BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 345|
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CONSENT
Bill No: SB 345
Author: Evans (D)
Amended: As introduced
Vote: 21
SENATE JUDICIARY COMMITTEE : 6-0, 5/7/13
AYES: Evans, Anderson, Corbett, Jackson, Leno, Monning
NO VOTE RECORDED: Walters
SUBJECT : Attorneys: annual membership fees
SOURCE : State Bar of California
DIGEST : This bill authorizes the State Bar of California to
collect active membership dues of up to $390 for the year 2014.
Consistent with existing law, those dues will fund only
mandatory programs of the State Bar, and members can deduct $5
if they did not wish to support lobbying and other legislative
activities. Members can also deduct an additional $5 if they
did not wish to fund access and elimination of bias programs.
ANALYSIS :
Existing law:
1.Requires all attorneys who practice law in California to be
members of the State Bar and establishes the State Bar for the
purpose of regulating the legal profession. Pursuant to the
State Bar Act, the annual mandatory membership fee set by the
State Bar's Board of Governors to pay for discipline and other
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functions must be ratified by the Legislature.
2.Authorizes the State Bar to collect $315 in annual membership
fees from active members for a total annual dues bill of $410
for the year 2013. 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; $10 special assessment
to fund information technology upgrades (expires January 1,
2014); and $10 for the Building Fund (expires January 1,
2014).
3.Authorizes the State Bar to collect $75 in annual membership
fees from inactive members for a total annual dues bill of
$125 for the year 2013. The other $50 is pursuant to
statutory authorization to assess annually the following fees:
$10 for the Client Security Fund; $25 for disciplinary
activities; $5 to fund the Lawyer Assistance Program; and $10
for the Building Fund (expires January 1, 2014).
4.Prohibits the use by the State Bar of mandatory dues to fund
political and ideological activities, as a violation of a
member's First Amendment freedom of speech rights, where such
expenditures are not necessarily or reasonably incurred for
the purpose of regulating the legal profession or improving
the quality of the legal services available to the people of
the state. Existing law allows members to deduct up to $5
from the mandatory dues if the member does not wish to fund
legislative activities and non-Keller lobbying and activities
with his or her dues.
5.Directs $20 of membership dues, until January 1, 2014, to
legal services purposes unless a member elects not to support
those activities.
This bill authorizes the State Bar to collect active membership
dues of up to $390 for the year 2014.
Background
The State Bar of California is a public corporation. 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. The State Bar of California is the largest state bar
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in the country. As of May 2013, the State Bar had 178,050
active members and 51,985 inactive members, which represents a
slight annual increase in both active members and inactive
members. Total State Bar membership is listed at 242,738, which
includes 2,122 judge members and 10,580 members who are "Not
Eligible to Practice Law."
The Bar's programs are financed mostly by annual membership dues
paid by attorneys as well as other fees paid by applicants
seeking to practice law.
Fiscal condition of the State Bar
The following information was reported to the Legislature in the
2012 Financial Statement and Independent Auditor's Report of the
State Bar of California:
Assets - As of December 31, 2012, the State Bar's total assets
were $196.2 million, up by $49.8 million, or 34.0% compared to
$146.4 million last year. The increase is due to a
combination of (1) a net $44 million increase in capital
assets due to the Los Angeles building acquisition and the
sale of the Los Angeles parking lot, partially offset by
normal depreciation, (2) an $11.3 million increase in cash and
investments, and (3) a $5.5 million decrease in other assets
and grant receivables.
Liabilities - The State Bar's total liabilities consisted of
accounts payable to vendor accounts, unearned fees collected
in advance, grants payable, loans payable, and employee
vacation and sick leave accruals. As of December 31, 2012,
State Bar's total liabilities were $61.2 million, up by $22.1
million, or 51% compared to last year. The increase is mainly
due to a combination of (1) a $25.4 million mortgage loan
obligation obtained for the Los Angeles building acquisition,
(2) a $3.2 million increase in accounts payable to vendors due
to the timing of payments, (3) a $0.8 million increase in
unearned member dues collected in advance, and (4) offset by a
$7.3 million net decrease in grants payables due to the timing
of quarterly grant distribution to grantees.
Net Position - The State Bar's net position as of December 31,
2012, was $135.0 million, which is up by $27.7 million, or
25.8% compared to 2011. The increase in net position is due
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largely to the $24.6 million gain generated from the disposal
of a parking lot in Los Angeles.
Operating Revenues - For the fiscal year ended December 31,
2012, the State Bar's total operating and non-operating
revenues were $158.1 million.
Operating Expenses - For fiscal year 2012, the State Bar's
total operating expenses were $130.4 million, which were down
by $7.0 million or 5.1% compared to $137.4 million last year.
The decrease is a result of cost savings from operations and
lower personnel costs. (2012 Financial Statement and
Independent Auditor's Report of the State Bar of California
(Apr. 30, 2013) State Bar
[as of May 5,
2013] at pp. 4-7.)
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 5/9/13)
State Bar of California (source)
ARGUMENTS IN SUPPORT : The author notes that "[l]egislative
authorization is required and this is part of the Senate and
Assembly Judiciary Committees' annual oversight responsibilities
of the Bar."
AL:nk 5/9/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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