Bill Text: CA AB2746 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Attorneys: annual membership fees.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Passed) 2014-09-18 - Chaptered by Secretary of State - Chapter 429, Statutes of 2014. [AB2746 Detail]

Download: California-2013-AB2746-Amended.html

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BILL NUMBER: AB 2746	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 22, 2014
	AMENDED IN SENATE  JULY 1, 2014
	AMENDED IN SENATE  JUNE 18, 2014
	AMENDED IN ASSEMBLY  MAY 12, 2014

INTRODUCED BY   Committee on Judiciary (Assembly Members Wieckowski
(Chair), Alejo, Chau, Dickinson, Garcia, Muratsuchi, and Stone)

                        MARCH 4, 2014

   An act to amend Sections  6031,   6021, 
6033,  6073,   and  6140, 6140.03, 6216,
and 6218 of, and to add Section  6140.04  
6144.1  to, the Business and Professions Code, relating to
attorneys.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2746, as amended, Committee on Judiciary. Attorneys: annual
membership fees.
   Existing law, the State Bar Act, provides for the licensure and
regulation of attorneys by the State Bar of California, a public
corporation. The State Bar is governed by a board of trustees.
Existing law authorizes the board, among other duties, to aid in all
matters pertaining to the improvement of the administration of
justice, including all matters that may advance the professional
interests of the members of the State Bar. Existing law, until
January 1, 2015, requires the board to charge an annual membership
fee for active members of up to $315 for 2014. Existing law requires
the board to charge an annual membership fee for inactive members of
up to $75. 
   This bill would authorize the board to collect reasonable charges
from members with respect to all matters incident to licensing,
regulation, and discipline, and would include the voluntary support
and delivery of legal services to indigent persons, among other
duties of the board. The 
    This  bill would, until January 1, 2016, require the
board to charge the annual membership fee for active members
described above for 2015. 
   Existing law requires, within the period of 90 days next preceding
the annual meeting, the board, at a meeting called for that purpose,
to elect the president, vice president, and treasurer for the
ensuing year. The president, the vice president, and the treasurer
are to be elected from among all members of the board.  
   This bill, if the president is elected from among those members of
the board whose terms on the board expire that year and has not been
reelected or reappointed to another term, as provided, would require
the president to serve as a 20th member of the board during his or
her one-year term and would authorize him or her to vote. 
   Existing law requires the board to increase each of the annual
membership fees described above by an additional $30, to be allocated
only to support nonprofit organizations that provide free legal
services to persons of limited means, except to the extent that a
member elects not to support those activities. Existing law requires
that the invoice provided to members for payment of the annual
membership fee provide each member the option of deducting $30 from
the annual membership fee if the member elects not to have this
amount allocated for these purposes.  Existing law also
requires the State Bar to pay administrative costs from funds
received to provide civil legal services to indigent persons before
paying other specified costs in connection with the program.

