Amended in Senate August 19, 2016

Amended in Assembly June 2, 2016

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 amend Sections 6001,begin insert 6001.1,end insert 6011,begin insert 6013.1,end insert 6013.3, 6013.5, 6015, 6016, 6019, 6021, 6022, 6026.7,begin insert 6029,end insert 6030, 6060.2, 6060.25, 6086.5,begin delete and 6140end deletebegin insert 6140, and 6145end insert of,begin delete to amend, repeal, and add Section 6145 of,end delete to add Sectionsbegin delete 6001.3, 6134,end deletebegin insert 6134end insert and 6140.56 to, to add and repeal Section 6075.6 of, and to repeal Sections 6008.5, 6009.7, 6012, 6013.2, 6018, and 6026.5 of, the Business and Professions Code, relating to the State Bar.

LEGISLATIVE COUNSEL’S DIGEST

AB 2878, as amended, Committee on Judiciary. Attorneys: State Bar: board of trustees.

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. That act requires 6 members of the 19-member board to be attorneys elected from State Bar Districts.begin insert That act requires protection of the public to be the highest priority for the State Bar and the board of trustees in exercising their licensing, regulatory, and disciplinary functions and requires protection of the public to be paramount whenever the protection of the public is inconsistent with any other interest sought to be promoted.end insert 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, until January 1, 2017, requires the board to charge an annual membership fee for active members of up to $315 for 2016. The act requires the board of trustees to elect or select the president, vice president, and treasurer of the State Bar, as specified. 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. The act requires the board of trustees to contract with the California State Auditor’s Office to conduct a performance audit of the State Bar’s operations, as specified. 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.begin insert That act requires the board to appoint a lawyer admitted to practice in California to serve as end insertbegin insertchief trial counsel, as specified.end insert 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.

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 wouldbegin delete requireend deletebegin insert provide thatend insert eachbegin delete member ofend deletebegin insert appointing body, when making appointments toend insert the boardbegin delete appointedend delete after December 31, 2016,begin delete toend deletebegin insert should consider appointing members whoend insert havebegin delete demonstrated educational or experience expertise,end deletebegin insert education or experience,end insert or both, in one ofbegin delete 5end deletebegin insert 6end insert specified areas, including public finance. The bill would require that abegin delete minimum of 7end deletebegin insert maximum of 6end insert members of the board be public members, as appointed by specified entities, and wouldbegin delete provide that no motion of the board can be approved unless a majority of the public members approve the motion.end deletebegin insert require members of the board to serve a term of 4 years.end insert The bill would require the Supreme Court to select frombegin delete its appointed members a president and vice president of the State Barend deletebegin insert the members of the board a chair and vice chairend insert instead of the board of trustees electing a president and vice president.begin insert The bill would require members of the executive committee of the board to include at least one member of the board appointed by each appointing authority.end insert

begin insert

This bill would provide that protection of the public requires that professional legal services are provided in a competent, accessible, and ethical manner, and that the judicial system functions in a fair, impartial, and just manner. The bill would define protection of the public, for purposes of staffing and resource allocations, as specified core functions of the State Bar, including, administration of the bar admissions and law school accreditation processes. The bill would provide that any decision of the board raising antitrust concerns is subject to review, modification, veto, or other appropriate action by the California Supreme Court.

end insert
begin insert

The bill would require the Office of Chief Trial Counsel to open a nonattorney complaint against a person when the office becomes aware of an allegation that a person not licensed to practice law in California has practiced or held himself or herself out as practicing law or entitled to practice law in the state and would require the complaint to be evaluated and processed, as specified.

end insert
begin delete

This bill would create the California State Bar Governance Commission and would provide that it consists of 9 members to be appointed as specified. The bill would require the commission to evaluate all issues of governance of the State Bar, including, but not limited to, a full review of other states with attorney regulatory structures that are different than the State Bar, in order to recommend the best governance structure for the State Bar and to ensure that protection of the public is the highest priority of the State Bar in its regulatory duties. The bill would require the commission to provide a report to the Governor, the Chief Justice of the California Supreme Court, and the Senate and Assembly Committees on Judiciary by April 30, 2017. The bill would repeal these provisions as of January 1, 2018.

end delete

This bill would require thebegin delete Chief Justice of the California Supreme Courtend deletebegin insert Attorney Generalend insert to appoint a State Bar enforcement program monitor prior to March 31, 2017, and would require the program enforcement monitor to evaluate the disciplinary system and procedures of the State Bar, as specified. The bill would require the program enforcement monitor to submit an initial report no later than October 1, 2019, and to issue a final report before March 31, 2020. The bill would make these provisions inoperative on March 31, 2020, and would repeal the provision as of January 1, 2021.

The bill would require the board of trustees tobegin delete contract with the California State Auditor’s Officeend deletebegin insert engage the services of an independent national or regional public accounting firm with at least 5 years of experience in governmental auditingend insert for an audit of its revenues, expenditures, reserves, andbegin delete itsend delete financial statements for each fiscal year and would require the California State Auditor, for the performance audit due in January 2017, to review all of the State Bar’s expenses, including, but not limited to, executive salaries.begin insert The bill would also require California State Auditor to conduct a performance audit evaluating the State Bar’s progress in certain areas, including correcting any issues raised in prior California State Auditor audits, and would require the California State Auditor to report its findings and recommendations, as specified.end insert

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.

This bill, until January 1, 2018, would require the board to charge an annual membership fee in a specified amount for 2017. The bill would repeal the provision prohibiting the Legislature from reducing the maximum membership feebegin delete and the provision authorizing the State Bar to raise additional revenue by any lawful means. The bill would specify that the State Bar is empowered to raise additional revenue by any lawful meansend delete and would prohibit the State Bar from creating any foundation or nonprofit corporations, as specified. 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.begin delete The bill would state various findings and declarations of the Legislature.end delete

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.

This bill would make legislative findings to that effect.

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

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

begin delete
P5    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
P6    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.

end delete
P7    1

begin deleteSEC. 2.end delete
2
begin insertSECTION 1.end insert  

Section 6001 of the Business and Professions
3Code
is amended to read:

4

6001.  

