain€evidence,€relevant€to€the€action,Š šź Šthat€are€to€be€produced€by€the€witness.€€TheŠ pĄ  ŠCriminal€Subcommittee€is€in€agreement€withŠ F –! ŠMr.€Butlerššs€suggestion€to€add€a€new€sectionŠ !l" Š(d).Š ņ!B# ŠĢą ø ąIn€discussing€the€proposed€changes€toŠ ž#ī% ŠRule€4„265,€the€Rules€Committee€pointed€outŠ t$Ä& Šthat€the€Rule€refers€to€both€š šhearing€orŠ J%š ' Štrialšš€as€well€as€only€to€š štrial.šš€€ToŠ  &p!( Šcorrect€this€ambiguity,€a€definitions€sectionŠ ö&F") Šis€proposed€to€be€added€as€section€(a).€€TheŠ Ģ'#* ŠCommittee€also€expressed€the€view€that€theŠ ¢(ņ#+ Štiming€provisions€of€the€Rule€should€be€theŠ x)Č$, Šsame€whether€the€subpoena€is€prepared€by€theŠ N*ž%- Šclerk€or€by€a€private€process€server.€€TheŠ $+t&. ŠSubcommittee€proposes€to€add€a€new€sectionŠ ś+J'/ Š(e)€pertaining€to€filing€and€service€thatŠ Š, (0 Šdoes€not€differentiate€between€subpoenasŠ ¦-ö(1 Šprepared€by€the€clerk€or€subpoenas€preparedŠ |.Ģ)2 Šby€a€private€process€server.Š ° ŠĢĢą ø ąTo€address€privacy€issues€related€toŠ 2‚ Šmedical€records€required€by€Public€Law€104„Š X Š191€(1996),€the€Health€Insurance€PortabilityŠ Ž. Šand€Accounting€Act,€the€SubcommitteeŠ “  Šrecommends€adding€a€cross€reference€to€theŠ Š Ś ŠCode;€the€same€cross€reference€was€alsoŠ ` ° Špreviously€added€to€Rule€2„510.Š 6 †  ŠŌ#†XūøXXXūø×/#ŌĢĢĢĢĢĢĢŌ‡XūøXXXūøŌą@˜ ˜ ģąMARYLAND€RULES€OF€PROCEDUREˆŠ ę6 ŠĢą@ģąTITLE€4€„€CRIMINAL€CAUSESˆŠ ’ā ŠĢą@0 0 ģąCHAPTER€200€„€PRETRIAL€PROCEDURESˆŠ >Ž ŠĢĢą ø ąAMEND€Rule€4„264€to€add€a€crossŠ Ą Šreference€at€the€end€of€the€Rule,€as€follows:Š –ę ŠĢĢRule€4-264.€€SUBPOENA€FOR€TANGIBLE€EVIDENCEŠ h ŠBEFORE€TRIAL€IN€CIRCUIT€COURT€Š ī> ŠĢĢą ø ąOn€motion€of€a€party,€the€circuit€courtŠ pĄ  Šmay€order€the€issuance€of€a€subpoenaŠ F –! Šcommanding€a€person€to€produce€for€inspectionŠ !l" Šand€copying€at€a€specified€time€and€placeŠ ņ!B# Šbefore€trial€designated€documents,Š Č"$ Šrecordings,€photographs,€or€other€tangibleŠ ž#ī% Šthings,€not€privileged,€which€may€constituteŠ t$Ä& Šor€contain€evidence€relevant€to€the€action.€Š J%š ' ŠAny€response€to€the€motion€shall€be€filedŠ  &p!( Šwithin€five€days.€€Š ö&F") ŠņņĢCross€reference:€€Code,€Health€GeneralŠ ¢(ņ#+ ŠArticle,€šš4„306€requires€that€a€subpoena€toŠ x)Č$, Šproduce€medical€records€without€theŠ N*ž%- Šauthorization€of€a€person€in€interest€beŠ $+t&. Šaccompanied€by€a€certification€that€a€copy€ofŠ ś+J'/ Šthe€subpoena€has€been€served€on€the€personŠ Š, (0 Šwhose€records€are€being€sought€or€that€theŠ ¦-ö(1 Šcourt€has€waived€service€for€good€cause.Š |.Ģ)2 ŠóóĢSource:€€This€Rule€is€derived€from€formerŠ †Ö ŠRule€742€a.€€Š \¬ ŠĢĢŅ°` ŅŅ°` Ņą  ąRule€4„264€was€accompanied€by€the€following€Reporterššs€Note.Š Ž. ŠĢŅ` °ŅŅ` °Ņą ø ąSee€the€third€paragraph€of€theŠ Š Ś ŠReporterššs€Note€to€Rule€4„265.Š ` ° ŠŌ#†XūøXXXūø S#ŌĢĢŅ°` ŅŅ°` ŅÓÓą  ąMr.€Karceski€explained€that€Mr.€Butler€had€pointed€out€thatŠ ā 2  Šexisting€Rule€4„265€consists€of€sections€(a)€and€(b).€€SectionŠ ŽŽ  Š(a)€provides€that€a€request€for€a€subpoena€ņņduces€tecumóó€shallŠ :Š  Šcontain€a€designation€of€the€documents,€recordings,€photographs,Š ņB Šor€other€tangible€things,€not€privileged,€which€constitute€orŠ žī Šcontain€evidence,€while€section€(b)€does€not€refer€to€privilegedŠ Jš Šitems.€€Mr.€Butler€suggested€that€a€new€section€be€added€to€theŠ öF ŠRule€that€would€address€subpoenas€ņņduces€tecumóó€and€include€aŠ ¢ņ Šreference€to€privileged€information€as€well€as€have€a€crossŠ ZŖ Šreference€to€Code,€Health€General€Article,€šš4„306.€€The€sameŠ V Šcross€reference€appears€in€Rule€2„510,€Subpoenas.€€The€mostŠ ² Šrecent€version€of€Rule€4„265€was€handed€out€today.€€The€CodeŠ ^ ®! Šprovision€requires€that€a€subpoena€to€produce€medical€recordsŠ  "Z# Šwithout€the€authorization€of€a€person€in€interest€be€accompaniedŠ ¶#% Šby€a€certification€that€a€copy€of€the€subpoena€has€been€served€onŠ b%² ' Šthe€person€whose€records€are€being€sought.€€Rule€4„265€has€beenŠ '^") Šreconstituted.€€A€new€section€(a),€Definitions,€has€been€addedŠ ŗ( $+ Šindicating€that€the€word€š štrialšš€includes€any€hearing€and€thatŠ f*¶%- Šthe€term€š štrial€subpoenašš€includes€a€hearing€subpoena€for€theŠ ,b'/ Špurposes€of€the€Rule.€€Š ¾-)1 Šą  ąMr.€Karceski€explained€that€section€(b)€of€Rule€4„265€hadŠ ° Šbeen€section€(a).