Bill Text: CA AB1939 | 2025-2026 | Regular Session | Amended
Bill Title: Professional fiduciaries: corporate practice.
Sponsorship: Partisan Bill (Republican 1)
Status: (Engrossed) 2026-06-15 - From committee: Do pass and re-refer to Com. on JUD. (Ayes 11. Noes 0.) (June 15). Re-referred to Com. on JUD. [AB1939 Detail]
Download: California-2025-AB1939-Amended.html
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Amended
IN
Senate
June 11, 2026 |
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Amended
IN
Assembly
May 18, 2026 |
CALIFORNIA LEGISLATURE—
2025–2026 REGULAR SESSION
Assembly Bill
No. 1939
| Introduced by Assembly Member Flora |
February 13, 2026 |
An act to amend Sections 6501, 6534, 6561, 6584, and 6592 of, and to add Article 7 (commencing with Section 6593) to Chapter 6 of Division 3 of, the Business and Professions Code, to amend Section 13401 of the Corporations Code, and to amend Sections 60.1, 1510, 1821, 2250, 2614.7, and 2643.1 of, to add Part 9.5 (commencing with Section 310) to Division 2 of, and to repeal Section 2340 of, the Probate Code, relating to professional fiduciaries.
LEGISLATIVE COUNSEL'S DIGEST
AB 1939, as amended, Flora.
Professional fiduciaries: corporate practice.
(1) Existing law, the Professional Fiduciaries Act, establishes, until January 1, 2028, the Professional Fiduciaries Bureau, and requires the bureau to license and regulate professional fiduciaries. Existing law defines various terms for these purposes. Existing law requires the bureau to maintain specified information in each licensee’s file, and requires a licensee to annually file with the bureau a statement under penalty of perjury containing specified information, including among other things, any licenses or professional certificates held by the licensee.
This bill, beginning January 1, 2028, 2029, would authorize licensees to
organize professional fiduciary professional corporations to provide professional fiduciary services, and would prescribe requirements and regulations for those professional corporations to provide fiduciary services. The bill would require the bureau to set the annual registration and annual renewal professional fiduciary professional corporations regulatory fee in the amount of at least $1,000 but not to exceed the reasonable costs of implementing these provisions.
This bill would require the information maintained by the bureau in each licensee’s file, and the annual statement filed by a licensee, to include additional information, including information related to whether the licensee is serving with or under a professional fiduciary corporation. By expanding the scope of
the crime of perjury, this bill would impose a state-mandated local program.
Existing law authorizes the bureau to suspend, revoke, deny, or impose other disciplinary action on a professional fiduciary license for specified causes, including, among other things, violating specified laws, rules, or regulations pertaining to duties or functions of a professional fiduciary.
This bill would add to that list of causes the failure of a licensee to, in a timely manner, to respond to inquiries or produce documents requested by the bureau, including inquiries and documents related to a professional fiduciary professional corporation.
corporation, within 60 days of when the request is made.
(2) Existing law, the Moscone-Knox Professional Corporation Act, defines and regulates professional corporations. Existing law provides that a professional organization renders professional services that may be lawfully rendered only pursuant to a license, certification, or registration authorized by, among others, the Business and Professions Code pursuant to a certificate of registration issued by the governmental agency regulating the profession, as specified.
This bill would require a professional fiduciary professional corporation to register with the Secretary of State, as provided, and would require the corporation, its officers, directors, shareholders, and employees rendering professional fiduciary services to be in compliance with the Moscone-Knox Professional Corporation Act.
bureau to issue a certificate of registration to an applicant that meets the requirements of the Moscone-Knox Professional Corporation Act, the Professional Fiduciaries Act, and other applicable law.
(3) Existing law generally regulates probate, guardianship, conservatorship, and other protective proceedings. Existing law defines various terms for these purposes, including “professional fiduciary.”
This bill would additionally define “professional fiduciary professional corporation” for these purposes.
Existing law prohibits a superior court from appointing a person to carry out the duties of a professional fiduciary unless that person holds a valid, unexpired, and unsuspended license as a professional fiduciary or is exempt from those licensing requirements, as specified.
This bill
would repeal those provisions and would instead prohibit a superior court from appointing a professional fiduciary as, or permitting a professional fiduciary to continue as, a guardian, conservator, personal representative, or trustee, unless the professional fiduciary satisfies one of specified requirements. The bill would make conforming changes.
(4) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
(5)
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 6501 of the Business and Professions Code is amended to read:6501.
As used in this chapter, the following terms have the following meanings:(a) “Act” means this chapter.
(b) “Bureau” means the Professional Fiduciaries Bureau within the Department of Consumer Affairs, established pursuant to Section 6510.
(c) “Client” means an individual who is served by a professional fiduciary.
(d) “Department” means the Department of Consumer Affairs.
(e) “Licensee” means a person who is licensed under this chapter as a professional fiduciary.
(f) (1) “Professional fiduciary” means any of the following:
(A) A person who acts as a guardian or conservator of the person, the estate, or the person and estate, for two or more individuals at the same time who are not related to the professional fiduciary or to each other.
(B) A personal representative of a decedent’s estate, as defined in Section 58 of the Probate Code, for two or more individuals at the same time who are not related to the professional fiduciary or to each other.
(C) A person who acts as a trustee, agent under a durable power of attorney for health care, or agent under a durable power of attorney for finances, for four or more individuals, at the same time.
(D) A person acting as a professional
fiduciary practice administrator, appointed pursuant to Section 2469 or 9765 of the Probate Code.
(2) In counting individuals under paragraph (1) to determine whether a person is a professional fiduciary:
(A) Individuals who are related to the fiduciary shall not be counted.
(B) All individuals who are related to each other shall be counted as one individual.
(C) All trustors who are related to each other shall be counted as one individual, and neither the number of trusts nor the number of beneficiaries of those trusts shall be counted.
(3) For purposes of this subdivision, “related” means related by blood, adoption, marriage, or registered domestic partnership.
(4) “Professional fiduciary” does not include any of the following:
(A) A trust company, as defined in Section 83 of the Probate Code.
