BILL NUMBER: AB 1761 AMENDED BILL TEXT AMENDED IN ASSEMBLY MAY 1, 2000 AMENDED IN ASSEMBLY APRIL 24, 2000 AMENDED IN ASSEMBLY APRIL 4, 2000 AMENDED IN ASSEMBLY MARCH 20, 2000 INTRODUCED BY Assembly Members Brewer and Rod Pacheco (Coauthors: Assembly Members Cunneen and Maldonado) (Coauthor: Senator Speier) JANUARY 18, 2000 An act to add Chapter 5.6 (commencing with Section 6450) to Division 3 of, and to repeal Section 6450 of, the Business and Professions Code, relating to professions and vocations. LEGISLATIVE COUNSEL'S DIGEST AB 1761, as amended, Brewer. Professions and vocations: paralegals. Existing law defines the qualifications for and regulates the practice of various professions and vocations. This bill would establish the qualifications for practice as a paralegal and make it unlawful for any person to identify himself or herself as a paralegal unless he or she meets those qualifications and performs all services under the direct supervision of an active member of the State Bar of California. This bill would also make it unlawful for a paralegal to perform any services for a consumer, as defined, except as directed by the attorney or entity employing or contracting with the paralegal. This bill would provide for the recovery of attorney's fees in a civil action brought in connection with a violation of these provisions. This bill would prohibit a person who has been disbarred or suspended from the practice of law from using the title "paralegal" or "legal assistant" during the period of any disbarment or suspension. Because a violation of the bill's provisions would be punishable as an infraction or as a misdemeanor, as specified, this bill would impose a state-mandated local program by creating a new crime. 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. Chapter 5.6 (commencing with Section 6450) is added to Division 3 of the Business and Professions Code, to read: CHAPTER 5.6. PARALEGALS 6450. (a) "Paralegal" means a person who either contracts with or is employed by an attorney, law firm, corporation, governmental agency, or other entity and who performs substantial legal work under the direction and supervision of an active member of the State Bar of California, as defined in Section 6060, that has been specifically delegated by the attorney to him or her. Tasks performed by a paralegal are those traditionally performed by an attorney and include, but are not limited to, case planning, development, and management; legal research; interviewing clients; fact gathering and retrieving information; drafting and analyzing legal documents; and collecting, compiling, and utilizing technical information to make an independent decision and recommendation to an attorney. (b) A paralegal shall not give legal advice, represent a client in court, or set fees. A paralegal's fees shall be set by the attorney who supervises the paralegal's work. (c) A paralegal shall possess at least one of the following: (1) A certificate of completion of a paralegal program approved by the American Bar Association. (2) A certificate of completion of a paralegal program at a postsecondary institution that requires the successful completion of a minimum of 24 semester, or equivalent, units in law-related courses and that has been accredited by either the Bureau for Private Postsecondary and Vocational Education or another accrediting organization. (3) A baccalaureate degree or an advanced degree in any subject, a minimum of one year of law-related experience under the supervision of an active member of the State Bar of California, and a written declaration from this attorney stating that the person is qualified to perform paralegal tasks. (4) A high school diploma or general equivalency diploma, a minimum of three years of law-related experience under the supervision of an active member of the State Bar of California, and a written declaration from this attorney stating that the person is qualified to perform paralegal tasks. (d) All paralegals shall be required to certify completion every three years of four hours of mandatory continuing legal education in legal ethics. All continuing legal education courses shall meet the requirements of Section 6070. (e) A paralegal does not include a nonlawyer who provides legal services directly to members of the public or a legal document assistant or unlawful detainer assistant as defined in Section 6400. (f) If a legal document assistant, as defined in subdivision (c) of Section 6400, has registered, on or before January 1, 2001, as required by law, a business name that includes the word "paralegal," that person may continue to use that business name until he or she is required to renew registration. Thereafter, that person shall no longer be allowed to use the title "paralegal." (g) 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, use the title "paralegal" or "legal assistant." (h) This section shall remain in effect only until January 1, 2004, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2004, deletes or extends that date. 6450. (a) "Paralegal" means a person who either contracts with or is employed by an attorney, law firm, corporation, governmental agency, or other entity and who performs substantial legal work under the direction and supervision of an active member of the State Bar of California, as defined in Section 6060, that has been specifically delegated by the attorney to him or her. Tasks performed by a paralegal are those traditionally performed by an attorney and include, but are not limited to, case planning, development, and management; legal research; interviewing clients; fact gathering and retrieving information; drafting and analyzing legal documents; and collecting, compiling, and utilizing technical information to make an independent decision and recommendation to an attorney. (b) A paralegal shall not give legal advice, represent a client in court, or set fees. A paralegal's fees shall be set by the attorney who supervises the paralegal's work. (c) A paralegal shall possess at least one of the following: (1) A certificate of completion of a paralegal program approved by the American Bar Association. (2) A certificate of completion of a paralegal program at a postsecondary institution that requires the successful completion of a minimum of 24 semester, or equivalent, units in law-related courses and that has been accredited by either the Bureau for Private Postsecondary and Vocational Education or another accrediting organization. (3) A baccalaureate degree or an advanced degree in any subject, a minimum of one year of law-related experience under the supervision of an active member of the State Bar of California, and a written declaration from this attorney stating that the person is qualified to perform paralegal tasks. (d) All paralegals shall be required to certify completion every three years of four hours of mandatory continuing legal education in legal ethics. All continuing legal education courses shall meet the requirements of Section 6070. (e) A paralegal does not include a nonlawyer who provides legal services directly to members of the public, or a legal document assistant or unlawful detainer assistant as defined in Section 6400. (f) 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, use the title "paralegal" or "legal assistant." (g) This section shall become operative on January 1, 2004. 6451. It is unlawful for a paralegal to perform any services for a consumer except as directed by the attorney, law firm, corporation, government agency, or other entity that employs or contracts with the paralegal. Nothing in this section shall prohibit a paralegal who is employed by an attorney, law firm, governmental agency, or other entity from providing services to a consumer served by one of these entities if those services are specifically allowed by statute, case law, or court rule. "Consumer" means a natural person, firm, association, organization, partnership, business trust, corporation, or public entity. 6452. It is unlawful for a person to identify himself or herself as a paralegal on any advertisement, letterhead, business card or sign, or elsewhere unless he or she has met the qualifications of subdivision (c) of Section 6450 and performs all services under the direct supervision of an active member of the State Bar of California who is ultimately responsible for all of the services performed by the paralegal. 6453. The terms "paralegal," "legal assistant," "attorney assistant," "freelance paralegal," "independent paralegal," and "contract paralegal" are synonymous for purposes of this chapter. 6454. (a) Any consumer injured by a violation of this chapter 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 in this action to the prevailing plaintiff. (b) Any person who violates the provisions of Section 6451 or 6452 is guilty of an infraction for the first violation, which is punishable upon conviction by a fine of up to two thousand five hundred dollars ($2,500) as to each consumer with respect to whom a violation occurs, and is guilty of a misdemeanor for the second and each subsequent violation, which is punishable upon conviction by a fine of two thousand five hundred dollars ($2,500) as to each consumer with respect to whom a violation occurs, or imprisonment in a county jail for not more than one year, or by both that fine and imprisonment. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.