The State Bar of California is a public corporation. It is
5hereinafter designated as the State Bar.

6The State Bar has perpetual succession and a seal and it may sue
7and be sued. It may, for the purpose of carrying into effect and
8promoting its objectives:

9(a) Make contracts.

10(b) Borrow money, contract debts, issue bonds,begin delete notesend deletebegin insert notes,end insert and
11debentures and secure the payment or performance of its
12obligations.

13(c) Own, hold, use,begin delete manageend deletebegin insert manage,end insert and deal in and with real
14and personal property.

15(d) Construct, alter,begin delete maintainend deletebegin insert maintain,end insert and repair buildings and
16other improvements to real property.

17(e) Purchase, lease, obtain options upon, acquire by gift, bequest,
18begin delete deviseend deletebegin insert devise,end insert or otherwise, any real or personal property or any
19interest therein.

20(f) Sell, lease, exchange, convey, transfer, assign, encumber,
21pledge, dispose of any of its real or personal property or any
22interest therein, including without limitation all or any portion of
23its income or revenues from membership fees paid or payable by
24members.

25(g) Do all other acts incidental to the foregoing or necessary or
26expedient for the administration of its affairs and the attainment
27of its purposes.

28Pursuant to those powers enumerated in subdivisions (a) to (g),
29inclusive, it is recognized that the State Bar has authority to raise
30revenue in addition to that provided for in Section 6140 and other
31statutory provisions. The State Bar is empowered to raise that
32additional revenue by any lawful means. However, as of December
3331, 2016, the State Bar shall not create any foundations or nonprofit
34corporations.

35The State Bar shall conspicuously publicize to its members in
36the annual dues statement and other appropriate communications,
37including its Web site and electronic communications, that its
38members have the right to limit the sale or disclosure of member
39information not reasonably related to regulatory purposes. In those
40communications the State Bar shall note the location of the State
P8    1Bar’s privacy policy, and shall also note the simple procedure by
2which a member may exercise his or her right to prohibit or restrict,
3at the member’s option, the sale or disclosure of member
4information not reasonably related to regulatory purposes. On or
5before May 1, 2005, the State Bar shall report to the Assembly
6and Senate Committees on Judiciary regarding the procedures that
7it has in place to ensure that members can appropriately limit the
8use of their member information not reasonably related to
9regulatory purposes, and the number of members choosing to
10utilize these procedures.

11No law of this state restricting, or prescribing a mode of
12procedure for the exercise of powers of state public bodies or state
13agencies, or classes thereof, including, but not by way of limitation,
14the provisions contained in Division 3 (commencing with Section
1511000), Division 4 (commencing with Section 16100), and Part 1
16(commencing with Section 18000) and Part 2 (commencing with
17Section 18500) of Division 5, of Title 2 of the Government Code,
18shall be applicable to the State Bar, unless the Legislature expressly
19so declares. Notwithstanding the foregoing or any other law,
20pursuant to Sections 6026.7 and 6026.11, the State Bar is subject
21to the California Public Records Act (Chapter 3.5 (commencing
22with Section 6250) of Division 7 of Title 1 of the Government
23Code) and, commencing April 1, 2016, the Bagley-Keene Open
24Meeting Act (Article 9 (commencing with Section 11120) of
25Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
26Code).

begin delete
27

SEC. 3.  

Section 6001.3 is added to the Business and Professions
28Code
, to read:

29

6001.3.  

(a) There is hereby created, as of January 1, 2017, the
30California State Bar Governance Commission, consisting of nine
31members, who shall be appointed by February 1, 2017, and selected
32as follows:

33(1) Two members appointed by the Governor.

34(2) Three members appointed by the Chief Justice of the
35California Supreme Court.

36(3) Two members appointed by the Speaker of the Assembly.

37(4) Two members appointed by the Senate Committee on Rules.

38(b) The chairperson of the commission shall be elected by the
39members of the commission and shall preside at meetings of the
40commission.

P9    1(c) Appointed members of the commission shall not receive a
2salary, but shall be entitled to a per diem allowance of fifty dollars
3($50) for each day’s attendance at a meeting of the commission,
4not to exceed three hundred dollars ($300) in any month, and
5reimbursement for expenses incurred in the performance of their
6duties under this chapter, including travel and other necessary
7expenses.

8(d) The commission may adopt bylaws for the regulation of its
9affairs and the conduct of its business.

10(e) The commission shall meet on the call of the chairperson,
11at the request of a majority of the members, or at the request of
12the California Chief Justice of the Supreme Court. A majority of
13all members of the commission constitutes a quorum for the
14transaction of business.

15(f) The State Bar shall furnish all administrative assistance
16required by the commission.

17(g) The commission shall evaluate all issues of governance of
18the State Bar, including, but not limited to, a full review of other
19states with attorney regulatory structures that are different than
20the State Bar and a possible separation of the State Bar’s regulatory
21and trade association functions, in order to recommend the best
22governance structure for the State Bar to ensure that the protection
23of the public is the highest priority in the licensing, regulation, and
24discipline of attorneys and that the State Bar appropriately
25functions as a government agency subject to laws that apply to
26similar regulatory bodies. The commission shall, by April 30,
272017, provide a report to the Governor, the Chief Justice of the
28California Supreme Court, and the Senate and Assembly
29Committees on Judiciary on its recommendations, along with an
30implementation plan for those recommendations. If the commission
31does not reach a consensus on all of the recommendations in its
32report, the dissenting members of the commission may prepare
33and submit a dissenting report to the same entities described in
34this subdivision.

end delete
35begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 6001.1 of the end insertbegin insertBusiness and Professions Codeend insert
36
begin insert is amended to read:end insert

37

6001.1.  

begin insert(a)end insertbegin insertend insertProtection of the public shall be the highest priority
38for the State Bar of California and the board of trustees in
39exercising their licensing, regulatory, and disciplinary functions.
40Whenever the protection of the public is inconsistent with other
P10   1interests sought to be promoted, the protection of the public shall
2be paramount.

begin insert

3
(b) Protection of the public requires that professional legal
4services are provided in a competent, accessible, and ethical
5manner and that the judicial system functions in a fair, impartial,
6and just manner. For purposes of staffing and resource allocations,
7protection of the public is defined as the following core functions
8of the State Bar in the following order of priority:

end insert
begin insert

9
(1) Administration of the bar admissions and law school
10accreditation processes, recordkeeping and licensing functions,
11and the lawyer discipline system.

end insert
begin insert

12
(2) Administration of programs that advance professional
13competence and ethics, support the prevention of discipline
14problems before they occur, address the unlawful practice of law,
15and support the judicial selection process.

end insert
begin insert

16
(3) Administration of programs that support the fair and equal
17administration of justice, effective functioning of the legal system,
18and diversity of the profession.

end insert
19

begin deleteSEC. 4.end delete
20
begin insertSEC. 3.end insert  

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

22

begin deleteSEC. 5.end delete
23
begin insertSEC. 4.end insert  

Section 6009.7 of the Business and Professions Code
24 is repealed.

