BILL ANALYSIS Ó
AB 285
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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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