€€It€does€not€include€all€of€the€language€thatŠ \¬ Šoriginally€was€in€section€(a),€because€the€language€referring€toŠ X Šš ša€designation€of€the€documents,€recordings,€photographs,€orŠ “  Šother€tangible€things,€not€privilegedšš€has€been€deleted€from€newŠ ` ° Šsection€(b)€and€moved€to€new€section€(e),€which€refers€to€theŠ  \  Šprivileged€information.€€Relettered€section€(d),€Filing€andŠ ø  ŠService,€pertains€to€every€kind€of€subpoena.€€The€SubcommitteeŠ d“  Šagrees€that€a€request€for€subpoena€must€be€filed€at€least€nineŠ `  Šdays€before€trial€in€the€circuit€court,€which€has€been€the€ruleŠ ¼  Šfor€some€time,€not€including€the€date€of€trial€and€interveningŠ hø ŠSaturdays,€Sundays,€and€holidays.€€In€the€District€Court,€casesŠ d Šare€often€set€quickly.€€In€some€jurisdictions,€the€trial€isŠ Ą Šwithin€30€days€after€the€case€is€filed,€particularly€in€aŠ l¼ Šcriminal€case,€so€the€Subcommittee€agrees€that€the€time€forŠ h Šfiling€a€request€for€a€subpoena€in€the€District€Court€shouldŠ Ä Šremain€at€least€seven€days€before€trial.€€The€subpoena€should€beŠ pĄ  Šdelivered€to€the€party€and€served€on€the€witness€at€least€fiveŠ !l" Šdays€before€trial,€unless€there€is€some€issue€that€makes€thisŠ Č"$ Šimpractical.€€Š t$Ä& Šą  ąThe€Assistant€Reporter€pointed€out€that€the€numbering€of€theŠ  &p!( Šsections€of€the€Rule€is€not€correct.€€Mr.€Karceski€responded€thatŠ Ģ'#* Šhe€had€noticed€this,€and€he€noted€that€section€(d),€PreparationŠ x)Č$, Šby€Party€or€Officer€of€the€Court,€should€be€section€(c);€sectionŠ $+t&. Š(e),€Subpoena€ņņDuces€Tecumóó,€should€be€section€(d);€and€sectionŠ Š, (0 Š(d),€Filing€and€Service,€should€be€section€(e).€€Mr.€KarceskiŠ ˆ.Ų)2 Štold€Mr.€Butler€that€not€all€of€the€changes€to€the€Rule€that€Mr.Š ° ŠButler€had€requested€were€made.€€Mr.€Butler€said€that€theŠ \¬ Šindicated€changes€are€substantially€what€he€felt€was€necessary.€Š X ŠIt€had€been€unclear€that€rules€for€privilege€apply€to€allŠ “  Šsubpoenas,€and€that€has€been€clarified.€€Once€privilegedŠ ` ° Šinformation€is€obtained,€the€damage€cannot€be€undone.€Š  \  Šą  ąThe€Chair€hypothesized€a€case€where€the€defendant€is€chargedŠ ø  Šwith€sexual€child€abuse,€and€the€history€is€that€the€abuse€isŠ d“  Šalleged€to€have€occurred€ten€years€ago.€€The€defense€attorneyŠ `  Šknows€that€the€alleged€victim€has€been€in€and€out€of€mentalŠ ¼  Šinstitutions.€€Would€the€defense€attorney€be€prohibited€fromŠ hø Šissuing€a€subpoena€ņņduces€tecumóó€for€the€records?€€The€records€ofŠ d Šthe€prior€hospitalizations€under€the€Health€Insurance€PortabilityŠ Ģ Šand€Accounting€Act,€PL€104„191€and€Code,€Health€General€ArticleŠ xČ Šare€either€privileged,€confidential,€or€both€and€may€beŠ $t Šinadmissible€for€other€reasons.€€The€Rule€should€not€state€thatŠ Š  Šthe€records€cannot€be€subpoenaed.€€Privilege€can€be€asserted,€andŠ |Ģ  Šthe€judge€will€resolve€the€issue.€€Mr.€Butler€responded€that€theŠ (!x" ŠRule€already€provides€that€records€containing€privilegedŠ Ō"$$ Šinformation€cannot€be€subpoenaed.€€The€Rule€is€consistent€withŠ €$Š& Švarious€cases,€includingņņóó€ņņU.S.€v.€Nixonóó,€418€U.S.€683€(1974)€andņņŠ ,&|!( ŠPennsylvania€v.€Ritchieóó,€480€U.S.€39€(1987),€which€hold€thatŠ ä'4#* Šthere€must€be€a€judicial€determination.€€This€is€consistent€withŠ œ)ģ$, Šthe€Maryland€case€law€inņņ€Zaal€v.€Stateóó,€326€Md.€54€(1992)€andŠ H+˜&. ŠņņFisher€v.€Stateóó,€128€Md.€App.€79€(1999).€€ņņóóThe€existing€RuleŠ -P(0 Šrequires€that€records€as€to€which€a€privilege€is€asserted€may€beŠ ° Šobtained€only€by€court€order,€not€by€subpoena.€€The€Chair€saidŠ \¬ Šthat€if€the€Rule€is€to€be€changed,€the€current€language€can€beŠ X Šdeleted.€€The€Rule€should€state€that€the€records€can€beŠ “  Šsubpoenaed,€and€if€a€privilege€is€asserted,€the€judge€willŠ ` ° Šdecide.€€Mr.€Karceski€remarked€that€when€he€has€been€in€the€typeŠ  \  Šof€situation€similar€to€the€Chairššs€hypothetical€situation,€heŠ ø  Šhas€sent€a€subpoena€with€a€letter€to€the€medical€institution€andŠ d“  Šfiled€a€copy€with€the€Stateššs€Attorney€and€the€court.€€The€letterŠ `  Šexplains€that€he€is€asking€for€the€information,€but€he€does€notŠ ¼  Šwant€it€until€the€court€has€been€able€to€rule€upon€it.