Amended in Assembly July 15, 2015

Senate BillNo. 387


Introduced by Senator Jackson

February 24, 2015


An act to amendbegin delete Section 6140 ofend deletebegin insert Sections 6086.15, 6140, and 6145 of, and to repeal and add Section 6140.16 of,end insert the Business and Professions Code, relating to attorneys.

LEGISLATIVE COUNSEL’S DIGEST

SB 387, as amended, Jackson. begin deleteAttorneys: end deletebegin insertState Bar: attorneys: end insertannual membership fees.

Existing law, the State Bar Act, provides for the licensure and regulation of attorneys by the State Bar of California, a public corporation. The State Bar is governed by a board of trustees. Existing law authorizes the board, among other duties, to aid in all matters pertaining to the improvement of the administration of justice, including all matters that may advance the professional interests of the members of the State Bar.begin delete Existing law, beginning January 1, 2015, until January 1, 2016, requires the board to charge an annual membership fee for active members of up to $315 for 2015.end delete

begin insert

Existing law requires the State Bar to issue an Annual Discipline Report describing the performance and condition of the State Bar discipline system. Existing law requires the report to cover the previous calendar year and to include accurate and complete descriptions of, among other things, the existing backlog of cases within the discipline system and a description of the programs at the State Bar directed at preventing acts warranting discipline.

end insert
begin insert

This bill would revise the content of the information in the report. The bill would additionally require the backlog of cases to include other matters opened in the Office of the Chief Trial Counsel and pending beyond 6 months after receipt, as specified.

end insert
begin insert

Existing law, beginning January 1, 2015, until January 1, 2016, requires the board to charge an annual membership fee for active members of up to $315 for 2015.

end insert

This bill would, until January 1, 2017, require the board to charge that annual membership fee for 2016.

begin insert

Existing law requires the State Bar to review its workload standards to measure the effectiveness and efficiency of its disciplinary activities, including, but not limited to, the State Bar Court and the Client Security Fund, and to provide guidance to the State Bar and the Legislature in allocating resources, as specified.

end insert
begin insert

This bill would delete that requirement. The bill would, instead, require the State Bar to develop and implement a specified workforce plan for its discipline system and conduct a public sector compensation and benefits study to reassess the numbers and classifications of staff required to conduct the disciplinary activities. This bill would require the State Bar to conduct a thorough analysis of its operating costs and develop a spending plan to determine a reasonable amount for the annual membership fee, as specified. The bill would require the State Bar to report to the Legislature by May 15, 2016.

end insert
begin insert

Existing law requires the State Bar to engage the services of an independent public accounting firm for an audit of its financial statement for each fiscal year.

end insert
begin insert

This bill would require, effective January 1, 2016, the State Bar to contract with the California State Auditor’s Office to conduct an in-depth financial audit of the State Bar, including an audit of its financial statement, internal controls, and relevant management practices, as provided, and would require the office to provide a copy of the audit to the State Bar, the Chief Justice of the Supreme Court, and to the Assembly and Senate Committees on Judiciary.

end insert

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:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 6086.15 of the end insertbegin insertBusiness and Professions
2Code
end insert
begin insert is amended to read:end insert

3

6086.15.  

(a) The State Bar shall issue an Annual Discipline
4Report by April 30 of each year describing the performance and
P3    1condition of the State Bar disciplinebegin delete system.end deletebegin insert system, including all
2matters that affect public protection.end insert
The report shall cover the
3previous calendar year and shall include accurate and complete
4descriptions of all of the following:

5(1) The existing backlog of cases within the discipline system,
6begin delete including, but not limited to,end deletebegin insert includingend insert the number of complaints
7as of December 31 of the preceding year that were pending beyond
8six months after receipt without dismissal, admonition, or the filing
9of a noticebegin delete to show cause,end deletebegin insert of disciplinary charges. In addition to
10written complaints received by the State Bar, the backlog of cases
11shall include other matters opened in the Office of Chief Trial
12Counsel and pending beyond six months after receipt without the
13filing of notices of disciplinary charges, or the initiation of other
14disciplinary proceedings in the State Bar Court for the purpose
15of seeking the imposition of discipline against a member of the
16State Bar,end insert
and tables showing time periods beyond six months and
17the number in each category and a discussion of the reason for the
18extended periods.

19(2) The number of inquiries and complaints and their disposition.

20(3) Thebegin delete numberend deletebegin insert number, average pending times,end insert and types of
21matters self-reported by members of the State Bar pursuant to
22subdivision (o) of Section 6068 and subdivision (c) of Section
236086.8.

