BILL ANALYSIS Ó AB 285 Page 1 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 AB 285 Page 2 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 AB 285 Page 3 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 AB 285 Page 4 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 AB 285 Page 5 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. AB 285 Page 6 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 AB 285 Page 7