BILL NUMBER: SB 387	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 15, 2015

INTRODUCED BY   Senator Jackson

                        FEBRUARY 24, 2015

   An act to amend  Section 6140 of   Sections
6086.15, 6140, and 6145 of, and to repeal and add Section 6140.16 of,
 the Business and Professions Code, relating to attorneys.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 387, as amended, Jackson.  Attorneys:  
State Bar: attorneys:  annual membership fees.
   Existing law, the State Bar Act, provides for the licensure and
regulation of attorneys by the State Bar of California, a public
corporation. The State Bar is governed by a board of trustees.
Existing law authorizes the board, among other duties, to aid in all
matters pertaining to the improvement of the administration of
justice, including all matters that may advance the professional
interests of the members of the State Bar.  Existing law,
beginning January 1, 2015, until January 1, 2016, requires the board
to charge an annual membership fee for active members of up to $315
for 2015.  
   Existing law requires the State Bar to issue an Annual Discipline
Report describing the performance and condition of the State Bar
discipline system. Existing law requires the report to cover the
previous calendar year and to include accurate and complete
descriptions of, among other things, the existing backlog of cases
within the discipline system and a description of the programs at the
State Bar directed at preventing acts warranting discipline. 

   This bill would revise the content of the information in the
report. The bill would additionally require the backlog of cases to
include other matters opened in the Office of the Chief Trial Counsel
and pending beyond 6 months after receipt, as specified.  
   Existing law, beginning January 1, 2015, until January 1, 2016,
requires the board to charge an annual membership fee for active
members of up to $315 for 2015. 
   This bill would, until January 1, 2017, require the board to
charge that annual membership fee for 2016. 
   Existing law requires the State Bar to review its workload
standards to measure the effectiveness and efficiency of its
disciplinary activities, including, but not limited to, the State Bar
Court and the Client Security Fund, and to provide guidance to the
State Bar and the Legislature in allocating resources, as specified.
 
   This bill would delete that requirement. The bill would, instead,
require the State Bar to develop and implement a specified workforce
plan for its discipline system and conduct a public sector
compensation and benefits study to reassess the numbers and
classifications of staff required to conduct the disciplinary
activities. This bill would require the State Bar to conduct a
thorough analysis of its operating costs and develop a spending plan
to determine a reasonable amount for the annual membership fee, as
specified. The bill would require the State Bar to report to the
Legislature by May 15, 2016.  
   Existing law requires the State Bar to engage the services of an
independent public accounting firm for an audit of its financial
statement for each fiscal year.  
   This bill would require, effective January 1, 2016, the State Bar
to contract with the California State Auditor's Office to conduct an
in-depth financial audit of the State Bar, including an audit of its
financial statement, internal controls, and relevant management
practices, as provided, and would require the office to provide a
copy of the audit to the State Bar, the Chief Justice of the Supreme
Court, and to the Assembly and Senate Committees on Judiciary. 

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 6086.15 of the  
Business and Professions Code   is amended to read: 
   6086.15.  (a) The State Bar shall issue an Annual Discipline
Report by April 30 of each year describing the performance and
condition of the State Bar discipline  system.  
system, including all matters that affect public protection. 
The report shall cover the previous calendar year and shall include
accurate and complete descriptions of all of the following:
   (1) The existing backlog of cases within the discipline system,
 including, but not limited to,   including
 the number of complaints as of December 31 of the preceding
year that were pending beyond six months after receipt without
dismissal, admonition, or the filing of a notice  to show
cause,   of disciplinary charges. In addition to written
complaints received by the State Bar, the backlog of cases shall
include other matters opened in the Office of Chief Trial Counsel and
pending beyond six months after receipt without the filing of
notices of disciplinary charges, or the initiation of other
disciplinary proceedings in the State Bar Court for the purpose of
seeking the imposition of discipline against a member of the State
Bar,  and tables showing time periods beyond six months and the
number in each category and a discussion of the reason for the
extended periods.
   (2) The number of inquiries and complaints and their disposition.
   (3) The  number   number, average pending
times,  and types of matters self-reported by members of the
State Bar pursuant to subdivision (o) of Section 6068 and subdivision
(c) of Section 6086.8.
   (4) The  number   number, average pending
times,  and types of matters reported by other sources pursuant
to Sections  6086.7 and 6086.8.   6086.7,
6086.8, 6091.1, subdivision (b) of Section 6101, and Section 6175.6.

