BILL ANALYSIS Ó AB 2746 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2746 (Judiciary Committee) As Amended August 22, 2014 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |76-0 |(May 15, 2014) |SENATE: |33-1 |(August 26, | | | | | | |2014) | ----------------------------------------------------------------- Original Committee Reference: JUD. SUMMARY : Reauthorizes attorney license fees at the same level as the current year. Specifically, this bill : 1)Reauthorizes the State Bar of California (State Bar) to collect active membership dues of up to $390 for the year 2015. 2)Increases by $10 the amount members of the State Bar may choose to contribute voluntarily to the Emergency Legal Aid Voluntary Assistance Option, and requires that all funds received be distributed to qualified legal services projects and support centers without deduction for administrative fees, costs, or expenses by the State Bar. 3)Provides that notwithstanding the provisions of the Business and Professions Code Sections 6009.7 and 6011 regarding a 19-member board, if the president is elected from among those members of the board whose terms on the board expire that year and has not been reelected or reappointed to another term under Business and Professions Code Sections 6013.1, 6013.2, 6013.3, or 6013.5, the president shall serve as a 20th member of the board during his or her one-year term, and he or she may vote. 4)Provides that net proceeds from the sale or lease of real property, if any, be held by the State Bar without expenditure or commitment for any purpose until approved by the Legislature by statute. The Senate amendments add a new provision allowing a member of the Board of Trustees to serve an additional year as president of the board if elected to that position in the last year of his or her term, revise by $2 the amount members may voluntarily AB 2746 Page 2 choose to contribute to the support of nonprofit legal organizations that assist low-income Californians, clarify the use of funds received as voluntary contributions from members to support legal aid organizations, consistently with the State Bar's existing policy and practice, and specify that net proceeds from the sale or lease of the State Bar's real property after payment of obligations and encumbrances and reasonable costs of acquiring and relocating its facilities, if any, shall be held by the State Bar without expenditure or commitment for any purpose until approved by the Legislature. FISCAL EFFECT : None COMMENTS : This non-controversial bill would reauthorize the State Bar's authority to assess and collect dues from licensed attorneys in California in order to support the State Bar's regulatory functions, including discipline. It holds these dues at current levels, which will continue to be $390 for the year 2015 - unchanged from last year. Attorneys who wish to practice law in California generally must be admitted and licensed in this state and must be a member of the State Bar. (California Constitution Article VI, Section 9.) The State Bar of California is the largest state bar in the country. As of May 2014, the State Bar had 181,169 active members and 53,768 inactive members, which represents a slight annual increase in both active members and inactive members. Total State Bar membership is listed at 248,271, which includes 2,147 judge members and 11,186 members who are "Not Eligible to Practice Law." The State Bar's programs are financed almost exclusively by annual membership dues paid by attorneys as well as other fees paid by applicants seeking to practice law. This bill would authorize the State Bar to collect active membership dues of up to $390 for the year 2015, in addition to a $40 optional fee for members who voluntarily choose to contribute to the support of nonprofit legal aid organizations that make free legal services available to poor Californians. The mandatory fee of $390 holds mandatory fees constant at the same rate as last year, when the fee was reduced by $20. The optional legal aid fee continues the existing mechanism by which members who choose to do so can help defray the cost of ensuring that legal services are available without regard to ability to pay market rates, consistently with each lawyer's professional responsibility. The amount allowed for those lawyers who wish AB 2746 Page 3 to contribute voluntarily would increase $10 from $30 to $40. In addition, the bill provides that notwithstanding the provisions of Business and Professions Code Sections 6009.7 and 6011 regarding a 19-member board, if the president is elected from among those members of the board whose terms on the board expire that year and has not been reelected or reappointed to another term under Business and Professions Code Sections 6013.1, 6013.2, 6013.3, or 6013.5, the president shall serve as a 20th member of the board during his or her one-year term, and he or she may vote. Finally, this bill provides that net proceeds from the sale or lease of real property, if any, be held by the State Bar without expenditure or commitment for any purpose until approved by the Legislature by statute. Analysis Prepared by : Kevin G. Baker / JUD. / (916) 319-2334 FN: 0005462