€€HisŠ hø Šfeeling€is€that€the€subpoena€should€go€out€to€the€person€who€willŠ d Šknow€that€this€information€is€being€sought,€so€that€the€trialŠ Ą Šdate€of€the€case€is€not€delayed.€€If€there€is€to€be€an€objection,Š l¼ Šit€can€be€dealt€with€by€way€of€a€hearing€or€by€way€of€a€courtššsŠ h Šorder.€€€If€the€language€precluding€subpoenas€of€records€isŠ Ä Šdeleted€from€the€Rule,€this€procedure€may€be€left€to€occur€in€anŠ pĄ  Šunbridled€manner.€€The€Chair€agreed€with€Mr.€Karceski.€€The€RuleŠ !l" Šdoes€not€provide€for€the€procedure€described€by€Mr.€Karceski,€butŠ Č"$ Šit€has€worked€well€for€him.Š t$Ä& Šą  ąThe€Chair€asked€Mr.€Butler€if€he€had€any€other€comments.€Š  &p!( ŠMr.€Butler€reiterated€that€it€appears€to€have€been€an€oversightŠ Ģ'#* Što€exclude€the€reference€to€privileged€information€in€existingŠ x)Č$, Šsection€(b).€€Mr.€Karceski€explained€that€the€addition€of€theŠ $+t&. Šcross€reference€that€is€also€in€Rule€2„510€was€in€response€to€Mr.Š Š, (0 ŠButlerššs€suggestion.€€Mr.€Butler€clarified€that€at€the€previousŠ |.Ģ)2 ŠRules€Committee€meeting,€the€Chair€had€asked€for€a€reference€toŠ ° Šhealth€record€privacy€issues.€€By€consensus,€the€CommitteeŠ \¬ Šapproved€Rules€4„265€and€4„264€as€presented.Š X ŠņņÓÓAgenda€Item€1.€(continued)óóŠ “  ŠĢÓÓą  ąMr.€Casey€told€the€Committee€that€he€was€with€theŠ ` ° ŠMassachusetts€IOLTA€program,€and€that€Massachusetts€recentlyŠ  \  Šenacted€a€similar€provision€to€the€one€being€proposed€in€Rule€16„Š ø  Š610.€€He€said€that€prior€to€working€with€the€IOLTA€program,€heŠ d“  Šhad€been€in€the€banking€industry€for€eight€years€and€he€is€theŠ `  Šimmediate€past€President€of€the€National€Association€of€IOLTA.€Š ¼  ŠHe€wanted€to€share€with€the€Committee€the€experience€of€theŠ hø ŠMassachusetts€IOLTA€Committee.€€The€same€problems€of€ratesŠ d Šoccurred€in€Massachusetts;€a€few€banks€paid€reasonable€rates€onŠ Ą ŠIOLTA€accounts,€but€far€too€many€paid€.1€of€1%.€€To€achieve€aŠ l¼ Šstandard€of€fairness,€the€Massachusetts€comparability€rule€wasŠ h Šadopted€in€August€2006,€with€an€effective€date€of€January€1,Š Ä Š2007.€€There€are€approximately€200€financial€institutions€inŠ pĄ  ŠMassachusetts,€and€all€of€those€are€certified€to€be€in€complianceŠ !l" Šwith€the€Rule.€€No€bank€opted€out€of€participating€in€IOLTA.€€TheŠ Č"$ Šaverage€interest€rate€increased€from€approximately€1.25%€to€2.5%,Š t$Ä& Šeffectively€doubling€the€IOLTA€interest€rate.€Š  &p!( Šą  ąJudge€Matricciani€inquired€as€to€whether€the€banks€inŠ Ģ'#* ŠMassachusetts€had€a€problem€determining€comparability.€€Mr.€CaseyŠ x)Č$, Šreplied€that€there€was€no€problem.€€The€Rule€in€Massachusetts€isŠ $+t&. Šmore€lengthy€than€in€Maryland€and€was€purposely€crafted€toŠ Š, (0 Šidentify€comparability.€€It€includes€some€of€the€provisions€ofŠ |.Ģ)2 Šthe€Committee€note€that€is€proposed€to€be€added€to€Rule€16„610€toŠ ° Šgive€the€banks€guidance.€€The€program€in€Illinois€had€anŠ \¬ Šeffective€date€of€June€1,€2007.€€All€of€that€stateššs€financialŠ X Šinstitutions€have€been€certified€as€in€compliance€with€the€IOLTAŠ “  Šprogram.€€The€Vice€Chair€questioned€as€to€who€in€MassachusettsŠ ` ° Šcertifies€that€the€banks€are€in€compliance.€€Mr.€Casey€repliedŠ  \  Šthat€the€IOLTA€program€certifies.€€The€Vice€Chair€asked€if€theŠ ø  Šcertification€in€Maryland€is€done€by€the€Attorney€GrievanceŠ d“  ŠCommission.€€Ms.€Erlichman€responded€that€the€MLSC€works€inŠ `  Šconjunction€with€the€Attorney€Grievance€Commission.€€Š ¼  Šą  ąMr.€Casey€commented€that€across€the€country,€in€the€14Š hø Šstates€that€have€IOLTA€programs€in€place,€there€are€1500Š d Šcertified€banks.€€National€banks€operating€in€Maryland€such€asŠ Ą ŠCitibank€and€Bank€of€America,€as€well€as€regional€banks€such€asŠ l¼ ŠSuntrust€and€Wachovia,€have€already€gone€through€this€process€inŠ h Šother€states.€€The€Chair€asked€whether€these€banks€have€refusedŠ Ä Što€cooperate€in€Maryland.€€Ms.€Erlichman€replied€affirmatively.€Š pĄ  ŠFor€example,€for€one€bank,€it€took€her€some€time€to€track€downŠ !l" Šthe€correct€bank€representative,€who€was€located€in€NorthŠ Č"$ ŠCarolina.€€The€bank€representative€refused€to€cooperate.€€TheŠ t$Ä& Šbank€has€increased€its€rate€somewhat,€but€the€bank€pays€much€moreŠ  &p!( Šcompetitive€rates€in€the€š šcomparabilityšš€states,€where€it€isŠ Ģ'#* Šrequired€to€do€so€if€it€wishes€to€provide€IOLTA€accounts.