BILL NUMBER: SB 1418 CHAPTERED
BILL TEXT
CHAPTER 1079
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 1998
APPROVED BY GOVERNOR SEPTEMBER 30, 1998
PASSED THE SENATE AUGUST 26, 1998
PASSED THE ASSEMBLY AUGUST 21, 1998
AMENDED IN ASSEMBLY AUGUST 18, 1998
AMENDED IN ASSEMBLY JULY 23, 1998
AMENDED IN ASSEMBLY JULY 7, 1998
AMENDED IN ASSEMBLY JUNE 25, 1998
AMENDED IN ASSEMBLY JUNE 10, 1998
AMENDED IN ASSEMBLY JUNE 4, 1998
AMENDED IN SENATE MARCH 25, 1998
AMENDED IN SENATE MARCH 18, 1998
AMENDED IN SENATE FEBRUARY 25, 1998
INTRODUCED BY Senator Rosenthal
JANUARY 20, 1998
An act to amend Section 6405 of, to amend the heading of Chapter
5.5 (commencing with Section 6400) of Division 3 of, to amend,
repeal, and add Sections 6401, 6402, 6403, 6406, 6407, 6408, 6409,
6410, 6411, 6412, 6413, and 6415 of, to add and repeal Sections
6401.6, 6402.1, 6412.1, and 6416 of, and to repeal and add Section
6400 of, the Business and Professions Code, relating to legal
document assistants.
LEGISLATIVE COUNSEL'S DIGEST
SB 1418, Rosenthal. Legal document assistants.
Existing law generally regulates unlawful detainer assistants, as
defined, and, among other things, requires an unlawful detainer
assistant, by the filing of an application, to register with the
county clerk of the county in which he or she performs acts for which
registration is required.
This bill would revise and recast these provisions to, in
addition, apply to legal document assistants, as defined, so as to
prohibit any self-help service for compensation after January 1,
2000, unless the legal document assistant is registered in the county
in which the services are provided. This bill would prohibit a
legal document assistant from providing service to a client who
requires assistance that exceeds "self-help service" as defined. The
bill would require the application for registration to be made under
penalty of perjury, thereby expanding the scope of the crime of
perjury and, consequently, imposing a state-mandated local program.
The bill would require the denial of a certificate of registration
for specified reasons and would provide for an appeal to the Director
of Consumer Affairs. It would also require certain disclosures to
consumers. This bill would repeal these changes on January 1, 2003,
or upon a determination by the Director of Consumer Affairs that
fewer than 200 legal document assistants have registered, whichever
first occurs, and at that time would restore current law applicable
exclusively to unlawful detainer assistants, with certain changes.
Existing law provides that the failure of a person who engages in
acts of an unlawful detainer assistant to comply with certain
provisions of existing law is a misdemeanor.
Since this bill would make the current penal provisions applicable
to persons registered as legal document assistants, this bill would
impose a state-mandated local program by increasing the scope of an
existing crime. The bill would also impose a state-mandated local
program by expanding the duties of the county clerk.
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, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The heading of Chapter 5.5 (commencing with Section
6400) of Division 3 of the Business and Professions Code is amended
to read:
CHAPTER 5.5. LEGAL DOCUMENT ASSISTANTS AND UNLAWFUL DETAINER
ASSISTANTS
SEC. 2. Section 6400 of the Business and Professions Code is
repealed.
SEC. 3. Section 6400 is added to the Business and Professions
Code, to read:
6400. (a) "Unlawful detainer assistant" means any individual who
for compensation renders assistance or advice in the prosecution or
defense of an unlawful detainer claim or action, including any
bankruptcy petition that may affect the unlawful detainer claim or
action.
(b) "Unlawful detainer claim" means a proceeding, filing, or
action affecting rights or liabilities of any person that arises
under Chapter 4 (commencing with Section 1159) of Title 3 of Part 3
of the Code of Civil Procedure and that contemplates an adjudication
by a court.
(c) "Legal document assistant" means:
(1) Any person who is not exempted under Section 6401 and who
provides, or assists in providing, or offers to provide, or offers to
assist in providing, for compensation, any self-help service to a
member of the public who is representing himself or herself in a
legal matter, or who holds himself or herself out as someone who
offers that service or has that authority. This paragraph shall not
apply to any individual whose assistance consists merely of
secretarial or receptionist services.
(2) A corporation, partnership, association, or other entity that
employs or contracts with any person not exempted under Section 6401
who, as part of his or her responsibilities, provides, or assists in
providing, or offers to provide, or offers to assist in providing,
for compensation, any self-help service to a member of the public who
is representing himself or herself in a legal matter or holds
himself or herself out as someone who offers that service or has that
authority. This paragraph shall not apply to an individual whose
assistance consists merely of secretarial or receptionist services.
(d) "Self-help service" means all of the following:
(1) Completing legal documents in a ministerial manner, selected
by a person who is representing himself or herself in a legal matter,
by typing or otherwise completing the documents at the person's
specific direction.
