Amended in Senate June 18, 2014

Amended in Assembly May 12, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2746


Introduced by Committee on Judiciary (Assembly Members Wieckowski (Chair), Alejo, Chau, Dickinson, Garcia, Muratsuchi, and Stone)

March 4, 2014


An act to amend Sectionsbegin delete 6140 and 6140.03 ofend deletebegin insert 6031, 6033, 6073, 6140, 6140.03, 6216, and 6218 of, and to add Section 6140.04 to,end insert the Business and Professions Code, relating to attorneys.

LEGISLATIVE COUNSEL’S DIGEST

AB 2746, as amended, Committee on Judiciary. Attorneys: annual membership fees.

Existing law, the State Bar Act, provides for the licensure and regulation of attorneys by the State Bar of California, a public corporation. The State Bar is governed by a board of trustees.begin insert Existing law authorizes the board, among other duties, to aid in all matters pertaining to the improvement of the administration of justice, including all matters that may advance the professional interests of the members of the State Bar.end insert Existing law, until January 1, 2015, requires the board to charge an annual membership fee for active members of up to $315 for 2014. Existing law requires the board to charge an annual membership fee for inactive members of up to $75.

This billbegin insert would authorize the board to collect reasonable charges from members with respect to all matters incident to licensing, regulation, and discipline, and would include the voluntary support and delivery of legal services to indigent persons, among other duties of the board. The billend insert would, until January 1, 2016, require the board to charge the annual membership fee for active members described above for 2015.

Existing law requires the board to increase each of the annual membership fees described above by an additional $30, to be allocated only to support nonprofit organizations that provide free legal services to persons of limited means, except to the extent that a member elects not to support those activities. Existing law requires that the invoice provided to members for payment of the annual membership fee provide each member the option of deducting $30 from the annual membership fee if the member elects not to have this amount allocated for these purposes.begin insert Existing law also requires the State Bar to pay administrative costs from funds received to provide civil legal services to indigent persons before paying other specified costs in connection with the program.end insert

This bill would increase that optional, additional amount to $38.begin insert The bill would add $7 to the annual membership fees for active members to be allocated only for the purpose of paying the administrative costs of the programs of the State Bar. The bill would also delete provisions requiring the State Bar to pay administrative costs before paying other specified costs from funds received to provide civil legal services to indigent persons, as specified. The bill would make other related changes.end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 6031 of the end insertbegin insertBusiness and Professions
2Code
end insert
begin insert is amended to read:end insert

3

6031.  

(a) The board may aid inbegin insert and collect reasonable charges
4authorized by statute from members with respect toend insert
all matters
5begin insert incident to licensing, regulation, and discipline, including all
6mattersend insert
pertaining to the advancement of the science of
7jurisprudence or to the improvement of the administration of
8justice, including, but not by way of limitation, all matters that
9may advance the professional interestsbegin insert and responsibilitiesend insert of the
10members of the State Barbegin insert, the support and delivery of legal services
11to indigent persons, including qualified nonprofit legal aid
P3    1organizations and pro bono, the advancement of equal access,end insert
and
2such matters as concern the relations of the bar with the public.

3(b) Notwithstanding this section or any otherbegin delete provision ofend delete law,
4the board shall not conduct or participate in, or authorize any
5committee, agency, employee, or commission of the State Bar to
6conduct or participate in any evaluation, review, or report on the
7qualifications, integrity, diligence, or judicial ability of any specific
8justice of a court provided for in Section 2 or 3 of Article VI of
9the California Constitution without prior review and statutory
10authorization by the Legislature.

begin delete

11The provisions of this

end delete

12begin insertThis end insertsubdivisionbegin delete shallend deletebegin insert doesend insert notbegin delete be construed toend delete prohibit a member
13of the State Bar from conducting or participating in such an
14evaluation, review, or report in his or her individual capacity.

begin delete

15The provisions of this

end delete

16begin insertThis end insertsubdivisionbegin delete shallend deletebegin insert doesend insert notbegin delete be construed toend delete prohibit an
17evaluation of potential judicial appointees or nominees as
18authorized by Section 12011.5 of the Government Code.

19begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 6033 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
20amended to read:end insert

21

6033.  

