BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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


          Bill No:  SB 877
          Author:   Harman (R)
          Amended:  8/20/10
          Vote:     21

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

           SENATE FLOOR  :  31-0, 5/13/10 (Consent) 
          AYES: Aanestad, Alquist, Ashburn, Cedillo, Cogdill, Correa,  
            Denham, DeSaulnier, Ducheny, Dutton, Florez, Hancock,  
            Harman, Hollingsworth, Huff, Kehoe, Leno, Liu, Lowenthal,  
            Negrete McLeod, Padilla, Pavley, Price, Romero, Runner,  
            Simitian, Steinberg, Strickland, Walters, Wolk, Yee
          NO VOTE RECORDED: Calderon, Corbett, Cox, Oropeza, Wiggins,  
            Wright, Wyland, Vacancy, Vacancy

           ASSEMBLY FLOOR  :  76-0, 8/23/10 - See last page for vote


           SUBJECT  :    Arbitration:  legal representation

           SOURCE  :     Securities Industry and Financial Markets  
          Association


           DIGEST  :    This bill extends the sunset provision until  
          January 1, 2013, from the out-of-state attorney arbitration  
          counsel program.

           Assembly Amendments  extend, rather than remove, the sunset  
                                                           CONTINUED





                                                                SB 877
                                                                Page  
          2

          date, and add delete contingency language.

           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).)

          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 extends the sunset provision until January 1,  
          2013.

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

           SUPPORT  :   (Verified  8/20/10)

          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  

                                                           CONTINUED





                                                                SB 877
                                                                Page  
          3

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


           ASSEMBLY FLOOR  :  
          AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall, Bill  
            Berryhill, Tom Berryhill, Block, Blumenfield, Bradford,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, De La Torre, De Leon,  
            DeVore, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,  
            Fuller, Gaines, Galgiani, Garrick, Gatto, Gilmore,  
            Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber,  
            Huffman, Jeffries, Jones, Knight, Lieu, Logue, Bonnie  
            Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,  
            Niello, Nielsen, Norby, V. Manuel Perez, Portantino,  
            Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio,  
            Audra Strickland, Swanson, Torlakson, Torres, Torrico,  
            Tran, Villines, Yamada, John A. Perez
          NO VOTE RECORDED: Davis, Furutani, Vacancy, Vacancy


          RJG:nl  8/24/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****











                                                           CONTINUED