BILL NUMBER: AB 1459	CHAPTERED
	BILL TEXT

	CHAPTER  618
	FILED WITH SECRETARY OF STATE  OCTOBER 6, 2005
	APPROVED BY GOVERNOR  OCTOBER 6, 2005
	PASSED THE ASSEMBLY  SEPTEMBER 7, 2005
	PASSED THE SENATE  SEPTEMBER 6, 2005
	AMENDED IN SENATE  AUGUST 30, 2005
	AMENDED IN SENATE  AUGUST 15, 2005
	AMENDED IN SENATE  JULY 6, 2005
	AMENDED IN SENATE  JUNE 21, 2005
	AMENDED IN ASSEMBLY  MAY 18, 2005
	AMENDED IN ASSEMBLY  MAY 11, 2005
	AMENDED IN ASSEMBLY  MAY 4, 2005
	AMENDED IN ASSEMBLY  APRIL 19, 2005

INTRODUCED BY   Assembly Member Canciamilla
   (Principal coauthor: Senator Simitian)

                        FEBRUARY 22, 2005

   An act to amend Sections 116.240, 116.610, and 116.940 of, and to
add Sections 116.221 and 116.222 to, the Code of Civil Procedure,
relating to small claims court.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1459, Canciamilla  Small claims court: jurisdiction.
   (1) Existing law specifies that the jurisdiction of the small
claims court includes various actions in which the demand does not
exceed $5,000, with certain exceptions.
   This bill would increase the small claims court jurisdiction over
actions brought by a natural person, if the amount does not exceed
$7,500, with specified exceptions. The bill would also require, in
small claims court actions to enforce the payment of a debt, that the
statement of calculation of liability separately state the original
debt, and other payments to the debt, as specified.
   (2) Existing law authorizes small claims court cases to be heard
by temporary judges who are members of the State Bar, and who are
sworn and empowered to act in this capacity.
   On and after July 1, 2006, this bill would require temporary
judges, prior to serving in small claims court, and every 3 years
thereafter, to take a course of study, offered by the courts on
ethics and substantive law under rules adopted by the Judicial
Council, covering specified state, federal, and local laws, with
assistance from the Department of Consumer Affairs, if fiscally able
to provide that assistance.
   (3) Existing law requires each small claims court advisory
service, offered without charge to litigants and potential litigants,
to provide individual personal advisory services, in person or by
telephone, and by any other means reasonably calculated to provide
timely and appropriate assistance.
   This bill would require the topics covered by individual personal
advisory services to include preparation of small claims court
filings, procedures, including procedures related to the conduct of
the hearing, and information on the collection of small claims court
judgments.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) The Legislature finds and declares that the quality
of and access to justice in small claims court in California varies
widely from jurisdiction to jurisdiction. The small claims court
system should be improved in the following ways:
   (1) Commissioners and temporary judges adjudicate many complex
issues including, but not limited to, consumer law, rent deposit law,
tort law, and contract law. In a report commissioned by the
Administrative Office of the Courts, entitled the "California Three
Track Civil Litigation Study," Policy Studies, Incorporated reported
that paid court commissioners, "see the full panoply of issues raised
in small claims cases, and part of their job is to become
knowledgeable in the areas of law likely to arise in small claims
court. Further, they have the time and duty to research issues of law
likely to arise in small claims court... (and those) that arise with
which they are not familiar." The potential knowledge gap between
temporary judges and commissioners should be narrowed through
increased use of commissioners and the use of well-trained, qualified
temporary judges in small claims court in order to ensure an
improved ability to deliver justice.
   (2) For advisers, improvements need to be made in the availability
of in-person assistance, in the knowledge and experience of the
advisers, and in the advice being given or supervised by attorneys,
so that the assistance can include advice about how to present and
defend a claim.
   (3) Qualified interpreters are not available in many jurisdictions
in California. With the increasing linguistic diversity in
California's population in recent decades, the need for interpreter
services has grown proportionately.
