6140.56. (a) To ensure that the Client Security Fund can adequately protect the public and relieve or mitigate financial losses caused by the dishonest conduct of licensees of the State Bar by paying claims in a timely manner, the State Bar shall conduct a thorough analysis of the Client Security Fund, including a review of the State Bar’s oversight of the Client Security Fund, to ensure that the structure provides for the most effective and efficient operation of the fund, a determination of the ongoing needs of the fund to satisfy claims in a timely manner, a review of additional efforts that can be taken to increase the collection of payments from the responsible attorneys, and a review of other State Bar expenditures to determine whether other expenditures that do not directly impact the State Bar’s public protection functions, including, but not limited to, executive salaries and benefits, can be reduced or redirected in order to better fund the Client Security Fund through existing revenue, and, whether, after all other options have been fully and thoroughly exhausted, an increase in license fees is necessary to ensure that the Client Security Fund can timely pay claims.
(b) The State Bar shall submit a report on its analysis of the Client Security Fund to the Legislature by March 15, 2018, so that the plans can be reviewed in conjunction with the bill that would authorize the imposition of the State Bar’s license fee. The report shall be submitted in compliance with Section 9795 of the Government Code.
(c) For purposes of this section, “timely manner” means within 12 months from either the time the claim is received by the State Bar or the resolution of the underlying discipline case involving an attorney licensee that is a prerequisite to paying the claim, whichever is later.
(Amended by Stats. 2018, Ch. 659, Sec. 102. (AB 3249) Effective January 1, 2019.)
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