25

begin deleteSEC. 6.end delete
26
begin insertSEC. 5.end insert  

Section 6011 of the Business and Professions Code is
27amended to read:

28

6011.  

(a) The board shall consist of no more than 19 members
29and no fewer than 13 members.

30(b) It is the intent of the Legislature that the board consist of no
31more than 19 members and no fewer than 13 members during the
32period of transition from a 19-member board to a 13-member
33board. It is the intent of the Legislature that the board decrease its
34size without shortening, lengthening, or abolishing terms
35commencing prior to December 31, 2016, with the ultimate goal
36of instituting a 13-member board no later than October 31, 2019.
37It is the intent of the Legislature that this transition occur by the
38expiration of the terms of the elected members who are serving
39on the board as of December 31, 2016.

P11   1(c) begin deleteEach member appointed after December 31, 2016, shall have
2demonstrated educational or experience expertise, end delete
begin insertWhen making
3appointments to the board on and after December 31, 2016, each
4appointing body should consider appointing members with
5education or experience, end insert
or both, in at least one of the following:

6(1) Public finance.

7(2) Public administration.

8(3) Business or financial management.

9(4) State government, particularly prior regulatory experience.

10(5) Legal ethics.

begin insert

11
(6) Immigration law.

end insert
12

begin deleteSEC. 7.end delete
13
begin insertSEC. 6.end insert  

Section 6012 of the Business and Professions Code is
14repealed.

15begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 6013.1 of the end insertbegin insertBusiness and Professions Codeend insert
16
begin insert is amended to read:end insert

17

6013.1.  

(a) The Supreme Court shall appoint five attorney
18members of the board pursuant to a process that the Supreme Court
19may prescribe. These attorney members shall serve for a term of
20begin delete threeend deletebegin insert fourend insert years and may be reappointed by the Supreme Court for
21one additional term only.

22(b) An attorney member elected pursuant to Section 6013.2 may
23be appointed by the Supreme Court pursuant to this section to a
24term as an appointed attorney member.

25(c) The Supreme Court shall fill any vacancy in the term of, and
26make any reappointment of, any appointed attorney member.

27(d) When making appointments to the board, the Supreme Court
28should consider appointing attorneys that represent the following
29categories: legal services; small firm or solo practitioners;
30historically underrepresented groups, including consideration of
31race, ethnicity, gender, and sexual orientation; and legal academics.
32In making appointments to the board, the Supreme Court should
33also consider geographic distribution, years of practice, particularly
34attorneys who are within the first five years of practice or 36 years
35of age and under, and participation in voluntary local or state bar
36activities.

37(e) The State Bar shall be responsible for carrying out the
38administrative responsibilities related to the appointment process
39described in subdivision (a).

P12   1

SEC. 8.  

Section 6013.2 of the Business and Professions Code
2 is repealed.

3

SEC. 9.  

Section 6013.3 of the Business and Professions Code
4 is amended to read:

5

6013.3.  

(a) One attorney member of the board shall be
6appointed by the Senate Committee onbegin delete Rules.end deletebegin insert Rules and one
7attorney member of the board shall be appointed by the Speaker
8of the Assembly.end insert

9(b) An attorney member appointed pursuant to this section shall
10serve for a term ofbegin delete threeend deletebegin insert fourend insert years.begin insert Vacancies shall be filled for
11the remainder of the term.end insert
An appointed attorney member may be
12reappointed pursuant to this section.

13

SEC. 10.  

Section 6013.5 of the Business and Professions Code
14 is amended to read:

15

6013.5.  

(a) Effective January 1, 2017, abegin delete minimum of sevenend delete
16begin insert maximum of sixend insert members of the board shall be members of the
17public who have never been members of the State Bar or admitted
18to practice before any court in the United States.

19(b) Each of these members shall serve for a term of begin delete three years,
20commencing at the conclusion of the annual meeting next
21succeeding his or her appointment.end delete
begin insert four years. Vacancies shall be
22filled for the remainder of the term.end insert

23 (c) Effective January 1, 2017, one public member shall be
24appointed by the Senate Committee on Rules andbegin delete twoend deletebegin insert oneend insert public
25begin delete membersend deletebegin insert memberend insert shall be appointed by the Speaker of the
26Assembly.

27(d) Four public members shall be appointed by the Governor,
28subject to the confirmation of the Senate.

29(e) Each respective appointing authority shall fill any vacancy
30in and make any reappointment to each respective office.

begin delete

31(f) It is the intent of the Legislature that the increase of public
32members appointed by the Speaker of the Assembly, from one to
33two, as required by this measure adding this subdivision, occur at
34the expiration of the terms of the attorney members who are
35appointed by the Speaker of the Assembly and serving on the board
36as of December 31, 2016.

end delete
37

SEC. 11.  

Section 6015 of the Business and Professions Code
38 is amended to read:

39

6015.  

No person is eligible for attorney membership on the
40board unlessbegin delete allend deletebegin insert bothend insert of the following conditions are satisfied:

P13   1(a) He or she is an active member of the State Bar.

2(b) Either:

3(1) Prior to October 31, 2019, if elected, he or she maintains
4his or her principal office for the practice of law within the State
5Bar district from which he or she is elected.

