BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 163|
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                              UNFINISHED BUSINESS


          Bill No:  SB 163
          Author:   Evans (D)
          Amended:  9/2/11
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  5-0, 5/10/11
          AYES:  Evans, Harman, Blakeslee, Corbett, Leno

           SENATE FLOOR  :  39-0, 6/2/11
          AYES:  Alquist, Anderson, Berryhill, Blakeslee, Calderon, 
            Cannella, Corbett, Correa, De León, DeSaulnier, Dutton, 
            Emmerson, Evans, Fuller, Gaines, Hancock, Harman, 
            Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu, 
            Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, 
            Simitian, Steinberg, Strickland, Vargas, Walters, Wolk, 
            Wright, Wyland, Yee
          NO VOTE RECORDED:  Runner

           ASSEMBLY FLOOR  :  68-9, 09/08/11 - See last page for vote


           SUBJECT  :    State Bar Act

           SOURCE  :     State Bar of California


           DIGEST  :    This bill implements major changes to the 
          governance structure of the State Bar (Bar) to maximize the 
          Bars prioritization of public protection in all of its 
          activities and makes other reforms to the Bar's governance 
          structure.  In addition, this bill provides a $10 reduction 
          in dues for all Bar members in 2012 and increases the 
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          amount Bar members may voluntarily choose to contribute to 
          help address the ongoing crisis in legal services for the 
          next two years only.

           Assembly Amendments  (1) add guidelines to be followed 
          relative to fee rebates and the distribution of funds 
          derived from those fees; and (2) repeals provisions 
          establishing a task force and provide for a new task force 
          ion January 1, 2013.

           Senate Floor Analyses  of 5/27/11 provide that protection of 
          the public shall be the highest priority for the State Bar 
          in exercising its licensing, regulatory, and disciplinary 
          functions.  The amendments also rename the "Board of 
          Governors" to be the "Board of Trustees" and revise the 
          make-up and size of that Board.

           ANALYSIS  :    Existing law, the State Bar Act, provides for 
          the licensure and regulation of attorneys by the State Bar 
          of California, a public corporation.

          Under existing law, the State Bar is governed by a board 
          known as the Board of Governors of the State Bar.  The 
          Board of Governors consists of 23 members, including 15 
          attorney members, one attorney member elected by the Board 
          of Directors of the California Young Lawyers Association, 
          six public members, and the President of the State Bar.  
          Existing law provides for the election of attorney members 
          to the board from specified counties included in State Bar 
          Districts.  Under existing law, the public members of the 
          board are appointed by the Governor and the Legislature.

          Under existing law, the officers of the State Bar are a 
          president, four vice presidents, a secretary, and a 
          treasurer, and one of the vice presidents may also be 
          elected to the office of treasurer.  Existing law requires 
          the board, within 270 days before the annual meeting, to 
          elect the officers for the ensuing year.  Existing law 
          requires the president and other officers to be elected 
          from among members with specified terms.  Under existing 
          law, the president may vote only in the case of a specified 
          tie vote.

          Existing law establishes a Governance in the Public 

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          Interest Task Force within the State Bar.  The task force 
          is made up of 11 specified board members appointed by the 
          president.  Existing law requires the task force to prepare 
          a report, which includes its recommendations for, among 
          other things, enhancing and ensuring the protection of the 
          public.

          Existing law requires the Board of Governors to charge an 
          annual membership fee for active members of up to $315 for 
          2011.  Existing law also requires the board to charge an 
          annual membership fee for inactive members of up to $75.  
          Existing law authorizes, until January 1, 2014, $10 of 
          those membership fees to be allocated to support nonprofit 
          organizations that provide free legal service to persons of 
          limited means, and authorizes a member to deduct that 
          amount from his/her annual fee if the member elects not to 
          make this allocation.

          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 Bar.

          3. Revises the composition and size of the board of 
             trustees.

          4. Phases in the transition to the smaller board.    

          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.

          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, in which case the member shall receive 

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             a commensurate reduction of that amount in their 
             membership dues.

          8. Acknowledges that the Bar has also voluntarily committed 
             to transferring $2 million in 2012 and $2 million in 
             2013 (unless the bar finds in 2013 that its general fund 
             faces overriding extraordinary circumstances) 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. Places a one-year "pause" on the Governance in the 
             Public Interest Task Force next year to await the new 
             trustee appointments to be made the following year.

          10.Clarifies that specified conflict of interest provisions 
             apply to new public members appointed to the board after 
             the enactment of this measure.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  9/7/11)

          State Bar of California (source)
          Beverly Hills Bar Association

           OPPOSITION :    (Verified  9/7/11)

          The Sacramento Bar Association

          ARGUMENTS IN SUPPORT  :    In support of the bill, the 
          sponsor, State Bar of California, writes that it is 
          "pleased to support Senate Bill 163.  Existing law requires 
          the Board of Governors to charge annual membership dues for 
          members.  SB 163 will extend for one year (2012) the State 
          Bar's authority to collect the dues needed to keep it 
          operating in order to ensure public protection and the 
          proper regulation of attorneys.  The bill simply extends 
          this authority and the amount is not increased by this 
          legislation."



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           ASSEMBLY FLOOR  :  68-9, 09/08/11
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Carter, 
            Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Eng, 
            Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, 
            Galgiani, Gatto, Gordon, Hagman, Halderman, Hall, Harkey, 
            Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, 
            Jeffries, Jones, Knight, Lara, Bonnie Lowenthal, Ma, 
            Mendoza, Miller, Mitchell, Monning, Nestande, Olsen, Pan, 
            Perea, V. Manuel Pérez, Portantino, Silva, Skinner, 
            Solorio, Swanson, Torres, Wagner, Wieckowski, Williams, 
            Yamada, John A. Pérez
          NOES:  Donnelly, Garrick, Grove, Logue, Mansoor, Morrell, 
            Norby, Smyth, Valadao
          NO VOTE RECORDED:  Campos, Gorell, Nielsen

          RJG:do  9/9/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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