AMENDED IN SENATE JUNE 25, 2026

AMENDED IN SENATE JUNE 11, 2026

AMENDED IN ASSEMBLY APRIL 16, 2026

AMENDED IN ASSEMBLY APRIL 8, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

95

Introduced by Committee on Judiciary (Assembly Members Kalra (Chair), Bauer-Kahan, Bryan, Connolly, Harabedian, Pacheco, Papan, Stefani, and Zbur)

March 11, 2026

An act to amend Sections 6007, 6026.7, 6046.7, 6049, 6070, 6091.3, 6091.4, 6092.5, 6101, 6102, 6140, 6140.5, and 6141 of, to amend the heading of Article 3.5 (commencing with Section 6055) of Chapter 4 of Division 3 of, to amend and repeal Sections 6031.5 and 6140.02 of, to amend, repeal, and add Section 6141.3 of, to add Section 6008.8 to, to repeal Section 6142 of, and to repeal and add Sections 6056 and 6141.3 Section 6056 of, the Business and Professions Code, relating to attorneys.

Vote: majority   Appropriation: no   Fiscal committee: no   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law, the State Bar Act, provides for the licensure and regulation of attorneys by the State Bar of California, a public corporation governed by a board of trustees. Existing law requires the State Bar Court to order the involuntary inactive enrollment of a licensee whose default has been entered pursuant to the State Bar Rules of Procedure, as specified, if a notice containing certain language is duly served on the licensee.

This bill would include findings and declarations by the Legislature relating to the history, governance, and responsibilities of the State Bar, and would specify that these provisions, and other provisions relating to the State Bar, are declaratory of existing law. The bill would delete the requirement that the notice contain certain language and would instead require the notice to contain specified provisions in clear, easily understandable language, in at least 12-point font, and in capital letters. The bill would preclude specified provisions of law relating to the State Bar from being construed to affect or alter the status of the State Bar, as described.

Existing law subjects the State Bar and its meetings to the requirements of the Bagley-Keene Open Meeting Act and provides that the State Bar may hold closed session meetings for various purposes, including, among other things, matters relating to the Committee of Bar Examiners’ consideration of moral character.

This bill would expand the permissible grounds for a closed session meeting to include include, among other things, the Committee of Bar Examiners’ consideration of any matter that would disclose certain confidential information relating to an individual applicant, a disciplinary matter, or an individual licensee, as specified, or upon request by an applicant. information.

Existing law requires the State Bar to collect, in conjunction with collection of its annual license fees, membership fees for the California Lawyers Association (CLA) if the Board of Trustees of the State Bar makes specified determinations.

This bill would, until January 1, 2030, permit the State Bar to continue to collect fees for the CLA, provided that the Board of Trustees of the State Bar makes those specified determinations. The bill would also permit the State Bar Bar, until January 1, 2030, to assist the CLA in transitioning to collect its own membership fees, provided that the CLA reimburses the State Bar for the costs of this assistance.

Existing law permits, in the conduct of investigations relating to attorneys, the chief trial counsel or their designee to compel, by subpoena, the attendance of witnesses and the production of books, papers, and documents pertaining to the investigation.

This bill would permit the chief trial counsel or their designee to also compel, by subpoena, the attorney who is the subject of the investigation.

Existing law requires the State Bar to assist the Sections of the State Bar, as specified, to incorporate as a private, nonprofit corporation, known as the CLA, a voluntary association that is not part of the State Bar. Existing law authorizes the State Bar to assist the CLA in gaining appointment to the American Bar Association House of Delegates. Existing law requires the State Bar and the CLA to enter into a memorandum of understanding regarding, among other things, providing low- and no-cost mandatory continuing legal education (MCLE), expertise and information to the State Bar, and educational programs and materials to licensees and the public. Existing law requires the CLA to provide low-cost programs and materials by which licensees may satisfy their MCLE requirements.

This bill would delete those provisions. The bill would instead authorize the State Bar to assist a voluntary association of attorneys in gaining appointment to the American Bar Association Houses of Delegates, and would authorize the State Bar to enter into a memorandum of understanding with a voluntary association of attorneys to provide low- and no-cost mandatory continuing legal education, expertise, and information to the State Bar, and educational programs and materials to licensees and the public. The bill would require a voluntary association of attorneys to provide low-costs programs and materials by which licensees may satisfy their MCLE requirements. The bill would make conforming changes.

Existing law authorizes the State Bar to establish an examining committee, also known as the Committee of Bar Examiners, and makes the Committee of Bar Examiners responsible for the approval, regulation, and oversight of degree-granting unaccredited law schools that award the juris doctor (J.D.) professional degree in California, including law schools California and that are not approved by the American Bar Association or the Committee of Bar Examiners.

This bill would prohibit any person or entity from referring to itself as a law school, or any similar name, in any firm name, trade name, fictitious business name, or on any advertisement, letterhead, business card, or sign, unless the person or entity awards the juris doctorate professional degree in California and is either approved by the American Bar Association, accredited by the Committee of Bar Examiners, or registered with the Committee on Bar Examiners.

Existing law requires financial institutions, on or before each March 1, to electronically provide to the State Bar certain information for every client trust account actually known to the financial institution associated with an attorney’s State Bar license number.

This bill would expand those requirements to also include every interest on lawyer’s trust account (IOLTA).

Existing law requires licensees of the State Bar, limited liability partnerships, or law corporations registered with the State Bar to provide to the State Bar all requested information pursuant to a request made as part of a compliance review or investigative audit. Existing law makes that information exempt from disclosure under the California Public Records Act.