(2) Providing general published factual information that has been
written or approved by an attorney, pertaining to legal procedures,
rights, or obligations to a person who is representing himself or
herself in a legal matter, to assist the person in representing
himself or herself. This service in and of itself, shall not require
registration as a legal document assistant.
(3) Making published legal documents available to a person who is
representing himself or herself in a legal matter.
(4) Filing and serving legal forms and documents at the specific
direction of a person who is representing himself or herself in a
legal matter.
(e) "Compensation" means money, property, or anything else of
value.
(f) A legal document assistant shall not provide any self-help
service for compensation after January 1, 2000, unless the legal
document assistant is registered in the county in which the services
are being provided.
(g) A legal document assistant shall not provide any kind of
advice, explanation, opinion, or recommendation to a consumer about
possible legal rights, remedies, defenses, options, selection of
forms, or strategies. A legal document assistant shall complete
documents only in the manner prescribed by paragraph (3) of
subdivision (d).
(h) This section shall remain in effect only until January 1,
2003, or the date the director suspends the requirements of this
chapter applicable to legal document assistants pursuant to Section
6416, whichever first occurs, and as of that date is repealed, unless
a later enacted statute, that is enacted before that date, deletes
or extends that date.
SEC. 4. Section 6400 is added to the Business and Professions
Code, to read:
6400. (a) "Unlawful detainer assistant" means any individual who
for compensation renders assistance or advice in the prosecution or
defense of an unlawful detainer claim or action, including any
bankruptcy petition that may affect the unlawful detainer claim or
action.
(b) "Unlawful detainer claim" means a proceeding, filing, or
action affecting rights or liabilities of any person that arises
under Chapter 4 (commencing with Section 1159) of Title 3 of Part 3
of the Code of Civil Procedure and that contemplates an adjudication
by a court.
(c) "Compensation" means money, property, or anything else of
value.
(d) This section shall become operative January 1, 2003, or the
date the director suspends the requirements of this chapter
applicable to legal document assistants pursuant to Section 6416,
whichever first occurs.
SEC. 5. Section 6401 of the Business and Professions Code is
amended to read:
6401. This chapter does not apply to any of the following:
(a) Any government employee who is acting in the course of his or
her employment.
(b) A member of the State Bar of California, or his or her
employee, paralegal, or agent, or an independent contractor while
acting on behalf of a member of the State Bar.
(c) Any employee of a nonprofit, tax-exempt corporation who
assists clients free of charge.
(d) A licensed real estate broker or licensed real estate
salesperson, as defined in Chapter 3 (commencing with Section 10130)
of Part 1 of Division 4, who acts pursuant to subdivision (b) of
Section 10131 on an unlawful detainer claim as defined in subdivision
(b) of Section 6400, and who is a party to the unlawful detainer
action.
(e) An immigration consultant, as defined in Chapter 19.5
(commencing with Section 22441) of Division 8.
(f) A person registered as a process server under Chapter 16
(commencing with Section 22350) or a person registered as a
professional photocopier under Chapter 20 (commencing with Section
22450) of Division 8.
(g) A person who provides services relative to the preparation of
security instruments or conveyance documents as an integral part of
the provision of title or escrow service.
(h) A person who provides services that are regulated by federal
law.
(i) A person who is employed by, and provides services to, a
supervised financial institution, holding company, subsidiary or
affiliate.
(j) This section shall remain in effect only until January 1,
2003, or the date the director suspends the requirements of this
chapter applicable to legal document assistants pursuant to Section
6416, whichever first occurs, and as of that date is repealed, unless
a later enacted statute, that is enacted before that date, deletes
or extends that date.
SEC. 6. Section 6401 is added to the Business and Professions
Code, to read:
6401. This chapter does not apply to any of the following:
(a) Any government employee who is acting in the course of his or
her employment.
(b) An active member of the State Bar of California, or his or her
employee or agent, acting under the member's supervision, or an
independent contractor while acting on behalf of, and under the
supervision of, the member.
(c) Any employee of a nonprofit, tax-exempt corporation who
assists clients free of charge.
(d) A licensed real estate broker or licensed real estate
salesperson, as defined in Chapter 3 (commencing with Section 10130)
of Part 1 of Division 4, who acts pursuant to subdivision (b) of
Section 10131 on an unlawful detainer claim as defined in subdivision
(b) of Section 6400, and who is a party to the unlawful detainer
action.
(e) This section shall become operative January 1, 2003, or the
date the director suspends the requirements of this chapter
applicable to legal document assistants pursuant to Section 6416,
whichever first occurs.
SEC. 7. Section 6401.6 is added to the Business and Professions
Code, to read:
6401.6. A legal document assistant shall not provide service to a
client who requires assistance that exceeds the definition of
self-help service in subdivision (b) of Section 6400, and shall
inform the client that the client requires the services of an
attorney.
This section shall remain in effect only until January 1, 2003, and
as of that date is repealed, unless a later enacted statute that is
enacted before January 1, 2003, deletes or extends that date.
