Right - the law allows you to represent yourself because if you screw up, you have no one else to blame. But if you are going to whore out your lawyering skills regardless of whether you get paid or not, the state wants to ensure its citizens are protected from others and its unworkable to create a piecemeal system.
Its like the Spanish Inquisition sketch from Monty Python: NOBODY expects the Spanish Inquisition! Our chief weapon is surprise...surprise and fear...fear and surprise.... Our two weapons are fear and surprise...and ruthless efficiency.... Our *three* weapons are fear, surprise, and ruthless efficiency...and an almost fanatical devotion to the Pope.... Our *four*...no... *Amongst* our weapons.... Amongst our weaponry...are such elements as fear, surprise.... I'll come in again.
So its impractical for the state to say. You must be licensed in the state . . . . oh unless you are a brother of the plaintiff . . . oh or a sister. . . oh or a close friend . . . oh or a next door neighbor.
But there is a solution. Pro Hac Vice - an out of state lawyer like your Alabama brother can petition the court for a temporary license of sort just to litigate your case for you. It happens all the time.
And yes you can take the Bar in any state assuming you meet the exam requirements which is generally you went to lawschool. In certain states, they have a system of reciprocity where members of one state's bar can become members of a different state's bar without taking the test and only paying a fee
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