This bill would also make those provisions applicable to a request by the State Bar made as part of a disciplinary investigation.

Existing law provides for an attorney to be disbarred or suspended for committing either a felony or misdemeanor involving moral turpitude. Existing law also requires the Office of the Chief Trial Counsel to, within a specified time, transmit to the California Supreme Court the record of any conviction of an attorney involving moral turpitude.

This bill would expand the grounds for disbarment or suspension to include the conviction of any felony or of a misdemeanor involving moral turpitude. felony. The bill would also make conforming changes, including to the responsibilities of the Office of Chief Trial Counsel to transmit evidence of the relevant convictions to the California Supreme Court.

Existing law requires the California Supreme Court, upon receipt of a certified copy of a record of certain convictions, to suspend an attorney until the time of appeal has elapsed, or the judgment of conviction has been affirmed on appeal, the judgment or has otherwise become final, or the court further orders. and until the further order of the court.

This bill would require the California Supreme Court, upon receipt of a certified copy of a record of certain convictions, as specified, to suspend an attorney until the conviction has become final or until the court otherwise orders. and until the further order of the court. The bill would also expand the scope of convictions under the laws of another state or territory that would constitute a felony for the purposes of these provisions.

Existing law, until January 1, 2027, requires the board to charge an annual license fee of up to $400 for active licensees for 2026. Existing law, until January 1, 2027, and except as specified, requires the board to charge an annual license fee of up to $100 for inactive licensees.

This bill would require the board to charge an annual license fee of up to $400 for active licensees for 2027. The bill would require the board to charge an annual license fee of up to $100 for inactive licensees for 2027. licensees. The bill would also require the State Bar to permit attorneys to file for inactive status through December 31 of the calendar year prior to becoming inactive. The bill would repeal these provisions on January 1, 2028.

Existing law requires the board to administer a Client Security Fund to relieve or mitigate pecuniary losses caused by the dishonest conduct of licensees of the State Bar, among others. Existing law requires any licensee whose actions have caused the payment of funds to an applicant from the Client Security Fund to reimburse the Client Security Fund for all moneys paid out as a result of the licensee’s conduct, plus interest and costs, as specified. Existing law requires the reimbursed amount, plus applicable interest and costs, to be added to the license fee of a publicly reproved or suspended licensee.

This bill would remove the limitation that those provisions are applicable only to publicly reproved or suspended licensees and would thereby require the reimbursed amount, plus applicable interest and costs, to be added to the license fee of any licensee required to reimburse the Client Security Fund. The bill would make a failure to pay the Client Security Fund as part of the license fee a basis for suspension from the practice of law and would make payment to the Client Security Fund a condition of transfer of a licensee’s status to an active status from a suspension, involuntary inactive enrollment, or voluntary inactive status.

Existing law requires the CLA to adopt a dues schedule by October 1 of each year and to provide that schedule to the State Bar. Bar by October 1 of each year. Existing law specifies that membership in the CLA is voluntary and that the CLA is not part of the State Bar, however, existing law requires the State Bar to collect, in conjunction with its annual license fees, the membership fees for the CLA.

This bill would repeal those provisions on January 1, 2030.

Existing law requires the State Bar to provide offers of discounts and other benefits to licensees, including insurance and noninsurance affinity programs. Existing law authorizes the State Bar, if approved by the board, board and other specified entities, to transfer administration of those programs to Cal Bar Affinity, and specifies the manner of distribution of the revenue received from insurance and noninsurance affinity programs.

This bill bill, commencing January 1, 2028, would instead authorize the State Bar, if approved by the board, to transfer financial administration of the programs offering discounts and other benefits to licensees to CalBar Connect, would require CalBar Connect to distribute revenue received from insurance and noninsurance affinity programs to California ChangeLawyers, and would require California ChangeLawyers to distribute a certain amount of that revenue in accordance with specified requirements.

Existing law, upon the payment of the annual license fee, including any required costs and penalties, as specified, requires the board to direct the issuance of a certificate evidencing the payment to each licensee.

This bill would delete those provisions relating to the issuance of a certificate evidencing the required payment.

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 people of the State of California do enact as follows:

SECTION 1.

The Legislature finds and declares the following:

(a) In 1927, the Legislature created the State Bar of California through the passage of the State Bar Act, and, in 1966, the people of the State of California approved a constitutional amendment placing the State Bar within the judicial article of the State Constitution.

(b) The State Bar is a state regulatory agency within the judicial branch of California government.

(c) Throughout its existence, the State Bar has served as the administrative arm of the California Supreme Court in the exercise of the court’s inherent and plenary authority over the admission, regulation, and discipline of attorneys in this state. The Supreme Court has authority and control over admission, regulation, and discipline of attorneys, and the power to review and direct any step in the State Bar’s work in these areas. In carrying out its responsibilities as the administrative arm of the Supreme Court, the State Bar performs functions essential for the Supreme Court to exercise its admissions, regulation, discipline authority, such as conducting the California Bar Examination, investigating moral character, developing proposed rules of professional conduct, investigating complaints about attorney misconduct, and hearing attorney misconduct matters and issuing recommendations on discipline based on the evidentiary record.

(d) The Legislature has shared authority over the regulation of the practice of law, including attorney admissions and discipline, subject to the Supreme Court’s inherent and primary authority.