(B) An FDIC-insured institution, or its holding companies, subsidiaries, or affiliates. For the purposes of this subparagraph, “affiliate” means an entity that shares an ownership interest with, or that is under the common control of, the FDIC-insured institution.
(C) A public agency, including the public guardian, public conservator, or other agency of the State of California or of a county of California or a regional center for persons with developmental disabilities, as defined in Section 4620 of the Welfare and Institutions Code.
(D) A nonprofit
corporation or charitable trust that is described in Section 501(c)(3) of the Internal Revenue Code and that satisfies all of the following requirements:
(i) Is an organization described in Section 509(a)(1), Section 509(a)(2), or Section 509(a)(3) of the Internal Revenue Code.
(ii) Has been in existence for at least five years.
(iii) Has total institutional funds as described in subdivision (e) of Section 18502 of the Probate Code according to its most recent audited financial statement with a value of at least two million dollars ($2,000,000) net of encumbrances.
(iv) Is acting as a trustee, incidental to the purposes for which it was organized, of a trust that meets at least one of the following conditions:
(I) It is a trust from which annual distributions are limited to income, a sum certain, or a fixed percentage of the net fair market value of the trust assets as described in Section 664(d) of the Internal Revenue Code governing charitable remainder trusts.
(II) It is a trust from which annual distributions are limited to a guaranteed annuity or a fixed percentage of the fair market value of the property as described in Section 2055(e)(2)(B) or Section 2522(c)(2)(B) of the Internal Revenue Code.
(III) It is a trust from which annual distributions are limited to income, including a pooled income fund from which annual distributions are limited to income as described in Section 642(c)(5) of the Internal Revenue Code governing pooled income funds.
(IV) It is a
trust as to which the value of the charitable interest was presently ascertainable upon creation of the trust and deductible for federal gift, estate, or income tax purposes under the Internal Revenue Code as in effect prior to enactment of the federal Tax Reform Act of 1969 (Public Law 91-172).
(E) A person employed by, or acting as an agent on behalf of, an entity or agency described in subparagraph (A), (B), (C), or (D) who is acting within the course and scope of that employment or agency, and a public officer of an agency described in subparagraph (C) acting in the course and scope of official duties.
(F) A person whose sole activity as a professional fiduciary is as a broker-dealer, broker-dealer agent, investment adviser, or investment adviser representative registered and regulated under the Corporate Securities Law of 1968 (Division 1 (commencing with Section 25000) of
Title 4 of the Corporations Code), the Investment Advisers Act of 1940 (15 U.S.C. Sec. 80b-1 et seq.), or the Securities Exchange Act of 1934 (15 U.S.C. Sec. 78a et seq.), or involves serving as a trustee to a company regulated by the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.).
(g) “Committee” means the Professional Fiduciaries Advisory Committee, as established pursuant to Section 6511.
SEC. 2.
Section 6534 of the Business and Professions Code is amended to read:6534.
(a) The bureau shall maintain the following information in each licensee’s file, shall make this information available to a court for any purpose, including the determination of the appropriateness of appointing, continuing the appointment of, or removing, the licensee as a conservator, guardian, trustee, personal representative of decedent’s estate, agent under a durable power of attorney for health care, agent under a durable power of attorney for finances, or a position arising from an appointment as a professional fiduciary practice administrator, and shall otherwise keep this information confidential, except as provided in subdivisions (b) and (c) of this section:(1) The names of the licensee’s current conservatees, wards, principals under a durable power of
attorney for health care, or principals under a durable power of attorney for finances, and the names of the trusts or estates currently administered by the licensee, whether the case is court supervised or noncourt supervised or whether the licensee is appointed with or serving under a professional fiduciary professional corporation.
(2) The aggregate dollar value of both of the following:
(A) All assets currently under the licensee’s supervision as a professional fiduciary.
(B) All assets currently under the licensee’s supervision for which the licensee is appointed with or serving under a professional fiduciary professional corporation.
(3) The licensee’s current addresses and telephone numbers for their place of business and place of residence.
(4) Whether the licensee has ever been removed for cause as a conservator, guardian, trustee, personal representative of a decedent’s estate, agent under a durable power of attorney for health care, or agent under a durable power of attorney for finances, or has ever resigned or settled a matter in which a complaint against the licensee has been filed with the court as a conservator, guardian, trustee, personal representative of a decedent’s estate, agent under a durable power of attorney for health care, or agent under a durable power of attorney for finances, or a position arising from an appointment as a professional fiduciary practice administrator, in a specific case.
(5) Whether a professional fiduciary professional corporation for which the licensee is appointed with or serving under, has ever been removed for cause or has ever resigned or settled a matter for which a
complaint against the professional fiduciary professional corporation or the licensee has been filed with the court.
(6) The circumstances causing a removal or resignation described in paragraph (4) or (5) and the case names, court locations, and case numbers associated with the removal or resignation.
(7) The case names, court locations, and case numbers of all conservatorship, guardianship, trust, or other estate administration cases, including cases for which the licensee is appointed with or serving under a professional fiduciary professional corporation, that are closed for which the licensee served as the conservator, guardian, trustee, agent under a durable power of attorney for finance or health care, personal representative of a decedent’s estate, or professional fiduciary practice administrator, whether the case is court supervised or noncourt supervised.
(8) Information regarding any discipline imposed upon the licensee by the bureau.
(9) Whether the licensee has filed for bankruptcy or held a controlling financial interest in a business that filed for bankruptcy in the last 10 years.
(10) Whether the licensee is appointed with or serving under a professional fiduciary professional corporation, and the name of the professional fiduciary professional corporation.
(b) The bureau shall make the information in paragraphs (2), (4), (5), (8), (9), and (10) of subdivision (a) available to the public.
(c) The bureau shall also publish information regarding licensees on the internet as specified in Section 27. The information shall include, but shall
not be limited to, information regarding license status and the information specified under subdivision (b).
SEC. 3.
Section 6561 of the Business and Professions Code is amended to read:6561.
(a) A licensee shall initially, and annually thereafter, file with the bureau a statement under penalty of perjury containing the following:(1) The licensee’s business address, telephone number, and facsimile number.
