Bill Text: CA SB163 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Attorneys: board of trustees: annual membership fee.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2011-10-02 - Chaptered by Secretary of State. Chapter 417, Statutes of 2011. [SB163 Detail]

Download: California-2011-SB163-Amended.html
BILL NUMBER: SB 163	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 27, 2011

INTRODUCED BY   Senator Evans

                        FEBRUARY 2, 2011

    An act to amend Section 6140 of the Business and
Professions Code,   An act to amend Sections 6001.2,
6005, 6006, 6007, 6008.1, 6008.4, 6010, 6011, 6013.6, 6015, 6016,
6018, 6019, 6020, 6021, 6024, 6033, 6036, 6037, 6040, 6042, 6046
  .7, 6069, 6070, 6076, 6076.5, 6079.5, 6086, 6086.5,
6086.14, 6140, 6140.05, 6140.5, 6161, 6168, 6169, 6170, 6190.1, 6200,
6201, 6203, 6204, 6206, 6222, 6225, 6226, 6231, and 6238 of, and to
add Sections 6001.1, 6009.7, 6012, 6013.2, 6013.3, 6026.7, and
6140.12, to, to repeal Sections 6012.5, 6013.4, 6014, and 6017 of,
and to repeal and add Section 6013.1 of, the Business and Professions
Code,  relating to attorneys.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 163, as amended, Evans. Attorneys:  board of trustees:
 annual membership fee.
   Existing law, the State Bar Act, provides for the licensure and
regulation of attorneys by the State Bar of California, a public
corporation.  Existing  
   (1) Under existing law, the State Bar is governed by a board known
as the board of governors of the State Bar. The board of governors
consists of 23 members, including 15 attorney members, one attorney
member elected by the board of directors of the California Young
Lawyers Association, 6 public members, and the President of the State
Bar. Existing law provides for the election of attorney members to
the board from specified counties included in State Bar Districts.
Under existing law, the public members of the board are appointed by
the Governor and the Legislature.  
   This bill would revise and recast these provisions by renaming the
board of governors as the board of trustees and would also revise
the composition of the board to include no more than 23 members and
no less than 19 members, as specified and determined by the State
Bar, to include the existing 6 public members appointed by the
Governor and the Legislature and 13 attorney members. Under the bill,
the 13 attorney members would consist of 6 attorney members elected
from State Bar Districts based on the 6 court of appeal districts, 5
attorney members appointed by the Supreme Court, and 2 attorney
members appointed by the Speaker of the Assembly and the Senate
Committee on Rules. The bill would require these attorney members to
serve for a term of 3 years and would limit the elected and Supreme
Court appointed members to being reappointed or reelected for one
additional term. With respect to the Supreme Court appointments, the
bill would specify criteria that the Supreme Court should consider in
making these appointments and would require the State Bar to carry
out the administrative responsibilities related to the Supreme Court'
s appointments.  
   The bill would require the State Bar to determine how to reduce
the board of trustees from 23 members to 19 members by October 31,
2014. The bill would require the State Bar to develop a plan for
implementing the transition to a 19-member board by January 31, 2012,
and to submit a written report detailing that plan to the Judiciary
Committees of the Legislature by January 31, 2012. The bill would
also require the State Bar to report annually to the Judiciary
Committees on its progress toward implementing this transition. The
bill would prohibit the State Bar from changing or abolishing a board
member's term that commenced prior to December 31, 2011, or forcing
any board member to resign whose term commenced prior to that date in
order to accomplish the transition. The bill would also declare the
intent of the Legislature in this regard.  
   The bill would make other conforming changes related to the
renaming of the board and the establishment of both an election and
appointment process for attorney members of the board.  
   (2) Under existing law, the officers of the State Bar are a
president, 4 vice presidents, a secretary, and a treasurer, and one
of the vice presidents may also be elected to the office of
treasurer. Existing law requires the board, within 270 days before
the annual meeting, to elect the officers for the ensuing year.
Existing law requires the president and other officers to be elected
from among members with specified terms. Under existing law, the
president may vote only in the case of a specified tie vote. 

   This bill would instead provide that the officers include a
president, a vice president, a secretary, and a treasurer. The bill
would require the board to elect the officers within 90 days before
the annual meeting. The bill would also authorize the president and
the other officers to be elected from among all members of the board.
The bill would also delete the limitation on the president's voting
authority.  
   (3) The bill would require the board to complete and implement a
5-year strategic plan and would require the president to report to
the Supreme Court, the Governor, and the Judiciary Committees on
certain aspects of the strategic plan.  
   (4) Existing law establishes a Governance in the Public Interest
Task Force within the State Bar. The task force is made up of 11
specified board members appointed by the president. Existing law
requires the task force to prepare a report, that includes its
recommendations for, among other things, enhancing and ensuring the
protection of the public.  
   This bill would instead reconstitute the task force to be
comprised of a total of 6 members and the President of the State Bar.
Under the bill, the task force would consist of 2 elected attorney
members, 2 appointed members, and 2 public members who would be
selected as specified. The bill would require the task force to make
suggestions to the board regarding the strategic plan described above
and other issues as requested by the Legislature. 
    (5)     Existing  law requires the
board of governors to charge an annual membership fee for active
members of up to $315 for 2011.
   This bill would require the board to charge that annual membership
fee for active members for 2012.
   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 6001.1 is added to the 
 Business and Professions Code   , to read:  
   6001.1.  Protection of the public shall be the highest priority
for the State Bar of California and the board of trustees in
exercising their licensing, regulatory, and disciplinary functions.
Whenever the protection of the public is inconsistent with other
interests sought to be promoted, the protection of the public shall
be paramount. 
   SEC. 2.    Section 6001.2 of the   Business
and Professions Code   is amended to read: 
   6001.2.  (a) On or before February 1, 2011, there shall be created
within the State Bar a Governance in the Public Interest Task Force
comprised of  11   six  members 
appointed by   and  the President of the State Bar,
 seven   two  of whom shall be 
elected  attorney members of the board  who are selected by
the elected attorney membe   rs, two of whom shall be
attorney members of the board appointed by the Supreme Court who are
selected by the Supreme Court appointees,  and  three
  two  of whom shall be public members of the board
 selected by the public members  . The president 
shall also be a member of the task force and  shall preside
over its meetings, all of which shall be held consistent with Section
6026.5.
   (b) On or before May 15, 2011, and every three years thereafter,
the task force shall prepare and submit a report to the Supreme
Court, the Governor, and the Assembly and Senate Committees on
Judiciary that includes its recommendations for enhancing the
protection of the public and ensuring that protection of the public
is the highest priority in the licensing, regulation, and discipline
of attorneys, to be reviewed by the Assembly and Senate Committees on
Judiciary in their regular consideration of the annual State Bar
dues measure. If the task force does not reach a consensus on all of
the recommendations in its report, the dissenting members of the task
force may prepare and submit a dissenting report to the same
entities described in this subdivision, to be reviewed by the
committees in the same manner. 
   (c) The task force shall make suggestions to the board of trustees
regarding possible additions to, or revisions of, the strategic plan
required by Section 6140.12. In addition, the task force shall also
make suggestions to the board of trustees regarding other issues
requested from time to time by the Legislature. 
   SEC. 3.    Section 6005 of the   Business
and Professions Code   is amended to read: 
   6005.  Inactive members are those members who have requested that
they be enrolled as inactive members or who have been enrolled as
inactive members by action of the board of  governors
  trustees  as in Section 6007 of this code
provided.
   SEC. 4.    Section 6006 of the   Business
and Professions Code   is amended to read: 
   6006.  Active members who retire from practice shall be enrolled
as inactive members at their request.
   Inactive members are not entitled to hold office or vote or
practice law. Those who are enrolled as inactive members at their
request may, on application and payment of all fees required, become
active members. Those who are or have been enrolled as inactive
members at their request are members of the State Bar for purposes of
Section 15 of Article VI of the California Constitution. Those who
are enrolled as inactive members pursuant to Section 6007 may become
active members as provided in that section.
   Inactive members have such other privileges, not inconsistent with
this chapter, as the board of  governors  
trustees  provides.
   SEC. 5.    Section 6007 of the  Business and
Professions Code   is amended to read: 
   6007.  (a) When a member requires involuntary treatment pursuant
to Article 6 (commencing with Section 5300) of Chapter 2 of Division
5 of, or Part 2 (commencing with Section 6250) of Division 6 of the
Welfare and Institutions Code, or when under an order pursuant to
Section 3051, 3106.5, or 3152 of the Welfare and Institutions Code he
or she has been placed in or returned to inpatient status at the
California Rehabilitation Center or its branches, or when he or she
has been determined insane or mentally incompetent and is confined
for treatment or placed on outpatient status pursuant to the Penal
Code, or on account of his or her mental condition a guardian or
conservator, for his or her estate or person or both, has been
appointed, the Board of  Governors   Trustees
 or an officer of the State Bar shall enroll the member as an
inactive member.
   The clerk of any court making an order containing any of the
determinations or adjudications referred to in the immediately
preceding paragraph shall send a certified copy of that order to the
State Bar at the same time that the order is entered.
   The clerk of any court with which is filed a notice of
certification for intensive treatment pursuant to Article 4
(commencing with Section 5250) of Chapter 2 of Division 5 of the
Welfare and Institutions Code, upon receipt of the notice, shall
transmit a certified copy of it to the State Bar.
   The State Bar may procure a certified copy of any determination,
order, adjudication, appointment, or notice when the clerk concerned
has failed to transmit one or when the proceeding was had in a court
other than a court of this state.