(e) Pursuant to Senate Bill 36 (enacted as Chapter 422 of the Statutes of 2017), effective January 1, 2018, the Legislature reformed the governance structure of the State Bar to clearly establish the State Bar as a regulatory entity of the judicial branch and to put a renewed focus on its regulatory and public protection obligations as a state regulatory agency. Changes made to the regulatory structure of the State Bar at the time included, but are not limited to:

(1) Eliminating elected members of the board of trustees and establishing the Supreme Court of California, the Governor, the Senate Rules Committee, and the Speaker of the Assembly as the sole authorized appointing authorities.

(2) Eliminating the elected positions of board president and vice president and replacing those positions with a board chair and vice chair appointed by the judicial branch appointing authority.

(3) Eliminating the State Bar’s trade associational functions.

(f) The provisions of this act conferring public corporation attributes upon the State Bar create the appropriate operational structure for a judicial branch entity that is overseen by a Board of Trustees consisting of state public officials appointed by the three branches of state government. State Bar funds are state funds held in the judicial branch of government, and State Bar revenues are generated pursuant to authorization in the State Bar Act or the California Rules of Court, including license fees for attorneys authorized by the Legislature and with restrictions on their use, funds for legal aid grants appropriated by the Legislature or transmitted by banks offering IOLTA accounts pursuant to statute, and admissions and other fees authorized by the Legislature or the Supreme Court through the California Rules of Court.

(g) The Legislature recognizes that, as a constitutional entity of the judicial branch subject to the authority of the California Supreme Court, the State Bar requires governance and procedural frameworks appropriate to that status. (See subdivision (e) of Section 6001 of the Business and Professions Code.) Such a distinction is not intended to place the State Bar outside of, or make it independent of, state government. Where it has deemed it appropriate, the Legislature has expressly applied laws generally applicable to other state agencies to the State Bar, including laws relating to public records, open meetings, and conflicts of interest.

(h) It is the intent of the Legislature that no provision of this act shall be construed to establish the State Bar as an entity independent of the State of California. These findings and declarations are declaratory of existing law.

SEC. 2.

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 informs the licensee at or near the beginning of the notice, in clear, easily understandable language in at least 12-point font and in capital letters, that the failure to file a timely answer or failure to appear at trial will result in all of the following:

(i) The State Bar Court will enter the licensee in default.

(ii) The licensee’s status will be changed to inactive.

(iii) The licensee will be prohibited from practicing law.

(iv) The licensee will be prohibited from participating further in the proceeding unless the default is set aside.

(v) The State Bar Court will enter an order recommending disbarment and may recommend the imposition of sanctions.

(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. 3.

Section 6008.8 is added to the Business and Professions Code, to read:

6008.8.

(a) Nothing in this chapter shall be construed to affect or alter the status of the State Bar of California as a state agency within the judicial branch that serves as the administrative arm of the Supreme Court of California for matters relating to attorney admission, attorney discipline, and the regulation of the practice of law.

(b) This section does not constitute a change in, but is declaratory of, existing law.

SEC. 4.

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 any matter that would disclose individual applicant information that is confidential pursuant to Section 6060.25 of the Business and Professions Code, including, but not limited to, matters involving consideration of an applicant’s 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 requests by applicants for review of staff determinations to the Committee of Bar Examiners.

(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.

(7) Matters related to the Regulation and Discipline Committee’s or the board’s discussion or consideration of any disciplinary matter that is confidential under Section 6086.1.

(8) Matters that the board has found would constitute an unwarranted invasion of the privacy of an individual licensee if discussed in an open meeting.

(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.

(e) The Committee of Bar Examiners shall not be considered an advisory board, advisory commission, advisory committee, advisory subcommittee, or similar multimember advisory body, as described in Section 11123.5 of the Government Code, for purposes of the Bagley-Keene Open Meeting Act.

SEC. 5.

Section 6031.5 of the Business and Professions Code is amended to read:

6031.5.

(a) The California Lawyers Association and its activities shall not be funded with mandatory fees collected pursuant to subdivision (a) of Section 6140.

The State Bar may provide the California Lawyers Association with administrative and support services, provided the California Lawyers Association agrees, before such services are provided, to the nature, scope, and cost of those services. The State Bar shall be reimbursed for the full cost of those services out of funds collected pursuant to subdivision (b) or funds provided by the California Lawyers Association. The financial audit specified in Section 6145 shall confirm that the amount assessed by the State Bar for providing the services reimburses the costs of providing them, and shall verify that mandatory fees are not used to fund the California Lawyers Association. The State Bar and the California Lawyers Association may also contract for other services provided by the State Bar or by the California Lawyers Association.

(b) Notwithstanding any other law, the State Bar shall collect fees for the California Lawyers Association provided the Board of Trustees of the State Bar determines that the California Lawyers Association continues to serve a public purpose by providing the services described in subdivision (f) of Section 6056. The California Lawyers Association shall pay for the actual costs of the collection. The State Bar may assist the California Lawyers Association in transitioning to collecting its own membership fees so long as the California Lawyers Association reimburses the State Bar for the cost of all of this assistance.

(c) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.

SEC. 6.

Section 6046.7 of the Business and Professions Code is amended to read:

6046.7.

(a) Notwithstanding any other law, the examining committee shall be responsible for the approval, regulation, and oversight of degree-granting unaccredited law schools that meet both of the following:

(1) Award the juris doctor (J.D.) professional degree in California.

(2) Are not approved by the American Bar Association or the Committee of Bar Examiners.

(b) No person or entity may refer to itself as a law school, or any similar name, in any firm name, trade name, fictitious business name, or on any advertisement, letterhead, business card, or sign, unless the person or entity does both of the following:

(1) Awards the juris doctorate professional degree in California.

