BILL NUMBER: AB 1363 AMENDED BILL TEXT AMENDED IN ASSEMBLY JANUARY 24, 2006 AMENDED IN ASSEMBLY JANUARY 12, 2006 AMENDED IN ASSEMBLY JANUARY 9, 2006 AMENDED IN ASSEMBLY JANUARY 4, 2006 AMENDED IN ASSEMBLY AUGUST 29, 2005 INTRODUCED BY Assembly Member Jones (Principal coauthors: Assembly Members Berg, Canciamilla, Frommer,Liu,and MontanezKarnette, Liu, Montanez, and Nunez ) (Coauthors: Assembly MembersCohn,Garcia,Klehs,Laird,Levine,Pavley,Chu, Cohn, Garcia, Klehs, Laird, Leno, Levine, Pavley, Saldana, and Spitzer) FEBRUARY 22, 2005 An act to add Chapter 6 (commencing with Section 6500) to Division 3 of the Business and Professions Code, to amend Sections 1822, 1826, 1829, 1850, 1851, 2250, 2253, 2321, 2340, 2342, 2343, 2620, 2620.2, 2623, 2640, 2641, 2850, 2851, 2852, 2853, 2854, 2855, and 2920 of, to add Sections 1456, 1457, 1458, 2250.1, 2250.2 and 2410 to, and to repeal Sections 2342.5, 2344, and 2640.1 of, the Probate Code, and to add Division 8.7 (commencing with Section 9800) to the Welfare and Institutions Code, relating to conservatorship and guardianship. LEGISLATIVE COUNSEL'S DIGEST AB 1363, as amended, Jones Omnibus Conservatorship and Guardianship Reform Act of 2006. Existing law governs the establishment of conservatorships and guardianships. Existing law requires conservators and guardians to present a biennial accounting of the assets of the conservatee or ward and requires a biennial review of each conservatorship. Existing law requires the Department of Justice to maintain a statewide registry of conservators, guardians, and trustees. A court may not appoint a person as a conservator, guardian, or trustee unless that person is registered if he or she is required to do so. This bill would enact the Omnibus Conservatorship and Guardianship Reform Act of 2006. The act would require professional conservators and guardians to be licensed and would prohibit a court from appointing nonlicensed professional conservators and guardians. The bill would require the Department of Consumer Affairs to establish and administer a licensing program for professional conservators and guardians, as defined. The bill would establish educational and training criteria for applicants for licensure. The bill would require the department to establish a licensing board to administer the program and to draft a fiduciaries' code of ethics. The bill would require the board to establish a complaint committee that would take disciplinary action, as appropriate, and make referrals to the Attorney General for violations of the statute or a breach of fiduciary duty. The bill would also remove conservators and guardians from the provisions governing registry, and require that the registry for trustees be maintained by the Department of Consumer Affairs, rather than the Department of Justice. The bill would require the Judicial Council to adopt specified rules of court relating to conservatorships and guardianships and to enact educational programs for nonlicensed conservators and guardians. The bill would also require the Judicial Council to establish qualifications and educational classes for probate court attorneys and investigators, to require educational classes for probate judges and public guardians, to establish conservatorship accountability measures, and to develop a form to provide notice regarding free assistance provided by the court to conservators. The bill would also make various changes to provisions governing conservatorship, including requiring an annual, rather than a biennial, review of conservatorships at a noticed hearing, requiring conservators and guardians to present an annual, rather than a biennial, accounting, prohibiting a court from reducing the amount of a bond in conservatorship proceedings without good cause, and imposing new duties on court investigators with respect to cases involving proposed conservatees, among other changes. The bill would establish in the California Department of Aging the Office of Conservatorship Ombudsman to collect and analyze data relative to complaints about conservatorships and to investigate and resolve complaints and concerns communicated by or on behalf of conservatees. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. This act shall be known and may be cited as the Omnibus Conservatorship and Guardianship Reform Act of 2006. SEC. 2. The Legislature finds and declares the following: (a) California has the fastest growing population in the country, and the rate of increase in the number of people who are 65 years of age or older is surpassing that in other states. The number of people who are 65 years of age will grow from 3.7 million people in the year 2000, to 6.3 million in the year 2020. The fastest growing segment of California's population, expected to increase by 148 percent between the years 1990 and 2020, is people who are 85 years of age or older. As many as 10 percent of the population over 65 years of age and 25 percent of the population over 85 years of age will suffer from Alzheimer's disease. (b) As the population of California continues to grow and age, an increasing number of persons in the state are unable to provide properly for their personal needs, to manage their financial resources, or to resist fraud or undue influence. (c) One result of these trends is the growing number of persons acting as conservators on behalf of other persons or their estates. It is estimated that about 500 professional conservators oversee $1.5 billion in assets. Over 5,000 conservatorship petitions are filed each year in California. (d) Probate courts oversee the work of conservators, but, in part due to a lack of resources and conflicting priorities, courts often do not provide sufficient oversight in conservatorship cases to ensure that the best interests of conservatees are protected. (e) Professional fiduciaries are not adequately regulated at present. This lack of regulation can result in the neglect, or the physical or financial abuse, of the clients professional fiduciaries are supposed to serve. For that reason, it is necessary to create a program to license certain professional fiduciaries in order to protect the public health, safety, and welfare. (f) Public guardians do not have adequate resources to represent the best interests of qualifying Californians and, therefore, many in need of the assistance of a conservator go without. (g) As a result, the conservatorship system in California is fundamentally flawed and in need of reform. SEC. 3. Chapter 6 (commencing with Section 6500) is added to Division 3 of the Business and Professions Code, to read: CHAPTER 6. PROFESSIONAL CONSERVATORS AND GUARDIANS ACT 6500. This chapter shall be known and may be cited as the Professional Conservators and Guardians Act. 6501. As used in this chapter, the following terms have the following meanings: (a) "Board" means the licensing board established by the Department of Consumer Affairs pursuant to Section 6504. (b) "Client" means the individual served by a professional conservator or guardian. (c) "Department" means the Department of Consumer Affairs. (d) "Professional conservator or guardian" means a person who, for compensation, acts as a conservator or guardian for two or more persons not related to the professional conservator or guardian or each other by blood, adoption, or marriage, registered domestic partnership, or a relationship that satisfies the requirements of subdivision (a) and paragraphs (1) to (4), inclusive, and paragraph (6) of subdivision (b) of Section 297 of the Family Code. Professional conservator or guardian also means a person, employed by a public agency or financial institution, acting as a conservator or guardian, who makes substantive fiduciary decisions or supervises persons who make substantive fiduciary decisions. A "professional conservator or guardian" does not include the following: (1) Any conservator or guardian who is not required to file information with the clerk of the court pursuant to Section 2340 of the Probate Code, any person or entity subject to the oversight of a local government, including an employee of a city, county, or city and county, or any person or entity subject to the oversight of the state or federal government, including an attorney licensed to practice law in the State of California who acts as trustee of only attorney client trust accounts, as defined in Section 6211. (2) Any conservator who resided in the same home with the conservatee immediately prior to the condition or event that gave rise to the necessity of a conservatorship. This subdivision does not create any order or preference of appointment, but simply exempts a conservator described by this subdivision from licensure. (3) A nonrelated guardian of the person of a minor appointed by the court as the result of the selection of a permanency plan for a dependent child or ward pursuant to Section 366.26 of the Welfare and Institutions Code. It also does not include a nonrelated guardian of the person of a minor appointed pursuant to Section 1514 of the Probate Code if that child is in receipt of AFDC-FC payments and case management services from the county welfare department, as evidenced by a Notice of Action of AFDC-FC eligibility. 6502. A person applying for licensure as a professional conservator or guardian shall meet all of the following requirements: (a) Be at least 21 years of age. (b) Be a United States citizen. (c) Have no felony convictions. (d) Have submitted fingerprints for state and Federal Bureau of Investigation criminal history background checks. (e) Have completed the mandatory 15 hours of prelicensing training. (f) Have passed the licensing examination. (g) Meet the qualifications for private professional conservators or private professional guardians as required pursuant to Sections 2342.5, 2344, and 2850 provided that those professional conservators and guardians with pending cases as of January 1, 2006, shall satisfy the required qualifications. (h) Have agreed to adhere to the Professional Fiduciaries' Code of Ethics. (i) Have submitted an application for licensure. (j) Have paid a nonrefundable application fee in an amount determined by the boards that includes all costs associated with the board, including investigatory costs. 