BILL ANALYSIS Ó
SB 163
Page 1
SENATE THIRD READING
SB 163 (Evans)
As Amended July 13, 2011
Majority vote
SENATE VOTE :39-0
JUDICIARY 8-1
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|Ayes:|Feuer, Wagner, Atkins, | | |
| |Dickinson, Beth Gaines, | | |
| |Huber, Monning, | | |
| |Wieckowski | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Jones | | |
| | | | |
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SUMMARY : Implements major changes to the governance structure of
the State Bar (Bar) to maximize the Bar's prioritization of public
protection in all of its activities and makes other reforms to the
Bar's governance structure. In addition, the measure provides a $10
reduction in dues for all Bar members in 2012 and increases the
amount Bar members may voluntarily chose to contribute to help
address the ongoing crisis in legal services for the next two years
only. Specifically, this bill , among other things:
1)Provides a $10 reduction in dues for all Bar members in 2012 only.
2)Provides that protection of the public shall be the highest
priority of the State Bar and the board of trustees in exercising
their licensing, regulatory, and disciplinary functions, and
specifies that whenever the protection of the public is
inconsistent with other interests sought to be promoted, the
protection of the public shall be paramount.
3)Revises the composition and size of the board of trustees to be
made up of six public members appointed by the Governor and the
Legislature, as provided under existing law, and 13 attorney
members consisting of the following: six attorney members elected
from newly created State Bar districts, based on the six court of
appeal districts in California; five new attorney members
appointed by the California Supreme Court; and, two new attorney
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members appointed by the Senate Rules Committee and the Speaker of
the Assembly, for a reduced total number of 19 board trustees.
4)Phases in the transition to the smaller board, requiring the Bar
to determine and ensure that the transition from 23 members to 19
members is achieved by October 31, 2014.
5)Requires the board to ensure that its open meeting requirements
are consistent with, and conform to, the Bagley-Keene Open Meeting
Act.
6)Requires the board to complete and implement a five-year strategic
plan, to be updated every two years, and requires the board
president to report annually to the Supreme Court, Governor, and
the Senate and Assembly Judiciary Committees on the steps that the
board has undertaken to implement the strategic plan, as well as
indicate any measures that the board intends to undertake in the
upcoming years to address the projected needs contained in the
plan.
7)Increases from the current $10 to $20 for the next two years the
amount that Bar members may voluntarily (but need not) choose to
allocate to address the ongoing crisis in legal services for
Californians of lesser means, unless any Bar member chooses not to
support those activities.
8)Acknowledges that the Bar has also voluntarily committed to
transferring $2 million in 2012 and $2 million in 2013 from
non-mandatory dues monies to nonprofit legal services
organizations regulated by the Bar to similarly help ensure that
all Californians have equal access to justice.
9)Clarifies that specified conflict of interest provisions apply to
new public members appointed to the board after the enactment of
this measure.
FISCAL EFFECT : None
COMMENTS : According to the current president of the State Bar, who
supports this bill, this measure implements the most sweeping
changes to the governance structure of the State Bar in decades.
Among other reforms, the bill revises the composition and reduces
the size of the Bar's governance board, adding for the first time a
substantial component of attorney members selected by the Supreme
Court. The bill reduces the size of the board from 23 to 19 members
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over a three-year period. The bill also, consistent with other
professional statutes, specifies 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).
The measure also reduces member dues by $10 for 2012 by granting all
Bar members a $10 rebate next year due to a continuing substantial
surplus in the Bar's General Fund. In addition, the measure
increases from the current $10 to $20 for the next two years the
amount that Bar members may voluntarily contribute to help address
the ongoing crisis in legal services for Californians of lesser
means. In the event they choose not to make this voluntary
contribution the dues statement will simply reflect that the normal
allocation to the Bar's General Fund will remain.
The bill will also acknowledge that the Bar has also committed to
transferring $2 million in 2012 and $2 million in 2013 from its
non-mandatory funds to nonprofit legal services organizations that
provide free legal aid to low-income Californians in light of the
extreme funding shortfall that imperils the ability of these
organizations to help ensure justice for all Californians without
regard to income, though this commitment may be interrupted in 2013
if the Bar's General Fund faces extraordinary circumstances as
defined in the measure.
As of February 2011, the Bar had 170,986 active members and 49,034
inactive members. 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 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, AB 2764 (Assembly Judiciary Committee, Chapter 476,
Statutes of 2010) created within the Bar the Governance in the
Public Interest Task Force. The Task Force was created in response
to concerns that actions by the State Bar Board of Governors did not
sufficiently take into account the protection of the public.
Several examples demonstrating the concern were included in
committee analyses of AB 2764. The Task Force consisted of 11
members, who were tasked with submitting a report to the Supreme
Court, the Governor, and the Senate and Assembly Judiciary
Committees containing recommendations for enhancing the protection
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of the public and ensuring that protection of the public is the
highest priority in the licensing, regulation, and discipline of
attorneys. This report was reviewed by the Senate and Assembly
Judiciary Committees in their regular consideration of the annual
bar dues bill.
The Task Force began meeting in September 2010 and, after regularly
and diligently holding a number of meetings around the state, the
Task Force voted on May 5, 2011, to submit its reports and
recommendations to the Supreme Court, Governor, and Legislature. On
May 11, 2011, the Task Force presented its work product to the
Supreme Court, Governor, and Legislature in the form of both a
majority report, largely supported by the attorney members of the
Task Force, and a minority report, largely supported by the public
members of the Task Force.
Drawing from both the majority and minority reports, received by the
Legislature on May 11, 2011, the author amended this measure on May
27, 2011, to benefit from the governance insights and
recommendations of both reports. The author writes in support of
the bill:
Over the last nine months, the State Bar's Governance in
the Public Interest Task Force spent considerable time
and effort discussing its charge to make recommendations
to enhance the protection of the public. These efforts
are well reflected in the majority and minority reports
issued by the Task Force Ýlast month.] SB 163 is a
well-thought out compromise proposal that draws from both
of these reports.
The bill will help to address the issues identified by
the Legislature in creating the Task Force while at the
same time implementing changes in a gradual phased-in
manner. In transitioning to a smaller board, no sitting
board member (including those elected this year) will be
forced to resign or have their term reduced or shortened.
At the same time, the changes proposed by this bill will
sufficiently revise the make-up of the board to allow for
appointments-in addition to elections-of lawyer members.
As a result, attorneys will have three different ways to
become members of the State Bar's board of trustees:
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they can be elected, appointed by the Supreme Court, or
appointed by the Legislature. At the same time, the bill
ensures that the ratio of professional to public members
is more reasonable, and includes a public protection
charge ensuring that protection of the public is the
highest priority for the State Bar.
The bill also ensures that the diversity of the board is
maintained by specifying criteria that the Supreme Court
should consider when making appointments to the board.
This includes important criteria such as attorneys who
represent various categories, including legal services,
small firm or solo practitioners, and historically
underrepresented groups.
On June 18, 2011, at a special session, the current Bar board voted
to support the measure. And on Friday, June 24, 2011, the Bar's
Board Operations Committee, representing the full board at those
times when the full board is not in session, voted unanimously to
support this bill.
Analysis Prepared by : Drew Liebert / JUD. / (916) 319-2334
FN: 0001673