Amended in Assembly May 27, 2016

Amended in Assembly April 18, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2878


Introduced by Committee on Judiciary (Assembly Members Mark Stone (Chair), Alejo, Chau, Chiu, Cristina Garcia, and Holden)

February 25, 2016


An act to amendbegin delete Sectionend deletebegin insert Sections 6001, 6011, 6015, 6016, 6019, 6021, 6022, 6026.7, 6060.2, 6060.25, 6086.5, andend insert 6140 of,begin insert to add Section 6140.56,end insert and to repealbegin delete Section 6008.5end deletebegin insert Sections 6008.5, 6009.7, 6012, 6013.2, 6018, and 6026.5end insert of, the Business and Professions Code, relating tobegin delete attorneys.end deletebegin insert the State Bar.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2878, as amended, Committee on Judiciary. Attorneys: begin deleteannual membership fees. end deletebegin insertState Bar: board of trustees.end insert

The State Bar Act provides for the licensure and regulation of attorneys by the State Bar of California, a public corporation governed by a board of trustees.begin delete Existing law,end deletebegin insert That act requires 6 members of the 19-member board to be attorneys elected from State Bar Districts. That act provides that the State Bar is subject to the Bagley-Keene Open Meeting Act and the California Public Records Act, as specified. That act,end insert until January 1, 2017, requires the board to charge an annual membership fee for active members of up to $315 for 2016. Existing law prohibits the Legislature, when the board of trustees places a charge upon or otherwise makes available all or any portion of the income or revenue from membership fees for the payment of security of an obligation of the State Bar and so long as any obligation remains unpaid, from reducing the maximum membership fee below the maximum in effect at the time the obligation is created or incurred and provides that this provision constitutes a covenant to the holder of such an obligation.begin insert That act establishes the State Bar Court to act in the place of the board of trustees in the determination of disciplinary proceedings, as specified. That act authorizes the State Bar to raise additional revenue by any lawful means, including, but not limited to, the creation of foundations or not-for-profit corporations. That act requires the board to establish and administer a Client Security Fund to relieve or mitigate pecuniary losses caused by dishonest conduct of active members of the State Bar, as specified.end insert

begin insert

This bill would provide that the board of trustees consist of no more than 19 members and no fewer than 13 members and would require the board to transition to a 13-member board, as specified. The bill would remove from the board attorney members elected from State Bar Districts and would make conforming changes. The bill would require each member of the board appointed after December 31, 2016, to have demonstrated educational or experience expertise, or both, in one of 5 specified areas, including public finance. This bill would provide that access to records of the State Bar Court is subject to the rules and laws applicable to the judiciary instead of the California Public Records Act and would exempt the State Bar Court from the Bagley-Keene Open Meeting Act.

end insert

Thisbegin delete bill would,end deletebegin insert bill,end insert until January 1, 2018,begin insert wouldend insert require the board to charge an annual membership fee inbegin delete the sameend deletebegin insert a specifiedend insert amount for 2017. The bill would repeal thebegin delete aboveend delete provision prohibiting the Legislature from reducing the maximum membership fee andbegin insert the provision authorizing the State Bar to raise additional revenue by any lawful means. The bill would require the State Bar to conduct a thorough analysis of the Client Security Fund and to submit a report to the Legislature on its analysis of that fund by March 15, 2017, as specified. The billend insert would state various findings and declarations of the Legislature.

begin insert

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

end insert
begin insert

This bill would make legislative findings to that effect.

end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) The protection of the public is required, by statute, to be the
4highest priority of the State Bar of California and must be the
5paramount focus of the State Bar, its employees, and, most
6importantly, its board of trustees. All other duties and activities of
7the State Bar are ancillary to its regulatory oversight of the state’s
8more than 250,000 attorneys, over 185,000 of whom are active
9members.

10(b) Throughout its history, the State Bar has been the subject
11of substantial controversies, including allegations of serious fiscal
12and management improprieties, and most recently failure to
13properly protect the public against the unauthorized practice of
14law, including allowing hundreds of complaints to languish in a
15drawer.

