Effective September 1, 2003 the dues paid by most members of the State Bar of Michigan will increase from $260 to $315. This includes a $15 annual assessment for the Client Protection Fund, a $20 increase in the discipline component of the annual dues, and a $20 increase in the general dues. The Court also approved a $50 late fee for the nonpayment of dues, a $100 reinstatement fee, an assessment for inactive members, and modification of the dues exemption for senior lawyers. Formerly the exemption was based on age. Under the new order it is based on 50 years of practice in the state of Michigan. The Court also approved a proposal that allows active or inactive members in good standing to resign from membership in the State Bar of Michigan. The Court did not approve an indexed adjustment provision for the general dues.

"We appreciate the Supreme Court's guidance and assistance in developing and implementing the Bar's Strategic Plan," said Reginald M. Turner, president of the State Bar of Michigan. "This dues increase is an essential first step to respond to the needs of the profession and the public for improvements in the administration of justice and improved bar services. We look forward to a continued dialogue with the Court so that we will be able to fully implement our strategic plan in the future."

In its order, the Court commended the State Bar for its commitment to fiscal responsibility and the fulfillment of its core functions. The Court said that present economic conditions and the uncertainties of the fiscal effect of the other changes in the order necessitated the need to proceed cautiously with respect to requests for additional dues.

"We appreciate the Supreme Court's recognition of our efforts and we are committed to maintaining and increasing the Court's confidence in the Bar," said John T. Berry, executive director of the State Bar of Michigan.

The Court will review the matter of general dues again in the future. It will also review the dues committed to the discipline agencies and the assessment for the Client Protection Fund. A committee will be appointed by the Court to study the potential of alternative financing, including the possibility of a bonding requirement.

The proposal submitted by the Bar's Representative Assembly in late April advocated increasing the general bar dues by $40 with a provision for indexed adjustments, raising the age for a dues exemption from age 70 to 75, adding new fees for inactive members and for reinstatements, and allowing for resignations. The Court last ordered a dues increase in 1993.

A copy of the order can be found at: http://courts.michigan.gov/supremecourt/Resources/Administrative/2002-38-2003-14.pdf