42 U.S.C. § 2996e — Powers, duties, and limitations

(a) Powers of nonprofit corporation; additional powers. As long as it follows this subchapter, the Corporation has the powers given to a nonprofit corporation by the District of Columbia Nonprofit Corporation Act, except section 1005(o) of title 29 of the District of Columbia Code. It may also:

(1)(A) Give financial help to qualified programs that provide legal help to eligible clients. It may make grants to, and contracts with, individuals, partnerships, firms, corporations, nonprofit organizations, and State^* and local governments. For a State or local government, there must be an application from the proper agency or institution, and the Board must specially determine that the proposed arrangement will provide services that non-governmental arrangements would not adequately provide. These grants and contracts must be for providing legal help to eligible clients under this subchapter. (B) Make other grants and contracts needed to carry out this subchapter.

(2) Accept money or property in the Corporation’s name. This includes real, personal, mixed, tangible, and intangible property received by gift, devise, bequest, or another method. The Corporation may use or dispose of it to advance this subchapter’s purposes.

(3) Directly, or through a grant or contract, conduct these activities related to delivering legal help: (A) research, but a grant or contract may not be used for broad general legal or policy research unrelated to representing eligible clients; (B) training and technical help; and (C) serving as a central source for information.

(b) Disciplinary powers; representation questions; lawyers’ professional responsibilities; bar membership; restrictions; languages other than English. (1)(A) The Corporation may make recipients and their employees follow this subchapter and the rules, regulations, and guidelines issued under it. After a hearing under section 2996j, it may end financial support to a recipient that does not comply. (B) In a proceeding where a recipient or its employee represents someone, the court or other decision-maker may not consider, or let affect the final decision, the question whether the representation is authorized under this subchapter or its rules, regulations, or guidelines. A party may send that question to the Corporation. The Corporation must review and decide it promptly and take proper action. This does not prevent judicial review allowed by applicable law.

(2) If a recipient finds that an employee violated, or caused the recipient to violate, this subchapter or its rules, regulations, or guidelines, the recipient must take suitable corrective or disciplinary action using procedures of the types described in section 2996j.

(3) The Corporation may not interfere with a lawyer’s professional duties to the lawyer’s client as established in the American Bar Association’s Canons of Ethics and Code of Professional Responsibility. This section calls those duties “professional responsibilities.” The Corporation may not remove a State’s or another jurisdiction’s power to enforce the professional-responsibility standards that generally apply to lawyers there. The Corporation must make sure activities under this subchapter are carried out consistently with those professional responsibilities.

(4) A lawyer may not receive compensation, directly or indirectly, for legal help under this subchapter unless the lawyer is admitted, or is otherwise authorized by law, rule, or regulation, to practice law or provide that help in the jurisdiction where the help begins.

(5) The Corporation must ensure that (A) while carrying out legal-assistance activities under this subchapter, no Corporation or recipient employee—except as law permits in connection with the employee’s own employment situation—takes part in or encourages a public demonstration, picketing, boycott, or strike; and (B) no such employee at any time takes part in or encourages: (i) rioting or civil disturbance; (ii) activity violating an outstanding injunction of a court with proper jurisdiction; (iii) any other illegal activity; or (iv) intentionally identifying the Corporation or a recipient with political activity prohibited by section 2996f(a)(6). Within 90 days after its first meeting, the Board must issue enforcement rules and regulations for this paragraph and section 2996f(a)(5). Those rules must include procedures of the type described in section 2996j for suspending supported legal help, suspending a Corporation employee or a recipient employee through the recipient, and, after considering other corrective measures and holding a hearing under section 2996j, ending the assistance or employment when appropriate for the violation.

(6) In an area where significant numbers of eligible clients principally speak a language other than English, the Corporation must, as far as feasible, arrange for legal help under this subchapter to be provided in those clients’ principal language.

(c) Participation in litigation; lobbying. The Corporation itself may not: (1) take part in litigation unless it or one of its recipients is a party, or a recipient is representing an eligible client in litigation involving the meaning of this subchapter or a regulation issued under it. It may not participate for any client other than itself; or (2) try to influence Congress, or a State or local legislative body, to pass or defeat legislation. Corporation personnel may testify or make another appropriate communication when (A) a legislative body, committee, or member formally asks them to do so, or (B) the matter concerns legislation or appropriations directly affecting the Corporation’s activities.

(d) Miscellaneous prohibitions. (1) The Corporation may not issue stock or declare or pay dividends. (2) No Corporation income or assets may benefit a director^*, officer, or employee, except as reasonable pay for services or repayment of expenses. (3) Neither the Corporation nor a recipient may give, or make available, corporate money, program employees, or equipment to a political party or association or to a candidate’s campaign for public or party office. (4) Neither may provide those resources to advocate for or oppose a ballot measure, initiative, or referendum. A lawyer may nevertheless give an eligible client legal advice and representation as a lawyer about the client’s legal rights. (5) A staff lawyer may not directly or indirectly bring a class action, class-action appeal, or class-action amicus case unless a recipient project^* director expressly approves it under policies set by the recipient’s governing body. (6) A recipient lawyer may be appointed to give legal help without reasonable compensation only when the appointment is required by a statute, rule, or practice generally applied to lawyers in the court making the appointment.

(e) Political activities of Corporation employees and staff lawyers. (1) At no time may a Corporation or recipient employee intentionally identify the Corporation or recipient with partisan or nonpartisan political activity connected with a political party or association or a campaign for public or party office. (2) For chapter 15 of title 5, Corporation employees and staff lawyers are treated as State or local employees. A staff lawyer may not be a candidate in a partisan political election.

(f) Harassment; malicious abuse of legal process. If the Corporation or a recipient starts an action, a final order favors the defendant and goes against the Corporation or the recipient’s plaintiff, and the court finds on the defendant’s motion that the action was started or pursued solely to harass the defendant or that the plaintiff maliciously abused legal process, the court must order reasonable defense costs and legal fees to be paid to the defendant. The order is appealable before it becomes final. This rule does not apply when it would conflict with a State law, court rule, or generally applicable statute. The Corporation must pay these costs and fees directly.