16(c) In May 2015, the California State Auditor released its
17biannual performance audit of the State Bar, reviewing the State
18Bar’s backlog of discipline cases and its recent $75,000,000
19purchase and renovation of a building in Los Angeles at three times
20the cost originally estimated and requiring a loan against the Public
21Protection Fund, which is designed to be an emergency fund to
22protect the public in the event of a financial emergency. The audit
23uncovered significant, questionable decisions made by the State
24Bar in the handling of both matters, including that the State Bar
25had not fully or consistently reported its backlog of discipline cases
26and that, in order to reduce its backlog of discipline cases, the State
27Bar made questionable choices, potentially causing “significant
28risk to the public.”

29(d) Most recently and without consultation with the Legislature,
30the State Bar chose to replace the loan on the Los Angeles building,
31along with a brand new loan for updating its San Francisco
32building, with a securitization on future members dues, potentially
33tying the hands of the Legislature in setting future dues amounts.

34(e) As a result of the troubling findings of the audit, the
35Legislature, as part of the 2015 State Bar dues legislation, imposed
P4    1important new preliminary reforms on the State Bar. First, the
2Legislature mandated that the State Bar be subject to both the
3California Public Records Act and the Bagley-Keene Open
4Meetings Act. These good government reforms help ensure the
5integrity, transparency, and accountability of the State Bar. Second,
6the Legislature directed the California State Auditor to conduct a
7full financial audit of the State Bar, which is due on May 15, 2016.
8Finally, the State Bar must develop a workforce plan for its attorney
9discipline system and a spending plan to determine the level for
10dues to recommend to the Legislature, which are both due on May
1115, 2016. These reports should help inform the Legislature
12regarding the appropriate actions to take in its oversight
13responsibility of the State Bar and its own determination of the
14proper dues amount.

15(f) In 2011, the Legislature directed the State Bar to establish
16a Governance in the Public Interest Task Force to make
17recommendations to the Governor, the Supreme Court, and the
18Legislature every three years, beginning May 15, 2014, for, among
19other things, enhancing the protection of the public and ensuring
20that protection of the public is the highest priority in the licensing,
21regulation, and discipline of attorneys, to be reviewed by the
22Assembly and Senate Committees on Judiciary in their regular
23consideration of the annual State Bar dues measure. That first
24report is now two years overdue and, although the Governance in
25the Public Interest Task Force finally began holding meetings this
26year, it appears that this already long overdue report will not be
27completed during this legislative session.

28(g) It is the intent of the Legislature, in fulfilling its important
29oversight responsibility over the State Bar and the proper amount
30State Bar members must pay in annual dues, that this bill serve as
31the vehicle to implement possible recommendations for
32substantially improving the operations, effectiveness, and efficiency
33of the State Bar based on the 2016 California State Auditor’s audit
34of the State Bar, along with the State Bar’s discipline workforce
35and spending plans and any draft Governance Task Force report
36or other information, in order to ensure that the dues are the
37appropriate amount, that the State Bar becomes more accountable
38to the public, and that public protection is, and remains, the State
39Bar’s top priority.

P5    1begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 6001 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
2amended to read:end insert

3

6001.  

The State Bar of California is a public corporation. It is
4hereinafter designated as the State Bar.

5The State Bar has perpetual succession and a seal and it may sue
6and be sued. It may, for the purpose of carrying into effect and
7promoting its objectives:

8(a) Make contracts.

9(b) Borrow money, contract debts, issue bonds, notes and
10debentures and secure the payment or performance of its
11obligations.

12(c) Own, hold, use, manage and deal in and with real and
13personal property.

14(d) Construct, alter, maintain and repair buildings and other
15improvements to real property.

16(e) Purchase, lease, obtain options upon, acquire by gift, bequest,
17devise or otherwise, any real or personal property or any interest
18therein.

19(f) Sell, lease, exchange, convey, transfer, assign, encumber,
20pledge, dispose of any of its real or personal property or any
21interest therein, including without limitation all or any portion of
22its income or revenues from membership fees paid or payable by
23members.

24(g) Do all other acts incidental to the foregoing or necessary or
25expedient for the administration of its affairs and the attainment
26of its purposes.

