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  ****