BILL ANALYSIS                                                                                                                                                                                                    






                           SENATE JUDICIARY COMMITTEE
                            Adam B. Schiff, Chairman
                           1999-2000 Regular Session


          AB 1858                                                A
          Assembly Member Romero                                 B
          As Amended June 26, 2000
          Hearing Date:  August 8, 2000                          1
          Business and Professions Code                          8
          GWW:cjt                                                5
                                                                 8

                                     SUBJECT
                                         
                    Immigration and Naturalization Services:
                -Lawyer Advertising and Immigration Consultants-

                                   DESCRIPTION  

          This bill would require that any advertisement by or on  
          behalf of a State Bar member published in the classified or  
          "yellow pages" section of a telephone or business  
          directory, which offers to provide legal services related  
          to immigration or naturalization services, shall include a  
          statement that the person is an active member of the State  
          Bar.  If the advertisement solicits the employment of a law  
          firm or corporation employing more than one attorney, the  
          advertisement shall disclose that services related to  
          immigration or naturalization provided by the firm or  
          corporation shall be provided by an active State Bar member  
          or by a person under the member's active supervision.  This  
          requirement would not apply to classified or "yellow pages"  
          listings of three lines or less, which state only the name,  
          address, and phone number of the listed entity.  

          This requirement would not apply to attorneys employed by  
          public agencies or by nonprofit entities registered with  
          the Secretary of State.

          This bill would also increase the maximum civil penalty for  
          violation of the immigration consultants law from $10,000  
          to $100,000. 

          (This analysis reflects author's amendments to be offered  
                                                                 
          (more)



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          in Committee.)

                                    BACKGROUND  

          Despite the enactment of recent laws requiring the  
          registration and bonding of immigration consultants, the  
          immigrant community is still besieged  with fraudulent  
          immigration consultants and their practices.

          A Los Angeles Times article highlighted the problem:   
          "bogus consultants who prey on unsuspecting newcomers" by  
          falsely representing themselves as immigration attorneys,  
          in violation of state law.  (Los Angeles Times, January 26,  
          2000.)  For example, the article states, "Fraudulent  
          consultants often gain the confidence of illegal immigrants  
          by offering friendly services in their native tongue.   
          Consultants sometimes suggest that they have inside  
          connections with the INS or some other federal agency."  In  
          one particularly egregious case cited in the article, a  
          "consultant" alternately represented himself as an attorney  
          and an INS official, even though he was neither.
         
                             CHANGES TO EXISTING LAW
           
          1.  Existing law  regulates the practice of law in California  
            and provides that any person who advertises or holds  
            himself or herself out as practicing or entitled to  
            practice law and who is not an active member of the State  
            Bar is guilty of a misdemeanor.  (Business and  
            Professions Code Section 6126. All references hereafter  
            are to this Code unless otherwise noted.) 

             Existing law  regulates lawyer advertising and defines  
            "advertise" or "advertisement" as any communication  
            disseminated by television, radio or any print medium or  
            any communication disseminated by means of a mailing  
            directed generally to members of the public that solicits  
            employment of the member's legal services.  (Section  
            6157.) 
           
             Existing law  prohibits, under the general unfair business  
            practices statute, untrue or misleading advertising, and  
            provides that a violation is a misdemeanor punishable by  
            imprisonment and/or a fine not exceeding $2,500.   
            (Section 17500.)
                                                                       




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             This bill  would require that any advertisement by or on  
            behalf of a State Bar member published in the classified  
            or "yellow pages" section of a telephone or business  
            directory, which seeks professional employment for the  
            lawyer to provide legal services related to immigration  
            or naturalization services, shall include a statement  
            that the person is an active member of the State Bar.  If  
            the advertisement solicits the employment of a law firm  
            or corporation employing more than one attorney, the  
            advertisement shall disclose that services related to  
            immigration or naturalization provided by the firm or  
            corporation shall be provided by an active State Bar  
            member or by a person under the member's active  
            supervision.  A violation would be subject to  
            disciplinary action by the State Bar.    

             The bill  would also require the disclosure to be in the  
            same language of the advertisement when another language  
            is used in the ad.   

            The requirement would not apply to attorneys employed by  
            public agencies or by nonprofit entities registered with  
            the Secretary of State.

          2.  Existing law  regulates the practice of immigration  
            consultants.  While licensed attorneys and those  
            authorized to represent individuals before the Board of  
            Immigration Appeals or the United States Immigration and  
            Naturalization Service (INS) are specifically permitted  
            to act as immigration consultants, any other person may  
            act as an "immigration consultant" to give nonlegal  
            assistance or advice on an immigration matter as long as  
            they meet the bonding requirement and other statutory  
            requirements.  Existing law also prohibits certain acts  
            by an immigration consultant, such as making false or  
            misleading statements or baseless promises to a client,  
            or making a statement that the consultant has special  
            influence with the INS.  A violation is punishable by a  
            civil penalty of up to $10, 000 per violation collectable  
            in a civil action brought by any injured person.  A  
            violation is also punishable as a misdemeanor, by a fine  
            of between $2,000 and $10,000 and/or imprisonment for up  
            to one year. (Section 22440 et seq.) 
          
                                                                       




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             This bill  would increase the maximum civil penalty to  
            $100,000.  Like existing law, the penalty would be  
            recoverable by the injured party in a civil action.

