Amended in Assembly August 28, 2015

Amended in Assembly July 15, 2015

Senate Bill No. 387

Introduced by Senator Jackson

February 24, 2015

An act to amend Sections begin insert 6001, 6026.5, 6060.2, 6086.1, end insert 6086.15, begin insert 6090.6, end insert 6140, begin delete and 6145 end delete begin insert 6145, 6168, 6200, 6232, and 6234 end insert of, begin delete and end delete begin insert to add Section 6026.11 to, and end insert to repeal and add begin delete Section end delete begin insert Sections 6026.7 and end insert 6140.16 of, the Business and Professions Code, begin insert and to amend Sections 6252, 11121, and 11121.1 of the Government Code, end insert relating to begin delete attorneys. end delete begin insert the State Bar. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 387, as amended, Jackson. State Bar: attorneys: annual membership begin delete fees. end delete begin insert fees: meetings: public records. end insert

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.

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. begin insert Existing law requires the board to appoint a lawyer admitted to practice in California to serve as chief trial counsel. The Office of the Chief Trial Counsel, which is responsible for reviewing charges of lawyer misconduct, investigates and prosecutes complaints about attorneys. end 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.

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

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

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.

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. begin delete This end delete begin insert The end insert 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.

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

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 begin delete State Bar end delete begin insert board end insert , the Chief Justice of the Supreme Court, and to the Assembly and Senate Committees on Judiciary.

begin insert

Under existing law, no law of this state restricting or prescribing a mode of procedure for the exercise of powers of state public bodies or state agencies is applicable to the State Bar, unless the Legislature expressly so declares. Except as specified, existing law requires every meeting of the board to be open to the public.

end insert begin insert

Existing law, the Bagley-Keene Open Meeting Act, requires that all meetings of a state body be open and public and that all persons be permitted to attend any meeting of a state body, subject to certain conditions and exceptions. A violation of these provisions is a misdemeanor.

end insert begin insert

Existing law exempts the board from the act, but requires the board to ensure that its open meeting requirements are consistent with, and conform to, the Bagley-Keene Open Meeting Act.

end insert begin insert

Existing law, the California Public Records Act, requires state and local agencies to make public records available for inspection, subject to certain exceptions.

end insert begin insert

This bill would make the State Bar subject to the Bagley-Keene Open Meeting Act. By expanding the scope of that crime, the bill would impose a state-mandated local program. The bill would also make the State Bar subject to the California Public Records Act. The bill would make other conforming changes in this regard.

end insert begin insert

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

end insert begin insert

This bill would make legislative findings to that effect.

end insert begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 6001 of the end insert begin insert Business and Professions
Code end insert begin insert is amended to read: end insert

6001.  

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

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

(a) Make contracts.

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

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

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

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

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

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

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

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

No law of this state restricting, or prescribing a mode of
procedure for the exercise of powers of state public bodies or state
agencies, or classes thereof, including, but not by way of limitation,
the provisions contained in Division 3 (commencing with Section
11000), Division 4 (commencing with Section 16100), and Part 1
(commencing with Section 18000) and Part 2 (commencing with
Section 18500) of Division 5, of Title 2 of the Government Code,
shall be applicable to the State Bar, unless the Legislature expressly
so declares. begin insert Notwithstanding the foregoing or any other law,
pursuant to Sections 6026.7 and 6026.11, the State Bar is subject
to the California Public Records Act (Chapter 3.5 (commencing
with Section 6250) of Division 7 of Title 1 of the Government Code)
and the Bagley-Keene Open Meeting Act (Article 9 (commencing
with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title
2 of the Government Code). end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 6026.5 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

6026.5.  

begin delete Every end delete begin insert Pursuant to Section 6026.7, every end insert meeting of
the board shall be open to the public except those meetings, or
portions thereof, relating to:

(a) Consultation with counsel concerning pending or prospective
litigation.

(b) Involuntary enrollment of active members as inactive
members due to mental infirmity or illness or addiction to
intoxicants or drugs.

