Amended in Assembly September 4, 2015

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 6001, begin delete 6026.5, end delete 6060.2, 6086.1, 6086.15, 6090.6, 6140, 6145, 6168, 6200, 6232, and 6234 of, begin insert to amend, repeal, and add Sections 6026.5 and 6026.7 of, end insert to add begin delete Section end delete begin insert Sections end insert 6026.11 begin insert and 6060.25 end insert to, and to repeal and add begin delete Sections 6026.7 and end delete begin insert Section end insert 6140.16 of, the Business and Professions Code, and to amend Sections 6252, begin insert 6276.04, end insert 11121, and 11121.1 of the Government Code, relating to the State Bar.

LEGISLATIVE COUNSEL’S DIGEST

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

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. 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.

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, 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. The 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 board 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 board, the Chief Justice of the Supreme Court, and to the Assembly and Senate Committees on Judiciary.

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.

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.

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.

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

This bill begin insert , commencing April 1, 2016, end insert would make the State Bar subject to the Bagley-Keene Open Meeting Act. begin insert The bill would provide that the Bagley-Keene Open Meeting Act does not apply to the Judicial Nominees Evaluation Commission or the Committee of Bar Examiners. end insert 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. begin insert The bill would require any identifying information submitted by an applicant to the State Bar for admission and a license to practice law and all State Bar admission records to be confidential and would prohibit disclosure pursuant to any state law, including the California Public Records Act. end insert The bill would make other conforming changes in this regard.

begin insert

This bill would incorporate additional changes in Section 11121 of the Government Code proposed by AB 85 that would become operative only if AB 85 and this bill are both chaptered and become effective on or before January 1, 2016, and this bill is chaptered last.

end 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.

This bill would make legislative findings to that effect.

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.

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

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

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

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. 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 begin insert , commencing April 1, 2016, end insert 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).

begin delete

SEC. 2.  

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

6026.5.  

Pursuant to Section 6026.7, every 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.

SEC. 3.  

Section 6026.7 of the Business and Professions Code
is repealed.

end delete

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 insert (a) end insert begin insert   end insert Every meeting of the board shall be open to the
public except those meetings, or portions thereof, relating to:

begin delete

(a)

end delete

begin insert (1) end insert  Consultation with counsel concerning pending or prospective
litigation.

begin delete

(b)

end delete

begin insert (2) end insert  Involuntary enrollment of active members as inactive
members due to mental infirmity or illness or addiction to
intoxicants or drugs.

begin delete

(c)

end delete

begin insert (3) end insert  The qualifications of judicial appointees, nominees, or
candidates.

begin delete

(d)

end delete

begin insert (4) end insert  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.

begin delete

(e)

end delete

begin insert (5) end insert  Disciplinary investigations and proceedings, including
resignations with disciplinary investigations or proceedings
pending, and reinstatement proceedings.

begin delete

(f)

end delete

begin insert (6) end insert  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.

begin delete

(g)

end delete

begin insert (7) end insert  Appointments to or removals from committees, boards, or
other entities.

begin delete

(h)

end delete

begin insert (8) end insert  Joint meetings with agencies provided in Article VI of the
California Constitution.

begin insert

(b) 

end insert begin insert

This section shall remain in effect only until April 1, 2016, and
as of that date is repealed, unless a later enacted statute, that is
enacted before April 1, 2016, deletes or extends that date.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 6026.5 is added to the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

begin insert 6026.5. end insert   

(a) Pursuant to Section 6026.7, every meeting of the
board shall be open to the public except those meetings, or portions
thereof, relating to:

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

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

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

(4) 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.

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

(6) 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.