                                     COMMENT
           
          1.  Stated need for bill: disclosure of State Bar membership  

            According to the author's office, this bill is necessary  
            to stop the fraud being practiced upon immigrants and  
            refugees by dishonest predators who falsely represent  
            themselves as immigration attorneys or expert immigration  
            consultants.  The author believes that, by requiring  
            telephone and business directory legal advertising to  
            include a statement that the advertiser is a licensed  
            member of the bar when the advertisement offers  
            immigration or naturalization services, it would be  
            easier for consumers to identify legitimate lawyers.  

            According to the sponsor, the LA District Attorney's  
            Office, some non-attorney immigration consultants have  
            fraudulently and brazenly advertised their services in a  
            manner suggesting that they are licensed attorneys or  
            offer legal services.  This practice deceives  
            unsuspecting consumers.  

            In response to the problem, the bill would require  
            attorneys to indicate that they are active licensed  
            members of the bar in any telephone or business directory  
            advertisement offering the member's services relating to  
            immigration or naturalization.  The sponsor asserts that  
            this requirement will enable consumers to distinguish  
            between those advertisers who are licensed attorneys and  
            those that are not, since non-attorneys would not and  
            could not lawfully make such a claim. 

            One opponent objects to this provision, stating that  
            since California bar membership is not a requirement to  
            practice immigration law before the INS or the federal  
            Immigration Board, the requirement is overlybroad and  
            should instead target the immigration consultant who is  
            not authorized to provide legal services in any manner.  

            SHOULD THE BILL ALSO REQUIRE AN IMMIGRATION CONSULTANT  
            WHO IS NOT LICENSED TO PRACTICE LAW BEFORE THE INS OR THE  
                                                                       




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            IMMIGRATION BOARD, TO MAKE THAT DISCLOSURE IN ANY OF HIS  
            OR HER TELEPHONE OR BUSINESS DIRECTORY ADVERTISEMENTS?
             
            The current bill also fails to address the situation of  
            an out-of-state attorney who is not licensed to practice  
            in California, but is licensed to practice in the federal  
            courts and administrative agencies.  

            SHOULD THE DISCLOSURE PROVISION ALSO APPLY TO  
            ADVERTISEMENTS BY AN OUT-OF-STATE LAWYER WHO IS ADMITTED  
            TO PRACTICE BEFORE THE IMMIGRATION COURT?

            If the above two amendments are adopted, the bill would  
            allow consumers to get a complete picture of all  
            immigration consultants advertising their services by  
            requiring them to say what they are and what they are  
            not. 

            The disclosure requirement would not apply to attorneys  
            employed by public agencies or by nonprofit entities  
            registered with the Secretary of State.  According to the  
            sponsor, the exemption is appropriate because these  
            agencies and their attorneys are not a source of  
            fraudulent activity.  

          2.  Stated need for increase in civil penalty to $100,000  
            maximum
             
            The proposed increase in the civil penalty is necessary,  
            the author argues, to "offset the large amounts of money  
            that many consumers lose as a result of the unlawful  
            practice of law and to serve as a deterrence to those  
            defrauding consumers."  According to the author,  
            immigrants often spend thousands of dollars, sometimes  
            their entire savings, attempting to obtain legal work  
            permits or other immigration documents with the help of  
            an immigration consultant.  Information from the Los  
            Angeles District Attorney's Office indicates that the  
            costs of obtaining services from immigration consultants  
            can range from $600 to $25,000.
           
            Proponents also assert that immigrants can lose more than  
            money if a consultant bungles the application.  According  
            to the Los Angeles Times article, one immigrant paid a  
            consultant $2,500 to help him apply for permanent  
                                                                       




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            residency.  Instead of filing a permanent residency  
            application, the consultant submitted an application for  
            political asylum without notifying the immigrant.  The  
            immigrant knew he did not qualify for political asylum,  
            and the INS subsequently rejected the application.  The  
            consultant appealed the ruling but failed to advise the  
            client of the hearing date.  As a result, the INS ordered  
            the immigrant deported.  Nor is the practice isolated to  
            the reported case in the Los Angeles Times.  The Asian  
            Law Caucus, in support of AB 1858, writes that a number  
            of unsuspecting Hmong families have been bamboozled by  
            so-called immigration "specialists" who file meritless  
            asylum claims, resulting in deportation proceedings  
            against immigrants who thought they were obtaining a  
            legitimate means of remaining in the country.

            Thus, proponents argue, increasing the maximum civil  
            penalty from $10,000 to $100,000 would provide greater  
            deterrence and more approximate the harm done to some  
            victims.   The sponsor reports that in several  
            immigration fraud cases pursued by their office, the  
            "takings" have exceeded $100,000.   
             
          3.  Pending related legislation 

             AB 2687 (Margett) would require notaries public that  
            provide immigration form data entry services to be bonded  
            as immigration consultants under the Business and  
            Professions Code.  The bill was unanimously approved by  
            this Committee in June and was recently signed by the  
            Governor.
           
          Support:  Attorney General's Office; Asian Law Alliance;  
            Asian Law Caucus; 
                 California Immigrant Welfare Collaborative; The  
               Citizenship Project; 
                 El Colegio Popular; Maternal and Child Health  
               Access; Mexican 
                 American Bar Association of Los Angeles County;  
               Southern California 
                 Chinese Lawyers Association
           
          Opposition: Joseph Giannini, Esq. 

                                     HISTORY
                                                                       




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          Source: Los Angeles County District Attorney's Office

          Related Pending Legislation: AB 2687 (Margett) Chapter 194,  
          Stats. of 2000  
           
          Prior Legislation:  None Known 

          Prior Vote: Assembly Floor: 57 -16
                    Assembly Judiciary Committee:  10 - 3
           
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