SEC. 8. Section 6402 of the Business and Professions Code is
amended to read:
6402. A legal document assistant or unlawful detainer assistant
shall be registered pursuant to this chapter by the county clerk of
each county in which he or she performs acts for which registration
is required. No person who has been disbarred or suspended from the
practice of law pursuant to Article 6 (commencing with Section 6100)
of Chapter 4 shall, during the period of any disbarment or
suspension, register as a legal document assistant or unlawful
detainer assistant. The Department of Consumer Affairs shall, by
July 1, 1999, develop the application that shall be completed by a
person for purposes of registration as a legal document assistant.
The application shall specify the types of proof that the applicant
shall provide to the county clerk in order to demonstrate the
qualification and requirements of Section 6402.1.
This section shall remain in effect only until January 1, 2003, or
the date the director suspends the requirements of this chapter
applicable to legal document assistants pursuant to Section 6416,
whichever first occurs, and as of that date is repealed, unless a
later enacted statute, that is enacted before that date, deletes or
extends that date.
SEC. 9. Section 6402 is added to the Business and Professions
Code, to read:
6402. An unlawful detainer assistant shall be registered pursuant
to this chapter by the county clerk of each county in which he or
she performs acts for which registration is required. No person who
has been disbarred or suspended from the practice of law pursuant to
Article 6 (commencing with Section 6100) of Chapter 4 shall, during
the period of any disbarment or suspension, register as an unlawful
detainer assistant.
This section shall become operative January 1, 2003, or the date
the director suspends the requirements of this chapter applicable to
legal document assistants pursuant to Section 6416, whichever first
occurs.
SEC. 9.5. Section 6402.1 is added to the Business and Professions
Code, to read:
6402.1. To be eligible to apply for registration under this
chapter as a legal document assistant, the applicant shall possess at
least one of the following:
(a) A high school diploma or general equivalency diploma, and
either a minimum of two years of law-related experience under the
supervision of a licensed attorney, or a minimum of two years
experience, prior to January 1, 1999, providing self-help service.
(b) A baccalaureate degree in any field and either a minimum of
one year of law-related experience under the supervision of a
licensed attorney, or a minimum of one year of experience, prior to
January 1, 1999, providing self-help service.
(c) A certificate of completion from a paralegal program that is
institutionally accredited but not approved by the American Bar
Association, that requires successful completion of a minimum of 24
semester units, or the equivalent, in legal specialization courses.
(d) A certificate of completion from a paralegal program approved
by the American Bar Association.
(e) This section shall remain in effect only until January 1,
2003, or the date the director suspends the requirements of this
chapter applicable to legal document assistants pursuant to Section
6416, whichever first occurs, and as of that date is repealed, unless
a later enacted statute, that is enacted before that date, deletes
or extends that date.
SEC. 10. Section 6403 of the Business and Professions Code is
amended to read:
6403. (a) The application for registration of a natural person
shall contain all of the following statements about the applicant:
(1) Name, age, address, and telephone number.
(2) Whether he or she has been convicted of a felony, or of a
misdemeanor under Section 6126 or 6127.
(3) Whether he or she has been held liable in a civil action by
final judgment or entry of a stipulated judgment, if the action
alleged fraud, or the use of an untrue or misleading representation,
or the use of an unfair, unlawful, or deceptive business practice.
(4) Whether he or she has ever been convicted of a misdemeanor
violation of this chapter.
(5) Whether he or she has had a civil judgment entered against him
or her in an action arising out of the applicant's negligent,
reckless, or willful failure to properly perform his or her
obligation as a legal document assistant or unlawful detainer
assistant.
(6) Whether he or she has had a registration revoked pursuant to
Section 6413.
(b) The application for registration of a natural person shall be
accompanied by the display of personal identification, such as a
California driver's license, birth certificate, or other
identification acceptable to the county clerk to adequately determine
the identity of the applicant.
(c) The application for registration of a partnership or
corporation shall contain all of the following statements about the
applicant:
(1) The names, ages, addresses, and telephone numbers of the
general partners or officers.
(2) Whether the general partners or officers have ever been
convicted of a felony, or a misdemeanor under Section 6126 or 6127.
(3) Whether the general partners or officers have ever been held
liable in a civil action by final judgment or entry of a stipulated
judgment, if the action alleged fraud, or the use of an untrue or
misleading representation, or the use of an unfair, unlawful, or
deceptive business practice.
(4) Whether the general partners or officers have ever been
convicted of a misdemeanor violation of this chapter.
(5) Whether the general partners or officers have had a civil
judgment entered against them in an action arising out of a
negligent, reckless, or willful failure to properly perform the
obligations of a legal document assistant or unlawful detainer
assistant.
(6) Whether the general partners or officers have ever had a
registration revoked pursuant to Section 6413.
(d) The applications made under this section shall be made under
penalty of perjury.
(e) This section shall remain in effect only until January 1,
2003, or the date the director suspends the requirements of this
chapter applicable to legal document assistants pursuant to Section
6416, whichever first occurs, and as of that date is repealed, unless
a later enacted statute, that is enacted before that date, deletes
or extends that date.
SEC. 11. Section 6403 is added to the Business and Professions
Code, to read:
6403. (a) The application for registration of a natural person
shall contain all of the following statements about the applicant:
(1) Name, age, address, and telephone number.
