Bill Text: CA AB3279 | 2023-2024 | Regular Session | Amended
Bill Title: State Bar of California.
Spectrum: Committee Bill
Status: (Enrolled) 2024-09-05 - Enrolled and presented to the Governor at 4 p.m. [AB3279 Detail]
Download: California-2023-AB3279-Amended.html
Amended
IN
Senate
August 21, 2024 |
Amended
IN
Senate
June 05, 2024 |
Amended
IN
Assembly
May 02, 2024 |
Introduced by Committee on Judiciary (Assembly Members Kalra (Chair), Bryan, Connolly, Haney, Maienschein, McKinnor, Pacheco, and Reyes) |
February 29, 2024 |
LEGISLATIVE COUNSEL'S DIGEST
Existing law, the California Financial Information Privacy Act, generally prohibits a financial institution from disclosing a consumers nonpublic personal information with any nonaffiliated third party without the consumer’s consent, and makes an entity that violates those provisions subject to specified civil penalties. Existing law exempts from this prohibition the disclosure of a consumer’s nonpublic personal information when the nonpublic personal information is released to the extent specifically required or permitted by law to specified entities, including, among others, law enforcement agencies.
This bill would also authorize the disclosure of a consumer’s nonpublic personal information to the extent specifically required or permitted by law to the State Bar.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 6002.1 of the Business and Professions Code is amended to read:6002.1.
(a) A licensee of the State Bar shall maintain all of the following on the official licensing records of the State Bar:SECTION 1.SEC. 2.
Section 6016.2 is added to the Business and Professions Code, to read:6016.2.
(a) Each appointing authority may remove from office at any time any member of the board appointed by that authority for continued neglect of duties required by law, or for incompetence or unprofessional or dishonorable conduct.SEC. 2.SEC. 3.
Section 6031.5 of the Business and Professions Code is amended to read:6031.5.
(a) The California Lawyers Association and its activities shall not be funded with mandatory fees collected pursuant to subdivision (a) of Section 6140.SEC. 4.
Section 6034 of the Business and Professions Code is amended to read:6034.
(a) The State Bar of California is authorized and directed to participate as a state agency in the Interagency Intercept Collections Program established pursuant to Section 12419.2 of the Government Code for the collection of any unpaid amounts owed to the State Bar of California, including any fine, penalty, assessment, cost, or reimbursement imposed under Section 6086.10, subdivision (c) of Section 6140.5, and any other applicable law. All funds received by the State Bar of California shall beSEC. 5.
Section 6034 is added to the Business and Professions Code, to read:6034.
(a) The State Bar of California is authorized and directed to participate as a state agency in the Interagency Intercept Collections Program established pursuant to Section 12419.2 of the Government Code for the collection of any unpaid amounts owed to the State Bar of California, including any fine, penalty, assessment, cost, or reimbursement imposed under Section 6086.10, subdivision (c) of Section 6140.5, and any other applicable law. All funds received by the State Bar of California shall be allocated for the purposes established pursuant to Section 6033.SEC. 3.SEC. 6.
Section 6046.7 of the Business and Professions Code is amended to read:6046.7.
(a) Notwithstanding any other law, the examining committee shall be responsible for the approval, regulation, and oversight of degree-granting unaccredited law schools that meet both of the following:SEC. 7.
Section 6046.8 of the Business and Professions Code is amended to read:6046.8.
(a) At least once every seven years, or more frequently if directed by the Supreme Court, the board of trustees shall oversee an evaluation of the bar examination to determine if it properly tests for minimally needed competence for entry-level attorneys and shall make a determination, supported by findings, whether to adjust the examination or the passing score based on the evaluation.SEC. 8.
Section 6054 of the Business and Professions Code is amended to read:6054.
(a) State and local law enforcement and licensing bodies and departments, officers and employees thereof, and officials and attachés of the courts of this state shall cooperate with and give reasonable assistance and information, including the providing of state summary criminal history information and local summary criminal history information, to the State Bar of California or any authorized representative thereof, in connection with any investigation or proceeding within the jurisdiction of the State Bar of California, regarding the admission to the practice of law or discipline of attorneys or their reinstatement to the practice of law.SEC. 4.SEC. 9.
Section 6060.7 of the Business and Professions Code is repealed.SEC. 5.SEC. 10.
Section 6060.7 is added to the Business and Professions Code, to read:6060.7.
The examining committee shall be responsible for the approval, regulation, and oversight of degree-granting law schools that meet both of the following:SEC. 6.SEC. 11.
Section 6060.10 is added to the Business and Professions Code, to read:6060.10.
(a) Commencing July 1, 2026, and annually thereafter, the State Bar shall transmit to the Legislature a report detailing the number of complaints regarding access issues related to the biannual state bar exam detailed as follows:SEC. 7.SEC. 12.
Section 6070.1 is added to the Business and Professions Code, to read:6070.1.
(a) For the purpose of subdivision (c) of Section 6070, “full-time employees of the State of California” shall include all licensees of the State Bar employed by the California State Legislature, regardless of the licensee’s official position classification.SEC. 8.SEC. 13.
Section 6079.1 of the Business and Professions Code is amended to read:6079.1.
