Lawyers e-Journal

Thursday, Jul. 30, 2009
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Legislative news

Legislature restores a portion of the Trial Court's FY 10 funding with enactment of supplemental budget; Federal Trade Commission announces 90-day delay in enforcing the “Red Flags Rule”

On Wednesday, the Legislature enacted a supplemental budget that would restore $9.4 million of the $18.5 million that Gov. Deval Patrick vetoed from the Trial Court's FY 10 budget. Additionally, the supplemental budget restores $75,000 of the $111,000 cut from the Board of Bar Examiners account and the $507,000 veto reduction of the Social Law Library account. The supplemental budget now awaits action by Patrick, who has 10 days to act on the legislation.

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The Federal Trade Commission announced on Wednesday a 90-day delay in enforcing the "Red Flags Rule." The rule will be enforced beginning on Nov. 1, 2009.  The Red Flags Rule was designed to combat identity theft and requires certain creditors to develop and implement written programs to identify, detect and respond to warning signs of identity theft.

The FTC plans to apply the rule to lawyers, despite the fact that they are not creditors. The Massachusetts Bar Association has been working with the American Bar Association, members of Congress and many other state and local bar associations to convince the FTC to reconsider its position applying the Red Flags Rule to lawyers engaged in the practice of law.

Click here to see MBA President Edward W. McIntyre's letter to the FTC.

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