6(2) If appointed by the Supreme Court or the Legislature, he or
7she maintains his or her principal office for the practice of law
8within the State of California.

begin delete

9(c) If newly appointed after December 31, 2016, he or she
10satisfies the requirements of subdivision (c) of Section 6011.

end delete
11

SEC. 12.  

Section 6016 of the Business and Professions Code
12 is amended to read:

13

6016.  

The term of office of each attorney member of the board
14shallbegin delete commence at the conclusion of the annual meeting next
15succeeding his or her election or appointment,end delete
begin insert be four yearsend insert and
16he or she shall hold office until his or her successor isbegin delete elected orend delete
17 appointed and qualified.begin delete For the purposes of this section, the time
18intervening between any two successive annual meetings shall be
19deemed to be one year.end delete
begin insert Vacancies shall be filled for the remainder
20of the term.end insert

21The board of trustees may provide by rule for an interim board
22to act in the place and stead of the board when because of vacancies
23during terms of office there is less than a quorum of the board.

24

SEC. 13.  

Section 6018 of the Business and Professions Code
25 is repealed.

26

SEC. 14.  

Section 6019 of the Business and Professions Code
27 is amended to read:

28

6019.  

Each place upon the board for which a member is to be
29appointed shall for the purposes of the appointment be deemed a
30separate office.

31

SEC. 15.  

Section 6021 of the Business and Professions Code
32 is amended to read:

33

6021.  

(a) (1) The Supreme Court shall select frombegin delete its
34appointedend delete
begin insert theend insert membersbegin delete a president and a vice presidentend deletebegin insert of the
35board a chair and a vice chairend insert
to serve in the absence of the
36
begin delete president.end deletebegin insert chair.end insert

begin delete

37(2) Within the period of 90 days next preceding the annual
38meeting, the board, at a meeting called for that purpose, shall select
39the treasurer for the ensuing year.

40(3)

end delete

P14   1begin insert(2)end insert Thebegin delete president, vice president, and treasurerend deletebegin insert chair and vice
2chairend insert
shall assume the duties of their respective offices at the
3conclusion of the annual meeting following their begin deleteappointment or
4selection.end delete
begin insert appointment.end insert

5(b) The term of the boardbegin delete presidentend deletebegin insert chair and vice chairend insert shall
6be onebegin delete year, except that he or she may be reappointed to a second
7one-year term as the board president.end delete
begin insert year.end insert

begin delete

8(c) Notwithstanding the provisions of Section 6011 regarding
9a 13-member board, if the president is elected from among those
10members of the board whose terms on the board expire by that
11year and has not been reappointed to another term under Section
126013.1 or 6013.5, the president shall serve as a 14th member of
13the board during his or her one-year term, and he or she may vote.

end delete
14

SEC. 16.  

Section 6022 of the Business and Professions Code
15 is amended to read:

16

6022.  

Thebegin delete officersend deletebegin insert secretary and treasurerend insert of the State Bar
17shall be selected annually by the board and need not bebegin delete a memberend delete
18begin insert membersend insert of the State Bar.

19

SEC. 17.  

Section 6026.5 of the Business and Professions Code,
20as added by Section 3 of Chapter 537 of the Statutes of 2015, is
21repealed.

22

SEC. 18.  

Section 6026.7 of the Business and Professions Code,
23as added by Section 5 of Chapter 537 of the Statutes of 2015, is
24amended to read:

25

6026.7.  

(a) The State Bar is subject to the Bagley-Keene Open
26Meeting Act (Article 9 (commencing with Section 11120) of
27Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
28Code) and all meetings of the State Bar are subject to the
29Bagley-Keene Open Meeting Act.

30(b) Notwithstanding any other law, the Bagley-Keene Open
31Meeting Act shall not apply to the Judicial Nominees Evaluation
32Commission, the Committee of Bar Examiners, or the State Bar
33Court.

34(c) In addition to the grounds authorized in the Bagley-Keene
35Open Meeting Act, a closed session may be held for those
36meetings, or portions thereof, relating to both of the following:

37(1) Appealsbegin delete to the boardend delete from decisions of the Board of Legal
38Specialization refusing to certify or recertify an applicant or
39suspending or revoking a specialist’s certificate.

P15   1(2) The preparation, approval, grading, or administration of
2examinations for certification of a specialist.

3begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 6029 of the end insertbegin insertBusiness and Professions Codeend insert
4
begin insert is amended to read:end insert

5

6029.  

begin insert(a)end insertbegin insertend insert The board may appoint such committees, officers
6and employees as it deems necessary or proper, and fix and pay
7salaries and necessary expenses.

begin insert

8
(b) The members of the executive committee of the board shall
9include at least one board member appointed by each of the
10following appointing authorities:

end insert
begin insert

11
(1) The Supreme Court.

end insert
begin insert

12
(2) The Governor.

end insert
begin insert

13
(3) The Speaker of the Assembly.

end insert
begin insert

14
(4) The Senate Committee on Rules.

end insert
15

begin deleteSEC. 19.end delete
16
begin insertSEC. 20.end insert  

Section 6030 of the Business and Professions Code
17 is amended to read:

18

6030.  

(a) The board shall be charged with the executive
19function of the State Bar and the enforcement of the provisions of
20this chapter.

21(b) The violation or threatened violation of any provision of
22Articles 7 (commencing with Section 6125) and 9 (commencing
23with Section 6150) of this chapter may be enjoined in a civil action
24brought in the superior court by the State Bar and no undertaking
25shall be required of the State Bar.

begin delete

26(c) No motion of the board can be approved unless a majority
27of the public members approve the motion.

end delete
begin insert

28
(c) Any decision of the board raising antitrust concerns is
29subject to review, modification, veto, or other appropriate action
30by the California Supreme Court.

end insert
31

begin deleteSEC. 20.end delete
32
begin insertSEC. 21.end insert  

Section 6060.2 of the Business and Professions Code
33 is amended to read:

34

6060.2.  

(a) All investigations or proceedings conducted by
35the State Bar concerning the moral character of an applicant shall
36be confidential and shall not be disclosed pursuant to any state
37law, including, but not limited to, the California Public Records
38Act (Chapter 3.5 (commencing with Section 6250) of Division 7
39of Title 1 of the Government Code) unless the applicant, in writing,
40waives the confidentiality.