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

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

(b) This section shall become operative on April 1, 2016.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 6026.7 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

6026.7.  

begin insert (a) end insert begin insert   end insert 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).

begin insert

(b) 

end insert begin insert

This section shall remain in effect only until April 1, 2016, and
as of that date is repealed, unless a later enacted statute, that is
enacted before April 1, 2016, deletes or extends that date.

end insert

begin delete SEC. 4. end delete
begin insert SEC. 5. end insert   

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

6026.7.  

begin insert (a) end insert begin insert   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.

begin insert

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

end insert begin insert

(c) This section shall become operative on April 1, 2016.

end insert

begin delete SEC. 5. end delete
begin insert SEC. 6. end insert   

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

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 all public
records and writings of the State Bar are subject to the California
Public Records Act.

begin delete SEC. 6. end delete
begin insert SEC. 7. end insert   

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

6060.2.  

All investigations or proceedings conducted by the
State Bar concerning the moral character of an applicant shall be
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) 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. 8. end insert   

end insert

begin insert Section 6060.25 is added to the end insert begin insert Business and
Professions Code end insert begin insert , immediately following Section 6060.2, to read: end insert

begin insert

begin insert 6060.25. end insert   

Notwithstanding any other law, any identifying
information submitted by an applicant to the State Bar for
admission and a license to practice law and all State Bar admission
records, including, but not limited to, bar examination scores, law
school grade point average (GPA), undergraduate GPA, Law
School Admission Test scores, race or ethnicity, and any
information contained within the State Bar Admissions database
or any file or other data created by the State Bar with information
submitted by the applicant that may identify an individual
applicant, shall be 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

begin delete SEC. 7. end delete
begin insert SEC. 9. end insert   

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

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. 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). 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 SEC. 8. end delete
begin insert SEC. 10. 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 the 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 delete SEC. 9. end delete
begin insert SEC. 11. end insert   

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

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 members, provided that
these records shall remain 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).
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. 10. end delete
begin insert SEC. 12. 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. 11. end delete
begin insert SEC. 13. end insert   

Section 6140.16 of the Business and Professions Code
is repealed.

begin delete SEC. 12. end delete
begin insert SEC. 14. 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. 13. end delete
begin insert SEC. 15. 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 delete SEC. 14. end delete
begin insert SEC. 16. end insert   

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

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 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), 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 delete SEC. 15. end delete
begin insert SEC. 17. end insert   

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

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 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), and may not be disclosed in any subsequent
arbitration or other proceedings.

begin delete SEC. 16. end delete
begin insert SEC. 18. end insert   

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

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 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). Confidentiality pursuant to
this subdivision shall be absolute unless waived by the attorney.

begin delete SEC. 17. end delete
begin insert SEC. 19. end insert   

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

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 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 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 delete SEC. 18. end delete
begin insert SEC. 20. end insert   

Section 6252 of the Government Code is amended
to read:

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) (1) “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.

(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.

(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. 21. end insert   

end insert

begin insert Section 6276.04 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

6276.04.  

Aeronautics Act, reports of investigations and
hearings, Section 21693, Public Utilities Code.

Agricultural producers marketing, access to records, Section
59616, Food and Agricultural Code.

Aiding disabled voters, Section 14282, Elections Code.

Air pollution data, confidentiality of trade secrets, Section
6254.7, and Sections 42303.2 and 43206, Health and Safety Code.

Air toxics emissions inventory plans, protection of trade secrets,
Section 44346, Health and Safety Code.

Alcohol and drug abuse records and records of communicable
diseases, confidentiality of, Section 123125, Health and Safety
Code.

Alcoholic beverage licensees, confidentiality of corporate
proprietary information, Section 25205, Business and Professions
Code.

Ambulatory Surgery Data Record, confidentiality of identifying
information, Section 128737, Health and Safety Code.

Apiary registration information, confidentiality of, Section
29041, Food and Agricultural Code.

Archaeological site information and reports maintained by state
and local agencies, disclosure not required, Section 6254.10.

Arrest not resulting in conviction, disclosure or use of records,
Sections 432.7 and 432.8, Labor Code.

Arsonists, registered, confidentiality of certain information,
Section 457.1, Penal Code.

