By order dated October 12, 2001, the court adopted a new Rule for Admission of Attorneys, numbered as Rule 16.05, authorizing limited admission to the practice of law in Oregon of persons admitted to the practice of law in other jurisdictions and serving as house counsel for businesses and other entities in Oregon. Section (13) of that rule contained an erroneous reference to the rule as "Rule 15.05". Therefore, section (13) of the rule is amended to delete "Rule 15.05" and to insert in its place "Rule 16.05".

DATED this 18th day of October, 2001.

Wallace P. Carson, Jr., Chief Justice

Rule 16.05 ADMISSION OF HOUSE COUNSEL

An attorney employed by a business entity authorized to do business in Oregon, who has been admitted to practice law in another state, federal territory or common-wealth, or the District of Columbia, may be admitted to practice law as house counsel in this state, subject to the provisions, conditions and limitations in this rule, by the following procedure:

(1) The attorney, if at least 18 years of age, may apply for admission to practice law as house counsel by:

(a) Filing an application as prescribed in Rule 4.15; and

(b) Providing verification by affidavit signed by both the applicant and the business entity that the applicant is employed as house counsel and has disclosed to the business entity the limitations on the attorney to practice law as house counsel as provided by this rule.

(2) The applicant shall pay the application fees prescribed in Rule 4.10.

(3) The applicant shall be investigated as prescribed in Rule 6.05.

(4) The applicant shall take and pass the Professional Responsibility Examination prescribed in Rule 7.05.

(5) If a majority of the non-recused members of the Board of Bar Examiners considers the applicant to be qualified as to the requisite moral character and fitness to practice law, the Board shall recommend the applicant to the Supreme Court for admission to practice law as house counsel in Oregon.

(6) If the Supreme Court considers the applicant qualified for admission, it shall admit the applicant to practice law as house counsel in Oregon. The applicant's date of admission as a house counsel member of the Oregon State Bar shall be the date the applicant files the oath of office with the State Court Administrator as provided in Rule 8.10(2).

(7) In order to qualify for and retain admission to practice law as house counsel, an attorney admitted under this rule must satisfy the following conditions, requirements and limitations:

(a) The attorney shall be limited to practice exclusively for the business entity identified in the affidavit required by section (1)(b) of this rule, and is not authorized by this rule to appear before a court or tribunal, or offer legal services to the public;

(b) All business cards, letterhead and directory listings, whether in print or electronic form, used in Oregon by the attorney shall clearly identify the attorney's employer and that the attorney is admitted to practice in Oregon only as house counsel or the equivalent;

(c) The attorney shall pay the Oregon State Bar all annual and other fees required of active members admitted to practice for two years or more;

(d) The attorney shall be subject to ORS Chapter 9, these rules, the Oregon Code of Professional Responsibility, the Oregon State Bar's Rules of Procedure, the Oregon Minimum Continuing Legal Education Rules and Regulations, and to all other laws and rules governing attorneys admitted to active practice of law in this state;

(e) The attorney shall promptly report to the Oregon State Bar: a change in employment; a change in membership status, good standing or authorization to practice law in a state, federal territory, commonwealth, or the District of Columbia where the attorney has been admitted to the practice of law; or the commencement of a formal disciplinary proceeding in any such jurisdiction

(8) The attorney shall report immediately to the Oregon State Bar, and the admission granted under this section shall be automatically suspended, when:

(a) Employment by the business entity is terminated; or

(b) The attorney fails to maintain active status or good standing as an attorney in at least one state other than Oregon, federal territory, commonwealth, or the District of Columbia; or

(c) The attorney is suspended or disbarred for discipline, or resigns while disciplinary complaints or charges are pending, in any jurisdiction.

(9) An attorney suspended pursuant to section (8)(a) of this rule shall be reinstated to practice law as house counsel when able to demonstrate to the Oregon State Bar that, within six months from the termination of the attorney's previous employment, the attorney is again employed as house counsel by a qualifying business entity, and upon verification of such employment as provided in section (1)(b) of this rule.

(10) An attorney suspended pursuant to section (8)(b) of this rule shall be reinstated to practice law as house counsel when able to demonstrate to the Oregon State Bar that, within six months from the attorney's failure to maintain active status or good standing in at least one other jurisdiction, the attorney has been reinstated to active status or good standing in such jurisdiction.

(11) Except as provided in sections (9) and (10) of this rule, an attorney whose admission as house counsel in Oregon has been suspended pursuant to section (8) of this rule, and who again seeks admission to practice in this state as house counsel, must file a new application with the Board of Bar Examiners under this rule.

(12) The admission granted under this section shall be terminated automatically when the attorney has been otherwise admitted to the practice of law in Oregon as an active member of the Oregon State Bar.

(13) For the purposes of this Rule 15.05, the term "business entity" means a corporation, partnership, association or other legal entity, excluding governmental bodies, (together with its parents, subsidiaries, and affiliates) that is not itself engaged in the practice of law or the rendering of legal services, for a fee or otherwise.

The Oregon State Bar Board of Governors has proposed adopting a rule authorizing limited admission to the practice of law in Oregon of persons admitted to the practice of law in other jurisdictions and serving as house counsel for businesses and other entities in Oregon. The Oregon Board of Bar Examiners supports the proposed rule.

The matter of the proposed house counsel rule came before the court at its public meeting of October 9, 2001. The court approved the proposed new rule as set out in the three pages attached to this order. The new rule shall become effective on November 1, 2001.

DATED this 12th day of October, 2001.

Wallace P. Carson, Jr., Chief Justice