27Pursuant to those powers enumerated in subdivisions (a) to (g),
28inclusive, it is recognized that the State Bar has authority to raise
29revenue in addition to that provided for in Section 6140 and other
30 statutory provisions.begin delete The State Bar is empowered to raise that
31additional revenue by any lawful means, including, but not limited
32to, the creation of foundations or not-for-profit corporations.end delete

33The State Bar shall conspicuously publicize to its members in
34the annual dues statement and other appropriate communications,
35including its Web site and electronic communications, that its
36members have the right to limit the sale or disclosure of member
37information not reasonably related to regulatory purposes. In those
38communications the State Bar shall note the location of the State
39Bar’s privacy policy, and shall also note the simple procedure by
40which a member may exercise his or her right to prohibit or restrict,
P6    1at the member’s option, the sale or disclosure of member
2information not reasonably related to regulatory purposes. On or
3before May 1, 2005, the State Bar shall report to the Assembly
4and Senate Committees on Judiciary regarding the procedures that
5it has in place to ensure that members can appropriately limit the
6use of their member information not reasonably related to
7regulatory purposes, and the number of members choosing to
8utilize these procedures.

9No law of this state restricting, or prescribing a mode of
10procedure for the exercise of powers of state public bodies or state
11agencies, or classes thereof, including, but not by way of limitation,
12the provisions contained in Division 3 (commencing with Section
1311000), Division 4 (commencing with Section 16100), and Part 1
14(commencing with Section 18000) and Part 2 (commencing with
15Section 18500) of Division 5, of Title 2 of the Government Code,
16shall be applicable to the State Bar, unless the Legislature expressly
17so declares. Notwithstanding the foregoing or any other law,
18pursuant to Sections 6026.7 and 6026.11, the State Bar is subject
19to the California Public Records Act (Chapter 3.5 (commencing
20with Section 6250) of Division 7 of Title 1 of the Government
21Code) and, commencing April 1, 2016, the Bagley-Keene Open
22Meeting Act (Article 9 (commencing with Section 11120) of
23Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
24Code).

25

begin deleteSEC. 2.end delete
26
begin insertSEC. 3.end insert  

Section 6008.5 of the Business and Professions Code
27 is repealed.

28begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 6009.7 of the end insertbegin insertBusiness and Professions Codeend insert
29
begin insert is repealed.end insert

begin delete
30

6009.7.  

(a) (1) The State Bar shall determine the manner by
31which to reduce the board of trustees from 23 members to 19
32members, as described in Section 6011, pursuant to the election
33and appointment processes specified in Sections 6012, 6013.1,
346013.2, and 6013.3.

35(2) The State Bar shall develop a plan for implementing the
36transition to a 19-member board by January 31, 2012.

37(3) By January 31, 2012, the State Bar shall submit a written
38report to the Senate and Assembly Committees on Judiciary that
39includes, but is not limited to, the implementation plan described
40in paragraph (2).

P7    1(b) The State Bar shall complete the transition to a 19-member
2board no later than October 31, 2014.

3(c) The State Bar shall not change, reduce, shorten, lengthen,
4or abolish the terms of board members commencing prior to
5December 31, 2011, or force any board member to resign in order
6to institute a 19-member board pursuant to this section.

7(d) The State Bar shall report annually to the Senate and
8Assembly Committees on Judiciary on its progress toward
9implementing the transition to a 19-member board.

end delete
10begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 6011 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
11amended to read:end insert

12

6011.  

(a) The board shall consist of no more thanbegin delete 23end deletebegin insert 19end insert
13 members and nobegin delete lessend deletebegin insert fewerend insert thanbegin delete 19end deletebegin insert 13end insert members.

14(b) It is the intent of the Legislature that the board consist of no
15more thanbegin delete 23end deletebegin insert 19end insert members and nobegin delete lessend deletebegin insert fewerend insert thanbegin delete 19end deletebegin insert 13end insert members
16during the period of transition from abegin delete 23-memberend deletebegin insert 19-memberend insert board
17to abegin delete 19-member board, as described in Section 6009.7.end deletebegin insert 13-member
18board.end insert
It is the intent of the Legislature that thebegin delete board, pursuant
19to the plan developed by the State Bar as described in Section
206009.7, graduallyend delete
begin insert boardend insert decrease its size without shortening,
21lengthening, or abolishing terms commencing prior to December
2231,begin delete 2011,end deletebegin insert 2016,end insert with the ultimate goal of instituting abegin delete 19-memberend delete
23begin insert 13-memberend insert board no later than October 31, begin delete 2014, pursuant to
24Section 6009.7.end delete
begin insert 2019. It is the intent of the Legislature that this
25transition occur by the expiration of the terms of the elected
26members who are serving on the board as of December 31, 2016.end insert

begin insert

27
(c) Each member appointed after December 31, 2016, shall
28have demonstrated educational or experience expertise, or both,
29in at least one of the following:

end insert
begin insert

30
(1) Public finance.

