HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 Section 1 (1) of the Legal Profession Act, S.B.C. 1998, c. 9, is amended

(a) in the definition of "conduct unbecoming a lawyer" by striking out "of the benchers or a panel," and substituting "of the benchers, a panel or a review board,",

(b) by repealing the definition of "conduct unbecoming a lawyer" and substituting the following:

"conduct unbecoming the profession" includes a matter, conduct or thing that is considered, in the judgment of the benchers, a panel or a review board,

(a) to be contrary to the best interest of the public or of the legal profession, or

(b) to harm the standing of the legal profession; ,

(c) by adding the following definition:

"law firm" means a legal entity or combination of legal entities carrying on the practice of law; ,

(d) by repealing paragraph (h) of the definition of "practice of law" and substituting the following:

(h) any of those acts if performed by a person who is not a lawyer and not for or in the expectation of a fee, gain or reward, direct or indirect, from the person for whom the acts are performed, , and

(e) by adding the following definition:

"review board" means a review board appointed in accordance with section 47; .

2 Section 3 is repealed and the following substituted:

Object and duty of society

3  It is the object and duty of the society to uphold and protect the public interest in the administration of justice by

(a) preserving and protecting the rights and freedoms of all persons,

(b) ensuring the independence, integrity, honour and competence of lawyers,

(c) establishing standards and programs for the education, professional responsibility and competence of lawyers and of applicants for call and admission,

(d) regulating the practice of law, and

(e) supporting and assisting lawyers, articled students and lawyers of other jurisdictions who are permitted to practise law in British Columbia in fulfilling their duties in the practice of law.

3 Section 6 (1) is amended by striking out ", including rules providing for the practice and procedure of proceedings before the benchers".

4 Section 9 (2) is repealed and the following substituted:

(2) The benchers may authorize a committee to do any act or to exercise any jurisdiction that, by this Act, the benchers are authorized to do or to exercise, except the exercise of rule-making authority.

5 Section 11 is amended

(a) in subsection (1) by striking out "for the governing of the society, lawyers, articled students and applicants," and substituting "for the governing of the society, lawyers, law firms, articled students and applicants,", and

(b) in subsection (3) by striking out "the society, lawyers," and substituting "the society, lawyers, law firms,".

6 Section 12 is amended

(a) by repealing subsection (1) (j), and

(b) in subsection (3) by adding "at a general meeting or" after "those members voting".

7 Section 13 (2) is amended

(a) in paragraph (a) by striking out "within 6 months" and substituting "within 12 months", and

(b) in paragraph (b) by striking out "at least 100 members" and substituting "at least 5% of members".

8 Section 15 is amended

(a) in subsection (1) by striking out "and" at the end of paragraph (e), by adding ", and" at the end of paragraph (f) and by adding the following paragraph:

(g) a lawyer who is not a practising lawyer, to the extent permitted under the rules. , and

(b) in subsection (5) by striking out ", in the person's own name or in the name of another person".

9 Section 17 (1) (a) is amended by adding "in British Columbia" after "to practise law".

10 Section 18 is repealed and the following substituted:

Association with non-resident lawyers or law firms

18  The benchers may make rules concerning the association of members of the society or law firms in British Columbia with lawyers or law firms in other jurisdictions.

11 Section 21 (3) is amended by striking out "impose conditions on the practice of a lawyer" and substituting "impose conditions or limitations on the practice of a lawyer".

12 The following section is added:

Prohibition on resignation from membership

21.1  (1) A lawyer may not resign from membership in the society without the consent of the benchers if the lawyer is the subject of

(a) a citation or other discipline process under Part 4,

(b) an investigation under this Act, or

(c) a practice review under the rules.

(2) In granting consent under subsection (1), the benchers may impose conditions.

13 Section 23 (1) (a) and (b) is repealed and the following substituted:

(a) a practice fee in an amount set by the benchers, and .

14 Section 24 is amended

(a) in subsection (1) (a) by striking out "other than the practice fee referred to in section 23 (1) (a),",

(b) in subsection (1) by adding "and" at the end of paragraph (a) and by striking out "and" at the end of paragraph (b), and

(c) by repealing subsections (1) (c) and (2).

15 Section 26 is amended

(a) by repealing subsection (1) and substituting the following:

(1) A person who believes that

(a) a lawyer, former lawyer or articled student has practised law incompetently or been guilty of professional misconduct, conduct unbecoming the profession or a breach of this Act or the rules, or

(b) a law firm has been guilty of professional misconduct, conduct unbecoming the profession or a breach of this Act or the rules

may make a complaint to the society. ,

(b) in subsection (2) by striking out "an investigation into the conduct or competence of a lawyer," and substituting "an investigation into the conduct of a law firm or the conduct or competence of a lawyer,", and

(c) by adding the following subsections:

(3) For the purposes of subsection (4), the benchers may designate an employee of the society or appoint a practising lawyer or a person whose qualifications are satisfactory to the benchers.