(2) Whether or not the licensee has been removed for cause as a conservator, guardian, trustee, personal representative of a decedent’s estate, agent under a durable power of attorney for health care, agent under a durable power of attorney for finances, or a position arising from appointment as a professional fiduciary practice administrator. The licensee may file an additional statement of the issues and facts pertaining to the case.
(3) Whether or not a professional fiduciary professional corporation, for which the licensee is appointed with or serving under, has been removed for cause. The licensee shall report removals and file an additional statement of issues and facts pertaining to the case.
(4) The names of the licensee’s current cases, including cases for which conservatees, wards, principals under a durable power of attorney for health care, or principals under a durable power of attorney for finances, and the names of trusts and decedent’s estates currently administered by the licensee, whether the licensee is appointed with or serving under a professional fiduciary professional corporation, administered by the licensee,
corporation or whether the cases are court supervised or noncourt supervised, and including court names, court locations, and case numbers where applicable.
(5) The case names, court locations, and case numbers of all conservatorship, guardianship, trust and other estate administration cases, including cases for which the licensee is appointed with or serving under a professional fiduciary professional corporation, that are closed for which the licensee served as the conservator, guardian, trustee, agent under a durable power of attorney for finance or health care, and personal representative of a decedent’s estate, whether the case is court supervised or noncourt supervised.
(6) Whether the licensee or the professional fiduciary professional corporation for which the licensee is appointed with or serving under has been found by a court to have breached a
fiduciary duty.
(7) Whether the licensee or the professional fiduciary professional corporation for which the licensee is appointed with or serving under has resigned or settled a matter in which a complaint against the licensee or the professional fiduciary professional corporation for which the licensee is appointed with or serving under has been filed with the court. The licensee shall provide the case number and a statement of the issues and facts pertaining to the allegations.
(8) Any licenses or professional certificates held by the licensee.
(9) Any ownership or beneficial interests in businesses or other enterprises held by the licensee or by a family member that receives or has received payments from a client of the licensee.
(10) Whether the
licensee has filed for bankruptcy or held a controlling financial interest in a business that filed for bankruptcy in the last 10 years.
(11) The name of any persons or entities that have an interest in the licensee’s professional fiduciary business.
(12) Whether the licensee has been convicted of a crime.
(13) Indicate on each case, whether the licensee is serving with or under a professional fiduciary professional corporation and include the name of the corporation.
(b) The statement by the licensee required by this section may be filed electronically with the bureau, in a form approved by the bureau. However, any additional statement filed under paragraph (2) of subdivision (a) shall be filed in writing.
SEC. 4.
Section 6584 of the Business and Professions Code is amended to read:6584.
A license issued under this chapter may be suspended, revoked, or denied or other disciplinary action may be imposed for one or more of the following causes:(a) Conviction of any felony or any misdemeanor, if the misdemeanor is substantially related to the functions and duties of a professional fiduciary. The record of conviction, or a certified copy thereof, is conclusive evidence of the conviction.
(b) Failure to notify the bureau of a conviction as required by paragraph (11) of subdivision (a) of Section 6561.
(c) Fraud or misrepresentation in obtaining a license.
(d) Fraud, dishonesty,
corruption, willful violation of duty, gross negligence or incompetence in practice, or unprofessional conduct in, or related to, the practice of a professional fiduciary. For purposes of this section, unprofessional conduct includes, but is not limited to, acts contrary to professional standards concerning any provision of law substantially related to the duties of a professional fiduciary.
(e) Failure to comply with, or to pay a monetary sanction imposed by, a court for failure to provide timely reports. The record of the court order, or a certified copy thereof, is conclusive evidence that the sanction was imposed.
(f) Failure to pay a civil penalty relating to the licensee’s professional fiduciary duties.
(g) The revocation of, suspension of, or other disciplinary action against, any other professional license by
the State of California or by another state. A certified copy of the revocation, suspension, or disciplinary action is conclusive evidence of that action.
(h) Violation of this chapter or of the applicable provisions of Division 4 (commencing with Section 1400), Division 4.5 (commencing with Section 4000), Division 4.7 (commencing with Section 4600), or Division 5 (commencing with Section 5000) of the Probate Code or of any of the statutes, rules, or regulations pertaining to duties or functions of a professional fiduciary.
(i) Failure of a licensee to, in a timely manner,
to
respond to inquiries or produce documents requested by the bureau, including inquiries and documents related to a professional fiduciary professional corporation. corporation, within 60 days of when the request is made.
SEC. 5.
Section 6592 of the Business and Professions Code is amended to read:6592.
(a) The fee for a professional fiduciary examination and reexamination shall be set by the bureau through regulation at the amount necessary to recover the actual costs to develop and administer the examination.(b) The license fee to obtain a professional fiduciary license shall be set by the bureau.
(c) The renewal fee for a professional fiduciary license shall be set by the bureau.
(d) The bureau shall set the fee to designate a license status of “retired.”
(e) The fee to designate a license status of “inactive” shall be set by the bureau.
(f) The bureau shall set the fee to reinstate a license to “active” from a status of “retired” or “inactive.”
(g) The bureau shall set the fees pursuant to subdivisions (b), (c), (d), (e), and (f) by regulation at an amount necessary to recover the reasonable costs to the bureau in carrying out those functions pursuant to this chapter.
(h) (1) The bureau shall set a fee for the implementation and regulation of Article 7 (commencing with Section 6593) by regulation. registration and renewal of professional fiduciary professional corporations.
(2) The amount of the fee imposed pursuant to paragraph (1) shall be at least one thousand dollars ($1,000) and shall not exceed reasonable costs of implementing and regulating Article 7 (commencing with Section 6593).
(3) The fee required by this subdivision shall be paid by a professional fiduciary professional corporation at the time of initial registration and on an annual basis. basis at the time of registration renewal.
SEC. 6.
Article 7 (commencing with Section 6593) is added to Chapter 6 of Division 3 of the Business and Professions Code, to read:Article 7. Professional Fiduciary Professional Corporations
6593.
(a) One or more licensees may organize a professional fiduciary professional corporation to provide professional fiduciary services that require licensure under this chapter.(b) With respect to a professional fiduciary professional corporation, the governmental agency referred to in the Moscone-Knox Professional Corporation Act (Part 4 (commencing with Section 13400) of Division 3 of Title 1 of the Corporations Code) is the Professional Fiduciaries Bureau.