€€TheŠ x)Č$, Šbank€was€not€going€to€increase€IOLTA€rates€any€higher,€unless€itŠ $+t&. Šis€required€to€do€so.€€The€Chair€observed€that€the€bank€hadŠ Š, (0 Šincreased€the€rate€some,€but€it€was€not€what€the€MLSC€was€hopingŠ |.Ģ)2 Šfor.€€Ms.€Erlichman€said€that€the€Federal€Funds€Target€Rate€hadŠ ° Šincreased€from€1%€to€5€1/4%,€but€the€bank€increased€the€IOLTAŠ \¬ Šrate€only€slightly.€€Although€MLSC€is€grateful€for€any€increase,Š X Šthe€new€rate€is€not€a€comparable€interest€rate€with€the€rate€paidŠ “  Što€other€customers.€€The€Chair€noted€that€it€is€interesting€thatŠ ` ° Šthe€bank€offers€comparable€rates€in€some€states,€but€not€inŠ  \  Šothers.€€Ms.€Erlichman€responded€that€they€offer€comparable€ratesŠ ø  Šin€states€that€have€the€Rule€being€discussed€today.€€Š d“  Šą  ąThe€Vice€Chair€inquired€as€to€whether€the€Rules€in€otherŠ `  Šstates€specify€which€accounts€are€comparable€to€the€IOLTAŠ ¼  Šaccounts.€€Mr.€Casey€replied€that€some€states€do,€while€some€doŠ hø Šnot.€€Massachusetts€is€one€that€so€specifies.€€The€Vice€ChairŠ d Šquestioned€Mr.€Casey€as€to€whether€there€was€much€argument€overŠ Ą Šwhat€is€comparable.€€Mr.€Casey€answered€that€once€the€Rule€becameŠ l¼ Šeffective,€the€arguments€ended.€€The€Chair€asked€what€the€exactŠ h Šlanguage€of€the€Massachusetts€Rule€is€that€seems€to€have€solvedŠ Ä Šthe€problem.€€Mr.€Casey€responded€that€it€is€comparable€to€theŠ pĄ  Šlanguage€in€the€Committee€note€proposed€to€be€added€to€Rule€16„Š !l" Š610,€but€the€Massachusetts€version€is€much€lengthier.€€ItŠ Č"$ Šexplains€which€accounts€are€not€comparable,€such€as€money€marketŠ t$Ä& Šaccounts.€€The€Vice€Chair€inquired€as€to€which€accounts€areŠ  &p!( Šconsidered€to€be€comparable.€€Mr.€Casey€replied€that€checkingŠ Ģ'#* Šaccounts€with€preferred€interest€rates€are€comparable.€€MostŠ x)Č$, Šinstitutions€offer€three€or€four€types€of€checking€accounts.€Š $+t&. ŠGenerally,€the€IOLTA€accounts€are€on€the€low€end€of€interestŠ Š, (0 Šrates.€€The€Vice€Chair€pointed€out€that€the€devil€seems€to€be€inŠ |.Ģ)2 Šthe€details€as€to€what€comparability€is.€€The€Chair€added€that€itŠ ° Šmust€be€defined€as€specifically€as€possible.€€Mr.€Casey€respondedŠ \¬ Šthat€another€way€is€to€provide€in€the€Rule€for€the€IOLTA€programŠ X Što€have€the€authority€to€negotiate€with€the€banks.€€€Š “  Šą  ąThe€Vice€Chair€said€that€in€Maryland,€the€authority€would€beŠ ` ° Šgiven€to€the€Attorney€Grievance€Commission€whose€members€are€notŠ  \  Šreally€qualified€to€determine€comparability.€€Mr.€Casey€told€theŠ ø  ŠCommittee€that€to€explain€comparability€standards,€it€isŠ d“  Šnecessary€to€look€at€the€language€in€subsection€b€1€(D)€of€RuleŠ `  Š16„610€that€reads:€š ša€rate€that€is€no€less€than€the€highestŠ ¼  Šinterest€rate€generally€available€from€the€institution€to€itsŠ hø Šnon„IOLTA€customers...šš.€€The€standard€is€not€the€highest€yieldŠ d Šaccount€that€the€bank€offers,€but€the€interest€rate€any€customerŠ Ą Šcan€ask€for,€depending€on€the€amount€of€money€in€the€account.€€Š l¼ ŠThe€Chair€asked€which€states€have€instituted€this€procedure€byŠ h Šstatute€as€opposed€to€by€rule.€€Mr.€Casey€answered€that€threeŠ Ä Šstates€have€the€procedure€created€by€statute.€€Judge€NortonŠ pĄ  Šinquired€as€to€how€the€process€to€compare€accounts€was€designed.€Š !l" ŠWas€it€a€dialogue€between€the€courts€and€the€banks?€€Mr.€CaseyŠ Č"$ Šanswered€that€what€is€relevant€is€a€relatively€small€universe€ofŠ t$Ä& Šaccounts€that€have€to€be€transactional€accounts.€€€They€areŠ  &p!( Šchecking€accounts€with€preferred€rates€or€an€account€with€anŠ Ģ'#* Šovernight€investment€feature.€€Judge€Norton€questioned€as€toŠ x)Č$, Šwhether€the€accounts€have€certain€common€features,€and€Mr.€CaseyŠ $+t&. Šanswered€affirmatively.€€Š Š, (0 Šą  ąMr.€Michael€inquired€if€there€is€any€data€as€to€whetherŠ |.Ģ)2 Šthere€is€greater€compliance€with€the€statutes€that€have€moreŠ ° Šspecific€language€as€opposed€to€the€statutes€with€more€generalŠ \¬ Šlanguage.€€Mr.€Casey€replied€that€the€process€is€more€lengthy€inŠ X Šthe€states€that€do€not€have€the€specific€language.€€The€ChairŠ “  Šasked€if€Mr.€Caseyššs€recommendation€is€for€Maryland€to€follow€theŠ ` ° Šlead€of€Massachusetts€and€provide€the€details€as€to€the€accountsŠ  \  Šthat€are€relevant€instead€of€just€using€the€term€š šcomparable.