BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1865
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          Date of Hearing:   April 17, 2012

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                     AB 1865 (Alejo) - As Amended:  April 9, 2012

                    PROPOSED CONSENT (As Proposed to be Amended)

           SUBJECT  :  RESIDENTIAL TENANCIES: EVICTIONS: NOTICES

           KEY ISSUE  :  SHOULD THE COURT NOTICE SENT TO ALL DEFENDANTS UPON 
          THE FILING OF AN EVICTION CASE INCLUDE ADDITIONAL CONTACT 
          INFORMATION FOR ONE OR MORE NONPROFIT BAR ASSOCIATIONS, IF 
          AVAILABLE, THAT PROVIDE LEGAL SERVICES TO PERSONS IN THE COURT 
          WHERE THE ACTION IS FILED?

           FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.

                                      SYNOPSIS

          This bill, sponsored by the Conference of California Bar 
          Associations, seeks to require the mandatory court notice sent 
          to each defendant in an unlawful detainer action to contain, in 
          addition to name and phone number of the county bar association, 
          the name and telephone number of one or more nonprofit bar 
          associations, if available, as determined by the court, that 
          provides legal services to persons in the court where the action 
          is filed.  In addition, only associations that are duly 
          authorized by the State Bar as a lawyer referral service (LRS) 
          would be eligible to appear on the court notice.  Supporters of 
          the bill contend that existing law unnecessarily restricts the 
          court from including more information about qualified lawyer 
          referral services available to tenants on the court notice that 
          is sent to tenants facing eviction.  LRS are regulated both by 
          Section 6155 of the Business & Professions Code, and by a 
          detailed set of State Bar Rules and Regulations to ensure that 
          they comply with minimum professional standards or else face 
          losing certification by the Bar.  As proposed to be amended, 
          four apartment associations that previously opposed the bill now 
          have withdrawn their opposition and are neutral.  There is 
          currently no registered opposition to the bill.

           SUMMARY  :  Expands court-provided notice to defendants in 
          eviction cases to provide information about lawyer referral 
          programs operated by nonprofit local bar associations.  








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          Specifically,  this bill  requires the mandatory court notice sent 
          to each defendant in an unlawful detainer action to contain, in 
          addition to name and phone number of the county bar association, 
          the name and telephone number of one or more nonprofit bar 
          associations, if available, as determined by the court, that 
          provides legal services to persons in the court where the action 
          is filed and that is duly authorized by the State Bar as a 
          lawyer referral service.

           EXISTING LAW  :  

           1)Requires the court clerk, upon the filing of any unlawful 
            detainer action, to mail to each defendant named in the action 
            a notice that contains on its face the following:

             a)   the name and telephone number of the county bar 
               association; and

             b)   the name and telephone number of an office or offices 
               funded by the Legal Services Corporation or qualified legal 
               service projects that receive funds distributed through the 
               State Bar program for legal services to indigent persons, 
               that provide legal services to low-income persons in the 
               county in which the action was filed.  (Code of Civil 
               Procedure Section 1161.2.)

          2)Prohibits a lawyer referral service from being owned or 
            operated, in whole or in part, directly or indirectly, by 
            those lawyers to whom, individually or collectively, more than 
            20 percent of referrals are made.  Further provides that a 
            referral service that is owned or operated by a bar 
            association shall be deemed to be owned or operated by its 
            governing committee so long as the governing committee is 
            constituted and functions in the manner prescribed by the 
            minimum standards.  (Business and Professions Code Section 
            6155(b).)

          3)Requires the State Bar, with the approval of the Supreme 
            Court, to formulate and enforce rules and regulations which, 
            among other things, do the following:

             a)   Establish minimum standards for lawyer referral 
               services. The minimum standards shall include provisions 
               ensuring that panel membership shall be open to all 
               attorneys practicing in the geographical area served who 








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               are qualified by virtue of suitable experience, and 
               limiting attorney registration and membership fees to 
               reasonable sums which do not discourage widespread attorney 
               membership.

             b)   Require that an entity seeking to qualify as a lawyer 
               referral service register with the State Bar and obtain 
               from the State Bar a certificate of compliance with the 
               minimum standards for lawyer referral services.

             c)   Require that, to increase access to the justice system 
               for all Californians, lawyer referral services establish 
               separate ongoing activities or arrangements that serve 
               persons of limited means.

             d)   Require each lawyer who is a member of a certified 
               lawyer referral service to comply with all applicable 
               professional standards, rules, and regulations, and to 
               possess a policy of errors and omissions insurance, as 
               specified.  (Business and Professions Code Section 
               6155(f).)

          4)Provides that cause for denial of certification, or 
            recertification, or revocation of certification of a lawyer 
            referral service shall include, but not be limited to, 
            noncompliance with the statutes or minimum standards governing 
            lawyer referral services.  (Business and Professions Code 
            Section 6155(g).)

           COMMENTS  :  This bill, sponsored by the Conference of California 
          Bar Associations, seeks to require the mandatory court notice 
          sent to each defendant in an unlawful detainer action to 
          contain, in addition to name and phone number of the county bar 
          association, the name and telephone number of one or more 
          nonprofit bar associations, if available, that provides legal 
          services to persons in the court where the action is filed.  In 
          addition, only associations that are duly authorized by the 
          State Bar as a lawyer referral service would be eligible to 
          appear on the court notice. 
          Because the bill limits the possible candidates for inclusion on 
          the notice to those "that provide legal services in the court 
          where the (unlawful detainer) action is filed," it is thought 
          that the court in its wisdom will generally be aware, or easily 
          can be made aware, of the presence of such associations 
          operating in the court.  Nothing in this bill or in existing law 








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          authorizes a nonprofit association to mount a formal legal 
          challenge or appeal to any court notice that does not include 
          its specific contact information.