(2) Is either approved by the American Bar Association, accredited by the Committee of Bar Examiners, or registered with the Committee of Bar Examiners.

(c) The Committee of Bar Examiners shall assess and collect a fee from unaccredited law schools in an amount sufficient to fund the regulatory and oversight responsibilities imposed by this section. Nothing in this subdivision precludes the board of trustees from using other funds or fees collected by the State Bar or by the examining committee to supplement the funding of the regulatory and oversight responsibilities imposed by this section with other funds, if that supplemental funding is deemed necessary and appropriate to mitigate some of the additional costs of the regulation and oversight to facilitate the provision of a legal education at an affordable cost.

SEC. 7.

Section 6049 of the Business and Professions Code is amended to read:

6049.

(a) Upon the trial and hearing of all matters, the State Bar Court may do all of the following:

(1) Take and hear evidence pertaining to the proceeding.

(2) Administer oaths and affirmations.

(3) Compel, by subpoena, the attendance of witnesses and the production of books, papers, and documents pertaining to the proceeding.

(b) In the conduct of investigations, the chief trial counsel or his or her designee, may compel, by subpoena, the attendance of witnesses, including the attorney who is the subject of the investigation, and the production of books, papers, and documents pertaining to the investigation.

(c) In the conduct of all formal proceedings, each party may compel, by subpoena, the attendance of witnesses and the production of books, papers, and documents pertaining to the proceeding.

SEC. 8.

The heading of Article 3.5 (commencing with Section 6055) of Chapter 4 of Division 3 of the Business and Professions Code is amended to read:

Article 3.5. Voluntary Association of Attorneys

SEC. 9.

Section 6056 of the Business and Professions Code is repealed.

SEC. 10.

Section 6056 is added to the Business and Professions Code, to read:

6056.

(a) The State Bar may assist a voluntary association of attorneys in gaining appointment to the American Bar Association (ABA) House of Delegates, consistent with the conduct of the former Sections of the State Bar and subject to the consent of the ABA.

(b) The State Bar may enter into a memorandum of understanding with a voluntary association of attorneys to provide any of the following:

(1) Low- and no-cost mandatory continuing legal education.

(2) Expertise and information to the State Bar, as requested.

(3) Educational programs and materials to the licensees of the State Bar and the public.

SEC. 11.

Section 6070 of the Business and Professions Code is amended to read:

6070.

(a) The State Bar shall request the California Supreme Court to adopt a rule of court authorizing the State Bar to establish and administer a mandatory continuing legal education (MCLE) program. The rule that the State Bar requests the Supreme Court to adopt shall require that, within designated 36-month periods, all active licensees of the State Bar shall complete at least 25 hours of legal education activities approved by the State Bar or offered by a State Bar-approved provider, with four of those hours in legal ethics. The legal education activities shall focus on California law and practice and federal law as relevant to its practice in California or tribal law. A licensee of the State Bar who fails to satisfy the MCLE requirements of the program authorized by the Supreme Court rule shall be enrolled as an inactive licensee pursuant to rules adopted by the Board of Trustees of the State Bar.

(b) For purposes of this section, statewide associations of public agencies and incorporated, nonprofit professional associations of attorneys shall be certified as State Bar approved providers upon completion of an appropriate application process to be established by the State Bar. The certification may be revoked only by majority vote of the board, after notice and hearing, and for good cause shown. Programs provided by the California District Attorneys Association or the California Public Defenders Association, or both, including, but not limited to, programs provided pursuant to Title 1.5 (commencing with Section 11500) of Part 4 of the Penal Code, are deemed to be legal education activities approved by the State Bar or offered by a State Bar-approved provider.

(c) Notwithstanding the provisions of subdivision (a), officers and elected officials of the State of California, and full-time professors at law schools accredited by the State Bar of California, the American Bar Association, or both, shall be exempt from the provisions of this section. Full-time employees of the State of California, acting within the scope of their employment, shall be exempt from the provisions of this section. Nothing in this section shall prohibit the State of California, or any political subdivision thereof, from establishing or maintaining its own continuing education requirements for its employees.

(d) A voluntary association of attorneys shall provide and encourage the development of low-cost programs and materials by which licensees of the State Bar may satisfy their continuing education requirements. Special emphasis shall be placed upon the use of internet capabilities and computer technology in the development and provision of no-cost and low-cost programs and materials. Towards this purpose, a voluntary association of attorneys that develops low-cost programs and materials for licensees of the State Bar to satisfy their continuing education requirements shall ensure that any licensee possessing or having access to the internet or specified generally available computer technology shall be capable of satisfying the full self-study portion of their MCLE requirement at a cost of twenty dollars ($20) per hour or less.

SEC. 12.

Section 6091.3 of the Business and Professions Code is amended to read:

6091.3.

(a) Commencing January 1, 2026, upon the establishment of a new client trust account associated with an attorney licensed to practice in California, the financial institution shall collect and retain within its books and records an attorney’s State Bar license number where the number is made available to the financial institution by the attorney associated with the client trust account in the format described in subdivision (d).

(b) On or before March 1, 2026, and annually on or before March 1 thereafter, a financial institution shall electronically provide via secure file transport protocol or another format mutually acceptable to the financial institution and the State Bar, the following for every IOLTA account:

(1) The name of the financial institution in which the client trust account is held.

(2) The name of the attorney or law firm associated with the client trust account.

(3) The account number of the client trust account.