   In the case of an enrollment pursuant to this subdivision, the
State Bar shall terminate the enrollment when the member has had the
fact of his or her restoration to capacity judicially determined,
upon the member's release from inpatient status at the California
Rehabilitation Center or its branches pursuant to Section 3053, 3109,
or 3151 of the Welfare and Institutions Code, or upon the member's
unconditional release from the medical facility pursuant to Section
5304 or 5305 of the Welfare and Institutions Code; and on payment of
all fees required.
   When a member is placed in, returned to, or released from
inpatient status at the California Rehabilitation Center or its
branches, or discharged from the narcotics treatment program, the
Director of Corrections or his or her designee shall transmit to the
State Bar a certified notice attesting to that fact.
   (b) The board shall also enroll a member of the State Bar as an
inactive member in each of the following cases:
   (1) A member asserts a claim of insanity or mental incompetence in
any pending action or proceeding, alleging his or her inability to
understand the nature of the action or proceeding or inability to
assist counsel in representation of the member.
   (2) The court makes an order assuming jurisdiction over the member'
s law practice, pursuant to Section 6180.5 or 6190.3.
   (3) After notice and opportunity to be heard before the board or a
committee, the board finds that the member, because of mental
infirmity or illness, or because of the habitual use of intoxicants
or drugs, is (i) unable or habitually fails to perform his or her
duties or undertakings competently, or (ii) unable to practice law
without substantial threat of harm to the interests of his or her
clients or the public. No proceeding pursuant to this paragraph shall
be instituted unless the board or a committee finds, after
preliminary investigation, or during the course of a disciplinary
proceeding, that probable cause exists therefor. The determination of
probable cause is administrative in character and no notice or
hearing is required.
   In the case of an enrollment pursuant to this subdivision, the
board shall terminate the enrollment upon proof that the facts found
as to the member's disability no longer exist and on payment of all
fees required.
   (c) (1) The board may order the involuntary inactive enrollment of
an attorney upon a finding that the attorney's conduct poses a
substantial threat of harm to the interests of the attorney's clients
or to the public or upon a finding based on all the available
evidence, including affidavits, that the attorney has not complied
with Section 6002.1 and cannot be located after reasonable
investigation.
   (2) In order to find that the attorney's conduct poses a
substantial threat of harm to the interests of the attorney's clients
or the public pursuant to this subdivision, each of the following
factors shall be found, based on all the available evidence,
including affidavits:
   (A) The attorney has caused or is causing substantial harm to the
attorney's clients or the public.
   (B) The attorney's clients or the public are likely to suffer
greater injury from the denial of the involuntary inactive enrollment
than the attorney is likely to suffer if it is granted, or there is
a reasonable likelihood that the harm will reoccur or continue. Where
the evidence establishes a pattern of behavior, including acts
likely to cause substantial harm, the burden of proof shall shift to
the attorney to show that there is no reasonable likelihood that the
harm will reoccur or continue.
   (C) There is a reasonable probability that the State Bar will
prevail on the merits of the underlying disciplinary matter.
   (3) In the case of an enrollment under this subdivision, the
underlying matter shall proceed on an expedited basis.
   (4) The board shall order the involuntary inactive enrollment of
an attorney upon the filing of a recommendation of disbarment after
hearing or default. For purposes of this section, that attorney shall
be placed on involuntary inactive enrollment regardless of the
membership status of the attorney at the time.
   (5) The board shall formulate and adopt rules of procedure to
implement this subdivision.
   In the case of an enrollment pursuant to this subdivision, the
board shall terminate the involuntary inactive enrollment upon proof
that the attorney's conduct no longer poses a substantial threat of
harm to the interests of the attorney's clients or the public or
where an attorney who could not be located proves compliance with
Section 6002.1.
   (d) (1) The board may order the involuntary inactive enrollment of
an attorney for violation of probation upon the occurrence of all of
the following:
   (A) The attorney is under a suspension order any portion of which
has been stayed during a period of probation.
   (B) The board finds that probation has been violated.
   (C) The board recommends to the court that the attorney receive an
actual suspension on account of the probation violation or other
disciplinary matter.
   (2) The board shall terminate an enrollment under this subdivision
upon expiration of a period equal to the period of stayed suspension
in the probation matter, or until the court makes an order regarding
the recommended actual suspension in the probation matter, whichever
occurs first.
   (3) If the court orders a period of actual suspension in the
probation matter, any period of involuntary inactive enrollment
pursuant to this subdivision shall be credited against the period of
actual suspension ordered.
   (e) (1) The board shall order the involuntary, inactive enrollment
of a member whose default has been entered pursuant to the State Bar
Rules of Procedure if both of the following conditions are met:
   (A) The notice was duly served pursuant to subdivision (c) of
Section 6002.1.
   (B) The notice contained the following language at or near the
beginning of the notice, in capital letters:
   IF YOU FAIL TO FILE AN ANSWER TO THIS NOTICE WITHIN THE TIME
ALLOWED BY STATE BAR RULES, INCLUDING EXTENSIONS, OR IF YOU FAIL TO
APPEAR AT THE STATE BAR COURT TRIAL, (1) YOUR DEFAULT SHALL BE
ENTERED, (2) YOU SHALL BE ENROLLED AS AN INVOLUNTARY INACTIVE MEMBER
OF THE STATE BAR AND WILL NOT BE PERMITTED TO PRACTICE LAW UNLESS THE
DEFAULT IS SET ASIDE ON MOTION TIMELY MADE UNDER THE RULES OF
PROCEDURE OF THE STATE BAR, (3) YOU SHALL NOT BE PERMITTED TO
PARTICIPATE FURTHER IN THESE PROCEEDINGS UNLESS YOUR DEFAULT IS SET
ASIDE, AND (4) YOU SHALL BE SUBJECT TO ADDITIONAL DISCIPLINE.
   (2) The board shall terminate the involuntary inactive enrollment
of a member under this subdivision when the member's default is set
aside on motion timely made under the State Bar Rules of Procedure or
the disciplinary proceedings are completed.
   (3) The enrollment under this subdivision is administrative in
character and no hearing is required.
   (4) Upon the involuntary inactive enrollment of a member under
this subdivision, the notice required by subdivision (b) of Section
6092.5 shall be promptly given.
   (5) The board may delegate its authority under this subdivision to
the presiding referee or presiding judge of the State Bar Court or
his or her designee.
   (f) The pendency or determination of a proceeding or investigation
provided for by this section shall not abate or terminate a
disciplinary investigation or proceeding except as required by the
facts and law in a particular case.
   (g) No membership fees shall accrue against the member during the
period he or she is enrolled as an inactive member pursuant to this
section.
   (h) The board may order a full range of interim remedies or final
discipline short of involuntary inactive enrollment, including, but
not limited to, conditions of probation following final discipline,
or directly ordered interim remedies, to restrict or supervise an
attorney's practice of law, as well as proceedings under subdivision
(a), (b), (c), or (d), or under Section 6102 or 6190. They may
include restrictions as to scope of practice, monetary accounting
procedures, review of performance by probation or other monitors
appointed by the board, or such other measures as may be determined,
after hearing, to protect present and future clients from likely
substantial harm. These restrictions may be imposed upon a showing as
provided in subdivision (c), except that where license restriction
is proposed, the showing required of the State Bar under the factors
described in subparagraph (B) of paragraph (2) of subdivision (c)
need not be made.
   SEC. 6.    Section 6008.1 of the   Business
and Professions Code   is amended to read: 
   6008.1.  No bond, note, debenture, evidence of indebtedness,
mortgage, deed of trust, assignment, pledge, contract, lease,
agreement  ,  or other contractual obligation of the State
Bar shall:
   (a) Create a debt or other liability of the State nor of any
entity other than the State Bar (or any successor public
corporation).
   (b) Create any personal liability on the part of the members of
the State Bar or the members of the board of  governors
  trustees  or any person executing the same, by
reason of the issuance or execution thereof.
   (c) Be required to be approved or authorized under the provisions
of any other law or regulation of this State.
   SEC. 7.    Section 6008.4 of the   Business
and Professions Code   is amended to read: 
   6008.4.  All powers granted to the State Bar by Sections 6001 and
6008.3 may be exercised and carried out by action of its board of
 governors   trustees  . In any resolution,
indenture, contract, agreement, or other instrument providing for,
creating, or otherwise relating to, any obligation of the State Bar,
the board may make, fix, and provide such terms, conditions,
covenants, restrictions, and other provisions as the board deems
necessary or desirable to  facilitiate  
facilitate  the creation, issuance, or sale of such obligation
or to provide for the payment or security of such obligation and any
interest thereon, including, but not limited to, covenants and
agreements relating to fixing and maintaining membership fees.
   SEC. 8.    Section 6009.7 is added to the  
Business and Professions Code   , to read:  
   6009.7.  (a) (1) The State Bar shall determine the manner by which
to reduce the board of trustees from 23 members to 19 members, as
described in Section 6011, pursuant to the election and appointment
processes specified in Sections 6012, 6013.1, 6013.2, and 6013.3.
   (2) The State Bar shall develop a plan for implementing the
transition to a 19-member board by January 31, 2012.
   (3) By January 31, 2012, the State Bar shall submit a written
report to the Senate and Assembly Judiciary Committees that includes,
but is not limited to, the implementation plan described in
paragraph (2).
   (b) The State Bar shall complete the transition to a 19-member
board no later than October 31, 2014.
   (c) The State Bar shall not change, reduce, shorten, lengthen, or
abolish the terms of board members commencing prior to December 31,
2011, or force any board member to resign in order to institute a
19-member board pursuant to this section.
   (d) The State Bar shall report annually to the Senate and Assembly
Judiciary Committees on its progress toward implementing the
transition to a 19-member board. 
   SEC. 9.    Section 6010 of the   Business
and Professions Code   is amended to read: 
   6010.   (a)    The State Bar is governed by a
board known as the board of  governors  
trustees  of the State Bar. The board has the powers and duties
conferred by this chapter. 