P16   1(b) Notwithstanding subdivision (a), the records of the
2proceeding may be disclosed in response to either of the following:

3(1) A lawfully issued subpoena.

4(2) A written request from a government agency responsible
5for either the enforcement of civil or criminal laws or the
6professional licensing of individuals that is conducting an
7investigation about the applicant.

8

begin deleteSEC. 21.end delete
9
begin insertSEC. 22.end insert  

Section 6060.25 of the Business and Professions Code
10 is amended to read:

11

6060.25.  

(a) Notwithstanding 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, other than information described in subdivision (b), shall
21be confidential and shall not be disclosed pursuant to any state
22law, including, but not limited to, the California Public Records
23Act (Chapter 3.5 (commencing with Section 6250) of Division 7
24of Title 1 of the Government Code).

25(b) begin insert(1)end insertbegin insertend insert This section does not prohibit the disclosure of any of
26the following:

begin delete

27(1)

end delete

28begin insert(A)end insert The names of applicants who have passed any examination
29administered, given, or prescribed by the Committee of Bar
30Examiners.

begin delete

31(2)

end delete

32begin insert(B)end insert Information that is provided at the request of an applicant
33to another jurisdiction where the applicant is seeking admission
34to the practice of law.

begin delete

35(3)

end delete

36begin insert(C)end insert Information provided to a law school that is necessary for
37the purpose of the law school’s compliance with accreditation or
38regulatory requirements.

begin delete

39(4)

end delete

P17   1begin insert(D)end insert Information provided to the National Conference of Bar
2Examiners or a successor nonprofit organization in connection to
3the State Bar’s administration of any examination.

begin insert

4
(2) This subdivision shall apply retroactively to January 1, 2016.

end insert

5(c) Disclosure of any of the information inbegin delete paragraphs (2)end delete
6begin insert subparagraphs (B)end insert tobegin delete (4),end deletebegin insert (D),end insert inclusive, ofbegin insert paragraph (1) ofend insert
7 subdivision (b) shall not constitute a waiver under Section 6254.5
8of the Government Code of the exemption from disclosure provided
9for in subdivision (a) of this section.

10

begin deleteSEC. 22.end delete
11
begin insertSEC. 23.end insert  

Section 6075.6 is added to the Business and
12Professions Code
, to read:

13

6075.6.  

(a) (1) Thebegin delete Chief Justice of the California Supreme
14Courtend delete
begin insert Attorney Generalend insert shall appoint a State Bar enforcement
15program monitor prior to March 31, 2017.begin delete The Chief Justice of
16the California Supreme Court shall advertise the availability of
17the position and conduct interviews of candidates for the position.end delete

18 The applicant for the position shall have investigative experience,
19shall be familiar with California laws and procedures, and,
20preferably, shall be familiar with the rules and procedures of the
21State Bar lawyer discipline system and relevant administrative
22procedures. The monitor may be a state employee or his or her
23services may be provided pursuant to contract.

24(2) Thebegin delete Chief Justice of the California Supreme Courtend deletebegin insert Attorney
25Generalend insert
shall supervise the monitor and may terminate or dismiss
26him or her from this position.

27(b) (1) The enforcement program monitor shall monitor and
28evaluate the disciplinary system and procedures of the State Bar.
29The enforcement program monitor shall make his or her highest
30priority the reform and reengineering of the State Bar’s
31enforcement program and operations and the improvement of the
32overall efficiency of the State Bar’s disciplinary system so that the
33State Bar is successfully and consistently protecting the public.

34(2) This monitoring duty shall include, but not be limited to,
35the prioritization of cases most impacting public protection,
36improving the timeframe for the handling of complaints and in the
37rendering of initial decisions on complaints, the efficiency of the
38system, the fairness and courtesy given to complainants, the
39adequacy of the staffing and the budget allocated to the discipline
40section of the State Bar, the reduction of the complaint backlog,
P18   1the consistency in the application of sanctions or discipline
2imposed, the implementation of laws affecting discipline and the
3State Bar’s operations, disciplinary standards and rules, staff
4concerns regarding disciplinary matters or procedures, and the
5State Bar’s cooperation with other governmental entities charged
6with enforcing related laws and regulations that affect members
7of the State Bar.

8(3) The monitor shall exercise no authority over the State Bar’s
9discipline operations or staff, however, the State Bar and its staff
10shall cooperate with the program enforcement monitor, and the
11Bar shall provide data, information, and case files as requested by
12the enforcement program monitor to perform all of his or her duties. begin delete13 The enforcement program monitor shall have the same access to
14documents as the Chief Justice of the California Supreme Court.end delete

15(c) The enforcement program monitor shall submit an initial
16written report of his or her findings and conclusions to the State
17Bar, the Supreme Court, and the Legislature no later than October
181, 2019, and be available to make oral reports to each if requested
19to do so. The initial report shall include an analysis of the sources
20of information that resulted in each disciplinary action imposed
21since January 1, 2016. The monitor may also provide additional
22information to either the Supreme Court, the State Bar, or the
23Legislature at his or her discretion or at the request of the Supreme
24Court, the State Bar, or the Legislature. The program enforcement
25monitor shall make his or her reports available to the public or the
26media. The monitor shall make every effort to provide the State
27Bar with an opportunity to reply to any facts, findings, issues, or
28conclusions in his or her reports with which the State Bar may
29disagree.

30(d) The enforcement program monitor shall issue a final report
31prior to March 31, 2020.

32(e) This section shall become inoperative on March 31, 2020,
33and as of January 1,begin delete 2020,end deletebegin insert 2021,end insert shall be repealed.

34

begin deleteSEC. 23.end delete
35
begin insertSEC. 24.end insert  

Section 6086.5 of the Business and Professions Code
36 is amended to read:

37

6086.5.  

The board of trustees shall establish a State Bar Court,
38to act in its place and stead in the determination of disciplinary
39and reinstatement proceedings and proceedings pursuant to
40subdivisions (b) and (c) of Section 6007 to the extent provided by
P19   1rules adopted by the board of trustees pursuant to this chapter. In
2these proceedings the State Bar Court may exercise the powers
3and authority vested in the board of trustees by this chapter,
4including those powers and that authority vested in committees
5of, or established by, the board, except as limited by rules of the
6board of trustees within the scope of this chapter.