(c) The bureau may adopt, repeal, or amend regulations for professional fiduciary professional corporations in accordance with the provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code).
6593.1.
(a) A professional fiduciary professional corporation is a corporation that is(b) The bureau shall issue a certificate of registration as a professional fiduciary professional corporation to an applicant that meets the requirements of the Moscone-Knox Professional Corporation Act
(Part 4 (commencing with Section 13400) of Division 3 of Title 1 of the Corporations Code), this article, and requirements established by the bureau.
(c) Each professional fiduciary professional corporation shall renew its registration annually and shall pay the renewal fee set by the bureau in accordance with Section 6592.
6593.2.
Each of the following requirements apply to a professional fiduciary professional corporation:(a) A professional fiduciary professional corporation shall register with the Secretary of State in accordance with the Corporations Code.
(b) The professional fiduciary professional corporation, its officers, directors, shareholders, and employees rendering professional fiduciary services shall comply with the Moscone-Knox Professional Corporation Act (Part 4 (commencing with Section 13400) of Division 3 of Title 1 of the Corporations Code).
(c) Any individual providing professional fiduciary services on behalf of the corporation shall be a
licensee actively licensed with the bureau to be considered a qualified person for the purposes of Section 13408 of the Corporations Code.
(d) A licensee serving as an officer, director, shareholder, or employee of the corporation shall not be exempt from individual discipline for violations of this act, bureau regulations, or other applicable laws and regulations.
(e) Any income of the corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined in Section 13401 of the Corporations Code, shall not accrue to the benefit of that shareholder or their shares in the corporation.
(f) The professional fiduciary professional corporation shall not permit an unqualified person to serve as an officer, director, shareholder, or licensed employee.
(g)A professional fiduciary professional corporation name shall contain the last name of at least one current or former qualified person.
(h)
(g) The licensee or licensees named on the Secretary of State registration shall serve as the primary contact for the bureau.
(i)
(h) A professional fiduciary professional corporation or agent of a fiduciary corporation shall not bill or impose any costs or fees to a client for incorporation or corporation name changes with the Secretary of State or on appointing documents or other records.
6593.3.
(a) Upon request of the bureau, each professional fiduciary professional corporation shall provide to the bureau a corporation-wide report consisting of all of the following information:(1) The full name, license number, address, and telephone number for any licensee contained in the name of the corporation.
(2) The full names and license numbers of all officers, directors, shareholders, and licensed employees of the corporation.
(3) The corporation entity number as issued by the Secretary of State and current statement of information filed with the Secretary of State.
(4) A client log containing all of the following:
(A) A list of all case names, whether the cases are court supervised or noncourt supervised, the date the corporation was appointed, and the responsible licensed professional fiduciary on the case.
(B) The court location and case number for each case that is supervised by a court.
(C) The aggregate managed asset value of all matters under the management of the corporation.
(b) The corporation-wide report required by subdivision (a) is an investigatory or security file that is compiled for licensing purposes, as described in Section 7923.600 of the Government Code, that shall not be disclosed to the public pursuant to the California Public Records
Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), except in any of the following circumstances:
(1) In the course of any disciplinary proceeding by the bureau after the filing of a formal accusation.
(2) In the course of any legal action to which the bureau is a party.
(3) In response to an official inquiry from a city, county, state, or federal agency.
(4) In response to a subpoena or summons enforceable by order of a court.
(5) When otherwise specifically required by law.
(c) The failure of a professional fiduciary professional corporation to submit the corporation-wide report required
by subdivision (a) within 60 days of the request, or to respond to an inquiry from the bureau related to the corporation within 60 days of the request, shall be considered unprofessional conduct as a violation of this section and pursuant to Section 6584.
6593.4.
(a) If a professional fiduciary professional corporation is appointed in a matter in violation of paragraph (2) of subdivision (c) of Section 310 of the Probate Code, then both of the following shall apply:(1) The appointment of a professional fiduciary professional corporation in that matter shall be considered void and treated by the relevant jurisdiction as if no appointment was made.
(2) The professional fiduciary professional corporation shall do all of the following:
(A) Immediately resign the appointment.
(B) Notify the court or party that
appointed the professional fiduciary professional corporation of the resignation.
(C) Cooperate with all efforts to have a successor appointed.
(D) Waive compensation for any services related to the resignation and the appointment of a successor.
(b) A professional fiduciary professional corporation or agent of the professional fiduciary professional corporation is prohibited from billing or imposing any costs or fees for any services performed or appointment changes while the professional fiduciary professional corporation is improperly named.
(c) Failure of the professional fiduciary corporation to resign pursuant to this section shall subject all officers, directors, shareholders, and licensed employees to discipline for unprofessional conduct as a
violation of this section and pursuant to Section 6584.
(d) For a matter that is not supervised by a court and not prohibited by paragraph (2) of subdivision (c) of Section 310 of the Probate Code, a professional fiduciary professional corporation may serve only when a licensee is designated as the responsible person on the matter.
6593.5.
This article shall become operative on January 1,As used in this part:
(a)“Professional services” means any type of professional services that may be lawfully rendered only pursuant to a license, certification, or registration authorized by the Business and Professions Code, the Chiropractic Act, or the Osteopathic Act.
(b)“Professional corporation” means a corporation organized under the General Corporation Law or pursuant to subdivision (b) of Section 13406 that is engaged in rendering professional services in a single profession, except as otherwise authorized in Section 13401.5, pursuant to a certificate of registration issued by the governmental agency regulating the profession as herein
provided and that in its practice or business designates itself as a professional or other corporation as may be required by statute. However, any professional corporation or foreign professional corporation rendering professional services by persons duly licensed by the Medical Board of California or any examining committee under the jurisdiction of the board, the Podiatric Medical Board of California, the Osteopathic Medical Board of California, the Dental Board of California, the Dental Hygiene Board of California, the California State Board of Pharmacy, the Veterinary Medical Board, the California Architects Board, the Court Reporters Board of California, the Board of Behavioral Sciences, the Speech-Language Pathology and Audiology and Hearing Aid Dispensers Board, the Board of Registered Nursing, the State Board of Optometry, the Professional Fiduciaries Bureau, or the California Board of Occupational
Therapy shall not be required to obtain a certificate of registration in order to render those professional services.