šš€Š ø  ŠMr.€Casey€agreed€that€that€was€his€recommendation.€€JudgeŠ d“  ŠMatricciani€questioned€as€to€whether€Mr.€Casey€could€provideŠ `  Šexamples€of€this€in€writing.€€Mr.€Casey€answered€that€they€are€inŠ ¼  Šthe€guidelines€of€the€courts,€and€he€would€provide€the€CommitteeŠ hø Šwith€a€copy€of€it.€€Š d Šą  ąMr.€Brault€asked€how€a€sweep€feature€would€work€in€an€IOLTAŠ Ą Šaccount.€€Mr.€Casey€replied€that€he€had€planned€to€talk€aboutŠ l¼ Šsweep€accounts,€because€they€are€one€of€the€best€vehicles€forŠ h ŠIOLTA€accounts.€€Massachusetts€first€started€using€sweep€accountsŠ Ä Šin€1996.€€They€are€commonly€used€by€law€firms€for€investingŠ pĄ  Šshort„term€funds€and€are€swept€into€secure€investments.€Š !l" ŠInvisible€to€the€attorney,€the€funds€are€swept€out€overnight,Š Č"$ Šthen€come€back€into€the€account,€effectively€giving€a€much€betterŠ t$Ä& Šinterest€rate.€€This€feature€is€usually€offered€by€banks€onŠ  &p!( Šaccounts€with€large€balances.€€There€is€some€administrative€costŠ Ģ'#* Što€setting€this€up.€€Massachusetts€and€other€states€have€usedŠ x)Č$, Šthis€as€a€benchmark€for€interest€rates,€including€calculating€theŠ $+t&. Šadministrative€cost€of€setting€up€this€account.€€Š Š, (0 Šą  ąThe€Vice€Chair€commented€that€a€sweep€account€means€that€theŠ |.Ģ)2 Šbank€has€the€ability€to€sweep€the€money€out€of€the€account€for€aŠ ° Šperiod€of€time.€€She€inquired€if€the€bank€pays€the€account„holderŠ \¬ Ša€higher€interest€rate€for€the€ability€to€do€this.€€Mr.€CaseyŠ X Šreplied€affirmatively.€€The€Vice€Chair€asked€whether€an€IOLTAŠ “  Šaccount€would€have€to€be€set€up€as€a€sweep€account€in€order€toŠ ` ° Šget€the€best€interest€rate.€€Mr.€Casey€answered€in€the€negative.€Š  \  ŠThe€Vice€Chair€questioned€as€to€how€an€account€that€is€not€aŠ ø  Šsweep€account€would€deserve€the€same€high€interest€rate.€€Mr.Š d“  ŠCasey€responded€that€often€the€banks€will€offer€a€similar€rateŠ `  Šwithout€having€to€set€up€the€account€as€a€sweep€account.€€TheŠ ¼  Šbanks€may€offer€a€comparable€product€which€is€cost„effective€forŠ hø Šthem€to€offer€at€a€slightly€lower€interest€rate.€€The€Vice€ChairŠ d Šinquired€if€this€involves€a€negotiation€process,€and€Mr.€CaseyŠ Ą Šanswered€that€sometimes€it€does€involve€this€process.€€MasterŠ l¼ ŠMahasa€inquired€as€to€whether€this€offer€is€for€some€limitedŠ h Šperiod€of€time.€€Mr.€Casey€explained€that€it€is€a€floating€rateŠ Ä Šproduct€based€on€whatever€the€current€ratio€is€at€that€point€inŠ pĄ  Štime.€€Senator€Stone€questioned€as€to€whether€the€comparable€rateŠ !l" Šbeing€discussed€is€a€rate€comparable€to€other€checking€accounts.€Š Č"$ ŠMr.€Casey€responded€that€it€is€not€comparable€to€certificates€ofŠ t$Ä& Šdeposit€or€money€market€accounts,€but€only€to€other€checkingŠ  &p!( Šaccounts.Š Ģ'#* Šą  ąThe€Chair€asked€what€the€difference€would€be€with€respect€toŠ x)Č$, Šthe€money€being€raised€in€Massachusetts€for€IOLTA€if€instead€ofŠ $+t&. Štelling€the€bank€that€it€has€six€options,€the€Rule€simply€statedŠ Š, (0 Šthat€the€interest€rate€would€be€equal€to€a€stated€percentage€ofŠ |.Ģ)2 Šthe€net€yield€of€the€federal€funds€target€rate.€€There€would€beŠ ° Šno€dispute€as€to€what€the€obligation€is€and€no€fight€over€what€isŠ \¬ Šcomparable.€€Using€a€percentage€would€simplify€the€process.€€TheŠ X Šlawyer€is€informed€that€the€lawyerššs€money€must€be€put€intoŠ “  Šcertain€approved€institutions,€and€then€the€institution€is€toldŠ ` ° Šwhat€it€has€to€do€to€get€approved.€€Mr.€Casey€remarked€that€banksŠ  \  Šcannot€be€told€what€rates€they€have€to€pay.€€The€Vice€ChairŠ ø  Šcommented€that€this€may€be€preferable€to€arguing€endlessly€as€toŠ d“  Šwhat€a€š šcomparablešš€rate€means.€€Judge€Dryden€noted€that€smallŠ `  Šbanks€may€not€be€able€to€do€this.Š ¼  Šą  ąDelegate€Vallario€said€that€he€would€give€the€Committee€aŠ hø Šhistory€of€this€issue.€€In€1982,€when€IOLTA€was€created,€all€ofŠ d Šthe€real€estate€companies,€including€the€title€companies,€had€toŠ Ą Špay€interest€to€wherever€the€legislature€instructed€them.€€TheŠ l¼ Šreal€estate€lobbyists€were€successful€in€getting€real€estateŠ h Šcompanies€excluded€from€paying€interest€to€IOLTA.