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SB-40 State Bar of California.(2023-2024)

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Date Published: 10/12/2023 02:00 PM
SB40:v92#DOCUMENT

Senate Bill No. 40
CHAPTER 697

An act to amend Sections 6001, 6001.3, 6007, 6021, 6026.7, 6036, 6037, 6054, 6060, 6060.3, 6063, 6065, 6086.1, 6086.15, 6102, 6140, 6140.5, 6141, 6144.1, and 6145 of, to amend, repeal, and add Sections 6140.55 and 6140.9 of, to add Sections 6001.5, 6011, 6012, 6086.20, 6090.8, and 6145.1 to, and to repeal Section 6238 of, the Business and Professions Code, relating to attorneys.

[ Approved by Governor  October 10, 2023. Filed with Secretary of State  October 10, 2023. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 40, Umberg. State Bar of California.
Existing law, the State Bar Act, provides for the licensure and regulation of attorneys by the State Bar of California (State Bar), a public corporation governed by a board of trustees. Under existing law, the officers of the State Bar are a chair, a vice chair, and a secretary. Existing law requires the chair to preside at all meetings of the State Bar and of the board, and requires the vice chair to preside at those meetings in the event of the chair’s absence or inability to act. Existing law authorizes the board to prescribe additional duties of the chair and the vice chair and to prescribe the duties of the secretary. Existing law sets the length of the terms of the chair and the vice chair at one year, and requires them to assume the duties of their office at the conclusion of the annual meeting following their appointment.
This bill instead would extend the length of those terms up to 2 years, and would require them to assume the duties of their office at the conclusion of the September meeting following their appointment.
This bill would require the board to appoint an executive director of the State Bar, who would be responsible for the leadership and management of the State Bar according to the strategic direction set by the board, and to appoint a general counsel of the State Bar to serve as the chief legal advisor to the board on issues not related to attorney discipline, as specified. The bill would set the length of the term for those appointments at 4 years, and would authorize reappointment for additional 4-year terms. The bill would require the State Bar to notify the Senate Committee on Rules and the Senate and Assembly Committees on Judiciary within seven days of the dismissal or hiring of those positions, and would make those appointments subject to confirmation by the Senate, as specified. The bill would limit the application of these provisions to persons appointed on or after January 1, 2024.
Existing law exempts the State Bar from laws restricting, or prescribing a mode of procedure for the exercise of powers of state public bodies or state agencies, as specified.
This bill would subject members of the board of trustees and employees of the State Bar to specified conflicts of interest provisions relating to contracts, which are generally applicable to public officers and employees. By expanding the scope of provisions, the violation of which would be a crime, this bill would impose a state-mandated local program.
Existing law requires a member of the board to disqualify themself from making, participating in the making of, or attempting to influence any decisions of the board or a committee of the board in which the member has a financial interest, as defined, that it is reasonably foreseeable may be affected materially by the decision. Existing law makes an intentional violation of this requirement subject to specified criminal penalties. Existing law also requires a member to disqualify themself when there exists a personal nonfinancial interest that will prevent the member from applying disinterested skill and undivided loyalty to the State Bar in making or participating in the making of decisions.
Under this bill, the scope of the disqualification requirement relating to decisions in which a member has a financial interest, as described, would be expanded to include any decision of the State Bar. By expanding the scope of this requirement, an intentional violation of which is a crime, this bill would impose a state-mandated local program. Under the bill, the scope of the disqualification requirement relating to a member’s personal interests would also be expanded to include any personal interests that may have that effect on the member’s making or participating in the making of decisions.
Under existing law, the State Civil Service Act, certain acts, including convictions of certain crimes, are cause for discipline of a state employee or of a person whose name appears on an employment list. Existing provisions of the Penal Code require the Attorney General to furnish state summary criminal history information to various entities, including an agency, officer, or official of the state if the information, among other things, is required to implement a statute or regulation that expressly refers to specific criminal conduct applicable to that person. Existing law authorizes the agency, officer, or official of the state to perform state and federal criminal history information checks, as provided. If a fingerprint-based criminal history information check is required pursuant to any statute, existing law requires the check to be requested from the Department of Justice and requires the applicable agency or entity to submit to the Department of Justice fingerprint images and related information required by the Department of Justice, as specified. Existing law requires the Department of Justice to provide a state or federal response or a fitness determination, as appropriate, to the agency or entity, as specified.
This bill would revise and recast these provisions, as applicable to the State Bar, within the State Bar Act. In this regard, the bill would require the State Bar to require all employees and prospective employees to submit fingerprints to the Department of Justice and to the Federal Bureau of Investigation to establish identity and to determine whether the individual has a record of criminal conviction in this state or in other states, including through a national criminal history check. The bill would authorize the State Bar to impose this requirement on volunteers, contractors, and subcontractors.
This bill would also revise and recast similar provisions of the State Bar Act relating to applicants for admission or reinstatement and licensees. In this regard, the bill would require an applicant for admission or reinstatement to submit or resubmit fingerprints to the Federal Bureau of Investigation, in addition to the Department of Justice, in order to establish the identity of the applicant and in order to determine whether the applicant or licensee has a record of criminal conviction in this state or in other states, including through a national criminal history check.
Existing law states legislative intent and findings regarding diversity and inclusion in the practice of law. Existing law requires the State Bar to develop and implement a plan to meet specified goals and to prepare and submit a report to the Legislature, by March 15, 2019, and every 2 years thereafter, on the plan and its implementation, as prescribed.
This bill would change the date for the submission of the report to March 30 every 2 years.
Existing law authorizes the State Bar Court to order the involuntary inactive enrollment of an attorney for violation of probation under specified circumstances and requires the State Bar Court to terminate such an enrollment upon expiration of a period equal to the period of stayed suspension in the probation matter, or until the State Bar Court makes an order regarding the recommended actual suspension in the probation matter, whichever occurs first.
This bill would require the State Bar Court to terminate enrollment upon expiration of that described period or until the effective date of a Supreme Court order imposing an actual suspension on account of the probation violation or other disciplinary matter, whichever occurs first.
Existing law provides for the creation of an examining committee within the State Bar with varied responsibilities relating to examinations and other requirements for admission to the practice of law, including, among others, registration of law students, receiving applications for the general bar examination, and collecting fees fixed by the board and paid by applicants to defray the expense of administering existing law relating to admission to practice.
This bill would, with respect to these specified responsibilities, replace the examining committee with the State Bar. The bill would make related conforming changes. The bill would delete obsolete provisions relating to passing the law students’ examination.
Existing law requires an applicant for admission and licensure to practice law to meet certain requirements, including passing a general bar examination. Existing law gives an unsuccessful applicant for admission to practice, after they have taken any examination and within 4 months after results have been declared, the right to inspect their examination papers at the office of the examining committee located nearest to the place at which the applicant took the examination. The applicant also has the right to inspect the grading of the papers.
This bill would delete those inspection provisions and, instead, would require that an applicant for admission to practice who did not pass the California bar examination, for 30 days following the release of examination results, have electronic access to their answers to the written sessions of the bar examination, including the ability to download, save, and print.
Existing law, except as specified, requires hearings and records of original disciplinary proceedings in the State Bar Court to be public, following a notice to show cause.
This bill would, instead, require those proceedings to be public following the filing of a notice of disciplinary charges.
Existing law requires disciplinary investigations of licensees to be confidential until formal charges are filed, and requires investigations of certain related matters to be confidential until the formal proceeding is instituted. Existing law authorizes waiver of that confidentiality requirement by specified entities under specified circumstances, including by the Chief Trial Counsel or the chair of the board when warranted for the protection of the public.
This bill would revise the circumstances under which the confidentiality of those investigations may be waived. In this regard, the bill would additionally authorize the board to vote to waive confidentiality, but only when warranted for protection of the public. The bill would require the board to hold a meeting under these provisions in closed session and to provide notice to a licensee whose confidential information is being considered for disclosure. The bill, for the board’s assessment whether to waive confidentiality, would establish a presumption in favor of maintaining confidentiality and establish specified considerations. The bill would provide for related public announcements by the Chief Trial Counsel or Chair of the State Bar and for prior notice of such announcements to the licensee. The bill would authorize a licensee to file a motion to prevent the State Bar from disclosing information pursuant to the waiver. The bill would require the State Bar Court to rule on the motion within 10 court days of the filing.