(4) For the purposes of an investigation authorized by rules made under subsection (2), an employee designated or a person appointed under subsection (3) may make an order requiring a person to do either or both of the following:

(a) attend, in person or by electronic means, before the designated employee or appointed person to answer questions on oath or affirmation, or in any other manner;

(b) produce for the designated employee or appointed person a record or thing in the person's possession or control.

(5) The society may apply to the Supreme Court for an order

(a) directing a person to comply with an order made under subsection (4), or

(b) directing an officer or governing member of a person to cause the person to comply with an order made under subsection (4).

(6) The failure or refusal of a person subject to an order under subsection (4) to

(a) attend before the designated employee or appointed person,

(b) take an oath or make an affirmation,

(c) answer questions, or

(d) produce records or things in the person's possession or control

makes the person, on application to the Supreme Court by the society, liable to be committed for contempt as if in breach of an order or judgment of the Supreme Court.

16 The following sections are added:

Suspension during investigation

26.01 (1) The benchers may make rules permitting 3 or more benchers to make the following orders during an investigation, if those benchers are satisfied it is necessary to protect the public:

(a) suspend a lawyer who is the subject of the investigation;

(b) impose conditions or limitations on the practice of a lawyer who is the subject of the investigation;

(c) suspend the enrollment of an articled student who is the subject of the investigation;

(d) impose conditions or limitations on the enrollment of an articled student who is the subject of the investigation.

(2) Rules made under subsection (1) must

(a) provide for a proceeding to take place before an order is made,

(b) set out the term of a suspension, condition or limitation, and

(c) provide for review of an order made under subsection (1) and for confirmation, variation or rescission of the order.

(3) Rules made under this section and section 26.02 may provide for practice and procedure for a matter referred to in subsection (2) (a) and (c) or section 26.02 (3) and may specify that some or all practices and procedures in those proceedings may be determined by the benchers who are present at the proceeding.

Medical examination

26.02  (1) The benchers may make rules permitting 3 or more benchers to make an order requiring a lawyer or an articled student to

(a) submit to an examination by a medical practitioner specified by the benchers, and

(b) instruct the medical practitioner to report to the benchers on the ability of the lawyer to practise law or, in the case of an articled student, the ability of the student to complete his or her articles.

(2) Before making an order under subsection (1), the benchers making the order must be of the opinion that the order is likely necessary to protect the public.

(3) Rules made under subsection (1) must

(a) provide for a proceeding to take place before an order is made, and

(b) provide for review of an order under subsection (1) and for confirmation, variation or rescission of the order.

17 Section 27 is amended

(a) in subsection (2) (e) by striking out "a lawyer" and substituting "a lawyer, a former lawyer, an articled student or a law firm",

(b) in subsection (3) by striking out "lawyer" and substituting "person", and

(c) by adding the following subsections:

(3.1) For the purpose of recovering a debt under subsection (3), the executive director may

(a) issue a certificate stating that the amount of costs is due, the amount remaining unpaid, including interest, and the name of the person required to pay it, and

(b) file the certificate with the Supreme Court.

(3.2) A certificate filed under subsection (3.1) with the Supreme Court is of the same effect, and proceedings may be taken on it, as if it were a judgment of the Supreme Court for the recovery of a debt in the amount stated against the person named in it.

18 Section 29 (a) is amended by striking out "lawyers" and substituting "lawyers or law firms".

19 Section 30 is amended

(a) by repealing subsection (1) and substituting the following:

(1) In this section, "trust protection insurance" means insurance for lawyers to compensate persons who suffer pecuniary loss as a result of dishonest appropriation of money or other property entrusted to and received by a lawyer in his or her capacity as a barrister and solicitor.

(1.1) The benchers must make rules requiring lawyers to maintain professional liability and trust protection insurance. ,

(b) by adding the following subsection:

(2.1) The benchers

(a) must establish, administer, maintain and operate a trust protection insurance program and may use for that purpose fees set under this section,

(b) may establish conditions and qualifications for a claim against a lawyer under the trust protection insurance program, including time limitations for making a claim, and

(c) may place limitations on the amounts that may be paid out of the insurance fund established under subsection (6) in respect of a claim against a lawyer under the trust protection insurance program. ,

(c) by repealing subsection (4) (b) and (c) and substituting the following:

(b) establish classes of membership for insurance purposes and exempt a class of lawyers from the requirement to maintain professional liability or trust protection insurance or from payment of all or part of the insurance fee;

(c) designate classes of transactions for which a lawyer must pay a fee to fund the professional liability or trust protection insurance program. ,

(d) in subsection (5) by striking out "professional liability insurance" and substituting "professional liability or trust protection insurance",

(e) in subsection (6) by striking out "comprised of the insurance fees and other income of the professional liability insurance program" and substituting "comprising fees set under this section and other income of the professional liability and trust protection insurance programs",