end insert
begin insert

31
(2) Public administration.

end insert
begin insert

32
(3) Business or financial management.

end insert
begin insert

33
(4) State government, particularly prior regulatory experience.

end insert
begin insert

34
(5) Legal ethics.

end insert
35begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 6012 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
36repealed.end insert

begin delete
37

6012.  

(a) State Bar Districts, as they existed on December 31,
382011, pursuant to Section 6012.5, as added by Chapter 1223 of
39the Statutes of 1989, shall cease, pursuant to the act that added this
40section, for purposes of the election of attorney members of the
P8    1board. However, attorney members who were elected in 2009,
22010, or 2011 to serve for a three-year term commencing at the
3conclusion of the annual meeting held in those years shall be
4eligible to serve their full three-year terms.

5(b) Commencing on January 1, 2012, State Bar Districts shall
6be based on the six court of appeal districts as constituted pursuant
7to Section 69100 of the Government Code, as they existed on
8December 31, 2011. The board shall provide for the election of
9six attorney members of the board from these six State Bar Districts
10as specified in Section 6013.2.

end delete
11begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 6013.2 of the end insertbegin insertBusiness and Professions Codeend insert
12
begin insert is repealed.end insert

begin delete
13

6013.2.  

(a) Six members of the board shall be attorneys elected
14from the State Bar Districts created by the board pursuant to
15Section 6012.

16(b) An attorney member elected pursuant to this section shall
17serve for a term of three years. An elected attorney member may
18run for reelection, but may be reelected to only serve one additional
19term.

end delete
20begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 6015 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
21amended to read:end insert

22

6015.  

No person is eligible for attorney membership on the
23board unlessbegin delete bothend deletebegin insert allend insert of the following conditions are satisfied:

24(a) He or she is an active member of the State Bar.

25(b) Either:

26(1) begin deleteIf end deletebegin insertPrior to October 31, 2019, if end insertelected, he or she maintains
27his or her principal office for the practice of law within the State
28Bar district from which he or she is elected.

29(2) If appointed by the Supreme Court or the Legislature, he or
30she maintains his or her principal office for the practice of law
31within the State of California.

begin insert

32
(c) If newly appointed after December 31, 2016, he or she
33satisfies the requirements of subdivision (c) of Section 6011.

end insert
34begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 6016 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
35amended to read:end insert

36

6016.  

The term of office of each attorney member of the board
37shall commence at the conclusion of the annual meeting next
38succeeding his or her election or appointment, and he or she shall
39hold office until his or her successor is elected or appointed and
40qualified. For the purposes of this section, the time intervening
P9    1between any two successive annual meetings shall be deemed to
2be one year.

begin delete

3Except as specified in Section 6013.1, vacancies in the board of
4trustees shall be filled by the board by special election or by
5appointment for the unexpired term.

end delete

6The board of trustees may provide by rule for an interim board
7to act in the place and stead of the board when because of vacancies
8during terms of office there is less than a quorum of the board.

9begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 6018 of the end insertbegin insertBusiness and Professions Codeend insert
10
begin insert is repealed.end insert

begin delete
11

6018.  

Nominations of elected members of the board shall be
12by petition signed by at least 20 persons entitled to vote for such
13nominees.

14Only active members of the State Bar maintaining their principal
15offices for the practice of the law in the respective State Bar
16districts shall be entitled to vote for the member or members of
17the board therefrom.

end delete
18begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 6019 of the end insertbegin insertBusiness and Professions Codeend insert
19
begin insert is amended to read:end insert

20

6019.  