(4) The attorney’s State Bar license number associated with the trust account, if provided to the financial institution.

(5) The trust account balance as of December 31 of the previous year. If December 31 is a holiday, the account balance as of the preceding business day may be reported.

(c) On or before March 1, 2026, and annually on or before March 1 thereafter, a financial institution shall electronically provide via secure file transport protocol or another format mutually acceptable to the financial institution and the State Bar, the following for every client trust that is not an IOLTA account which is actually known to the financial institution associated with an attorney’s State Bar license number:

(1) The name of the financial institution in which the client trust account is held.

(2) The name of the attorney or law firm associated with the client trust account.

(3) The account number of the client trust account.

(4) The attorney’s State Bar license number associated with the trust account.

(5) The trust account balance as of December 31 of the previous year. If December 31 is a holiday, the account balance as of the preceding business day may be reported.

(d) On or before January 1, 2026, the State Bar shall create a standard form for use by an attorney licensed to practice in California wherein the attorney shall submit their State Bar license number and the name and account number of all applicable associated client trust accounts to a financial institution pursuant to subdivision (e).

(e) On or before July 1, 2026, the State Bar shall require an attorney licensed to practice in California to furnish their State Bar license number to the financial institution where the attorney associated with the client trust account maintains the account. If the client trust account is maintained by a law firm, the law firm shall designate one of its members to provide the member’s State Bar license number. The attorney licensed to practice in California shall submit the completed form to satisfy the requirements in this subdivision to the financial institution pursuant to Section 684.115 of the Code of Civil Procedure.

(f) A financial institution receiving a completed form containing a State Bar license number pursuant to subdivision (e) shall, in reliance on the license number, incorporate into its books and records the attorney’s State Bar license number for known client trust accounts where the license number was previously not collected.

(g) This section is intended to supplement, and not eliminate nor replace, the remittance, reporting, and other obligations of a financial institution under Section 6212, which shall remain in full force and effect. This section does not affect the obligations of an attorney or a law firm relating to maintaining an interest-bearing IOLTA account under Section 6211, which shall remain in full force and effect.

(h) No action shall lie against a financial institution or any of its officers, directors, or employees relating to their discharge of, or their alleged failure to discharge, any obligation under this section.

(i) On or before November 30, 2026, and annually on or before November 30 thereafter, the State Bar shall submit to the Assembly Committee on Judiciary and the Senate Committee on Judiciary a report detailing the number of findings, mandatory corrective actions, and referrals for possible discipline that the State Bar made in the prior fiscal year pertaining to client trust accounts. The report shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 13.

Section 6091.4 of the Business and Professions Code is amended to read:

6091.4.

(a) Notwithstanding subdivision (e) of Section 6068, Article 3 (commencing with Section 950) of Chapter 4 of Division 8 of the Evidence Code, the Attorney Work Product doctrine as restated in Chapter 4 (commencing with Section 2018.010) of Title 4 of Part 4 of the Code of Civil Procedure, or any other law, licensees of the State Bar, limited liability partnerships, or law corporations registered with the State Bar shall, pursuant to a request made as part of a compliance review, investigative audit, or disciplinary investigation being conducted by or at the direction of the State Bar, provide to the State Bar or its agents all requested information, records, or communications, including, but not limited to, account journals, client ledgers, fee agreements, client files, and billing statements related to the receipt, holding, and disbursement of funds, securities, or other property in which the licensee, limited liability partnership, or law corporation knows or reasonably should know a client or other person has an interest.

(b) By providing any information, records, or communications under subdivision (a), an attorney does not violate, waive, or extinguish the duty to maintain the confidence and preserve the secrets of their client under subdivision (e) of Section 6068, the Lawyer-Client Privilege under Article 3 (commencing with Section 950) of Chapter 4 of Division 8 of the Evidence Code, the Attorney Work Product doctrine as restated in Chapter 4 (commencing with Section 2018.010) of Title 4 of Part 4 of the Code of Civil Procedure, or the protections of any other rule or law related to attorney work product or the attorney-client privilege.

(c) Any information, records, or communications provided under subdivision (a) shall remain confidential unless disclosure by the State Bar or its agents is required to fulfill its licensing, regulatory, and disciplinary functions, including, but not limited to, investigation or formal proceedings concerning alleged misconduct of a licensee, limited liability partnership, or law corporation or the disclosure of alleged misconduct under Section 6044.5. In no event shall disclosure by the State Bar or its agents be deemed a waiver of the confidential character of the information for any other purpose nor shall the disclosing licensee be considered in violation of any of the duties listed in subdivision (b) as related to the disclosure of such items by the State Bar or its agents.

(d) Any information, records, or communications provided under subdivision (a) shall not be disclosed pursuant to any state law, including including, but not limited to, the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).

SEC. 14.

Section 6092.5 of the Business and Professions Code is amended to read:

6092.5.

In addition to any other duties specified by law, the State Bar shall do all of the following:

(a) Promptly notify the complainant of the disposition of each matter.

(b) Notify all of the following of a lawyer’s involuntary enrollment as an inactive licensee and termination of that enrollment, or any suspension or disbarment, and the reinstatement to active license of a suspended or disbarred attorney:

(1) The presiding judge of the superior court in the county where the attorney most recently maintained an office for the practice of law, with a request that the judge notify the judges in the county.

(2) The local bar association, if there is one, in the county or area where the attorney most recently maintained an office for the practice of law.

(3) The appropriate disciplinary authority in any other jurisdiction where the attorney is admitted to practice.