6503. No person shall act as a professional conservator or guardian unless that person is licensed as a professional conservator or guardian in accordance with the provisions of this chapter. A court shall not appoint a professional conservator or guardian to serve unless that professional conservator or guardian is licensed. A court shall not appoint a public agency or financial institution to act as a conservator or guardian, unless the public agency or financial institution certifies that it has at least one professional conservator or guardian on its staff, and that all persons who meet the definition of a professional conservator or guardian in subdivision (d) of Section 6501 are licensed. 6504. The department shall establish a licensing board whose membership shall be comprised of nine members selected by the department. The members shall include four professional fiduciaries, including one from the public sector who shall be a member of the California State Association of Public Administrators, Public Guardians, and Public Conservators, and two from the private sector at least one of whom shall be a member of the Professional Fiduciary Association of California. The remaining members shall include a department employee, an employee of the Judicial Council of California, a court investigator, a member of the State Bar of California who is certified as a specialist in probate, estate planning, and trust law, and the Conservator Ombudsman. 6505. (a) Except as otherwise specified in Section 6508, the board shall be responsible for administering the licensing program established in this chapter. (b) The board shall meet at least quarterly to vote to approve or deny licensure to those applicants recommended to the board by the department. If the board approves the application for licensure, it shall notify the department, which shall notify the applicant and forward the applicant's name as a licensee to the statewide registry. The department shall provide the licensee with a certificate identifying him or her as a "licensed professional conservator or guardian." If the board denies the application for licensure, it shall notify the department, which shall give the applicant notice of the denial and the right to appeal that denial to the board. (c) The board shall approve classes qualifying for the 15 hours of prelicense training, as well as classes qualifying for the annual continuing education requirement established by this chapter. (d) The board shall maintain a current list of all approved classes. (e) The board shall arrange for the preparation and administration of licensing examinations. (f) The board shall establish a complaint committee, comprised of three of its members, which shall receive complaints regarding the actions of a professional conservator or guardian. The complaint committee shall review a professional conservator or guardian's alleged violation of statute or the Professional Fiduciary's Code of Ethics, and any other complaint referred to it by the department, and shall impose sanctions or refer to the Attorney General for further prosecution upon a finding of a violation or a breach of fiduciary duty. Sanctions shall include any of the following: (1) Censure, either private or public. (2) Suspension of the professional conservator or guardian's license. (3) Revocation of the professional conservator or guardian's license. (4) Filing of a civil or criminal court action, or both, by the Attorney General, as appropriate. (g) If the complaint committee imposes any of the sanctions listed in paragraph (1), (2), or (3) of subdivision (f), it shall notify the licensee in writing of the imposition of the sanctions, and of the licensee's right to appeal the imposition of those sanctions within 60 days of the receipt of the notice of the imposition of sanctions and shall notify all courts in which the license has conservatorships or guardianship cases of the sanction imposed. (h) The board shall set the fees to be paid for the licensing application and examination, as well as the fee to be paid for license renewal. The cost shall not be borne by the conservatee or ward. 6506. Board members shall be volunteers and shall not be compensated for serving, but shall be reimbursed for expenses incurred in the performance of their duties. Fees collected for the license applications and renewals, as well as the licensing examination, shall be deposited in the Professional Fiduciary Fund in the State Treasury, which is hereby created. The money in the fund, upon appropriation, shall be used to defray board expenses. 6507. Board members shall be immune from liability for any act taken pursuant to this chapter, provided that they have acted in good faith. 6508. The department shall review all applications for licensure and refer those recommended for approval to the board. The department shall not recommend approval for any applicant who comes within any of the following descriptions: (a) Has not met the qualifications for licensure under this chapter. (b) Has been convicted of any crime related to the functions and duties of a fiduciary. (c) Engages in fraud or deceit in applying for licensure under this chapter. (d) Has been found to have engaged in dishonesty, fraud, or gross negligence in performing the functions or duties of a professional conservator or guardian prior to the effective date of this chapter. (e) Has been removed as a fiduciary by a court for breach of fiduciary duty prior to the effective date of this chapter, and all appeals have been taken, or the time to file an appeal has expired. 6509. (a) To qualify for licensure, applicants shall have completed 15 hours of prelicensing education provided by a board-approved educational program. (b) To remain licensed, a licensee shall complete 15 hours of approved continuing education courses each year, and shall pay the annual renewal fee set by the board. Completion of 15 hours of approved continuing education courses shall not be required in the year in which the professional conservator or guardian is initially licensed. (c) The cost of any educational program mandated by this chapter shall not be borne by any client served by a professional conservator or guardian. 6510. As a requirement for licensure, applicants shall take and pass the licensing examination administered by the board. The board shall determine the cost of the examination, and the frequency with which it shall be administered. 6511. An applicant notified of the denial of his or her application for licensure shall have the right to appeal to the board. The appeal shall be filed within 60 days of the date of the notice of denial. 6512. A person who has been notified of the approval of his or her application for licensure may identify himself or herself as a "licensed professional conservator or guardian." 6513. Individuals, entities, agencies, and associations that propose to offer educational programs qualifying for the prelicensing educational or continuing educational requirements of this chapter shall apply for, and obtain approval by the board. 6514. (a) Licenses shall expire on December 31 of each year, except in the year a person is initially licensed, in which case the license expires on December 31 of the following year. (b) A license may be renewed upon proof of the licensee's compliance with the continuing education requirements of this chapter, and payment of the renewal fee set by the board, provided that the licensee has not engaged in conduct that would justify the board's refusal to grant the renewal. Acts justifying the board's refusal to renew a license shall include any of the following: (1) Conviction of any crime related to the qualifications, functions, and duties of a professional conservator or guardian. (2) Fraud or deceit in obtaining a license under this chapter. (3) Dishonesty, fraud, or gross negligence of the professional conservator or guardian in performing the functions or duties of a professional conservator or guardian. (4) Removal by a court for breach of fiduciary duty, if all appeals have been taken, or the time to file an appeal has expired. 6515. The department shall perform an initial review of a complaint, and shall do one of the following: (a) Determine that the complaint is not adequately documented, in which case, it shall return the complaint to the complainant with direction to provide further documentation. (b) Determine that the complaint appears to be frivolous, in which case, it shall forward the complaint to the complaint committee with the recommendation that the complaint be dismissed as frivolous. (c) Determine that the complaint relates to a specific case, and is either currently under review by the court, or has not yet been presented to a court for resolution, in which case the complaint shall be returned to the complainant for initial resolution by the court. (d) If the department, after investigation, determines that the complaint appears to be meritorious, it shall notify the complaint committee and the Attorney General in writing of the complaint and shall recommend disciplinary action. The complaint committee shall notify the professional conservator or guardian in writing of the complaint, and shall request a response with supporting documentation by a specified date. (e) Each complaint that is referred to the complaint committee for investigation, shall be simultaneously and jointly assigned to an investigator in the Attorney General's office responsible for prosecuting the case if the investigation results in a court filing against the conservator. The assignment of the investigator shall exist for the duration of the disciplinary matter. During the assignment, the investigator so assigned shall, under the direction of a deputy attorney general, be responsible for obtaining the evidence required to permit the Attorney General to advise the board on legal matters such as whether a formal complaint should be filed, the complaint should be dismissed for a lack of evidence required to meet the applicable burden of proof, or take other appropriate legal action. (f) The board, the Department of Consumer Affairs, and the Attorney General shall, if necessary, enter into an interagency agreement to implement this section. 