   (b) As used in this chapter or any other provision of law, "board
of governors" shall be deemed to refer to the board of trustees.

   SEC. 10.    Section 6011 of the   Business
and Professions Code   is amended to read: 
   6011.   (a)    The board  consists
  shall consist  of  22   no
more than   23  members  and the President of
the State Bar   and no less than 19 members  . 

   (b) It is the intent of the Legislature that the board consist of
no more than 23 members and no less than 19 members during the period
of transition from a 23-member board to a 19-member board, as
described in Section 6009.7. It is the intent of the Legislature that
the board, pursuant to the plan developed by the State Bar as
described in Section 6009.7, gradually decrease its size without
shortening, lengthening, or abolishing terms commencing prior to
December 31, 2011, with the ultimate goal of instituting a 19-member
board no later than October 31, 2014, pursuant to Section 6009.7.

   SEC. 11.    Section 6012 is added to the  
Business and Professions Code   , to read:  
   6012.  (a) State Bar Districts, as they existed on December 31,
2011, pursuant to Section 6012.5, as added by Chapter 1223 of the
Statutes of 1989, shall cease, pursuant to the act that added this
section, for purposes of the election of attorney members of the
board. However, attorney members who were elected in 2009, 2010, or
2011 to serve for a three-year term commencing at the conclusion of
the annual meeting held in those years shall be eligible to serve
their full three-year terms.
   (b) Commencing on January 1, 2012, State Bar Districts shall be
based on the six court of appeal districts as constituted pursuant to
Section 69100 of the Government Code, as they existed on December
31, 2011. The board shall provide for the election of six attorney
members of the board from these six State Bar Districts as specified
in Section 6013.2. 
   SEC. 12.    Section 6012.5 of the   Business
and Professions Code   is repealed   . 

   6012.5.  Notwithstanding any other provision of law, beginning
July 1, 1990, and every 10 years thereafter, the board shall adjust
the counties included in the State Bar Districts as they existed on
June 30, 1990, and shall provide for the election of attorney members
of the board from those districts. The primary consideration to be
employed when adjusting the counties included in the State Bar
Districts shall be the development of an equitable distribution of
attorney members to governors in each district, except for the
district containing rural counties such as those contained in State
Bar District No. 1 as it existed on June 30, 1990. 
   SEC. 13.    Section 6013.1 of the   Business
and Professions Code   is repealed.  
   6013.1.  The attorney membership of the board is composed of:
   (a) Fifteen members to be elected from the State Bar Districts
created by the board pursuant to Section 6012.5.
   (b) One member from the membership of the California Young Lawyers
Association appointed pursuant to Section 6013.4.
   This section shall become operative on July 1, 1990. 
   SEC. 14.    Section 6013.1 is added to the  
Business and Professions Code   , to read:  
   6013.1.  (a) The Supreme Court shall appoint five attorney members
of the board pursuant to a process that the Supreme Court may
prescribe. These attorney members shall serve for a term of three
years and may be reappointed by the Supreme Court for one additional
term only.
   (b) An attorney member elected pursuant to Section 6013.2 may be
appointed by the Supreme Court pursuant to this section to a term as
an appointed attorney member.
   (c) The Supreme Court shall fill any vacancy in the term of, and
make any reappointment of, any appointed attorney member.
   (d) When making appointments to the board, the Supreme Court
should consider appointing attorneys that represent the following
categories: legal services; small firm or solo practitioners;
historically underrepresented groups, including consideration of
race, ethnicity, gender, and sexual orientation; and legal academics.
In making appointments to the board, the Supreme Court should also
consider geographic distribution, years of practice, particularly
attorneys who are within the first five years of practice or age 36
and under, and participation in voluntary local or state bar
activities.
   (e) The State Bar shall be responsible for carrying out the
administrative responsibilities related to the appointment process
described in subdivision (a). 
   SEC. 15.    Section 6013.2 is added to the  
Business and Professions Code   , to read:  
   6013.2.  (a) Six members of the board shall be attorneys elected
from the State Bar Districts created by the board pursuant to Section
6012.
   (b) An attorney member elected pursuant to this section shall
serve for a term of three years. An elected attorney member may run
for reelection, but may be reelected to only serve one additional
term. 
   SEC. 15.5.    Section 6013.3 is added to the 
 Business and Professions Code   , to read:  
   6013.3.  (a) One attorney member of the board shall be appointed
by the Senate Committee on Rules and one attorney member shall be
appointed by the Speaker of the Assembly.
   (b) An attorney member appointed pursuant to this section shall
serve for a term of three years. An appointed attorney member may be
reappointed pursuant to this section. 
   SEC. 16.    Section 6013.4 of the   Business
and Professions Code   is repealed.  
   6013.4.  Notwithstanding any other provision of law, one member of
the board shall be elected by the board of directors of the
California Young Lawyers Association, from the membership of that
association.
   Such member shall serve for a term of one year, commencing at the
conclusion of the annual meeting next succeeding the election and is
eligible for reelection. A vacancy shall be filled by election in the
manner provided herein for the unexpired term. 
   SEC. 17.    Section 6013.6 of the   Business
and Professions Code   is amended to read: 
   6013.6.  (a) Except as provided in subdivision (b), any full-time
employee of any public agency who serves as a member of the Board of
 Governors   Trustees  of State Bar of
California shall not suffer any loss of rights, promotions, salary
increases, retirement benefits, tenure, or other job-related
benefits, which he or she would otherwise have been entitled to
receive.
   (b) Notwithstanding the provisions of subdivision (a), any public
agency which employs a person who serves as a member of the Board of
 Governors   Trustees  of the State Bar of
California may reduce the employee's salary, but no other right or
job-related benefit, pro rata to the extent that the employee does
not work the number of hours required by statute or written
regulation to be worked by other employees of the same grade in any
particular pay period and the employee does not claim available leave
time. The employee shall be afforded the opportunity to perform job
duties during other than regular working hours if such a work
arrangement is practical and would not be a burden to the public
agency.
   (c) The Legislature finds that service as a member of the Board of
 Governors   Trustees  of the State Bar of
California by a person employed by a public agency is in the public
interest.
   SEC. 18.    Section 6014 of the   Business
and Professions Code   is repealed.  
   6014.  Five of the attorney members of the board are elected each
year for terms of three years each.
   No person shall be nominated for, or eligible to, membership on
the board who has served as a member for three years next preceding
the expiration of his current term, or would have so served if his
current term were completed.
   Within the meaning of this section, the time intervening between
any two successive annual meetings is deemed to be one year.

   SEC. 19.    Section 6015 of the   Business
and Professions Code   is amended to read: 
   6015.  No person is eligible for attorney membership on the board
unless  he or   both of the following conditions
are satisfied: 
    (a)     He or  she is an active member
of the State Bar  and unless he or   . 
    (b)     Either: 
    (1)     If elected,   he or 
she maintains his or her principal office for the practice of law
within the State Bar district from which he
                   or she is elected. 
   (2) If appointed by the Supreme Court or the Legislature, he or
she maintains his or her principal office for the practice of law
within the State of California. 
   SEC. 20.    Section 6016 of the   Business
and Professions Code   is amended to read: 
   6016.  The term of office of each attorney member of the board
shall commence at the conclusion of the annual meeting next
succeeding his or her election  or appointment  , and he or
she shall hold office until his or her successor is elected  or
appointed  and qualified.  For the purposes of this section,
the time intervening between any two successive annual meetings
shall be deemed to be one year.  
   Vacancies 
    Except as specified in Section 6013.1, vacancies  in the
board of  governors   trustees  shall be
filled by the board by special election or by appointment for the
unexpired term.
   The board of  governors   trustees  may
provide by rule for an interim board to act in the place and stead of
the board when because of vacancies during terms of office there is
less than a quorum of the board.
   SEC. 21.    Section 6017 of the   Business
and Professions Code   is repealed.  
   6017.  Members of the board shall be elected for terms of three
years as follows:
   (a) In l939, one member each shall be elected from State Bar
Districts 4, 6 and 8 and two members from State Bar District 7.
   (b) In 1940, one member each shall be elected from State Bar
Districts 1, 3, 5, 7 and 9.
   (c) In 1941, one member each shall be elected from State Bar
Districts 2, 3 and 4 and two members shall be elected from State Bar
District 7.
   Thereafter, five members of the board shall be elected each year,
each for three year terms, from the State Bar Districts in which
vacancies will occur in that year by reason of the expiration of the
term of office of a member theretofore elected thereto. 
   SEC. 22.    Section 6018 of the   Business
and Professions Code   is amended to read: 
   6018.  Nominations of  elected  members of the board
shall be by petition signed by at least twenty persons entitled to
vote for such nominees.
   Only active members of the State Bar maintaining their principal
offices for the practice of the law in the respective State Bar
districts shall be entitled to vote for the member or members of the
board therefrom.
   SEC. 23.    Section 6019 of the   Business
and Professions Code   is amended to read: 
   6019.  Each place upon the board for which a member is to be
elected  or appointed  shall for the purposes of the
election  or appointment  be deemed a separate office.
   If only one member seeks election to an office, the member is
deemed elected. If two or more members seek election to the same
office, the election shall be by ballot. The ballots shall be
distributed to those entitled to vote at least twenty days prior to
the date of canvassing the ballots and shall be returned to a site or
sites designated by the State Bar, where they shall be canvassed at
least five days prior to the ensuing annual meeting. At the annual
meeting, the count shall be certified and the result officially
declared.
   In all other respects the elections shall be as the board may by
rule direct.
   SEC. 24.    Section 6020 of the   Business
and Professions Code   is amended to read: 
   6020.  The officers of the State Bar are a president, 
four   a  vice  presidents  
president  , a secretary  ,  and a treasurer. 
