BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 877|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
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                                    CONSENT


          Bill No:  SB 877
          Author:   Harman (R)
          Amended:  3/8/10
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  4-0, 5/4/10
          AYES:  Corbett, Harman, Hancock, Leno
          NO VOTE RECORDED:  Walters


           SUBJECT  :    Arbitration:  legal representation

           SOURCE  :     Securities Industry and Financial Markets  
          Association


           DIGEST  :    This bill removes the sunset provision from the  
          out-of-state attorney arbitration counsel program, making  
          the program permanent.

           ANALYSIS  :    Existing law provides that a party to an  
          arbitration has the right to be represented by an attorney  
          at any arbitration proceeding or hearing.  (Code Civ. Proc.  
          Sec. 1282.4(a).)

          Existing law authorizes an out-of-state attorney to appear  
          on behalf of a client in arbitration as long as the  
          out-of-state attorney files a certificate, as specified,  
          and once the certificate is approved by the arbitrator, the  
          certificate must be filed with the State Bar of California  
          and served on all parties to the arbitration.  (Code Civ.  
          Proc. Sec. 1282.4(b-e).)
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          Existing law provides that the out-of-state attorney  
          participating in an arbitration is subject to the  
          disciplinary jurisdiction of the State Bar of California.   
          (Code Civ. Proc. Sec. 1282.4(f).)

          Existing law provides that the above-described provisions  
          sunset on January 1, 2011.  (Code Civ. Proc. Sec.  
          1282.4(k).)

          This bill removes the sunset provision and make the  
          out-of-state arbitration requirements permanent.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  5/6/10)

          Securities Industry and Financial Markets Association  
          (source) 
          California Dispute Resolution Council


           ARGUMENTS IN SUPPORT  :    According to the author's office:
          
               This bill does not seek to remedy a deficiency;  
               rather, it seeks to acknowledge that a previously  
               assigned deficiency has been adequately and  
               permanently addressed.  The out-of-state arbitration  
               program is an effective, useful program that should be  
               a permanent fixture of California state law.   
               Accordingly, this bill seeks to implement the  
               suggestion of the State Bar that "consideration should  
               be given to whether the sunset provisions of CCP  
               [Sec.] 1282.4 should be removed, which would make the  
               requirements for out-of-state attorneys to appear in  
               California arbitration proceedings permanent."
          
          The California Dispute Resolution Council (CDRC), notes  
          that "[t]his statute has worked to ensure that arbitrations  
          can proceed smoothly in our state, especially in those  
          cases where out of state counsel are the lawyers for the  
          parties involved in the arbitration.  This is not an  
          attempt by these lawyers to avoid becoming members of the  







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          state bar but merely to perform their duties for their  
          clients when the arbitration occurs in the State of  
          California."


          RJG:nl  5/6/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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