24(4) Thebegin delete numberend deletebegin insert number, average pending times,end insert and types of
25matters reported by other sources pursuant to Sectionsbegin delete 6086.7 and
266086.8.end delete
begin insert 6086.7, 6086.8, 6091.1, subdivision (b) of Section 6101,
27and Section 6175.6. end insert

28(5) The speed of complaint handling and dispositions bybegin delete type.end delete
29begin insert type, measured by the median and the average processing times. end insert

31(6) Thebegin delete numberend deletebegin insert number, average pending times,end insert and types of
32filed noticesbegin delete to show causeend deletebegin insert of disciplinary chargesend insert and formal
33disciplinary outcomes.

34(7) Thebegin delete numberend deletebegin insert number, average pending times,end insert and types of
35begin delete informal discipline outcomes,end deletebegin insert other matters,end insert including petitions
36to terminatebegin delete practice,end deletebegin insert practice pursuant to Section 6180 or 6190,end insert
37 interim suspensions and licensebegin delete restrictions, criminal conviction
38monitoring,end delete
begin insert restrictions pursuant to Section 6007, motions to
39enforce a binding arbitration award, judgment, or agreement
40pursuant to subdivision (d) of Section 6203, motions to revoke
P4    1probation,end insert
letters of warning, private reprovals, admonitions, and
2agreements in lieu of discipline.

begin delete

3(8) A description of the programs of the State Bar directed at
4assuring honesty and competence by attorneys.

end delete
begin delete

5(9) A description of the programs of the State Bar directed at
6preventing acts warranting discipline.

end delete
begin insert

7(8) The number, average pending times, and outcomes of
8complaints involving a State Bar member who has been disbarred
9or who has resigned, and is engaged in the unauthorized practice
10of law, including referrals to district attorneys, city attorneys, or
11other prosecuting authorities, or petitions to terminate practice
12pursuant to Section 6180.

end insert
begin insert

13(9) The number, average pending times, and outcomes of
14complaints against nonattorneys engaged in the unauthorized
15practice of law, including referrals to district attorneys, city
16attorneys, or other prosecuting authorities; petitions to terminate
17practice pursuant to Section 6126.3; or referrals to prosecuting
18authorities or actions by the State Bar pursuant to Section 6126.7.

end insert

19(10) A description of the condition of the Client Security Fund,
20including an accounting of payouts.

21(11) An accounting of the cost of the discipline system by
22function.

23(b) The Annual Discipline Report shall include statistical
24information presented in a consistent manner for year-to-year
25comparison and shall compare the information required under
26subdivision (a) to similar information for the previous three years.
27begin delete The report shall include the general data and tables included in the
28previous reports of the State Bar Discipline Monitor where feasible.end delete

29(c) The Annual Discipline Report shall be presented to the Chief
30Justice of California, to the Governor, to the Speaker of the
31Assembly, to the President pro Tempore of the Senate, and to the
32Assembly and Senate Judiciary Committees, for their consideration
33and shall be considered a public document.

34

begin deleteSECTION 1.end delete
35begin insertSEC. 2.end insert  

Section 6140 of the Business and Professions Code,
36as amended by Section 3 of Chapter 429 of the Statutes of 2014,
37is amended to read:

38

6140.  

(a) The board shall fix the annual membership fee for
39active members for 2016 at a sum not exceeding three hundred
40fifteen dollars ($315).

P5    1(b) The annual membership fee for active members is payable
2on or before the first day of February of each year. If the board
3finds it appropriate and feasible, it may provide by rule for payment
4of fees on an installment basis with interest, by credit card, or other
5means, and may charge members choosing any alternative method
6of payment an additional fee to defray costs incurred by that
7election.

8(c) This section shall remain in effect only until January 1, 2017,
9and, as of that date, is repealed, unless a later enacted statute, that
10is enacted before January 1, 2017, deletes or extends that date.

11begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 6140.16 of the end insertbegin insertBusiness and Professions Codeend insert
12begin insert is repealed.end insert

begin delete
13

6140.16.  

The State Bar shall review its workload standards to
14measure the effectiveness and efficiency of its disciplinary
15activities, including, but not limited to, the State Bar Court and
16the Client Security Fund, and provide guidance to the State Bar
17and the Legislature in allocating resources. The standards shall be
18used to reassess the numbers and classifications of staff required
19to conduct the activities of the State Bar’s disciplinary activities.
20The review shall cover the calendar years of 1998, 1999, and 2000.
21The State Bar shall submit a report to the Legislature on its review
22of workload standards by June 30, 2001.

end delete
23begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 6140.16 is added to the end insertbegin insertBusiness and
24Professions Code
end insert
begin insert, to read:end insert

begin insert
25

begin insert6140.16.end insert  

(a) To align its staffing with its mission to protect
26the public as provided in Section 6001.1 and to provide guidance
27to the State Bar and the Legislature in allocating resources, the
28State Bar shall develop and implement a workforce plan for its
29discipline system and conduct a public sector compensation and
30benefits study. The workforce plan and compensation study shall
31be used to reassess the numbers and classifications of staff required
32to conduct the activities of the State Bar’s disciplinary activities.

