BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 285|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: AB 285
Author: Gallagher (R)
Amended: 7/2/15 in Senate
Vote: 21
SENATE JUDICIARY COMMITTEE: 7-0, 7/14/15
AYES: Jackson, Moorlach, Anderson, Hertzberg, Leno, Monning,
Wieckowski
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 76-0, 5/26/15 (Consent) - See last page for
vote
SUBJECT: Professions and vocations: registration
SOURCE: California Association of Legal Document Assistants
DIGEST: This bill, until January 1, 2021, repeals all
secondary county registration requirements for unlawful detainer
assistants (UDAs) and legal document assistants (LDAs),
establishes a 15-hour continuing legal education requirement for
UDA and LDA registration and renewal, provides additional oral
and written client disclosures, and provides that the venue for
any disputes involving a UDA or LDA would be in the county of
the client's primary residence. This bill also authorizes a
county clerk to assign the same registration number to a UDA,
LDA, process server, and professional copier renewing his or her
registration as long as the registration has not lapsed for
three or more years.
ANALYSIS:
AB 285
Page 2
Existing law:
1) Prescribes registration, business practices, client
disclosures, and education requirements for LDAs and UDAs.
2) Defines an LDA as a person, corporation, partnership,
association, or other entity that employs or contracts with
any person, unless otherwise exempt, who provides or assists
in providing, for compensation, any self-help service to
another person who is self-represented in a legal matter.
3) Prohibits LDAs from providing any kind of advice,
explanation, opinion, or recommendation to a client about
possible legal rights, remedies, defenses, options,
selection of forms, or strategies.
4) Defines a UDA to mean an individual who, for compensation,
renders assistance or advice in the prosecution or defense
of an unlawful detainer claim or action.
5) Requires UDAs and LDAs to be registered with the county
clerk in the county in which their principal place of
business is located and in any other county in which they
perform acts for which registration is required.
6) Requires an LDA or UDA applicant to provide specified
information, including his or her name, age, address,
telephone number, felony and misdemeanor convictions, and
liability in civil actions, and requires the county clerk to
retain the registration application for three years
following the expiration date of the application.
7) Requires LDA or UDA applicants to pay a $175 fee to the
county clerk at the time he or she files an application for
initial registration, including a primary or secondary
registration or renewal of registration, and requires the
LDA or UDA registration applicant to include with the
registration application a $25,000 bond (for individuals)
or, if the applicant is a partnership or corporation, a bond
for $25,000 for one to four LDAs or UDAs, $50,000 for five
to nine assistants, or $100,000 for 10 or more assistants.
8) Makes a certificate of registration effective for two
AB 285
Page 3
years, until the date the bond expires, or until the total
number of LDAs and UDAs employed by a partnership or
corporation exceeds the number allowed for the amount of the
bond in effect, whichever occurs first.
9) Requires the county clerk to maintain a register of LDAs,
and a register of UDAs, assign a unique number to each LDA,
or UDA, and issue an identification card to each one; upon
renewal of registration, the same number is assigned,
provided there is no lapse in the period of registration.
10) Requires a registered LDA or UDA to include his or her
name, business address, telephone number, registration
number, and county of registration 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.
11) Requires the registrant's name, business address,
telephone number, registration number, expiration date of
the registration, and county of registration to appear on
the written contract required to be provided to a client, as
well as on any Internet Web site maintained by the
registrant, and in any solicitation, advertisement,
document, or correspondence prepared or used by the
registrant in electronic form.
12) Requires every LDA or UDA who enters into a contract or
agreement with a client to provide services, prior to
providing any services, to provide the client with a written
contract containing specified provisions.
13) Specifies that the failure of an LDA or UDA to provide the
required contract information makes the contract or
agreement for services voidable at the option of the client;
upon the voiding of the contract, the LDA or UDA is required
to immediately return in full any fees paid by the client.