€€Years€later,€aŠ Ä Šbill€was€passed€that€placed€the€money€from€title€and€escrowŠ pĄ  Šcompanies,€which€is€the€majority€of€the€money€that€is€in€escrowŠ !l" Šin€the€State,€into€affordable€housing.€€That€would€be€aŠ Č"$ Šcomparable€rate,€probably€identical€to€what€is€now€being€paid€byŠ t$Ä& ŠIOLTA.€€He€expressed€the€view€that€the€legislature€should€look€atŠ  &p!( Šthis€entire€issue€at€one€time.€€The€issue€of€the€interest€paid€byŠ Ģ'#* Štitle€companies,€who€are€not€lawyers,€cannot€be€addressed€byŠ x)Č$, Šrule.€€Delegate€Vallario€inquired€as€to€whether€there€is€any€riskŠ $+t&. Šassociated€with€sweep€accounts.€€Mr.€Casey€replied€that€the€riskŠ Š, (0 Šis€the€same€as€putting€the€money€in€any€bank€account.€€Š |.Ģ)2 Šą  ąMs.€Potter€asked€Mr.€Casey€if€the€average€rate€of€interestŠ ° Šon€IOLTA€accounts€went€up€after€the€new€rule€was€instated.€€Mr.Š \¬ ŠCasey€confirmed€that€the€rate€in€Massachusetts€doubled,€which€hasŠ X Šbeen€a€fairly€common€experience.€€It€went€up€to€2.5%,€althoughŠ “  Šthat€is€not€the€highest€rate€in€the€region.€€The€Vice€ChairŠ ` ° Šinquired€as€to€whether,€in€Massachusetts,€if€one€bank€offeredŠ  \  Šboth€checking€accounts€paying€preferred€interest€rates€andŠ ø  Šchecking€accounts€with€one€of€the€automated€investment€features,Š d“  Šand€the€interest€rates€are€different,€how€the€comparable€rate€isŠ `  Šdetermined.€€Mr.€Casey€answered€that€it€is€basically€aŠ ¼  Šnegotiation€with€the€bank€to€arrive€at€a€blended€rate.€€SenatorŠ hø ŠStone€questioned€as€to€whether€the€Massachusetts€bankŠ d Šcommissioner€is€involved€in€the€process.€€Mr.€Casey€replied€thatŠ Ą Šthe€bank€commissioner€is€aware€of€this€but€is€not€directlyŠ l¼ Šinvolved.€Š h Šą  ą€Wilhelm€Joseph,€Executive€Director€of€the€Legal€Aid€Bureau,Š Ä Šwas€the€next€speaker.€€He€said€that€he€wished€to€speak€about€theŠ pĄ  Špeople€whom€the€Rule€is€trying€to€help.€€There€is€precedent€forŠ !l" Šthe€Committee€to€act,€since€the€Committee€has€acted€before.€€TheŠ Č"$ ŠIOLTA€concept€is€very€interesting.€€The€U.S.€Supreme€Court€hasŠ t$Ä& Šruled€that€the€money€generated€by€the€work€of€lawyers€thatŠ  &p!( Šproduces€interest€may€be€used€in€all€states€to€help€people€inŠ Ģ'#* Šcivil€legal€situations€who€are€experiencing€poverty€conditions.€Š x)Č$, ŠThe€interest€is€small€in€individual€accounts,€but€when€it€isŠ $+t&. Šaggregated€it€becomes€a€substantial€amount€of€money€that€does€notŠ Š, (0 Šbelong€to€the€lawyer€or€the€client.€€A€lawyer€who€has€personalŠ |.Ģ)2 Šmoney€in€the€bank€has€the€motivation€to€act€if€the€bank€does€notŠ ° Šact€fairly,€and€the€client€who€has€money€in€the€bank€has€theŠ \¬ Šmotivation€to€act.€€Who€has€the€motivation€to€protect€low„incomeŠ X Špeople?€€It€is€the€banks€against€the€little€people€who€have€noŠ “  Švoice.€€Š ` ° Šą  ąMr.€Joseph€told€the€Committee€that€he€is€a€1972€graduate€ofŠ  \  Šthe€University€of€Mississippi€Law€School.€€He€ran€Legal€AidŠ ø  Šprograms€in€Mississippi,€New€York,€and€Maryland.€€The€subject€ofŠ d“  Šhow€lawyers€should€protect€the€interest€that€is€generated€fromŠ `  Štheir€respective€clientsšš€funds€is€on€the€agenda€today€for€aŠ ¼  Šcritical€reason.€€In€Maryland,€as€in€all€other€states,€there€isŠ hø Šan€intolerable€amount€of€suffering€and€hardship€in€every€one€ofŠ d Šthe€24€counties.€€In€Maryland,€500,000€persons€are€economicallyŠ Ą Šdisadvantaged€and€eligible€for€the€civil€legal€services€providedŠ l¼ Šby€the€Legal€Aid€Bureau€and€other€entities.€Š h Šą  ąThe€Chair€said€to€Mr.€Joseph€that€the€Committee€is€inŠ Ä Šagreement€as€to€the€need€for€legal€services€for€the€disadvantagedŠ pĄ  Šcitizens€of€Maryland€and€is€very€sensitive€to€the€need€of€theŠ !l" ŠLegal€Aid€Bureau€and€the€poor.€€The€purpose€of€the€discussionŠ Č"$ Štoday€is€whether€a€rule€should€be€passed.€Š t$Ä& Šą  ąMr.€Garten€was€the€next€speaker.€€He€told€the€Committee€thatŠ  &p!( Šhe€had€been€the€Chair€of€the€MLSC€for€nine€years€and€wasŠ Ģ'#* Šfortunate€to€have€been€appointed€by€President€Bush€to€one€of€theŠ x)Č$, ŠDemocratic€slots€on€the€National€Legal€Services€CorporationŠ $+t&. ŠBoard.€€He€stated€that€there€is€no€question€about€the€need€forŠ Š, (0 Šthe€funds€for€legal€services.€€Twenty€years€ago,€only€20€to€25%Š |.Ģ)2 Šof€poor€citizens€needing€legal€services€were€receiving€thoseŠ ° Šservices.€€That€percentage€has€not€changed,€notwithstanding€theŠ \¬ Šfact€that€there€have€been€more€dollars€to€put€into€the€Fund.