33(b) The workforce planning shall include the development and
34recommendation of an appropriate backlog goal, an assessment
35of the staffing needed to achieve that goal while ensuring that the
36discipline process is not compromised, and the creation of policies
37and procedures sufficient to provide adequate guidance to the staff
38of each unit within the discipline system.

39(c) In addition to the requirements in subdivisions (a) and (b),
40the State Bar shall conduct a thorough analysis of its priorities
P6    1and necessary operating costs and develop a spending plan, which
2includes its fund balances, to determine a reasonable amount for
3the annual membership fee that reflects its actual or known costs
4and those to implement its workforce plan.

5(d) The State Bar shall submit a report on its workforce plan
6and spending plan to the Legislature by May 15, 2016, so that the
7plans can be reviewed in conjunction with the bill that would
8authorize the imposition of the State Bar’s membership fee. The
9report shall be submitted in compliance with Section 9795 of the
10Government Code. The State Bar shall complete and implement
11its workforce plan by December 31, 2016.

end insert
12begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 6145 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
13amended to read:end insert

14

6145.  

(a) The board shall engage the services of an independent
15national or regional public accounting firm with at least five years
16of experience in governmental auditing for an audit of its financial
17statement for each fiscal year. The financial statement shall be
18promptly certified under oath by the Treasurer of the State Bar,
19and a copy of the audit and financial statement shall be submitted
20within 120 days of the close of the fiscal year to the board, to the
21Chief Justice of the Supreme Court, and to the Assembly and
22Senate Committees on Judiciary.

23The audit shall examine the receipts and expenditures of the
24State Bar and the State Bar sections to ensure that the receipts of
25the sections are being applied, and their expenditures are being
26made, in compliance with subdivision (a) of Section 6031.5, and
27that the receipts of the sections are applied only to the work of the
28sections.

29The audit also shall examine the receipts and expenditures of
30the State Bar to ensure that the funds collected on behalf of the
31Conference of Delegates of California Bar Associations as the
32independent successor entity to the former Conference of Delegates
33of the State Bar are conveyed to that entity, that the State Bar has
34been paid or reimbursed for the full cost of any administrative and
35support services provided to the successor entity, including the
36collection of fees or donations on its behalf, and that no mandatory
37dues are being used to fund the activities of the successor entity.

38In selecting the accounting firm, the board shall consider the
39value of continuity, along with the risk that continued long-term
P7    1engagements of an accounting firm may affect the independence
2of that firm.

3(b) The board shall contract with the California State Auditor’s
4Office to conduct a performance audit of the State Bar’s operations
5from July 1, 2000, to December 31, 2000, inclusive. A copy of the
6performance audit shall be submitted by May 1, 2001, to the board,
7to the Chief Justice of the Supreme Court, and to the Assembly
8and Senate Committees on Judiciary.

9Every two years thereafter, the board shall contract with the
10California State Auditor’s Office to conduct a performance audit
11of the State Bar’s operations for the respective fiscal year,
12commencing with January 1, 2002, to December 31, 2002,
13inclusive. A copy of the performance audit shall be submitted
14within 120 days of the close of the fiscal year for which the audit
15was performed to the board, to the Chief Justice of the Supreme
16Court, and to the Assembly and Senate Committees on Judiciary.

17For the purposes of this subdivision, the California State
18Auditor’s Office may contract with a third party to conduct the
19performance audit. This subdivision is not intended to reduce the
20number of audits the California State Auditor’s Office may
21otherwise be able to conduct.

begin insert

22(c) Effective January 1, 2016, the board shall contract with the
23California State Auditor’s Office to conduct an in-depth financial
24audit of the State Bar, including an audit of its financial statement,
25internal controls, and relevant management practices. The contract
26shall include reimbursement for the California State Auditor’s
27Office for the costs of conducting the audit. The audit shall, at a
28minimum, examine the revenues, expenditures, and reserves of the
29State Bar, including all fund transfers. The California State
30Auditor’s Office shall commence the audit no later than January
311, 2016, and a copy of the audit shall be submitted by May 15,
322016, to the board, the Chief Justice of the Supreme Court, and
33to the Assembly and Senate Committees on Judiciary. The audit
34shall be submitted in compliance with Section 9795 of the
35Government Code. This subdivision shall cease to be operative
36January 1, 2017.

end insert


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