14) Provides the client the right to rescind the contract
within 24 hours of the signing of the contract, and the
client may cancel the contract by giving the LDA or the UDA
any written statement to the effect that the contract is
AB 285
Page 4
canceled.
15) Makes it unlawful for any LDA or UDA, in the first
in-person or telephonic solicitation of a prospective client
of legal document or unlawful detainer assistant services,
to enter into a contract or agreement for services or accept
any compensation unless the LDA or UDA states orally,
clearly, affirmatively and expressly, specified information.
16) Makes it unlawful, if the first contact between an LDA or
UDA and a prospective client is initiated by the prospective
client, for the LDA or UDA to enter into a contract or
agreement for services or accept any compensation unless the
LDA or UDA states orally, clearly, affirmatively and
expressly, during that first contact, and before offering
any contract or agreement for services to the prospective
client, specified information.
17) Prescribes registration and registration renewal
requirements for process servers, and defines a process
server as any natural person that makes, for compensation,
more than 10 services of process in California during a
calendar year, and any corporation that derives compensation
from service of process within California.
18) Prescribes registration and registration renewal
requirements for professional photocopiers, and defines a
professional photocopier to mean any person who, for
compensation, obtains or reproduces documents pertaining to
personal medical information, personal identifying
information, or business records.
19) Requires process servers and professional photocopiers to
register with the county clerk of the county in which they
reside or have a principal place of business.
20) Requires the county clerk to retain a certificate of
registration of a process server for a period of three years
following the expiration date of the certificate or retain
an application for registration of a professional
photocopier for three years following the expiration date of
the application.
This bill:
AB 285
Page 5
1) Repeals the requirement for an LDA or UDA to also register
in any other county in which he or she performs acts for
which registration is required (secondary registration),
make conforming changes in several code sections, and,
require the LDA or UDA to register in any county in which he
or she maintains a branch office.
2) Requires the registrant, to be eligible to renew
registration, to complete 15 hours of continuing legal
education courses, as specified, during the two-year period
preceding renewal.
3) Repeals the requirement that the application for
registration indicate whether the registration was primary
or secondary, and, instead, requires an application for
renewal of registration to include a statement by the
applicant that he or she has completed the 15-hour legal
education courses prescribed under this bill.
4) Requires a registered LDA or UDA to provide his or her
name, business address, telephone number, registration, and
county of registration in on any printed papers or documents
prepared or used by the registrant, but no longer requires
the expiration date of the registration to be provided in
any solicitation or advertisement, or on any printed papers
or documents.
5) Requires the venue for an action arising out of a dispute
between an LDA or UDA and his or her client to be the county
in which the client has his or her primary residence, and
requires a written contract entered into on or after January
1, 2016, between an LDA or UDA and a client to contain a
statement that the venue for an action arising out of a
dispute between an LDA or UDA and his or her client shall be
the county in which the client has his or her primary
residence.
6) Makes it unlawful for any LDA or UDA, in the first contact
with a prospective client, to enter into a contract or
agreement for services or accept any compensation unless the
LDA or UDA orally states to the prospective client specified
information, including the county in which the LDA or UDA is
registered and his or her registration number and expiration
AB 285
Page 6
date of the registration.
7) Makes it unlawful for an LDA or UDA, after he or she makes
the required oral consumer notification statements, to enter
into a contract or agreement for services or accept any
compensation unless the LDA or UDA also provides the client
with a written notice to consumer, and requires the LDA or
UDA to ask the prospective client to sign and date the
notice.
8) Requires, if the first contact between the LDA or UDA and
the client is not in person, the written notice to consumer
to be provided to the prospective client at the first in
person meeting or mailed to the prospective client before
entering into a contract or agreement for services or
accepting any compensation.
9) Requires the LDA's or UDA's notice to consumer and written
contract entered into between an LDA or UDA and a client to
include the contact information of the County Clerk's office
where the LDA or UDA is registered, including the address,
phone number, and Internet Web site, if available.
10) Makes the LDA or UDA responsible for translating the
notice to consumer into the language principally used in any
oral sales presentation or negotiation.