One of the vice presidents may also be elected to the office of
treasurer. 
   SEC. 25.   Section 6021 of the   Business
and Professions Code   is amended to read: 
   6021.   (a)     (1)    Within
the period of  270   90  days next
preceding the annual meeting, the board, at a meeting called for that
purpose, shall elect the president, vice  presidents
  president,  and treasurer for the ensuing year.
The president  , the vice president, and the treasurer 
shall be elected from among  those members of the board whose
terms on the board expire that year, or if no such member is able
and willing to serve, then from among the board members who have
completed at least one or more years of their terms  
all members of the board  . 
   The other officers shall be elected from among the board members
who have at least one or more years to complete their respective
terms.  
   The 
    (2)     The  newly elected president,
vice  presidents   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. 
   SEC. 26.    Section 6024 of the   Business
and Professions Code   is amended to read: 
   6024.  The president shall preside at all meetings of the State
Bar and of the board, and in the event of his or her absence or
inability to act,  one of  the vice 
presidents   president  shall preside.
   Other duties of the president and the vice  presidents
  president  , and the duties of the secretary and
the treasurer, shall be such as the board may prescribe.  The
president may vote only in the case of a tie vote of the other
members of the board present and voting. 
   SEC. 27.    Section 6026.7 is added to the  
Business and Professions Code   , to read:  
   6026.7.  The board shall ensure that its open meeting
requirements, as described in Section 6026.5, are consistent with,
and conform to, the Bagley-Keene Open Meeting Act (Article 9
(commencing with Section 11120) of Division 3 of Title 2 of the
Government Code). 
   SEC. 28.    Section 6033 of the   Business
and Professions Code   is amended to read: 
   6033.  (a) Notwithstanding any other provision of 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.
   (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 
Governors   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. 29.    Section 6036 of the   Business
and Professions Code   is amended to read: 
   6036.  (a) Any member of the board of  governors must
  trustees shall  disqualify himself or herself
from making, participating in the making of, or attempting to
influence any decisions of the board or a committee of the board in
which he or she has a financial interest, as that term is defined in
Section 87103 of the Government Code, that it is reasonably
foreseeable may be affected materially by the decision.
   (b) Any member of the board of  governors  
trustees  must likewise disqualify himself or herself when there
exists a personal nonfinancial interest which will prevent the
member from applying disinterested skill and undivided loyalty to the
State Bar in making or participating in the making of decisions.
   (c) Notwithstanding subdivisions (a) and (b), no member shall be
prevented from making or participating in the making of any decision
to the extent his or her participation is legally required for the
action or decision to be made. The fact that a member's vote is
needed to break a tie does not make his or her participation legally
required for the purposes of this section.
   (d) A member required to disqualify himself or herself because of
a conflict of interest shall (1) immediately disclose the interest,
(2) withdraw from any participation in the matter, (3) refrain from
attempting to influence another member, and (4) refrain from voting.
It is sufficient for the purpose of this section that the member
indicate only that he or she has a disqualifying financial or
personal interest.
   (e) For purposes of this article and unless otherwise specified,
"member" means any appointed or elected member of the board of
 governors   trustees  .
   SEC. 30.    Section 6037 of the   Business
and Professions Code   is amended to read: 
   6037.  No action or decision of the board or committee of the
board shall be invalid because of the participation therein by a
member or members in violation of Section 6036. However, any member
who intentionally violates the provisions of subdivision (a) of
Section 6036 is guilty of a misdemeanor, punishable by imprisonment
in the county jail not exceeding five days, or by a fine not
exceeding one thousand dollars ($1,000), or by both, and, if the
member is an attorney member of the board, a certified copy of the
record of conviction shall be transmitted to the Supreme Court for
disposition as provided in Sections 6101 and 6102. Upon entry of
final judgment of conviction, the member's term of office on the
board of  governors   trustees  , and
duties and authority incidental thereto, shall automatically
terminate. Any member who intentionally violates the provisions of
subdivision (b) of Section 6036 shall be liable for a civil penalty
not to exceed five hundred dollars ($500) for each violation, which
shall be assessed and recovered in a civil action in a court of
competent jurisdiction brought in the name of the state only by a
district attorney of a county in which the member resides or
maintains offices and the penalty collected shall be paid to the
treasurer of that county.
   SEC. 31.    Section 6040 of the   Business
and Professions Code   is amended to read: 
   6040.  The board of  governors   trustees
 may create local administrative committees and delegate to them
such of its powers and duties as seems advisable. The board may in
its discretion divide any committee into units or sections with
concurrent powers and duties in order to handle the work of the
committee more expeditiously. The board may also prescribe the powers
of the committee and the units or sections thereof.
   SEC. 32.    Section 6042 of the   Business
and Professions Code   is amended to read: 
   6042.  The members of local administrative committees, except
ex-officio members of the board of  governors  
trustees  , shall hold office at the pleasure of the board.
   SEC. 33.    Section 6046.7 of the   Business
and Professions Code   is amended to read: 
   6046.7.  (a) (1) Notwithstanding any other provision of law, the
Committee of Bar Examiners shall adopt rules that shall be effective
on and after January 1, 2008, for the regulation and oversight of
unaccredited law schools that are required to be authorized to
operate as a business in California and to have an administrative
office in California, including correspondence schools, that are not
accredited by the American Bar Association or the Committee of Bar
Examiners, with the goal of ensuring consumer protection and a legal
education at an affordable cost.
   (2) Notwithstanding any other provision of law, the committee
shall adopt rules that shall be effective on and after January 1,
2008, for the regulation and oversight of nonlaw school legal
programs leading to a juris doctor (J.D.) degree, bachelor of laws
(LL.B.) degree, or other law study degree.
   (b) Commencing January 1, 2008, the committee shall assess and
collect a fee from unaccredited law schools and legal programs in
nonlaw schools in an amount sufficient to fund the regulatory and
oversight responsibilities imposed by this section. Nothing in this
subdivision precludes the board of  governors  
trustees  from using other funds or fees collected by the State
Bar or by the committee to supplement the funding of the regulatory
and oversight responsibilities imposed by this section with other
funds, if that supplemental funding is deemed necessary and
appropriate to mitigate some of the additional costs of the
regulation and oversight to facilitate the provision of a legal
education at an affordable cost.
   SEC. 34.    Section 6069 of the   Business
and Professions Code   is amended to read: 
   6069.  (a) Every member of the State Bar shall be deemed by
operation of this law to have irrevocably authorized the disclosure
to the State Bar and the Supreme Court pursuant to Section 7473 of
the Government Code of any and all financial records held by
financial institutions as defined in subdivisions (a) and (b) of
Section 7465 of the Government Code pertaining to accounts which the
member must maintain in accordance with the Rules of Professional
Conduct; provided that no such financial records shall be disclosed
to the State Bar without a subpoena therefor having been issued
pursuant to Section 6049 of this code, and further provided that the
board of  governors   trustees  shall by
rule provide notice to the member similar to that notice provided for
in subdivision (d) of Section 7473 of the Government Code. Such
notice may be sent by mail addressed to the member's current office
or other address for State Bar purposes as shown on the member's
registration records of the State Bar.
   The State Bar shall, by mail addressed to the member's current
office or other address for State Bar purposes as shown on the member'
s registration records of the State Bar, notify its members annually
of the provisions of this subdivision (a).
   (b) With regard to the examination of all financial records other
than those mentioned in subdivision (a) of this section, held by
financial institutions as defined in subdivisions (a) and (b) of
Section 7465 of the Government Code, no such financial records shall
be disclosed to the State Bar without a subpoena therefor having been
issued pursuant to Section 6049 of this code and the board of
 governors   trustees  shall by rule
provide for service of a copy of the subpoena on the customer as
defined in subdivision (d) of Section 7465 of the Government Code and
an opportunity for the customer to move the board or committee
having jurisdiction to quash the subpoena prior to examination of the
financial records. Review of the actions of the board or any
committee on such motions shall be had only by the Supreme Court in
accordance with the procedure prescribed by the court. Service of a
copy of any subpoena issued pursuant to this subdivision (b) may be
made on a member of the State Bar by mail addressed to the member's
current office or other address for State Bar purposes as shown on
the member's registration records of the State Bar. If the customer
is other than a member, service shall be made pursuant to Chapter 4
(commencing with Section 413.10) of Title 5 of Part 2 of the Code of
Civil Procedure, except that service may be made by an employee of
the State Bar.
   (c) For purposes of this section, "member of the State Bar" or
"member" means every member of the State Bar, law firm in California
of which a member of the State Bar is a member, and law corporation
within the meaning of Article 10 of Chapter 4 of Division 3 of this
code.
   SEC. 35.    Section 6070 of the   Business
and Professions Code   is amended to read: 
   6070.  (a) The State Bar shall request the California Supreme
Court to adopt a rule of court authorizing the State Bar to establish
and administer a mandatory continuing legal education program. The
rule that the State Bar requests the Supreme Court to adopt shall
require that, within designated 36-month periods, all active members
of the State Bar shall complete at least 25 hours of legal education
activities approved by the State Bar or offered by a State Bar
approved provider, with four of those hours in legal ethics. A member
of the State Bar who fails to satisfy the mandatory continuing legal
education requirements of the program authorized by the Supreme
Court rule shall be enrolled as an inactive member pursuant to rules
adopted by the Board of  Governors   Trustees
 of the State Bar.
   (b) For purposes of this section, statewide associations of public
agencies and incorporated, nonprofit professional associations of
attorneys, shall be certified as State Bar approved providers upon
completion of an appropriate application process to be established by
the State Bar. The certification may be revoked only by majority
vote of the board, after notice and hearing, and for good cause
shown. Programs provided by the California District Attorneys
Association or the California Public Defenders Association, or both,
including, but not limited to, programs provided pursuant to Title
1.5 (commencing with Section 11500) of Part 4 of the Penal Code, are
deemed to be legal education activities approved by the State Bar or
offered by a State Bar approved provider.
