BILL ANALYSIS Ó AB 2685 Page 1 ASSEMBLY THIRD READING AB 2685 (Judiciary Committee) As Introduced March 12, 2012 Majority vote JUDICIARY 10-0 ----------------------------------------------------------------- |Ayes:|Feuer, Wagner, Atkins, | | | | |Dickinson, Gorell, Huber, | | | | |Jones, Monning, | | | | |Wieckowski, Bonnie | | | | |Lowenthal | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : Authorizes the State Bar (Bar) to assess active member dues of $410 for 2013 only. EXISTING LAW authorizes the Bar to collect $315 in annual membership fees from active members, with a one year only $10 rebate in 2012, for a total annual dues bill of $400 in 2012 only. The other $95 is pursuant to statutory authorization to assess annually the following fees: $40 for the Client Security Fund; $25 for disciplinary activities; $10 to fund the Lawyer Assistance Program (LAP); $10 special assessment to fund information technology upgrades (expires January 1, 2014); and, $10 for the Building Fund (expires January 1, 2014). FISCAL EFFECT : None COMMENTS : The State Bar of California is the largest state bar in the country. The Bar's programs are financed mostly by annual mandatory membership dues paid by attorneys as well as other fees paid by applicants seeking to practice law. The Bar has many committed and hard-working staff and new Bar leaders who work diligently to ensure that the legal profession's admissions system is properly administered to protect the public, and its discipline system maximizes public protection. Last Year's Major Governance Reforms : Last year the Legislature enacted, in SB 163 (Evans), Chapter 417, Statutes of 2011, the most sweeping changes to the governance structure of the State Bar in many decades. Among other reforms, the Legislature AB 2685 Page 2 reduced the size and revised the composition of the Bar board, and specified for the first time that the protection of the public is the highest priority for the Bar and its board of trustees (the new name for the members of the board). Successful Recent Implementation Efforts : Since the enactment of SB 163 (Evans), the three branches of state government have been working smoothly in the transition process called for in that landmark legislation. The Bar has met all of the required deadlines for informing the Legislature about the process for transition to a smaller board as well as in developing its new five-year strategic plan. It has also made very impressive progress this past year under new leadership in dramatically reducing its decades-old backlog of discipline cases. Just since this past July, the Bar reportedly has cleared away thousands of backlogged cases and also dramatically cut the number of fully investigated backlog cases awaiting formal charges. The year 2012 has proved to be a year of substantial reported progress by the Bar on the discipline system reform and repair front, as well as on the road to governance reform. Thus as the Legislature strives as part of its annual oversight responsibility to continue to assist the Bar and the public in further strengthening the nation's largest Bar, it is timely for the Legislature to continue to review with the Bar and other interested parties other additional ways in which the Bar can potentially improve its procedures to maximize transparency, accountability and openness, and maximize its paramount duty of public protection. In this regard, the following issue areas are benefitting from discussions with the Bar as this measure moves forward. Because the Bar is housed within the judicial branch, it has not yet been subject to some of the important consumer protection and openness laws which seek to ensure the integrity, transparency, and accountability of state government operations, such as the Public Records Act, the Public Contract rules and some conflict of interest requirements under the Political Reform Act. (However there has been a trend towards consistency with key consumer protection laws; for example, last year in SB 163 (Evans), the Bar was essentially made subject to the terms of the Bagley-Keene Opening Meeting Law (B-K Act) by the Legislature, see discussion below). Whether continuing to exclude the Bar's non-court related functions from the benefits AB 2685 Page 3 of such important public protection and transparency laws make sense today, in light of the government's increasingly vigorous commitment to transparency and accountability to the public it serves, as well as the Bar's express public protection duty and its recent acknowledgment of the importance of providing maximum transparency to the public, warrants continuing beneficial review and consideration by the Bar and the Legislature. Full Compliance With Bagley-Keene : Last year the Legislature directed the Bar to conform to the Bagley-Keene open meeting requirements, and the Bar has not yet fully conformed to these "good government" requirements. The Legislature is therefore working with the Bar this year as this measure moves forward with hopes and confidence of reaching full effective conformity with this transparency law. Public Accessibility to Bar Administrative Records : The Legislature has broadly supported transparency and stated, in the California Public Records Act (CPRA), that "access to information concerning the conduct of the people's business is a fundamental and necessary right of every person in this state." However because of the Bar's status as a judicial branch entity that is also not a court, it appears thus far not to have been included in the broad public protection mandate for public access to records. It is important to note in this regard that the Supreme Court is set to consider a common law right to access to the Bar's records when it hears Sander v. State Bar of California, S194951, 2012 Cal. LEXIS 2190 (Cal. Feb. 29, 2012), on appeal from a unanimous panel of the First District which found such right of access applicable to the Bar. Thus this appears to be an additional and timely issue for continuing discussion with the Bar as this measure moves forward. Conflict of Interest Provisions Under the Political Reform Act : Legislative findings that "Ýp]ublic officials, whether elected or appointed, should perform their duties in an impartial manner, free from bias caused by their own financial interests or the financial interests of persons who have supported them" helped lead to the creation of the Political Reform Act (Act). The Act requires that public entities have conflict of interest codes that prevent officials from acting in a way that financially benefits them. The Bar is already subject to this Act. However, the Bar, along with the Judicial Council and the Commission on Judicial Performance, is not yet apparently AB 2685 Page 4 required to comply with the requirement, applicable to other entities, that its conflict of interest codes must require that designated employees be disqualified from decisions that may financially benefit them. This too is an issue area that will benefit from discussions as the measure moves forward. Contracting Rules Under the Public Contract Code : The Public Contract Code requires that contracts for services entered into by state agencies for $5,000 or more are generally subject to significant control requirements, including competitive bidding, and review and approval by the Department of General Services. However, courts and agencies within the judicial branch are currently specifically exempted from these requirements. Instead, thus far the Bar has only been required by the Legislature to use competitive bidding for contracts that are over $50,000 in the aggregate or, in the case of information technology, over $100,000. There is also apparently no agency, similar to the Department of General Services, providing oversight of the Bar's contracting processes. This too is an issue area that will benefit by further discussion as the measure moves forward. This measure received bipartisan unanimous support in the Judiciary Committee and it has no known opposition. Analysis Prepared by : Drew Liebert, Kevin Baker, and Leora Gershenzon / JUD. / (916) 319-2334 FN: 0003559