(f) in subsection (6) by striking out "and" at the end of paragraph (a), by adding ", and" at the end of paragraph (b) and by adding the following paragraph:

(c) is not subject to a trust in favour of a person who has sustained a loss. ,

(g) by repealing subsection (8) and substituting the following:

(8) A lawyer must immediately surrender to the executive director his or her practising certificate and any proof of professional liability or trust protection insurance issued by the society, if

(a) the society has, on behalf of the lawyer,

(i) paid a deductible amount under the professional liability insurance program in respect of a claim or potential claim under that program, or

(ii) made an indemnity payment under the trust protection insurance program in respect of a claim under that program, and

(b) the lawyer has not reimbursed the society at the date that the insurance fee or an installment of that fee is due. ,

(h) in subsection (9) (b) by striking out "a deductible amount paid" and substituting "a deductible amount paid under the professional liability insurance program or an indemnity payment made under the trust protection insurance program", and

(i) by adding the following subsection:

(11) A payment made from the insurance fund established under subsection (6) in respect of a claim against a lawyer under the trust protection insurance program

(a) may be recovered from the lawyer or former lawyer on whose account it was paid, or from the estate of that person, as a debt owing to the society, and

(b) if collected, is the property of the society and must be accounted for as part of the fund.

20 Section 31 is repealed.

21 Section 32 is amended

(a) in subsection (1) by striking out "the integrity and financial viability of a lawyer's professional practice." and substituting "the integrity and financial viability of the professional practice of a lawyer or law firm.",

(b) by repealing subsection (2) (a) and substituting the following:

(a) provide for the examination of the books, records and accounts of lawyers and law firms and the answering of questions by lawyers and representatives of law firms to determine whether standards established under this section are being met; ,

(c) in subsection (2) (c) by striking out "on the practice of a lawyer who does not meet" and substituting "on a law firm that, or the practice of a lawyer who, does not meet", and

(d) by repealing subsection (3) and substituting the following:

(3) Rules made under subsection (2) (b) and (c) must not permit the suspension of a lawyer or imposition of conditions and limitations on the practice of a lawyer or the imposition of conditions and limitations on a law firm before the lawyer or law firm, as the case may be, has been notified of the reasons for the proposed action and given a reasonable opportunity to make representations respecting those reasons.

22 Section 33 is amended

(a) in subsection (1) by striking out "lawyer" and substituting "lawyer or law firm",

(b) in subsection (1) (a) to (c) by striking out "lawyer's" and substituting "lawyer's or law firm's",

(c) by repealing subsection (2) (a) and substituting the following:

(a) exempt classes of lawyers or law firms from some or all of the requirements of subsection (1), and ,

(d) in subsection (3) (a) and (b) by striking out "lawyers" and substituting "lawyers or law firms",

(e) by repealing subsection (3) (c) and substituting the following:

(c) provide for precautions to be taken by lawyers and law firms for the care of funds or property held in trust by them. , and

(f) by adding the following subsection:

(5) The rules made under subsection (3) may be different for

(a) lawyers and law firms, or

(b) different classes of lawyers or law firms.

23 Section 34 is amended

(a) in subsection (1) by striking out "A lawyer who" and substituting "A lawyer who or a law firm that",

(b) in subsections (1) and (2) by striking out "the lawyer" and substituting "the lawyer or law firm", and

(c) in subsection (5) by striking out "a lawyer" and substituting "a lawyer or law firm".

24 Section 36 is amended

(a) by repealing paragraph (b) and substituting the following:

(b) authorize an investigation of the books, records and accounts of a lawyer or law firm if there is reason to believe that the lawyer or law firm may have committed any misconduct, conduct unbecoming the profession or a breach of this Act or the rules; ,

(b) in paragraphs (c) and (d) by striking out "lawyer" and substituting "lawyer or law firm",

(c) by adding the following paragraph:

(e.1) require a representative of a law firm to appear before the benchers, a committee or other body to discuss the conduct of the law firm; ,

(d) by repealing paragraph (f) and substituting the following:

(f) authorize the ordering of a hearing into the conduct or competence of a lawyer or an articled student, or the conduct of a law firm, by issuing a citation; ,

(e) in paragraph (h) by striking out "that may only be prosecuted on indictment." and substituting "that was proceeded with by way of indictment or convicted in another jurisdiction of an offence that, in the opinion of the benchers, is equivalent to an offence that may be proceeded with by way of indictment;", and

(f) by adding the following paragraph:

(i) establish a process for the protection of the privacy and the severing, destruction or return of personal, business or other records that are unrelated to an investigation or examination and that, in error or incidentally, form part of

(i) the books, records or accounts of a lawyer, an articled student or a law firm authorized to be investigated or examined under a rule made under paragraph (b) or section 26, or

(ii) files or other records that are seized in accordance with an order of the Supreme Court under section 37.