(c)“Foreign professional corporation” means a corporation organized under the laws of a state of the United States other than this state that is engaged in a profession of a type for which there is authorization in the Business and Professions Code for the performance of professional services by a foreign professional corporation.
(d)“Licensed person” means any natural person who is duly licensed under the provisions of the Business and Professions Code, the Chiropractic Act, or the Osteopathic Act to render the same professional services as are or will be rendered by the professional corporation or foreign professional corporation of which the person is, or
intends to become, an officer, director, shareholder, or employee.
(e)“Disqualified person” means a licensed person who for any reason becomes legally disqualified (temporarily or permanently) to render the professional services that the particular professional corporation or foreign professional corporation of which they are an officer, director, shareholder, or employee is or was rendering.
SEC. 8.SEC. 7.
Section 60.1 of the Probate Code is amended to read:60.1.
(a) “Professional fiduciary” means a person who is a professional fiduciary as defined under subdivision (f) of Section 6501 of the Business and Professions Code.(b) “Professional fiduciary professional corporation” means a professional fiduciary professional corporation, as provided for in Article 7 (commencing with Section 6593) of Chapter 6 of Division 3 of the Business and Professions Code, organized under the Moscone-Knox Professional Corporation Act (Part 4 (commencing with Section 13400) of Division 3 of Title 1 of the Corporations Code).
SEC. 9.SEC. 8.
Part 9.5 (commencing with Section 310) is added to Division 2 of the Probate Code, to read:PART 9.5. Professional Fiduciaries
310.
A superior court shall not appoint a professional fiduciary or a professional fiduciary professional corporation as a guardian, conservator, personal representative, or trustee, or permit a professional fiduciary or a professional fiduciary professional corporation to continue in any of those offices, unless the professional fiduciary or the professional fiduciary professional corporation satisfies any of the following:(a) Holds a current, unsuspended license issued pursuant to Section 6535 of the Business and Professions Code to act or hold themselves out to the public as a professional fiduciary.
(b) Is exempt from the licensing requirements in Article 3 (commencing with Section 6530) of Chapter 6 of
Division 3 of the Business and Professions Code.
(c) (1) Except as provided in paragraph (2), is a professional fiduciary professional corporation, organized as a professional corporation under the Moscone-Knox Professional Corporation Act (Part 4 (commencing with Section 13400) of Division 3 of Title 1 of the Corporations Code) and as provided for in Article 7 (commencing with Section 6593) of Chapter 6 of Division 3 of the Business and Professions Code. When making an appointment pursuant to this paragraph, the petition and appointment shall specify the licensed professional fiduciary having primary responsibility for the matter.
(2) Notwithstanding paragraph (1), a professional fiduciary professional corporation shall not be appointed as any of the following:
(A) Guardian of the person of a
ward under Part 2 (commencing with Section 1500) of Division 4.
(B) Conservator of the person of a conservatee under Part 3 (commencing with Section 1800) of Division 4.
(C) Any office under Division 4.7 (commencing with Section 4600).
311.
A person shall not act or hold themselves out to the public as a professional fiduciary unless they are licensed as a professional fiduciary under Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code.SEC. 10.SEC. 9.
Section 1510 of the Probate Code is amended to read:1510.
(a) A relative or other person on behalf of the minor, or the minor if 12 years of age or older, may file a petition for the appointment of a guardian of the minor. A relative may file a petition for the appointment of a guardian under this section regardless of the relative’s immigration status.(b) The petition shall request that a guardian of the person or estate of the minor, or both, be appointed, shall specify the name and address of the proposed guardian and the name and date of birth of the proposed ward, and shall state that the appointment is necessary or convenient.
(c) The petition shall set forth, so far as is known to the petitioner, the names and addresses of all of the following:
(1) The parents of the proposed ward.
(2) The person having legal custody of the proposed ward and, if that person does not have the care of the proposed ward, the person having the care of the proposed ward.
(3) The relatives of the proposed ward within the second degree.
(4) In the case of a guardianship of the estate, the spouse of the proposed ward.
(5) Any person nominated as guardian for the proposed ward under Section 1500 or 1501.
(6) In the case of a guardianship of the person involving an Indian child, any Indian custodian and the Indian child’s tribe.
(d) If the petitioner or proposed guardian is a professional fiduciary, as described in Section 310, who is required to be licensed under the Professional Fiduciaries Act (Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code), the petition shall include the following:
(1) The petitioner’s or proposed guardian’s proposed hourly fee schedule or another statement of their proposed compensation from the estate of the proposed ward for services performed as a guardian. The petitioner’s or proposed guardian’s provision of a proposed hourly fee schedule or another statement of their proposed compensation, as required by this paragraph, shall not preclude a court from later reducing the petitioner’s or proposed guardian’s fees or other compensation.
(2) Unless a petition for appointment of a temporary guardian that contains the
statements required by this paragraph is filed together with a petition for appointment of a guardian, both of the following:
(A) A statement of the petitioner’s or proposed guardian’s license information.
(B) A statement explaining who engaged the petitioner or proposed guardian or how the petitioner or proposed guardian was engaged to file the petition for appointment of a guardian or to agree to accept the appointment as guardian and what prior relationship the petitioner or proposed guardian had with the proposed ward or the proposed ward’s family or friends.
(e) If the proposed ward is a patient in or on leave of absence from a state institution under the jurisdiction of the State Department of State Hospitals or the State Department of Developmental Services and that fact is known to the petitioner or proposed
guardian, the petition shall state that fact and name the institution.
(f) The petition shall state, so far as is known to the petitioner or proposed guardian, whether or not the proposed ward is receiving or is entitled to receive benefits from the Veterans Administration and the estimated amount of the monthly benefit payable by the Veterans Administration for the proposed ward.
(g) If the petitioner or proposed guardian has knowledge of any pending adoption, juvenile court, marriage dissolution, domestic relations, custody, or other similar proceeding affecting the proposed ward, the petition shall disclose the pending proceeding.
