BILL NUMBER: AB 1404	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 15, 2012

INTRODUCED BY   Committee on Judiciary (Feuer (Chair), Atkins,
Dickinson, Huber, Huffman, Monning, and Wieckowski)

                        MARCH 7, 2011

   An act to amend Section  6213 of the Business and
Professions Code, relating to attorneys.   9250.14 of
the Vehicle Code, relating to vehicles, and making an appropriation
therefor. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1404, as amended, Committee on Judiciary.  Attorneys.
  Vehicles: additional registration fee: vehicle-theft
crimes.  
    Existing law, in addition to the other fees imposed for the
registration of a vehicle, authorizes a county to impose, upon
adoption of a resolution of its board of supervisors, an additional
fee of $1 on all motor vehicles, and continuously appropriates the
money to fund local programs relating to vehicle theft crimes. These
provisions are repealed as of January 1, 2018. Existing law requires
each participating county to issue a fiscal yearend report to the
Controller, summarizing certain matters.  
   This bill would authorize a county of the first class to increase
the fee from $1 to $2, upon adoption of a resolution of its board of
supervisors, and would require the resolution to be submitted to the
Department of Motor Vehicles at least 6 months prior to the operative
date of the fee increase. This bill would add a new source of
revenue to be deposited into a continuously appropriated fund,
thereby making an appropriation.  
    Existing law also requires the Department of the California
Highway Patrol, in consultation with all participating
county-designated regional coordinators, to review the effectiveness
of reducing vehicle theft crimes that were funded by the fees imposed
by the above provisions. Existing law requires the department to
provide a report based on that review and to submit that report, on
or before January 1, 2009, to the Legislature.  
   This bill would repeal the above obsolete requirements imposed on
the Department of the California Highway Patrol and would make other
technical, nonsubstantive changes to these provisions.  

   Existing law, the State Bar Act, provides for the licensure and
regulation of attorneys by the State Bar of California, a public
corporation. Existing law requires an attorney or law firm receiving
or disbursing trust funds to establish and maintain an IOLTA account,
as defined, in which the attorney or law firm is required to deposit
or invest all specified client deposits or funds. Existing law
requires an attorney or law firm establishing an IOLTA account to
report IOLTA account compliance and all other IOLTA account
information required by the State Bar in the manner specified by the
State Bar.  
   This bill would make a technical correction to a definition
related to IOLTA accounts. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION   1.    Section 9250.14 of the 
 Vehicle Code   is amended to read: 
   9250.14.  (a) (1) In addition to any other fees specified in this
code and the Revenue and Taxation Code, upon the adoption of a
resolution by any county board of supervisors, a fee of one dollar
($1) shall be paid at the time of registration or renewal of
registration of every vehicle, except vehicles described in
subdivision (a) of Section 5014.1, registered to an address within
that county except those expressly exempted from payment of
registration fees. The fees, after deduction of the administrative
costs incurred by the department in carrying out this section, shall
be paid quarterly to the Controller. 
   (2) (A) If a county of the first class has adopted a resolution to
impose a one-dollar ($1) fee pursuant to paragraph (1), the county
may increase the fee specified in paragraph (1) to two dollars ($2)
in the same manner as the imposition of the initial fee pursuant to
paragraph (1). The two dollars ($2) shall be paid at the time of
registration or renewal of registration of a vehicle, and quarterly
to the controller, as provided in paragraph (1).  
   (B) A resolution to increase the fee from one dollar ($1) to two
dollars ($2) pursuant to subparagraph (A) shall be submitted to the
department at least six months prior to the operative date of the fee
increase.  
   (2) 
    (3)  In addition to the  one dollar ($1)
 service fee  imposed pursuant to paragraph (1)  ,
and upon the implementation of the permanent trailer identification
plate program, and as part of the Commercial Vehicle Registration Act
of 2001  (Chapter 861 of the Statutes of 2000)  , all
commercial motor vehicles subject to Section 9400.1 registered to an
owner with an address in the county that established a service
authority under this section, shall pay an additional service fee of
two dollars ($2).
   (b) Notwithstanding Section 13340 of the Government Code, the
 money   moneys  paid to the Controller
 is   are  continuously appropriated,
without regard to fiscal years, for the administrative costs of the
Controller, and for disbursement by the Controller to each county
that has adopted a resolution pursuant to subdivision (a), based upon
the number of vehicles registered, or whose registration is renewed,
to an address within that county.
   (c) Except as otherwise provided in this subdivision, 
money   moneys  allocated to a county pursuant to
subdivision (b) shall be expended exclusively to fund programs that
enhance the capacity of local police and prosecutors to deter,
investigate, and prosecute vehicle theft crimes. In any county with a
population of 250,000 or less, the  money  
moneys  shall be expended exclusively for those vehicle theft
crime programs and for the prosecution of crimes involving driving
while under the influence of alcohol or drugs, or both, in violation
of Section 23152 or 23153, or vehicular manslaughter in violation of
Section 191.5  of the Penal Code  or subdivision (c) of
Section 192 of the Penal Code, or any combination of those crimes.