25 Section 37 (1) is repealed and the following substituted:

(1) The society may apply to the Supreme Court for an order that the files or other records, wherever located, of or relating to a lawyer, an articled student or a law firm be seized from the person named in the order, if there are reasonable grounds to believe that the lawyer, the articled student or the law firm may have committed or will commit

(a) any misconduct,

(b) conduct unbecoming the profession, or

(c) a breach of this Act or the rules.

26 The following section is added:

Personal records in investigation or seizure

37.1 In conducting an investigation or examination of books, records or accounts under section 26 or rules made under section 36 (b) or in the seizure of files or other records in accordance with an order of the Supreme Court under section 37, the society may collect personal information unrelated to the investigation or examination that, in error or incidentally, is contained in those books, accounts, files or records, but the society must, subject to rules made under section 36 (i),

(a) return that personal information if and as soon as practicable, or

(b) destroy that personal information.

27 Section 38 is amended

(a) by repealing subsection (4) (b) (ii) and substituting the following:

(ii) conduct unbecoming the profession; ,

(b) by repealing subsection (4) (b) (v) and substituting the following:

(v) if the respondent is an individual who is not a member of the society, conduct that would, if the respondent were a member, constitute professional misconduct, conduct unbecoming the profession or a breach of this Act or the rules. ,

(c) by repealing subsection (4) (c),

(d) in subsection (5) by striking out "is made against a respondent, other than an articled student, under subsection (4)," and substituting "is made under subsection (4) against a respondent other than an articled student or a law firm,",

(e) in subsection (5) (b) by striking out "$20 000" and substituting "$50 000",

(f) by repealing subsection 5 (c) and (d) and substituting the following:

(c) impose conditions or limitations on the respondent's practice;

(d) suspend the respondent from the practice of law or from practice in one or more fields of law

(i) for a specified period of time,

(ii) until the respondent fulfills a condition imposed under paragraph (c) or subsection (7) or complies with a requirement under paragraph (f) of this subsection,

(iii) from a specified date until the respondent fulfills a condition imposed under paragraph (c) or subsection (7) or complies with a requirement under paragraph (f) of this subsection, or

(iv) for a specified minimum period of time and until the respondent fulfills a condition imposed under paragraph (c) or subsection (7) or complies with a requirement under paragraph (f) of this subsection; ,

(g) in subsection (6) by striking out "against an articled student under subsection (4)," and substituting "under subsection (4) against an articled student,",

(h) in subsection (6) (b) by striking out "$2 000" and substituting "$5 000",

(i) by adding the following subsection:

(6.1) If an adverse determination is made under subsection (4) against a law firm, the panel may do one or both of the following:

(a) reprimand the law firm;

(b) fine the law firm an amount not exceeding $50 000. ,

(j) by repealing subsection (7) and substituting the following:

(7) In addition to its powers under subsections (5), (6) and (6.1), a panel may make any other orders and declarations and impose any conditions or limitations it considers appropriate. , and

(k) by adding the following subsections:

(9) For the purpose of recovering a debt under subsection (8), the executive director may

(a) issue a certificate stating that the fine is due, the amount remaining unpaid, including interest, and the name of the person required to pay it, and

(b) file the certificate with the Supreme Court.

(10) A certificate filed under subsection (9) with the Supreme Court is of the same effect, and proceedings may be taken on it, as if it were a judgment of the Supreme Court for the recovery of a debt in the amount stated against the person named in it.

28 Section 39 is amended

(a) in subsection (1) by striking out "the chair of the discipline committee or any 3 other benchers" and substituting "3 or more benchers",

(b) in subsection (1) (a) by striking out "a respondent" and substituting "a respondent who is an individual",

(c) by repealing subsection (1) (b) and substituting the following:

(b) impose conditions or limitations on the practice of a respondent who is an individual; ,

(d) in subsection (1) by adding the following paragraph:

(d) impose conditions or limitations on the enrollment of a respondent who is an articled student. , and

(e) by repealing subsection (2) and substituting the following:

(2) Rules made under subsection (1) must

(a) provide for a proceeding to take place before an order is made,

(b) set out the term of a suspension, condition or limitation, and

(c) provide for review of an order made under subsection (1) and for confirmation, variation or rescission of the order.

(3) Rules made under this section may provide for practice and procedure for a matter referred to in subsection (2) (a) and (c) and may specify that some or all practices and procedures in those proceedings may be determined by the benchers who are present at the proceeding.

29 Section 40 is repealed.

30 Section 41 (2) is amended by striking out "or a shareholder, director, officer or employee of a respondent law corporation," and substituting "or a representative of a respondent law firm,".

31 Section 42 is amended

(a) in subsection (1) by striking out "an applicant or respondent" and substituting "an applicant, a respondent or the representative of a respondent law firm",

(b) by repealing subsection (1) (c) and substituting the following:

(c) a review on the record by a review board under section 47. ,

(c) in subsection (2) by striking out "the benchers" in both places and substituting "the review board", and

(d) by repealing subsection (2) and substituting the following:

(2) If satisfied that the applicant, respondent or representative of the respondent law firm has been served with notice of the hearing or review, the panel or the review board may proceed with the hearing or review in the absence of the applicant, respondent or law firm representative and make any order that the panel or the review board could have made in the presence of the applicant, respondent or law firm representative.

