BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  April 29, 2015


                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT


                              Brian Maienschein, Chair


          AB 285  
          (Gallagher) - As Amended March 26, 2015


          SUBJECT:  Legal assistants.


          SUMMARY:  Makes minor changes to the laws governing the  
          registration of legal document assistants.  Specifically, this  
          bill:  


          1)Requires the county clerk to assign the same number upon  
            renewal of registration to each legal document assistant (LDA)  
            or unlawful detainer assistant (UDA) instead of requiring a  
            new number to be assigned in the event of a lapse in the  
            period of registration.  


          2)Repeals the requirement in existing law that a registered LDA  
            must display the expiration date of his or her registration to  
            appear on printed solicitation, papers, documents, and other  
            printed materials, except for written contracts.  Requires,  
            instead, that the registered LDA's name, business address,  
            telephone number, registration number, expiration date of the  
            registration, and county of registration appear on the written  
            contract, required to be provided to a client pursuant to  
            existing law, on any Internet Web site maintained by the  
            registrant, and in any solicitation, advertisement, document,  
            or correspondence prepared or used by the registrant in  








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            electronic form.  


          3)States that no reimbursement is required by the bill's  
            provisions because the only costs that may be incurred by a  
            local agency or school district will be incurred because this  
            act creates a new crime or infraction, eliminates a crime or  
            infraction, or changes the penalty for a crime or infraction,  
            within the meaning of existing law, or changes the definition  
            of a crime, as specified.  Provides that if the Commission on  
            State Mandates determines that this bill contains costs  
            mandated by the state, reimbursement to local agencies and  
            school districts for those costs shall be made pursuant to  
            current law governing state mandated local costs.  


          EXISTING LAW:   


          1)Prohibits any LDA, including any LDA employed by a partnership  
            or corporation, from providing any self-help service for  
            compensation, unless the LDA is registered in the county in  
            which his or her principal place of business is located and in  
            any other county in which he or she performs acts for which  
            registration is required.  


          2)Requires an LDA or UDA to register with the county clerk in  
            the county in which his or her principal place of business is  
            located (deemed primary registration), and in any other county  
            in which he or she performs acts for which registration is  
            required (deemed secondary registration). Provides that any  
            registration in a county, other than the county of the  
            person's place of business, shall state the person's principal  
            place of business and provide proof that the registrant has  
            satisfied specified bonding requirements.  


          3)Requires an applicant to pay a fee of $175 to the county clerk  








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            at the time he or she files an application for initial  
            registration, including a primary or secondary registration,  
            or renewal of registration.  


          4)Requires the county clerk to maintain a register of LDAs and  
            UDAs, assign a unique number to each LDA or UDA, and issue an  
            identification card to each one.  Provides that upon renewal  
            of registration, the same number shall be assigned, provided  
            there is no lapse in the period of registration.  


          5)Requires the registrant's name, business address, telephone  
            number, registration number, expiration date of the  
            registration, and county of registration to appear in any  
            solicitation or advertisement, and on any papers or documents  
            prepared or used by the registrant, including, but not limited  
            to, contracts, letterhead, business cards, correspondence,  
            documents, forms, claims, petitions, checks, receipts, money  
            orders, and pleadings.  


          6)Requires every LDA or UDA who enters into a contract or  
            agreement with a client, prior to providing any services, to  
            provide the client with a written contract that meets certain  
            criteria and contains specified statements and disclaimers.  


          FISCAL EFFECT:  This bill is keyed fiscal and contains a  
          state-mandated local program.  


          COMMENTS:  


          1)Legal Document Assistants.  Current law regulates both LDA and  
            UDAs.  AB 1573 (Burton), Chapter 1011, Statutes of 1993,  
            established registration, bonding requirements, and further  
            regulation for UDAs in order to protect consumers from  








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            documented cases of scamming activity involving the  
            unauthorized practice of law in the field of eviction defense.  
             SB 1418 (Rosenthal), Chapter 1079, Statutes of 1998,  
            subsequently established registration, bonding requirements,  
            and regulation of LDAs.  


            LDAs provide legal document preparation and self-help services  
            to the public within defined parameters.  LDAs may not provide  
            any self-help service for compensation, unless registered in  
            the county of his or her principal place of business, and any  
            other county in which he or she serves clients.  The term  
            "self-help services" defines the activities that registered  
            LDAs are specifically authorized to perform, which include  
            completing legal documents in a ministerial manner and making  
            published legal documents available to a person who is  
            representing himself or herself in a legal matter.  


          2)Bill Summary.  This bill makes modest changes to the laws  
            governing the registration of LDAs.  


            Current law requires the county clerk, upon renewal of  
            registration, to assign a new registration number to the LDA  
            if the renewal is late or registration has for some reason  
            lapsed, even if the period of non-renewal is entirely  
            voluntary.  This bill would require the county clerk, upon  
            renewal of registration, to assign the same registration  
            number, including in instances where renewal is sought after a  
            lapse in registration.  


            Current law requires LDAs to disclose their registration  
            information, business address, telephone number, and  
            registration expiration date on all business materials, such  
            as sales brochures, forms, ink stamps, and checks.  This bill  
            repeals the requirement that a registered LDA must display the  
            expiration date of his or her registration on printed  








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            solicitation, papers, documents, and other printed materials,  
            with exception of the written contract for services that must  
            be provided to each client.  This bill preserves the  
            requirement to disclose the registration expiration date by  
            requiring it to appear on the LDA's website and other papers  
            and documents used by the LDA in electronic form, where  
            technology allows materials to be easily updated without  
            having to discard or reprint entire new batches of business  
            materials.  


            This bill is sponsored by the California Association of Legal  
            Document Assistants.  


          3)Author's Statement.  According to the author, "This bill  
            brings common-sense changes to the registration requirements  
            of LDAs to modernize the profession and bring it in line with  
            similar businesses and professions.  LDAs are key providers of  
            crucial legal services to underserved populations.  It is  
            important to make these changes to clear up unnecessary and  
            onerous requirements, while leaving crucial consumer  
            protections in place."  


          4)Arguments in Support.  Supporters argue that requiring the  
            issuance of a new registration number is unduly burdensome and  
            serves only to increase costs by forcing LDAs to reorder  
            stamps, stationery, business cards, and other promotional  
            materials to reflect the new number.  Supporters contend this  
            change would bring requirements more closely in line with  
            professions like engineers, lawyers, contractors, real estate  
            agents, accountants and tax preparers, who maintain their  
            original assigned registration numbers even when renewing  
            after a voluntary period of non-practice.  


          5)Arguments in Opposition.  None on file.  









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          6)Double-Referral.  This bill was heard in the Judiciary  
            Committee on April 21, 2015, where it passed with a 10-0 vote  
            to the Local Government Committee.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Association of Legal Document Assistants [SPONSOR]


          National Federation of Independent Business


          Responsive Law


          Individual and Legal Document Assistant letters (47)




          Opposition


          None on file




          Analysis Prepared by:Misa Lennox / L. GOV. / (916) 319-3958










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