   (c) Notwithstanding the provisions of subdivision (a), officers
and elected officials of the State of California, and full-time
professors at law schools accredited by the State Bar of California,
the American Bar Association, or both, shall be exempt from the
provisions of this section. Full-time employees of the State of
California, acting within the scope of their employment, shall be
exempt from the provisions of this section. Nothing in this section
shall prohibit the State of California, or any political subdivision
thereof, from establishing or maintaining its own continuing
education requirements for its employees.
   (d) The State Bar shall provide and encourage the development of
low-cost programs and materials by which members may satisfy their
continuing education requirements. Special emphasis shall be placed
upon the use of internet capabilities and computer technology in the
development and provision of no-cost and low-cost programs and
materials. Towards this purpose, the State Bar shall ensure that by
July 1, 2000, any member possessing or having access to the internet
or specified generally available computer technology shall be capable
of satisfying the full self-study portion of his or her MCLE
requirement at a cost of fifteen dollars ($15) per hour or less.
   SEC. 36.    Section 6076 of the   Business
and Professions Code   is amended to read: 
   6076.  With the approval of the Supreme Court, the Board of
 Governors   Trustees  may formulate and
enforce rules of professional conduct for all members of the bar in
the State.
   SEC. 37.    Section 6076.5 of t   he 
 Business and Professions Code   is amended to read:

   6076.5.  (a) With the approval of the Supreme Court, the members
of the State Bar may formulate by initiative, pursuant to the
provisions of this section, rules of professional conduct for all
members of the bar in the state.
   (b) Only active members of the State Bar shall be proponents of
initiative measures pursuant to this section.
   (c) Prior to the circulation of any initiative petition for
signatures, the proponents shall file the text of the proposed
initiative measure with both the Secretary of the State Bar and the
Clerk of the Supreme Court.
   (d) Upon receipt of the text of a proposed initiative measure, the
secretary shall prepare a summary of the chief purposes and points
of the proposed initiative measure. The summary shall give a true and
impartial statement of the purpose of the measure in such language
that it shall not be an argument or likely to create prejudice either
for or against the measure. The secretary shall provide a copy of
the summary to the proponents within 30 days after receipt of the
final version of the proposed measure. If during the 30-day period
the proponents submit amendments, other than technical,
nonsubstantive amendments, to the final version of such measure, the
secretary shall provide a copy of the summary to the proponents
within 30 days after receipt of such amendments.
   (e) The proponents of any proposed initiative measure shall, prior
to its circulation, place upon each section of the petition, above
the text of the measure and across the top of each page of the
petition on which signatures are to appear, in boldface type not
smaller than 12-point, the summary prepared by the secretary.
   (f) All such initiative petitions shall have printed across the
top thereof in 12-point boldface type the following: "Initiative
measure to be submitted directly to the members of the State Bar of
California."
   (g) Any initiative petition may be presented in sections, but each
section shall contain a full and correct copy of the title and text
of the proposed measure.
   (h) The petition sections shall be designed so that each signer
shall personally affix his or her:
   (1) Signature;
   (2) Printed name;
   (3) State Bar membership number; and
   (4) Principal office address for the practice of law.
   Only a person who is an active member of the State Bar at the time
of signing the petition is entitled to sign it.
   The number of signatures attached to each section shall be at the
discretion of the person soliciting the signatures.
   (i) Any member of the State Bar, or employee or agent thereof, may
circulate an initiative petition anywhere within the state.
   Any person circulating a petition may sign the section he or she
is circulating if he or she is otherwise qualified to do so.
   (j) Each section shall have attached thereto the affidavit of the
person soliciting the signatures stating:
   (1) The qualifications of the solicitor;
   (2) That the signatures affixed to the section were made in his or
her presence;
   (3) That to the best of his or her knowledge and belief, each
signature is the genuine signature of the person whose name it
purports to be;
   (4) That to the best of his or her knowledge and belief, each
State Bar membership number is the genuine membership number of the
person whose number it purports to be; and
   (5) The dates between which all signatures were obtained.
   The affidavit shall be verified free of charge by any officer
authorized to administer oaths.
   Petitions so verified shall be prima facie evidence that the
signatures thereon are genuine and that the persons signing are
active members of the State Bar. Unless and until it be otherwise
proven upon official investigation, it shall be presumed that the
petition presented contains the signatures of the requisite number of
active members of the State Bar.
   (k) All sections of the petition shall be filed with the Secretary
of the State Bar within 180 days after the date upon which the
secretary mailed or delivered to the proponents a copy of the summary
specified in subdivision (d), but all sections circulated in any
State Bar district shall be filed at the same time.
   (  l  ) No initiative measure shall be submitted to the
members of the State Bar for a vote unless with regard to each State
Bar district the petition has been signed by at least 20 percent of
the number of active members whose principal office for the practice
of law was within the district as of the January 1 preceding the date
upon which all sections of the petition from all State Bar districts
were filed with the secretary.
   (m) The secretary shall promptly determine the total number of
signatures from each State Bar district affixed to the petition. If
the total number of signatures from any State Bar district is less
than the number required by subdivision (  l  ), the
secretary shall so notify the proponents and no further action shall
be taken in regard to the petition. If the total number of signatures
from each and every State Bar district is equal to or greater than
the number required by subdivision (  l  ), the secretary
shall verify the names and State Bar membership numbers, and may, in
his  or her  discretion, verify the office addresses and
signatures of the persons who signed the petition. If the total
number of verified signers of the petition from any State Bar
district is less than the number required by subdivision (  l
 ), the secretary shall so notify the proponents and no further
action shall be taken in regard to the petition. If the total number
of verified signers of the petition from each and every State Bar
district is equal to or greater than the number required by
subdivision (  l  ), the secretary shall cause the
initiative measure to be submitted within 90 days to all of the
active members of the State Bar for mail vote pursuant to such rules
and regulations as the board may from time to time prescribe.
   (n) The board of  governors   trustees 
, without petition, may also direct the secretary to cause an
initiative measure embodying a rule of professional conduct
formulated by the board to be submitted to all of the active members
of the State Bar for mail vote in accordance with the rules and
regulations prescribed by the board.
   (o) If a majority of the active members of the State Bar fail to
approve the initiative measure, the secretary shall so notify the
proponents and the Clerk of the Supreme Court.
   If a majority of the active members of the State Bar approve the
initiative measure, the secretary shall cause the measure to be
submitted to the Supreme Court for its consideration as a rule of
professional conduct.
   (p) The rules of professional conduct submitted to the Supreme
Court pursuant to the provisions of this section, when approved by
the Supreme Court, shall have the same force and effect as the rules
of professional conduct formulated by the board of  governors
  trustees  and approved by the Supreme Court
pursuant to Sections 6076 and 6077.
                                               SEC. 38. 
 Section 6079.5 of the   Business and Professions Code
  is amended to read: 
   6079.5.  (a) The board shall appoint a lawyer admitted to practice
in California to serve as chief trial counsel. He or she shall be
appointed for a term of four years and may be reappointed for
additional four-year periods. He or she shall serve at the pleasure
of the board. He or she shall not engage in private practice. The
State Bar shall notify the Senate Rules Committee and the Senate and
Assembly Judiciary Committees within seven days of the dismissal or
hiring of a chief trial counsel.
   The appointment of the chief trial counsel is subject to
confirmation by the Senate, and the time limits prescribed in Section
1774 of the Government Code for Senate confirmation and for service
in office are applicable to the appointment.
   He or she shall report to and serve under the Regulation,
Admissions, and Discipline Oversight Committee of the Board of
 Governors   Trustees  of the State Bar or
its successor committee on attorney discipline, and shall not serve
under the direction of the chief executive officer.
   (b) The chief trial counsel shall have the following
qualifications:
   (1) Be an attorney licensed to practice in the State of
California, be in good standing and shall not have committed any
disciplinary offenses in California or any other jurisdiction.
   (2) Have a minimum of five years of experience in the practice of
law, including trial experience, with law practice in broad areas of
the law.
   (3) Have a minimum of two years of prosecutorial experience or
similar experience in administrative agency proceedings or
disciplinary agencies.
   (4) Have a minimum of two years of experience in an administrative
role, overseeing staff functions.
   The board may except an appointee from any of the above
qualifications for good cause upon a determination of necessity to
obtain the most qualified person.
   On or after July 1, 1987, the chief trial counsel may, as
prescribed by the Supreme Court, petition the court for a different
disposition of a matter than the recommendations of the review
department or the board to the court.
   SEC. 39.    Section 6086 of the   Business
and Professions Code   is amended to read: 
   6086.  The board of governors   trustees
 , subject to the provisions of this chapter, may by rule
provide the mode of procedure in all cases of complaints against
members.
  SEC. 40.    Section 6086.5 of the   Business
and Professions Code   is amended to read: 
   6086.5.  The board of  governors   trustees
 shall establish a State Bar Court, to act in its place and
stead in the determination of disciplinary and reinstatement
proceedings and proceedings pursuant to subdivisions (b) and (c) of
Section 6007 to the extent provided by rules adopted by the board of
 governors   trustees  pursuant to this
chapter. In these proceedings the State Bar Court may exercise the
powers and authority vested in the board of governors
  trustees  by this chapter, including those powers
and that authority vested in committees of, or established by, the
board, except as limited by rules of the board of  governors
  trustees  within the scope of this chapter.
   For the purposes of Sections 6007, 6043, 6049, 6049.2, 6050, 6051,
6052, 6077 (excluding the first sentence), 6078, 6080, 6081, and
6082, "board" includes the State Bar Court.