Each place upon the board for which a member is to be
21begin delete elected orend delete appointed shall for the purposes of thebegin delete election orend delete
22 appointment be deemed a separate office.

begin delete

23If only one member seeks election to an office, the member is
24deemed elected. If two or more members seek election to the same
25office, the election shall be by ballot. The ballots shall be
26distributed to those entitled to vote at least twenty days prior to
27the date of canvassing the ballots and shall be returned to a site or
28sites designated by the State Bar, where they shall be canvassed
29at least five days prior to the ensuing annual meeting. At the annual
30meeting, the count shall be certified and the result officially
31declared.

end delete
begin delete

32In all other respects the elections shall be as the board may by
33rule direct.

end delete
34begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 6021 of the end insertbegin insertBusiness and Professions Codeend insert
35
begin insert is amended to read:end insert

36

6021.  

(a) (1) Within the period of 90 days next preceding the
37annual meeting, the board, at a meeting called for that purpose,
38shall elect the president, vice president, and treasurer for the
39ensuing year. The president, the vice president, and the treasurer
40shall be elected from among all members of the board.

P10   1(2) The newly elected president, vice president, and treasurer
2shall assume the duties of their respective offices at the conclusion
3of the annual meeting following their election.

4(b) The term of the board president shall be one year, except
5that he or she may be reelected to a second one-year term as the
6board president.

7(c) Notwithstanding the provisions ofbegin delete Sections 6009.7 andend delete
8begin insert Sectionend insert 6011 regarding abegin delete 19-memberend deletebegin insert 13-memberend insert board, if the
9president is elected from among those members of the board whose
10terms on the board expirebegin insert byend insert that year and has not beenbegin delete reelected
11orend delete
reappointed to another term under Sectionbegin delete 6013.1, 6013.2,
126013.3,end delete
begin insert 6013.1end insert or 6013.5, the president shall serve as abegin delete 20thend deletebegin insert 14thend insert
13 member of the board during his or her one-year term, and he or
14she may vote.

15begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 6022 of the end insertbegin insertBusiness and Professions Codeend insert
16
begin insert is amended to read:end insert

17

6022.  

Thebegin delete secretaryend deletebegin insert officers of the State Barend insert shall be selected
18annually by the board and need not be a member of the State Bar.

19begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 6026.5 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
20as added by Section 3 of Chapter 537 of the Statutes of 2015, is
21repealed.end insert

begin delete
22

6026.5.  

(a) Pursuant to Section 6026.7, every meeting of the
23board shall be open to the public except those meetings, or portions
24thereof, relating to:

25(1) Consultation with counsel concerning pending or prospective
26litigation.

27(2) Involuntary enrollment of active members as inactive
28members due to mental infirmity or illness or addiction to
29intoxicants or drugs.

30(3) The qualifications of judicial appointees, nominees, or
31candidates.

32(4) The appointment, employment, or dismissal of an employee,
33consultant, or officer of the State Bar or to hear complaints or
34charges brought against such employee, consultant, or officer,
35unless such person requests a public hearing.

36(5) Disciplinary investigations and proceedings, including
37resignations with disciplinary investigations or proceedings
38pending, and reinstatement proceedings.

P11   1(6) Appeals to the board from decisions of the Board of Legal
2Specialization refusing to certify or recertify an applicant or
3suspending or revoking a specialist’s certificate.

4(7) Appointments to or removals from committees, boards, or
5other entities.

6(8) Joint meetings with agencies provided in Article VI of the
7California Constitution.

8(b) This section shall become operative on April 1, 2016.

end delete
9begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 6026.7 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
10as added by Section 5 of Chapter 537 of the Statutes of 2015, is
11amended to read:end insert

12

6026.7.  

(a) The State Bar is subject to the Bagley-Keene Open
13Meeting Act (Article 9 (commencing with Section 11120) of
14Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
15Code) and all meetings of the State Bar are subject to the
16Bagley-Keene Open Meeting Act.

