CHAPTER 439

An act to add Chapter 5.6 (commencing with Section 6450) to

Division 3 of, and to repeal Section 6450 of, the Business and

Professions Code, relating to professions and vocations.

LEGISLATIVE COUNSEL’S DIGEST

AB 1761, Brewer. Professions and vocations: paralegals.

Existing law defines the qualifications for and regulates the

practice of various professions and vocations.

This bill would establish the qualifications for practice as a

paralegal and make it unlawful for any person to identify himself or

herself as a paralegal unless he or she meets those qualifications and

performs all services under the direct supervision of an active

member of the State Bar of California. This bill would also make a

paralegal subject to the same confidentiality requirements as an

attorney.

This bill would in addition make it unlawful for a paralegal to

perform any services for a consumer, as defined, except as directed

by the attorney or entity employing or contracting with the

paralegal. This bill would prohibit a paralegal from performing

various acts, including giving legal advice, representing a client in

court, and acting as a runner or capper. This bill would make an

attorney using a paralegal’s services liable for the negligence or

misconduct of the paralegal. This bill would provide for the recovery

of attorney’s fees in a civil action brought in connection with a

violation of these provisions.

Because a violation of the bill’s provisions would be punishable as

an infraction or as a misdemeanor, as specified, this bill would impose

a state-mandated local program by creating a new crime.

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.

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

SECTION 1. Chapter 5.6 (commencing with Section 6450) is

added to Division 3 of the Business and Professions Code, to read:

CHAPTER 5.6. PARALEGALS

6450. (a) ‘‘Paralegal’’ means a person who either contracts with

or is employed by an attorney, law firm, corporation, governmental

agency, or other entity and who performs substantial legal work

under the direction and supervision of an active member of the State

Bar of California, as defined in Section 6060, or an attorney practicing

law in the federal courts of this state, that has been specifically

delegated by the attorney to him or her. Tasks performed by a

paralegal include, but are not limited to, case planning, development,

and management; legal research; interviewing clients; fact gathering

and retrieving information; drafting and analyzing legal documents;

collecting, compiling, and utilizing technical information to make an

independent decision and recommendation to the supervising

attorney; and representing clients before a state or federal

administrative agency if that representation is permitted by statute,

court rule, or administrative rule or regulation.

(b) Notwithstanding subdivision (a), a paralegal shall not do any

of the following:

(1) Provide legal advice.

(2) Represent a client in court.

(3) Select, explain, draft, or recommend the use of any legal

document to or for any person other than the attorney who directs

and supervises the paralegal.

(4) Act as a runner or capper, as defined in Sections 6151 and 6152.

(5) Engage in conduct that constitutes the unlawful practice of

law.

(6) Contract with, or be employed by, a natural person other than

an attorney to perform paralegal services.

(7) In connection with providing paralegal services, induce a

person to make an investment, purchase a financial product or

service, or enter a transaction from which income or profit, or both,

purportedly may be derived.

(8) Establish the fees to charge a client for the services the

paralegal performs, which shall be established by the attorney who

supervises the paralegal’s work. This paragraph does not apply to fees

charged by a paralegal in a contract to provide paralegal services to

an attorney, law firm, corporation, governmental agency, or other

entity as provided in subdivision (a).

(c) A paralegal shall possess at least one of the following:

(1) A certificate of completion of a paralegal program approved

by the American Bar Association.

(2) A certificate of completion of a paralegal program at, or a

degree from, a postsecondary institution that requires the successful

completion of a minimum of 24 semester, or equivalent, units in

law-related courses and that has been accredited by a national or

Ch. 439 —3—88

regional accrediting organization or approved by the Bureau for

Private Postsecondary and Vocational Education.

(3) A baccalaureate degree or an advanced degree in any subject,

a minimum of one year of law-related experience under the

supervision of an attorney who has been an active member of the

State Bar of California for at least the preceding three years or who

has practiced in the federal courts of this state for at least the

preceding three years, and a written declaration from this attorney

stating that the person is qualified to perform paralegal tasks.