(c) The qualifications of judicial appointees, nominees, or
candidates.

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

(e) Disciplinary investigations and proceedings, including
resignations with disciplinary investigations or proceedings
pending, and reinstatement proceedings.

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

(g) Appointments to or removals from committees, boards, or
other entities.

(h) Joint meetings with agencies provided in Article VI of the
California Constitution.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 6026.7 of the end insert begin insert Business and Professions Code end insert
begin insert is repealed. end insert

begin delete

6026.7.  

The board shall ensure that its open meeting
requirements, as described in Section 6026.5, are consistent with,
and conform to, the Bagley-Keene Open Meeting Act (Article 9
(commencing with Section 11120) of Division 3 of Title 2 of the
Government Code).

end delete

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 6026.7 is added to the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

begin insert 6026.7. end insert   

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

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 6026.11 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 6026.11. end insert   

The State Bar is subject to the California Public
Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code) and all public
records and writings of the State Bar are subject to the California
Public Records Act.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 6060.2 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

6060.2.  

All investigations or proceedings conducted by the
State Bar concerning the moral character of an applicant shall be
confidential begin insert and shall not be disclosed pursuant to any state law,
including, but not limited to, the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of
Title 1 of the Government Code) end insert unless the applicant, in writing,
waives the confidentiality. However, the records of the proceeding
may be subject to lawfully issued subpoenas.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 6086.1 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

6086.1.  

(a) (1) Subject to subdivision (b), and except as
otherwise provided by law, hearings and records of original
disciplinary proceedings in the State Bar Court shall be public,
following a notice to show cause.

(2) Subject to subdivision (b), and except as otherwise provided
by law, hearings and records of the following matters shall be
public:

(A) Filings for involuntary inactive enrollment or restriction
under subdivision (a), (c), (d), or (e) of Section 6007.

(B) Petitions for reinstatement under Section 6078.

(C) Proceedings for suspension or disbarment under Section
6101 or 6102.

(D) Payment information from the Client Security Fund pursuant
to Section 6140.5.

(E) Actions to cease a law practice or assume a law practice
under Section 6180 or 6190.

(b) All disciplinary investigations are confidential until the time
that formal charges are filed and all investigations of matters
identified in paragraph (2) of subdivision (a) are confidential until
the formal proceeding identified in paragraph (2) of subdivision
(a) is instituted. begin insert These investigations shall not be disclosed
pursuant to any state law, including, but not limited to, the
California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code). end insert
This confidentiality requirement may be waived under any of the
following exceptions:

(1) The member whose conduct is being investigated may waive
confidentiality.

(2) The Chief Trial Counsel or President of the State Bar may
waive confidentiality, but only when warranted for protection of
the public. Under those circumstances, after private notice to the
member, the Chief Trial Counsel or President of the State Bar may
issue, if appropriate, one or more public announcements or make
information public confirming the fact of an investigation or
proceeding, clarifying the procedural aspects and current status,
and defending the right of the member to a fair hearing. If the Chief
Trial Counsel or President of the State Bar for any reason declines
to exercise the authority provided by this paragraph, or disqualifies
himself or herself from acting under this paragraph, he or she shall
designate someone to act in his or her behalf. Conduct of a member
that is being inquired into by the State Bar but that is not the subject
of a formal investigation shall not be disclosed to the public.

(3) The Chief Trial Counsel or his or her designee may waive
confidentiality pursuant to Section 6044.5.

(c) Notwithstanding the confidentiality of investigations, the
State Bar shall disclose to any member of the public so inquiring,
any information reasonably available to it pursuant to subdivision
(o) of Section 6068, and to Sections 6086.7, 6086.8, and 6101,
concerning a member of the State Bar which is otherwise a matter
of public record, including civil or criminal filings and dispositions.

begin delete SECTION 1. end delete
begin insert SEC. 8. end insert   

Section 6086.15 of the Business and Professions Code
is amended to read:

6086.15.  