6516. The board shall draft the Professional Fiduciaries' Code of Ethics. Copies of the Professional Fiduciaries' Code of Ethics shall be provided to persons who request an application for licensure. The board may amend the Professional Fiduciaries' Code of Ethics from time to time, as it deems necessary, provided that no amendment shall be effective until the next annual renewal of a professional conservator or guardian's license. Any amendment to the Professional Fiduciaries' Code of Ethics shall be included in the license renewal materials sent to the licensee. SEC. 4. Section 1456 is added to the Probate Code, to read: 1456. (a) On or before July 1, 2007, the Judicial Council shall adopt a rule of court that shall do all of the following: (1) Specifies the qualifications of a probate court attorney and investigator. (2) Specifies the number of hours of education in classes related to conservatorships or guardianships that a probate judge, probate court attorney, probate court investigator and public guardian shall complete each year. (3) Specifies the particular subject matter that shall be included in the education required each year. (4) Requires a probate judge, probate court attorney, probate court investigator and public guardian to certify to the court the completion of the yearly specified hours of education. (b) In formulating the rule required by this section, the Judicial Council shall consult with interested parties, including, but not limited to, the California Judges Association, the California Association of Superior Court Investigators, California State Association of Public Administrators, Public Guardians, and Public Conservators, the California Bar Association, the National Guardianship Association, and the Association of Professional Geriatric Care Managers. SEC. 5. Section 1457 is added to the Probate Code, to read: 1457. In order to assist relatives and friends who may seek appointment as a nonprofessional conservator or guardian: (a) The Judicial Council shall develop a short educational program of no more than three hours and shall make that program available free of charge to each conservator and guardian who is not required to be licensed as a professional conservator or guardian pursuant to Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code. The program may be available by video or Internet access in addition to in-person access. (b) Each probate court shall provide free assistance to conservators and guardians who are not required to be licensed as professional conservators or guardians pursuant to Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code in understanding the conservatorship or guardianship court process and in completing necessary court forms. SEC. 6. Section 1458 is added to the Probate Code, to read: 1458. (a) On or before January 1, 2007, the Judicial Council shall develop conservatorship accountability measures for use by each court. The measures shall include at a minimum: (1) The number of temporary conservatorships requested and the number granted, noting the number of hearings in which notice was waived, the number of hearings in which the proposed conservatee attended the hearing, the number of contested hearings, and whether the proposed conservator was a professional conservator, the public guardian, or a family and friend not required to register under Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code. (2) The number of permanent conservatorships requested and the number granted, noting the number of hearings in which the proposed conservatee attended the hearing, the number of contested hearings, and whether the proposed conservator was a professional conservator, the public guardian, or a family member or friend not required to register under Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code. (3) The number of accountings filed (A) over 30 days late and (B) over 90 days late. (b) Each court shall collect conservatorship accountability data and report that data to Judicial Council every quarter. The Judicial Council shall report that data annually to the Legislature. SEC. 7. Section 1822 of the Probate Code is amended to read: 1822. (a) At least 15 days before the hearing on the petition for appointment of a conservator, notice of the time and place of the hearing shall be given as provided in this section. The notice shall include information about free assistance provided by the court to conservators pursuant to Section 1457 and about the complaint process available through the Conservator Ombudsman established pursuant to Section 9800 of the Welfare and Institutions Code. The notice shall be accompanied by a copy of the petition. The court may not shorten the time for giving the notice of hearing under this section. (b) Notice shall be mailed to the following persons: (1) The spouse, if any, or domestic partner, if any, of the proposed conservatee at the address stated in the petition. (2) The relatives named in the petition at their addresses stated in the petition. (c) If notice is required by Section 1461 to be given to the Director of Mental Health or the Director of Developmental Services, notice shall be mailed as so required. (d) If the petition states that the proposed conservatee is receiving or is entitled to receive benefits from the Veterans Administration, notice shall be mailed to the office of the Veterans Administration referred to in Section 1461.5. (e) If the proposed conservatee is a person with developmental disabilities, at least 30 days before the day of the hearing on the petition, the petitioner shall mail a notice of the hearing and a copy of the petition to the regional center identified in Section 1827.5. (f) The Judicial Council shall, on or before July 1, 2007, develop a form to effectuate the notice required in subdivision (a). SEC. 8. Section 1826 of the Probate Code is amended to read: 1826. Regardless of whether the proposed conservatee attends the hearing, the court investigator shall do all of the following: (a) Interview the proposed conservatee personally. (b) Inform the proposed conservatee of the contents of the citation, of the nature, purpose, and effect of the proceeding, and of the right of the proposed conservatee to oppose the proceeding, to attend the hearing, to have the matter of the establishment of the conservatorship tried by jury, to be represented by legal counsel if the proposed conservatee so chooses, and to have legal counsel appointed by the court if unable to retain legal counsel. (c) Determine whether it appears that the proposed conservatee is unable to attend the hearing and, if able to attend, whether the proposed conservatee is willing to attend the hearing. (d) Review the allegations of the petition as to why the appointment of the conservator is required and, in making his or her determination, do the following: (1) Refer to the supplemental information form submitted by the petitioner and consider the facts set forth in the form that address each of the categories specified in paragraphs (1) to (5), inclusive, of subdivision (a) of Section 1821. (2) Consider, to the extent practicable, whether he or she believes the proposed conservatee suffers from any of the mental function deficits listed in subdivision (a) of Section 811 that significantly impairs the proposed conservatee's ability to understand and appreciate the consequences of his or her actions in connection with any of the functions described in subdivision (a) or (b) of Section 1801 and identify the observations that support that belief. (e) Determine whether the proposed conservatee wishes to contest the establishment of the conservatorship. (f) Determine whether the proposed conservatee objects to the proposed conservator or prefers another person to act as conservator. (g) Determine whether the proposed conservatee wishes to be represented by legal counsel and, if so, whether the proposed conservatee has retained legal counsel and, if not, the name of an attorney the proposed conservatee wishes to retain. (h) Determine whether the proposed conservatee is capable of completing an affidavit of voter registration. (i) To the greatest extent possible, personally interview the relatives of the proposed conservatee set forth in subdivision (b) of Section 1821 before the hearing. (j) If the proposed conservatee has not retained legal counsel, determine whether the proposed conservatee desires the court to appoint legal counsel. (k) Determine whether the appointment of legal counsel would be helpful to the resolution of the matter or is necessary to protect the interests of the proposed conservatee in any case where the proposed conservatee does not plan to retain legal counsel and has not requested the appointment of legal counsel by the court. (l) Report to the court in writing, at least five days before the hearing, concerning all of the foregoing, including the proposed conservatee's express communications concerning both of the following: (1) Representation by legal counsel. (2) Whether the proposed conservatee is not willing to attend the hearing, does not wish to contest the establishment of the conservatorship, and does not object to the proposed conservator or prefer that another person act as conservator. (m) Mail, at least five days before the hearing, a copy of the report referred to in subdivision (k) to all of the following: (1) The attorney, if any, for the petitioner. (2) The attorney, if any, for the proposed conservatee. (3) Any other persons as the court orders. (n) The court investigator has discretion to release the report required by this section to the public conservator, interested public agencies, and the long-term