(h) If the petitioners or proposed guardians have accepted or intend to accept physical care or custody of the child with intent to adopt, whether formed at the time of placement or
formed subsequent to placement, the petitioners or proposed guardians shall so state in the guardianship petition, whether or not an adoption petition has been filed.
(i) If the proposed ward is or becomes the subject of an adoption petition, the court shall order the guardianship petition consolidated with the adoption petition, and the consolidated case shall be heard and decided in the court in which the adoption is pending.
(j) If the proposed ward is or may be an Indian child, the petition shall state that fact.
SEC. 11.SEC. 10.
Section 1821 of the Probate Code is amended to read:1821.
(a) (1) The petition shall request that a conservator be appointed for the person or estate, or both, shall specify the name, address, and telephone number of the proposed conservator and the name, address, and telephone number of the proposed conservatee, and state the reasons why a conservatorship is necessary. Unless the petitioner or proposed conservator is a bank or other entity authorized to conduct the business of a trust company, the petitioner or proposed conservator shall also file supplemental information as to why the appointment of a conservator is required. The supplemental information to be submitted shall include a brief statement of facts addressed to each of the following categories:(A) The inability of the proposed
conservatee to properly provide for their own needs for physical health, food, clothing, or shelter.
(B) The location and nature of the proposed conservatee’s residence and the ability of the proposed conservatee to live in the residence while under conservatorship.
(C) Alternatives to conservatorship considered by the petitioner or proposed conservator and reasons why those alternatives are not suitable, alternatives tried by the petitioner or proposed conservators, if any, including details as to the length and duration of attempted alternatives and the reasons why those alternatives do not meet the conservatee’s needs. Those alternatives include, but are not limited to, all of the following:
(i) Supported decisionmaking agreements, as defined in Section 21001 of the Welfare and Institutions Code.
(ii) Powers of Attorney set forth in Division 4.5 (commencing with Section 4000).
(iii) Advanced Health Care Directives set forth in Chapter 1 (commencing with Section 4670) of Part 2 of Division 4.7.
(iv) Designations of a health care surrogate as set forth in Section 4711.
(D) Health or social services provided to the proposed conservatee during the year immediately preceding the filing of the petition, when the petitioner or proposed conservator has information as to those services.
(E) The substantial inability of the proposed conservatee to manage their own financial resources, or to resist fraud or undue influence.
(2) The
facts required to address the categories set forth in subparagraphs (A) to (E), inclusive, of paragraph (1) shall be set forth by the petitioner or proposed conservator if the proposed conservator has knowledge of the facts or by the declarations or affidavits of other persons having knowledge of those facts.
(3) If any of the categories set forth in subparagraphs (A) to (E), inclusive, of paragraph (1) are not applicable to the proposed conservatorship, the petitioner or proposed conservator shall so indicate and state on the supplemental information form the reasons therefor.
(4) The Judicial Council shall develop a supplemental information form for the information required pursuant to subparagraphs (A) to (E), inclusive, of paragraph (1) after consultation with individuals or organizations approved by the Judicial Council, who represent public conservators, court investigators,
the State Bar, specialists with experience in performing assessments and coordinating community-based services, and legal services for the elderly and disabled.
(5) The supplemental information form shall be separate and distinct from the form for the petition. The supplemental information shall be confidential and shall be made available only to parties, persons given notice of the petition who have requested this supplemental information or who have appeared in the proceedings, their attorneys, and the court. The court shall have discretion at any other time to release the supplemental information to other persons if it would serve the interests of the conservatee. The clerk of the court shall make provision for limiting disclosure of the supplemental information exclusively to persons entitled thereto under this section.
(b) The petition shall set forth, so far as they are
known to the petitioner or proposed conservator, the names and addresses of the spouse or domestic partner, and of the relatives of the proposed conservatee within the second degree. If no spouse or domestic partner of the proposed conservatee or relatives of the proposed conservatee within the second degree are known to the petitioner or proposed conservator, the petition shall set forth, so far as they are known to the petitioner or proposed conservator, the names and addresses of the following persons who, for the purposes of Section 1822, shall all be deemed to be relatives:
(1) A spouse or domestic partner of a predeceased parent of a proposed conservatee.
(2) The children of a predeceased spouse or domestic partner of a proposed conservatee.
(3) The siblings of the proposed conservatee’s parents, if any, but if
none, then the natural and adoptive children of the proposed conservatee’s parents’ siblings.
(4) The natural and adoptive children of the proposed conservatee’s siblings.
(c) If the petitioner or proposed conservator is a professional fiduciary, as described in Section 310, who is required to be licensed under the Professional Fiduciaries Act (Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code), the petition shall include the following:
(1) The petitioner’s or proposed conservator’s proposed hourly fee schedule or another statement of their proposed compensation from the estate of the proposed conservatee for services performed as a conservator. The petitioner’s or proposed conservator’s provision of a proposed hourly fee schedule or another statement of their proposed
compensation, as required by this paragraph, shall not preclude a court from later reducing the petitioner’s or proposed conservator’s fees or other compensation.
(2) Unless a petition for appointment of a temporary conservator that contains the statements required by this paragraph is filed together with a petition for appointment of a conservator, both of the following:
(A) A statement of the petitioner’s or proposed conservator’s license information.
(B) A statement explaining who engaged the petitioner or proposed conservator or how the petitioner or proposed conservator was engaged to file the petition for appointment of a conservator or to agree to accept the appointment as conservator and what prior relationship the petitioner or proposed conservator had with the proposed conservatee or the proposed
conservatee’s family or friends.
(d) If the petition is filed by a person other than the proposed conservatee, the petition shall include a declaration of due diligence showing both of the following:
(1) Either the efforts to find the proposed conservatee’s relatives or why it was not feasible to contact any of them.
(2) Either the preferences of the proposed conservatee concerning the appointment of a conservator and the appointment of the proposed conservator or why it was not feasible to ascertain those preferences.
(e) If the petition is filed by a person other than the proposed conservatee, the petition shall state whether or not the petitioner is a creditor or debtor, or the agent of a creditor or debtor, of the proposed conservatee.
