The Board of Governors of the Oklahoma Bar Association met at the OSU Foundation in Stillwater on Friday, Aug. 18, 2006.

STILLWATER HOSPITALITY

President Grimm recognized the Payne County Bar Association for hosting the Thursday evening social event, OSU Foundation for Friday’s breakfast, Past President Melissa DeLacerda for lunch following the board meeting, and past OBA Stillwater presidents Winfrey Houston, Willie Baker, Melissa DeLacerda and adopted Gary Clark for gift baskets given to board members. Governor Parsley moved, President-Elect Beam seconded to issue resolutions of appreciation to all the sponsors.

REPORT OF THE PRESIDENT

President Grimm reported he attended the Carter County Bar reception in Ardmore, OBA LRE strategic planning meeting and OBA Bar Center Facilities Committee meeting. He participated in the OBA executive director’s performance review and in a meeting with OBF officers regarding building issues. As part of the ABA Annual Meeting in Hawaii, he attended the Southern Conference of Bar Presidents reception, National Conference of Bar Presidents, General Practice, Solo & Small Firm Division Lifetime Achievement Award presentation to Allen Smallwood, Excellence in Professionalism Curriculum Award presentation to the TU Law School, ABA House of Delegates and Missouri Bar Association reception.

REPORT OF THE VICE PRESIDENT

Vice President Holmes shared highlights of State Bar of New Mexico Annual Meeting. He attended the Tulsa Hudson-HallWheaton/Johnson-Sontag American Inn of Court dinner and reception. He participated in the executive director annual review and in a meeting with OBF officers regarding building issues.

REPORT OF THE PRESIDENT-ELECT

President-Elect Beam reported he attended the luncheon at the Mordys following the Ardmore board meeting and the Communications Task Force meeting. He also met with Executive Director Williams and President Grimm about various OBA issues. He attended the OBA public hearing in Arapaho regarding the proposed changes to the Oklahoma Rules of Professional Conduct. He attended the ABA Annual Meeting, National Conference of Bar Presidents, Southern Conference of Bar Presidents meetings, GPSOLO Division annual meeting and ABA House of Delegates.

REPORT OF THE EXECUTIVE DIRECTOR

Executive Director Williams reported he attended C.D. Northcutt’s 90th birthday celebration in Ponca City, ABA Annual Meeting, National Association of Bar Executives, National Conference of Bar Presidents, East Central University reception for its new president, LRE strategic planning meeting, construction company meeting, Bar Center Facilities Committee meeting and meetings with OBA officers. He spoke at the OU College of Law orientation and at the Downtown Oklahoma City Lions Club.

BOARD MEMBER REPORTS

Governor Bates reported she attended the Cleveland County Bar Association meeting and presented a CLE program at the OU law school. Governor Caudle reported he attended the board meeting and social events in Ardmore and Comanche County Bar Association meeting and CLE in Lawton. He chaired the OBA State Legal Referral Service Task Force meeting at the OBA Bar Center. He attended a luncheon meeting with the Comanche County Bar Association for John Richter, newly appointed U.S. Attorney, Western District of Oklahoma. He continued preparation for the September board meeting in Lawton. Governor Christensen reported she attended the board meeting and social events in Ardmore. Governor Farris reported he attended the board meeting in Ardmore, including the luncheon hosted by Mike and Christy Mordy following the meeting, and the OBA Diversity Committee meeting. Governor Hermanson reported he attended the OBA State Legal Referral Service Task Force meeting in Oklahoma City, Carter County Bar Association reception and dinner, July Board of Governors meeting in Ardmore and lunch at the Mordy’s following the meeting. Governor Hogan reported he attended the board meeting in Ardmore, the luncheon following the meeting hosted by Mike and Christy Mordy, Pittsburg County Bar Association monthly meeting and “Four More Years” party hosted by Pittsburg County judges. Governor Kennemer reported he attended the social event hosted by Christy and Mike Mordy and the Carter County Bar Association in Ardmore, Board of Governors meeting in Ardmore and Seminole/Hughes County Bar Association luncheon. Governor Parsley reported he attended the board meeting and social events in Ardmore, ABA Annual Meeting in Honolulu, Communications Task Force meeting and Texas County Bar Association meeting. Governor Souter reported during the past two months he attended the Solo and Small Firm Conference, board meeting at Tanglewood Resort and two Creek County Bar Association luncheons.

REPORT OF THE YOUNG LAWYERS DIVISION

Governor Williams reported during the past two months she attended the Solo and Small Firm Conference and YLD board meeting/Midyear Meeting at Tanglewood Resort, BOG Board Meeting and Social Events in Ardmore, ABA Annual Meeting in Honolulu, including both the YLD Assembly and ABA House of Delegates, Communications Task Force meeting, Executive Director Evaluation Committee meeting, YLD July board meeting in Tulsa and Payne County Bar Association meeting. She was involved in numerous conferences with YLD leadership regarding midyear reports and upcoming projects, including Bar Exam Survival Kits, Gift of Life Project and Children and the Law Committee work. She handled correspondence with Oklahoma delegates to the ABA House of Delegates regarding the delegates dinner in Hawaii. She was involved in various meetings with YLD board members regarding OBA awards nominations, elections, appointments for next year and OBA Annual Meeting.

REPORT OF THE SUPREME COURT LIAISON

Justice Edmondson reported two election ballot challenges have being reviewed by the Supreme Court during the summer.

REPORT OF THE GENERAL COUNSEL

General Counsel Murdock shared a status report of the Professional Responsibility Commission and OBA disciplinary matters. He reported he attended a CLE planning meeting for the December ethics seminar and an OBA Directors meeting to discuss budget issues. He met with the Oklahoma Tax Commission to discuss lawyer compliance issues.