   Nothing in this section shall authorize the State Bar Court to
adopt rules of professional conduct or rules of procedure.
   The Executive Committee of the State Bar Court may adopt rules of
practice for the conduct of all proceedings within its jurisdiction.
These rules may not conflict with the rules of procedure adopted by
the board, unless approved by the Supreme Court.
   SEC. 41.    Section 6086.14 of the  
Business and Professions Code   is amended to read: 
   6086.14.  (a) The Board of  Governors  
Trustees  of the State Bar is authorized to formulate and adopt
rules and regulations necessary to establish an alternative dispute
resolution discipline mediation program to resolve complaints against
attorneys that do not warrant the institution of formal
investigation or prosecution. The program should identify sources of
client dissatisfaction and provide a mediation process to resolve
those complaints or disputes unless the client objects to mediation.
The refusal of an attorney to participate in the State Bar's
alternative dispute resolution discipline mediation program
established pursuant to this section, or the failure of an attorney
to comply with any agreement reached in the State Bar's alternative
dispute resolution discipline mediation program may subject that
attorney to discipline. The rules may authorize discipline mediation
under this article to proceed under discipline mediation programs
sponsored by local bar associations in this state. The rules shall
authorize a local bar association to charge a reasonable
administrative fee for the purpose of offsetting the costs of
maintaining the discipline mediation programs.
   (b) The board of  governors   trustees 
shall have the authority to formulate and adopt standards and
guidelines to implement the alternative dispute resolution discipline
mediation program. The standards and guidelines formulated and
adopted by the board, as from time to time amended, shall be
effective and binding on all members, and may encompass any
discipline mediation programs sponsored by local bar associations.
   (c) It is the intent of the Legislature that the authorization of
an alternative dispute resolution discipline mediation program not be
construed as limiting or altering the powers of the Supreme Court of
this state or the State Bar to disbar or discipline members of the
State Bar. The records relating to the alternative dispute resolution
discipline mediation program may be made available in any subsequent
disciplinary action pursuant to any rule, standard, or guideline
adopted by the Board of  Governors   Trustees
 of the State Bar.
   SECTION 1.   SEC. 42.   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 2012 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,
2013, and, as of that date, is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.
   SEC. 43.    Section 6140.05 of the  
Business and Professions Code   is amended to read: 
   6140.05.  (a) The invoice provided to members for payment of the
annual membership fee shall provide each member the option of
deducting five dollars ($5) from the annual fee if the member elects
not to support lobbying and related activities by the State Bar
outside of the parameters established by the United States Supreme
Court in Keller v. State Bar of California (1990) 496 U.S. 1.
   (b) For the support or defense of lobbying and related activities
conducted by the State Bar on or after January 1, 2000, outside of
the parameters of Keller v. State Bar of California, and in support
or defense of any litigation arising therefrom, the Board of 
Governors   Trustees  of the State Bar shall not
expend a sum exceeding the following: the product of the number of
members paying their annual dues who did not elect the optional
deduction multiplied by five dollars ($5).
   Moneys collected pursuant to this section shall not be deemed
voluntary fees or funds for the purpose of subdivision (c) of Section
6031.5.
   (c) As used in this section, "lobbying and related activities by
the State Bar" includes the consideration of measures by the Board of
 Governors   Trustees  of the State Bar
that are deemed outside the parameters established in Keller v. State
Bar, the purview determination, lobbying and the preparation for
lobbying of the measures, and any litigation in support or defense of
that lobbying. The determination of these costs shall include, but
not be limited to, overhead and administrative costs.
   SEC. 44.    Section 6140.12 is added to the 
 Business and Professions Code  , to read:  
   6140.12.  The board shall complete and implement a five-year
strategic plan to be updated every two years. In conjunction with the
submission of the board's proposed final budget as required by
Section 6140.1, the president shall report to the Supreme Court, the
Governor, and the Senate and Assembly Judiciary Committees on the
measures the board has taken to implement the strategic plan and
shall indicate the measures the board will need to take in the
remaining years of the strategic plan to address the projected needs
contained in the plan. 
   SEC. 45.    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 active members 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
and conditions 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  governors
  trustees  .
   (b) Upon making a payment to a person who has applied to the fund
for payment to relieve or mitigate pecuniary losses caused by the
dishonest conduct of an active member of the State Bar, the State Bar
is subrogated, to the extent of that payment, to the rights of the
applicant against any person or persons who, or entity that, caused
the pecuniary loss. The State Bar may bring an action to enforce
those rights within three years from the date of payment to the
applicant.
   (c) Any attorney whose actions have caused the payment of funds to
a claimant from the Client Security Fund shall reimburse the fund
for all moneys paid out as a result of his or her conduct with
interest, in addition to payment of the assessment for the procedural
costs of processing the claim, as a condition of continued practice.
The reimbursed amount, plus applicable interest and costs, shall be
added to and become a part of the membership fee of a publicly
reproved or suspended member for the next calendar year. For a member
who resigns with disciplinary charges pending or a member who is
suspended or disbarred, the reimbursed amount, plus applicable
interest and costs, shall be paid as a condition of reinstatement of
membership.
   (d) Any assessment against an attorney pursuant to subdivision (c)
that is part of an order imposing a public reproval on a member or
is part of an order imposing discipline or accepting a resignation
with a disciplinary matter pending, may also be enforced as a money
judgment. This subdivision does not limit the power of the Supreme
Court to alter the amount owed or to authorize the State Bar Court,
in the enforcement of a judgment under this subdivision, to approve
an agreement for the compromise of that judgment.
   SEC. 46.    Section 6161 of the   Business
and Professions Code   is amended to read: 
   6161.  An applicant for registration as a law corporation shall
supply to the State Bar all necessary and pertinent documents and
information requested by the State Bar concerning the applicant's
plan of operation, including, but not limited to, a copy of its
articles of incorporation, certified by the Secretary of State, a
copy of its bylaws, certified by the secretary of the corporation,
the name and address of the corporation, the names and addresses of
its officers, directors, shareholders, members, if any, and employees
who will render professional services, the address of each office,
and any fictitious name or names which the corporation intends to
use. The State Bar may provide forms of application. If the Board of
 Governors   Trustees  or a committee
authorized by it finds that the corporation is duly organized and
existing or duly qualified for the transaction of intrastate business
pursuant to the General Corporation Law, or pursuant to subdivision
(b) of Section 13406 of the Corporations Code, that each officer
(except as provided in Section 13403 of the Corporations Code),
director, shareholder (except as provided in subdivision (b) of
Section 13406 of the Corporations Code), and each employee who will
render professional services is a licensed person as defined in the
Professional Corporation Act, or a person licensed to render the same
professional services in the jurisdiction or jurisdictions in which
the person practices, and that from the application it appears that
the affairs of the corporation will be conducted in compliance with
law and the rules and regulations of the State Bar, the State Bar
shall upon payment of the registration fee in such amount as it may
determine issue a certificate of registration. The applicant shall
include with the application, for each shareholder of the corporation
licensed in a foreign country but not in this state or in any other
state, territory, or possession of the United States, a certificate
from the authority in the foreign country currently having final
jurisdiction over the practice of law, which shall verify the
shareholder's admission to practice in the foreign country, the date
thereof, and the fact that the shareholder is currently in good
standing as an attorney or counselor at law or the equivalent. If the
certificate is not in English, there shall be included with the
certificate a duly authenticated English translation thereof. The
application shall be signed and verified by an officer of the
corporation.
   SEC. 47.    Section 6168 of   the  
Business and Professions Code   is amended to read: 
   6168.  The State Bar may conduct an investigation of the conduct
of the business of a law corporation.
   Upon such investigation, the Board of  Governors 
 Trustees  , or a committee authorized by it, shall have
power to issue subpoenas, administer oaths, examine witnesses  ,
 and compel the production of records, in the same manner as
upon an investigation or formal hearing in a disciplinary matter
under the State Bar Act. Such investigation shall be private and
confidential, except to the extent that disclosure of facts and
information may be required if a cease and desist order is thereafter
issued and subsequent proceedings are had.
   SEC. 48.    Section 6169 of the   Business
and Professions Code   is amended to read: 
   6169.  (a) When there is reason to believe that a law corporation
has violated or is about to violate any of the provisions of this
article or the Professional Corporation Act or of any other pertinent
statute, rule, or regulation, the State Bar may issue a notice
directing the corporation to show cause why it should not be ordered
to cease and desist from specified acts or conduct or its certificate
of registration should not be suspended or revoked. A copy of the
notice shall be served upon the corporation in the manner provided
for service of summons upon a California corporation.
   (b) A hearing upon the notice to show cause shall be held before a
standing or special committee appointed by the board of 
governors   trustees  . Upon the hearing, the State
Bar and the corporation shall be entitled to the issue of subpoenas,
to be represented by counsel, to present evidence, and examine and
cross-examine witnesses.
   (c) The hearing committee shall make findings in writing and shall
either recommend that the proceeding be dismissed or that a cease
and desist order be issued or that the certificate of registration of
the corporation be suspended or revoked. The determination may be
reviewed by the board of  governors   trustees
 or by a committee authorized by the Board of  Governors
 Trustees  to act in its stead, upon written
petition for review, filed with the State Bar by the corporation or
the State Bar within 20 days after service of the findings and
recommendation. Upon review, the board of  governors
  trustees  or the committee may take additional
evidence, may adopt new or amended findings, and make such order as
may be just, as to the notice to show cause.
   (d) Subdivisions (a), (b), and (c) shall not apply to the
suspension or revocation of the certificate of registration of a
corporation in either of the following cases:
   (1) The death of a sole shareholder, as provided in Section
6171.1.