(a) Notwithstanding any otherbegin delete provision ofend delete law, the
22State Bar is expressly authorized to facilitate the professional
23responsibilities of members by collecting, in conjunction with the
24State Bar’s collection of its annual membership dues or otherwise,
25voluntary financial support for nonprofit organizations that provide
26free legal services to persons of limited means.begin insert All funds received
27for programs related to this section shall be devoted to the support
28of qualified legal services projects without deduction for
29administrative fees, costs, or expenses by the State Bar.end insert

30(b) To implement this section, the State Bar, in consultation
31with the Chief Justice of California, shall appoint a task force of
32key stakeholders to analyze the mechanisms and experience of bar
33associations that have adopted programs for the collection of
34financial contributions from bar members and shall propose an
35appropriate method for facilitating the collection and distribution
36of voluntary contributions that is best calculated to generate the
37greatest level of financial support and participation from State Bar
38members, taking into account such issues as the justice-gap
39between the legal needs of low-income people in California and
40the legal resources available to assist them. The method and any
P4    1recommended voluntary contribution amount adopted by the Board
2of Trustees of the State Bar of California shall be implemented for
3the 2008 fiscal year, and shall be reviewed and adjusted as needed
4after two years and, thereafter, every five years as needed, in
5consultation with affected service providers and other key
6stakeholders.

7begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 6073 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
8amended to read:end insert

9

6073.  

It has been thebegin delete traditionend deletebegin insert traditional obligationend insert of those
10learned in the law and licensed to practice law in this state to
11provide voluntary pro bono legal services to those who cannot
12afford the help of a lawyer. Every lawyer authorized and privileged
13to practice law in California is expected to make a contribution.
14In some circumstances, it may not be feasible for a lawyer to
15directly provide pro bono services. In those circumstances, a lawyer
16may instead fulfill his or her individual pro bono ethical
17commitment, in part, by providing financial support to
18organizations providing free legal services to persons of limited
19means. In deciding to provide that financial support, the lawyer
20should, at minimum, approximate the value of the hours of pro
21bono legal service that he or she would otherwise have provided.
22In some circumstances, pro bono contributions may be measured
23collectively, as by a firm’s aggregate pro bono activities or
24financial contributions. Lawyers also make invaluable contributions
25through their other voluntary public service activities that increase
26access to justice or improve the law and the legal system. In view
27of their expertise in areas that critically affect the lives and
28well-being of members of the public, lawyers are uniquely situated
29to provide invaluable assistance in order to benefit those who might
30otherwise be unable to assert or protect their interests, and to
31support those legal organizations that advance these goals.

32

begin deleteSECTION 1.end delete
33begin insertSEC. 4.end insert  

Section 6140 of the Business and Professions Code is
34amended to read:

35

6140.  

(a) The board shall fix the annual membership fee for
36active members for 2015 at a sum not exceeding three hundred
37fifteen dollars ($315).

38(b) The annual membership fee for active members is payable
39on or before the first day of February of each year. If the board
40finds it appropriate and feasible, it may provide by rule for payment
P5    1of fees on an installment basis with interest, by credit card, or other
2means, and may charge members choosing any alternative method
3of payment an additional fee to defray costs incurred by that
4election.

5(c) This section shall remain in effect only until January 1, 2016,
6and, as of that date, is repealed, unless a later enacted statute, that
7is enacted before January 1, 2016, deletes or extends that date.

8

begin deleteSEC. 2.end delete
9begin insertSEC. 5.end insert  

Section 6140.03 of the Business and Professions Code
10 is amended to read:

11

6140.03.  

(a) The board shall increase each of the annual
12membership fees fixed by Sections 6140 and 6141 by an additional
13thirty-eight dollars ($38), to be allocated only for the purposes
14established pursuant to Section 6033, except to the extent that a
15member elects not to support those activities.

16(b) The invoice provided to members for payment of the annual
17membership fee shall provide each member the option of deducting
18 thirty-eight dollars ($38) from the annual membership fee if the
19member elects not to have this amount allocated for the purposes
20established pursuant to Section 6033.

21begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 6140.04 is added to the end insertbegin insertBusiness and
22Professions Code
end insert
begin insert, to read:end insert

begin insert
23

begin insert6140.04.end insert  

Seven dollars ($7) shall be added to the annual
24membership fees fixed by Section 6140 to be allocated only for the
25purpose of paying the administrative costs of the programs of the
26State Bar.

end insert
27begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 6216 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
28amended to read:end insert

29

6216.  