€€Mr.Š X ŠGarten€commented€that€he€would€like€to€clarify€that€what€is€beingŠ “  Šdiscussed€is€checking€accounts.€€The€MLSC€and€Ms.€Erlichman€feelŠ ` ° Šthat€the€proposed€Rule€with€the€Committee€note€will€put€MarylandŠ  \  Šin€substantially€the€same€position€as€Massachusetts.€€Mr.€GartenŠ ø  Šinquired€if€Mr.€Casey€had€been€referring€to€the€interest€ratesŠ d“  Špaid€on€checking€accounts,€in€particular,€the€high€balanceŠ `  Šchecking€accounts,€and€Mr.€Casey€replied€in€the€affirmative.€€Š ¼  Šą  ąThe€Vice€Chair€asked€Mr.€Casey€for€an€example€of€an€interestŠ hø Šrate€on€a€checking€account€paying€preferred€interest€rates.€€Mr.Š d ŠCasey€answered€that€such€an€account€could€pay€1šš%.€€She€thenŠ Ą Šinquired€what€the€interest€rate€would€be€for€a€sweep€account.€€Š l¼ ŠMr.€Casey€replied€that€it€could€be€3šš%.€€The€Vice€Chair€expressedŠ h Šthe€opinion€that€she€believes€in€providing€funding€for€thoseŠ Ä Špeople€who€need€help,€is€100%€in€favor€of€IOLTA,€and€is€100%Š pĄ  Šagainst€the€banks€paying€less€on€an€IOLTA€account€than€on€aŠ !l" Šsimilar€other€account.€€She€stated€her€dislike€for€talking€aboutŠ Č"$ Šthe€specific€rates€that€banks€pay.€€She€added€that€she€isŠ t$Ä& Šinterested€in€clarity,€and€suggested€that€it€may€be€preferable€toŠ  &p!( Šdraft€a€rule€requiring€payment€of€not€less€than€the€lowestŠ Ģ'#* Šinterest€rate€generally€available€on€a€comparable€product.€€SheŠ x)Č$, Šis€not€so€sure€that€a€sweep€account€is€comparable,€since€theŠ $+t&. ŠIOLTA€account€may€not€be€a€sweep€account.€€She€remarked€that€sheŠ Š, (0 Šwas€focusing€on€the€particulars€and€not€on€the€concept.Š |.Ģ)2 Šą  ąMr.€Brault€commented€that€he€had€had€a€bank€account€as€toŠ ° Šwhich€there€was€a€limit€on€the€number€of€checks€that€could€beŠ \¬ Šwritten.€€The€account€paid€a€higher€interest€rate€because€of€thisŠ X Šlimit.€€At€one€point,€he€exceeded€the€allowed€number€of€checks,Š “  Šand€the€bank€sent€him€a€letter€chastising€him.€€An€attorneyŠ ` ° Šwriting€100€checks€a€month€is€different€than€someone€writing€fiveŠ  \  Šchecks€a€month.€€How€can€comparability€be€measured€if€only€theŠ ø  Šrate€is€taken€into€consideration?€€Mr.€Casey€replied€that€it€hasŠ d“  Što€be€comparable€on€all€of€the€facts€that€Mr.€Brault€set€out.€Š `  ŠThe€type€of€account€he€just€described€is€not€suitable€for€anŠ ¼  ŠIOLTA€account.€€Mr.€Brault€inquired€as€to€how€the€bank€debatesŠ hø Šwith€legal€service€agencies€on€the€number€of€transactions€as€itŠ d Šrelates€to€bank€costs€to€maintain€the€accounts.€€Mr.€CaseyŠ Ą Šanswered€that€in€Maryland,€some€banks€are€in€the€IOLTA€program,Š l¼ Šsome€are€not.€€Some€banks€charge€maintenance€fees,€some€do€not.Š h ŠSome€charge€sweep€fees,€some€do€not.€€Mr.€Brault€remarked€thatŠ Ä Šproblems€with€transactional€limits€can€be€offset€with€serviceŠ pĄ  Šfees.€€Mr.€Casey€agreed€with€this€statement.Š !l" Šą  ąMr.€Karceski€expressed€his€agreement€with€the€Vice€Chair,Š Č"$ Šnoting€that€it€is€difficult€to€determine€the€highest€comparableŠ t$Ä& Šrate€of€return.€€If€the€goal€is€payment€of€a€fair€rate,€it€mightŠ  &p!( Šbe€preferable€to€write€the€rule€as€suggested€by€the€Vice€Chair.€Š Ģ'#* ŠIt€will€be€twice€the€rate€currently€paid,€and€any€number€ofŠ x)Č$, Šchecks€can€be€written.€€Mr.€Casey€observed€that€Maryland€probablyŠ $+t&. Šis€already€at€the€lowest€rate.€€The€Vice€Chair€remarked€that€theŠ Š, (0 Šlanguage€of€the€rule€would€be€the€lowest€ņņcomparableóó€rate.€€TheŠ |.Ģ)2 ŠChair€said€that€he€looked€at€the€Massachusetts€IOLTA€GuidelinesŠ ° Šdated€July€26,€2006€that€were€distributed€at€the€meeting€today.€Š \¬ ŠOn€page€2,€under€subsection€1.€(a)€Comparability€Options,€numberŠ X Š6.€reads:€š ša€safe€harbor€rate€equal€to€55%€net€yield€of€theŠ “  ŠFederal€Funds€Target€Rate.šš€€The€Committee€can€follow€thisŠ ` ° Šexample€and€propose€a€rule,€if€it€chooses€to€do€so,€that€willŠ  \  Šeliminate€the€issue€regarding€negotiation€to€determineŠ ø  Šcomparability.€€There€will€then€be€a€rule€that€everyone€willŠ d“  Šunderstand.€€Ms.€Ogletree€pointed€out€that€this€might€not€beŠ `  Šappropriate€for€some€of€the€smaller€local€banks€that€do€not€payŠ ¼  Šthis€much€on€their€other€accounts.€€The€Chair€responded€that€thisŠ hø Šis€a€problem.€€Š d Šą  ąMr.