17(b) Notwithstanding any other law, the Bagley-Keene Open
18Meeting Act shall not apply to the Judicial Nominees Evaluation
19begin delete Commission or end deletebegin insert Commission,end insert the Committee of Barbegin delete Examiners.end delete
20
begin insert Examiners, or the State Bar Court.end insert

begin delete

21(c) This section shall become operative on April 1, 2016.

end delete
begin insert

22
(c) In addition to the grounds authorized in the Bagley-Keene
23Open Meeting Act, a closed session may be held for those meetings,
24or portions thereof, relating to both of the following:

end insert
begin insert

25
(1) Appeals to the board from decisions of the Board of Legal
26Specialization refusing to certify or recertify an applicant or
27suspending or revoking a specialist’s certificate.

end insert
begin insert

28
(2) The preparation, approval, grading, or administration of
29examinations for certification of a specialist.

end insert
30begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 6060.2 of the end insertbegin insertBusiness and Professions Codeend insert
31
begin insert is amended to read:end insert

32

6060.2.  

begin insert(a)end insertbegin insertend insertAll investigations or proceedings conducted by
33the State Bar concerning the moral character of an applicant shall
34be confidential and shall not be disclosed pursuant to any state
35law, including, but not limited to, the California Public Records
36Act (Chapter 3.5 (commencing with Section 6250) of Division 7
37of Title 1 of the Government Code) unless the applicant, in writing,
38waives the confidentiality.begin delete However, theend delete

P12   1begin insert(b)end insertbegin insertend insertbegin insertNotwithstanding subdivision (a), theend insert records of the
2proceeding may bebegin delete subjectend deletebegin insert disclosed in responseend insert tobegin delete lawfullyend deletebegin insert either
3of the following:end insert

4begin insert(1)end insertbegin insertend insertbegin insertA lawfullyend insert issuedbegin delete subpoenas.end deletebegin insert subpoena.end insert

begin insert

5
(2) A written request from a government agency responsible
6for either the enforcement of civil or criminal laws or the
7professional licensing of individuals that is conducting an
8investigation about the applicant.

end insert
9begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 6060.25 of the end insertbegin insertBusiness and Professions Codeend insert
10
begin insert is amended to read:end insert

11

6060.25.  

begin insert(a)end insertbegin insertend insertNotwithstanding any other law, any identifying
12information submitted by an applicant to the State Bar for
13admission and a license to practice law and all State Bar admission
14records, including, but not limited to, bar examination scores, law
15school grade point average (GPA), undergraduate GPA, Law
16School Admission Test scores, race or ethnicity, and any
17information contained within the State Bar Admissions database
18or any file or other data created by the State Bar with information
19submitted by the applicant that may identify an individual
20applicant,begin insert other than information described in subdivision (b),end insert
21 shall be confidential and shall not be disclosed pursuant to any
22state law, including, but not limited to, the California Public
23Records Act (Chapter 3.5 (commencing with Section 6250) of
24Division 7 of Title 1 of the Government Code).

begin insert

25
(b) This section does not prohibit the disclosure of any of the
26following:

end insert
begin insert

27
(1) The names of applicants who have passed any examination
28administered, given, or prescribed by the Committee of Bar
29Examiners.

end insert
begin insert

30
(2) Information that is provided at the request of an applicant
31to another jurisdiction where the applicant is seeking admission
32to the practice of law.

end insert
begin insert

33
(3) Information provided to a law school that is necessary for
34the purpose of the law school’s compliance with accreditation or
35regulatory requirements.

end insert
begin insert

36
(4) Information provided to the National Conference of Bar
37Examiners or a successor nonprofit organization in connection to
38the State Bar’s administration of any examination.

end insert
begin insert

39
(c) Disclosure of any of the information in paragraphs (2) to
40(4), inclusive, of subdivision (b) shall not constitute a waiver under
P13   1Section 6254.5 of the Government Code of the exemption from
2disclosure provided for in subdivision (a) of this section.

end insert
3begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 6086.5 of the end insertbegin insertBusiness and Professions Codeend insert
4
begin insert is amended to read:end insert

5

6086.5.  