The State Bar shall distribute all moneys received under
30the program established by this article for the provision of civil
31legal services to indigent persons. The funds first shall be
32distributed 18 months from the effective date of this article, or
33upon such a date, as shall be determined by the State Bar, that
34adequate funds are available to initiate the program. Thereafter,
35the funds shall be distributed on an annual basis. All distributions
36of funds shall be made in the following order and in the following
37manner:

begin delete

38(a) To pay the actual administrative costs of the program,
39including any costs incurred after the adoption of this article and
40a reasonable reserve therefor.

end delete
begin delete

P6    1(b)

end delete

2begin insert(a)end insert Eighty-five percent of the fundsbegin delete remaining after payment
3of administrative costsend delete
allocated pursuant to this article shall be
4distributed to qualified legal services projects. Distribution shall
5be by a pro rata county-by-county formula based upon the number
6of persons whose income is 125 percent or less of the current
7poverty threshold per county. For the purposes of this section, the
8source of data identifying the number of persons per county shall
9be the latest available figures from the United States Department
10of Commerce, Bureau of the Census. Projects from more than one
11county may pool their funds to operate a joint, multicounty legal
12services project serving each of their respective counties.

13(1) (A) In any county which is served by more than one
14qualified legal services project, the State Bar shall distribute funds
15for the county to those projects which apply on a pro rata basis,
16based upon the amount of their total budget expended in the prior
17year for legal services in that county as compared to the total
18expended in the prior year for legal services by all qualified legal
19services projects applying therefor in the county. In determining
20the amount of funds to be allocated to a qualified legal services
21project specified in paragraph (2) of subdivision (a) of Section
226213, the State Bar shall recognize only expenditures attributable
23to the representation of indigent persons as constituting the budget
24of the program.

25(B) The State Bar shall reserve 10 percent of the funds allocated
26to the county for distribution to programs meeting the standards
27of subparagraph (A) of paragraph (3) and paragraphs (1) and (2)
28of subdivision (b) of Section 6214 and which perform the services
29described in subparagraph (A) of paragraph (3) of Section 6214
30as their principal means of delivering legal services. The State Bar
31shall distribute the funds for that county to those programs which
32apply on a pro rata basis, based upon the amount of their total
33budget expended for free legal services in that county as compared
34to the total expended for free legal services by all programs meeting
35the standards of subparagraph (A) of paragraph (3) and paragraphs
36(1) and (2) of subdivision (b) of Section 6214 in that county. The
37State Bar shall distribute any funds for which no program has
38qualified pursuant hereto, in accordance with the provisions of
39subparagraph (A) of paragraph (1) of this subdivision.

P7    1(2) In any county in which there is no qualified legal services
2projects providing services, the State Bar shall reserve for the
3remainder of the fiscal year for distribution the pro rata share of
4funds as provided for by this article. Upon application of a qualified
5legal services project proposing to provide legal services to the
6indigent of the county, the State Bar shall distribute the funds to
7the project. Any funds not so distributed shall be added to the funds
8to be distributed the following year.

begin delete

9(c)

end delete

10begin insert(b)end insert Fifteen percent of the fundsbegin delete remaining after payment of
11administrative costsend delete
allocated for the purposes of this article shall
12be distributed equally by the State Bar to qualified support centers
13which apply for the funds. The funds provided to support centers
14shall be used only for the provision of legal services within
15California. Qualified support centers that receive funds to provide
16services to qualified legal services projects from sources other than
17this article, shall submit and shall have approved by the State Bar
18a plan assuring that the services funded under this article are in
19addition to those already funded for qualified legal services projects
20by other sources.

21begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 6218 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
22amended to read:end insert

23

6218.  

All legal services projects and support centers receiving
24funds pursuant to this article shall adopt financial eligibility
25guidelines for indigent persons.

26(a) Qualified legal services programs shall ensure that funds
27appropriated pursuant to this article shall be used solely to defray
28the costs of providing legal services to indigent persons or for such
29other purposes as set forth in this article.

30(b) Funds received pursuant to this article by support centers
31shall only be used to provide services to qualified legal services
32projects as defined in subdivision (a) of Section 6213 which are
33used pursuant to a plan as required by subdivision begin delete(c) end deletebegin insert(b) end insertof Section
346216, or as permitted by Section 6219.



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