(c) Upon receipt of the certified copy of the record of conviction of a lawyer, as provided by subdivision (d) of Section 6101, promptly forward a certified copy of the judgment of conviction to the disciplinary agency in each jurisdiction in which the lawyer is admitted.

(d) Maintain permanent records of discipline and other matters within its jurisdiction, and compile statistics to aid in the administration of the system, including, but not limited to, a single log of all complaints received, investigative files, statistical summaries of docket processing and case dispositions, transcripts of all proceedings which have been transcribed, and other records as the State Bar or court require to be maintained.

(e) Expunge records of the State Bar as directed by the California Supreme Court.

(f) Pursuant to directions from the California Supreme Court, undertake whatever investigations are assigned to it.

(g) Provide information to prospective complainants regarding the nature and procedures of the disciplinary system, the criteria for prosecution of disciplinary complaints, the client security fund, and fee arbitration procedures.

(h) Inform the public, local bar associations and other organizations, and any other interested parties about the work of the State Bar and the right of all persons to make a complaint.

(i) Make agreements with respondents in lieu of disciplinary proceedings, regarding conditions of practice, further legal education, or other matters. These agreements may be used by the State Bar in any subsequent proceeding involving the lawyer.

SEC. 15.

Section 6101 of the Business and Professions Code is amended to read:

6101.

(a) Conviction of a felony, whether or not involving a crime of moral turpitude, or of a misdemeanor involving moral turpitude, constitutes a cause for disbarment or suspension.

(b) In any proceeding, whether under this article or otherwise, to disbar or suspend an attorney on account of that conviction, the record of conviction shall be conclusive evidence of guilt of the crime of which they have been convicted.

(c) The district attorney, city attorney, or other prosecuting agency shall notify the State Bar of California’s Office of Chief Trial Counsel of the pendency of an action against an attorney charging a felony or misdemeanor immediately upon obtaining information that the defendant is an attorney. The notice shall identify the attorney and describe the crimes charged and the alleged facts. The prosecuting agency shall also notify the clerk of the court in which the action is pending that the defendant is an attorney, and the clerk shall record prominently in the file that the defendant is an attorney.

(d) The clerk of the court in which an attorney is convicted of a crime shall, within 48 hours after the conviction, transmit a certified copy of the record of conviction to the Office of Chief Trial Counsel. Within 30 days of receipt, the Office of the Chief Trial Counsel shall transmit the record of any conviction for a felony, whether or not it involves moral turpitude, or for a misdemeanor which involves or may involve moral turpitude to the Supreme Court with such other records and information as may be appropriate to establish the Supreme Court’s jurisdiction. The Office of Chief Trial Counsel may procure and transmit the record of conviction to the Supreme Court when the clerk has not done so or when the conviction was had in a court other than a court of this state.

(e) The proceedings to disbar or suspend an attorney on account of such a conviction shall be undertaken by the Supreme Court pursuant to the procedure provided in this section and Section 6102, upon the receipt of the certified copy of the record of conviction.

(f) A plea or verdict of guilty, an acceptance of a nolo contendere plea, or a conviction after a plea of nolo contendere is deemed to be a conviction within the meaning of those sections.

SEC. 16.

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 is a felony under the laws of California, the United States, or any state or territory thereof, or that there is probable cause to believe that, whether for a felony or a misdemeanor, it involved moral turpitude, the Supreme Court shall suspend the attorney until the conviction has 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, prior to the attorney’s conviction, 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, 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 satisfy either of the following criteria:

(A) Constitute a felony under the laws of the State of California at the time the offense was committed.

(B) Constitute a felony or misdemeanor under the laws of the State of California at the time the offense was committed and the offense was punishable in the other state or territory by more than one year in jail or prison 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), 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.

(j) For the purpose of this section the following terms have the following meaning:

(1) “Conviction” has the meaning set forth in Section 6101.

(2) A conviction is “final” if any of the following applies:

(A) A judgment of conviction has been entered and the time for direct appeal has lapsed, if no appeal was taken, or the judgment of conviction has been finally affirmed on direct appeal.

(B) Irrespective of any subsequent order under Section 1203.4 of the Penal Code, or any similar statutory provision, an order for probation has been made suspending the imposition of sentence and the time for any direct appeal from this order has lapsed without any appeal being taken, or if an appeal was available and taken, the order has been finally affirmed on direct appeal.

(C) Under the laws of another state or territory of the United States, irrespective of any set aside, expungement, diversion or other postplea or postconviction relief, that state or territory’s attorney licensing organization or board would consider the case to be a conviction for that locality’s attorney discipline authority. The pendency or availability of any collateral challenge to a conviction shall not affect a determination that a conviction is final.

(k) Once a conviction is final, postconviction proceedings shall not change the effect of the conviction under this section and Section 6101 unless they result in a finding that the conviction is void for lack of subject matter jurisdiction or that the attorney convicted is factually innocent, in which case the court shall treat the conviction as if it did not occur.

SEC. 17.

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 2027 at a sum not exceeding four hundred dollars ($400).

(b) The annual license fee for active licensees is payable on or before the date set by the State Bar, which shall not be less than 12 months from the prior year’s due date. Individuals who qualify for a waiver pursuant to subdivision (b) of Section 6141.1 shall be permitted to pay fees on an installment basis, with interest and other costs directly associated with the use of an installment plan, in the manner determined by the State Bar. Additionally, 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, 2028, and as of that date is repealed.

SEC. 18.

Section 6140.02 of the Business and Professions Code is amended to read:

6140.02.