(4) A high school diploma or general equivalency diploma, a

minimum of three years of law-related experience under the

supervision of an attorney who has been an active member of the

State Bar of California for at least the preceding three years or who

has practiced in the federal courts of this state for at least the

preceding three years, and a written declaration from this attorney

stating that the person is qualified to perform paralegal tasks. This

experience and training shall be completed no later than December

31, 2003.

(d) All paralegals shall be required to certify completion every

three years of four hours of mandatory continuing legal education in

legal ethics. All continuing legal education courses shall meet the

requirements of Section 6070. Every two years, all paralegals shall be

required to certify completion of four hours of mandatory continuing

education in either general law or in a specialized area of law.

Certification of these continuing education requirements shall be

made with the paralegal’s supervising attorney. The paralegal shall

be responsible for keeping a record of the paralegal’s certifications.

(e) A paralegal does not include a nonlawyer who provides legal

services directly to members of the public or a legal document

assistant or unlawful detainer assistant as defined in Section 6400.

(f) If a legal document assistant, as defined in subdivision (c) of

Section 6400, has registered, on or before January 1, 2001, as required

by law, a business name that includes the word ‘‘paralegal,’’ that

person may continue to use that business name until he or she is

required to renew registration.

(g) This section shall remain in effect only until January 1, 2004,

and as of that date is repealed, unless a later enacted statute, which

is enacted before January 1, 2004, deletes or extends that date.

6450. (a) ‘‘Paralegal’’ means a person who either contracts with

or is employed by an attorney, law firm, corporation, governmental

agency, or other entity and who performs substantial legal work

under the direction and supervision of an active member of the State

Bar of California, as defined in Section 6060, or an attorney practicing

law in the federal courts of this state, that has been specifically

delegated by the attorney to him or her. Tasks performed by a

paralegal include, but are not limited to, case planning, development,

and management; legal research; interviewing clients; fact gathering

and retrieving information; drafting and analyzing legal documents;

collecting, compiling, and utilizing technical information to make an

independent decision and recommendation to the supervising

attorney; and representing clients before a state or federal

administrative agency if that representation is permitted by statute,

court rule, or administrative rule or regulation.

(b) Notwithstanding subdivision (a), a paralegal shall not do the

following:

(1) Provide legal advice.

(2) Represent a client in court.

(3) Select, explain, draft, or recommend the use of any legal

document to or for any person other than the attorney who directs

and supervises the paralegal.

(4) Act as a runner or capper, as defined in Sections 6151 and 6152.

(5) Engage in conduct that constitutes the unlawful practice of

law.

(6) Contract with, or be employed by, a natural person other than

an attorney to perform paralegal services.

(7) In connection with providing paralegal services, induce a

person to make an investment, purchase a financial product or

service, or enter a transaction from which income or profit, or both,

purportedly may be derived.

(8) Establish the fees to charge a client for the services the

paralegal performs, which shall be established by the attorney who

supervises the paralegal’s work. This paragraph does not apply to fees

charged by a paralegal in a contract to provide paralegal services to

an attorney, law firm, corporation, governmental agency, or other

entity as provided in subdivision (a).

(c) A paralegal shall possess at least one of the following:

(1) A certificate of completion of a paralegal program approved

by the American Bar Association.

(2) A certificate of completion of a paralegal program at, or a

degree from, a postsecondary institution that requires the successful

completion of a minimum of 24 semester, or equivalent, units in

law-related courses and that has been accredited by a national or

regional accrediting organization or approved by the Bureau for

Private Postsecondary and Vocational Education.

(3) A baccalaureate degree or an advanced degree in any subject,

a minimum of one year of law-related experience under the

supervision of an attorney who has been an active member of the

State Bar of California for at least the preceding three years or who

has practiced in the federal courts of this state for at least the

preceding three years, and a written declaration from this attorney

stating that the person is qualified to perform paralegal tasks.