32 Section 43 (1) is repealed and the following substituted:

(1) An applicant, a respondent or a person who is the subject of a proceeding may appear at any hearing with counsel.

33 Section 44 is repealed and the following substituted:

Witnesses

44  (1) In this section:

"party" means an applicant, a respondent or the society;

"tribunal" means the benchers, a review board or a panel, or a member of the benchers, a review board or a panel, as the context requires.

(2) For the purposes of a proceeding under Part 2, 3, 4 or 5 of this Act, a party may prepare and serve a summons, in a form established in the rules, requiring a person to attend an oral or electronic hearing to give evidence, on oath or affirmation or in any other manner, that is admissible and relevant to an issue in the proceeding.

(3) A party may apply to the Supreme Court for an order directing

(a) a person to comply with a summons served by a party under subsection (2),

(b) any directors and officers of a person to cause the person to comply with a summons served by a party under subsection (2), or

(c) the custodian of a penal institution or another person who has custody of a person who is the subject of the summons to ensure the person in custody attends the hearing.

(4) For the purposes of a proceeding under Part 2, 3, 4 or 5 of this Act, a tribunal may make an order requiring a person

(a) to attend an oral or electronic hearing to give evidence, on oath or affirmation or in any other manner, that is admissible and relevant to an issue in the proceeding, or

(b) to produce for the tribunal or a party a document or other thing in the person's possession or control, as specified by the tribunal, that is admissible and relevant to an issue in the proceeding.

(5) A tribunal may apply to the Supreme Court for an order directing

(a) a person to comply with an order made by the tribunal under subsection (4),

(b) any directors and officers of a person to cause the person to comply with an order made by the tribunal under subsection (4), or

(c) the custodian of a penal institution or another person who has custody of a person who is the subject of an order made by the tribunal under subsection (4) to ensure the person in custody attends the hearing.

(6) On an application under subsection (3) or (5), the Supreme Court may make the order requested or another order it considers appropriate.

Application of Administrative Tribunals Act

44.1  (1) For the purposes of a proceeding under Part 2, 3, 4 or 5 of this Act, sections 48, 49 and 56 of the Administrative Tribunals Act apply, subject to the following:

(a) "decision maker" in section 56 means a member of the benchers, of a review board or of a panel;

(b) "tribunal" in those sections has the same meaning as in section 44 (1).

(2) A tribunal may apply to the Supreme Court for an order directing a person to comply with an order referred to in section 48 of the Administrative Tribunals Act, and the court may make the order requested or another order it considers appropriate.

34 Section 45 is repealed.

35 Section 46 is amended

(a) in subsection (1) by striking out "a panel, the benchers or a committee" and substituting "a panel, a review board or a committee", and

(b) by adding the following subsections:

(4) For the purpose of recovering a debt under subsection (3), the executive director may

(a) issue a certificate stating that the amount of costs is due, the amount remaining unpaid, including interest, and the name of the person required to pay it, and

(b) file the certificate with the Supreme Court.

(5) A certificate filed under subsection (4) with the Supreme Court is of the same effect, and proceedings may be taken on it, as if it were a judgment of the Supreme Court for the recovery of a debt in the amount stated against the person named in it.

36 Section 47 is amended

(a) in subsections (1) to (3) by striking out "to the benchers for a review on the record." and substituting "for a review on the record by a review board.",

(b) by repealing subsections (1) and (3) and substituting the following:

(1) Within 30 days after being notified of the decision of a panel under section 22 (3) or 38 (5), (6), (6.1) or (7), the applicant or respondent may apply in writing for a review on the record by a review board.

(3) Within 30 days after the decision of a panel under section 38 (4), (5), (6), (6.1) or (7), the discipline committee may refer the matter for a review on the record by a review board. ,

(c) by adding the following subsections:

(3.1) Within 30 days after an order for costs assessed under a rule made under section 27 (2) (e) or 46, an applicant, a respondent or a lawyer who is the subject of the order may apply in writing for a review on the record by a review board.

(3.2) Within 30 days after an order for costs assessed by a panel under a rule made under section 46, the credentials or discipline committee may refer the matter for a review on the record by a review board. ,

(d) by repealing subsection (4) and substituting the following:

(4) If, in the opinion of a review board, there are special circumstances, the review board may hear evidence that is not part of the record. ,

(e) by repealing subsection (4.1),

(f) in subsection (5) by striking out "the benchers" and substituting "the review board", and

(g) by repealing subsection (6) and substituting the following:

(6) The benchers may make rules providing for one or more of the following:

(a) the appointment and composition of review boards;

(b) establishing procedures for an application for a review under this section;

(c) the practice and procedure for proceedings before review boards.