(a) The California Lawyers Association shall adopt a dues schedule for membership and shall provide that schedule to the State Bar by October 1 of each year.

(b) Payment of dues for membership in the California Lawyers Association and individual sections of the California Lawyers Association is voluntary. Each licensee of the State Bar shall have the option of joining the California Lawyers Association and one or more individual sections by including the dues set by the schedule established pursuant to subdivision (a) with that State Bar licensee’s annual license fees. Any contribution or membership option included with a State Bar of California mandatory fees billing statement shall include a statement that the California Lawyers Association is not a part of the State Bar and that membership in that organization is voluntary.

(c) The State Bar shall collect, in conjunction with the collection of its annual license fees under Section 6140, membership fees for the California Lawyers Association as provided by subdivision (b) of Section 6031.5.

(d) This section is not intended to limit the California Lawyers Association membership to licensees of the State Bar or restrict the California Lawyers Association from collecting membership dues or donations by other means.

(e) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.

SEC. 19.

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) The reimbursed amount by the Client Security Fund, plus applicable interest and costs, shall be added to and become a part of the license fee unless time for payment is extended or otherwise modified. Failure to pay the Client Security Fund as part of the license fee is a basis for suspension from the practice of law and payment to the Client Security Fund shall be a condition of transfer of a licensee’s status to active status from a suspension, involuntary inactive enrollment, or voluntary inactive status.

(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) Judicial review of a decision to approve or deny, in whole or in part, an application for reimbursement from the Client Security Fund may be had by filing a petition for a writ of administrative mandamus pursuant to Section 1094.5 of the Code of Civil Procedure within 90 days after the date the decision was served. This subdivision is declaratory of existing law.

(j) Subdivisions (c), (f), and (h) have, and shall have, retroactive application, as well as prospective application.

(k) (1) A licensee may be granted relief, in whole or in part, from any payment obligation under subdivision (c), including compromise of any money judgment, or may be granted an extension of time to pay, at the discretion of the State Bar, upon grounds of hardship, special circumstances, or other good cause.

(2) Notwithstanding subdivision (c), 50 percent of the collections received during the 2025 calendar year shall be deposited in the Client Security Fund and 50 percent shall be deposited in the State Bar’s general fund.

(l) As used in this section, “licensee” shall include a foreign legal consultant registered with the State Bar.

SEC. 20.

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 one hundred dollars ($100). The annual license fee for inactive licensees is payable on or before the date set by the State Bar, which shall not be less than 12 months from the prior year’s due date.

(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) The State Bar shall permit attorneys to file for inactive status through December 31 of the calendar year prior to becoming inactive.

(d) This section shall remain in effect only until January 1, 2028, and as of that date is repealed.

SEC. 21.

Section 6141.3 of the Business and Professions Code is amended to read:

6141.3.

(a) Except as provided in subdivision (b), the State Bar shall provide offers of discounts and other benefits to active and inactive licensees of the State Bar, including, but not limited to, insurance and noninsurance affinity programs, until December 31, 2018, and insurance affinity programs only, after December 31, 2018. Any revenue generated by these programs shall be used as follows:

(1) For all revenue received from January 1, 2018, until December 31, 2018, 50 percent of the revenue shall be used to assist the California Lawyers Association in transitioning to an independent entity, 25 percent of the revenue shall be distributed to qualified legal services projects and support centers as provided in Section 6216, and 25 percent shall be used to support the discipline functions of the State Bar or to support the Client Security Fund.

(2) For all revenue received on and after January 1, 2019, until December 31, 2019, 50 percent of the revenue shall be distributed to qualified legal services projects and support centers as provided in Section 6216, and 50 percent of the revenue shall be used to support the discipline functions of the State Bar or to support the Client Security Fund.

(b) Notwithstanding subdivision (a), if approved by the board of trustees, California ChangeLawyers, and Cal Bar Affinity, a subsidiary of California ChangeLawyers, the State Bar may transfer administration of the programs offering discounts and other benefits to active and inactive licensees of the State Bar under subdivision (a) to Cal Bar Affinity provided that any revenue received, less the administrative costs of the State Bar and Cal Bar Affinity in operating the programs, up to a maximum of 12 percent of the revenue received, and less the taxes incurred by Cal Bar Affinity in operating the programs, shall be distributed as follows from January 1, 2019, until December 31, 2019:

(1) All of the revenue received from the noninsurance affinity programs shall be kept by California ChangeLawyers, which shall distribute 50 percent of that revenue to support the programs of California ChangeLawyers and 50 percent of that revenue to qualified legal services projects and support centers as provided in Section 6216.

(2) For all revenue received from the insurance affinity programs, 50 percent of the revenue shall be kept by California ChangeLawyers, which shall distribute 50 percent of that revenue to support the programs of California ChangeLawyers and 50 percent of that revenue to qualified legal services projects and support centers in accordance with the formula provided in Section 6216, and 50 percent of the revenue shall be used to support the discipline functions of the State Bar or to support the Client Security Fund.

(c) If approved by the California Lawyers Association, California ChangeLawyers, and Cal Bar Affinity, and provided the California Lawyers Association complies with the requirement in subdivision (e), all revenue received from the noninsurance affinity programs and the insurance affinity programs, less the administrative costs of the State Bar and Cal Bar Affinity in operating the programs, up to a maximum of 12 percent of the revenue received, and the taxes incurred by Cal Bar Affinity in operating the programs, shall be distributed as follows on and after January 1, 2020:

(1) The first one hundred fifty thousand dollars ($150,000) of revenue received in 2020 and the first one hundred fifty thousand dollars ($150,000) received in 2021 shall go to the California Commission on Access to Justice, payable as follows:

(A) Seventy-five thousand dollars ($75,000) shall be paid on or before March 31, 2020, and seventy-five thousand dollars ($75,000) shall be paid on or before June 30, 2020.