          According to the author, existing law unnecessarily restricts 
          the court from including more information about legal services 
          available to tenants on the court notice that is sent to tenants 
          facing eviction.  For example, a nonprofit bar association in 
          Placer County may be qualified and available to serve tenants 
          facing eviction from properties in adjacent Sacramento County, 
          but current law prevents that association's contact information 
          from being made available through the court notice to tenants 
          who might benefit from it.

          This bill furthers the legislative intent of SB 892 (1991) to 
          help tenants facing eviction find competent legal 
          representation.   Existing law requires the court notice sent to 
          tenants facing eviction to provide the name and phone number of 
          the county bar association, as well as the name and number of 
          offices or legal service projects, as specified, that provide 
          legal services to low-income persons in the county in which the 
          action was filed.  This latter requirement ensures that the 
          notice provide the contact information for at least one legal 
          services provider serving persons in that area, other than the 
          county bar association, that is funded by the federal Legal 
          Services Corporation (LSC) or that receive funds through the 
          State Bar program for legal services to indigent persons, 
          pursuant to Business & Professions Code Section 6216.  In short, 
          existing law seems intended to help connect defendants in 
          unlawful detainer actions to a lawyer who may provide legal 
          counsel or advice, either through the bar association's 
          certified lawyer referral service or a LSC-funded or Section 
          6216-funded legal service provider. 

          In 1991, the Legislature passed and the Governor signed SB 892 
          (Lockyer), which enacted many of the provisions of CCP Section 
          1161.2 to respond to a perceived crisis stemming from 
          unscrupulous eviction defense services that used records of 
          court filings in civil cases to solicit and defraud tenants.  
          The legislative intent language of SB 892 noted that there "are 
          many law firms and organizations, such as those funded by the 
          federal Legal Services Corporation, which provide competent, 
          thorough, and ethical legal advice and representation to 
          tenants.  These organizations do not find it necessary to 
          solicit clients at their homes but instead respond to requests 








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          for legal assistance."  Legal services programs operated by 
          local county bar associations were included in the statute 
          because they met this description.  The author contends that 
          nonprofit bar associations, authorized by the State Bar as a 
          lawyer referral service, also fit this description and thus the 
          addition of their contact information to the court notice 
          furthers the intent of the statute to assist tenants seeking 
          legal counsel with additional information about resources 
          available to them.

           Requirements for lawyer referral services.   A "lawyer referral 
          service" (LRS) operates for the direct or indirect purpose of 
          referring potential clients to lawyers.  (Rule 4, "Rules and 
          Regulations of the State Bar of California Pertaining to Lawyer 
          Referral Services.")  The purposes of a LRS include (1) to 
          provide a way in which any person may be referred to a 
          qualified, insured lawyer who is able to render and is 
          interested in rendering needed legal services; and (2) to 
          provide information about lawyers and the availability of legal 
          services which will aid the public in their selection of a 
          lawyer; (Rule 5.1.)  An entity seeking to qualify as a lawyer 
          referral service must register with the State Bar and obtain 
          from the State Bar a certificate of compliance with the minimum 
          standards for lawyer referral services.  (BPC Section 6155(f).)  
          Certification shall be renewed at least every two years, and 
          denial of certification or recertification may occur if the 
          State Bar determines noncompliance with either statutory 
          requirements or minimum standards governing LRS.  (BPC Section 
          6155(g).)  An LRS must establish rotational procedures to assure 
          fair and impartial referrals (Rule 13.1), and subject matter 
          panels require a minimum of four attorneys to ensure a 
          legitimate rotation.  Those selected for the subject matter 
          panel are reviewed by the governing committee, which then 
          determines whether the member qualifies for that panel, ensuring 
          that an attorney who is selected has sufficient experience in 
          that subject matter.  (Rule 12.4)

           As proposed to be amended, this bill clarifies that the 
          additional nonprofit association appearing on the notice is 
          determined by the court.   In response to the concerns of several 
          apartment associations, the author proposes to amend the bill to 
          clarify that the additional contact information of the nonprofit 
          association(s) appearing on the notice, as required by this 
          bill, is determined by the court.  The proposed amendment is not 
          intended to allow the court pure discretion to decide whether to 








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          include additional contact information for a nonprofit bar 
          association or not.  The notice must include the additional 
          information of at least one such nonprofit association, if one 
          is available that operates an authorized LRS.  The amendment is:

               On page 3, line 11, after "associations" insert ", as 
               determined by the court,"

          As a result of this proposed amendment, four apartment 
          associations have notified the author and the Committee that 
          they have now removed their opposition to the bill.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Conference of California Bar Associations (sponsor)
          City of Santa Monica
          Consumer Attorneys of California
          Santa Clara County La Raza Lawyers Association
          Watsonville Law Center
          Western Center on Law and Poverty

           Opposition (as proposed to be amended)
           
          None on file
           

          Analysis Prepared by  :    Anthony Lew / JUD. / (916) 319-2334