This bill would also restrict the Chief Trial Counsel’s and the chair of the board’s authority to waive confidentiality of disciplinary investigation. In this regard, the bill would require the Chief Trial Counsel to exercise the authority with the written concurrence of the chair, and would require a determination that disclosure is needed to prevent an immediate harm to the public, as specified, and that the above-described provisions relating to the board’s authority to waive confidentiality are inadequate for the protection of the public.
This bill, beginning January 1, 2025, would prohibit the Chief Trial Counsel from issuing private reprovals to an attorney accused of misconduct. The bill, by April 1, 2024, would require the board, in consultation with the Chief Trial Counsel, to provide to the Assembly and Senate Judiciary Committees recommendations for codifying a formal disciplinary diversion program for attorneys accused of minor violations of the Rules of Professional Conduct.
Existing law requires the State Bar to issue an Annual Discipline Report by October 31 of each year describing the performance and condition of the State Bar discipline system, including all matters that affect public protection, as prescribed.
This bill would change the deadline for that report to November 30 of each year.
Existing law authorizes the board, with the approval of the Supreme Court, to formulate and enforce rules of professional conduct for all licensees of the State Bar. Under existing law, a person who reports to the State Bar or causes a complaint to be filed with the State Bar that an attorney has engaged in professional misconduct, knowing the report or complaint to be false and malicious, is guilty of a misdemeanor. Existing law authorizes the State Bar to notify the appropriate district attorney or city attorney that a person has filed what the State Bar believes to be a false and malicious report or complaint against an attorney and recommend prosecution of that person.
This bill would require a licensee to inform the State Bar if the licensee knows that another licensee has conspired to engage in or has engaged in seditious conspiracy, treason, rebellion, or insurrection, as specified. The bill would deem to have committed professional misconduct any licensee of the State Bar who makes a complaint to the State Bar pursuant to this reporting provision with the intent to intimidate, harass, or otherwise deter a fellow licensee from engaging in the lawful practice of law. The bill would authorize the board to amend the rules of professional conduct, and require the board to propose those amendments to the Supreme Court for approval, to implement these reporting provisions.
Existing law relating to suspension or disbarment of an attorney requires a court that finds after prescribed proceedings that a crime of which an attorney was convicted or the circumstances of its commission involved moral turpitude, to enter an order disbarring the attorney or suspending them from practice for a limited time, according to the gravity of the crime and the circumstances of the case, or to otherwise dismiss the proceedings.
This bill, in lieu of the alternative of dismissing the proceedings, would require a court to determine if the facts and circumstances surrounding the conviction involve other misconduct warranting discipline, and if so, impose the appropriate discipline.
Existing law, until January 1, 2024, requires the board to charge an annual license fee for active licensees for 2023 of up to $390, or of up to $386 if the State Bar has entered into a contract to sell its San Francisco office building by October 31, 2022. Existing law requires the board to charge an annual license fee for inactive licensees of up to $97.40, or of up to $96.40 if the State Bar has entered into a contract to sell its San Francisco office building by October 31, 2022.
This bill, until January 1, 2025, would, instead, require the board to charge an annual license fee of up to $390 for active licensees for 2024, without the exception relating to the sale of the San Francisco office building described above. The bill, beginning January 1, 2024, would require the board to charge an annual license fee of up to $97.40 for inactive licensees, without the exception relating to the sale of the San Francisco office building described above.
Existing law generally requires the State Bar to hold the net proceeds from the sale of real property, as described, without expenditure or commitment for any purpose until approved by the Legislature by statute. Existing law, as an exception to that provision, authorizes up to 10% of the net proceeds from the sale of the State Bar’s San Francisco office to be used for improvement of the State Bar’s discipline system, as specified.
This bill would revise that exception to instead authorize the State Bar to use the net proceeds from the sale of the State Bar’s San Francisco office to cover employee salaries and to cover operational costs associated with the State Bar’s discipline system and administration of the biannual admissions exam.
Existing law requires the board to establish and administer a Client Security Fund to relieve or mitigate pecuniary losses caused by the dishonest conduct of active licensees, registered foreign legal consultants, and certain other attorneys, arising from or connected with the practice of law. Existing law requires reimbursement of the fund by an attorney whose actions have caused payment from the fund and provides for collection, as specified.
This bill would further provide that the licensee’s obligation to reimburse the fund is imposed as a penalty, payable to and for the benefit of the State Bar, to promote rehabilitation and protect the public. The bill would also provide that the reimbursement provisions are declaratory of existing law.
Existing law authorizes the board to increase the annual license fee for active licensees by up to $40 and the annual license fee for inactive licensees by up to $10 for the purposes of the Client Security Fund and the costs of its administration, as specified.
This bill, until January 1, 2025, would authorize the board to disburse or appropriate any excess funds not needed to support the Client Security Fund, including reserve funds, to the State Bar’s general fund. The bill would require funds that are disbursed or transferred pursuant to that authority to first be used to cover salaries and benefits of employees in bargaining units for which a memorandum of understanding has been agreed to by the State Bar before being used for any other purpose.
Existing law requires the board to establish and administer an Attorney Diversion and Assistance Program, as prescribed, to identify and rehabilitate attorneys with impairment due to substance use or a mental health disorder affecting competency so that attorneys so afflicted may be treated and returned to the practice of law in a manner that will not endanger the public health and safety.
Existing law requires moneys for the support of the program, treatment services for those who cannot afford to pay, and related programs to be paid in whole or part by an annual fee of $10 per active licensee and annual fee of $5 per inactive licensee. Existing law authorizes the board to seek alternative sources for funding the program. Existing law authorizes the transfer of any excess funds not needed to support the Attorney Diversion and Assistance Program, including reserve funds, to the Client Security Fund if there are sufficient funds available to fully support the program.
This bill, until January 1, 2025, would authorize the board to disburse or appropriate any excess funds not needed to support the program, including reserve funds, to the State Bar’s general fund. The bill would require funds that are disbursed or transferred pursuant to that authority to first be used to cover salaries and benefits of employees in bargaining units for which a memorandum of understanding has been agreed to by the State Bar before being used for any other purpose.
Existing law requires the board to establish a committee to oversee the operation of the Attorney Diversion and Assistance Program with membership and responsibilities as prescribed. Existing law requires the committee to report to the board and to the Legislature annually on March 1 on the implementation and operation of the program, as specified.
This bill would delete that committee report requirement.
Existing law requires the board to engage the services of an independent national or regional public accounting firm with specified experience for an audit of its financial statement for each fiscal year. Existing law requires that a copy of the audit and financial statement be submitted within 120 days of the close of the fiscal year to the board, the Chief Justice of the Supreme Court, and the Assembly and Senate Committees on Judiciary.
This bill would require that submission annually on or before May 31.
This bill would require the State Bar to prepare a report on how it would use revenue generated by an increase in the mandatory annual license fees for active and inactive licensees. The bill would require the report to include, among other things, the State Bar’s calculation of the necessary fee increase to maintain its existing operations and service levels and the State Bar’s assessment of all programs and activities that require additional funding, as specified. The bill would also require the State Bar to provide a progress report on the Office of Chief Trial Counsel’s case processing standards, as specified. The bill would require the State Bar to submit these reports no later than April 1, 2024, to the board of trustees, the Chief Justice of the Supreme Court, and the Assembly and Senate Committees on Judiciary.
This bill would make findings and declarations relating to the intent of the Legislature to work on issues relating to client trust accounts.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares the following:
(a) The arrest of and ongoing scandals surrounding disgraced former attorney Tom Girardi exposed that the State Bar of California’s existing tools for overseeing attorney’s client trust accounts are inadequate and expose everyday Californians to the risk of fraud.
(b) Presently, the State Bar of California estimates that over $14,000,000,000 of clients’ funds are currently being held on deposit in more than 59,000 attorney client trust accounts.
(c) In the coming year the Legislature intends to work with all stakeholders, including the State Bar of California, financial institutions, and legal organizations, to craft a structure for regulating client trust accounts that minimizes the risk of financial fraud while protecting the consumer and privacy interests of clients and account holders.

SEC. 2.