(a) The State Bar shall issue an Annual Discipline
Report by April 30 of each year describing the performance and
condition of the State Bar discipline system, including all matters
that affect public protection. The report shall cover the previous
calendar year and shall include accurate and complete descriptions
of all of the following:

(1) The existing backlog of cases within the discipline system,
including the number of complaints as of December 31 of the
preceding year that were pending beyond six months after receipt
without dismissal, admonition, or the filing of a notice of
disciplinary charges. In addition to written complaints received
by the State Bar, the backlog of cases shall include other matters
opened in the Office of begin insert the end insert Chief Trial Counsel and pending
beyond six months after receipt without the filing of notices of
disciplinary charges, or the initiation of other disciplinary
proceedings in the State Bar Court for the purpose of seeking the
imposition of discipline against a member of the State Bar, and
tables showing time periods beyond six months and the number
in each category and a discussion of the reason for the extended
periods.

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

(3) The number, average pending times, and types of matters
self-reported by members of the State Bar pursuant to subdivision
(o) of Section 6068 and subdivision (c) of Section 6086.8.

(4) The number, average pending times, and types of matters
reported by other sources pursuant to Sections 6086.7, 6086.8,
6091.1, subdivision (b) of Section 6101, and Section 6175.6.

(5) The speed of complaint handling and dispositions by type,
measured by the median and the average processing times.

(6) The number, average pending times, and types of filed
notices of disciplinary charges and formal disciplinary outcomes.

(7) The number, average pending times, and types of other
matters, including petitions to terminate practice pursuant to
Section 6180 or 6190, interim suspensions and license restrictions
pursuant to Section 6007, motions to enforce a binding arbitration
award, judgment, or agreement pursuant to subdivision (d) of
Section 6203, motions to revoke probation, letters of warning,
private reprovals, admonitions, and agreements in lieu of discipline.

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

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

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

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

(b) The Annual Discipline Report shall include statistical
information presented in a consistent manner for year-to-year
comparison and shall compare the information required under
subdivision (a) to similar information for the previous three years.

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

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 6090.6 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

6090.6.  

In a disciplinary proceeding, the State Bar shall have
access, on an ex parte basis, to all nonpublic court records relevant
to the competence or performance of its begin delete members , end delete begin insert members, end insert
provided that these records shall remain begin delete confidential. end delete begin insert confidential
and shall not be disclosed pursuant to any state law, including,
but not limited to, the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code). end insert This access, for investigation and enforcement
purposes, shall not be limited by any court order sealing those
records, except a court order authorized by Section 851.6, 851.7,
851.8, or 851.85 of the Penal Code. The State Bar may disclose
publicly the nature and content of those records, including sealed
records other than those specified immediately above in this
section, after notice of intention to disclose all or a part of the
records has been given to the parties in the underlying action. A
party to the underlying action who would be adversely affected
by the disclosure may serve notice on the State Bar within 10 days
of receipt of the notice of intention to disclose the records that it
opposes the disclosure and will seek a hearing in the court of
competent jurisdiction on an expedited basis.

begin delete SEC. 2. end delete
begin insert SEC. 10. end insert   

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

6140.  

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

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

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

begin delete SEC. 3. end delete
begin insert SEC. 11. end insert   

Section 6140.16 of the Business and Professions Code
is repealed.

begin delete SEC. 4. end delete
begin insert SEC. 12. end insert   

Section 6140.16 is added to the Business and
Professions Code, to read:

6140.16.  

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

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

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

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

begin delete SEC. 5. end delete
begin insert SEC. 13. end insert   

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

6145.  