(a) The Supreme Court shall appoint a presiding judge of the State Bar Court. In addition, five hearing judges shall be appointed, two by the Supreme Court, one by the Governor, one by the Senate Committee on Rules, and one by the Speaker of the Assembly, to efficiently decide any and all regulatory matters pending before the Hearing Department of the State Bar Court. The presiding judge and all other judges of that department shall be appointed for a term of six years and may be reappointed for additional six-year terms. Any judge appointed under this section shall be subject to admonition, censure, removal, or retirement by the Supreme Court upon the same grounds as provided for judges of courts of record of this state.(a)Commencing January 1, 2026, upon the establishment of a new client trust account associated with an attorney licensed to practice in California, the financial institution shall collect and retain within its books and records the attorney license number.
(b)Commencing January 1, 2026, a financial institution shall furnish on an annual basis a statement of account for every client trust account actually known to the financial institution based on its books and records that are associated with an attorney licensed to practice in California in a format mutually acceptable by the financial institution and the State Bar. The statement of account shall include,
but not be limited to, the name and address of the account holder, other information necessary to identify the account holder, and the account balance as of December 31 of the prior year.
(c)On or before July 1, 2026, the State Bar shall furnish to a financial institution the name, address, and attorney license number for client trust accounts reported from the statement of accounts provided pursuant to subdivision (b), and by attorneys licensed to practice in California to the State Bar that are not included within the statement of accounts furnished by the financial institution pursuant to subdivision (b). The State Bar shall only furnish information to the financial institution where the account holder is a customer of the same financial institution as reported by the attorney licensed to practice in California.
(d)Financial institutions shall cooperate with the State Bar to assist in identifying the license number of any remaining client trust account holders that are not identified pursuant to the process identified in subdivision (c).
(e)Commencing January 1, 2027, a financial institution shall furnish to the State Bar on an annual basis a report for every client trust account actually known to the financial institution based on its books and records that are associated with an attorney licensed to practice in California. The report shall include, but not be limited to, the name and address of the account holder, the attorney license number, and the account balance as of December 31 of the prior year.
(f)A financial
institution receiving information pursuant to subdivision (c), shall, after validating the accuracy of the information furnished by the State Bar, incorporate into its books and records the attorney license number for client trust accounts where such information was previously not collected.
SEC. 14.
Section 6091.3 is added to the Business and Professions Code, to read:6091.3.
(a) Commencing January 1, 2026, upon the establishment of a new client trust account associated with an attorney licensed to practice in California, the financial institution shall collect and retain within its books and records an attorney’s State Bar license number where the number is made available to the financial institution by the attorney associated with the client trust account in the format described in subdivision (c).SEC. 15.
Section 6091.4 is added to the Business and Professions Code, to read:6091.4.
(a) Notwithstanding subdivision (e) of section 6068, Article 3 (commencing with Section 950) of Chapter 4 of Division 8 of the Evidence Code, the Attorney Work Product doctrine as restated in Chapter 4 (commencing with Section 2018.010) of Title 4 of Part 4 of the Code of Civil Procedure, or any other law, licensees of the State Bar, limited liability partnerships, or law corporations registered with the State Bar shall, pursuant to a request made as part of a compliance review or investigative audit being conducted by or at the direction of the State Bar, provide to the State Bar or its agents all requested information, records, or communications, including, but not limited to, account journals, client ledgers, fee agreements, client files, and billing statements related to the receipt, holding, and disbursement of funds, securities, or other property in which the licensee, limited liability partnership, or law corporation knows or reasonably should know a client or other person has an interest.SEC. 10.SEC. 16.
Section 6140 of the Business and Professions Code is amended to read:6140.
(a) The board shall fix the annual license fee for active licensees for 2025 at a sum not exceeding four hundred dollars ($400).SEC. 11.SEC. 17.
Section 6140.03 of the Business and Professions Code is amended to read:6140.03.
(a) The board shall increase each of the annual license fees fixed by Sections 6140 and 6141 by an additional forty-five dollars ($45), to be allocated only for the purposes established pursuant to Section 6033 and subdivision (b), except to the extent that a licensee elects not to support those activities.SEC. 12.SEC. 18.
Section 6140.5 of the Business and Professions Code is amended to read:6140.5.
(a) The board shall establish and administer a Client Security Fund to relieve or mitigate pecuniary losses caused by the dishonest conduct of licensees of the State Bar, foreign legal consultants registered with the State Bar, and attorneys registered with the State Bar under the Multijurisdictional Practice Program, arising from or connected with the practice of law. Any payments from the fund shall be discretionary and shall be subject to regulation, conditions, and rules as the board shall prescribe. The board may delegate the administration of the fund to the State Bar Court, or to any board or committee created by the board of trustees.(k)
SEC. 19.
Section 6140.55 of the Business and Professions Code, as added by Section 25 of Chapter 697 of the Statutes of 2023, is amended to read:6140.55.
(a) The board may increase the annual license fees fixed by it pursuant to Section 6140 by an additional amount per active licensee not to exceed forty dollars ($40), and the annual license fees fixed by it pursuant to Section 6141 by an additional amount per inactive licensee not to exceed ten dollars ($10), in any year, the additional amount to be applied only for the purposes of the Client Security Fund and the costs of its administration, including, but not limited to, the costs of processing, determining, defending, or insuring claims against the fund.(b)