 Section 6001 of the Business and Professions Code is amended to read:

6001.
 (a) The State Bar of California is a public corporation. It is hereinafter designated as the State Bar.
(b) The State Bar has perpetual succession and a seal and it may sue and be sued. It may, for the purpose of carrying into effect and promoting its objectives:
(1) Make contracts.
(2) Borrow money, contract debts, issue bonds, notes, and debentures, and secure the payment or performance of its obligations.
(3) Own, hold, use, manage, and deal in and with real and personal property.
(4) Construct, alter, maintain, and repair buildings and other improvements to real property.
(5) Purchase, lease, obtain options upon, acquire by gift, bequest, devise, or otherwise, any real or personal property or any interest therein.
(6) Sell, lease, exchange, convey, transfer, assign, encumber, pledge, or dispose of any of its real or personal property or any interest therein, including without limitation all or any portion of its income or revenues from license fees paid or payable by licensees.
(7) Do all other acts incidental to the foregoing or necessary or expedient for the administration of its affairs and the attainment of its purposes.
(c) Pursuant to those powers enumerated in subdivision (b), it is recognized that the State Bar has authority to raise revenue in addition to that provided for in Section 6140 and other statutory provisions. The State Bar is empowered to raise that additional revenue by any lawful means. However, as of March 31, 2018, the State Bar shall not create any foundations or nonprofit corporations.
(d) The State Bar shall conspicuously publicize to its licensees in the annual fees statement and other appropriate communications, including its internet website and electronic communications, that its licensees have the right to limit the sale or disclosure of licensee information not reasonably related to regulatory purposes. In those communications the State Bar shall note the location of the State Bar’s privacy policy, and shall also note the simple procedure by which a licensee may exercise the licensee’s right to prohibit or restrict, at the licensee’s option, the sale or disclosure of licensee information not reasonably related to regulatory purposes. On or before May 1, 2005, the State Bar shall report to the Assembly and Senate Committees on Judiciary regarding the procedures that it has in place to ensure that licensees can appropriately limit the use of their licensee information not reasonably related to regulatory purposes, and the number of licensees choosing to utilize these procedures.
(e) (1) No law of this state restricting, or prescribing a mode of procedure for the exercise of powers of state public bodies or state agencies, or classes thereof, including, but not by way of limitation, the provisions contained in Division 3 (commencing with Section 11000), Division 4 (commencing with Section 16100), and Part 1 (commencing with Section 18000) and Part 2 (commencing with Section 18500) of Division 5, of Title 2 of the Government Code, shall be applicable to the State Bar, unless the Legislature expressly so declares.
(2) Notwithstanding paragraph (1) or any other law, pursuant to Sections 6026.7 and 6026.11, the State Bar is subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and, commencing April 1, 2016, the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).
(3) Notwithstanding paragraph (1) or any other law, members of the board of trustees of the State Bar and employees of the State Bar shall be subject to the conflicts of interest provisions relating to contracts in Sections 1090 to 1097.2, inclusive, set forth in Article 4 of Chapter 1 of Division 4 of Title 1 of the Government Code, and members of the board of trustees of the State Bar shall be deemed state officers and employees of the State Bar shall be deemed state employees thereunder.

SEC. 3.

 Section 6001.3 of the Business and Professions Code is amended to read:

6001.3.
 (a) It is the intent of the Legislature that the State Bar maintain its commitment to and support of effective policies and activities to enhance access, fairness, and diversity in the legal profession and the elimination of bias in the practice of law.
(b) The Legislature finds and declares the following:
(1) The rich diversity of the people of California requires a justice system that is equally accessible and free of bias and is a core value of the legal profession.
(2) Diversity and inclusion are an integral part of the State Bar’s public protection mission to build, retain, and maintain a diverse legal profession to provide quality and culturally sensitive services to an ever-increasing diverse population.
(3) Diversity increases public trust and confidence and the appearance of fairness in the justice system and therefore increases access to justice.
(4) The State Bar should continue to increase diversity and inclusion in the legal profession.
(c) The State Bar shall develop and implement a plan to meet the goals set forth in this section, which may include, but is not limited to, an assessment of needed revenue. The State Bar shall prepare and submit a report to the Legislature, by March 30, 2019, and every two years thereafter, on the plan and its implementation, including a description of activities undertaken to support the plan, their outcomes, and their effectiveness.

SEC. 4.

 Section 6001.5 is added to the Business and Professions Code, to read:

6001.5.
 (a) The State Bar of California shall require that all employees and prospective employees, and may require volunteers, contractors, and subcontractors, to submit fingerprints to the Department of Justice and to the Federal Bureau of Investigation in order to establish identity and to determine whether the individual has a record of criminal conviction in this state or in other states, including through a national criminal history check.
(b) The State Bar shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice for all employees, prospective employees, volunteers, contractors, and subcontractors, pursuant to subdivision (u) of Section 11105 of the Penal Code. The Department of Justice shall provide a state or federal level response pursuant to subdivision (p) of Section 11105 of the Penal Code.

SEC. 5.

 Section 6007 of the Business and Professions Code is amended to read:

6007.
 (a) When a licensee 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 they have been placed in or returned to inpatient status at the California Rehabilitation Center or its branches, or when they have 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 their mental condition a guardian or conservator, for their estate or person or both, has been appointed, the Board of Trustees or an officer of the State Bar shall enroll the licensee as an inactive licensee.
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 licensee has had the fact of their restoration to capacity judicially determined, upon the licensee’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 licensee’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 licensee 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 their designee shall transmit to the State Bar a certified notice attesting to that fact.
(b) The State Bar Court shall also enroll a licensee of the State Bar as an inactive licensee in each of the following cases:
(1) A licensee asserts a claim of insanity or mental incompetence in any pending action or proceeding, alleging their inability to understand the nature of the action or proceeding or inability to assist counsel in representation of the licensee.
(2) The court makes an order assuming jurisdiction over the licensee’s law practice, pursuant to Section 6180.5 or 6190.34.
(3) After notice and opportunity to be heard before the State Bar Court, the State Bar Court finds that the licensee, because of mental infirmity or illness, or because of the habitual use of intoxicants or drugs, is (i) unable or habitually fails to perform their duties or undertakings competently, or (ii) unable to practice law without substantial threat of harm to the interests of their clients or the public. No proceeding pursuant to this paragraph shall be instituted unless the State Bar Court 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 State Bar Court shall terminate the enrollment upon proof that the facts found as to the licensee’s disability no longer exist and on payment of all fees required.
(c) (1) The State Bar Court may order the involuntary inactive enrollment of an attorney 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) The State Bar Court may order the involuntary inactive enrollment of an attorney if it finds, 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) There is a reasonable probability that the chief trial counsel will prevail on the merits of the underlying disciplinary matter, and that the attorney will be disbarred.
(3) In the case of an enrollment under paragraph (2), the underlying matter shall proceed on an expedited basis.
(4) The State Bar Court 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 license status of the attorney at the time.
(5) The State Bar Court shall order the involuntary inactive enrollment of an attorney who is sentenced to incarceration for 90 days or more as a result of a criminal conviction for at least the period of time in which the attorney is incarcerated.
(6) The State Bar Court shall order attorneys who are placed on inactive enrollment pursuant to this subdivision to comply with Rule 9.20 of the California Rules of Court.
(7) The board shall formulate and adopt rules of procedure to implement this subdivision.
In the case of an enrollment pursuant to this subdivision, the State Bar Court 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 State Bar Court 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 State Bar Court finds that probation has been violated.
(C) The State Bar Court recommends to the Supreme Court that the attorney receive an actual suspension on account of the probation violation or other disciplinary matter.
(2) The State Bar Court 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 effective date of a Supreme Court order imposing an actual suspension on account of the probation violation or other disciplinary matter, whichever occurs first.
(3) If the Supreme 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 State Bar Court shall order the involuntary, inactive enrollment of a licensee 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 LICENSEE 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 State Bar Court shall terminate the involuntary inactive enrollment of a licensee under this subdivision when the licensee’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 licensee under this subdivision, the notice required by subdivision (b) of Section 6092.5 shall be promptly given.
(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 license fees shall accrue against the licensee during the period they are enrolled as an inactive licensee pursuant to this section.
(h) The State Bar Court 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).

SEC. 6.

 Section 6011 is added to the Business and Professions Code, to read:

6011.
 (a) The board shall appoint an executive director of the State Bar, who shall be responsible for the leadership and management of the State Bar according to the strategic direction set by the board.
(b) The board shall appoint a lawyer admitted to practice in California to serve as the executive director of the State Bar. The executive director shall be appointed for a term of four years and may be reappointed for additional four-year terms. The executive director shall serve at the pleasure of the board. The executive director shall not engage in private practice. The State Bar shall notify the Senate Committee on Rules and the Senate and Assembly Committees on Judiciary within seven days of the dismissal or hiring of an executive director.
(c) The appointment of the executive director 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.
(d) This section applies to persons appointed as the executive director on or after January 1, 2024.