The board of trustees shall establish a State Bar Court,
6to act in its place and stead in the determination of disciplinary
7and reinstatement proceedings and proceedings pursuant to
8subdivisions (b) and (c) of Section 6007 to the extent provided by
9rules adopted by the board of trustees pursuant to this chapter. In
10these proceedings the State Bar Court may exercise the powers
11and authority vested in the board of trustees by this chapter,
12including those powers and that authority vested in committees
13of, or established by, the board, except as limited by rules of the
14board of trustees within the scope of this chapter.

begin insert

15
Access to records of the State Bar Court shall be governed by
16court rules and laws applicable to records of the judiciary and
17not the California Public Records Act (Chapter 3.5 (commencing
18with Section 6250) of Division 7 of Title 1 of the Government
19Code).

end insert

20For the purposes of Sections 6007, 6043, 6049, 6049.2, 6050,
216051, 6052, 6077 (excluding the first sentence), 6078, 6080, 6081,
22and 6082, “board” includes the State Bar Court.

23Nothing in this section shall authorize the State Bar Court to
24adopt rules of professional conduct or rules of procedure.

25The Executive Committee of the State Bar Court may adopt
26rules of practice for the conduct of all proceedings within its
27jurisdiction. These rules may not conflict with the rules of
28procedure adopted by the board, unless approved by the Supreme
29Court.

30

begin deleteSEC. 3.end delete
31
begin insertSEC. 19.end insert  

Section 6140 of the Business and Professions Code
32 is amended to read:

33

6140.  

(a) The board shall fix the annual membership fee for
34active members for 2017 at a sum not exceeding three hundred
35fifteen dollars ($315).

36(b) The annual membership fee for active members is payable
37on or before the first day of February of each year. If the board
38finds it appropriate and feasible, it may provide by rule for payment
39of fees on an installment basis with interest, by credit card, or other
40means, and may charge members choosing any alternative method
P14   1of payment an additional fee to defray costs incurred by that
2election.

3(c) This section shall remain in effect only until January 1, 2018,
4and, as of that date, is repealed, unless a later enacted statute, that
5is enacted before January 1, 2018, deletes or extends that date.

6begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 6140.56 is added to the end insertbegin insertBusiness and
7Professions Code
end insert
begin insert, to read:end insert

begin insert
8

begin insert6140.56.end insert  

(a) To ensure that the Client Security Fund can
9adequately protect the public and relieve or mitigate financial
10losses caused by the dishonest conduct of members of the State
11Bar by paying claims in a timely manner, the State Bar shall
12conduct a thorough analysis of the Client Security Fund, including
13a determination of the ongoing needs of the fund to satisfy claims
14in a timely manner, a review of additional efforts that can be taken
15to increase the collection of payments from the responsible
16attorneys, and a review of other State Bar expenditures to
17determine whether other expenditures that do not directly impact
18the State Bar’s public protection functions, including, but not
19limited to, executive salaries and benefits, can be reduced or
20redirected in order to better fund the Client Security Fund through
21existing revenue, and, whether, after all other options have been
22fully and thoroughly exhausted, an increase in membership dues
23is necessary to ensure that the Client Security Fund can timely
24pay claims.

25
(b) The State Bar shall submit a report on its analysis of the
26Client Security Fund to the Legislature by March 15, 2017, so that
27the plans can be reviewed in conjunction with the bill that would
28authorize the imposition of the State Bar’s membership fee. The
29report shall be submitted in compliance with Section 9795 of the
30Government Code.

31
(c) For purposes of this section, “timely manner” means within
3212 months from the time the claim is received by the State Bar.

end insert
33begin insert

begin insertSEC. 21.end insert  

end insert
begin insert

The Legislature finds and declares that Sections 17
34and 20 of this act, which amend Sections 6026.7 and 6086.5 of the
35Business and Professions Code, impose a limitation on the public’s
36right of access to the meetings of public bodies or the writings of
37public officials and agencies within the meaning of Section 3 of
38Article I of the California Constitution. Pursuant to that
39constitutional provision, the Legislature makes the following
P15   1findings to demonstrate the interest protected by this limitation
2and the need for protecting that interest:

end insert
begin insert

3
In order to protect the decisionmaking process of the State Bar
4Court in a manner that is similar to the deliberative functions of
5other courts and in order to ensure that personal or sensitive
6information regarding discipline by the State Bar Court is kept
7confidential, including for persons participating in discussions
8and offers of settlement pursuant to arbitration or mediation, it is
9necessary to exempt the State Bar Court from the provision of the
10Bagley-Keene Open Meeting Act and the California Public Records
11Act.

end insert


O

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