(f) If the proposed conservatee is a patient in, or on leave of absence from, a state institution under the jurisdiction of the State Department of State Hospitals or the State Department of Developmental Services and that fact is known to the petitioner or proposed conservator, the petition shall state that fact and name the institution.
(g) The petition shall state, so far as is known to the petitioner or proposed conservator, whether or not the proposed conservatee is receiving, or is entitled to receive, benefits from the Veterans Administration and the estimated amount of the monthly benefit payable by the Veterans Administration for the proposed conservatee.
(h) The petition may include an application for any order or orders authorized under this division, including, but not limited to, orders under Chapter 4
(commencing with Section 1870).
(i) The petition may include a further statement that the proposed conservatee is not willing to attend the hearing on the petition, does not wish to contest the establishment of the conservatorship, and does not object to the proposed conservator or prefer that another person act as conservator.
(j) (1) In the case of an allegedly developmentally disabled adult, the petition shall set forth the following:
(A) The nature and degree of the alleged disability, the specific duties and powers requested by or for the limited conservator, and the limitations of civil and legal rights requested to be included in the court’s order of appointment.
(B) Whether or not the proposed limited conservatee is, or is
alleged to be, developmentally disabled.
(2) Reports submitted pursuant to Section 416.8 of the Health and Safety Code meet the requirements of this section, and conservatorships filed pursuant to Article 7.5 (commencing with Section 416) of Chapter 2 of Part 1 of Division 1 of the Health and Safety Code are exempt from providing the supplemental information required by this section, as long as the guidelines adopted by the State Department of Developmental Services for regional centers are publicly accessible via the department’s internet website and require the same information that is required pursuant to this section.
(k) The petition shall state, so far as is known to the petitioner, whether or not the proposed conservatee is a member of a federally recognized Indian tribe. If so, the petition shall state the name of the tribe, the state in which the tribe is located, whether
the proposed conservatee resides on tribal land, and whether the proposed conservatee is known to own property on tribal land. For the purposes of this subdivision, “tribal land” means land that is, with respect to a specific Indian tribe and the members of that tribe, “Indian country” as defined in Section 1151 of Title 18 of the United States Code.
SEC. 12.SEC. 11.
Section 2250 of the Probate Code is amended to read:2250.
(a) On or after the filing of a petition for appointment of a guardian or conservator, any person entitled to petition for appointment of the guardian or conservator may file a petition for appointment of:(1) A temporary guardian of the person or estate, or both.
(2) A temporary conservator of the person or estate, or both.
(b) The petition shall state facts that establish good cause for appointment of the temporary guardian or temporary conservator. The court, upon that petition or other showing as it may require, may appoint a temporary guardian of the person or estate, or both, or a temporary conservator of the person or estate, or
both, to serve pending the final determination of the court upon the petition for the appointment of the guardian or conservator.
(c) If the petitioner, proposed guardian, or proposed conservator is a professional fiduciary, as described in Section 310, who is required to be licensed under the Professional Fiduciaries Act (Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code), the petition for appointment of a temporary guardian or temporary conservator shall include the following:
(1) The petitioner’s, proposed guardian’s, or proposed conservator’s proposed hourly fee schedule or another statement of their proposed compensation from the estate of the proposed ward or proposed conservatee for services performed as a guardian or conservator. The petitioner’s, proposed guardian’s, or proposed conservator’s provision of a proposed hourly fee
schedule or another statement of their proposed compensation, as required by this paragraph, shall not preclude a court from later reducing the petitioner’s, proposed guardian’s, or proposed conservator’s fees or other compensation.
(2) Unless a petition for appointment of a guardian or conservator that contains the statements required by this paragraph is filed together with a petition for appointment of a temporary guardian or temporary conservator, both of the following:
(A) A statement of the petitioner’s, proposed guardian’s, or proposed conservator’s registration or license information.
(B) A statement explaining who engaged the petitioner, proposed guardian, or proposed conservator or how the petitioner, proposed guardian, or proposed conservator was engaged to file the petition for appointment of a temporary
guardian or temporary conservator or to agree to accept the appointment as temporary guardian or temporary conservator and what prior relationship the petitioner, proposed guardian, or proposed conservator had with the proposed ward or proposed conservatee or the proposed ward’s or proposed conservatee’s family or friends.
(d) If the petition is filed by a party other than the proposed conservatee, the petition shall include a declaration of due diligence showing both of the following:
(1) Either the efforts to find the proposed conservatee’s relatives named in the petition for appointment of a general conservator or why it was not feasible to contact any of them.
(2) Either the preferences of the proposed conservatee concerning the appointment of a temporary conservator and the appointment of the proposed temporary
conservator or why it was not feasible to ascertain those preferences.
(e) Unless the court for good cause otherwise orders, at least five court days before the hearing on the petition, notice of the hearing shall be given as follows:
(1) Notice of the hearing shall be personally delivered to the proposed ward if the proposed ward is 12 years of age or older, to the parent or parents of the proposed ward, and to any person having a valid visitation order with the proposed ward that was effective at the time of the filing of the petition. Notice of the hearing shall not be delivered to the proposed ward if the proposed ward is under 12 years of age. In a proceeding for temporary guardianship of the person, evidence that a custodial parent has died or become incapacitated, and that the petitioner or proposed guardian is the nominee of the custodial parent, may constitute good cause
for the court to order that this notice not be delivered.
(2) Notice of the hearing shall be personally delivered to the proposed conservatee, and notice of the hearing shall be delivered pursuant to Section 1215 on the persons required to be named in the petition for appointment of conservator. If the petition states that the petitioner and the proposed conservator have no prior relationship with the proposed conservatee and have not been nominated by a family member, friend, or other person with a relationship to the proposed conservatee, notice of hearing shall be delivered pursuant to Section 1215 on the public guardian of the county in which the petition is filed.
(3) A copy of the petition for temporary appointment shall be delivered pursuant to Section 1215 with the notice of hearing.
(f) If a temporary
guardianship is granted ex parte and the hearing on the general guardianship petition is not to be held within 30 days of the granting of the temporary guardianship, the court shall set a hearing within 30 days to reconsider the temporary guardianship. Notice of the hearing for reconsideration of the temporary guardianship shall be provided pursuant to Section 1511, except that the court may for good cause shorten the time for the notice of the hearing.