SEC. 7.

 Section 6012 is added to the Business and Professions Code, to read:

6012.
 (a) The board shall appoint a general counsel of the State Bar to serve as the chief legal advisor to the board on issues not related to attorney discipline.
(b) The board shall appoint a lawyer admitted to practice in California to serve as general counsel of the State Bar. The general counsel shall be appointed for a term of four years and may be reappointed for additional four-year terms. The general counsel shall serve at the pleasure of the board. The general counsel shall not engage in private practice. The State Bar shall notify the Senate Committee on Rules and the Senate and Assembly Committees on Judiciary within seven days of the dismissal or hiring of a general counsel.
(c) The appointment of the general 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.
(d) This section applies to persons appointed general counsel on or after January 1, 2024.

SEC. 8.

 Section 6021 of the Business and Professions Code is amended to read:

6021.
 (a) The selection of the chair and vice chair of the board shall be made by appointment of the Supreme Court.
(b) The chair and the vice chair shall each be appointed for a term not to exceed two years. The chair and vice chair shall assume the duties of their respective offices at the conclusion of the September meeting following their appointment. The chair and vice chair shall not serve more than two terms, except that a chair or vice chair who is appointed to fill a vacancy for the balance of a term is eligible to serve two full terms in addition to the remainder of the term for which they were appointed.

SEC. 9.

 Section 6026.7 of the Business and Professions Code is amended to read:

6026.7.
 (a) The State Bar is subject to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) and all meetings of the State Bar are subject to the Bagley-Keene Open Meeting Act.
(b) Notwithstanding any other law, the Bagley-Keene Open Meeting Act shall not apply to the Judicial Nominees Evaluation Commission or the State Bar Court.
(c) In addition to the grounds authorized in the Bagley-Keene Open Meeting Act, a closed session may be held for those meetings, or portions thereof, relating to any of the following:
(1) Appeals from decisions of the Board of Legal Specialization refusing to certify or recertify an applicant or suspending or revoking a specialist’s certificate.
(2) The preparation of examination materials, the approval, the grading, or the security of test administration of examinations for certification of a specialist.
(3) The preparation of examination materials, the approval, the grading, or the security of test administration of the California Bar Examination or the First-Year Law Students’ Examination.
(4) Matters related to the Committee of Bar Examiners’ consideration of moral character, including allegations of criminal or professional misconduct, competence, or physical or mental health of an individual, requests by applicants for testing accommodations in connection with an application for admission to practice law, or appeals of the Committee of Bar Examiners’ determinations.
(5) Information about a law school’s operations that constitutes a trade secret as defined in subdivision (d) of Section 3426.1 of the Civil Code.
(6) Matters related to the board’s consideration of waiving confidentiality related to records of disciplinary proceedings under subdivision (c) of Section 6086.1.
(d) Notwithstanding subdivision (e) of Section 11125.7 of the Government Code, the State Bar shall accept public comment in open session on all matters that are agendized for discussion or decision by the board of trustees, whether in an open or a closed session.

SEC. 10.

 Section 6036 of the Business and Professions Code is amended to read:

6036.
 (a) Any member of the board of trustees shall disqualify themself from making, participating in the making of, or attempting to influence any decisions of the State Bar in which the member 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 trustees shall likewise disqualify themself when there exists a personal interest that may 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 that the member’s 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 the member’s participation legally required for the purposes of this section.
(d) A member required to disqualify themself 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 the member 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 trustees.

SEC. 11.

 Section 6037 of the Business and Professions Code is amended to read:

6037.
 No action or decision of the State Bar shall be invalid because of the participation therein by a member or members of the board of trustees 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 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. 12.

 Section 6054 of the Business and Professions Code is amended to read:

6054.
 (a) State and local law enforcement and licensing bodies and departments, officers and employees thereof, and officials and attachés of the courts of this state shall cooperate with and give reasonable assistance and information, including the providing of state summary criminal history information and local summary criminal history information, to the State Bar of California or any authorized representative thereof, in connection with any investigation or proceeding within the jurisdiction of the State Bar of California, regarding the admission to the practice of law or discipline of attorneys or their reinstatement to the practice of law.
(b) The State Bar of California shall require that an applicant for admission or reinstatement to the practice of law in California, or may require a licensee, to submit or resubmit fingerprints to the Department of Justice and to the Federal Bureau of Investigation in order to establish the identity of the applicant and in order to determine whether the applicant or licensee has a record of criminal conviction in this state or in other states, including through a national criminal history check.
(c) (1) Pursuant to subdivision (u) of Section 11105 of the Penal Code, the State Bar shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice for all persons applying for admission to the State Bar of California for all applicants for reinstatement, and for licensees that are required to be fingerprinted under Rule 9.9.5 of the California Rules of Court, as it read on January 1, 2023. The Department of Justice shall provide a state or federal level response pursuant to subdivision (p) of Section 11105 of the Penal Code.
(2) As used in this subdivision, “applicant for reinstatement” means individuals initiating reinstatement proceedings with the State Bar after resignation with or without charges pending and after disbarment.
(d) The State Bar may use the information obtained from the Department of Justice and the Federal Bureau of Investigation as a result of the fingerprinting of an applicant or licensee, and the State Bar’s use of that information shall be limited to the official use of the State Bar in establishing the identity of the applicant and in determining the character and fitness of the applicant for admission or reinstatement, and in discovering prior and subsequent criminal arrests of an applicant, licensee, or applicant for reinstatement. The State Bar shall notify the Department of Justice about individuals who are no longer licensees and applicants who are denied admission to the State Bar within 30 days of any change in status of a licensee or denial of admission. All fingerprint records of applicants admitted or licensees reinstated, or provided by a licensee, shall be retained thereafter by the Department of Justice for the limited purpose of criminal arrest notification to the State Bar.
(e) If required to be fingerprinted pursuant to this section, a licensee of the State Bar who fails to be fingerprinted may be enrolled as an inactive licensee pursuant to rules adopted by the board of trustees.

SEC. 13.

 Section 6060 of the Business and Professions Code is amended to read:

6060.
 To be certified to the Supreme Court for admission and a license to practice law, a person who has not been admitted to practice law in a sister state, United States jurisdiction, possession, territory, or dependency or in a foreign country shall:
(a) Be at least 18 years of age.
(b) (1) Be of good moral character.
(2) (A) In reviewing whether an applicant is of good moral character under this subdivision, the staff of the State Bar or the members of the examining committee shall not review or consider the person’s medical records relating to mental health, except
if the applicant seeks to use the record for either of the following purposes:
(i) To demonstrate that the applicant is of good moral character.
(ii) As a mitigating factor to explain a specific act of misconduct.
(B) The staff of the State Bar and members of the examining committee shall not request or seek to review any medical records relating to mental health, including by obtaining the consent of the applicant to disclose such records, except as requested by an applicant and for a purpose specified in subparagraph (A).
(c) Before beginning the study of law, have done either of the following:
(1) Completed at least two years of college work, which college work shall be at least one-half of the collegiate work acceptable for a bachelor’s degree granted on the basis of a four-year period of study by a college or university approved by the examining committee.
(2) Have attained in apparent intellectual ability the equivalent of at least two years of college work by taking examinations in subject matters and achieving the scores as are prescribed by the examining committee.
(d) Have registered with the State Bar as a law student within 90 days after beginning the study of law. The State Bar, upon a showing of good cause, may permit a later registration.
(e) Have done either of the following:
(1) Had conferred upon them a juris doctor (J.D.) degree or a bachelor of laws (LL.B.) degree by a law school accredited by the examining committee or approved by the American Bar Association.
(2) Studied law diligently and in good faith for at least four years in any of the following manners:
(A) (i) In a law school that is authorized or approved to confer professional degrees and requires classroom attendance of its students for a minimum of 270 hours a year.
(ii) A person who has received their legal education in a foreign state or country where the common law of England does not constitute the basis of jurisprudence shall demonstrate to the satisfaction of the State Bar that the person’s education, experience, and qualifications qualify them to take the examination.
(B) In a law office in this state and under the personal supervision of a licensee of the State Bar of California who is, and for at least the last five years continuously has been, engaged in the active practice of law. It is the duty of the supervising attorney to render any periodic reports to the State Bar as required.
(C) In the chambers and under the personal supervision of a judge of a court of record of this state. It is the duty of the supervising judge to render any periodic reports to the State Bar as required.
(D) By instruction in law from a correspondence law school authorized or approved to confer professional degrees by this state, which requires 864 hours of preparation and study per year for four years.
(E) By any combination of the methods referred to in this paragraph.
(f) Have passed any examination in professional responsibility or legal ethics as the examining committee may prescribe.
(g) Have passed the general bar examination given by the examining committee.
(h) (1) Have passed a law students’ examination administered by the examining committee after completion of their first year of law study. Those who pass the examination within its first three administrations upon becoming eligible to take the examination, shall receive credit for all law studies completed to the time the examination is passed. Those who do not pass the examination within the number of administrations allowed by this subdivision, upon becoming eligible to take the examination, but who subsequently pass the examination, shall receive credit for one year of legal study only.
(2) (A) This requirement does not apply to a student who has satisfactorily completed their first year of law study at a law school accredited by the examining committee and who has completed at least two years of college work prior to matriculating in the accredited law school, nor shall this requirement apply to an applicant who has passed the bar examination of a sister state or of a country in which the common law of England constitutes the basis of jurisprudence.
(B) The law students’ examination shall be administered twice a year at reasonable intervals.