   (d)  Money   The   moneys 
collected pursuant to this section shall not be expended to offset a
reduction in any other source of funds, nor for any purpose not
authorized under this section.
   (e) Any funds received by a county prior to January 1, 2000,
pursuant to this section, that are not expended to deter,
investigate, or prosecute crimes pursuant to subdivision (c) shall be
returned to the Controller, for deposit in the Motor Vehicle Account
in the State Transportation Fund. Those funds received by a county
shall be expended in accordance with this section.
   (f) Each county that adopts a resolution under subdivision (a)
shall submit, on or before the 13th day following the end of each
quarter, a quarterly expenditure and activity report to the
designated statewide Vehicle Theft Investigation and Apprehension
Coordinator in the Department of the California Highway Patrol.
   (g) A county that imposes a fee under subdivision (a) shall issue
a fiscal  year-end   yearend  report to the
Controller on or before August 31 of each year. The report shall
include a detailed accounting of the funds received and expended in
the immediately preceding fiscal year, including, at a minimum, all
of the following:
   (1) The  total revenues   amount of funds
 received  and expended by the county under subdivision
(b) for the immediately preceding fiscal year.
   (2) The total expenditures by the county under subdivision (c) for
the immediately preceding fiscal year.
   (3) Details of expenditures made by the county under subdivision
(c), including salaries and expenses, purchase of equipment and
supplies, and any other expenditures made listed by type with an
explanatory comment.
   (4) A summary of vehicle theft abatement activities and other
vehicle theft programs funded by the fees collected under this
section.
   (5) The total number of stolen vehicles recovered and the value of
those vehicles during the immediately preceding fiscal year.
   (6) The total number of vehicles stolen during the immediately
preceding fiscal year as compared to the fiscal year prior to the
immediately preceding fiscal year.
   (7) Any additional, unexpended fee revenues received under
subdivision (b) for the county for the immediately preceding fiscal
year.
   (h) Each county that fails to submit the report required pursuant
to subdivision (g) by November 30 of each year shall have the fee
suspended by the Controller for one year, commencing on July 1
following the Controller's determination that a county has failed to
submit the report.
   (i) (1) On or before January 1,  2006   2013
 , and on or before January 1  annually thereafter
  of each year  , the Controller shall provide to
the Department of the California Highway Patrol copies of the yearend
reports submitted by the counties under subdivision (g), and, in
consultation with the Department of the California Highway Patrol,
shall review the fiscal yearend reports submitted by each county
pursuant to subdivision (g) to determine if fee revenues are being
utilized in a manner consistent with this section. If the Controller
determines that the use of the fee revenues is not consistent with
this section, the Controller shall consult with the participating
counties' designated regional coordinators. If the Controller
determines that the fee revenues are still not consistent with this
section, the authority to collect the fee by that county shall be
suspended for one year.
   (2) If the Controller determines that a county has not submitted a
fiscal yearend report as required in subdivision (g), the
authorization to collect the service fee shall be suspended for one
year pursuant to subdivision (h).
   (3) When the Controller determines that a fee shall be suspended
for a county, the Controller shall inform the Department of Motor
Vehicles on or before  January 1, 2006, and on or before
 January 1  annually thereafter,   of
each year  that the authority to collect a fee for that county
is suspended.
   (j) On or before January 1  , 2006, and on or before
January 1 annually thereafter   of each year  , the
Controller shall prepare and submit to the Legislature a revenue and
expenditure summary for each participating county that includes all
of the following:
   (1) The total revenues received by each county.
   (2) The total expenditures by each county.
   (3) The unexpended revenues for each county. 
   (k) The Department of the California Highway Patrol, in
consultation with all participating county designated regional
coordinators, shall review the effectiveness of reducing vehicle
theft crimes that were funded by the fees imposed by this section.
The Department of the California Highway Patrol shall provide a
report based on that review and, on or before January 1, 2009, shall
submit that report to the Legislature.  
   (l) 
    (k)  For the purposes of this section, a county
designated regional coordinator is that agency designated by the
participating county's board of supervisors as the agency in control
of its countywide vehicle theft apprehension program. 
   (m) 
    (l) This section shall remain in effect only until
January 1, 2018, and as of that date is repealed, unless a later
enacted statute that is enacted on or before January 1, 2018, deletes
or extends that date. 
  SECTION 1.    Section 6213 of the Business and
Professions Code is amended to read:
   6213.  As used in this article:
   (a) "Qualified legal services project" means either of the
following:
   (1) A nonprofit project incorporated and operated exclusively in
California that provides as its primary purpose and function legal
services without charge to indigent persons and that has quality
control procedures approved by the State Bar of California.