(2) Whether he or she has been convicted of a felony, or of a
misdemeanor under Section 6126 or 6127.
(3) Whether he or she has been held liable in a civil action by
final judgment or consented to the entry of a stipulated judgment, if
the action alleged fraud, or the use of untrue or misleading
representations, or the use of an unfair, unlawful, or deceptive
business practice.
(b) The application for registration of a partnership or
corporation shall contain all of the following statements about the
applicant:
(1) The names, ages, addresses, and telephone numbers of the
general partners or officers.
(2) Whether the general partners or officers have ever been
convicted of a felony.
(3) Whether the general partners or officers have ever been held
liable in a civil action by final judgment or have consented to the
entry of a stipulated judgment. If the action alleged fraud, whether
it involved the use of untrue or misleading representations, or the
use of an unfair, unlawful, or deceptive business practice.
(c) This section shall become operative January 1, 2003, or the
date the director suspends the requirements of this chapter
applicable to legal document assistants pursuant to Section 6416,
whichever first occurs.
SEC. 12. Section 6405 of the Business and Professions Code is
amended to read:
6405. (a) An application for a certificate of registration shall
be accompanied by a bond of twenty-five thousand dollars ($25,000)
executed by a corporate surety qualified to do business in this state
and conditioned upon compliance with this chapter. The total
aggregate liability on the bond shall be limited to twenty-five
thousand dollars ($25,000). The bond may be terminated pursuant to
Section 995.440 of, and Article 13 (commencing with Section 996.310)
of Chapter 2 of Title 14 of Part 2 of, the Code of Civil Procedure.
(b) The county clerk shall, upon filing of the bond, deliver the
bond forthwith to the county recorder for recording. The recording
fee specified in Section 27361 of the Government Code shall be paid
by the registrant. The fee may be paid to the county clerk, who
shall transmit it to the recorder.
(c) The fee for filing, canceling, revoking, or withdrawing the
bond is seven dollars ($7).
(d) The county recorder shall record the bond and any notice of
cancellation, revocation, or withdrawal of the bond, and shall
thereafter mail the instrument, unless specified to the contrary, to
the person named in the instrument and, if no person is named, to the
party leaving it for recording. The recording fee specified in
Section 27361 of the Government Code for notice of cancellation,
revocation, or withdrawal of the bond shall be paid to the county
clerk, who shall transmit it to the county recorder.
(e) In lieu of the bond required by subdivision (a), a registrant
may deposit twenty-five thousand dollars ($25,000) in cash with the
county clerk.
(f) If the certificate is revoked, the bond or cash deposit shall
be returned to the bonding party or depositor subject to subdivision
(g) and the right of a person to recover against the bond or cash
deposit under Section 6412.
(g) The county clerk may retain a cash deposit until the
expiration of three years from the date the registrant has ceased to
do business, or three years from the expiration or revocation date of
the registration, in order to ensure there are no outstanding claims
against the deposit. A judge of a municipal or superior court may
order the return of the deposit prior to the expiration of three
years upon evidence satisfactory to the judge that there are no
outstanding claims against the deposit.
SEC. 12.5. Section 6406 of the Business and Professions Code is
amended to read:
6406. (a) If granted, a certificate of registration shall be
effective for a period of two years. Thereafter, a registrant shall
file an application for renewal of registration and pay the fee
required by Section 6404.
(b) Except as provided in subdivisions (d) to (f), inclusive, an
applicant shall be denied registration or renewal of registration if
the applicant has been any of the following:
(1) Convicted of a felony, or of a misdemeanor under Section 6126
or 6127.
(2) Held liable in a civil action by final judgment or entry of a
stipulated judgment, if the action alleged fraud, or the use of an
untrue or misleading representation, or the use of an unfair,
unlawful, or deceptive business practice.
(3) Convicted of a misdemeanor violation of this chapter.
(4) Had a civil judgment entered against him or her in an action
arising out of the applicant's negligent, reckless, or willful
failure to properly perform his or her obligation as a legal document
assistant or unlawful detainer assistant.
(5) Had his or her registration revoked pursuant to Section 6413.
(c) If the county clerk finds that the applicant has failed to
demonstrate having met the requisite requirements of Section 6402 or
6402.1, or that any of the paragraphs of subdivision (b) apply, the
county clerk, within three business days of submission of the
application and fee, shall return the application and fee to the
applicant with a notice to the applicant indicating the reason for
the denial and the method of appeal.
(d) The denial of an application may be appealed by the applicant
by submitting, to the director, the following:
(1) The completed application and notice from the county clerk
specifying the reasons for the denial of the application.
(2) A copy of any final judgment or order that resulted from any
conviction or civil judgment listed on the application.
(3) Any relevant information the applicant wishes to include for
the record.