SEC. 14.

 Section 6060.3 of the Business and Professions Code is amended to read:

6060.3.
 (a) An application to take the California bar examination administered in February must be filed with the State Bar not later than the first business day of the preceding November, and an application to take the California bar examination administered in July must be filed with the State Bar not later than the first business day of the preceding April. However, an applicant who was unsuccessful on the examination last administered shall be allowed 10 business days from the date of the general announcement of results of that examination in which to timely file an application to take the next scheduled examination.
(b) The State Bar may accept applications to take the California bar examination filed after the timely deadlines specified in subdivision (a) from applicants if the application is accompanied by the timely application fee and the late filing fee fixed by the board as follows:
(1) An application to take the California bar examination filed between the first and last business days in November for the February examination or between the first and last business days of April for the July examination shall be accepted if it is accompanied by the timely filing fee and a late fee not to exceed fifty dollars ($50).
(2) An application to take the California bar examination filed between the last business day of November and January 1 for the February examination or between the last business day of April and June 1 for the July examination shall be accepted if it is accompanied by the timely filing fee and a late fee not to exceed two hundred fifty dollars ($250).
(3) An application to take the California bar examination filed after January 1 for the February examination and after June 1 for the July examination shall not be accepted.
(c) Application fees for the California bar examination, including fees for late filing, shall be refunded if the applicant does not take the California bar examination because of the death of an immediate family member or the serious illness or disabling injury of the applicant or a member of their immediate family. A deduction may be made from the refund for administrative costs. The board shall adopt regulations for the administration of this subdivision. This subdivision shall not be construed to prohibit the refund of fees in instances other than those specified.

SEC. 15.

 Section 6063 of the Business and Professions Code is amended to read:

6063.
 Applicants for admission to practice shall pay such reasonable fees, fixed by the board, as may be necessary to defray the expense of administering the provisions of this chapter, relating to admission to practice. These fees shall be collected by the State Bar and paid into the treasury of the State Bar.

SEC. 16.

 Section 6065 of the Business and Professions Code is amended to read:

6065.
 Any applicant for admission to practice who did not pass the California bar examination, for 30 days following the release of examination results, shall have electronic access to their answers to the written sessions of the bar examination, which shall include the ability to download, save, and print.

SEC. 17.

 Section 6086.1 of the Business and Professions Code is amended to read:

6086.1.
 (a) (1) Subject to subdivision (b), and except as otherwise provided by law, hearings and records of original disciplinary proceedings in the State Bar Court shall be public, following the filing of a notice of disciplinary charges.
(2) Subject to subdivision (b), and except as otherwise provided by law, hearings and records of the following matters shall be public:
(A) Filings for involuntary inactive enrollment or restriction under subdivision (a), (c), (d), or (e) of Section 6007.
(B) Petitions for reinstatement under Section 6078.
(C) Proceedings for suspension or disbarment under Section 6101 or 6102.
(D) Payment information from the Client Security Fund pursuant to Section 6140.5.
(E) Actions to cease a law practice or assume a law practice under Section 6180 or 6190.
(b) All disciplinary investigations are confidential until the time that formal charges are filed and all investigations of matters identified in paragraph (2) of subdivision (a) are confidential until the formal proceeding identified in paragraph (2) of subdivision (a) is instituted. These investigations shall not be disclosed pursuant to any state law, including, but not limited to, the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). This confidentiality requirement may be waived under any of the following exceptions:
(1) The licensee whose conduct is being investigated or has been investigated consents to a public announcement or disclosure.
(2) (A) The Chief Trial Counsel, with the written concurrence of the chair of the board, may waive confidentiality, but only if both of the following are met:
(i) Disclosure is warranted for protection of the public and the provisions of subdivision (c) are inadequate for the protection of the public.
(ii) It is determined that disclosure is necessary to prevent an immediate harm to the public, including, but not limited to, ongoing fraud, theft, or embezzlement.
(B) Under the circumstances in this paragraph, after private notice to the licensee, the Chief Trial Counsel or chair of the board may issue, if appropriate, one or more public announcements or make information public generally or to specified individuals or entities. Any disclosure made under this paragraph shall include a statement defending the right of the licensee to a fair hearing and shall be limited to doing some or all of the following:
(i) Confirming the fact of an investigation or proceeding.
(ii) Providing a brief factual summary to identify the subject matter of the investigation or proceeding.
(iii) Providing the status of the investigation or proceeding.
(C) If the Chief Trial Counsel or chair of the board for any reason self-disqualifies from acting under this paragraph or is otherwise unavailable to act under this paragraph, the Chief Trial Counsel or chair of the board shall designate someone to act on their behalf.
(3) The Chief Trial Counsel or Chief Trial Counsel’s designee may waive confidentiality pursuant to Section 6044.5.
(c) (1) Notwithstanding the confidentiality of investigations, the board may vote to waive confidentiality, but only when warranted for protection of the public. The board shall hold a meeting under this subdivision in closed session.
(A) The board shall provide a licensee whose confidential information is being considered for disclosure five days’ notice of the fact that the board will be meeting to consider waiving confidentiality and that the licensee may, in advance of the meeting, submit a written statement to the board for the board’s consideration at the meeting. The licensee shall not be permitted to attend the closed session meeting of the board.
(B) When assessing whether to waive confidentiality and to what extent the board shall, at a minimum:
(i) Apply a presumption in favor of maintaining confidentiality.
(ii) Consider the extent to which the allegations or issues involved in the investigation are generally known to the public.
(iii) Consider the gravity of the underlying allegation and potential for continued harm to the public.
(iv) Consider the potential for harm to the reputation of the licensee.
(C) All materials for the board’s consideration pursuant to this subdivision, including the written statement from the licensee, shall be confidential and not disclosed as a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
(2) If the board votes to waive confidentiality pursuant to paragraph (1) and only after complying with the requirements in paragraph (3), the Chief Trial Counsel or chair of the board may issue, if appropriate, one or more public announcements or make information public generally or to specified individuals or entities. Any disclosure under this paragraph shall include a statement defending the right of the licensee to a fair hearing and shall be limited to doing some or all of the following:
(A) Confirming the fact of an investigation or proceeding.
(B) Providing a brief factual summary to identify the subject matter of the investigation or proceeding.
(C) Providing the status of the investigation or proceeding.
(3) Before making any public announcements pursuant to paragraph (2), the State Bar shall provide notice to the licensee via email at the address shown on the licensee’s registration records of the State Bar and via United States mail to the physical address shown on the licensee’s registration records of all of the following:
(A) The fact that the board has voted to waive confidentiality.
(B) A description of the information that may be disclosed to the public.
(C) That the licensee has five business days from the date of the notice to notify the State Bar that they are contesting the release of the information.
(d) (1) A licensee may file a motion with the State Bar Court to prevent the State Bar from disclosing information pursuant to subdivision (c). The motion shall be filed within seven court days from the date of the notice issued to the licensee under paragraph (3) of subdivision (c).
(2) If a licensee files a motion under paragraph (1) the proceeding shall be afforded priority on the State Bar Court calendar, and the court shall issue a ruling within 10 court days from the filing of the motion.
(3) The State Bar shall adopt procedures to enact the provisions of this subdivision via the rulemaking process.
(4) All hearings on motions pursuant to this subdivision shall be confidential.
(e) Notwithstanding the confidentiality of investigations, the State Bar shall disclose to any member of the public so inquiring, any information reasonably available to it pursuant to subdivision (o) of Section 6068, and to Sections 6086.7, 6086.8, and 6101, concerning a licensee of the State Bar that is otherwise a matter of public record, including civil or criminal filings and dispositions.