7Access to records of the State Bar Court shall be governed by
8court rules and laws applicable to records of the judiciary and not
9the California Public Records Act (Chapter 3.5 (commencing with
10 Section 6250) of Division 7 of Title 1 of the Government Code).

11For the purposes of Sections 6007, 6043, 6049, 6049.2, 6050,
126051, 6052, 6077 (excluding the first sentence), 6078, 6080, 6081,
13and 6082, “board” includes the State Bar Court.

14Nothing in this section shall authorize the State Bar Court to
15adopt rules of professional conduct or rules of procedure.

16The Executive Committee of the State Bar Court may adopt
17rules of practice for the conduct of all proceedings within its
18jurisdiction. These rules may not conflict with the rules of
19procedure adopted by the board, unless approved by the Supreme
20Court.

21

begin deleteSEC. 24.end delete
22
begin insertSEC. 25.end insert  

Section 6134 is added to the Business and Professions
23Code
, to read:

24

6134.  

(a) When the Office of the Chief Trial Counsel becomes
25aware of an allegation that a person not licensed to practice law
26in California has practiced or held himself or herself out as
27practicing law or entitled to practice law in the state, the office’s
28intake unit shall open a nonattorney complaint against that person
29for evaluation and processing.

30(b) The intake unit shall open a case record in the office’s case
31management system with the complaint form received date. The
32complaint form received date shall be the date the State Bar first
33received the complaint. Evaluation and processing of the
34nonattorney complaint shall include, but not be limited to, all of
35the following:

36(1) Creation of a summary of the allegation or allegations in the
37case record and assignment to staff, including inputting staff
38assignment codes into the case management system.

39(2) Identifying the source of the complaint.

P20   1(3) Identifying the relevant practice area of law, such as
2immigration, loan modification, or debt resolution, and recording
3the relevant practice area of law in the case record.

4(4) Identifying whether the allegations include potential identity
5theft of a licensed attorney’s identity and, if so, contacting the
6potential victim attorney to verify whether the attorney is aware
7of the potential identify theft and whether he or she has notified
8law enforcement.

9(5) Evaluating the nonattorney complaint for unauthorized
10 practice of law allegations, which includes opening a corresponding
11attorney complaint case record, if appropriate, such as in the case
12in which the nonattorney complaint also identifies a licensed
13California attorney potentially aiding or abetting the person in the
14unauthorized practice of law.

15(6) Seeking additional information from the complainant or
16other sources, such as the Internet, when the nonattorney complaint
17does not provide specific or sufficient facts to establish that the
18unauthorized practice of law may have occurred.

19(7) Determining whether to forward the complaint to the
20enforcement unit for investigation.

21(c) If the nonattorney complaint sufficiently alleges an
22unauthorized practice of law violation, the intake unit shall do both
23of the following:

24(1) Forward the nonattorney complaint to the enforcement unit
25for further action.

26(2) Refer the matter to law enforcement or other appropriate
27agency for consideration of criminal or other enforcement action,
28as specified in subdivisions (f) and (g).

29(d) If the nonattorney complaint sufficiently alleges the use of
30“notario,” “notario publico,” or other words or phrases in violation
31of Section 6126.7 or there is other evidence of a violation of
32Section 6126.7, the intake unit shall forward the complaint to the
33enforcement unit for further action.

34(e) If the nonattorney complaint does not sufficiently allege an
35unauthorized practice of law violation or a violation of Section
366126.7, the intake unit shall do all of the following:

37(1) Notify the complainant in writing of the determination.

38(2) Advise the complainant in writing of the opportunity to seek
39reconsideration of the determination.

P21   1(3) Process the case for closure, including updating the case
2record.

3(f) The intake unit’s staff shall resolve nonattorney complaints
4by either:

5(1) Forwarding the nonattorney complaint to the office’s
6enforcement unit.

7(2) Closing the nonattorney complaint in the intake unit.

8(g) (1) A nonattorney complaint alleging the unauthorized
9practice of law shall be presumed to warrant a law enforcement
10referral to federal, state, or local authorities, such as the United
11States Attorney, the Attorney General, the local district attorney,
12local county counsel, or local city attorney, for criminal or other
13enforcement action.

14(2) After the intake unit forwards a nonattorney complaint, the
15office’s enforcement unit shall make the referral required under
16paragraph (1), where appropriate, and shall coordinate with law
17enforcement, as appropriate, throughout the office’s investigation
18of the nonattorney complaint.

19(3) The intake unit may, where warranted, refer nonattorney
20complaints that do not allege the unauthorized practice of law to
21another regulatory agency, such as the Bureau of Real Estate, the
22Department of Consumer Affairs, the United States Securities and
23Exchange Commission, the Federal Trade Commission, and the
24United States Patent and Trademark Office.

25(h) Staff of the intake unit shall evaluate nonattorney complaints
26and strive to meet all of the following in at least 90 percent of
27nonattorney complaints filed:

28(1) Open a nonattorney complaint case record within five days
29from the complaint form received date, as defined in subdivision
30(b).

31(2) Complete the initial legal review of the nonattorney
32complaint within 20 days from the complaint form received date.

33(3) Process the nonattorney complaint to resolution, which
34means closing the case or forwarding the case for investigation,
35within 60 days from the complaint form received date.

36(i) Staff of the intake unit shall maintain processing activities
37in the nonattorney complaint case record, including the recording
38and tracking of other regulatory agency referrals made in
39connection with a nonattorney complaint.

P22   1(j) All nonattorney complaints forwarded by the intake unit to
2the office’s enforcement unit shall be investigated to determine
3whether there is evidence of the unauthorized practice of law or
4any violation of Section 6126.7. There shall be an appropriate law
5enforcement referral upon assignment to a staff member of the
6enforcement unit. Assigned enforcement unit staff shall update
7any law enforcement agency to which the complaint was referred
8with the status and findings of the investigation as it proceeds.
9Upon completion of an investigation, the assigned staff of the
10enforcement unit shall analyze the evidence to determine whether
11the evidence is sufficient to support formal proceedings in superior
12court.