care ombudsman. (o) The report required by this section is confidential and shall be made available only to parties, persons given notice of the petition who have requested this report or who have appeared in the proceedings, their attorneys, and the court. The court has discretion at any other time to release the report, if it would serve the interests of the conservatee. The clerk of the court shall provide for the limitation of the report exclusively to persons entitled to its receipt. (p) This section does not apply to a proposed conservatee who has personally executed the petition for conservatorship, or one who has nominated his or her own conservator, if he or she attends the hearing. (q) If the court investigator has performed an investigation within the preceding six months and furnished a report thereon to the court, the court may order, upon good cause shown, that another investigation is not necessary or that a more limited investigation may be performed. SEC. 9. Section 1829 of the Probate Code is amended to read: 1829. (a) Any of the following persons may appear at the hearing to support or oppose the petition: (1) The proposed conservatee. (2) The spouse or domestic partner of the proposed conservatee. (3) A relative of the proposed conservatee. (4) Any interested person or friend of the proposed conservatee. (b) The court shall inform any of the persons set forth in (a) who appear at the hearing about the free assistance provided by the court conservators pursuant to Section 1457. SEC. 10. Section 1850 of the Probate Code is amended to read: 1850. (a) Except as provided in subdivision (b), each conservatorship initiated pursuant to this part shall be reviewed by the court at a noticed hearing six months after the appointment of the conservator and annually thereafter. (b) Notice of the hearing shall be provided to all persons listed in subdivision (b) of Section 1822. (c) This chapter does not apply to either of the following: (1) A conservatorship for an absentee as defined in Section 1403. (2) A conservatorship of the estate for a nonresident of this state where the conservatee is not present in this state. SEC. 11. Section 1851 of the Probate Code is amended to read: 1851. (a) When court review is required, the court investigator shall, without prior notice to the conservator, visit the conservatee. The court investigator shall inform the conservatee personally that the conservatee is under a conservatorship and shall give the name of the conservator to the conservatee. The court investigator shall determine whether the conservatee wishes to petition the court for termination of the conservatorship, whether the conservatee is still in need of the conservatorship, whether the present conservator is acting in the best interests of the conservatee, and whether the conservatee is capable of completing an affidavit of voter registration. If the court has made an order under Chapter 4 (commencing with Section 1870), the court investigator shall determine whether the present condition of the conservatee is such that the terms of the order should be modified or the order revoked. (b) The findings of the court investigator, including the facts upon which the findings are based, shall be certified in writing to the court not less than 15 days prior to the date of review. A copy of the report shall be mailed to the conservator and to the attorneys of record for the conservator and conservatee at the same time it is certified to the court. (c) In the case of a limited conservatee, the court investigator shall make a recommendation regarding the continuation or termination of the limited conservatorship. (d) The court investigator may personally visit the conservator and other persons as may be necessary to determine whether the present conservator is acting in the best interests of the conservatee. (e) The report required by this section shall be confidential and shall be made available only to parties, persons given notice of the petition who have requested the report or who have appeared in the proceeding, their attorneys, and the court. The court shall have discretion at any other time to release the report if it would serve the interests of the conservatee. The clerk of the court shall make provision for limiting disclosure of the report exclusively to persons entitled thereto under this section. SEC. 12. Section 2250 of the Probate Code is amended to read: 2250. (a) On or after the filing of a petition for appointment of a guardian or conservator, any person entitled to petition for appointment of the guardian or conservator may file a petition for appointment of: (1) A temporary guardian of the person or estate or both. (2) A temporary conservator of the person or estate or both. (b) The petition shall state facts which establish good cause for appointment of the temporary guardian or temporary conservator. The court, upon that petition or other showing as it may require, may appoint a temporary guardian of the person or estate or both, or a temporary conservator of the person or estate or both, to serve pending the final determination of the court upon the petition for the appointment of the guardian or conservator. (c) Unless the court for good cause otherwise orders, not less than five days before the appointment of the temporary guardian or temporary conservator, notice of the proposed appointment shall be personally delivered to the proposed ward if 12 years of age or older or to the proposed conservatee, to the parent or parents if the proposed ward is a minor, and to any person having a valid visitation order with the proposed ward that was effective at the time of the filing of the petition. In a proceeding for temporary guardianship of the person, evidence that a custodial parent has died or become incapacitated and that the petitioner is the nominee of the custodial parent may constitute good cause for the court to order that this notice not be delivered. On or before July 1, 2007, the Judicial Council shall adopt a rule of court that shall establish uniform standards for good cause exceptions to the notice required by this subdivision, limiting those exceptions to only cases when waiver of the notice is essential to protect the proposed conservatee or ward or the estate of the proposed conservatee or ward from irreparable harm. (d) If a temporary guardianship is granted ex parte and the hearing on the general guardianship petition is not to be held within 15 days of the granting of the temporary guardianship, the court shall set a hearing within 15 days to reconsider the temporary guardianship. Notice of the hearing for reconsideration of the temporary guardianship shall be provided pursuant to Section 1511, except that the court may for good cause shorten time for notice of the hearing. (e) Visitation orders with the proposed ward granted prior to the filing of a petition for temporary guardianship shall remain in effect, unless for good cause the court orders otherwise. (f) One petition may request the appointment of a guardian or conservator and also the appointment of a temporary guardian or conservator or these appointments may be requested in separate petitions. (g) If the court suspends powers of the guardian or conservator under Section 2334 or 2654 or under any other provision of this division, the court may appoint a temporary guardian or conservator to exercise those powers until the powers are restored to the guardian or conservator or a new guardian or conservator is appointed. (h) If for any reason a vacancy occurs in the office of guardian or conservator, the court, on a petition filed under subdivision (a) or on its own motion, may appoint a temporary guardian or conservator to exercise the powers of the guardian or conservator until a new guardian or conservator is appointed. SEC. 13. Section 2250.1 is added to the Probate Code, to read: 2250.1. (a) The proposed temporary conservatee shall attend the hearing except in the following cases: (1) If the proposed temporary conservatee is out of the state when served and is not the petitioner. (2) If the proposed temporary conservatee is unable to attend the hearing by reason of medical inability. (3) If the court investigator has visited the proposed conservatee prior to the hearing and the court investigator has reported to the court that the proposed temporary conservatee has expressly communicated thatthe proposed conservateeall of the following apply : (A)IsThe proposed conservatee is not willing to attend the hearing. (B)DoesThe proposed conservatee does not wish to contest the establishment of the temporary conservatorship. (C)DoesThe proposed conservatee does not object to the proposed temporary conservator or prefer that another person act as temporary conservatee need not attend the hearing. (4) If the court determines that the proposed conservatee cannot attend the hearing, and holding the hearing in the absence of the proposed conservatee is necessary to protect the conservatee from imminent harm. (b) Emotional or psychological instability is not good cause for the absence of the proposed temporary conservatee from the hearing unless, by reason of that instability, attendance at the hearing is likely to cause serious and immediate physiological damage to the proposed temporary conservatee. SEC. 14. Section 2250.2 is added to the Probate Code, to read: 2250.2. (a) Regardless of whether the proposed temporary conservatee attends the hearing, the court investigator shall do all of the following prior to the hearing, or, if not feasible before the hearing, in no event later than 48 hours after the hearing: (1) Interview the proposed conservatee personally. (2) Inform the proposed conservatee of the contents of the citation, of the nature, purpose, and effect of the proceeding, and of the right of the proposed conservatee to oppose the proceeding, to attend the hearing, to have the matter of the establishment of the conservatorship tried by jury, to be represented by legal counsel if the proposed conservatee so chooses, and to have