   This bill would increase that optional, additional amount to
 $38. The bill would add $7 to the annual membership fees for
active members to be allocated only for the purpose of paying the
administrative costs of the programs of the State Bar, and would
provide that if the authorization for that administrative fee ceases
to be in force and effect, the State Bar may deduct moneys received
under other provisions of law to pay the reasonable administrative
costs of performing its obligations. The bill would also delete
provisions requiring the State Bar to pay administrative costs before
paying other specified costs from funds received to provide civil
legal services to indigent persons, as specified. The bill would make
other related changes.   $40. The bill would require
that all funds received for these programs be distributed to
qualified legal services projects and support centers without
deduction for administrative fees, costs, or expenses by the State
Bar, and would require that fees, costs, or expenses associated with
administering these provisions be absorbed within the costs allowed
by and paid from specified funds. The bill would also require that
the net proceeds from the sale or lease of real property, after
payment of obligations and encumbrances and reasonable costs of
acquiring and relocating its facilities, if any, be held by the State
Bar without expenditure or commitment for any purpose until approved
by the Legislature by statute. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    Section 6031 of the Business and
Professions Code is amended to read:
   6031.  (a) The board may aid in and collect reasonable charges
authorized by statute from members with respect to all matters
incident to licensing, regulation, and discipline, including all
matters pertaining to the advancement of the science of jurisprudence
or to the improvement of the administration of justice, including,
but not by way of limitation, all matters that may advance the
professional interests and responsibilities of the members of the
State Bar, the support and delivery of legal services to indigent
persons, including qualified nonprofit legal aid organizations and
pro bono, the advancement of equal access, and such matters as
concern the relations of the bar with the public.
   (b) Notwithstanding this section or any other law, the board shall
not conduct or participate in, or authorize any committee, agency,
employee, or commission of the State Bar to conduct or participate in
any evaluation, review, or report on the qualifications, integrity,
diligence, or judicial ability of any specific justice of a court
provided for in Section 2 or 3 of Article VI of the California
Constitution without prior review and statutory authorization by the
Legislature.
   This subdivision does not prohibit a member of the State Bar from
conducting or participating in such an evaluation, review, or report
in his or her individual capacity.
   This subdivision does not prohibit an evaluation of potential
judicial appointees or nominees as authorized by Section 12011.5 of
the Government Code. 
   SECTION 1.    Section 6021 of the   Business
and Professions Code   is amended to read: 
   6021.  (a) (1) Within the period of 90 days next preceding the
annual meeting, the board, at a meeting called for that purpose,
shall elect the president, vice president, and treasurer for the
ensuing year. The president, the vice president, and the treasurer
shall be elected from among all members of the board.
   (2) The newly elected president, vice president, and treasurer
shall assume the duties of their respective offices at the conclusion
of the annual meeting following their election.
   (b) The term of the board president shall be one year, except that
he or she may be reelected to a second one-year term as the board
president. 
   (c) Notwithstanding the provisions of Sections 6009.7 and 6011
regarding a 19-member board, if the president is elected from among
those members of the board whose terms on the board expire that year
and has not been reelected or reappointed to another term under
Section 6013.1, 6013.2, 6013.3, or 6013.5, the president shall serve
as a 20th member of the board during his or her one-year term, and he
or she may vote. 
  SEC. 2.  Section 6033 of the Business and Professions Code is
amended to read:
   6033.  (a) Notwithstanding any other law, the State Bar is
expressly authorized to facilitate the professional responsibilities
of members by collecting, in conjunction with the State Bar's
collection of its annual membership dues or otherwise, voluntary
financial support for nonprofit organizations that provide free legal
services to persons of limited means. All funds received for
programs related to this section shall be  devoted to the
support of   distributed to  qualified legal
services projects  and support   centers as provided in
Section 6216  without deduction for administrative fees, costs,
or expenses by the State Bar.  Any fees, costs, or expenses
associated with administering this section shall be absorbed within
the costs allowed by and paid from the funds specified in Section
6216. 
   (b) To implement this section, the State Bar, in consultation with
the Chief Justice of California, shall appoint a task force of key
stakeholders to analyze the mechanisms and experience of bar
associations that have adopted programs for the collection of
financial contributions from bar members and shall propose an
appropriate method for facilitating the collection and distribution
of voluntary contributions that is best calculated to generate the
greatest level of financial support and participation from State Bar
members, taking into account such issues as the justice-gap between
the legal needs of low-income people in California and the legal
resources available to assist them. The method and any recommended
voluntary contribution amount adopted by the Board of Trustees of the
State Bar of California shall be implemented for the 2008 fiscal
year, and shall be reviewed and adjusted as needed after two years
and, thereafter, every five years as needed, in consultation with
affected service providers and other key stakeholders. 
  SEC. 3.    Section 6073 of the Business and
Professions Code is amended to read:
   6073.  It has been the traditional obligation of those learned in
the law and licensed to practice law in this state to provide
voluntary pro bono legal services to those who cannot afford the help
of a lawyer. Every lawyer authorized and privileged to practice law
in California is expected to make a contribution. In some
circumstances, it may not be feasible for a lawyer to directly
provide pro bono services. In those circumstances, a lawyer may
instead fulfill his or her individual pro bono ethical commitment, in
part, by providing financial support to organizations providing free
legal services to persons of limited means. In deciding to provide
that financial support, the lawyer should, at minimum, approximate
the value of the hours of pro bono legal service that he or she would
otherwise have provided. In some circumstances, pro bono
contributions may be measured collectively, as by a firm's aggregate
pro bono activities or financial contributions. Lawyers also make
invaluable contributions through their other voluntary public service
activities that increase access to justice or improve the law and
the legal system. In view of their expertise in areas that critically
affect the lives and well-being of members of the public, lawyers
are uniquely situated to provide invaluable assistance in order to