(e) The director shall order the applicant's certificate of
registration to be granted if the director determines that the
issuance of a certificate of registration is not likely to expose
consumers to a significant risk of harm based on a review of the
application and any other information relating to the applicant's
unlawful act or unfair practice described in paragraphs (1) to (5),
inclusive, of subdivision (b). The director shall order the
applicant's certificate of registration to be denied if the director
determines that issuance of a certificate of registration is likely
to expose consumers to a significant risk of harm based on a review
of the application and any other information relating to the
applicant's unlawful act or unfair practice described in paragraphs
(1) to (5), inclusive, of subdivision (b). The director shall send
to the applicant and the county clerk a written decision listing the
reasons registration shall be granted or denied within 30 days of the
submission of the matter.
(f) If the director orders that the certificate of registration be
granted, the applicant may resubmit the application, with the
appropriate application fee and the written decision of the director.
The county clerk shall grant the certificate of registration to the
applicant within three business days of being supplied this
information.
(g) This section shall remain in effect only until January 1,
2003, or the date the director suspends the requirements of this
chapter applicable to legal document assistants pursuant to Section
6416, whichever first occurs and as of that date is repealed, unless
a later enacted statute, that is enacted before that date, deletes or
extends that date.
SEC. 12.6. Section 6406 is added to the Business and Professions
Code, to read:
6406. (a) A certificate of registration shall be effective for a
period of two years. Thereafter, a registrant shall file an
application for renewal of registration and pay the fee required by
Section 6404.
(b) This section shall become operative January 1, 2003, or the
date the director suspends the requirements of this chapter
applicable to legal document assistants pursuant to Section 6416,
whichever first occurs.
SEC. 13. Section 6407 of the Business and Professions Code is
amended to read:
6407. (a) The county clerk shall maintain a register of legal
document assistants, and a register of unlawful detainer assistants,
assign a unique number to each legal document assistant, or unlawful
detainer assistant, and issue an identification card to each one.
Additional cards for employees of legal document assistants or
unlawful detainer assistants shall be issued upon the payment of ten
dollars ($10) for each card. Upon renewal of registration, the same
number shall be assigned, provided there is no lapse in the period of
registration.
(b) The identification card shall be a card 3 1/2 inches by 2 1/4
inches, and shall contain at the top, the title "Legal Document
Assistant" or "Unlawful Detainer Assistant," as appropriate, followed
by the registrant's name, address, registration number, date of
expiration, and county of registration. It shall also contain a
photograph of the registrant in the lower left corner. The front of
the card, above the title, shall also contain the following statement
in 12-point boldface type: "This person is not a lawyer." The
front of the card, at the bottom, shall also contain the following
statement in 12-point boldface type: "The county clerk has not
evaluated this person's knowledge, experience, or services."
(c) This section shall remain in effect only until January 1,
2003, or the date the director suspends the requirements of this
chapter applicable to legal document assistants pursuant to Section
6416, whichever first occurs, and as of that date is repealed, unless
a later enacted statute, that is enacted before that date, deletes
or extends that date.
SEC. 14. Section 6407 is added to the Business and Professions
Code, to read:
6407. (a) The county clerk shall maintain a register of unlawful
detainer assistants, assign a unique number to each unlawful detainer
assistant, and issue an identification card to each one. Additional
cards for employees of unlawful detainer assistants shall be issued
upon the payment of ten dollars ($10) for each card. Upon renewal of
registration, the same number shall be assigned, provided there is
no lapse in the period of registration.
(b) The identification card shall be a card 3 1/2 inches by 2 1/4
inches, and shall contain at the top, the title "Unlawful Detainer
Assistant" followed by the registrant's name, address, registration
number, date of expiration, and county of registration. It shall
also contain a photograph of the registrant in the lower left corner.
(c) This section shall become operative January 1, 2003, or the
date the director suspends the requirements of this chapter
applicable to legal document assistants pursuant to Section 6416,
whichever first occurs.
SEC. 15. Section 6408 of the Business and Professions Code is
amended to read:
6408. The registrant's name, business address, telephone number,
registration number, and county of registration shall appear on any
solicitation or advertisement, and on any appropriate papers or
documents prepared or used by the registrant, including, but not
limited to, contracts, letterhead, business cards, correspondence,
documents, forms, claims, petitions, checks, receipts, money orders,
and pleadings.
This section shall remain in effect only until January 1, 2003, or
the date the director suspends the requirements of this chapter
applicable to legal document assistants pursuant to Section 6416,
whichever first occurs, and as of that date is repealed,
unless a later enacted statute, that
is enacted before that date, deletes or extends that date.
SEC. 16. Section 6408 is added to the Business and Professions
Code, to read:
6408. The registrant's registration number and county of
registration shall appear on any solicitation or advertisement, and
on the registrant's work product, including, but not limited to,
letterhead, correspondence, documents, forms, claims, petitions,
checks, receipts, money orders, pleadings, and other papers relating
to unlawful detainer claims or actions.
This section shall become operative January 1, 2003, or the date
the director suspends the requirements of this chapter applicable to
legal document assistants pursuant to Section 6416, whichever first
occurs.
SEC. 17. Section 6409 of the Business and Professions Code is
amended to read:
6409. No legal document assistant or unlawful detainer assistant
shall retain in his or her possession original documents of a client.