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

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

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

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

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

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

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

(c) Effective January 1, 2016, the board shall 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. The contract
shall include reimbursement for the California State Auditor’s
Office for the costs of conducting the audit. The audit shall, at a
minimum, examine the revenues, expenditures, and reserves of
the State Bar, including all fund transfers. The California State
Auditor’s Office shall commence the audit no later than January
1, 2016, and a copy of the audit shall be submitted by May 15,
2016, to the board, the Chief Justice of the Supreme Court, and to
the Assembly and Senate Committees on Judiciary. The audit shall
be submitted in compliance with Section 9795 of the Government
Code. This subdivision shall cease to be operative January 1, 2017.

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 6168 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

6168.  

The State Bar may conduct an investigation of the
conduct of the business of a law corporation.

Upon such investigation, the Board of Trustees, or a committee
authorized by it, shall have power to issue subpoenas, administer
oaths, examine witnesses, and compel the production of records,
in the same manner as upon an investigation or formal hearing in
a disciplinary matter under the State Bar Act. Such investigation
shall be private and begin delete confidential, end delete begin insert confidential and shall not be
disclosed pursuant to any state law, including, but not limited to,
the California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code), end insert
except to the extent that disclosure of facts and information may
be required if a cease and desist order is thereafter issued and
subsequent proceedings are had.

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 6200 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

6200.  

(a) The board of trustees shall, by rule, establish,
maintain, and administer a system and procedure for the arbitration,
and may establish, maintain, and administer a system and procedure
for mediation of disputes concerning fees, costs, or both, charged
for professional services by members of the State Bar or by
members of the bar of other jurisdictions. The rules may include
provision for a filing fee in the amount as the board may, from
time to time, determine.

(b) This article shall not apply to any of the following:

(1) Disputes where a member of the State Bar of California is
also admitted to practice in another jurisdiction or where an
attorney is only admitted to practice in another jurisdiction, and
he or she maintains no office in the State of California, and no
material portion of the services were rendered in the State of
California.

(2) Claims for affirmative relief against the attorney for damages
or otherwise based upon alleged malpractice or professional
misconduct, except as provided in subdivision (a) of Section 6203.

(3) Disputes where the fee or cost to be paid by the client or on
his or her behalf has been determined pursuant to statute or court
order.

(c) Unless the client has agreed in writing to arbitration under
this article of all disputes concerning fees, costs, or both, arbitration
under this article shall be voluntary for a client and shall be
mandatory for an attorney if commenced by a client. Mediation
under this article shall be voluntary for an attorney and a client.

(d) The board of trustees shall adopt rules to allow arbitration
and mediation of attorney fee and cost disputes under this article
to proceed under arbitration and mediation systems sponsored by
local bar associations in this state. Rules of procedure promulgated
by local bar associations are subject to review by the board or a
committee designated by the board to ensure that they provide for
a fair, impartial, and speedy hearing and award.

(e) In adopting or reviewing rules of arbitration under this
section, the board shall provide that the panel shall include one
attorney member whose area of practice is either, at the option of
the client, civil law, if the attorney’s representation involved civil
law, or criminal law, if the attorney’s representation involved
criminal law, as follows:

(1) If the panel is composed of three members the panel shall
include one attorney member whose area of practice is either, at
the option of the client, civil or criminal law, and shall include one
lay member.

(2) If the panel is composed of one member, that member shall
be an attorney whose area of practice is either, at the option of the
client, civil or criminal law.

(f) In any arbitration or mediation conducted pursuant to this
article by the State Bar or by a local bar association, pursuant to
rules of procedure approved by the board of trustees, an arbitrator
or mediator, as well as the arbitrating association and its directors,
officers, and employees, shall have the same immunity which
attaches in judicial proceedings.

(g) In the conduct of arbitrations under this article the arbitrator
or arbitrators may do all of the following:

(1) Take and hear evidence pertaining to the proceeding.

(2) Administer oaths and affirmations.

(3) Issue subpoenas for the attendance of witnesses and the
production of books, papers, and documents pertaining to the
proceeding.

(h) Participation in mediation is a voluntary consensual process,
based on direct negotiations between the attorney and his or her
client, and is an extension of the negotiated settlement process.
All discussions and offers of settlement are confidential begin insert and shall
not be disclosed pursuant to any state law, including, but not
limited to, the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code), end insert and may not be disclosed in any subsequent
arbitration or other proceedings.