   (5) The speed of complaint handling and dispositions by 
type.   type, measured by the median and the average
processing times. 
   (6) The  number   number, average pending
times,  and types of filed notices  to show cause
  of disciplinary charges  and formal disciplinary
outcomes.
   (7) The  number   number, average pending
times,  and types of  informal discipline outcomes,
  other matters,  including petitions to terminate
 practice,   practice pursuant to Section 6180
or 6190,  interim suspensions and license  restrictions,
criminal conviction monitoring,   restrictions pursuant
to Section 6007, motions to enforce a binding arbitration award,
judgment, or agreement pursuant to subdivision (d) of Section 6203,
motions to revoke probation,  letters of warning, private
reprovals, admonitions, and agreements in lieu of discipline.

   (8) A description of the programs of the State Bar directed at
assuring honesty and competence by attorneys.  
   (9) A description of the programs of the State Bar directed at
preventing acts warranting discipline.  
   (8) The number, average pending times, and outcomes of complaints
involving a State Bar member who has been disbarred or who has
resigned, and is engaged in the unauthorized practice of law,
including referrals to district attorneys, city attorneys, or other
prosecuting authorities, or petitions to terminate practice pursuant
to Section 6180.  
   (9) The number, average pending times, and outcomes of complaints
against nonattorneys engaged in the unauthorized practice of law,
including referrals to district attorneys, city attorneys, or other
prosecuting authorities; petitions to terminate practice pursuant to
Section 6126.3; or referrals to prosecuting authorities or actions by
the State Bar pursuant to Section 6126.7. 
   (10) A description of the condition of the Client Security Fund,
including an accounting of payouts.
   (11) An accounting of the cost of the discipline system by
function.
   (b) The Annual Discipline Report shall include statistical
information presented in a consistent manner for year-to-year
comparison and shall compare the information required under
subdivision (a) to similar information for the previous three years.
 The report shall include the general data and tables
included in the previous reports of the State Bar Discipline Monitor
where feasible. 
   (c) The Annual Discipline Report shall be presented to the Chief
Justice of California, to the Governor, to the Speaker of the
Assembly, to the President pro Tempore of the Senate, and to the
Assembly and Senate Judiciary Committees, for their consideration and
shall be considered a public document.
   SECTION 1.   SEC.   2. 
Section 6140 of the Business and Professions Code, as amended by
Section 3 of Chapter 429 of the Statutes of 2014, is amended to read:

