BILL ANALYSIS
SB 55
Page 1
SENATE THIRD READING
SB 55 (Corbett)
As Amended December 10, 2009
2/3 vote. Urgency
SENATE VOTE : Vote not relevant
NATURAL RESOURCES APPROPRIATION
(vote not relevant)
(vote not relevant)
SUMMARY : Continues the State Bar's authority to assess and
collect dues from licensed attorneys in California in order to
support the State Bar's operations, including discipline.
Specifically, this bill :
1)Authorizes the State Bar to continue to collect active
membership dues of up to $410 for the year 2010, maintaining
2009 dues levels.
2)Provides that the State Bar shall have a preference for using
in-house employees for information technology (IT) projects,
whenever possible. Further provides that nothing in the bill
shall be read to be inconsistent with any memorandum of
understanding between the State Bar and the recognized
employee organizations or any relevant principles of labor
law.
3)Increases the State Bar's informal bid contracting authority
limits from $50,000 to $100,000 for contracts for IT goods
and/or services, as specified.
4)Requires the State Bar to report to the Senate and Assembly
Judiciary Committees on or before April 1, 2010, and annually
thereafter, on the impact of the changes made per 3) above.
In addition to a description of the impact of those changes,
the report shall include, with specificity, the following:
a) The projects that previously would have been required to
comply with Article 4 (commencing with Section 10335) of
Chapter 2 of Part 2 of Division 2 of the Public Contract
Code, but are no longer subject to that requirement because
the contract amount is between $50,000 and $100,000; and,
b) Whether the changes have improved the efficiency of the
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contracting process. This provision sunsets on January 1,
2014.
5)Provides that the fees paid by limited liability partnerships
(LLPs) and law corporations to the State Bar shall be used for
its regulatory and disciplinary purposes.
6)Provides that at the time of filing an Application for
Issuance of a Certificate of Registration as a LLP pursuant to
the Rules of the State Bar, an applicant for registration
shall also file with the State Bar a separate form stating
that the limited liability partnership has complied with the
security requirements described in paragraph (2) of
subdivision (a) of Section 16956 of the Corporations Code.
7)Adds an urgency clause.
EXISTING LAW :
1) Requires all attorneys who practice law in California to be
members of the State Bar and establishes the State Bar for
the purpose of regulating the legal profession. Pursuant to
the State Bar Act, the annual mandatory membership fee set by
the State Bar's Board of Governors to pay for discipline and
other functions must be ratified by the Legislature.
2) Authorizes the State Bar to collect $315 in annual
membership fees from active members for a total annual dues
bill of $410 for the year 2009. The other $95 is pursuant to
statutory authorization to assess annually the following
fees:
a) $40 for the Client Security Fund; $25 for disciplinary
activities;
b) $10 to fund the Lawyer Assistance Program;
c) $10 special assessment to fund information technology
upgrades (expires January 1, 2011); and,
d) $10 for the Building Fund (expires January 1, 2014).
3) Authorizes the State Bar to collect $75 in annual membership
fees from inactive members for a total annual dues bill of
$125 for the year 2009. The other $50 is pursuant to
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statutory authorization to assess annually the following
fees:
a) $10 for the Client Security Fund;
b) $25 for disciplinary activities;
c) $5 to fund the Lawyer Assistance Program; and,
d) $10 for the Building Fund (expires January 1,
2014).
1) Prohibits the use by the State Bar of mandatory dues to fund
political and ideological activities, as a violation of a
member's First Amendment freedom of speech rights, where such
expenditures were not necessarily or reasonably incurred for
the purpose of regulating the legal profession or improving
the quality of the legal services available to the people of
the state. Existing law allows members to deduct up to $10
from the mandatory dues if the member does not wish to fund
legislative activities and non-Keller lobbying and activities
with his or her dues. (Keller v. State Bar of California
(1990) 496 U.S. 1.)
2) Requires LLPs and law corporations to register with the
State Bar.
3) Prohibits the State Bar from awarding a contract for goods
and/or services for more than $50,000 unless it complies with
specified public contracting requirements.
FISCAL EFFECT : None
COMMENTS : This bill reauthorizes the State Bar to collect
annual membership fees for 2010, keeping with the typical
approach of an annual dues authorization bill to ensure the
State Bar is appropriately funded and provide helpful and
appropriate legislative oversight of the State Bar's many
important functions. The bill authorizes the State Bar to
continue to collect active membership dues of up to $410 for the
year 2010, maintaining 2009 dues levels. It would also clarify
that the State Bar can deposit fees collected from law
corporations and limited liability companies in the State Bar's
general fund to be used for regulatory and disciplinary
purposes. This change is intended to assist the State Bar in
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its non-dues revenue adjustments to help ensure that it can
fulfill its public protection and member services roles. This
bill would also increase the State Bar's informal bid
contracting authority limits from $50,000 to $100,000 for IT
contracts only. The increased threshold for these contracts is
intended to help provide the State Bar with greater flexibility.
The State Bar has indicated that it is planning to implement the
following cost reduction measures: 1) defund 46 vacant
positions totaling a 9% workforce reduction (saves $4 to $5
million annually); 2) end General Fund subsidy of the Lawyer's
Assistance Fund and implement plans to reduce funding to the
statutory minimum (saves approximately $300,000 in 2010 and
increasing in future years); and, 3) end the print edition of
the CalBar Journal in 2010 (saves approximately $1.1 million
annually).
This bill is identical to SB 641 (Corbett), which passed this
house overwhelmingly (75-1), except that this bill includes an
urgency clause and postpones the date by which dues must be
submitted for one month (March 1) to reflect that dues
statements will be issued later than usual because of the
Governor's veto of SB 641. The author and sponsor report that
the State Bar has acted responsibly to address the issues raised
in the Governor's veto message.
If not enacted, the State Bar would be required to begin
immediately procedures for a layoff process that would result in
formal layoff notices being sent in the first week of January.
Supporters state that this would be crippling to the State Bar's
essential mission of public protection against unethical
attorneys.
Analysis Prepared by : Kevin Baker / JUD. / (916) 319-2334
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