legal counsel appointed by the court if unable to retain legal counsel. (3) Determine whether it appears that the proposed conservatee is unable to attend the hearing and, if able to attend, whether the proposed conservatee is willing to attend the hearing. (4) Determine whether the proposed conservatee wishes to contest the establishment of the conservatorships. (5) Determine whether the proposed conservatee objects to the proposed conservator or prefers another person to act as conservator. (6) Report to the court, in writing, concerning all of the foregoing. (b) If the investigator does not visit the conservatee until after the hearing at which a conservator was appointed, and the conservatee objects to the appointment of the temporary conservator, the court shall set the matter for an expedited hearing within 10 days of the investigator's visit. SEC. 15. Section 2253 of the Probate Code is amended to read: 2253. (a) If a temporary conservator of the person proposes to fix the residence of the conservatee at a place other than that where the conservatee resided prior to the commencement of the proceedings, that power shall be requested of the court in writing, unless the change of residence is required of the conservatee by a prior court order. The request shall be filed with the petition for temporary conservatorship or, if a temporary conservatorship has already been established, separately. The request shall specify in particular the place to which the temporary conservator proposes to move the conservatee, and the precise reasons why it is believed that the conservatee will suffer irreparable harm if the change of residence is not permitted, and why no means less restrictive of the conservatee's liberty will suffice to prevent that harm. (b) Unless the court for good cause orders otherwise, the court investigator shall do all of the following: (1) Interview the conservatee personally. (2) Inform the conservatee of the nature, purpose, and effect of the request made under subdivision (a), and of the right of the conservatee to oppose the request, attend the hearing, be represented by legal counsel if the conservatee so chooses, and to have legal counsel appointed by the court if unable to obtain legal counsel. (3) Determine whether the conservatee is unable to attend the hearing because of medical inability and, if able to attend, whether the conservatee is willing to attend the hearing. (4) Determine whether the conservatee wishes to oppose the request. (5) Determine whether the conservatee wishes to be represented by legal counsel at the hearing and, if so, whether the conservatee has retained legal counsel and, if not, the name of an attorney the proposed conservatee wishes to retain or whether the conservatee desires the court to appoint legal counsel. (6) If the conservatee does not plan to retain legal counsel and has not requested the appointment of legal counsel by the court, determine whether the appointment of legal counsel would be helpful to the resolution of the matter or is necessary to protect the interests of the conservatee. (7) Determine whether the proposed change of place of residence is required to prevent irreparable harm to the conservatee and whether no means less restrictive of the conservatee's liberty will suffice to prevent that harm. (8) Report to the court in writing, at least two days before the hearing, concerning all of the foregoing, including the conservatee's express communications concerning representation by legal counsel and whether the conservatee is not willing to attend the hearing and does not wish to oppose the request. (c) Within seven days of the date of filing of a temporary conservator's request to remove the conservatee from his or her previous place of residence, the court shall hold a hearing on the request. (d) The conservatee shall be present at the hearing except in the following cases: (1) Where the conservatee is unable to attend the hearing by reason of medical inability. Emotional or psychological instability is not good cause for the absence of the conservatee from the hearing unless, by reason of that instability, attendance at the hearing is likely to cause serious and immediate physiological damage to the conservatee. (2) Where the court investigator has reported to the court that the conservatee has expressly communicated that the conservatee is not willing to attend the hearing and does not wish to oppose the request, and the court makes an order that the conservatee need not attend the hearing. (e) If the conservatee is unable to attend the hearing because of medical inability, that inability shall be established (1) by the affidavit or certificate of a licensed medical practitioner or (2) if the conservatee is an adherent of a religion whose tenets and practices call for reliance on prayer alone for healing and is under treatment by an accredited practitioner of that religion, by the affidavit of the practitioner. The affidavit or certificate is evidence only of the conservatee's inability to attend the hearing and shall not be considered in determining the issue of need for the establishment of a conservatorship. (f) At the hearing, the conservatee has the right to be represented by counsel and the right to confront and cross-examine any witness presented by or on behalf of the temporary conservator and to present evidence on his or her own behalf. (g) The court may approve the request to remove the conservatee from the previous place of residence only if the court finds (1) that change of residence is required to prevent irreparable harm to the conservatee and (2) that no means less restrictive of the conservatee' s liberty will suffice to prevent that harm. If an order is made authorizing the temporary conservator to remove the conservatee from the previous place of residence, the order shall specify the specific place wherein the temporary conservator is authorized to place the conservatee. The temporary conservator may not be authorized to remove the conservatee from this state unless it is additionally shown that such removal is required to permit the performance of specified nonpsychiatric medical treatment, consented to by the conservatee, which is essential to the conservatee's physical survival. A temporary conservator who willfully removes a temporary conservatee from this state without authorization of the court is guilty of a felony. (h) Subject to subdivision (e) of Section 2252, the court shall also order the temporary conservator to take all reasonable steps to preserve the status quo concerning the conservatee's previous place of residence. SEC. 16. Section 2321 of the Probate Code is amended to read: 2321. (a) Notwithstanding any other provision of law, the court in a conservatorship proceeding may not waive the filing of a bond or reduce the amount of bond required, without a good cause determination by the court which shall include a determination by the court that the conservator will not suffer harm as a result of the waiver or reduction of the board. Good cause may not be established merely by the conservator having filed a bond in another or prior proceeding. (b) In a conservatorship proceeding, where the conservatee, having sufficient capacity to do so, has waived the filing of a bond, the court in its discretion may permit the filing of a bond in an amount less than would otherwise be required under Section 2320. SEC. 17. Section 2340 of the Probate Code is amended to read: 2340. (a) A superior court shall not appoint a professional conservator guardian or permit any person to serve as a professional conservator or professional guardian pursuant to Chapter 5 (commencing with Section 2350) or Chapter 6 (commencing with Section 2400), unless the professional conservator or guardian is licensed by the Department of Consumer Affairs pursuant to Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code. If a conservator or guardian is exempted from licensure requirements under that chapter, the court may appoint that person to serve as a conservator or guardian without a professional conservator or guardian license by the Department of Consumer Affairs. (b) No superior court may appoint a private professional trustee unless the trustee has filed the information required by Sections 2342 and 2343 with the clerk of the court in each county where a petition for appointment has been filed. SEC. 18. Section 2342 of the Probate Code is amended to read: 2342. (a) All private professional trustees shall file annually with the clerk of the court a statement, under penalty of perjury, containing the following information: (1) His or her educational background and professional experience. (2) At least three professional references. (3) The aggregate dollar value of all assets currently under the trustee's supervision. (4) The trustee's addresses and telephone numbers for his or her place of business and place of residence. (5) Whether the trustee has ever been removed for cause as trustee or has resigned as trustee in a specific case, the circumstances causing that removal or resignation, and the case names, court locations, and case numbers. (6) The case names, court locations, and case numbers of all trust cases which are closed for which the private professional trustee served as the trustee. (b) Upon filing of a petition for appointment, a private professional trustee shall state that he or she is a private professional trustee, and that the information required by this section is on file with the clerk of the court. (c) The clerk of the court shall order a background fingerprint check from the Department of Justice and may request a background fingerprint check from the Federal Bureau of Investigation on each private professional trustee. The background check shall include a record of all arrests resulting in conviction and all arrests for which final disposition is pending. The Department of Justice shall retain these fingerprints in its files and shall provide any subsequent arrest information to the clerk of the court pursuant to Section 