€Casey€observed€that€not€all€IOLTA€accounts€are€š šcreatedŠ Ą Šequal.šš€€Some€have€small€amounts€of€money€in€them,€some€have€hugeŠ l¼ Šamounts.€€The€legal€services€organizations€try€to€reconcile€thatŠ h Šproblem€with€the€banks.€€The€Rule€should€be€as€clear€as€possible,Š Ä Šleaving€the€details€up€to€the€program.€€The€Chair€said€that€anŠ pĄ  Šinterest„bearing€checking€account€that€pays€a€rate€based€on€theŠ !l" ŠFederal€Funds€Target€Rate€is€easy€to€understand.€€If€that€is€whatŠ Č"$ Šis€used€to€compute€the€interest€rate,€it€should€be€clear€toŠ t$Ä& Ševeryone.€€Then€the€banks€do€not€have€to€offer€a€higher€rate,Š  &p!( Šwith€additional€service€fees€charged,€or€devise€otherŠ Ģ'#* Šarrangements.€€Everyone€knows€what€the€rule€is,€and€they€eitherŠ x)Č$, Šcomply€with€it,€or€they€opt€out€of€offering€IOLTA€accounts.€€TheŠ $+t&. Šproblem€is€for€the€smaller€communities,€with€smaller€banks.€€Ms.Š Š, (0 ŠOgletree€pointed€out€that€her€community€does€not€have€a€big€bank.€Š |.Ģ)2 ŠMr.€Casey€acknowledged€that€a€small€bank€may€have€only€oneŠ ° Šproduct€to€offer.€€Mr.€Karceski€asked€Mr.€Casey€if€there€areŠ \¬ Šbanks€in€Massachusetts€participating€in€IOLTA€that€are€comparableŠ X Što€small€banks€with€which€Ms.€Ogletree€does€business.€€Mr.€CaseyŠ “  Šreplied€that€there€are€similar€banks,€and€they€all€participate€inŠ ` ° ŠIOLTA.€€Several€had€to€work€out€some€problems,€but€none€optedŠ  \  Šout.€€Š ø  Šą  ąMaster€Mahasa€inquired€as€to€whether€the€negotiations€withŠ d“  Šthe€banks€to€participate€in€IOLTA€have€been€extensive.€€Mr.€CaseyŠ `  Šanswered€that€this€varies€state€by€state.€€The€banks€understandŠ ¼  Šthe€system,€and€the€negotiations€have€not€been€very€protracted.€€Š hø Šą  ąMr.€Garten€told€the€Committee€that€at€the€national€level,Š d Šthe€Federal€Legal€Services€Corporation,€as€well€as€the€AmericanŠ Ą ŠBar€Association,€tracks€what€is€happening€with€IOLTA€throughoutŠ l¼ Šthe€country.€€Maryland€has€always€been€at€the€forefront€withŠ h Šmandatory€reporting,€but€Maryland€has€been€lagging€as€toŠ Ä Šcomparable€rates€for€IOLTA€accounts.€€This€is€one€of€the€reasonsŠ pĄ  Šwhy€Chief€Judge€Bell€asked€that€this€issue€be€put€on€a€fastŠ !l" Štrack.€€To€further€delay€this€would€prevent€20,000€needy€citizensŠ Č"$ Šfrom€receiving€the€legal€services€they€need.€€Whatever€theŠ t$Ä& ŠCommittee€can€do€to€put€this€matter€on€a€fast€track€would€beŠ  &p!( Šappreciated.€Š Ģ'#* Šą  ąMr.€Enten€told€the€Committee€that€he€is€an€attorney€with€theŠ x)Č$, Šlaw€firm€of€Gordon,€Feinblatt€in€Baltimore.€€He€said€that€he€wasŠ $+t&. Šspeaking€today€on€behalf€of€the€Maryland€Bankersšš€Association.€Š Š, (0 ŠHe€has€represented€the€Association€for€23€years€and€has€appearedŠ |.Ģ)2 Šin€front€of€several€subcommittees€of€the€Rules€Committee,€theŠ ° ŠCommittee€itself,€and€the€Court€of€Appeals€on€rules€changes€thatŠ \¬ Šaffect€the€banking€industry.€€The€issue€today€is€a€very,€veryŠ X Šimportant€one€to€the€banking€industry.€€He€said€that€he€did€notŠ “  Šknow€what€the€bankersšš€associations€did€in€other€states.€€SomeŠ ` ° Šstates€do€not€notify€interested€parties,€unlike€the€procedure€ofŠ  \  Šthe€Rules€Committee,€which€goes€to€great€lengths€to€notifyŠ ø  Šinterested€persons.€€Without€the€notice€from€the€Reporter€orŠ d“  ŠCathy€Cox,€Administrative€Assistant,€it€would€be€difficult€toŠ `  Šknow€that€a€certain€issue€is€being€discussed.€€Š ¼  Šą  ąMr.€Enten€said€that€for€the€first€time€in€the€23€years€thatŠ hø Šhe€has€represented€the€Bankersšš€Association,€an€important€issueŠ d Šbypassed€subcommittee€consideration.€€He€received€notice€on€May€1Š Ą Šthat€the€issue€was€going€to€be€discussed€at€the€May€11,€2007Š l¼ ŠRules€Committee€meeting.€€The€matter€was€then€postponed€until€theŠ h Šmeeting€today.€€He€and€the€Maryland€Bankersšš€Association€hadŠ Ä Šspent€the€last€six€weeks€gathering€information€and€trying€to€talkŠ pĄ  Što€bankers€in€other€states€and€learn€what€their€position€is€andŠ !l" Šhow€the€Rule€differs.€€He€has€a€chart€that€took€a€long€time€toŠ Č"$ Šprepare€comparing€the€details€of€each€state€and€how€they€handleŠ t$Ä& Šthe€comparability€issue.€€Each€state€is€different€in€itsŠ  &p!( Šapproach.€€He€expressed€the€view€that€the€Attorneys€SubcommitteeŠ Ģ'#* Šshould€have€the€opportunity€to€bring€the€parties€to€the€tabl