A legal document assistant or an unlawful detainer assistant shall
immediately return all of a client's original documents to the client
in any one or more of the following circumstances: if the client so
requests at any time; if the written contract required by Section
6410 is not executed or is rescinded, canceled, or voided for any
reason; or when the services described pursuant to paragraph (1) of
subdivision (b) of Section 6410 have been completed.
This section shall remain in effect only until January 1, 2003, or
the date the director suspends the requirements of this chapter
applicable to legal document assistants pursuant to Section 6416,
whichever first occurs, and as of that date is repealed, unless a
later enacted statute, that is enacted before that date, deletes or
extends that date.
SEC. 18. Section 6409 is added to the Business and Professions
Code, to read:
6409. No unlawful detainer assistant shall retain in his or her
possession original documents of a client.
This section shall become operative January 1, 2003, or the date
the director suspends the requirements of this chapter applicable to
legal document assistants pursuant to Section 6416, whichever first
occurs.
SEC. 19. Section 6410 of the Business and Professions Code is
amended to read:
6410. (a) Every legal document assistant or unlawful detainer
assistant who enters into a contract or agreement with a client to
provide services shall, prior to providing any services, provide the
client with a written contract, the contents of which shall be
prescribed by regulations adopted by the Department of Consumer
Affairs.
(b) The written contract shall include provisions relating to the
following:
(1) The services to be performed.
(2) The costs of the services to be performed.
(3) There shall be printed on the face of the contract in 12-point
boldface type a statement that the legal document assistant or
unlawful detainer assistant is not an attorney and may not perform
the legal services that an attorney performs.
(4) The contract shall contain a statement in 12-point boldface
type that the county clerk has not evaluated or approved the
registrant's knowledge or experience, or the quality of the
registrant's services.
(5) The contract shall contain a statement in 12-point boldface
type that the consumer may obtain information regarding free or
low-cost representation through a local bar association or legal aid
foundation and that the consumer may contact local law enforcement, a
district attorney, or a legal aid foundation if the consumer
believes that he or she has been a victim of fraud, the unauthorized
practice of law, or any other injury.
(6) The contract shall contain a statement in 12-point boldface
type that a legal document assistant or unlawful detainer assistant
is not permitted to engage in the practice of law, including
providing any kind of advice, explanation, opinion, or recommendation
to a consumer about possible legal rights, remedies, defenses,
options, selection of forms, or strategies.
(c) The provisions of the written contract shall be stated both in
English and in any other language comprehended by the client and
principally used in any oral sales presentation or negotiation
leading to execution of the contract. The legal document assistant
or the unlawful detainer assistant shall be responsible for
translating the contract into the language principally used in any
oral sales presentation or negotiation leading to the execution of
the contract.
(d) Failure of a legal document assistant or unlawful detainer
assistant to comply with subdivisions (a), (b), and (c) shall make
the contract or agreement for services voidable at the option of the
client. Upon the voiding of the contract, the legal document
assistant or unlawful detainer assistant shall immediately return in
full any fees paid by the client.
(e) In addition to any other right to rescind, the client shall
have the right to rescind the contract within 24 hours of the signing
of the contract. The client may cancel the contract by giving the
legal document assistant or the unlawful detainer assistant any
written statement to the effect that the contract is canceled. If
the client gives notice of cancellation by mail addressed to the
legal document assistant or unlawful detainer assistant, with
first-class postage prepaid, cancellation is effective upon the date
indicated on the postmark. Upon the voiding or rescinding of the
contract or agreement for services, the legal document assistant or
unlawful detainer assistant shall immediately return to the client
any fees paid by the client, except fees for services that were
actually, necessarily, and reasonably performed on the client's
behalf by the legal document assistant or unlawful detainer assistant
with the client's knowing and express written consent. The
requirements of this subdivision shall be conspicuously set forth in
the written contract.
(f) This section shall remain in effect only until January 1,
2003, or the date the director suspends the requirements of this
chapter applicable to legal document assistants pursuant to Section
6416, whichever first occurs, and as of that date is repealed, unless
a later enacted statute, that is enacted before that date, deletes
or extends that date.
SEC. 20. Section 6410 is added to the Business and Professions
Code, to read:
6410. (a) Every unlawful detainer assistant who enters into a
contract or agreement with a client to provide services shall, prior
to providing any services, provide the client with a written
contract, the contents of which shall be prescribed by regulations
adopted by the Department of Consumer Affairs.
(b) The written contract shall include provisions relating to the
following:
(1) The services to be performed.
(2) The costs of the services to be performed.
(3) There shall be printed on the face of the contract in 12-point
boldface type a statement that the unlawful detainer assistant is
not an attorney and may not perform the legal services that an
attorney performs.
(c) The provisions of the written contract shall be stated both in
English and, if the client is non-English speaking, in the language
of the client.
(d) Failure of an unlawful detainer assistant to comply with the
provisions of subdivisions (a), (b), and (c) shall make the contract
or agreement for services voidable at the option of the client. Upon
the voiding of the contract, the unlawful detainer assistant shall
immediately return in full any fees paid by the client.