37 Section 48 is repealed and the following substituted:

Appeal

48  (1) Subject to subsection (2), any of the following persons who are affected by a decision, determination or order of a panel or of a review board may appeal the decision, determination or order to the Court of Appeal:

(a) an applicant;

(b) a respondent;

(c) a lawyer who is suspended or disbarred under this Act;

(d) the society.

(2) An appeal by the society under subsection (1) is limited to an appeal on a question of law.

38 Section 61 is amended

(a) in subsection (3) by striking out "The foundation may employ lawyers" and substituting "The foundation may employ or retain lawyers", and

(b) in subsection (4) (a) by striking out "by or on behalf of lawyers" and substituting "by or on behalf of lawyers and law firms".

39 Section 62 is amended

(a) in subsections (1), (2), (3) (a), (4) and (5) by striking out "lawyer" wherever it appears and substituting "lawyer or law firm", and

(b) in subsection (5) by striking out "his or her client" and substituting "a client".

40 Section 63 is amended

(a) in the definition of "pooled trust funds" in subsection (1) by striking out "by a lawyer in trust" and substituting "by a lawyer or law firm in trust",

(b) in subsections (2), (2) (b) and (c) and (12) by striking out "lawyer" and substituting "lawyer or law firm",

(c) in subsection (3) by striking out "lawyers" and substituting "lawyers or law firms",

(d) in subsections (4) (b) and (7) (a) by striking out "lawyers'" and substituting "lawyers' and law firms'",

(e) in subsection (8) by striking out "lawyer's" and substituting "lawyer's or law firm's", and

(f) by repealing subsection (13) and substituting the following:

(13) Despite any agreement between a lawyer or law firm and a savings institution, if the pooled trust fund account of the lawyer or law firm is overdrawn by an amount exceeding $1 000, the savings institution must, as soon as practicable, inform the society of the particulars.

41 Section 64 (1) is amended

(a) in the definitions of "agreement" and "contingent fee agreement" by striking out "lawyer" and substituting "lawyer or law firm", and

(b) by repealing the definition of "law firm".

42 Section 66 (2) (a) is amended by striking out "lawyers" and substituting "lawyers or law firms".

43 Section 68 (2) is amended by striking out "with a lawyer" and substituting "with a lawyer or law firm".

44 Section 83 is amended

(a) in subsection (1) (c) by striking out "to attach conditions to permits" and substituting "to attach conditions or limitations to permits", and

(b) in subsection (2) by striking out "a rule made under section 30 (1)" and substituting "a rule made under section 30 (1.1)".

45 Section 87 is amended

(a) in the definition of "proceeding" in subsection (1) by striking out "Part 2, 3 or 4;" and substituting "Part 2, 3, 4 or 5;",

(b) in the definition of "report" in subsection (1) by striking out "by a person, committee, panel or agent of the society" and substituting "by a person, committee, panel, review board or agent of the society",

(c) in subsection (2) by striking out "lawyer" and substituting "lawyer or law firm", and

(d) by repealing subsections (3) to (5) and substituting the following:

(3) If a lawyer or law firm responds to the society in respect of a complaint or investigation, none of the lawyer, the law firm or the society can be required to disclose or produce the response or a copy or summary of it, and the response or a copy or summary of it is not admissible in any proceeding, except with the written consent of the lawyer or law firm, even though the executive director may have delivered a copy or summary of the response to the complainant.

(4) A report made under the authority of this Act or a record concerning an investigation, an audit, an inquiry, a hearing or a review must not be required to be produced and is not admissible in any proceeding except with the written consent of the executive director.

(5) Except with the written consent of the executive director, the society, an employee or agent or former employee or agent of the society, or a member or former member of a committee, panel or review board established under this Act

(a) must not be compelled to disclose information that the person has acquired during the course of an investigation, an audit, an inquiry, a hearing or a review or in the exercise of other powers or the performance of other duties under this Act, and

(b) is not competent to testify in a proceeding if testifying in that proceeding would result in the disclosure of information referred to in paragraph (a).

46 Section 88 is amended

(a) by repealing subsection (1),

(b) by adding the following subsections:

(1.1) A person who is required under this Act or the rules to provide information, files or records that are confidential or subject to a solicitor client privilege must do so, despite the confidentiality or privilege.

(1.2) Information, files or records that are provided in accordance with subsection (1.3) are admissible in a proceeding under Part 2, 3, 4 or 5 of this Act, despite the confidentiality or privilege.

(1.3) A lawyer who or a law firm that, in accordance with this Act and the rules, provides the society with any information, files or records that are confidential or subject to a solicitor client privilege is deemed conclusively not to have breached any duty or obligation that would otherwise have been owed to the society or the client not to disclose the information, files or records. , and

(c) in subsection (2) by striking out "in the course of carrying out duties under this Act," and substituting "in the course of exercising powers or carrying out duties under this Act,".