   6140.  (a) The board shall fix the annual membership fee for
active members for 2016 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,
2017, and, as of that date, is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date.
   SEC. 3.    Section 6140.16 of the   Business
and Professions Code   is repealed.  
   6140.16.  The State Bar shall review its workload standards to
measure the effectiveness and efficiency of its disciplinary
activities, including, but not limited to, the State Bar Court and
the Client Security Fund, and provide guidance to the State Bar and
the Legislature in allocating resources. The standards shall be used
to reassess the numbers and classifications of staff required to
conduct the activities of the State Bar's disciplinary activities.
The review shall cover the calendar years of 1998, 1999, and 2000.
The State Bar shall submit a report to the Legislature on its review
of workload standards by June 30, 2001. 
   SEC. 4.    Section 6140.16 is added to the  
Business and Professions Code   , to read:  
   6140.16.  (a) To align its staffing with its mission to protect
the public as provided in Section 6001.1 and to provide guidance to
the State Bar and the Legislature in allocating resources, the State
Bar shall develop and implement a workforce plan for its discipline
system and conduct a public sector compensation and benefits study.
The workforce plan and compensation study shall be used to reassess
the numbers and classifications of staff required to conduct the
activities of the State Bar's disciplinary activities.
   (b) The workforce planning shall include the development and
recommendation of an appropriate backlog goal, an assessment of the
staffing needed to achieve that goal while ensuring that the
discipline process is not compromised, and the creation of policies
and procedures sufficient to provide adequate guidance to the staff
of each unit within the discipline system.
   (c) In addition to the requirements in subdivisions (a) and (b),
the State Bar shall conduct a thorough analysis of its priorities and
necessary operating costs and develop a spending plan, which
includes its fund balances, to determine a reasonable amount for the
annual membership fee that reflects its actual or known costs and
those to implement its workforce plan.
   (d) The State Bar shall submit a report on its workforce plan and
spending plan to the Legislature by May 15, 2016, so that the plans
can be reviewed in conjunction with the bill that would authorize the
imposition of the State Bar's membership fee. The report shall be
submitted in compliance with Section 9795 of the Government Code. The
State Bar shall complete and implement its workforce plan by
December 31, 2016. 
   SEC. 5.    Section 6145 of the   Business
and Professions Code   is amended to read: 
   6145.  (a) The board shall engage the services of an independent
national or regional public accounting firm with at least five years
of experience in governmental auditing for an audit of its financial
statement for each fiscal year. The financial statement shall be
promptly certified under oath by the Treasurer of the State Bar, and
a copy of the audit and financial statement shall be submitted within
120 days of the close of the fiscal year to the board, to the Chief
Justice of the Supreme Court, and to the Assembly and Senate
Committees on Judiciary.
   The audit shall examine the receipts and expenditures of the State
Bar and the State Bar sections to ensure that the receipts of the
sections are being applied, and their expenditures are being made, in
compliance with subdivision (a) of Section 6031.5, and that the
receipts of the sections are applied only to the work of the
sections.
   The audit also shall examine the receipts and expenditures of the
State Bar to ensure that the funds collected on behalf of the
Conference of Delegates of California Bar Associations as the
independent successor entity to the former Conference of Delegates of
the State Bar are conveyed to that entity, that the State Bar has
been paid or reimbursed for the full cost of any administrative and
support services provided to the successor entity, including the
collection of fees or donations on its behalf, and that no mandatory
dues are being used to fund the activities of the successor entity.
   In selecting the accounting firm, the board shall consider the
value of continuity, along with the risk that continued long-term
engagements of an accounting firm may affect the independence of that
firm.
   (b) The board shall contract with the California State Auditor's
Office to conduct a performance audit of the State Bar's operations
from July 1, 2000, to December 31, 2000, inclusive. A copy of the
performance audit shall be submitted by May 1, 2001, to the board, to
the Chief Justice of the Supreme Court, and to the Assembly and
Senate Committees on Judiciary.
   Every two years thereafter, the board shall contract with the
California State Auditor's Office to conduct a performance audit of
the State Bar's operations for the respective fiscal year, commencing
with January 1, 2002, to December 31, 2002, inclusive. A copy of the
performance audit shall be submitted within 120 days of the close of
the fiscal year for which the audit was performed to the board, to
the Chief Justice of the Supreme Court, and to the Assembly and
Senate Committees on Judiciary.
   For the purposes of this subdivision, the California State Auditor'
s Office may contract with a third party to conduct the performance
audit. This subdivision is not intended to reduce the number of
audits the California State Auditor's Office may otherwise be able to
conduct. 
   (c) Effective January 1, 2016, the board shall contract with the
California State Auditor's Office to conduct an in-depth financial
audit of the State Bar, including an audit of its financial
statement, internal controls, and relevant management practices. The
contract shall include reimbursement for the California State Auditor'
s Office for the costs of conducting the audit. The audit shall, at a
minimum, examine the revenues, expenditures, and reserves of the
State Bar, including all fund transfers. The California State Auditor'
s Office shall commence the audit no later than January 1, 2016, and
a copy of the audit shall be submitted by May 15, 2016, to the board,
the Chief Justice of the Supreme Court, and to the Assembly and
Senate Committees on Judiciary. The audit shall be submitted in
compliance with Section 9795 of the Government Code. This subdivision
shall cease to be operative January 1, 2017.