Artificial insemination, donor not natural father, confidentiality
of records, Section 7613, Family Code.

Assessor’s records, confidentiality of information in, Section
408, Revenue and Taxation Code.

Assessor’s records, confidentiality of information in, Section
451, Revenue and Taxation Code.

Assessor’s records, display of documents relating to business
affairs or property of another, Section 408.2, Revenue and Taxation
Code.

Assigned risk plans, rejected applicants, confidentiality of
information, Section 11624, Insurance Code.

Attorney applicant, investigation by State Bar, confidentiality
of, Section 6060.2, Business and Professions Code.

begin insert

Attorney applicant, information submitted by applicant and State
Bar admission records, confidentiality of, Section 6060.25,
Business and Professions Code.

end insert

Attorney-client confidential communication, Section 6068,
Business and Professions Code, and Sections 952 and 954,
Evidence Code.

Attorney, disciplinary proceedings, confidentiality prior to formal
proceedings, Section 6086.1, Business and Professions Code.

Attorney, disciplinary proceeding, State Bar access to nonpublic
court records, Section 6090.6, Business and Professions Code.

Attorney, law corporation, investigation by State Bar,
confidentiality of, Section 6168, Business and Professions Code.

Attorney work product confidentiality in administrative
adjudication, Section 11507.6.

Attorney, work product, confidentiality of, Section 6202,
Business and Professions Code.

Attorney work product, discovery, Chapter 4 (commencing with
Section 2018.010) of Title 4 of Part 4 of the Code of Civil
Procedure.

Auditor General, access to records for audit purposes, Sections
10527 and 10527.1.

Auditor General, disclosure of audit records, Section 10525.

Automated forward facing parking control devices,
confidentiality of video imaging records from the devices, Section
40240, Vehicle Code.

Automated traffic enforcement system, confidentiality of
photographic records made by the system, Section 21455.5, Vehicle
Code.

Automobile Insurance Claims Depository, confidentiality of
information, Section 1876.3, Insurance Code.

Automobile insurance, investigation of fraudulent claims,
confidential information, Section 1872.8, Insurance Code.

Avocado handler transaction records, confidentiality of
information, Section 44984, Food and Agricultural Code.

begin delete SEC. 19. end delete
begin insert SEC. 22. end insert   

Section 11121 of the Government Code is amended
to read:

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.

(e) Notwithstanding subdivision (a) of Section 11121.1, the
State Bar of California, as described in Section 6001 of the
Business and Professions Code. begin insert This subdivision shall become
operative on April 1, 2016. end insert

begin insert

begin insert SEC. 22.5. 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 begin delete persons. end delete begin insert persons, except
as in subdivision (d). end insert

(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. This subdivision shall become operative
on April 1, 2016.

end insert

begin delete SEC. 20. end delete
begin insert SEC. 23. end insert   

Section 11121.1 of the Government Code is amended
to read:

11121.1.  

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

(a) Except as provided in subdivision (e) of Section 11121, state
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. 24. end insert   

end insert begin insert

Section 22.5 of this bill incorporates amendments to
Section 11121 of the Government Code proposed by this bill and
Assembly Bill 85. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2016,
(2) each bill amends Section 11121 of the Government Code, and
(3) this bill is enacted after Assembly Bill 85, in which case Section
11121 of the Government Code, as amended by Assembly Bill 85,
shall remain operative only until the operative date of this bill, at
which time Section 22.5 of this bill shall become operative, and
Section 22 of this bill shall not become operative.

end insert

begin delete SEC. 21. end delete
begin insert SEC. 25. end insert   

The Legislature finds and declares that begin delete Sections 6,
7, 9, 14, 15, 16, and 17 of end delete this act begin delete impose end delete begin insert imposes end insert 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:

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 begin delete Bar, end delete
begin insert Bar, including any information submitted by an applicant to the
State Bar for admission and a license to practice law, end insert 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.

begin delete SEC. 22. end delete
begin insert SEC. 26. end 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.