BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2685
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          ASSEMBLY THIRD READING
          AB 2685 (Judiciary Committee)
          As Introduced March 12, 2012
          Majority vote 

           JUDICIARY           10-0                                        
           
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          |Ayes:|Feuer, Wagner, Atkins,    |     |                          |
          |     |Dickinson, Gorell, Huber, |     |                          |
          |     |Jones, Monning,           |     |                          |
          |     |Wieckowski, Bonnie        |     |                          |
          |     |Lowenthal                 |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           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 








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          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 








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          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 








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          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 



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