   (2) A program operated exclusively in California by a nonprofit
law school accredited by the State Bar of California that meets the
requirements of subparagraphs (A) and (B).
   (A) The program shall have operated for at least two years at a
cost of at least twenty thousand dollars ($20,000) per year as an
identifiable law school unit with a primary purpose and function of
providing legal services without charge to indigent persons.
   (B) The program shall have quality control procedures approved by
the State Bar of California.
   (b) "Qualified support center" means an incorporated nonprofit
legal services center that has as its primary purpose and function
the provision of legal training, legal technical assistance, or
advocacy support without charge and which actually provides through
an office in California a significant level of legal training, legal
technical assistance, or advocacy support without charge to qualified
legal services projects on a statewide basis in California.
   (c) "Recipient" means a qualified legal services project or
support center receiving financial assistance under this article.
   (d) "Indigent person" means a person whose income is (1) 125
percent or less of the current poverty threshold established by the
United States Office of Management and Budget, or (2) who is eligible
for Supplemental Security Income or free services under the Older
Americans Act or Developmentally Disabled Assistance Act. With regard
to a project that provides free services of attorneys in private
practice without compensation, "indigent person" also means a person
whose income is 75 percent or less of the maximum levels of income
for lower income households as defined in Section 50079.5 of the
Health and Safety Code. For the purpose of this subdivision, the
income of a person who is disabled shall be determined after
deducting the costs of medical and other disability-related special
expenses.
   (e) "Fee generating case" means a case or matter that, if
undertaken on behalf of an indigent person by an attorney in private
practice, reasonably may be expected to result in payment of a fee
for legal services from an award to a client, from public funds, or
from the opposing party. A case shall not be considered fee
generating if adequate representation is unavailable and any of the
following circumstances exist:
   (1) The recipient has determined that free referral is not
possible because of any of the following reasons:
   (A) The case has been rejected by the local lawyer referral
service, or if there is no such service, by two attorneys in private
practice who have experience in the subject matter of the case.
   (B) Neither the referral service nor any attorney will consider
the case without payment of a consultation fee.
   (C) The case is of the type that attorneys in private practice in
the area ordinarily do not accept, or do not accept without
prepayment of a fee.
   (D) Emergency circumstances compel immediate action before
referral can be made, but the client is advised that, if appropriate
and consistent with professional responsibility, referral will be
attempted at a later time.
   (2) Recovery of damages is not the principal object of the case
and a request for damages is merely ancillary to an action for
equitable or other nonpecuniary relief, or inclusion of a
counterclaim requesting damages is necessary for effective defense or
because of applicable rules governing joinder of counterclaims.
   (3) A court has appointed a recipient or an employee of a
recipient pursuant to a statute or a court rule or practice of equal
applicability to all attorneys in the jurisdiction.
   (4) The case involves the rights of a claimant under a publicly
supported benefit program for which entitlement to benefit is based
on need.
   (f) "Legal Services Corporation" means the Legal Services
Corporation established under the Legal Services Corporation Act of
1974 (P.L. 93-355; 42 U.S.C. Sec. 2996 et seq.).
   (g) "Older Americans Act" means the Older Americans Act of 1965,
as amended (P.L. 89-73; 42 U.S.C. Sec. 3001 et seq.).
   (h) "Developmentally Disabled Assistance Act" means the
Developmentally Disabled Assistance and Bill of Rights Act, as
amended (P.L. 94-103; 42 U.S.C. Sec. 6001 et seq.).
   (i) "Supplemental security income recipient" means an individual
receiving or eligible to receive payments under Title XVI of the
federal Social Security Act, or payments under Chapter 3 (commencing
with Section 12000) of Part 3 of Division 9 of the Welfare and
Institutions Code.
   (j) "IOLTA account" means an account or investment product
established and maintained pursuant to subdivision (a) of Section
6211 that is any of the following:
   (1) An interest-bearing checking account.
   (2) An investment sweep product that is a daily (overnight)
financial institution repurchase agreement or an open-end money
market fund.
   (3) An investment product authorized by California Supreme Court
rule or order.
   A daily financial institution repurchase agreement shall be fully
collateralized by United States Government Securities or other
comparably conservative debt securities, and may be established only
with any eligible institution that is "well-capitalized" or
"adequately capitalized" as those terms are defined by applicable
federal statutes and regulations. An open-end money market fund shall
be invested solely in United States Government Securities or
repurchase agreements fully collateralized by United States
Government Securities or other comparably conservative debt
securities, shall hold itself out as a "money market fund" as that
term is defined by federal statutes and regulations under the
Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.), and,
at the time of the investment, shall have total assets of at least
two hundred fifty million dollars ($250,000,000).
   (k) "Eligible institution" means either of the following:
   (1) A bank, savings and loan, or other financial institution
regulated by a federal or state agency that pays interest or
dividends on the IOLTA account and carries deposit insurance from an
agency of the federal government.
   (2) Any other type of financial institution authorized by the
California Supreme Court.