BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 877|
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UNFINISHED BUSINESS
Bill No: SB 877
Author: Harman (R)
Amended: 8/20/10
Vote: 21
SENATE JUDICIARY COMMITTEE : 4-0, 5/4/10
AYES: Corbett, Harman, Hancock, Leno
NO VOTE RECORDED: Walters
SENATE FLOOR : 31-0, 5/13/10 (Consent)
AYES: Aanestad, Alquist, Ashburn, Cedillo, Cogdill, Correa,
Denham, DeSaulnier, Ducheny, Dutton, Florez, Hancock,
Harman, Hollingsworth, Huff, Kehoe, Leno, Liu, Lowenthal,
Negrete McLeod, Padilla, Pavley, Price, Romero, Runner,
Simitian, Steinberg, Strickland, Walters, Wolk, Yee
NO VOTE RECORDED: Calderon, Corbett, Cox, Oropeza, Wiggins,
Wright, Wyland, Vacancy, Vacancy
ASSEMBLY FLOOR : 76-0, 8/23/10 - See last page for vote
SUBJECT : Arbitration: legal representation
SOURCE : Securities Industry and Financial Markets
Association
DIGEST : This bill extends the sunset provision until
January 1, 2013, from the out-of-state attorney arbitration
counsel program.
Assembly Amendments extend, rather than remove, the sunset
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date, and add delete contingency language.
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).)
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 extends the sunset provision until January 1,
2013.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 8/20/10)
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
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a permanent fixture of California state law.
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 state bar
but merely to perform their duties for their clients when
the arbitration occurs in the State of California."
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall, Bill
Berryhill, Tom Berryhill, Block, Blumenfield, Bradford,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, De La Torre, De Leon,
DeVore, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,
Fuller, Gaines, Galgiani, Garrick, Gatto, Gilmore,
Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber,
Huffman, Jeffries, Jones, Knight, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Niello, Nielsen, Norby, V. Manuel Perez, Portantino,
Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio,
Audra Strickland, Swanson, Torlakson, Torres, Torrico,
Tran, Villines, Yamada, John A. Perez
NO VOTE RECORDED: Davis, Furutani, Vacancy, Vacancy
RJG:nl 8/24/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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