(e) The client shall have the right to rescind the contract within
24 hours of the signing of the contract. Upon the voiding or
rescinding of the contract or agreement for services, the unlawful
detainer assistant shall immediately return to the client any fees
paid by the client, except fees for services that were actually,
necessarily, and reasonably performed on the client's behalf by the
unlawful detainer assistant. The requirements of this subdivision
shall be conspicuously set forth in the written contract in both
English and, if the client is non-English speaking, in the language
of the client.
(f) This section shall become operative January 1, 2003, or the
date the director suspends the requirements of this chapter
applicable to legal document assistants pursuant to Section 6416,
whichever first occurs.
SEC. 21. Section 6411 of the Business and Professions Code is
amended to read:
6411. It is unlawful for any person engaged in the business or
acting in the capacity of a legal document assistant or unlawful
detainer assistant to do any of the following:
(a) Make false or misleading statements to the consumer concerning
the subject matter, legal issues, or self-help service being
provided by the legal document assistant or unlawful detainer
assistant.
(b) Make any guarantee or promise to a client or prospective
client, unless the guarantee or promise is in writing and the legal
document assistant or unlawful detainer assistant has a reasonable
factual basis for making the guarantee or promise.
(c) Make any statement that the legal document assistant or
unlawful detainer assistant can or will obtain favors or has special
influence with a court, or a state or federal agency.
(d) Provide assistance or advice which constitutes the unlawful
practice of law pursuant to Section 6125, 6126, or 6127.
(e) Engage in the unauthorized practice of law, including, but not
limited to, giving any kind of advice, explanation, opinion, or
recommendation to a consumer about possible legal rights, remedies,
defenses, options, selection of forms, or strategies. A legal
document assistant shall complete documents only in the manner
prescribed by paragraph (3) of subdivision (d) of Section 6400.
(f) This section shall remain in effect only until January 1,
2003, or the date the director suspends the requirements of this
chapter applicable to legal document assistants pursuant to Section
6416, whichever first occurs, and as of that date is repealed, unless
a later enacted statute, that is enacted before that date, deletes
or extends that date.
SEC. 22. Section 6411 is added to the Business and Professions
Code, to read:
6411. It is unlawful for any person engaged in the business or
acting in the capacity of an unlawful detainer assistant to do any of
the following:
(a) Make false or misleading statements to a client while
providing services to that client.
(b) Make any guarantee or promise to a client, unless the
guarantee or promise is in writing and the unlawful detainer
assistant has some basis for making the guarantee or promise.
(c) Make any statement that the unlawful detainer assistant can or
will obtain special favors or has special influence with a court, or
a state or federal agency.
(d) Provide assistance or advice which constitutes the unlawful
practice of law pursuant to Section 6125, 6126, or 6127.
(e) This section shall become operative January 1, 2003, or the
date the director suspends the requirements of this chapter
applicable to legal document assistants pursuant to Section 6416,
whichever first occurs.
SEC. 23. Section 6412 of the Business and Professions Code is
amended to read:
6412. (a) Any owner or manager of residential or commercial
rental property, tenant, or other person who is awarded damages in
any action or proceeding for injuries caused by the acts of a
registrant while in the performance of his or her duties as a legal
document assistant or unlawful detainer assistant may recover damages
from the bond or cash deposit required by Section 6405.
(b) Whenever there has been a recovery against a bond or cash
deposit under subdivision (a) and the registration has not been
revoked pursuant to Section 6413, the registrant shall file a new
bond or deposit an additional amount of cash within 30 days to
reinstate the bond or cash deposit to the amount required by Section
6405. If the registrant does not file a bond, or deposit this amount
within 30 days, his or her certificate of registration shall be
revoked.
(c) This section shall remain in effect only until January 1,
2003, or the date the director suspends the requirements of this
chapter applicable to legal document assistants pursuant to Section
6416, whichever first occurs, and as of that date is repealed, unless
a later enacted statute, that is enacted before that date, deletes
or extends that date.
SEC. 24. Section 6412 is added to the Business and Professions
Code, to read:
6412. (a) Any owner or manager of residential or commercial
rental property, tenant, or other person who is awarded damages in
any action or proceeding for injuries caused by the acts of a
registrant while in the performance of his or her duties as an
unlawful detainer assistant may recover damages from the bond or cash
deposit required by Section 6405.
(b) Whenever there has been a recovery against a bond or cash
deposit under subdivision (a) and the registration has not been
revoked pursuant to Section 6413, the registrant shall file a new
bond or deposit an additional amount of cash within 30 days to
reinstate the bond or cash deposit to the amount required by Section
6405. If the registrant does not file a bond, or deposit this amount
within 30 days, his or her certificate of registration shall be
revoked.
(c) This section shall become operative January 1, 2003, or the
date the director suspends the requirements of this chapter
applicable to legal document assistants pursuant to Section 6416,
whichever first occurs.
SEC. 25. Section 6412.1 is added to the Business and Professions
Code, to read:
6412.1. (a) Any person injured by the unlawful act of a legal
document assistant or unlawful detainer assistant shall retain all
rights and remedies cognizable under law. The penalties, relief, and
remedies provided in this chapter are not exclusive, and do not
affect any other penalties, relief, and remedies provided by law.