   (2) Failure to file the annual report and renew the certificate of
registration, as provided in Sections 6161.1 and 6163.
   SEC. 49.    Section 6170 of the   Business
and Professions Code   is amended to read: 
   6170.  Any action of the State Bar or the Board of 
Governors   Trustees  or a committee of the State
Bar, or the chief executive officer of the State Bar or the designee
of the  the  chief executive officer, provided for
in this article, may be reviewed by the Supreme Court by petition for
review pursuant to rules prescribed by the Supreme Court.
   SEC. 50.    Section 6190.1 of the   Business
and Professions Code   is amended to read: 
   6190.1.  (a) An application for assumption by the court of
jurisdiction under this article shall be made to the superior court
for the county where the attorney maintains or most recently has
maintained his or her principal office for the practice of law or
where such attorney resides. The court may assume jurisdiction over
the law practice of an attorney to the extent provided in Article 11
(commencing with Section 6180) of Chapter 4 of Division 3.
   (b) Where an attorney consents to the assumption by the court of
jurisdiction under the article, the State Bar, a client, or an
interested person or entity may apply to the court for assumption of
jurisdiction over the law practice of the attorney. In any proceeding
under this subdivision, the State Bar shall be permitted to
intervene and to assume primary responsibility for conducting the
action.
   (c) Where an attorney does not consent to the assumption by the
court of jurisdiction under this article, only the State Bar may
apply to the court for assumption of jurisdiction over the law
practice of the attorney.
   (d) The chief trial counsel may appoint, pursuant to rules adopted
by the board of  governors   trustees  ,
an examiner or  co-examiner   coexaminer 
from among the members of the State Bar in an investigation or formal
proceeding under this article.
   SEC. 51.    Section 6200 of the   Business
and Professions Code   is amended to read: 
   6200.  (a) The board of  governors   trustees
 shall, by rule, establish, maintain, and administer a system
and procedure for the arbitration, and may establish, maintain, and
administer a system and procedure for mediation of disputes
concerning fees, costs, or both, charged for professional services by
members of the State Bar or by members of the bar of other
jurisdictions. The rules may include provision for a filing fee in
the amount as the board may, from time to time, determine.
   (b) This article shall not apply to any of the following:
   (1) Disputes where a member of the State Bar of California is also
admitted to practice in another jurisdiction or where an attorney is
only admitted to practice in another jurisdiction, and he or she
maintains no office in the State of California, and no material
portion of the services were rendered in the State of California.
   (2) Claims for affirmative relief against the attorney for damages
or otherwise based upon alleged malpractice or professional
misconduct, except as provided in subdivision (a) of Section 6203.
   (3) Disputes where the fee or cost to be paid by the client or on
his or her behalf has been determined pursuant to statute or court
order.
   (c) Unless the client has agreed in writing to arbitration under
this article of all disputes concerning fees, costs, or both,
arbitration under this article shall be voluntary for a client and
shall be mandatory for an attorney if commenced by a client.
Mediation under this article shall be voluntary for an attorney and a
client.
   (d) The board of  governors   trustees 
shall adopt rules to allow arbitration and mediation of attorney fee
and cost disputes under this article to proceed under arbitration and
mediation systems sponsored by local bar associations in this state.
Rules of procedure promulgated by local bar associations are subject
to review by the board or a committee designated by the board to
ensure that they provide for a fair, impartial, and speedy hearing
and award.
   (e) In adopting or reviewing rules of arbitration under this
section, the board shall provide that the panel shall include one
attorney member whose area of practice is either, at the option of
the client, civil law, if the attorney's representation involved
civil law, or criminal law, if the attorney's representation involved
criminal law, as follows:
   (1) If the panel is composed of three members the panel shall
include one attorney member whose area of practice is either, at the
option of the client, civil or criminal law, and shall include one
lay member.
   (2) If the panel is composed of one member, that member shall be
an attorney whose area of practice is either, at the option of the
client, civil or criminal law.
   (f) In any arbitration or mediation conducted pursuant to this
article by the State Bar or by a local bar association, pursuant to
rules of procedure approved by the board of  governors
  trustees  , an arbitrator or mediator, as well as
the arbitrating association and its directors, officers, and
employees, shall have the same immunity which attaches in judicial
proceedings.
   (g) In the conduct of arbitrations under this article the
arbitrator or arbitrators may do all of the following:
   (1) Take and hear evidence pertaining to the proceeding.
   (2) Administer oaths and affirmations.
   (3) Issue subpoenas for the attendance of witnesses and the
production of books, papers, and documents pertaining to the
proceeding.
   (h) Participation in mediation is a voluntary consensual process,
based on direct negotiations between the attorney and his or her
client, and is an extension of the negotiated settlement process. All
discussions and offers of settlement are confidential and may not be
disclosed in any subsequent arbitration or other proceedings.
   SEC. 52.    Section 6201 of the   Business
and Professions Code   is amended to read: 
   6201.  (a) The rules adopted by the board of  governors
  trustees  shall provide that an attorney shall
forward a written notice to the client prior to or at the time of
service of summons or claim in an action against the client, or prior
to or at the commencement of any other proceeding against the client
under a contract between attorney and client which provides for an
alternative to arbitration under this article, for recovery of fees,
costs, or both. The written notice shall be in the form that the
board of  governors   trustees  prescribes,
and shall include a statement of the client's right to arbitration
under this article. Failure to give this notice shall be a ground for
the dismissal of the action or other proceeding. The notice shall
not be required, however, prior to initiating mediation of the
dispute.
   The rules adopted by the board of  governors 
 trustees  shall provide that the client's failure to
request arbitration within 30 days after receipt of notice from the
attorney shall be deemed a waiver of the client's right to
arbitration under the provisions of this article.
   (b) If an attorney, or the attorney's assignee, commences an
action in any court or any other proceeding and the client is
entitled to maintain arbitration under this article, and the dispute
is not one to which subdivision (b) of Section 6200 applies, the
client may stay the action or other proceeding by serving and filing
a request for arbitration in accordance with the rules established by
the board of  governors   trustees 
pursuant to subdivision (a) of Section 6200. The request for
arbitration shall be served and filed prior to the filing of an
answer in the action or equivalent response in the other proceeding;
failure to so request arbitration prior to the filing of an answer or
equivalent response shall be deemed a waiver of the client's right
to arbitration under the provisions of this article if notice of the
client's right to arbitration was given pursuant to subdivision (a).
   (c) Upon filing and service of the request for arbitration, the
action or other proceeding shall be automatically stayed until the
award of the arbitrators is issued or the arbitration is otherwise
terminated. The stay may be vacated in whole or in part, after a
hearing duly noticed by any party or the court, if and to the extent
the court finds that the matter is not appropriate for arbitration
under the provisions of this article. The action or other proceeding
may thereafter proceed subject to the provisions of Section 6204.
   (d) A client's right to request or maintain arbitration under the
provisions of this article is waived by the client commencing an
action or filing any pleading seeking either of the following:
   (1) Judicial resolution of a fee dispute to which this article
applies.
   (2) Affirmative relief against the attorney for damages or
otherwise based upon alleged malpractice or professional misconduct.
   (e) If the client waives the right to arbitration under this
article, the parties may stipulate to set aside the waiver and to
proceed with arbitration.
   SEC. 53.    Section 6203 of the   Business
and Professions Code   is amended to read: 
   6203.  (a) The award shall be in writing and signed by the
arbitrators concurring therein. It shall include a determination of
all the questions submitted to the arbitrators, the decision of which
is necessary in order to determine the controversy. The award shall
not include any award to either party for
                  costs or attorney's fees incurred in preparation
for or in the course of the fee arbitration proceeding,
notwithstanding any contract between the parties providing for such
an award or costs or attorney's fees. However, the filing fee paid
may be allocated between the parties by the arbitrators. This section
shall not preclude an award of costs or attorney's fees to either
party by a court pursuant to subdivision (c) of this section or of
subdivision (d) of Section 6204. The State Bar, or the local bar
association delegated by the State Bar to conduct the arbitration,
shall deliver to each of the parties with the award, an original
declaration of service of the award.
   Evidence relating to claims of malpractice and professional
misconduct, shall be admissible only to the extent that those claims
bear upon the fees, costs, or both, to which the attorney is
entitled. The arbitrators shall not award affirmative relief, in the
form of damages or offset or otherwise, for injuries underlying the
claim. Nothing in this section shall be construed to prevent the
arbitrators from awarding the client a refund of unearned fees,
costs, or both previously paid to the attorney.
   (b) Even if the parties to the arbitration have not agreed in
writing to be bound, the arbitration award shall become binding upon
the passage of 30 days after service of notice of the award, unless a
party has, within the 30 days, sought a trial after arbitration
pursuant to Section 6204. If an action has previously been filed in
any court, any petition to confirm, correct, or vacate the award
shall be to the court in which the action is pending, and may be
served by mail on any party who has appeared, as provided in Chapter
4 (commencing with Section 1003) of Title 14 of Part 2 of the Code of
Civil Procedure; otherwise it shall be in the same manner as
provided in Chapter 4 (commencing with Section 1285) of Title 9 of
Part 3 of the Code of Civil Procedure. If no action is pending in any
court, the award may be confirmed, corrected, or vacated by petition
to the court having jurisdiction over the amount of the arbitration
award, but otherwise in the same manner as provided in Chapter 4
(commencing with Section 1285) of Title 9 of Part 3 of the Code of
Civil Procedure.