SEC. 18.

 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 November 30 of each year describing the performance and condition of the State Bar discipline system, including all matters that affect public protection. Except as set forth in subdivision (d), the report shall cover the period from July 1 of the previous calendar year to June 30 of the year in which the report is issued and shall include accurate and complete descriptions of all of the following:
(1) The inventory of cases within the Office of Chief Trial Counsel which were open at the start of the reporting period, were opened during the reporting period, remain pending with the office at the close of the reporting period, or were disposed of during the reporting period by closure, by filing of a stipulation with the State Bar Court, by filing of a notice of disciplinary charges with the State Bar Court, or by transmittal of a criminal conviction to the State Bar Court. The State Bar shall also report on its success in meeting the case processing goals set forth in Section 6094.5, including, but not limited to, tables showing the number and percentage of cases meeting each goal, the number and percentage of those cases not disposed of within the case processing goals, and a high-level explanation of the reasons for failing to meet those case processing goals. The inventory of cases shall not be limited to case types that could result in the filing of a notice of disciplinary charges in the State Bar Court, but shall also include Nonattorney Unauthorized Practice of Law (NA-UPL), Section 6007 matters, moral character matters, resignations with charges pending, and mini-reinstatements.
(2) The number of inquiries and complaints and their disposition.
(3) The number, average pending times, and types of matters self-reported by licensees of the State Bar pursuant to subdivision (o) of Section 6068 and subdivision (c) of Section 6086.8.
(4) The number, average pending times, and types of matters reported by other sources pursuant to Sections 6086.7, 6086.8, 6091.1, subdivisions (b) and (c) of Section 6101, and Section 6175.6.
(5) The speed of complaint handling and dispositions by type, measured by the median and the average processing times.
(6) The number, average pending times, and types of filed notices of disciplinary charges and formal disciplinary outcomes.
(7) The number, average pending times, and types of other matters, including petitions to terminate practice pursuant to Section 6180 or 6190, interim suspensions and license 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) The number, average pending times, and outcomes of complaints involving a State Bar licensee 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.
(12) Compliance with the requirement of Section 6101 to transmit, within 30 days of receipt, the record of any criminal conviction which involves or may involve moral turpitude to the Supreme Court, or to close the matter if transmittal to the Supreme Court is not appropriate.
(b) The Annual Discipline Report shall include statistical information presented in a consistent manner for year-to-year comparison.
(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.
(d) (1) All data relating to the items set forth in subdivision (a) shall also be reported, if available, for the preceding five years. Data from 2020 and prior years shall be reported for the calendar year. Except as specified in paragraph (2), data from 2021 and future years shall be reported based on the state fiscal year.
(2) The Annual Discipline Report due on October 31, 2022, shall include data from both the prior state fiscal year and the prior calendar year.

SEC. 19.

 Section 6086.20 is added to the Business and Professions Code, to read:

6086.20.
 (a) Commencing January 1, 2025, the Chief Trial Counsel shall not issue private reprovals to any attorney accused of misconduct.
(b) On or before April 1, 2024, the board, in consultation with the Chief Trial Counsel, shall provide to the Assembly and Senate Judiciary Committees recommendations for codifying a formal disciplinary diversion program for attorneys accused of minor violations of the Rules of Professional Conduct.

SEC. 20.

 Section 6090.8 is added to the Business and Professions Code, to read:

6090.8.
 (a) (1) A licensee of the State Bar who knows that another licensee has conspired to engage in or has engaged in any of the following shall inform the State Bar:
(A) Seditious conspiracy as prohibited under Section 2384 of Title 18 of the United States Code.
(B) Treason as prohibited under Section 37 of the Penal Code or Section 2381 of Title 18 of the United States Code.
(C) Rebellion or insurrection as prohibited under Section 2383 of Title 18 of the United States Code.
(2) For the purpose of this subdivision, “knows” means actual knowledge of the fact in question. A licensee’s knowledge may be inferred from circumstances.
(b) This section does not require disclosure of information otherwise protected by the attorney-client privilege or information gained by a licensee while participating in the Attorney Diversion and Assistance Program.
(c) A licensee of the State Bar who makes a complaint to the State Bar pursuant to subdivision (a) with the intent to intimidate, harass, or otherwise deter a fellow licensee from engaging in the lawful practice of law shall be deemed to have committed professional misconduct.
(d) The board may amend the Rules of Professional Conduct, and shall propose those amendments to the Supreme Court for approval, to implement this section.

SEC. 21.

 Section 6102 of the Business and Professions Code is amended to read:

6102.
 (a) Upon the receipt of the certified copy of the record of conviction, if it appears therefrom that the crime of which the attorney was convicted involved, or that there is probable cause to believe that it involved, moral turpitude or is a felony under the laws of California, the United States, or any state or territory thereof, the Supreme Court shall suspend the attorney until the time for appeal has elapsed, if no appeal has been taken, or until the judgment of conviction has been affirmed on appeal, or has otherwise become final, and until the further order of the court. Upon its own motion or upon good cause shown, the court may decline to impose, or may set aside, the suspension when it appears to be in the interest of justice to do so, with due regard being given to maintaining the integrity of, and confidence in, the profession.
(b) For the purposes of this section, a crime is a felony under the law of California if it is declared to be so specifically or by subdivision (a) of Section 17 of the Penal Code, unless it is charged as a misdemeanor pursuant to paragraph (4) or (5) of subdivision (b) of Section 17 of the Penal Code, irrespective of whether in a particular case the crime may be considered a misdemeanor as a result of postconviction proceedings, including proceedings resulting in punishment or probation set forth in paragraph (1) or (3) of subdivision (b) of Section 17 of the Penal Code.
(c) After the judgment of conviction of an offense specified in subdivision (a) has become final or, irrespective of any subsequent order under Section 1203.4 of the Penal Code or similar statutory provision, an order granting probation has been made suspending the imposition of sentence, the Supreme Court shall summarily disbar the attorney if the offense is a felony under the laws of California, the United States, or any state or territory thereof, and either: (1) an element of the offense is the specific intent to deceive, defraud, steal, or make or suborn a false statement, or involved moral turpitude, or (2) the facts and circumstances of the offense involved moral turpitude.
(d) For purposes of this section, a conviction under the laws of another state or territory of the United States shall be deemed a felony if both of the following apply:
(1) The judgment or conviction was entered as a felony irrespective of any subsequent order suspending sentence or granting probation and irrespective of whether the crime may be considered a misdemeanor as a result of postconviction proceedings.
(2) The elements of the offense for which the licensee was convicted would constitute a felony under the laws of the State of California at the time the offense was committed.
(e) Except as provided in subdivision (c), if after adequate notice and opportunity to be heard (which hearing shall not be had until the judgment of conviction has become final or, irrespective of any subsequent order under Section 1203.4 of the Penal Code, an order granting probation has been made suspending the imposition of sentence), the court finds that the crime of which the attorney was convicted, or the circumstances of its commission, involved moral turpitude, it shall enter an order disbarring the attorney or suspending them from practice for a limited time, according to the gravity of the crime and the circumstances of the case; otherwise it shall determine if the facts and circumstances surrounding the conviction involve other misconduct warranting discipline, and if so, impose the appropriate discipline. In determining the extent of the discipline to be imposed in a proceeding pursuant to this article, any prior discipline imposed upon the attorney may be considered.
(f) The court may refer the proceedings or any part thereof or issue therein, including the nature or extent of discipline, to the State Bar for hearing, report, and recommendation.
(g) The record of the proceedings resulting in the conviction, including a transcript of the testimony therein, may be received in evidence.
(h) The Supreme Court shall prescribe rules for the practice and procedure in proceedings conducted pursuant to this section and Section 6101.
(i) The other provisions of this article providing a procedure for the disbarment or suspension of an attorney do not apply to proceedings pursuant to this section and Section 6101, unless expressly made applicable.

SEC. 22.