(b) Any person injured by a violation of this chapter by a legal
document assistant or unlawful detainer assistant may file a
complaint and seek redress in any municipal or superior court for
injunctive relief, restitution, and damages. Attorney's fees shall
be awarded to the prevailing plaintiff.
(c) This section shall remain in effect only until January 1,
2003, or the date the director suspends the requirements of this
chapter applicable to legal document assistants pursuant to Section
6416, whichever first occurs, and as of that date is repealed, unless
a later enacted statute, that is enacted before that date, deletes
or extends that date.
SEC. 26. Section 6413 of the Business and Professions Code is
amended to read:
6413. The county clerk shall revoke the registration of a legal
document assistant or unlawful detainer assistant upon receipt of an
official document or record stating that the registrant has been
found guilty of the unauthorized practice of law pursuant to Section
6125, 6126, or 6127, has been found guilty of a misdemeanor violation
of this chapter, or that a civil judgment has been entered against
the registrant in an action arising out of the registrant's
negligent, reckless, or willful failure to properly perform his or
her obligation as a legal document assistant or unlawful detainer
assistant. The county clerk shall be given notice of the disposition
in any court action by the city attorney, district attorney, or
plaintiff, as applicable. A registrant whose registration is revoked
pursuant to this section may reapply for registration after three
years.
This section shall remain in effect only until January 1, 2003, or
the date the director suspends the requirements of this chapter
applicable to legal document assistants pursuant to Section 6416,
whichever first occurs, and as of that date is repealed, unless a
later enacted statute, that is enacted before that date, deletes or
extends that date.
SEC. 27. Section 6413 is added to the Business and Professions
Code, to read:
6413. The county clerk shall revoke the registration of an
unlawful detainer assistant upon receipt of an official document or
record stating that the registrant has been found guilty of the
unauthorized practice of law pursuant to Section 6125, 6126, or 6127,
has been found guilty of a misdemeanor violation of this chapter, or
that a civil judgment has been entered against the registrant in an
action arising out of the registrant's failure to properly perform
his or her obligation as an unlawful detainer assistant. The county
clerk shall be given notice of the disposition in any court action by
the city attorney, district attorney, or plaintiff, as applicable.
A registrant whose registration is revoked pursuant to this section
may reapply for registration after one year.
This section shall become operative January 1, 2003, or the date
the director suspends the requirements of this chapter applicable to
legal document assistants pursuant to Section 6416, whichever first
occurs.
SEC. 28. Section 6415 of the Business and Professions Code is
amended to read:
6415. A failure, by a person who engages in acts of a legal
document assistant or unlawful detainer assistant, to comply with any
of the requirements of Section 6401.6, 6402, 6408, or 6410, or
subdivision (a), (b), or (c) of Section 6411 is punishable as a
misdemeanor punishable by a fine of not less than one thousand
dollars ($1,000) or more than two thousand dollars ($2,000), as to
each client with respect to whom a violation occurs, or imprisonment
for not more than one year, or by both that fine and imprisonment.
Payment of restitution to a client shall take precedence over payment
of a fine.
This section shall remain in effect only until January 1, 2003, or
the date the director suspends the requirements of this chapter
applicable to legal document assistants pursuant to Section 6416,
whichever first occurs, and as of that date is repealed, unless a
later enacted statute, that is enacted before that date, deletes or
extends that date.
SEC. 29. Section 6415 is added to the Business and Professions
Code, to read:
6415. A failure, by a person who engages in acts of an unlawful
detainer assistant, to comply with any of the requirements of Section
6402 or 6408, or subdivision (a), (b), or (c) of Section 6411 is
punishable as a misdemeanor punishable by a fine of not less than one
thousand dollars ($1,000) or more than two thousand dollars
($2,000), as to each client with respect to whom a violation occurs,
or imprisonment for not more than one year, or by both that fine and
imprisonment. Payment of restitution to a client shall take
precedence over payment of a fine.
This section shall become operative January 1, 2003, or the date
the director suspends the requirements of this chapter applicable to
legal document assistants pursuant to Section 6416, whichever first
occurs.
SEC. 29.5. Section 6416 is added to the Business and Professions
Code, to read:
6416. The director may conduct an audit of all counties to
determine the number of legal document assistants registered pursuant
to this chapter. The director may suspend the requirements of this
chapter applicable to legal document assistants if the director finds
that fewer than 200 legal document assistants have registered with
all county clerks by December 31, 2000. Upon suspension of this
chapter by the director, unlawful detainer assistants shall be
subject to the remaining provisions of this chapter.
This section shall remain in effect only until January 1, 2003, and
as of that date is repealed, unless a later enacted statute, that is
enacted before January 1, 2003, deletes or extends that date.
SEC. 30. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution for certain
costs that may be incurred by a local agency or school district
because in that regard 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 XIIIB of the California Constitution.
However, notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
other costs mandated by the state, reimbursement to local agencies
and school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code. If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.