47 Section 89 is repealed.

48 Section 92 (1) and (2) (b) and (c) is amended by striking out "lawyer" wherever it appears and substituting "lawyer or law firm".

49 Section 93 is repealed.

Transitional Provisions

Transition — special compensation fund

50  On repeal of section 31 of the Legal Profession Act by this Act, the benchers

(a) must promptly deposit any monies remaining in the "fund", as it was defined in section 31 (1) of the Legal Profession Act before its repeal by this Act, to the account of the insurance fund established under section 30 (6) of the Legal Profession Act, and

(b) may use the monies for the purposes of the insurance programs referred to in sections 30 (2) of the Legal Profession Act and 30 (2.1) of the Legal Profession Act as enacted by this Act.

Transition — power to make rules

51  (1) The benchers may make rules for the purpose of more effectively bringing into operation the amendments made to the Legal Profession Act by this Act and to obviate any transitional difficulties encountered in so doing.

(2) Unless earlier rescinded, a rule under subsection (1) is rescinded two years after it is made.

(3) A rule under subsection (1) may be made retroactive to a date on or after the date this section comes into force, and if made retroactive is deemed to have been made on the specified date.

(4) This section is repealed 2 years after it comes into force.

Commencement

52  The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table:

 
Explanatory Notes

SECTION 1: [Legal Profession Act, section 1] amends definitions and adds definitions of "law firm" and "review board".

SECTION 2: [Legal Profession Act, section 3] amends the objects and duty of the society.

SECTION 3: [Legal Profession Act, section 6] is consequential to the establishment of review boards to take the place of the benchers in proceedings.

SECTION 4: [Legal Profession Act, section 9] is consequential to the establishment of review boards.

SECTION 5: [Legal Profession Act, section 11] adds the ability of the benchers to make rules that govern law firms.

SECTION 6: [Legal Profession Act, section 12] repeals the obligation of the benchers to make rules about the practising fee and allows an affirmative 2/3 vote at a general meeting to approve the making, amendment or rescission of rules respecting specified matters.

SECTION 7: [Legal Profession Act, section 13] changes the thresholds that trigger the requirement for a referendum of members of the Law Society to be conducted on a resolution that has been approved at a general meeting but not implemented.

SECTION 8: [Legal Profession Act, section 15] allows a non-practising lawyer to practise law to the extent permitted by rules of the benchers and clarifies the provision by removing an unnecessary phrase.

SECTION 9: [Legal Profession Act, section 17] makes a housekeeping amendment.

SECTION 10: [Legal Profession Act, section 18] modernizes the ability of the benchers to make rules concerning the association of lawyers in British Columbia with lawyers in other jurisdictions.

SECTION 11: [Legal Profession Act, section 21] makes the language in this provision consistent with other amendments made to the Act by this Bill.

SECTION 12: [Legal Profession Act, section 21.1] prohibits a lawyer from resigning from the Law Society if the lawyer is the subject of disciplinary proceedings unless the lawyer has the consent of the society to do so.

SECTION 13: [Legal Profession Act, section 23] eliminates the requirement that the practice fee must be approved by the members of the law society.

SECTION 14: [Legal Profession Act, section 24] is consequential to the changes regarding the practice fee and eliminates collection of Canadian Bar Association fees by the Law Society.

SECTION 15: [Legal Profession Act, section 26] adds the ability of a person to make a complaint about a law firm and adds investigatory powers.

SECTION 16: [Legal Profession Act, sections 26.01 and 26.02] allows the benchers to make rules to provide for suspension of a lawyer or an articled student during an investigation and for medical examination of a lawyer or an articled student if it is likely necessary to protect the public.

SECTION 17: [Legal Profession Act, section 27] allows the law society to collect the costs of an investigation or remedial program from a lawyer or law firm and allows the filing of a certificate with the Supreme Court for recovery of the costs.

SECTION 18: [Legal Profession Act, section 29] allows the benchers to make rules about the extent to which law firms, as well as lawyers, may hold themselves out as engaging in areas of practice.

SECTION 19: [Legal Profession Act, section 30] is consequential to the disestablishment of the special compensation fund and creates the trust protection insurance program.

SECTION 20: [Legal Profession Act, section 31] repeals the section that requires continuance of the special compensation fund.

SECTION 21: [Legal Profession Act, section 32] allows the benchers to establish standards of financial responsibility for law firms as well as for lawyers, and to monitor adherence to those standards.

SECTION 22: [Legal Profession Act, section 33] allows the benchers to regulate the trust accounting of law firms as well as of lawyers.

SECTION 23: [Legal Profession Act, section 34] requires law firms as well as lawyers to follow rules governing unclaimed trust money.