11105.2 of the Penal Code until notified by the clerk of the court that the person is no longer serving in the capacity of a private professional trustee. The superior court shall review the background fingerprint check prior to the appointment of a private professional trustee. The court shall review annual updates to the criminal background check on persons currently serving in the capacity of a private professional trustee under the court's jurisdiction. The background fingerprint check may be dispensed with by the court if the petitioner was appointed as a private professional trustee, or served in the capacity of a private professional trustee, during the previous year and a background fingerprint check was previously made. (d) The information required by this section shall be made available to the court for any purpose, including the determination of the appropriateness of appointing or continuing the appointment of, or removing, the trustee, but shall otherwise be kept confidential. (e) This section applies to all private professional trustees regardless of the date of appointment. SEC. 19. Section 2342.5 of the Probate Code is repealed. SEC. 20. Section 2343 of the Probate Code is amended to read: 2343. The clerk of the court shall charge each private professional trustee an annual filing fee that does not exceed the average trustee annual cost in complying with this article. This fee shall also include the cost of submitting the fingerprint card to the Department of Justice. This fee shall be distributed to the court in which it was collected. SEC. 21. Section 2344 of the Probate Code is repealed. SEC. 22. Section 2410 is added to the Probate Code, to read: 2410. On or before July 1, 2007, the Judicial Council shall adopt a rule of court that shall require uniform standards of conduct for actions that conservators and guardians may take under this chapter on behalf of conservatees and wards to ensure that the estate of conservatees or wards are maintained and conserved as appropriate and to prevent risk of loss or harm to the conservatees or wards. This rule shall include at a minimum standards for determining the fees that may be charged to conservatees or wards and standards for asset management. SEC. 23. Section 2620 of the Probate Code is amended to read: 2620. (a) At the expiration of six months from the time of appointment and thereafter not less frequently than annually, unless otherwise ordered by the court to be more frequent, the guardian or conservator shall present the accounting of the assets of the estate of the ward or conservatee to the court for settlement and allowance in the manner provided in Chapter 4 (commencing with Section 1060) of Part 1 of Division 3. (b) The final court accounting of the guardian or conservator following the death of the ward or conservatee shall include a court accounting for the period that ended on the date of death and a separate accounting for the period subsequent to the date of death. (c) Along with each court accounting, the guardian or conservator shall file all supporting documents for all charges, including all original account statements from any institution, as defined in Section 2890, or any financial institution, as defined in Section 2892, in which money or other assets of the estate are held or deposited, showing the balance through the entire accounting period of the court accounting. If the court accounting is the first court accounting of the guardianship or conservatorship, the guardian or conservator shall provide to the court the account statement for the account balance immediately preceding the date the conservator or guardian was appointed and the account statement or statements for the account throughout the accounting period until the closing date of the first court accounting. This subdivision shall not apply to the public guardian if the money belonging to the estate is pooled with money belonging to other estates pursuant to Section 2940 and Article 3 (commencing with Section 7640) of Chapter 4 of Part 1 of Division 7. Nothing in this section shall affect any other duty or responsibility of the public guardian with regard to managing money belonging to the estate or filing accountings with the court. (d) If any document to be filed with the court under this section contains the ward or conservatee's social security number or any other personal information regarding the ward or conservatee that would not ordinarily be disclosed in a court accounting, an inventory and appraisal, or other nonconfidential pleadings filed in the action, the account statement shall be attached to a separate affidavit describing the character of the document in proper form for filing, captioned "CONFIDENTIAL FINANCIAL STATEMENT" in capital letters. Except as otherwise ordered by the court, the clerk of the court shall keep the document confidential except to the court and subject to disclosure only upon an order of the court. (e) Each accounting is subject to random and full audit by the court. Each accounting that the court determines may not be accurate shall be subject to a full audit. The audit shall include a review of all documents necessary to determine the accuracy of the accounting. If the audit reveals any material error, the court shall immediately do one of the following: (1) Remove the conservator or guardian as provided under Chapter 9 (commencing with Section 2650). (2) Hold a hearing to determine the severity of the error and whether the conservator or guardian should be removed as provided under Chapter 9 (commencing with Section 2650). (3) Make a finding that the error was harmless. SEC. 24. Section 2620.2 of the Probate Code is amended to read: 2620.2. (a) Whenever the conservator or guardian has failed to file an account as required by Section 2620, the court shall require that written notice be given to the conservator or guardian and the attorney of record for the conservatorship or guardianship directing the conservator or guardian to file an account and to set the account for hearing before the court within 30 days of the date of the notice or, if the conservator or guardian is a public agency, within 45 days of the date of the notice. (b) Failure to file the account within the time specified in the under subdivision (a), or within 45 days of actual receipt of the notice, whichever is later, shall constitute a contempt of the authority of the court as described in Section 1209 of the Code of Civil Procedure. (c) If the conservator or guardian does not file an account with all appropriate supporting documentation and set the account for hearing as required by Section 2620 the court shall do one or more of the following and shall report that action to the board established pursuant to Section 6504 of the Business and Professions Code: (1) Remove the conservator or guardian as provided under Article 1 (commencing with Section 2650) of Chapter 9 of Part 4 of Division 4. (2) Issue and serve a citation requiring a guardian or conservator who does not file a required account to appear and show cause why the guardian or conservator should not be punished for contempt. If the guardian or conservator purposely evades personal service of the citation, the guardian or conservator shall be immediately removed from office. (3) Suspend the powers of the conservator or guardian and appoint a temporary conservator or guardian, who shall take possession of the assets of the conservatorship or guardianship, investigate the actions of the conservator or guardian, and petition for surcharge if this is in the best interest of the ward or conservatee. Compensation for the temporary conservator or guardian, and counsel for the temporary conservator or guardian, shall be treated as a surcharge against the conservator or guardian, and if unpaid shall be considered a breach of condition of the bond. (4) If the conservatee is exempt from the licensure requirements of Chapter 6 (commencing with Section 6500) of Division 3 of the Business and Professions Code, upon ex parte application or such notice as the court may require, time to file the account, not to exceed an additional 30 days after the expiration of the deadline described in subdivision (a), where the court finds there is good cause and that the estate is adequately bonded. After expiration of any extensions, if the account has not been filed, the court shall take action as described in paragraphs (1) to (3), inclusive. (d) Subdivision (c) does not preclude the court from additionally taking any other appropriate action in response to a failure to file a proper accounting in a timely manner. SEC. 25. Section 2623 of the Probate Code is amended to read: 2623. (a) Except as provided in subsection (b) of this section, the guardian or conservator shall be allowed all of the following: (1) The amount of the reasonable expenses incurred in the exercise of the powers and the performance of the duties of the guardian or conservator (including, but not limited to, the cost of any surety bond furnished, reasonable attorney's fees, and such compensation for services rendered by the guardian or conservator of the person as the court determines is just and reasonable). (2) Such compensation for services rendered by the guardian or conservator as the court determines is just and reasonable. (3) All reasonable disbursements made before appointment as guardian or conservator. (4) In the case of termination other than by the death of the ward or conservatee, all reasonable disbursements made after the termination of the guardianship or conservatorship but prior to the discharge of the guardian or conservator by the court. (5) In the case of termination by the death of the ward or conservatee, all reasonable expenses incurred prior to the discharge of the guardian or conservator by the court for the custody and conservation of the estate and its delivery to the personal representative of the estate of the deceased ward or conservatee or in making other disposition of the estate as provided for by law. (b) The guardian or