(1) The state bar shall be governed by the board of governors, except as provided in ORS § 9.136 to 9.155. The state bar has the authority to adopt, alter, amend and repeal bylaws and to adopt new bylaws containing provisions for the regulation and management of the affairs of the state bar not inconsistent with law. The board is charged with the executive functions of the state bar and shall at all times direct its power to serve the public interest by:

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(a) Regulating the legal profession and improving the quality of legal services;

(b) Supporting the judiciary and improving the administration of justice; and

(c) Advancing a fair, inclusive and accessible justice system.

(2)(a)(A) The board has the authority to require all active members of the state bar engaged in the private practice of law whose principal offices are in Oregon to carry professional liability insurance and is empowered, either by itself or in conjunction with other bar organizations, to do whatever is necessary and convenient to implement this provision, including the authority to own, organize and sponsor any insurance organization authorized under the laws of the State of Oregon and to establish a professional liability fund. This fund shall pay, on behalf of active members of the state bar engaged in the private practice of law whose principal offices are in Oregon, all sums as may be provided under such plan which any such member shall become legally obligated to pay as money damages because of any claim made against such member as a result of any act or omission of such member in rendering or failing to render professional services for others in the member’s capacity as a member practicing law or caused by any other person for whose acts or omissions the member is legally responsible.

(B) The board has the authority to assess each active member of the state bar engaged in the private practice of law whose principal office is in Oregon for contributions to the professional liability fund and to establish the date by which contributions must be made.

(C) The board has the authority to establish definitions of coverage to be provided by the professional liability fund and to retain or employ legal counsel to represent the fund and defend and control the defense against any covered claim made against the member.

(D) The board has the authority to offer optional professional liability coverage on an underwritten basis above the minimum required coverage limits provided under the professional liability fund, either through the fund, through a separate fund or through any insurance organization authorized under the laws of the State of Oregon, and may do whatever is necessary and convenient to implement this provision. Any fund so established shall not be subject to the Insurance Code of the State of Oregon.

(E) Records of a claim against the professional liability fund are exempt from disclosure under ORS § 192.311 to 192.478.

(F) The board shall establish a reasonable standard for claims submitted by associate members to the professional liability fund. Each year, if the claims submitted by associate members exceed the standard established under this subparagraph, the board shall authorize substantially equivalent coverage for all members for the following calendar year.

(b) For purposes of paragraph (a) of this subsection, a member is not engaged in the private practice of law if the member is a full-time employee of a corporation other than a corporation incorporated under ORS Chapter 58, the state, an agency or department thereof, a county, city, special district or any other public or municipal corporation or any instrumentality thereof. However, a member who practices law outside of the member’s full-time employment is engaged in the private practice of law.

(c) For the purposes of paragraph (a) of this subsection, the principal office of a member is considered to be the location where the member engages in the private practice of law more than 50 percent of the time engaged in that practice. In the case of a member practicing law in a branch office outside Oregon and the main office to which the branch office is connected is in Oregon, the principal office of the member is not considered to be in Oregon unless the member engages in the private practice of law in Oregon more than 50 percent of the time engaged in the private practice of law.

(3) The board may appoint such committees, officers and employees as it deems necessary or proper and fix and pay their compensation and necessary expenses. At any meeting of the board, two-thirds of the total number of members then in office shall constitute a quorum. It shall promote and encourage voluntary county or other local bar associations.

(4) Except as provided in this subsection, an employee of the state bar shall not be considered an ’employee’ as the term is defined in the public employees’ retirement laws. However, an employee of the state bar may, at the option of the employee, for the purpose of becoming a member of the Public Employees Retirement System, be considered an ’employee’ as the term is defined in the public employees’ retirement laws. The option, once exercised by written notification directed to the Public Employees Retirement Board, may not be revoked subsequently, except as may otherwise be provided by law. Upon receipt of such notification by the Public Employees Retirement Board, an employee of the state bar who would otherwise, but for the exemption provided in this subsection, be considered an ’employee,’ as the term is defined in the public employees’ retirement laws, shall be so considered. The state bar and its employees shall be exempt from the provisions of the State Personnel Relations Law. No member of the state bar shall be considered an ’employee’ as the term is defined in the public employees’ retirement laws, the unemployment compensation laws and the State Personnel Relations Law solely by reason of membership in the state bar. [Amended by 1955 c.463 § 2; 1975 c.641 § 3; 1977 c.527 § 1; 1979 c.508 § 1; 1983 c.128 § 2; 1985 c.486 § 1; 1989 c.1052 § 5; 1995 c.302 § 17; 2015 c.122 § 4; 2019 c.248 § 4; 2023 c.72 § 3]

Sections 50 and 51, chapter 72, Oregon Laws 2023, provide:

For each year through 2026, the board of governors of the Oregon State Bar shall submit an annual report in the manner provided in ORS § 192.245 to the committees or interim committees of the Legislative Assembly related to the judiciary on the aggregate covered claims submitted to the professional liability fund by members, as defined in ORS § 9.005. [2023 c.72 § 50]

Section 50 of this 2023 Act is repealed on January 2, 2028. [2023 c.72 § 51]