Report 2015-047 Recommendation 19 Responses
Report 2015-047: The State Bar of California: Its Lack of Transparency Has Undermined Its Communications With Decision Makers and Stakeholders (Release Date: May 2016)
Recommendation #19 To: Bar of California, State
To ensure that it retains appropriate supervision and control over the State Bar's financial affairs, the board should establish a policy that includes requirements to make sure that the board reviews and approves all documents the State Bar uses in the creation and use of a nonprofit organization, including original and amended bylaws as well as agreements between the State Bar and the organization.
Annual Follow-Up Agency Response From March 2018
The 2018 State Bar Fee bill (SB 36, Stats. 2017, ch. 422) included an amendment to Business and Professions Code Section 6001, adding the following language: "However, as of March 31, 2018, the State Bar shall not create any foundations or nonprofit corporations."
This amendment became effective on January 1, 2018. Since the State Bar is prohibited from creating any nonprofit organizations, this recommendation is no longer applicable to the ongoing operations of the State Bar.
- Completion Date: January 2018
California State Auditor's Assessment of Annual Follow-Up Status: Resolved
Since state law was changed to prohibit the State Bar from creating foundations or nonprofit corporations, this recommendation is no longer applicable.
Annual Follow-Up Agency Response From November 2017
The 2018 fee bill directs the Bar to establish a non-profit entity to support the transition of the State Bar Sections to a standalone entity. A policy establishing eliminating the Bar's ability to establish such entities will be established once the transition of the Sections is complete.
- Estimated Completion Date: March 31, 2018
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
1-Year Agency Response
Since submission of the last Update, the Bar was advised by Legislative staff that it should maintain its ability to establish non-profit entities pending the transition of the State Bar Sections to a standalone entity. Anticipating that the Bar will not retain this ability in perpetuity, the Bar has not acted to establish policies.
- Estimated Completion Date: Unclear
- Response Date: May 2017
California State Auditor's Assessment of 1-Year Status: No Action Taken
6-Month Agency Response
The Board intends to adopt a policy eliminating its ability to establish nonprofits at an upcoming meeting.
- Estimated Completion Date: June 1, 2017
- Response Date: November 2016
California State Auditor's Assessment of 6-Month Status: Pending
60-Day Agency Response
The 2017 fee bill includes provisions which eliminate the State Bar's ability to establish nonprofits, rendering this recommendation moot. Should these provisions not ultimately be adopted, the State Bar will revisit this recommendation.
- Estimated Completion Date: 10/1/2016
- Response Date: July 2016
California State Auditor's Assessment of 60-Day Status: No Action Taken
Agency responses received are posted verbatim.