(B) Thirty-seven thousand five hundred dollars ($37,500) shall be paid on or before March 31, 2021, thirty-seven thousand five hundred dollars ($37,500) shall be paid on or before June 30, 2021, thirty-seven thousand five hundred dollars ($37,500) shall be paid on or before September 30, 2021, and thirty-seven thousand five hundred dollars ($37,500) shall be paid on or before December 31, 2021.

(2) Any additional revenue shall be distributed as follows:

(A) One-third of the remaining revenue shall go to California ChangeLawyers.

(B) One-third of the remaining revenue shall go to the California Lawyers Association or an affiliated 501(c)(3) organization to support their respective diversity, equity and inclusion, access to justice, and civic engagement efforts.

(C) One-third of the remaining revenue shall go to California ChangeLawyers, which shall distribute that revenue to qualified legal services projects and support centers in accordance with the formula provided in Section 6216. However, in any year, a qualified legal services project or support center, as defined in Section 6213, may elect in writing to direct their allocation for that year to California ChangeLawyers for fellowships for law students and law graduates at qualified legal services projects and support centers. California ChangeLawyers shall utilize a competitive grant application process for determining grant awards. In awarding these statewide grants, preference shall be given to qualified legal services projects or support centers that serve rural or underserved communities and that serve clients regardless of immigration or citizenship status. The minimum grant amount shall be ten thousand dollars ($10,000).

(d) Given the public protection mission of the State Bar, the Legislature finds that it would be inappropriate for the State Bar to administer the program on a long-term basis. Therefore, should the program continue to operate after December 31, 2018, it is the intent of the Legislature that the program be administered by an entity other than the State Bar.

(e) If the California Lawyers Association elects to accept any share of the affinity funds revenue under this section, the California Lawyers Association shall not create or operate, or participate in the creation or operation, or otherwise solicit its members, or arrange to have its members solicited, for any affinity or royalty program involving similar insurance or noninsurance products or services with a percentage or share of costs being distributed to the California Lawyers Association, other than as provided in this section. If the California Lawyers Association creates or operates, or participates in the creation or operation, or otherwise solicits its members, or arranges to have its members solicited for any affinity or royalty program involving the sale of insurance or noninsurance products or services with a percentage or share of costs being distributed to the California Lawyers Association, all funds that would have been provided to the California Lawyers Association from affinity or royalty programs that transferred from the State Bar or are similar to programs that transferred from the State Bar shall be provided to California ChangeLawyers, which shall distribute 50 percent of that revenue to support the programs of California ChangeLawyers and 50 percent of that revenue to qualified legal services projects and support centers as provided in subparagraph (C) of paragraph (2) of subdivision (c) of this section.

(f) The California Lawyers Association or the affiliated 501(c)(3) organization shall submit an annual report to the Legislature by January 31 of each year detailing their use of funds, as provided in subparagraph (B) of paragraph (2) of subdivision (c), and a statement of compliance with subdivision (e). The report shall cover the prior calendar year from January through December, except for the first report due on January 31, 2026, which shall cover the prior three calendar years of 2023, 2024, and 2025.

SEC. 22.

Section 6141.3 is added to the Business and Professions Code, to read:

6141.3.

(a) The State Bar shall provide offers of discounts and other benefits to active and inactive licensees of the State Bar, including, but not limited to, insurance and noninsurance affinity programs.

(b) If approved by the board of trustees, the State Bar may transfer financial administration of the programs offering discounts and other benefits to active and inactive licensees of the State Bar under subdivision (a) to CalBar Connect to decrease the administrative burden on the State Bar. CalBar Connect shall distribute all revenue received from the insurance and noninsurance affinity programs, less the administrative costs of the State Bar and CalBar Connect in operating the programs, up to a maximum of 15 percent of the revenue received, and the taxes incurred by CalBar Connect in operating the programs, as follows:

(1) Two-thirds of the remaining revenue shall go to California ChangeLawyers.

(2) One-third of the remaining revenue shall go to California ChangeLawyers, which shall distribute that revenue to qualified legal services projects and support centers in accordance with the formula provided in Section 6216. However, in any year, a qualified legal services project or support center, as defined in Section 6213, may elect in writing to direct their allocation for that year to California ChangeLawyers for fellowships for law students and law graduates at qualified legal services projects and support centers. California ChangeLawyers shall utilize a competitive grant application process for determining grant awards. In awarding these statewide grants, preference shall be given to qualified legal services projects or support centers that serve rural or underserved communities and that serve clients regardless of immigration or citizenship status. The minimum grant amount shall be ten thousand dollars ($10,000).

SEC. 23.

Section 6142 of the Business and Professions Code is repealed.

SEC. 24.

The Legislature finds and declares that Sections 4 and 13 of this act, which amend Sections 6026.7 and 6091.4 of the Business and Professions Code, respectively, impose limitations 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:

In order to allow the State Bar of California to fully accomplish its objectives, including, but not limited to, its licensing, regulatory, and disciplinary functions, it is imperative to protect the privacy interests of those individuals whose identity, financial, and other sensitive information may be contained within the records produced to the State Bar of California in the course of its compliance reviews or investigative audits of entrusted funds, securities, and other property. Such information is protected and confidential.