BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 387| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 387 Author: Jackson (D) Amended: 9/4/15 Vote: 21 SENATE JUDICIARY COMMITTEE: 7-0, 5/12/15 AYES: Jackson, Moorlach, Anderson, Hertzberg, Leno, Monning, Wieckowski SENATE FLOOR: 38-0, 5/22/15 AYES: Allen, Anderson, Bates, Beall, Berryhill, Block, Cannella, De León, Gaines, Galgiani, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Runner, Stone, Vidak, Wieckowski, Wolk NO VOTE RECORDED: Fuller ASSEMBLY FLOOR: 80-0, 9/10/15 - See last page for vote SUBJECT: State Bar: attorneys: annual membership fees: meetings: public records SOURCE: State Bar of California DIGEST: This bill authorizes the State Bar of California to collect active membership dues of up to $390 for the year 2016. This bill also requires the State Bar to develop and implement a specified workforce plan for its discipline system, conduct a public sector compensation and benefits study, and 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, and requires the State Bar to contract with the California State Auditor's Office to conduct an in-depth SB 387 Page 2 financial audit of the State Bar. The bill also makes the State Bar subject to the Bagley-Keene Open Meeting Act and the California Public Records Act, as specified. Assembly Amendments require the State Bar to implement a workforce plan, conduct a compensation and benefits study, develop a spending plan, contract with the State Auditor for an in-depth fiscal audit, and make the State Bar subject to the Bagley-Keene Open Meeting Act and the California Public Records Act. ANALYSIS: Existing law: 1)Requires all attorneys who practice law in California to be members of the State Bar and establishes the State Bar for the purpose of regulating the legal profession. Pursuant to the State Bar Act, the annual mandatory membership fee set by the State Bar's Board of Trustees to pay for discipline and other functions must be ratified by the Legislature. 2)Authorizes the State Bar to collect $315 in annual membership fees from active members for a total annual dues bill of $390 for the year 2015. The other $75 is pursuant to statutory authorization to assess annually the following fees: $40 for the Client Security Fund; $25 for disciplinary; and $10 to fund the Lawyer Assistance Program. 3)Authorizes the State Bar to collect $75 in annual membership fees from inactive members for a total annual dues bill of $115 for the year 2015. The other $40 is pursuant to statutory authorization to assess annually the following fees: $10 for the Client Security Fund; $25 for disciplinary activities; and $5 to fund the Lawyer Assistance Program. 4)Authorizes the State Bar to increase the annual membership fees by an additional $40, to be allocated only for purposes of providing voluntary support for nonprofit organizations that provide free legal services to persons of limited means. Members have the option of deducting the $40 from the annual membership fee if they elect not to have the amount allocated SB 387 Page 3 for the purposes of legal services. 5)Provides, under the California Public Records Act, that all records maintained by local and state governmental agencies are open to public inspection unless specifically exempt. 6)Requires, under the Bagley-Keene Open Meeting Act, that all meetings of a state body be open and public, but excludes the Judicial Branch from the Act. Requires the State Bar's Board of Trustees to ensure that its meetings are consistent with, and conform to, the Bagley-Keene Open Meeting Act. This bill: 1)Authorizes the State Bar to collect active membership dues of up to $390 for the year 2016. 2)Clarifies that information contained in the State Bar's Annual Discipline Report must include all matters affecting public protection, including specified discipline cases and both average and median case processing times. 3)Requires the State Bar to develop and implement a workplace plan for its discipline system and conduct a public sector compensation and benefits study, including a recommendation for an appropriate backlog goal and an assessment of staffing needed to achieve that goal. Requires the State Bar to conduct a thorough analysis of its operating costs and develop a spending plan to determine a reasonable amount for its annual dues. Requires that the workforce plan and the spending plan be submitted to the Legislature by May 15, 2016, and be implemented by December 31, 2016. 4)Requires the State Bar's Board of Trustees to contract with the California State Auditor to conduct a financial audit of the State Bar, including an audit of its financial statement, internal controls and practices, and requires that the audit be submitted to the Board, the Chief Justice of the California Supreme Court, and the Assembly and Senate Judiciary Committees by May 15, 2016. 5)Subjects the State Bar to the California Public Records Act, SB 387 Page 4 with specified exceptions. Provides that identifying information submitted by applicants to the State Bar for admission to practice law and State Bar admissions records, as specified, are confidential and may not be disclosed pursuant to any state law including the California Public Records Act. 6)Subjects, effective April 1, 2016, the State Bar to the Bagley-Keene Open Meeting Act, as provided, with exemptions for the Judicial Nominees Evaluation Commission and the Committee of Bar Examiners . Background The State Bar of California is a public corporation. Attorneys who wish to practice law in California generally must be admitted and licensed in this state and must be a member of the State Bar. (Cal. Const., art. VI, Sec. 9.) The State Bar of California is the largest state bar in the country. As of May 2015, the State Bar had 183,978 active members and 55,240 inactive members, which represents a slight annual increase in both active members and inactive members. Total State Bar membership is listed at 253,208, which includes 2,149 judge members and 11,840 members who are "Not Eligible to Practice Law." The State Bar's programs are financed mostly by annual membership dues paid by attorneys as well as other fees paid by applicants seeking to practice law. Comments The author writes, "SB 387 seeks to authorize the State Bar of California to collect membership dues for 2016. The State Bar's current authority to collect membership dues sunsets on January 1, 2016." The author further notes that the annual bar dues bill is the vehicle by which the Legislature performs its historic oversight function of the State Bar. Prior Legislation Previous legislation on State Bar membership dues: SB 387 Page 5 AB 2746 (Committee on Judiciary, Chapter 429, Statutes of 2014) SB 345 (Evans, Chapter 681, Statutes of 2013) AB 2685 (Committee on Judiciary, Chapter 348, Statutes of 2012) SB 163 (Evans, Chapter 417, Statutes of 2011) AB 2764 (Committee on Judiciary, Chapter 476, Statutes of 2010) SB 55 (Corbett, Chapter 2, Statutes of 2010) SB 641 (Corbett, 2009) was vetoed by the Governor. AB 3049 (Committee on Judiciary, Chapter 165, Statutes of 2008) SB 686 (Corbett, Chapter 474, Statutes of 2007) AB 1529 (Jones, Chapter 341, Statutes of 2005) AB 145 (Committee on Budget, Chapter 75, Statutes of 2005) SB 1490 (Committee on Judiciary, Chapter 384, Statutes of 2004) AB 1708 (Committee on Judiciary, Chapter 334, Statutes of 2003) SB 352 (Kuehl, Chapter 24, Statutes of 2001) SB 1367 (Schiff, Chapter 118, Statutes of 2000) SB 144 (Schiff, Chapter 342, Statutes of 1999) FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: Yes According to the Assembly Appropriations Committee, the State Auditor will incur one-time costs of around $275,000 for the audit, to be reimbursed by the State Bar. SUPPORT: (Verified9/9/15) State Bar of California (source) Service Employees International Union OPPOSITION: (Verified9/9/15) Center for Public Interest Law SB 387 Page 6 ASSEMBLY FLOOR: 80-0, 9/10/15 AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins Prepared by: Benjamin Palmer / JUD. / (916) 651-4113 9/10/15 23:28:11 **** END ****