BILL NUMBER: AB 2570	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Hill
   (Coauthor: Senator Correa)

                        FEBRUARY 24, 2012

   An act to add Section 143.5 to the Business and Professions Code,
relating to professions and vocations.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2570, as introduced, Hill. Licensees: settlement agreements.
   Existing law provides that it is a cause for suspension,
disbarment, or other discipline for an attorney to agree or seek
agreement that the professional misconduct or the terms of a
settlement of a claim for professional misconduct are not to be
reported to the disciplinary agency, or to agree or seek agreement
that the plaintiff shall withdraw a disciplinary complaint or not
cooperate with an investigation or prosecution conducted by the
disciplinary agency.
   This bill would prohibit a licensee who is regulated by the
Department of Consumer Affairs or various boards, bureaus, or
programs, or an entity or person acting as an authorized agent of a
licensee, from including or permitting to be included a provision in
an agreement to settle a civil dispute that prohibits the other party
in that dispute from contacting, filing a complaint with, or
cooperating with the department, board, bureau, or program, or that
requires the other party to withdraw a complaint from the department,
board, bureau, or program. A licensee in violation of these
provisions would be subject to disciplinary action by the board,
bureau, or program. The bill would also prohibit a board, bureau, or
program from requiring its licensees in a disciplinary action that is
based on a complaint or report that has been settled in a civil
action to pay additional moneys to the benefit of any plaintiff in
the civil action.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 143.5 is added to the Business and Professions
Code, to read:
   143.5.  (a) No licensee who is regulated by a board, bureau, or
program within the Department of Consumer Affairs, nor an entity or
person acting as an authorized agent of a licensee, shall include or
permit to be included a provision in an agreement to settle a civil
dispute, whether the agreement is made before or after the
commencement of a civil action, that prohibits the other party in
that dispute from contacting, filing a complaint with, or cooperating
with the department, board, bureau, or program or that requires the
other party to withdraw a complaint from the department, board,
bureau, or program. A provision of that nature is void as against
public policy, and any licensee who includes or permits to be
included a provision of that nature in a settlement agreement is
subject to disciplinary action by the board, bureau, or program.
   (b) Any board, bureau, or program within the Department of
Consumer Affairs that takes disciplinary action against a licensee or
licensees based on a complaint or report that has also been the
subject of a civil action and that has been settled for monetary
damages providing for full and final satisfaction of the parties may
not require its licensee or licensees to pay any additional sums to
the benefit of any plaintiff in the civil action.
   (c) As used in this section, "board" shall have the same meaning
as defined in Section 22, and "licensee" means a person who has been
granted a license, as that term is defined in Section 23.7.