Amended in Senate March 6, 2014

Senate Bill No. 907

Introduced by Senator Monning

January 22, 2014

An act to add begin delete Section end delete begin insert Sections end insert 1297.18 begin insert and 1297.19 end insert to the Code of Civil Procedure, relating to international commercial disputes.

LEGISLATIVE COUNSEL’S DIGEST

SB 907, as amended, Monning. International commercial disputes: representation and assistance.

Existing law begin insert , the International Commercial Arbitration and Conciliation Act, end insert includes provisions that govern arbitration and conciliation proceedings for international commercial disputes. Existing law authorizes the parties in a conciliation proceeding to appear in person or be represented or assisted by any person of their choice, and provides that a person representing or assisting a party is not required to be a member of the legal profession or licensed to practice law in California.

This bill would make these provisions regarding representation and assistance of parties applicable to any arbitration or conciliation proceeding conducted pursuant to the statutory provisions that govern arbitration and conciliation of international commercial disputes. The bill would begin delete encourage the Judicial Council and the State Bar of California to revise specified rules to conform to these provisions. The bill also would encourage the State Bar to form a California International Commercial Dispute Resolution Council to perform certain promotional and informational functions, and would prohibit the State Bar from using annual membership fees or other state funds for this purpose. end delete begin insert express the intent of the Legislature to promote California’s interest in becoming a major center for international commercial arbitration, and would require the act to be construed liberally in order to effectuate that intent. end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete yes end delete begin insert no end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert (a) end insert begin insert   end insert begin insert The Legislature finds and declares all of the
following: end insert

begin insert

(1) The International Commercial Arbitration and Conciliation
Act was enacted in 1988 to recognize, support, and promote the
benefits of international arbitration and conciliation in California.

end insert begin insert

(2) California’s robust, internationally oriented economy and
concentration of large companies occupying positions of global
leadership make California an ideal venue for international
commercial arbitration.

end insert begin insert

(3) The economic benefits of being a center for international
commercial arbitration are substantial, broadly based, and
distributed across both state and municipal levels.

end insert begin insert

(b) Therefore, it is the intent of the Legislature that the
International Commercial Arbitration and Conciliation Act be
broadly construed so as to promote California’s interest in
becoming a major center for international commercial arbitration.

end insert

begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

Section 1297.18 is added to the Code of Civil
Procedure begin delete , end delete immediately following Section 1297.17, to read:

1297.18.  

In any proceeding or procedure conducted pursuant
to this title, the parties may appear in person or be represented or
assisted by any person of their choice. A person representing or
assisting a party need not be a member of the legal profession or
licensed to practice law in California.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 1297.19 is added to the end insert begin insert Code of Civil
Procedure end insert begin insert , to read: end insert

begin insert

begin insert 1297.19. end insert   

This title shall be construed liberally in order to
effectuate its legislative intent. The purposes of this title and all
of its provisions with respect to powers granted shall be broadly
interpreted to effectuate that intent and purposes and not as to any
limitation of powers.

end insert

begin delete

SEC. 2.  

(a) The Legislature encourages the Judicial Council to
revise California Rule of Court 9.43 and the State Bar of California
to revise its rules regarding out-of-state attorney arbitration counsel
to provide that these rules do not apply to arbitration or conciliation
proceedings pursuant to Title 9.3 (commencing with Section
1297.11) of the Code of Civil Procedure.

(b) The Legislature encourages the State Bar of California to
form a California International Commercial Dispute Resolution
Council to actively promote California as a center for international
commercial arbitration and conciliation and to inform the
international community that California law allows the parties to
international commercial dispute arbitration proceedings to be
represented or assisted by any person of their choice and that the
State of California positively encourages the growth of international
arbitration in California. The State Bar of California shall not use
annual membership fees or other state funds for purposes of this
subdivision.

end delete