RECOMMENDATION TO STRIKE MEMBERS

Executive Director Williams reminded the board that bar members on the applications for orders striking members for nonpayment of 2005 dues and for noncompliance with MCLE 2004 requirements are currently suspended. He explained that every effort, including certified mail, is made to contact them. In addition, a new automatic exemption process that rolls over every year eliminates non-reporting problems for members. The board authorized Executive Director Williams to submit the two applications for orders to the Supreme Court.

COMMUNICATIONS TASK FORCE

The board approved the Communications Task Force recommendation to offer the OBA member survey online in addition to its being mailed with dues statements.

OKLAHOMA BAR FOUNDATION TRUSTEES APPOINTMENTS

The board voted to appoint Judge Shon Erwin, Lawton; Jack L. Brown, Tulsa; Charles F. Alden III, Oklahoma City; and William Farrier, Tulsa, as OBF trustees. Their terms will expire Dec. 31, 2009.

ADVISORY TASK FORCE APPOINTMENT

President Grimm said he has been notified of the need to appoint a member of the OBA Taxation Law Section to the Advisory Task Force on Oklahoma Corporate Income Tax Reform, with a term that expires Dec. 31, 2006. He will submit a recommendation to the board for an e-mail vote before the next meeting.

SPECIAL GUESTS

Oklahoma State University mascot Pistol Pete and members of the Cowboy Marching Band stopped by for a surprise visit. OBA Past President Gary Clark and Pistol Pete presented board members with “Ornery Cowboy” certificates.

BUILDING RENOVATIONS

Executive Director Williams reported construction is not moving as quickly as initially estimated and described the difficulties. He said inside electronic doors are installed and outside doors are coming next week. The dedication will be held in late October. He said the Bar Center Facilities Committee is beginning to look at other needed renovations to the bar center building.

ANNUAL MEETING

Executive Director Williams reported a planning meeting is set for Monday. Arthur Miller will be the keynote speaker and some highly recommended entertainment will be featured at a new event to celebrate the foundation’s 60th anniversary.

UPDATE ON MEMBER ASSISTANCE PROGRAM

Executive Director Williams reported members have responded. He was happy to report there was no member suicide in July; however, there was one in August. He said the program has received positive media response in the Oklahoma Gazette and Fox TV. The evening CLE series on mental health issues will start next week. Governor Farris said the Tulsa County Bar Association is also offering a mental health CLE seminar, which will be videotaped, featuring a nationally known authority on lawyer stress. It was suggested to offer programming online for free without credit.

DISTRIBUTION OF RESTITUTION FUNDS

General Counsel Murdock reviewed the background of the issue and recommended the OBA prorate the money it is holding to former clients of a former attorney previously reimbursed by the Clients’ Security Fund at the same rate as determined by the CSF, which would compensate the clients at 92 percent. Discussion followed. As board liaison to the Clients’ Security Fund Committee, Governor Caudle said he volunteered to discuss this with the committee that will meet before the next board meeting in Lawton. The board tabled action until the next meeting.

ETHICS 2000 REPORT

Vice President Holmes spoke on Rule 5.4. The board voted to substitute language from the ABA version. Ethics Counsel Hendryx reviewed the background of Rule 8.5. Rule 5.5 was discussed. Guy Clark addressed issues of Rule 5.5 and shared insight on past action of the Board of Governors when he served on the board. The board voted to adopt the minority report. Rule 1.0, preamble and scope were discussed. The board approved the committee’s recommendations for Rules 8.3, 8.4, 8.5, 1.0, preamble and scope subject to the completion of the project. Guy Clark spoke for the committee recommendation on Rule 1.15, and Melissa DeLacerda spoke for a minority report of Rule 1.15 which would incorporate trust account overdraft notification into the existing rule. General Counsel Murdock reviewed options used for early detection of disciplinary problems by other states. Oklahoma has not adopted any of the options. The board voted to adopt Ms. DeLacerda’s minority report with corrections of typographical errors and additional wording that affirms adoption of mandatory reporting with language to be determined before the next meeting. Ethics Counsel Hendryx said she will draft proposed language for Rule 1.15. Governor Parsley spoke about the challenge of small town banking and expressed his concern about Rule 1.15 (7)(a) and (7)(b). The board voted to adopt the committee’s recommendation as to Rule 1.15 with changes and correcting a grammar problem. A vote to add language to Rule 1.15 to provide exemption to long-standing established banking relationships failed. Guy Clark noted that if Rule 1.15 is adopted portions of the Rules Governing Disciplinary Actions will need to be changed. The board recommended all rules be submitted to the House of Delegates with a recommendation for adoption.

EXECUTIVE SESSION

The board voted to go into executive session to discuss the executive director’s evaluation. The board met in session and voted to come out of executive session.

VICE PRESIDENT RESIGNATION

Judge Holmes announced that he was deeply gratified by the support the Board of Governors gave him by its unanimous resolution supporting his confirmation. The resolution was read on the floor of the U.S. Senate. He said he was recently sworn in as a 10th Circuit appellate judge and will office in Oklahoma City. He then announced that although he wholeheartly supports the OBA and is extremely proud to be an OBA member, in light of his new responsibilities, he was withdrawing his candidacy for president-elect and resigning as association vice president effective immediately. President Grimm expressed appreciation to Judge Holmes for his service to the association. As a result of the resignation, President Grimm said it was his recommendation to appoint former board member, J. William Conger, Oklahoma City, to serve the remaining term as OBA vice president. An e-mail vote will be conducted before the next meeting.

NEXT MEETING

The board will meet at 9 a.m. in Lawton on Friday, Sept. 15, 2006.