BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 134| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 134 Author: Hertzberg (D), et al. Amended: 6/2/15 Vote: 21 SENATE JUDICIARY COMMITTEE: 7-0, 5/5/15 AYES: Jackson, Moorlach, Anderson, Hertzberg, Leno, Monning, Wieckowski SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/28/15 AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen SUBJECT: State Bar of California: voluntary fee collection SOURCE: Author DIGEST: This bill expressly authorizes the State Bar to collect voluntary fees on behalf of, and for the purpose of funding, the Public Interest Attorney Loan Repayment Program. ANALYSIS: Existing law: 1) Requires all attorneys who practice law in California to be members of the State Bar and establishes the State Bar for the purpose of regulating the legal profession. Pursuant to the State Bar Act, the annual mandatory membership fee set by the State Bar's Board of Trustees to pay for SB 134 Page 2 discipline and other functions must be ratified by the Legislature. 2) Authorizes the State Bar to collect voluntary fees, including amounts to support the California Supreme Court Historical Society and the provision of legal services. 3) Establishes the Public Interest Attorney Loan Repayment Program (Program) for licensed attorneys who practice or agree to practice in public interest areas of law in this state and provides that participants are eligible for a maximum of $11,000 in loan assistance for four years. This bill authorizes the State Bar to collect, in conjunction with the State Bar's collection of its annual membership dues, voluntary fees on behalf of, and for the purpose of funding, the Program, which provides loan assistance to licensed attorneys who practice or agree to practice in public interest areas of the law in this state. Background In 2001, AB 935 (Hertzberg, Chapter 881, Statutes of 2001) created the Program to help repay educational loans for participating California attorneys who practice, or agree to practice, in public interest areas of law. Participants in the Program are eligible for a maximum of $11,000 in loan assistance for four years. The California Student Aid Commission (CSAC), charged with administering the Program, was required to establish eligibility criteria for the Program based upon need and merit. Initial regulations were to be adopted within one year of the effective date of the initial appropriation funding the Program. To provide funding for the Program, this bill seeks to expressly authorize the State Bar to collect, in conjunction with its annual membership dues, voluntary fees for the support of the Program. Those fees would be collected as part of the annual bar dues bill. Comments As stated by the author: SB 134 Page 3 The increasingly high levels of debt accrued while obtaining a law degree, make it difficult for attorneys to serve in public interest areas of law, since the average pay is lower than it is in private practice. Public interest law offices must retain talented attorneys to ensure that their clientele consistently receive an acceptable level of service and equal access to justice. . . . The bill allows for licensed attorneys to donate to the Public Interest Attorney Loan Repayment Program when paying their annual State Bar dues. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee, potentially significant one-time and ongoing state costs of about $200,000 (General Fund) for CSAC to establish and administer the Program. To date, the Program has not been funded, and therefore, no resources have been dedicated for program activities. The loan repayment awards and administration costs would be funded with the voluntary fee revenue, but the mechanism by which CSAC would access the funds is unclear. SUPPORT: (Verified6/1/15) California Public Defenders Association California State Conference of the NAACP Equal Justice Works Los Angeles County District Attorney's Office Mexican American Legal Defense and Educational Fund University of California Hastings College of the Law University of the Pacific, McGeorge School of Law Ventura County Public Defender's Office Worksafe OPPOSITION: (Verified6/1/15) None received SB 134 Page 4 Prepared by:Benjamin Palmer / JUD. / (916) 651-4113 6/2/15 14:06:13 **** END ****