SECTION 24: [Legal Profession Act, section 36] changes the benchers' rule-making power to

• allow for rules to be made about the investigation of the books, records and accounts of law firms as well as of lawyers,
• allow for rules to be made requiring a representative of a law firm to appear before the benchers or a committee to discuss the conduct of the firm,
• authorize the issuance of a citation against a law firm,
• permit the benchers to disbar a lawyer who has been convicted in another jurisdiction of an offence equivalent to an indictable offence, and
• provide for the protection of the privacy of records that are irrelevant to an investigation or examination and inadvertently gathered in the investigation or following a court order.

SECTION 25: [Legal Profession Act, section 37] adds the ability of the Law Society to apply to the Supreme Court for an order for seizure of law firm records in specified circumstances.

SECTION 26: [Legal Profession Act, section 37.1] gives the Law Society the authority to collect personal information in conducting an investigation or examination, in accordance with the Freedom of Information and Protection of Privacy Act.

SECTION 27: [Legal Profession Act, section 38] changes the benchers' discipline-related rule-making powers to

• allow disciplinary rules to be made about law firms as well as about lawyers,
• specify that suspension of a lawyer may continue until the fulfillment of a condition,
• raise the maximum fine amounts payable in disciplinary proceedings, and
• allow the filing of a certificate with the Supreme Court for recovery of fines.

SECTION 28: [Legal Profession Act, section 39] clarifies the authority of the benchers to make rules for an order suspending a person who is subject to a disciplinary process and adds the ability to impose conditions on the enrollment of an articled student.

SECTION 29: [Legal Profession Act, section 40] repeals a provision about medical examinations that is replaced by section 26.02 of the Act as added by this Bill.

SECTION 30: [Legal Profession Act, section 41] replaces more specific terms with a general reference to a law firm representative.

SECTION 31: [Legal Profession Act, section 42] is consequential to the ability of the Law Society to regulate law firms and to the establishment of review boards.

SECTION 32: [Legal Profession Act, section 43] clarifies the right to appear at a hearing with counsel.

SECTION 33: [Legal Profession Act, sections 44 and 44.1] clarifies and consolidates the provisions that compel the appearance of witnesses.

SECTION 34: [Legal Profession Act, section 45] repeals a provision that is now addressed in section 44 of the Act as amended by this Bill.

SECTION 35: [Legal Profession Act, section 46] replaces the benchers with review boards for the purposes of rules governing the assessment of costs and allows the filing of a certificate with the Supreme Court for recovery of costs.

SECTION 36: [Legal Profession Act, section 47] replaces the benchers with review boards for the purposes of reviews on the record, allows for reviews of orders for costs and allows the benchers to make rules establishing review boards.

SECTION 37: [Legal Profession Act, section 48] allows the Law Society to appeal a decision of a panel or review board to the Court of Appeal on a question of law.

SECTION 38: [Legal Profession Act, section 61] allows the Law Foundation to retain outside lawyers and acknowledges that law firms as well as lawyers remit money to the foundation.

SECTION 39: [Legal Profession Act, section 62] adds law firms to the provisions concerning interest on trust accounts.

SECTION 40: [Legal Profession Act, section 63] adds law firms to the provisions concerning security and investment of trust funds.

SECTION 41: [Legal Profession Act, section 64] adds law firms to the definitions used for the purposes of lawyers' fees.

SECTION 42: [Legal Profession Act, section 66] is consequential to changes made by this Bill to the definition of "agreement" in section 64 of the Act.

SECTION 43: [Legal Profession Act, section 68] adds law firms to the provision concerning agreements for legal services.

SECTION 44: [Legal Profession Act, section 83] makes the language in this provision consistent with other amendments made to the Act by this Bill and makes an amendment consequential to the enactment of section 30 (1.1) of the Act by this Bill.

SECTION 45: [Legal Profession Act, section 87] makes amendments to

• correct a cross-reference,
• add law firms to the provision concerning the admissibility of responses in respect of a complaint or investigation,
• specify further reports that are not admissible in a proceeding without the consent of the executive director, and
• provide that the consent of the executive director is needed for the disclosure of information acquired by specified persons in the performance of their duties under the Act.

SECTION 46: [Legal Profession Act, section 88] makes amendments to

• add law firms to the provision that protects from breach of duty if confidential information or information subject to solicitor client privilege is provided to the Law Society in accordance with the Act,
• clarify that a person must provide information if required under the Act, regardless of confidentiality or privilege, and that the information is admissible in a proceeding under the Act, and
• make a housekeeping amendment.

SECTION 47: [Legal Profession Act, section 89] repeals a provision, concerning the confidentiality of information, files and records, that has been superseded by amendments made to the Act by this Bill.

SECTION 48: [Legal Profession Act, section 92] adds law firms to provisions concerning legal archives.

SECTION 49: [Legal Profession Act, section 93] repeals an obsolete transitional provision.

SECTION 50: [Transition — special compensation fund] provides for funds remaining in the special compensation fund to be transferred to the insurance fund on the repeal of the provision that continues the special compensation fund.

SECTION 51: [Transition — power to make rules] gives the benchers the authority to make rules for transitional purposes, if necessary.