conservator shall not be compensated from the estate for any costs or fees that the guardian or conservator incurred in unsuccessfully opposing a petition, or other request or action, made by or on behalf of the ward or conservatee, unless the court determines that the opposition was made in good faith, based on the best interests of the ward or conservatee. SEC. 26. Section 2640 of the Probate Code is amended to read: 2640. (a) At any time after the filing of the inventory and appraisal, but not before the expiration of 90 days from the issuance of letters or any other period of time as the court for good cause orders, the guardian or conservator of the estate may petition the court for an order fixing and allowing compensation to any one or more of the following: (1) The guardian or conservator of the estate for services rendered to that time. (2) The guardian or conservator of the person for services rendered to that time. (3) The attorney for services rendered to that time by the attorney to the guardian or conservator of the person or estate or both. (b) Notice of the hearing shall be given for the period and in the manner provided in Chapter 3 (commencing with Section 1460) of Part 1. (c) Upon the hearing, the court shall make an order allowing (1) any compensation requested in the petition the court determines is just and reasonable to the guardian or conservator of the estate for services rendered or to the guardian or conservator of the person for services rendered, or to both, and (2) any compensation requested in the petition the court determines is reasonable to the attorney for services rendered to the guardian or conservator of the person or estate or both. The compensation allowed to the guardian or conservator of the person, the guardian or conservator of the estate, and to the attorney may, in the discretion of the court, include compensation for services rendered before the date of the order appointing the guardian or conservator. The compensation allowed shall thereupon be charged to the estate. Legal services for which the attorney may be compensated include those services rendered by any paralegal performing legal services under the direction and supervision of an attorney. The petition or application for compensation shall set forth the hours spent and services performed by the paralegal. (d) Notwithstanding the provisions of subdivision (c), the guardian or conservator shall not be compensated from the estate for any costs or fees that the guardian or conservator incurred in unsuccessfully opposing a petition, or other request or action, made by or on behalf of the ward or conservatee, unless the court determines that the opposition was made in good faith, based on the best interests of the ward or conservatee. SEC. 27. Section 2640.1 of the Probate Code is repealed. SEC. 28. Section 2641 of the Probate Code is amended to read: 2641. (a) At any time permitted by Section 2640 and upon the notice therein prescribed, the guardian or conservator of the person may petition the court for an order fixing and allowing compensation for services rendered to that time. (b) Upon the hearing, the court shall make an order allowing any compensation the court determines just and reasonable to the guardian or conservator of the person for services rendered. The compensation allowed to the guardian or conservator of the person may, in the discretion of the court, include compensation for services rendered before the date of the order appointing the guardian or conservator. The compensation allowed shall thereupon be charged against the estate. (c) The guardian or conservator shall not be compensated from the estate for any costs or fees that the guardian or conservator incurred in unsuccessfully opposing a petition, or other request or action, made by or on behalf of the ward or conservatee, unless the court determines that the opposition was made in good faith, based on the best interests of the ward or conservatee. SEC. 29. Section 2850 of the Probate Code is amended to read: 2850. (a) (1) The Department of Consumer Affairs shall maintain a Statewide Registry and shall make all information in the registry available to the court for any purpose, but shall otherwise keep this information confidential, except as provided in this section. (2) (A) On request, the registry shall disclose to the public the following: (i) Whether an individual is or is not registered with the Statewide Registry. (ii) Whether the Statewide Registry contains any information filed pursuant to subdivision (d) for a specific individual regarding his or her duties as a trustee. (iii) The educational background and professional experience of an individual registered with the Statewide Registry. (B) Upon written request by a member of the public, the registry shall provide access to any information filed with the registry pursuant to subdivision (d) regarding a trustee. (3) Except as otherwise provided in Section 2854, all persons who wish to serve as a trustee or who are currently serving as a trustee shall register with the Statewide Registry and shall reregister every three years thereafter. "Registration" means the filing of a declaration pursuant to subdivision (b). (b) All trustees required to file information with the clerk of the court pursuant to Section 2340 or required to register pursuant to this chapter shall file a signed declaration with the Statewide Registry. A person who signs a declaration pursuant to this subdivision asserting the truth of any material matter which he or she knows to be false is guilty of a misdemeanor punishable by imprisonment for up to one year in a county jail, or a fine of not more than two thousand dollars ($2,000), or both that fine and imprisonment. The declaration shall contain the following information: (1) Full name. (2) Professional name, if different from paragraph (1). (3) Business address. (4) Business telephone number or numbers. (5) His or her educational background and professional experience, including verification of any college or graduate degree claimed. (6) The names of the current trusts administered by the trustee. (7) The aggregate dollar value of all assets currently under the trustee's supervision. (8) Whether he or she has ever been removed for cause or resigned as trustee in a specific case, the circumstances of that removal or resignation, and the case names, court locations, and case numbers. (c) The Department of Consumer Affairs may charge a reasonable fee to persons registering and reregistering with the Statewide Registry for the cost of that registration. The Department of Consumer Affairs shall issue a certificate of registration to each registrant. (d) If a court makes a finding that a trustee has not properly performed the duties of a trustee, and that finding results in an order for a surcharge for other than nominal damages or for removal of the trustee, the court clerk shall forward a copy of the court's findings and order to the Statewide Registry, which shall include this information in the file of that trustee. SEC. 30. Section 2851 of the Probate Code is amended to read: 2851. (a) A court may not appoint a person as a trustee unless that person, if required to register under Section 2850, is registered with the Statewide Registry. (b) A trustee required to register under Section 2850 who has not registered with the Statewide Registry on or before January 1, 2005, shall be removed as a trustee by the court, unless the court finds reasonable grounds not to do so. If the court finds reasonable grounds exist for not removing the trustee for failing to register on or before January 1, 2005, the court shall order the trustee to register with the Statewide Registry within 90 days of the court's order and shall remove the trustee if the trustee has failed to register at the end of the 90-day period. (c) In appointing, continuing the appointment, or removing a person as trustee, the court shall examine and consider the information contained in the Statewide Registry for that person. The information contained in the Statewide Registry shall be made available to the court for this purpose, but shall otherwise be kept confidential, except as provided by law. SEC. 31. Section 2852 of the Probate Code is amended to read: 2852. (a) Any person required to register under Section 2850 who serves as a trustee without being registered with the Statewide Registry, who commits fraud in registering, who falsely asserts that he or she is registered, or who makes false claims or representations as to the nature of his or her file contained in the registry, shall be subject to a civil penalty in the amount of two hundred dollars ($200) for the first violation and a civil penalty in the amount of five hundred dollars ($500) for each subsequent violation, to be assessed and collected in a civil action brought by the Department of Consumer Affairs. All civil penalties collected shall be deposited in the General Fund. A person who lawfully delays registration pursuant to subdivision (b) of Section 2851 shall not be subject to a civil penalty for serving as a trustee without being registered until the time that subdivision (b) of Section 2851 authorizes his or her removal for failure to register. (b) Any court that removes a trustee for cause, and any court that has accepted the resignation of a trustee, shall notify the Statewide Registry of that removal or resignation and the reason therefor. The courts shall consider that information prior to the appointment of a person or entity pursuant to a subsequent petition for appointment as trustee. SEC. 32. Section 2853 of the Probate Code is amended to read: 2853. Notwithstanding any other provision of this chapter, in cases of urgency, where circumstances and justice warrant the appointment of a trustee and time is limited, a court may appoint a person as trustee without consulting the Statewide Registry or requiring registration prior to appointment. SEC. 33. Section 2854 of the Probate Code is amended to read: 2854. (a) This chapter does not apply