Board of governors tables vote on allowing sections to use section funds to buy alcohol pending legal review

The Board of Governors of the Bar Association on an agenda item Thursday postponed a decision on a proposed change to the sections’ fiscal policy that would let sections use their own funds to purchase alcohol at section-sanctioned events.

The proposal, advanced by the member engagement council, would revert the sections policy to the version in effect before February 2016 and would let sections determine whether to use section funds to pay for alcohol at events, proponents said. "A strong majority of section leaders ... favor reversion of the fiscal policy to what it was before 02/2016," Governor Matthew Dresden, co-chair of the member engagement council, said in presenting the recommendation.

The change was approved unanimously earlier by the member engagement council and by the budget and audit committee, Dresden said; however, multiple governors told the board they wanted a legal-risk briefing before a final vote.

Supporters said the change mainly alters how money flows for hosted bars and could make it easier for smaller sections to hold social events. "It's just the source of where the funds are," said Governor Petrosyk, who serves as liaison for the Solo and Small Practice section, noting that many sections provide one drink ticket at welcome receptions and that using section funds would simplify payment logistics.

Director Placci, director of the member wellness program, told the board that the policy shift would not change the organization’s approach to events and urged the board to pair any change with responsible-drinking safeguards. "The bottom line is it is getting there," Placci said of alcohol service at events, adding that the association could set procedures such as limiting drink tickets, requiring licensed bartenders and ensuring nonalcoholic options are equally available.

Opponents raised liability and reputational concerns. "We are a professional organization, not a social club," said Nancy Hawkins, representing the Family Law Section, arguing that section dues are held as a fiduciary resource for professional programming and not for social events. Governor Ahern said he has handled cases involving multimillion-dollar judgments tied to alcohol-related injuries and said that risk informed his opposition.

After extended debate and multiple requests for legal analysis, Governor Arneson moved to table the matter until the board meets in executive session to review legal risk; the motion was seconded and approved by the board. The board will discuss the legal analysis in executive session and reconvene the item when that review is complete.

The member engagement council and the budget and audit committee had recommended the change to the sections’ fiscal policy. The board did not vote to adopt the policy change at the meeting; instead, it postponed a final decision pending the executive-session legal review.