13(k) Enforcement unit staff shall complete nonattorney complaint
14investigations to resolution by one of the following:

15(1) Filing enforcement proceedings in superior court.

16(2) Issuing a cease and desist letter. Enforcement unit staff may
17issue a cease and desist letter where the unauthorized practice of
18law activity appears isolated in nature and unlikely to recur or
19where it otherwise appears that a cease and desist warning will
20sufficiently address and stop the activity at issue.

21(3) Closing the complaint with no further action.

22(l) Enforcement unit staff shall investigate nonattorney
23complaints adhering to the same backlog time standard applicable
24to attorney discipline complaints and shall resolve the complaint
25within six months from the complaint form received date.

26(m) Intake unit staff and enforcement unit staff shall, as
27appropriate, maintain and update processing activities in the
28nonattorney case record, as follows:

29(1) Record and track the number of superior court proceedings
30initiated pursuant to Section 6126.3.

31(2) Record and track the number of superior court proceedings
32initiated pursuant to Section 6126.4.

33(3) Record and track the number of superior court proceedings
34initiated pursuant to Section 6126.7.

35(4) Record and track the number of superior court proceedings
36initiated pursuant to Section 6127.

37(5) Record and track the number of law enforcement referrals
38made in connection with nonattorney complaints.

39(6) Record and track the number of other agency referrals made
40in connection with nonattorney complaints.

P23   1(7) Record and track the number of cease and desist letters
2issued in connection with nonattorney complaints.

begin insert

3
(n) The Office of Chief Trial Counsel shall hire at least one
4supervising attorney with the following experience:

end insert
begin insert

5
(1) At least three years of experience handling asylum, T-Visa,
6U-Visa, or special immigrant juvenile status cases and has
7represented at least 25 individuals in these matters.

end insert
begin insert

8
(2) Experience in representing individuals in removal
9proceedings and asylum applications.

end insert
10

begin deleteSEC. 25.end delete
11
begin insertSEC. 26.end insert  

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

13

6140.  

(a) The board shall fix the annual membership fee for
14active members for 2017 at a sum not exceeding three hundred
15fifteen dollars ($315).

16(b) The annual membership fee for active members is payable
17on or before the first day of February of each year. If the board
18finds it appropriate and feasible, it may provide by rule for payment
19of fees on an installment basis with interest, by credit card, or other
20means, and may charge members choosing any alternative method
21of payment an additional fee to defray costs incurred by that
22election.

23(c) This section shall remain in effect only until January 1, 2018,
24and, as of that date, is repealed, unless a later enacted statute, that
25is enacted before January 1, 2018, deletes or extends that date.

26

begin deleteSEC. 26.end delete
27
begin insertSEC. 27.end insert  

Section 6140.56 is added to the Business and
28Professions Code
, to read:

29

6140.56.  

(a) To ensure that the Client Security Fund can
30adequately protect the public and relieve or mitigate financial
31losses caused by the dishonest conduct of members of the State
32Bar by paying claims in a timely manner, the State Bar shall
33conduct a thorough analysis of the Client Security Fund, including
34begin insert a review of the governance structure of the Client Security Fund
35to ensure that the structure provides for the most effective and
36efficient operation of the fund,end insert
a determination of the ongoing
37needs of the fund to satisfy claims in a timely manner, a review
38of additional efforts that can be taken to increase the collection of
39payments from the responsible attorneys, and a review of other
40State Bar expenditures to determine whether other expenditures
P24   1that do not directly impact the State Bar’s public protection
2functions, including, but not limited to, executive salaries and
3benefits, can be reduced or redirected in order to better fund the
4Client Security Fund through existing revenue, and, whether, after
5all other options have been fully and thoroughly exhausted, an
6increase in membership dues is necessary to ensure that the Client
7Security Fund can timely pay claims.

8(b) The State Bar shall submit a report on its analysis of the
9Client Security Fund to the Legislature by March 15, 2017, so that
10the plans can be reviewed in conjunction with the bill that would
11authorize the imposition of the State Bar’s membership fee. The
12report shall be submitted in compliance with Section 9795 of the
13Government Code.

14(c) For purposes of this section, “timely manner” means within
1512 months from thebegin insert later of theend insert time the claim is received by the
16Statebegin delete Bar.end deletebegin insert Bar and upon the resolution of the underlying discipline
17case involving an attorney member, which is a prerequisite to
18paying the claim.end insert

19

begin deleteSEC. 27.end delete
20
begin insertSEC. 28.end insert  

Section 6145 of the Business and Professions Code
21 is amended to read:

22

6145.  

(a) The board shallbegin delete contract with the California State
23Auditor’s Officeend delete
begin insert end insertbegin insertengage the services of an independent national
24or regional public accounting firm with at least five years of
25experience in governmental auditingend insert
for an audit of its revenues,
26expenditures, reserves, and its financial statement for each fiscal
27year. The financial statement shall be promptly certified under
28oath by the Treasurer of the State Bar, and a copy of the audit and
29financial statement shall be submitted within 120 days of the close
30of the fiscal year to the board, to the Chief Justice ofbegin delete the Supreme
31Court,end delete
begin insert California,end insert and to the Assembly and Senate Committees
32on Judiciary.

33The audit shall examine the receipts and expenditures of the
34State Bar and the State Bar sections to ensure that the receipts of
35the sections are being applied, and their expenditures are being
36made, in compliance with subdivision (a) of Section 6031.5, and
37that the receipts of the sections are applied only to the work of the
38sections.

39The audit also shall examine the receipts and expenditures of
40the State Bar to ensure that the funds collected on behalf of the
P25   1Conference of Delegates of California Bar Associations as the
2independent successor entity to the former Conference of Delegates
3of the State Bar are conveyed to that entity, that the State Bar has
4been paid or reimbursed for the full cost of any administrative and
5support services provided to the successor entity, including the
6collection of fees or donations on its behalf, and that no mandatory
7dues are being used to fund the activities of the successor entity.

begin delete

8This subdivision is not intended to reduce the number of audits
9the California State Auditor’s Office may otherwise be able to
10conduct.

end delete
begin insert

11
In selecting the accounting firm, the board shall consider the
12value of continuity, along with the risk that continued long-term
13engagements of an accounting firm may affect the independence
14of that firm.

end insert

15(b) The board shall contract with the California State Auditor’s
16Office to conduct a performance audit of the State Bar’s operations
17from July 1, 2000, to December 31, 2000, inclusive. A copy of the
18performance audit shall be submitted by May 1, 2001, to the board,
19to the Chief Justice ofbegin delete the Supreme Court,end deletebegin insert California,end insert and to the
20Assembly and Senate Committees on Judiciary.