   (b) (1) It is the intent of the Legislature to raise the
jurisdictional limit for natural persons only. The jurisdictional
increase in this act is limited to natural persons, and is subject to
other existing restrictions. It is the intent of the Legislature in
limiting the increase to natural persons that other forms of persons,
including, but not limited to, corporations, partnerships,
unincorporated associations, governmental entities, and any other
forms of persons as may now exist or may exist in the future, other
than individuals, do not qualify for the jurisdictional increase
under this act.
   (2) It is the intent of the Legislature that the jurisdictional
limit of subdivision (a) of Section 116.231 of the Code of Civil
Procedure and subdivision (c) of Section 116.220 of the Code of Civil
Procedure shall not be changed by this legislation.
   (3) It is the intent of the Legislature that jurisdictional limits
shall not be raised again, particularly with respect to individuals
as defendants, until services are funded at a level sufficient to
provide all of the following:
   (A) In-person advice from advisers who are legal professionals.
   (B)  Staffing levels that are adequate to meet the demand, and
also adequate to permit the small claims court advisory service to
provide services to both parties in a small claims court case without
conflicts of interest.
   (C) Professional, well-trained, compensated decisionmakers, in
small claims court in all counties in California, who meet standards
established by the Judicial Council.
   (4) It is the intent of the Legislature that temporary judges
should be well-trained and knowledgeable of state and federal
consumer laws, including, but not limited to, rent deposit law, the
state and federal Fair Debt Collection Practices Acts, the federal
Truth in Lending Act, the federal Fair Credit Billing Act, the
federal Electronic Fund Transfer Act, tort law, online purchasing law
and other contract law, defenses to contract claims, defenses to
debts, and other laws determined by the Judicial Council and the
courts to be important in the adjudication of small claims cases.
  SEC. 2.  Section 116.221 is added to the Code of Civil Procedure,
to read:
   116.221.  In addition to the jurisdiction conferred by Section
116.220, the small claims court has jurisdiction in an action brought
by a natural person, if the amount of the demand does not exceed
seven thousand five hundred dollars ($7,500), except for actions
otherwise prohibited by subdivision (c) of Section 116.220 or
subdivision (a) of Section 116.231.
  SEC. 3.  Section 116.222 is added to the Code of Civil Procedure,
to read:
   116.222.  If the action is to enforce the payment of a debt, the
statement of calculation of liability shall separately state the
original debt, each payment credited to the debt, each fee and charge
added to the debt, each payment credited against those fees and
charges, all other debits or charges to the account, and an
explanation of the nature of those fees, charges, debits, and all
other credits to the debt, by source and amount.
  SEC. 4.  Section 116.240 of the Code of Civil Procedure is amended
to read:
   116.240.  (a) With the consent of the parties who appear at the
hearing, the court may order a case to be heard by a temporary judge
who is a member of the State Bar, and who has been sworn and
empowered to act until final determination of the case.
   (b) Prior to serving as a temporary judge in small claims court,
on and after July 1, 2006, and at least every three years thereafter,
each temporary judge shall take the course of study offered by the
courts on ethics and substantive law under rules adopted by the
Judicial Council. The course shall include, but not be limited to,
state and federal consumer laws, landlord-tenant law along with any
applicable county specific rent deposit law, the state and federal
Fair Debt Collection Practices Acts, the federal Truth in Lending
Act, the federal Fair Credit Billing Act, the federal Electronic Fund
Transfer Act, tort law, and contract law, including defenses to
contracts and defenses to debts. On substantive law, the courts may
receive assistance from the Department of Consumer Affairs, to the
extent that the department is fiscally able to provide that
assistance.
  SEC. 5.  Section 116.610 of the Code of Civil Procedure is amended
to read:
   116.610.  (a) The small claims court shall give judgment for
damages, or equitable relief, or both damages and equitable relief,
within the jurisdictional limits stated in Sections 116.220 and
116.231, and may make any orders as to time of payment or otherwise
as the court deems just and equitable for the resolution of the
dispute.