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 6232 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

6232.  

(a) The committee shall establish practices and
procedures for the acceptance, denial, completion, or termination
of attorneys in the Attorney Diversion and Assistance Program,
and may recommend rehabilitative criteria for adoption by the
board for acceptance, denial, completion of, or termination from,
the program.

(b) An attorney currently under investigation by the State Bar
may enter the program in the following ways:

(1) By referral of the Office of the Chief Trial Counsel.

(2) By referral of the State Bar Court following the initiation
of a disciplinary proceeding.

(3) Voluntarily, and in accordance with terms and conditions
agreed upon by the attorney participant with the Office of the Chief
Trial Counsel or upon approval by the State Bar Court, as long as
the investigation is based primarily on the self-administration of
drugs or alcohol or the illegal possession, prescription, or
nonviolent procurement of drugs for self-administration, or on
mental illness, and does not involve actual harm to the public or
his or her clients. An attorney seeking entry under this paragraph
may be required to execute an agreement that violations of this
chapter, or other statutes that would otherwise be the basis for
discipline, may nevertheless be prosecuted if the attorney is
terminated from the program for failure to comply with program
requirements.

(c) Neither acceptance into nor participation in the Attorney
Diversion and Assistance Program shall relieve the attorney of
any lawful duties and obligations otherwise required by any
agreements or stipulations with the Office of the Chief Trial
Counsel, court orders, or applicable statutes relating to attorney
discipline.

(d) An attorney who is not the subject of a current investigation
may voluntarily enter, whether by self-referral or referral by a third
party, the diversion and assistance program on a confidential begin delete basis. end delete
begin insert basis and such information shall not be disclosed pursuant to any
state law, including, but not limited to, the California Public
Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code). end insert Confidentiality
pursuant to this subdivision shall be absolute unless waived by the
attorney.

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 6234 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

6234.  

Any information provided to or obtained by the Attorney
Diversion and Assistance Program, or any subcommittee or agent
thereof, shall be as follows:

(a) Confidential and begin delete this end delete begin insert shall not be disclosed pursuant to any
state law, including, but not limited to, the California Public
Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code). This end insert confidentiality
shall be absolute unless waived by the attorney.

(b) Exempt from the provisions of Section 6086.1.

(c) Not discoverable or admissible in any civil proceeding
without the written consent of the attorney to whom the information
pertains.

(d) Not discoverable or admissible in any disciplinary
proceeding without the written consent of the attorney to whom
the information pertains.

(e) Except with respect to the provisions of subdivision (d) of
Section 6232, the limitations on the disclosure and admissibility
of information in this section shall not apply to information relating
to an attorney’s noncooperation with, or unsuccessful completion
of, the Attorney Diversion and Assistance Program, or any
subcommittee or agent thereof, or to information otherwise
obtained by the Office of the Chief Trial Counsel, by independent
means, or from any other lawful source.

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Section 6252 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

6252.  

As used in this chapter:

(a) “Local agency” includes a county; city, whether general law
or chartered; city and county; school district; municipal
corporation; district; political subdivision; or any board,
commission or agency thereof; other local public agency; or entities
that are legislative bodies of a local agency pursuant to subdivisions
(c) and (d) of Section 54952.

(b) “Member of the public” means any person, except a member,
agent, officer, or employee of a federal, state, or local agency
acting within the scope of his or her membership, agency, office,
or employment.

(c) “Person” includes any natural person, corporation,
partnership, limited liability company, firm, or association.

(d) “Public agency” means any state or local agency.

(e) “Public records” includes any writing containing information
relating to the conduct of the public’s business prepared, owned,
used, or retained by any state or local agency regardless of physical
form or characteristics. “Public records” in the custody of, or
maintained by, the Governor’s office means any writing prepared
on or after January 6, 1975.

