The State Bar’s emeritus attorney pro bono participation program offers retired attorneys the opportunity to contribute their valuable legal skills to assist low-income Californians. The bar waives the active membership fees of emeritus attorneys who volunteer through qualified legal services programs.

Attorneys may vary their level of involvement and do not need to have expertise in poverty law. Emeritus attorneys receive training, access to MCLE programs and malpractice insurance coverage through their local programs.

To be eligible, an attorney must be a member in good standing with the State Bar, have practiced law or served as a judge in California at least three of the last eight years, and have been admitted to practice law at least 10 years.

Further information is available from Eve Hershcopf in the bar’s office of legal services at 415/561-8213 or 1-800/628-4858.

The Judicial Council’s Special Task Force on Court/Community Outreach has scheduled five meetings and encourages public participation.

The meetings are: Nov. 17, Administrative Office of the Courts (AOC), San Francisco; Jan. 14, John Wayne Airport, Santa Ana; Feb. 11, AOC, San Francisco; March 16, Best Western Hilltop, Redding; and April 13, Hyatt Regency, Los Angeles.

Individuals interested in attending a meeting may contact planning coordinator Shelley Stump, 415/396-9310.

Four changes to the MCLE rules took effect Sept. 1, affecting both providers and attorneys. The rule changes are generally "housekeeping" in nature. They are:

• The special requirement of at least one hour related to the prevention, detection and abatement of substance abuse and emotional distress has been amended. Any number of hours of emotional distress education may be taken, but only six will count toward compliance. (2.1 — Requirement)
• A member residing in California will no longer need to seek separate approval for attending the same MCLE course in a different state. (7.4 — Activities approved for credit by other jurisdictions)
• A clarification was added to the rules notifying all members that it is their responsibility to keep all records of proof of compliance for at least a year after a compliance period ends. (12.1 — Member record-keeping requirement)
• A new amendment makes it clear that a member submitting a member credit request form for a cross-professional activity must explain how the activity is relevant to that member’s practice.

The change in the 1997 federal instructions for reporting punitive damages on federal tax form 1099-MISC may affect attorneys or their clients. The federal change also applies to California information reporting.

All punitive damages, even those related to physical injury or physical sickness, are required to be reported on form 1099-MISC.

For information reporting purposes, the change applies for punitive damage payments made after Aug. 20, 1996.

Revenue Code Section 104(a)(2) has been modified to clarify the taxability of punitive damage payments related to personal physical injury or physical sickness. California Income Tax Law §17131 follows the federal law.

Punitive damages have always been taxable, but those related to physical injury or illness typically were not reported on information returns in the past.

According to the state Franchise Tax Board, punitive damages as well as damages awarded in non-physical injury cases do not qualify as compensation for injury or sickness. Punitive damages are a penalty based on misconduct. Therefore, all punitive damages, even those related to physical injury or sickness, are included in gross income and must be reported in accordance with 1099 information reporting requirements.

Information returns are required to be filed annually with the Franchise Tax Board and Internal Revenue Service. Individuals, partnerships, corporations or other organizations engaged in a trade or business in California may have a requirement to report payments made in the course of their business. Payments reportable on form 1099-MISC include payments of $600 or more for all punitive damages, any damages for non-physical injuries or sickness and any other taxable damages.

Payments made to corporations (other than payments for medical/health services) are not reportable.

Further information about reporting requirements is available from the state Franchise Tax Board, 916/845-6304, and the IRS, 304/263-8700.

The bar board of governors voted to amend the guidelines, minimum standards and forms for mandatory fee arbitration.

The revisions, which reflect changes in the law, enable the bar to enforce mediated agreements which refund fees and/or costs to a client.

The rule changes require attorneys to notify clients of the right to arbitrate through the Mandatory Fee Arbitration program before initiating arbitration through another forum, and parties will have the right to disqualify a mediator as well as an arbitrator upon request.

The fall edition of "California Litigation," a publication of the State Bar’s litigation section, focuses on cyberlaw. As technology advances and use of the Internet expands, cyberlaw issues will increasingly affect not only litigators, but many other legal practitioners as well. The topic is particularly timely because of a recent U.S. Supreme Court decision on a case raising questions about the scope of free speech rights on the Internet.

The articles, written by some of California’s leading attorneys, cover a broad range of legal topics: evidentiary issues; legal tools available on the Internet; attorney-client privilege and e-mail and other electronic communication; and personal jurisdiction and the Internet. A judicial opinion offers a perspective on the admissibility of computer simulation evidence.

Copies of this special edition will be sent free to all members of the litigation section. For information on receiving a copy and on joining the section, call 415/561-8846.

A five-year contract will be awarded to publish the California Official Reports of the decisions of the Supreme Court, the Courts of Appeal, and the appellate departments of the state’s superior courts.

Interested parties are invited to submit publication proposals by Nov. 13. Copies of the RFP may be obtained by calling 415/396-9555.

The State Bar Board of Governors will hold its next regular meeting Dec. 12-13 at its San Francisco office at 555 Franklin St. Committees will meet Friday, Dec. 12, and the full board will meet Saturday at 9 a.m.

The agenda will be available from the secretary, 415/561-8200, or online at www.calbar.org.

On an ongoing basis, in the wake of Gov. Wilson’s veto of the bar fee bill, the board will meet 5 p.m. every Wednesday on a telephone conference call.