to any trustee when the person is related to the trustor by blood, marriage, adoption, registered domestic partnership, or a relationship that satisfies the requirements of subdivision (a) and paragraphs (1) to (4), inclusive, and paragraph (6) of subdivision (b) of Section 297 of the Family Code. (b) This chapter does not apply to any trustee who is serving for the benefit of not more than three people or not more than three families, or a combination of people or families that does not total more than three. The number of trust beneficiaries does not count for the purposes of calculating if a trustee falls within this exclusion. A trust excluded under subdivision (a) or (b) does not count for the purpose of calculating if a trustee falls within this exclusion. For the purposes of this subdivision, family means people who are related by blood, marriage, adoption, registered domestic partnership, or a relationship that satisfies the requirements of subdivision (a) and paragraphs (1) to (4), inclusive, and paragraph (6) of subdivision (b) of Section 297 of the Family Code. (c) This chapter does not apply to a trustee who is any of the following: (1) Trust companies, as defined in Section 83. (2) FDIC-insured institutions, their holding companies, subsidiaries, or affiliates. For the purposes of this paragraph, "affiliate" means any entity that shares an ownership interest with or that is under the common control of, the FDIC-insured institution. (3) Employees of any entity listed in paragraph (1) or (2) while serving as trustees in the scope of their duties. SEC. 34. Section 2855 of the Probate Code is amended to read: 2855. It is the intent of the Legislature that both: (a) Counties that provide for registration of trustees continue to do so, and that the Statewide Registry not replace county registration. (b) Courts maintain oversight over the complaint process in order to safeguard the reputations of trustees against unfounded complaints. (c) A trustee who is reregistering with the Statewide Registry, after having met all the requirements stated in Section 2850, not be required to reverify previously claimed college or graduate degrees. SEC. 35. Section 2920 of the Probate Code is amended to read: 2920. (a) If any person domiciled in the county requires a guardian or conservator and there is no one else who is qualified and willing to act and whose appointment as guardian or conservator would be in the best interest of the person: (1) The public guardian shall apply for appointment as guardian or conservator of the person, the estate, or the person and estate if the criteria for making that appointment have been met. On or beforeJanuaryJuly 2007, the Judicial Council shall develop the criteria. (2) The public guardian shall apply for appointment as guardian or conservator of the person, the estate, or the person and estate, if the court so orders. The court may make an order under this subdivision on motion of an interested person or on the court's own motion in a pending proceeding or in a proceeding commenced for that purpose. The court shall not make an order under this subdivision except after notice to the public guardian for the period and in the manner provided in Chapter 3 (commencing with Section 1460) of Part 1, consideration of the alternatives, and a determination by the court that the appointment is necessary. The notice and hearing under this subdivision may be combined with the notice and hearing required for appointment of a guardian or conservator. (b) The public guardian may apply for appointment as guardian or conservator of the person, the estate, or both on behalf of any person domiciled in the county who requires a guardian or conservator and who has assets of no more than____ dollars ($_____).an amount to be determined by the Judicial Council on or before July 1, 2007. (c) The public guardian shall personally visit each proposed conservatee or ward within 48 hours of receiving notice of the need for assistance. SEC. 36. Division 8.7 (commencing with Section 9800) is added to the Welfare and Institutions Code, to read: DIVISION 8.7. Conservatorship Ombudsman 9800. There is within the California Department of Aging an Office of the Conservatorship Ombudsman. 9801. (a) The office shall be under the direction of a chief executive officer who shall be known as the Conservatorship Ombudsman. The Conservatorship Ombudsman shall be appointed by the director and shall report directly to the director. He or she shall devote his or her entire time to the duties of his or her position, and shall receive the salary otherwise provided by law. (b) Any vacancy occurring in the position of Conservatorship Ombudsman shall be filled in the same manner as the original appointment. Whenever the Conservatorship Ombudsman dies, resigns, becomes ineligible to serve for any reason, or is removed from office, the director shall appoint an acting Conservatorship Ombudsman within 30 days, who shall serve until the appointment and qualification of the Conservatorship Ombudsman's successor, but in no event longer than four months from the occurrence of the vacancy. The acting Conservatorship Ombudsman shall exercise during this period all the powers and duties of the Conservatorship Ombudsman pursuant to this chapter. 9802. (a) The Conservatorship Ombudsman shall possess at least a bachelor's degree, and have a minimum of five years' professional experience that shall include at least fiduciary asset management and at least three of the following four areas: (1) Gerontology, long-term care, or other relevant social services or health services programs. (2) The legal system and the legislative process. (3) Dispute or problem resolution techniques, including investigation, mediation, and negotiation. (4) Organizational management and program administration. (b) The professional experience described inparagraphsubdivision (a) requires any reasonable combination of the fields described in thatparagraphsubdivision for a total of five years, and does not require five years' experience in each area. At the discretion of the director, a master's or doctorate degree relevant to a field described inparagraphsubdivision (a) may be substituted for one or two years, respectively, of professional experience. However, the applicant's professional experience and field of study leading to the master's or doctorate degree shall, nevertheless, include all of the fields described inparagraphsubdivision (a). 9803. (a) Upon request of the office, the Attorney General shall represent the office or the department and the state in litigation concerning affairs of the office, unless the Attorney General represents another state agency, in which case the agency or the office shall be authorized to employ other counsel. (b) The Conservatorship Ombudsman may employ technical experts and other employees that, in his or her judgment, are necessary for the conduct of the business of the office. 9804. The office may solicit and receive funds, gifts, and contributions to support the operations and programs of the office. The office may form a foundation eligible to receive tax-deductible contributions to support the operations and programs of the office. The office shall not solicit or receive any funds, gifts, or contributionswhereif the solicitation or receipt would jeopardize the independence and objectivity of the office. 9805. (a) No representative of the office shall be held liable for good faith performance of responsibilities under this chapter. (b) No discriminatory, disciplinary, or retaliatory action shall be taken against any person for any communication made, or information given or disclosed, to aid the office in carrying out its duties and responsibilities, unless the same was done maliciously or without good faith. This subdivision is not intended to infringe on the rights of the employer to supervise, discipline, or terminate an employee for other reasons. (c) All communications by a representative of the office, if reasonably related to the requirements of that individual's responsibilities under this chapter and done in good faith, shall be privileged, and that privilege shall serve as a defense to any action in libel or slander. (d) Any representative of the office shall be exempt from being required to testify in court as to any confidential matters, except as the court may deem necessary to enforce the provisions of this chapter. 9806. The department shall be responsible for establishing a statewide uniform reporting system to collect and analyze data relative to complaints regarding conservatorships for the purpose of identifying and resolving significant problems. The department shall submit the data to the Department of Consumer Affairs which is responsible for regulating conservators. 9807. (a) The office shall investigate and seek to resolve complaints and concerns communicated by, or on behalf of, conservatees. Complaint investigation shall be done in an objective manner to ascertain the pertinent facts. (b) At the conclusion of any investigation of a complaint, the findings shall be reported to the complainant and to the licensing board established pursuant to Section 6504 of the Business and Professions Code. If the office does not investigate a complaint, the complainant shall be notified in writing of the decision not to investigate and the reasons for the decision. 9808. The Conservatorship Ombudsman shall have access to any record of a state or local government agency that is necessary to carry out his or her responsibilities under this chapter, including records rendered confidential. 9809. All records and files of the office relating to any complaint or investigation made pursuant to this chapter and the identities of complainants, witnesses, patients, or residents shall remain confidential, unless disclosure is required by court order, or release of the information is to a law enforcement agency, public protective service agency, or a licensing or certification agency in a manner consistent with federal laws and regulations.