BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 877|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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CONSENT
Bill No: SB 877
Author: Harman (R)
Amended: 3/8/10
Vote: 21
SENATE JUDICIARY COMMITTEE : 4-0, 5/4/10
AYES: Corbett, Harman, Hancock, Leno
NO VOTE RECORDED: Walters
SUBJECT : Arbitration: legal representation
SOURCE : Securities Industry and Financial Markets
Association
DIGEST : This bill removes the sunset provision from the
out-of-state attorney arbitration counsel program, making
the program permanent.
ANALYSIS : Existing law provides that a party to an
arbitration has the right to be represented by an attorney
at any arbitration proceeding or hearing. (Code Civ. Proc.
Sec. 1282.4(a).)
Existing law authorizes an out-of-state attorney to appear
on behalf of a client in arbitration as long as the
out-of-state attorney files a certificate, as specified,
and once the certificate is approved by the arbitrator, the
certificate must be filed with the State Bar of California
and served on all parties to the arbitration. (Code Civ.
Proc. Sec. 1282.4(b-e).)
CONTINUED
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Existing law provides that the out-of-state attorney
participating in an arbitration is subject to the
disciplinary jurisdiction of the State Bar of California.
(Code Civ. Proc. Sec. 1282.4(f).)
Existing law provides that the above-described provisions
sunset on January 1, 2011. (Code Civ. Proc. Sec.
1282.4(k).)
This bill removes the sunset provision and make the
out-of-state arbitration requirements permanent.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 5/6/10)
Securities Industry and Financial Markets Association
(source)
California Dispute Resolution Council
ARGUMENTS IN SUPPORT : According to the author's office:
This bill does not seek to remedy a deficiency;
rather, it seeks to acknowledge that a previously
assigned deficiency has been adequately and
permanently addressed. The out-of-state arbitration
program is an effective, useful program that should be
a permanent fixture of California state law.
Accordingly, this bill seeks to implement the
suggestion of the State Bar that "consideration should
be given to whether the sunset provisions of CCP
[Sec.] 1282.4 should be removed, which would make the
requirements for out-of-state attorneys to appear in
California arbitration proceedings permanent."
The California Dispute Resolution Council (CDRC), notes
that "[t]his statute has worked to ensure that arbitrations
can proceed smoothly in our state, especially in those
cases where out of state counsel are the lawyers for the
parties involved in the arbitration. This is not an
attempt by these lawyers to avoid becoming members of the
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state bar but merely to perform their duties for their
clients when the arbitration occurs in the State of
California."
RJG:nl 5/6/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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