21Every two years thereafter, the board shall contract with the
22California State Auditor’s Office to conduct a performance audit
23of the State Bar’s operations for the respective fiscal year,
24commencing with January 1, 2002, to December 31, 2002,
25inclusive. A copy of the performance audit shall be submitted
26within 120 days of the close of the fiscal year for which the audit
27was performed to the board, to the Chief Justice ofbegin delete the Supreme
28Court,end delete
begin insert California,end insert and to the Assembly and Senate Committees
29on Judiciary.

30For the performance audit due to the board, to the Chief Justice
31of the California Supreme Court, and to the Assembly and Senate
32Committees on Judiciary in 2017, the California State Auditor
33shall review all of the State Bar’s expenses, including, but not
34limited to, executive salaries and benefits, outside contracts, and
35real estate holdings, to determine the expenses that are appropriate
36and necessary to protect the public and what the appropriate level
37of member dues should be.

38For the purposes of this subdivision, the California State
39Auditor’s Office may contract with a third party to conduct the
40performance audit. This subdivision is not intended to reduce the
P26   1number of audits the California State Auditor’s Office may
2otherwise be able to conduct.

begin delete

3(c) This section shall become inoperative on January 1, 2021,
4and as of that date is repealed.

end delete
begin insert

5
(c) (1) In addition to the audits required in subdivision (b), the
6California State Auditor shall conduct a performance audit
7evaluating the State Bar’s progress in:

end insert
begin insert

8
(A) Reviewing any changes in the State Bar’s expenses made
9as a result of prior audits by the California State Auditor.

end insert
begin insert

10
(B) Correcting any issues raised in prior audits by the California
11State Auditor.

end insert
begin insert

12
(C) Increasing operational effectiveness and efficiency.

end insert
begin insert

13
(2) The California State Auditor shall report its findings and
14recommendations to the board, to the Chief Justice of California,
15to the Assembly Committee on Judiciary, and to the Senate
16Committee on Judiciary, no later than June 15, 2018.

end insert
begin delete
17

SEC. 28.  

Section 6145 is added to the Business and Professions
18Code
, to read:

19

6145.  

(a) The board shall engage the services of an independent
20national or regional public accounting firm with at least five years
21of experience in governmental auditing for an audit of its financial
22statement for each fiscal year. The financial statement shall be
23promptly certified under oath by the Treasurer of the State Bar,
24and a copy of the audit and financial statement shall be submitted
25within 120 days of the close of the fiscal year to the board, to the
26Chief Justice of the California Supreme Court, and to the Assembly
27and Senate Committees on Judiciary.

28The audit shall examine the receipts and expenditures of the
29State Bar and the State Bar sections to ensure that the receipts of
30the sections are being applied, and their expenditures are being
31made, in compliance with subdivision (a) of Section 6031.5, and
32that the receipts of the sections are applied only to the work of the
33sections.

34The audit also shall examine the receipts and expenditures of
35the State Bar to ensure that the funds collected on behalf of the
36Conference of Delegates of California Bar Associations as the
37independent successor entity to the former Conference of Delegates
38of the State Bar are conveyed to that entity, that the State Bar has
39been paid or reimbursed for the full cost of any administrative and
40support services provided to the successor entity, including the
P27   1collection of fees or donations on its behalf, and that no mandatory
2dues are being used to fund the activities of the successor entity.

3In selecting the accounting firm, the board shall consider the
4value of continuity, along with the risk that continued long-term
5engagements of an accounting firm may affect the independence
6of that firm.

7(b) The board shall contract with the California State Auditor’s
8Office to conduct a performance audit of the State Bar’s operations
9from July 1, 2000, to December 31, 2000, inclusive. A copy of the
10performance audit shall be submitted by May 1, 2001, to the board,
11to the Chief Justice of the California Supreme Court, and to the
12Assembly and Senate Committees on Judiciary.

13Every two years thereafter, the board shall contract with the
14California State Auditor’s Office to conduct a performance audit
15of the State Bar’s operations for the respective fiscal year,
16commencing with January 1, 2002, to December 31, 2002,
17inclusive. A copy of the performance audit shall be submitted
18within 120 days of the close of the fiscal year for which the audit
19was performed to the board, to the Chief Justice of the Supreme
20Court, and to the Assembly and Senate Committees on Judiciary.

21For the purposes of this subdivision, the California State
22Auditor’s Office may contract with a third party to conduct the
23performance audit. This subdivision is not intended to reduce the
24number of audits the California State Auditor’s Office may
25otherwise be able to conduct.

end delete
26

begin deleteSEC. 29.end delete
27
begin insertSEC. 29.end insert  

The Legislature finds and declares that Sectionsbegin delete 17end delete
28begin insert 18end insert andbegin delete 20end deletebegin insert 24end insert of this act, which amend Sections 6026.7 and 6086.5
29of the Business and Professions Code, impose a limitation on the
30public’s right of access to the meetings of public bodies or the
31writings of public officials and agencies within the meaning of
32Section 3 of Article I of the California Constitution. Pursuant to
33that constitutional provision, the Legislature makes the following
34findings to demonstrate the interest protected by this limitation
35and the need for protecting that interest:

36In order to protect the decisionmaking process of the State Bar
37Court in a manner that is similar to the deliberative functions of
38other courts and in order to ensure that personal or sensitive
39information regarding discipline by the State Bar Court is kept
40confidential, including for persons participating in discussions and
P28   1offers of settlement pursuant to arbitration or mediation, it is
2necessary to exempt the State Bar Court from the provision of the
3Bagley-Keene Open Meeting Act and the California Public Records
4Act.



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