 Section 6140 of the Business and Professions Code is amended to read:

6140.
 (a) The board shall fix the annual license fee for active licensees for 2024 at a sum not exceeding three hundred ninety dollars ($390).
(b) The annual license fee for active licensees 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 by other means, and may charge licensees 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, 2025, and as of that date is repealed.

SEC. 23.

 Section 6140.5 of the Business and Professions Code is amended to read:

6140.5.
 (a) The board shall establish and administer a Client Security Fund to relieve or mitigate pecuniary losses caused by the dishonest conduct of licensees of the State Bar, foreign legal consultants registered with the State Bar, and attorneys registered with the State Bar under the Multijurisdictional Practice Program, arising from or connected with the practice of law. Any payments from the fund shall be discretionary and shall be subject to regulation, conditions, and rules as the board shall prescribe. The board may delegate the administration of the fund to the State Bar Court, or to any board or committee created by the board of trustees.
(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 a licensee, 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 licensee whose actions have caused the payment of funds to an applicant from the Client Security Fund shall owe those funds to the State Bar and reimburse the Client Security Fund for all moneys paid out as a result of the licensee’s conduct with interest, in addition to payment of the assessment for the procedural costs of processing the claim. The State Bar may collect any money paid out by the Client Security Fund pursuant to this subdivision through any means provided by law. The licensee’s obligation to reimburse the Client Security Fund pursuant to this section is imposed as a penalty, payable to and for the benefit of the State Bar of California, a public corporation created pursuant to Article VI of the California Constitution, to promote rehabilitation and protect the public. This subdivision is declaratory of existing law.
(d) For a publicly reproved or suspended licensee, the reimbursed amount by the Client Security Fund, plus applicable interest and costs, shall be paid as a condition of continued practice. This amount shall be added to and become a part of the license fee of a publicly reproved or suspended licensee.
(e) For a licensee who resigns with disciplinary charges pending or a licensee who is resigned or disbarred, the reimbursed amount by the Client Security Fund, plus applicable interest and costs, shall be paid as a condition of applying for reinstatement of the licensee’s license to practice law or return to active license status.
(f) Any assessment against an attorney pursuant to subdivision (c) that is part of an order imposing a public reproval on a licensee or is part of an order imposing discipline or accepting a resignation with a disciplinary matter pending, or any reimbursed amount that is part of a final determination by the Client Security Fund, may also be enforced as a money judgment. This subdivision does not limit the power of the Supreme Court to alter the restitution amount owed pursuant to an order imposing public reproval on a licensee or an order imposing discipline or accepting a resignation with a disciplinary matter pending, or to authorize the State Bar Court to do the same.
(g) To obtain a money judgment pursuant to subdivision (f) that is not part of a court order imposing a public reproval on a licensee or is not part of a court order imposing discipline or accepting a resignation with a disciplinary matter pending, the State Bar shall file a certified copy of the Notice of Payment of the Client Security Fund with the clerk of the superior court of any county. The clerk shall immediately enter judgment in conformity with the Notice of Payment. The judgment shall have the same force and effect as a judgment in a civil action and may be enforced in the same manner as any other judgment.
(h) The defense of laches shall not be raised by the licensee whose actions have caused the payment of funds to an applicant from the Client Security Fund with respect to any payment owed to the State Bar, or with respect to any collections efforts by the State Bar for those payments.
(i) Subdivisions (c), (f), and (h) have, and shall have, retroactive application, as well as prospective application.
(j) As used in this section, “licensee” shall include a foreign legal consultant registered with the State Bar.

SEC. 24.

 Section 6140.55 of the Business and Professions Code is amended to read:

6140.55.
 (a) The board may increase the annual license fees fixed by it pursuant to Section 6140 by an additional amount per active licensee not to exceed forty dollars ($40), and the annual license fees fixed by it pursuant to Section 6141 by an additional amount per inactive licensee not to exceed ten dollars ($10), in any year, the additional amount to be applied only for the purposes of the Client Security Fund and the costs of its administration, including, but not limited to, the costs of processing, determining, defending, or insuring claims against the fund.
(b) (1) Notwithstanding subdivision (a), the board may disburse or appropriate any excess funds not needed to support the Client Security Fund, including reserve funds, to the State Bar’s general fund.
(2) Any funds disbursed or transferred pursuant to paragraph (1) shall first be used to cover salaries and benefits of employees in bargaining units for which a memorandum of understanding has been agreed to by the State Bar before being used for any other purpose.
(c) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.

SEC. 25.

 Section 6140.55 is added to the Business and Professions Code, to read:

6140.55.
 (a) The board may increase the annual license fees fixed by it pursuant to Section 6140 by an additional amount per active licensee not to exceed forty dollars ($40), and the annual license fees fixed by it pursuant to Section 6141 by an additional amount per inactive licensee not to exceed ten dollars ($10), in any year, the additional amount to be applied only for the purposes of the Client Security Fund and the costs of its administration, including, but not limited to, the costs of processing, determining, defending, or insuring claims against the fund.
(b) This section shall be operative on January 1, 2025.

SEC. 26.

 Section 6140.9 of the Business and Professions Code is amended to read:

6140.9.
 (a) Moneys for the support of the program established pursuant to Article 15 (commencing with Section 6230), treatment services for those who cannot afford to pay, and related programs approved by the committee established pursuant to Section 6231 shall be paid in whole or part by a fee of ten dollars ($10) per active licensee per year, and by a fee of five dollars ($5) per inactive licensee per year, except that for 2020 only, the fee shall be one dollar ($1) per active licensee and zero dollars ($0) per inactive licensee. The State Bar is not required to expend any additional funds to either support those programs or to provide treatment services for those who cannot afford to pay.
(b) On and after January 1, 2019, one dollar ($1) of the ten-dollar ($10) fee paid by each active licensee pursuant to subdivision (a) shall be transferred by the State Bar to a statewide nonprofit corporation, established by attorneys that has, for the last 25 years or more, provided peer support to attorneys recovering from alcohol and substance abuse in a confidential and anonymous manner, to fund the support of recovery efforts of the nonprofit corporation. In 2020 only, the statewide nonprofit corporation shall receive the one dollar ($1) fee paid by each active licensee.
(c) Any nonprofit corporation that receives funds pursuant to subdivision (b) shall submit an annual report to the State Bar accounting for the use of the funds. The report shall be submitted to the State Bar no later than March 1, 2020, and no later than March 1 of each year thereafter. The report shall include, but not be limited to, the following:
(1) An accounting of all receipts and expenditures of the funds.
(2) The balance of the funds as of the end of the previous calendar year.
(3) A brief narrative describing the goals of the work supported by the expenditures.
(4) A summary of the number of clients served, the modality of treatment, and any outcome data on the impact of the treatment.
(d) The board may seek alternative sources for funding the program. Any excess funds not needed to support the program, including reserve funds, may be transferred to fund the Client Security Fund established pursuant to Section 6140.5, provided there are sufficient funds available to fully support the program.
(e) (1) Notwithstanding subdivision (d), the board may also disburse or appropriate any excess funds not needed to support the program, including reserve funds, to the State Bar’s general fund.
(2) Any funds disbursed or transferred pursuant to paragraph (1) shall first be used to cover salaries and benefits of employees in bargaining units for which a memorandum of understanding has been agreed to by the State Bar before being used for any other purpose.
(f) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.

SEC. 27.

 Section 6140.9 is added to the Business and Professions Code, to read:

6140.9.
 (a) Moneys for the support of the program established pursuant to Article 15 (commencing with Section 6230), treatment services for those who cannot afford to pay, and related programs approved by the committee established pursuant to Section 6231 shall be paid in whole or part by a fee of ten dollars ($10) per active licensee per year, and by a fee of five dollars ($5) per inactive licensee per year, except that for 2020 only, the fee shall be one dollar ($1) per active licensee and zero dollars ($0) per inactive licensee. The State Bar is not required to expend any additional funds to either support those programs or to provide treatment services for those who cannot afford to pay.
(b) On and after January 1, 2019, one dollar ($1) of the ten-dollar ($10) fee paid by each active licensee pursuant to subdivision (a) shall be transferred by the State Bar to a statewide nonprofit corporation established by attorneys that has, for the last 25 years or more, provided peer support to attorneys recovering from alcohol and substance abuse in a confidential and anonymous manner, to fund the support of recovery efforts of the nonprofit corporation. In 2020 only, the statewide nonprofit corporation shall receive the one-dollar ($1) fee paid by each active licensee.
(c) Any nonprofit corporation that receives funds pursuant to subdivision (b) shall submit an annual report to the State Bar accounting for the use of the funds. The report shall be submitted to the State Bar no later than March 1, 2020, and no later than March 1 of each year thereafter. The report shall include, but not be limited to, the following:
(1) An accounting of all receipts and expenditures of the funds.
(2) The balance of the funds as of the end of the previous calendar year.
(3) A brief narrative describing the goals of the work supported by the expenditures.
(4) A summary of the number of clients served, the modality of treatment, and any outcome data on the impact of the treatment.
(d) The board may seek alternative sources for funding the program. Any excess funds not needed to support the program, including reserve funds, may be transferred to fund the Client Security Fund established pursuant to Section 6140.5, provided there are sufficient funds available to fully support the program.
(e) This section shall become operative on January 1, 2025.