(f)  begin insert (1) end insert begin insert   end insert “State agency” means every state office, officer,
department, division, bureau, board, and commission or other state
body or agency, except those agencies provided for in Article IV
(except Section 20 thereof) or Article VI of the California
Constitution.

begin insert

(2) Notwithstanding paragraph (1) or any other law, “state
agency” shall also mean the State Bar of California, as described
in Section 6001 of the Business and Professions Code.

end insert

(g) “Writing” means any handwriting, typewriting, printing,
photostating, photographing, photocopying, transmitting by
electronic mail or facsimile, and every other means of recording
upon any tangible thing any form of communication or
representation, including letters, words, pictures, sounds, or
symbols, or combinations thereof, and any record thereby created,
regardless of the manner in which the record has been stored.

begin insert

begin insert SEC. 19. end insert   

end insert

begin insert Section 11121 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

11121.  

As used in this article, “state body” means each of the
following:

(a) Every state board, or commission, or similar multimember
body of the state that is created by statute or required by law to
conduct official meetings and every commission created by
executive order.

(b) A board, commission, committee, or similar multimember
body that exercises any authority of a state body delegated to it by
that state body.

(c) An advisory board, advisory commission, advisory
committee, advisory subcommittee, or similar multimember
advisory body of a state body, if created by formal action of the
state body or of any member of the state body, and if the advisory
body so created consists of three or more persons.

(d) A board, commission, committee, or similar multimember
body on which a member of a body that is a state body pursuant
to this section serves in his or her official capacity as a
representative of that state body and that is supported, in whole or
in part, by funds provided by the state body, whether the
multimember body is organized and operated by the state body or
by a private corporation.

begin insert

(e) Notwithstanding subdivision (a) of Section 11121.1, the State
Bar of California, as described in Section 6001 of the Business
and Professions Code.

end insert

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 11121.1 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

11121.1.  

As used in this article, “state body” does not include
any of the following:

(a)  begin delete State end delete begin insert Except as provided in subdivision (e) of Section 11121,
state end insert agencies provided for in Article VI of the California
Constitution.

(b) Districts or other local agencies whose meetings are required
to be open to the public pursuant to the Ralph M. Brown Act
(Chapter 9 (commencing with Section 54950) of Part 1 of Division
2 of Title 5).

(c) State agencies provided for in Article IV of the California
Constitution whose meetings are required to be open to the public
pursuant to the Grunsky-Burton Open Meeting Act (Article 2.2
(commencing with Section 9027) of Chapter 1.5 of Part 1 of
Division 2 of Title 2).

(d) State agencies when they are conducting proceedings
pursuant to Section 3596.

(e) State agencies provided for in Section 109260 of the Health
and Safety Code, except as provided in Section 109390 of the
Health and Safety Code.

(f) The Credit Union Advisory Committee established pursuant
to Section 14380 of the Financial Code.

begin insert

begin insert SEC. 21. end insert   

end insert begin insert

The Legislature finds and declares that Sections 6,
7, 9, 14, 15, 16, and 17 of this act impose a limitation on the
public’s right of access to the meetings of public bodies or the
writings of public officials and agencies within the meaning of
Section 3 of Article I of the California Constitution. Pursuant to
that constitutional provision, the Legislature makes the following
findings to demonstrate the interest protected by this limitation
and the need for protecting that interest:

end insert begin insert

In order to allow the State Bar of California to fully accomplish
its objectives, including, but not limited to, its licensing, regulatory,
and disciplinary functions, it is imperative to protect the privacy
interests of those persons submitting information to the State Bar,
those applicants, members, and law corporations subject to
investigation and discipline by the State Bar, and those persons
participating in discussions and offers of settlement pursuant to
arbitration or mediation in order to ensure that any personal or
sensitive information is protected as confidential information.

end insert

begin insert

begin insert SEC. 22. end insert   

end insert begin insert

No reimbursement is required by this act pursuant
to Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

end insert