(4) A high school diploma or general equivalency diploma, a

minimum of three years of law-related experience under the

supervision of an attorney who has been an active member of the

State Bar of California for at least the preceding three years or who

has practiced in the federal courts of this state for at least the

preceding three years, and a written declaration from this attorney

stating that the person is qualified to perform paralegal tasks. This

experience and training shall be completed no later than December

31, 2003.

(d) All paralegals shall be required to certify completion every

three years of four hours of mandatory continuing legal education in

legal ethics. All continuing legal education courses shall meet the

requirements of Section 6070. Every two years, all paralegals shall be

required to certify completion of four hours of mandatory continuing

education in either general law or in a specialized area of law.

Certification of these continuing education requirements shall be

made with the paralegal’s supervising attorney. The paralegal shall

be responsible for keeping a record of the paralegal’s certifications.

(e) A paralegal does not include a nonlawyer who provides legal

services directly to members of the public, or a legal document

assistant or unlawful detainer assistant as defined in Section 6400,

unless the person is a person described in subdivisions (a) and (b).

(f) This section shall become operative on January 1, 2004.

6451. It is unlawful for a paralegal to perform any services for a

consumer except as performed under the direction and supervision

of the attorney, law firm, corporation, government agency, or other

entity that employs or contracts with the paralegal. Nothing in this

section shall prohibit a paralegal who is employed by an attorney, law

firm, governmental agency, or other entity from providing services

to a consumer served by one of these entities if those services are

specifically allowed by statute, case law, court rule, or federal or state

administrative rule or regulation. ‘‘Consumer’’ means a natural

person, firm, association, organization, partnership, business trust,

corporation, or public entity.

6452. (a) It is unlawful for a person to identify himself or herself

as a paralegal on any advertisement, letterhead, business card or sign,

or elsewhere unless he or she has met the qualifications of subdivision

(c) of Section 6450 and performs all services under the direction and

supervision of an attorney who is an active member of the State Bar

of California or an attorney practicing law in the federal courts of this

state who is responsible for all of the services performed by the

paralegal. The business card of a paralegal shall include the name of

the law firm where he or she is employed or a statement that he or

she is employed by or contracting with a licensed attorney.

(b) An attorney who uses the services of a paralegal is liable for

any harm caused as the result of the paralegal’s negligence,

misconduct, or violation of this chapter.

6453. A paralegal is subject to the same duty as an attorney

specified in subdivision (e) of Section 6068 to maintain inviolate the

confidentiality, and at every peril to himself or herself to preserve the

attorney-client privilege, of a consumer for whom the paralegal has

provided any of the services described in subdivision (a) of Section

6450.

6454. The terms ‘‘paralegal,’’ ‘‘legal assistant,’’ ‘‘attorney

assistant,’’ ‘‘freelance paralegal,’’ ‘‘independent paralegal,’’ and

‘‘contract paralegal’’ are synonymous for purposes of this chapter.

6455. (a) Any consumer injured by a violation of this chapter

may file a complaint and seek redress in any municipal or superior

court for injunctive relief, restitution, and damages. Attorney’s fees

shall be awarded in this action to the prevailing plaintiff.

(b) Any person who violates the provisions of Section 6451 or 6452

is guilty of an infraction for the first violation, which is punishable

upon conviction by a fine of up to two thousand five hundred dollars

($2,500) as to each consumer with respect to whom a violation occurs,

and is guilty of a misdemeanor for the second and each subsequent

violation, which is punishable upon conviction by a fine of two

thousand five hundred dollars ($2,500) as to each consumer with

respect to whom a violation occurs, or imprisonment in a county jail

for not more than one year, or by both that fine and imprisonment.

Any person convicted of a violation of this section shall be ordered

by the court to pay restitution to the victim pursuant to Section 1202.4

of the Penal Code.

6456. An individual employed by the state as a paralegal, legal

assistant, legal analyst, or similar title, is exempt from the provisions

of this chapter.

SEC. 2. 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