(g) Visitation orders with the proposed ward granted before the filing of a petition for temporary guardianship shall remain in effect, unless for good cause the court orders otherwise.
(h) (1) If a temporary conservatorship is granted ex parte, and a petition to terminate the temporary conservatorship is filed more than 15 days before the first hearing on the general petition for appointment of conservator,
the court shall set a hearing within 15 days of the filing of the petition for termination of the temporary conservatorship to reconsider the temporary conservatorship. Unless the court otherwise orders, notice of the hearing on the petition to terminate the temporary conservatorship shall be given at least 10 days before the hearing.
(2) If a petition to terminate the temporary conservatorship is filed within 15 days before the first hearing on the general petition for appointment of a conservator, the court shall set the hearing at the same time that the hearing on the general petition is set. Unless the court otherwise orders, notice of the hearing on the petition to terminate the temporary conservatorship pursuant to this section shall be given at least five court days before the hearing.
(i) If the court suspends powers of the guardian or conservator under Section 2334 or
2654 or under any other provision of this division, the court may appoint a temporary guardian or conservator to exercise those powers until the powers are restored to the guardian or conservator or a new guardian or conservator is appointed.
(j) If for any reason a vacancy occurs in the office of guardian or conservator, the court, on a petition filed under subdivision (a) or on its own motion, may appoint a temporary guardian or conservator to exercise the powers of the guardian or conservator until a new guardian or conservator is appointed.
(k) A superior court shall not be required to perform any duties imposed pursuant to the amendments to this section enacted by Chapter 493 of the Statutes of 2006 until the Legislature makes an appropriation identified for this purpose.
SEC. 13.SEC. 12.
Section 2340 of the Probate Code is repealed.SEC. 14.SEC. 13.
Section 2614.7 of the Probate Code is amended to read:2614.7.
If a guardian or conservator of the person or estate, or both, is a professional fiduciary, as described in Section 310, who is required to be licensed under the Professional Fiduciaries Act (Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code), the guardian or conservator shall file, concurrently with the inventory and appraisal required by Section 2610, a proposed hourly fee schedule or another statement of their proposed compensation from the estate of the ward or conservatee for services performed as a guardian or conservator. The filing of a proposed hourly fee schedule or another statement of the guardian’s or conservator’s proposed compensation, as required by this section, shall not preclude a court from later reducing the guardian’s, conservator’s, or their attorney’s fees or other compensation.SEC. 15.SEC. 14.
Section 2643.1 of the Probate Code is amended to read:2643.1.
(a) On petition by a guardian or conservator of the person or estate, or both, who is a professional fiduciary, as described in Section 310 and who is required to be licensed under the Professional Fiduciaries Act (Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code), the court may by order authorize periodic payments on account to a person described in subdivision (a) of Section 2643 for the services rendered by that person during the period covered by each payment only if that person has filed a proposed hourly fee schedule or another statement of their proposed compensation from the estate of the ward or conservatee for services performed as a guardian or conservator, as required by Section 2614.7, and only after the court has addressed any objections filed pursuant to subdivision (d).(b) The petition shall describe the services to be rendered on a periodic basis, the reason why authority to make periodic payments is requested, and a good faith estimate of the fees to be charged by the professional fiduciary from the date the petition is filed up to, and including, the date of the next succeeding account required by Section 2620 or, if the next succeeding account required by Section 2620 is due in less than one year, a good faith estimate of the fees to be charged by the professional fiduciary from the date the petition is filed through the next succeeding 12 months, inclusive. Prior to ordering periodic payments or fixing the amount of the periodic payment, the court shall determine whether making periodic payments is in the best interest of the ward or conservatee, taking into consideration the needs of the ward or conservatee and the need to preserve and protect the estate. If the court determines that making
periodic payments is not in the best interest of the ward or conservatee, the court shall deny the petition to authorize periodic payments. If the court determines that making periodic payments is in the best interest of the ward or conservatee, the court shall fix the amount of the periodic payment. In fixing the amount of the periodic payment, the court shall take into account the services to be rendered on a periodic basis and the reasonable value of those services.
(c) (1) Notice of the hearing on the petition and notice of how to file an objection to the petition shall be given for the period and in the manner provided in Chapter 3 (commencing with Section 1460) of Part 1.
(2) The notices required by paragraph (1) shall be made to the court investigator for the period and in the manner provided in Chapter 3 (commencing with Section 1460) of Part 1.
(d) (1) Any person entitled to notice under paragraph (1) of subdivision (c) may file with the court a written objection to the authorization of periodic payments on account. The court clerk shall set any objections for a hearing no fewer than 15 days after the date the objections are filed.
(2) If an objection is filed pursuant to paragraph (1), the guardian or conservator shall have the burden of establishing the necessity for and amount, if any, of periodic payments.
(e) The guardian or conservator of the estate may make the periodic payments authorized by the order only if the services described in the petition are actually rendered. The payments made pursuant to the order shall be reviewed by the court upon the next succeeding account of the guardian or conservator of the estate to determine
that the services were actually rendered and that the amount paid on account was reasonable and in the best interest of the ward or conservatee, taking into consideration the needs of the ward or conservatee and the need to preserve and protect the estate. The court shall make an appropriate order reducing the guardian or conservator’s compensation if the court determines that the amount paid on account was either unreasonable or not in the best interest of the ward or conservatee in view of the services actually rendered.
(f) The authorization for periodic payments granted pursuant to this section shall terminate on a date determined by the court, but not later than the due date of the next succeeding account required by Section 2620. Nothing in this section shall preclude a guardian or conservator from filing a subsequent petition to receive periodic payments pursuant to this section.
SEC. 16.SEC. 15.
The Legislature finds and declares that Section 6 of this act, which adds Section 6593.3 to the Business and Professions Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:In order to protect the
privacy rights of individual clients, it is necessary that this act limit the public right of access to the protected information. Moreover, the information would be submitted by a fiduciary corporation that is not a licensee of the bureau. In order to balance the need for disclosure to regulatory agencies and protect the financial and privacy interests of individuals, it is necessary to prohibit the public disclosure of client and appointment information.