SEC. 28.

 Section 6141 of the Business and Professions Code is amended to read:

6141.
 (a) The board shall fix the annual license fee for inactive licensees at a sum not exceeding ninety-seven dollars and forty cents ($97.40). The annual license fee for inactive licensees is payable on or before the first day of February of each year.
(b) An inactive licensee shall not be required to pay the annual license fee for inactive licensees for any calendar year following the calendar year in which the licensee attains 70 years of age.
(c) This section shall become operative on January 1, 2024.

SEC. 29.

 Section 6144.1 of the Business and Professions Code is amended to read:

6144.1.
 (a) The net proceeds from the sale of real property, after payment of obligations and encumbrances and reasonable costs of acquiring and relocating its facilities, if any, shall be held by the State Bar without expenditure or commitment for any purpose until approved by the Legislature by statute. The net proceeds from the lease of real property, after payment of obligations and encumbrances and reasonable costs of acquiring and relocating its facilities, if any, shall be used by the State Bar for the protection of the public.
(b) Notwithstanding subdivision (a), the net proceeds from the sale of the State Bar’s San Francisco office building, after payment of obligations and encumbrances and the minimally reasonable costs of acquiring and relocating its facilities, if any, may be utilized by the State Bar to cover employee salaries, and to cover operational costs associated with the State Bar’s discipline system and administration of the biannual admissions exam.
(c) All proceeds expended not consistent with subdivision (b) shall be held by the State Bar without expenditure or commitment for any purpose until approved by the Legislature by statute.

SEC. 30.

 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 chief financial officer of the State Bar, and a copy of the audit and financial statement shall be submitted annually, on or before May 31, to the board, to the Chief Justice of the Supreme Court, and to the Assembly and Senate Committees on Judiciary.
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 fees 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) (1) For the 2023 audit required pursuant to subdivision (b), the California State Auditor’s Office shall conduct a performance audit of the State Bar as set forth in this subdivision. The State Bar shall provide technical assistance, data, or information as requested by the California State Auditor. It is the intent of the Legislature that this audit may be reviewed in conjunction with the legislation that authorizes the State Bar’s licensing fee in 2023.
(2) The audit shall evaluate each program or division of the State Bar receiving support from the annual State Bar licensing fees and other fees required of active and inactive licensees.
(3) The audit shall, at minimum, include all of the following for each program or division described by paragraph (2):
(A) An assessment of how much fee revenue, staff, and resources are currently budgeted and subsequently expended to perform existing tasks and responsibilities.
(B) An assessment of whether the State Bar has appropriate program performance measures in place and how these measures are used for budgeting purposes.
(C) An assessment of the usage of any real property sold by the State Bar.
(D) A review of the State Bar’s cost allocation plan used to allocate administrative costs.
(E) A review of any proposals for additional funding or resources requested by the State Bar to determine whether these proposals are necessary to meet the State Bar’s public protection function, as well as the accuracy of identified associated funding needs, after reviewing how existing resources are used.
(F) A calculation of how much fee revenue would be needed from each State Bar active and inactive licensee to fully offset State Bar costs to perform existing tasks and responsibilities and to support additional proposed expenditures determined to be necessary to meet the State Bar’s public protection function. This calculation shall take into account any proposed business process reengineering, reallocations, or efficiencies identified by the California State Auditor.
(4) The audit shall include an evaluation of how the State Bar administers discipline cases that require an outside investigator or prosecutor and how that process can be improved, including the cost-effectiveness and timeliness of such investigations and prosecutions.
(5) The audit required by this subdivision shall be submitted by April 15, 2023, to the board of trustees, the Chief Justice of the Supreme Court, and to the Assembly and Senate Committees on Judiciary.
(6) The State Bar shall use existing resources to reimburse the California State Auditor’s Office for the costs of conducting the audit required by this subdivision.

SEC. 31.

 Section 6145.1 is added to the Business and Professions Code, to immediately follow Section 6145, to read:

6145.1.
 (a) (1) The California State Bar shall prepare a report providing written justification for how it would use revenue generated by an increase in the mandatory annual license fee authorized by Section 6140 for active licensees and Section 6141 for inactive licensees. It is the intent of the Legislature to review this report in conjunction with legislation authorizing the State Bar’s licensing fee in 2025.
(2) This report shall include the State Bar’s calculation of the necessary fee increase to maintain its existing operations and service levels and provide clear justification for any differences from the amounts calculated by the California State Auditor in its April 2023 audit.
(3) This report shall also include the State Bar’s assessment of all programs and activities that require additional support from the annual license fee. For each program and activity, this assessment shall include all of the following:
(A) A detailed description of the program and activity.
(B) The projected, budgeted, and actual expenditures in 2023, 2024, and 2025 assuming no increase in the annual fee.
(C) The estimated deficit and the reason for the deficit.
(D) What aspects of the programs or activities would not be achievable if a fee increase was not provided.
(E) Complete, actual data for 2023.
(4) This report shall also include information on how the State Bar proposes to use any potential additional funding resulting from any potential increase in the mandatory annual license fee. Specifically, for every twenty-five-dollar ($25) incremental increase in the mandatory annual license fee for active licensees and corresponding six dollars and twenty-five-cent ($6.25) incremental increase in the mandatory annual license fee for inactive licenses the State Bar shall report, at a minimum, the following:
(A) The total amount of revenue estimated to be generated from the incremental increase.
(B) A description of which State Bar programs and activities would be funded by the revenue generated from the incremental increase and any recent major operational or procedural changes implemented in those programs and activities.
(C) In cases where a program or activity identified pursuant to paragraph (3) is proposed to receive funding, detailed justification for the amount of funding proposed to be used to support the program or activity, how that amount was calculated along with any key assumptions made, what outcomes are expected to be achieved, and what, if any, deficit would remain for the activity or program along with what aspects of the activity or program would be unachievable due to the deficit. This justification shall also clearly specify the extent to which the funding is or will be used to complete business process reengineering, improve processes, or improve efficiencies.
(5) The information provided pursuant to paragraph (4) shall reflect the State Bar’s actual planned use of the funding for each potential incremental increase and the State Bar shall not assume that it may redirect the funding for other purposes should an increase in the annual fee be approved.
(6) This report shall be submitted no later than April 1, 2024, to the board of trustees, the Chief Justice of the Supreme Court, and the Assembly and Senate Committees on Judiciary.
(b) In addition to the report required by subdivision (a), the State Bar shall provide a progress report on the Office of Chief Trial Counsel’s case processing standards, which shall be submitted pursuant to paragraph (6) of subdivision (a). This progress report shall include, but is not limited to, the following:
(1) The status of changes made to case disciplinary processes and an assessment of how those changes are impacting case processing times.
(2) A discussion of how concerns related to operational efficiency raised by the California State Auditor and the Legislative Analyst’s Office have been addressed or are planned to be addressed.
(3) An assessment of how recent case processing times compare to the State Bar’s proposed average case processing standards. This assessment shall also include data on the timeliness of the completion of the hearing stage in order to provide a comprehensive picture of case processing times.
(4) An assessment of how recent case processing times compare to the State Bar’s proposed backlog standards, as well as the proposed standards calculated using pending rather than closed workload as discussed by the Legislative Analyst’s January 2023 report.

SEC. 32.

 Section 6238 of the Business and Professions Code is repealed.

SEC. 33.

 The Legislature finds and declares that Sections 9 and 17 of this act, which amend Sections 6026.7 and 6086.1 of the Business and Professions Code, impose a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
Due to the confidential nature of the information that the Board of Trustees will be considering, it is necessary that their consideration of the information be done in closed session.

SEC. 34.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.