11) Makes the above provisions regarding LDAs and UDAs
effective only until January 1, 2021, unless a later enacted
statute is enacted before that date to delete or extend that
sunset.
12) Authorizes the county clerk to assign the same
registration number upon renewal of LDA, UDA, process
service, and professional photocopier registration, provided
the applicant is renewing registration in the same county in
which he or she was previously registered and there is no
lapse of three or more years in the period of registration.
Background
LDAs and UDAs provide, for compensation, self-help assistance to
members of the public who are representing themselves in legal
matters. LDAs and UDAs are prohibited from providing legal
AB 285
Page 7
advice or opinion, but they are permitted to prepare legal
documents; provide attorney-authored general information and
published legal documents; and file and serve documents at the
direction of the client.
LDAs and UDAs are subject to comprehensive registration,
bonding, and business practice requirements to ensure that
clients are protected from unscrupulous legal document
preparers. LDAs and UDAs are required to register in the county
of their primary place of business (primary registration) and in
each additional county in which they provide services (secondary
registration). County clerks are responsible for reviewing the
applications of and registering LDAs and UDAs. Among their
duties, clerks are responsible for ensuring that registrants
receive identification cards and comply with the prerequisites
for registration. Clerks are also responsible for maintaining a
register, assigning a number, and issuing identification cards
to process servers (individuals who serve legal documents) and
professional photocopiers (services that receive or copy
personal medical information, personal identifying information,
or business records, including legal documents).
This bill repeals the secondary county registration requirements
of LDAs and UDAs and requires additional education and client
disclosures. This bill also authorizes county clerks to assign
the same registration number to LDAs, UDAs, process servers, and
professional photocopiers if the registration has not lapsed for
three or more years.
Comments
The author writes:
AB 285 brings common-sense changes to the registration
requirements of Legal Document Assistants to modernize the
profession and bring it in line with similar businesses and
professions. Legal Document Assistants 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.
Prior Legislation
AB 285
Page 8
AB 620 (Perez, Chapter 458, Statutes of 2009) provided county
clerks with flexibility to issue identification cards that take
advantage of new security features, and clarified rules
pertaining to identification cards for corporations and
partnerships of legal document assistants, unlawful detainer
assistants, process servers, and professional photocopiers. It
also required that applications for professional photocopiers be
signed under penalty of perjury, as is already required for
related professions.
AB 935 (Committee on Business & Professions, Chapter 402,
Statutes of 2007), among other things, established a three-year
retention period for applications and certificates of
registration of process servers, professional copiers, unlawful
detainer assistants, and legal document assistants filed with
the county clerk.
AB 1698 (Committee on Judiciary, Chapter 1018, Statutes of 2002)
repealed the legal document assistant pilot program regulations
and replaced it with a permanent and more comprehensive set of
regulations.
SB 1418 (Rosenthal, Chapter 1079, Statutes of 1998) established
a four-year pilot project regulating the business and
registration of legal document assistants, with a sunset date of
January 1, 2003.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
SUPPORT: (Verified8/17/15)
California Association of Legal Document Assistants (source)
A Legal Bridge
A People's Choice
Affordable Wills & Trusts
ASAP Legal, Inc.
California Document Preparers
Judicial Self-Help Center
Quality Document Preparation Center
National Federation of Independent Business
Responsive Law Center
AB 285
Page 9
Siskiyou Legal Document Services
33 Individuals
OPPOSITION: (Verified8/17/15)
None received
ASSEMBLY FLOOR: 76-0, 5/26/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bonilla,
Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau,
Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd,
Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia,
Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray,
Grove, Hadley, Roger Hernández, Holden, Irwin, Jones,
Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,
Maienschein, Mayes, McCarty, Medina, Melendez, Mullin,
Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,
Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Bloom, Chávez, Harper, Mathis
Prepared by:Tara Welch / JUD. / (916) 651-4113
8/18/15 17:19:42
**** END ****