benefit those who might otherwise be unable to assert or protect
their interests, and to support those legal organizations that
advance these goals. 
   SEC. 4.   SEC. 3.   Section 6140 of the
Business and Professions Code is amended to read:
   6140.  (a) The board shall fix the annual membership fee for
active members for 2015 at a sum not exceeding three hundred fifteen
dollars ($315).
   (b) The annual membership fee for active members is payable on or
before the first day of February of each year. If the board finds it
appropriate and feasible, it may provide by rule for payment of fees
on an installment basis with interest, by credit card, or other
means, and may charge members choosing any alternative method of
payment an additional fee to defray costs incurred by that election.
   (c) This section shall remain in effect only until January 1,
2016, and, as of that date, is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
   SEC. 5.   SEC. 4.   Section 6140.03 of
the Business and Professions Code is amended to read:
   6140.03.  (a) The board shall increase each of the annual
membership fees fixed by Sections 6140 and 6141 by an additional
 thirty-eight dollars ($38),   forty dollars
($40),  to be allocated only for the purposes established
pursuant to Section 6033, except to the extent that a member elects
not to support those activities.
   (b) The invoice provided to members for payment of the annual
membership fee shall provide each member the option of deducting
 thirty-eight dollars ($38)   forty dollars
($40)  from the annual membership fee if the member elects not
to have this amount allocated for the purposes established pursuant
to Section 6033. 
  SEC. 6.    Section 6140.04 is added to the
Business and Professions Code, to read:
   6140.04.  Seven dollars ($7) shall be added to the annual
membership fees fixed by Section 6140 to be allocated only for the
purpose of paying the administrative costs of the programs of the
State Bar.  
  SEC. 7.    Section 6216 of the Business and
Professions Code is amended to read:
   6216.  The State Bar shall distribute all moneys received under
the program established by this article for the provision of civil
legal services to indigent persons. The funds first shall be
distributed 18 months from the effective date of this article, or
upon such a date, as shall be determined by the State Bar, that
adequate funds are available to initiate the program. Thereafter, the
funds shall be distributed on an annual basis. All distributions of
funds shall be made in the following order and in the following
manner:
   (a) If the authorization for fees pursuant to Section 6140.04 to
fund the administration of programs under this article ceases to be
in force and effect, the State Bar may deduct moneys received under
this article to pay the reasonable administrative costs of performing
its obligations under this article.
   (b) Eighty-five percent of the funds allocated pursuant to this
article shall be distributed to qualified legal services projects.
Distribution shall be by a pro rata county-by-county formula based
upon the number of persons whose income is 125 percent or less of the
current poverty threshold per county. For the purposes of this
section, the source of data identifying the number of persons per
county shall be the latest available figures from the United States
Department of Commerce, Bureau of the Census. Projects from more than
one county may pool their funds to operate a joint, multicounty
legal services project serving each of their respective counties.
   (1) (A) In any county which is served by more than one qualified
legal services project, the State Bar shall distribute funds for the
county to those projects which apply on a pro rata basis, based upon
the amount of their total budget expended in the prior year for legal
services in that county as compared to the total expended in the
prior year for legal services by all qualified legal services
projects applying therefor in the county. In determining the amount
of funds to be allocated to a qualified legal services project
specified in paragraph (2) of subdivision (a) of Section 6213, the
State Bar shall recognize only expenditures attributable to the
representation of indigent persons as constituting the budget of the
program.
   (B) The State Bar shall reserve 10 percent of the funds allocated
to the county for distribution to programs meeting the standards of
subparagraph (A) of paragraph (3) and paragraphs (1) and (2) of
subdivision (b) of Section 6214 and which perform the services
described in subparagraph (A) of paragraph (3) of Section 6214 as
their principal means of delivering legal services. The State Bar
shall distribute the funds for that county to those programs which
apply on a pro rata basis, based upon the amount of their total
budget expended for free legal services in that county as compared to
the total expended for free legal services by all programs meeting
the standards of subparagraph (A) of paragraph (3) and paragraphs (1)
and (2) of subdivision (b) of Section 6214 in that county. The State
Bar shall distribute any funds for which no program has qualified
pursuant hereto, in accordance with the provisions of subparagraph
(A) of paragraph (1) of this subdivision.
   (2) In any county in which there is no qualified legal services
projects providing services, the State Bar shall reserve for the
remainder of the fiscal year for distribution the pro rata share of
funds as provided for by this article. Upon application of a
qualified legal services project proposing to provide legal services
to the indigent of the county, the State Bar shall distribute the
funds to the project. Any funds not so distributed shall be added to
the funds to be distributed the following year.
   (c) Fifteen percent of the funds allocated for the purposes of
this article shall be distributed equally by the State Bar to
qualified support centers which apply for the funds. The funds
provided to support centers shall be used only for the provision of
legal services within California. Qualified support centers that
receive funds to provide services to qualified legal services
projects from sources other than this article, shall submit and shall
have approved by the State Bar a plan assuring that the services
funded under this article are in addition to those already funded for
qualified legal services projects by other sources. 

  SEC. 8.    Section 6218 of the Business and
Professions Code is amended to read:
   6218.  All legal services projects and support centers receiving
funds pursuant to this article shall adopt financial eligibility
guidelines for indigent persons.
   (a) Qualified legal services programs shall ensure that funds
appropriated pursuant to this article shall be used solely to defray
the costs of providing legal services to indigent persons or for such
other purposes as set forth in this article.
   (b) Funds received pursuant to this article by support centers
shall only be used to provide services to qualified legal services
projects as defined in subdivision (a) of Section 6213 which are used
pursuant to a plan as required by subdivision (c) of Section 6216,
or as permitted by Section 6219. 
   SEC. 5.    Section 6144.1 is added to the  
Business and Professions Code  , to read:  
   6144.1.  The net proceeds from the sale or lease of real property,
after payment of obligations and encumbrances and reasonable costs
of acquiring and relocating its facilities, if any, shall be held by
the State Bar without expenditure or commitment for any purpose until
approved by the Legislature by statute.