   (c) Neither party to the arbitration may recover costs or attorney'
s fees incurred in preparation for or in the course of the fee
arbitration proceeding with the exception of the filing fee paid
pursuant to subdivision (a) of this section. However, a court
confirming, correcting, or vacating an award under this section may
award to the prevailing party reasonable fees and costs incurred in
obtaining confirmation, correction, or vacation of the award
including, if applicable, fees and costs on appeal. The party
obtaining judgment confirming, correcting, or vacating the award
shall be the prevailing party except that, without regard to
consideration of who the prevailing party may be, if a party did not
appear at the arbitration hearing in the manner provided by the rules
adopted by the board of  governors   trustees
 , that party shall not be entitled to attorney's fees or costs
upon confirmation, correction, or vacation of the award.
   (d) (1) In any matter arbitrated under this article in which the
award is binding or has become binding by operation of law or has
become a judgment either after confirmation under subdivision (c) or
after a trial after arbitration under Section 6204, or in any matter
mediated under this article, if: (A) the award, judgment, or
agreement reached after mediation includes a refund of fees or costs,
or both, to the client and (B) the attorney has not complied with
that award, judgment, or agreement the State Bar shall enforce the
award, judgment, or agreement by placing the attorney on involuntary
inactive status until the refund has been paid.
   (2) The State Bar shall provide for an administrative procedure to
determine whether an award, judgment, or agreement should be
enforced pursuant to this subdivision. An award, judgment, or
agreement shall be so enforced if:
   (A) The State Bar shows that the attorney has failed to comply
with a binding fee arbitration award, judgment, or agreement rendered
pursuant to this article.
   (B) The attorney has not proposed a payment plan acceptable to the
client or the State Bar.
   However, the award, judgment, or agreement shall not be so
enforced if the attorney has demonstrated that he or she (i) is not
personally responsible for making or ensuring payment of the refund,
or (ii) is unable to pay the refund.
   (3) An attorney who has failed to comply with a binding award,
judgment, or agreement shall pay administrative penalties or
reasonable costs, or both, as directed by the State Bar. Penalties
imposed shall not exceed 20 percent of the amount to be refunded to
the client or one thousand dollars ($1,000), whichever is greater.
Any penalties or costs, or both, that are not paid shall be added to
the membership fee of the attorney for the next calendar year.
   (4) The board shall terminate the inactive enrollment upon proof
that the attorney has complied with the award, judgment, or agreement
and upon payment of any costs or penalties, or both, assessed as a
result of the attorney's failure to comply.
   (5) A request for enforcement under this subdivision shall be made
within four years from the date (A) the arbitration award was
mailed, (B) the judgment was entered, or (C) the date the agreement
was signed. In an arbitrated matter, however, in no event shall a
request be made prior to 100 days from the date of the service of a
signed copy of the award. In cases where the award is appealed, a
request shall not be made prior to 100 days from the date the award
has become final as set forth in this section.
  SEC. 54.    Section 6204 of the   Business
and Professions Code   is amended to read: 
   6204.  (a) The parties may agree in writing to be bound by the
award of arbitrators appointed pursuant to this article at any time
after the dispute over fees, costs, or both, has arisen. In the
absence of such an agreement, either party shall be entitled to a
trial after arbitration if sought within 30 days, pursuant to
subdivisions (b) and (c), except that if either party willfully fails
to appear at the arbitration hearing in the manner provided by the
rules adopted by the board of  governors  
trustees  , that party shall not be entitled to a trial after
arbitration. The determination of willfulness shall be made by the
court. The party who failed to appear at the arbitration shall have
the burden of proving that the failure to appear was not willful. In
making its determination, the court may consider any findings made by
the arbitrators on the subject of a party's failure to appear.
   (b) If there is an action pending, the trial after arbitration
shall be initiated by filing a rejection of arbitration award and
request for trial after arbitration in that action within 30 days
after service of notice of the award. If the rejection of arbitration
award has been filed by the plaintiff in the pending action, all
defendants shall file a responsive pleading within 30 days following
service upon the defendant of the rejection of arbitration award and
request for trial after arbitration. If the rejection of arbitration
award has been filed by the defendant in the pending action, all
defendants shall file a responsive pleading within 30 days after the
filing of the rejection of arbitration award and request for trial
after arbitration. Service may be made by mail on any party who has
appeared; otherwise service shall be made in the manner provided in
Chapter 4 (commencing with Section 413.10) of Title 5 of Part 2 of
the Code of Civil Procedure. Upon service and filing of the rejection
of arbitration award, any stay entered pursuant to Section 6201
shall be vacated, without the necessity of a court order.
   (c) If no action is pending, the trial after arbitration shall be
initiated by the commencement of an action in the court having
jurisdiction over the amount of money in controversy within 30 days
after service of notice of the award. After the filing of such an
action, the action shall proceed in accordance with the provisions of
Part 2 (commencing with Section 307) of the Code of Civil Procedure,
concerning civil actions generally.
   (d) The party seeking a trial after arbitration shall be the
prevailing party if that party obtains a judgment more favorable than
that provided by the arbitration award, and in all other cases the
other party shall be the prevailing party. The prevailing party may,
in the discretion of the court, be entitled to an allowance for
reasonable attorney's fees and costs incurred in the trial after
arbitration, which allowance shall be fixed by the court. In fixing
the attorney's fees, the court shall consider the award and
determinations of the arbitrators, in addition to any other relevant
evidence.
   (e) Except as provided in this section, the award and
determinations of the arbitrators shall not be admissible nor operate
as collateral estoppel or res judicata in any action or proceeding.
   SEC. 55.    Section 6206 of the   Business
and Professions Code   is amended to read: 
   6206.  The time for filing a civil action seeking judicial
resolution of a dispute subject to arbitration under this article
shall be tolled from the time an arbitration is initiated in
accordance with the rules adopted by the board of  governors
  trustees  until (a) 30 days after receipt of
notice of the award of the arbitrators, or (b) receipt of notice that
the arbitration is otherwise terminated, whichever comes first.
Arbitration may not be commenced under this article if a civil action
requesting the same relief would be barred by any provision of Title
2 (commencing with Section 312) of Part 2 of the Code of Civil
Procedure; provided that this limitation shall not apply to a request
for arbitration by a client, pursuant to the provisions of
subdivision (b) of Section 6201, following the filing of a civil
action by the attorney.
   SEC. 56.    Section 6222 of the   Business
and Professions Code   is amended to read: 
   6222.  A recipient of funds allocated pursuant to this article
annually shall submit a financial statement to the State Bar,
including an audit of the funds by a certified public accountant or a
fiscal review approved by the State Bar, a report demonstrating the
programs on which they were expended, a report on the recipient's
compliance with the requirements of Section 6217, and progress in
meeting the service expansion requirements of Section 6221.
   The Board of  Governors   Trustees  of
the State Bar shall include a report of receipts of funds under this
article, expenditures for administrative costs, and disbursements of
the funds, on a county-by-county basis, in the annual report of State
Bar receipts and expenditures required pursuant to Section 6145.
   SEC. 57.    Section 6225 of the   Business
and Professions Code   is amended to read: 
   6225.  The Board of  Governors  Trustees
 of the State Bar shall adopt the regulations and procedures
necessary to implement this article and to ensure that the funds
allocated herein are utilized to provide civil legal services to
indigent persons, especially underserved client groups such as but
not limited to the elderly, the disabled, juveniles, and
non-English-speaking persons.
   In adopting the regulations the Board of  Governors
  Trus   tees  shall comply with the
following procedures:
   (a) The board shall publish a preliminary draft of the regulations
and procedures, which shall be distributed, together with notice of
the hearings required by subdivision (b), to commercial banking
institutions, to members of the State Bar, and to potential
recipients of funds.
   (b) The board shall hold at least two public hearings, one in
southern California and one in northern California where affected and
interested parties shall be afforded an opportunity to present oral
and written testimony regarding the proposed regulations and
procedures.
  SEC. 58.    Section 6226 of the   Business
and Professions Code   is amended to read: 
   6226.  The program authorized by this article shall become
operative only upon the adoption of a resolution by the Board of
 Governors   Trustees  of the State Bar
stating that regulations have been adopted pursuant to Section 6225
which conform the program to all applicable tax and banking statutes,
regulations, and rulings.
   SEC. 59.    Section 6231 of the   Business
and Professions Code   is amended to read: 
   6231.  (a) The board shall establish and administer an Attorney
Diversion and Assistance Program, and shall establish a committee to
oversee the operation of the program. The committee shall be
comprised of 12 members who shall be appointed as follows:
   (1) Six members appointed by the Board of  Governors
  Trustees  , including the following:
   (A) Two members who are licensed mental health professionals with
knowledge and expertise in the identification and treatment of
substance abuse and mental illness.
   (B) One member who is a physician with knowledge and expertise in
the identification and treatment of alcoholism and substance abuse.
   (C) One member of the board of directors of a statewide nonprofit
organization established for the purpose of assisting lawyers with
alcohol or substance abuse problems, which has been in continuous
operation for a minimum of five years.
   (D) Two members who are attorneys, at least one of which is in
recovery and has at least five years of continuous sobriety.
   (2) Four members appointed by the Governor, including the
following:
   (A) Two members who are attorneys.
   (B) Two members of the public.
   (3) One member of the public appointed by the Speaker of the
Assembly.
   (4) One member of the public appointed by the Senate Rules
Committee.
   (b) Committee members shall serve terms of four years, and may be
reappointed as many times as desired. The board shall stagger the
terms of the initial members appointed.
   (c) Subject to the approval of the board, the committee may adopt
reasonable rules and regulations as may be necessary or advisable for
the purpose of implementing and operating the program.
   SEC. 60.    Section 6238 of the   Business
and Professions Code   is amended to read: 
   6238.  The committee shall report to the Board of 
Governors  Trustees  and to the Legislature not
later than March 1, 2003, and annually thereafter, on the
implementation and operation of the program. The report shall
include, but is not limited to, information concerning the number of
cases accepted, denied, or terminated with compliance or
noncompliance, and annual expenditures related to the program.
                                           
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