   (b) The court may, at its discretion or on request of any party,
continue the matter to a later date in order to permit and encourage
the parties to attempt resolution by informal or alternative means.
   (c) The judgment shall include a determination whether the
judgment resulted from a motor vehicle accident on a California
highway caused by the defendant's operation of a motor vehicle, or by
the operation by some other individual, of a motor vehicle
registered in the defendant's name.
   (d) If the defendant has filed a claim against the plaintiff, or
if the judgment is against two or more defendants, the judgment, and
the statement of decision if one is rendered, shall specify the basis
for and the character and amount of the liability of each of the
parties, including, in the case of multiple judgment debtors, whether
the liability of each is joint or several.
   (e) If specific property is referred to in the judgment, whether
it be personal or real, tangible or intangible, the property shall be
identified with sufficient detail to permit efficient implementation
or enforcement of the judgment.
   (f) In an action against several defendants, the court may, in its
discretion, render judgment against one or more of them, leaving the
action to proceed against the others, whenever a several judgment is
proper.
   (g) (1) The prevailing party is entitled to the costs of the
action, including the costs of serving the order for the appearance
of the defendant.
   (2) Notwithstanding paragraph (1) of this subdivision and
subdivision (b) of Section 1032, the amount of the small claims court
fee paid by a party pursuant to subdivision (c) of Section 116.230
that exceeds the amount that would have been paid if the party had
paid the fee pursuant to subdivision (b) of Section 116.230 shall not
be recoverable as costs.
   (h) When the court renders judgment, the clerk shall promptly
deliver or mail notice of entry of the judgment to the parties, and
shall execute a certificate of personal delivery or mailing and place
it in the file.
   (i) The notice of entry of judgment shall be on a form approved or
adopted by the Judicial Council.
  SEC. 6.  Section 116.940 of the Code of Civil Procedure is amended
to read:
   116.940.  (a) Except as otherwise provided in this section or in
rules adopted by the Judicial Council, which are consistent with the
requirements of this section, the characteristics of the small claims
advisory service required by Section 116.260 shall be determined by
each county in accordance with local needs and conditions.
   (b) Each advisory service shall provide the following services:
   (1) Individual personal advisory services, in person or by
telephone, and by any other means reasonably calculated to provide
timely and appropriate assistance. The topics covered by individual
personal advisory services shall include, but not be limited to,
preparation of small claims court filings, procedures, including
procedures related to the conduct of the hearing, and information on
the collection of small claims court judgments.
   (2) Recorded telephone messages may be used to supplement the
individual personal advisory services, but shall not be the sole
means of providing advice available in the county.
   (3) Adjacent counties may provide advisory services jointly.
   (c) In any county in which the number of small claims actions
filed annually is 1,000 or less as averaged over the immediately
preceding two fiscal years, the county may elect to exempt itself
from the requirements set forth in subdivision (b). This exemption
shall be formally noticed through the adoption of a resolution by the
board of supervisors. If a county so exempts itself, the county
shall nevertheless provide the following minimum advisory services in
accordance with rules adopted by the Judicial Council:
   (1) Recorded telephone messages providing general information
relating to small claims actions filed in the county shall be
provided during regular business hours.
   (2) Small claims information booklets shall be provided in the
court clerk's office of each superior court, the county administrator'
s office, other appropriate county offices, and in any other location
that is convenient to prospective small claims litigants in the
county.
   (d) The advisory service shall operate in conjunction and
cooperation with the small claims division, and shall be administered
so as to avoid the existence or appearance of a conflict of interest
between the individuals providing the advisory services and any
party to a particular small claims action or any judicial officer
deciding small claims actions.
   (e) Advisers may be volunteers, and shall be members of the State
Bar, law students, paralegals, or persons experienced in resolving
minor disputes, and shall be familiar with small claims court rules
and procedures. Advisers may not appear in court as an advocate for
any party.
   (f) Advisers, including independent contractors, other employees,
and volunteers have the immunity conferred by Section 818.9 of the
Government Code with respect to advice provided as a public service
on behalf of a court or county to small claims litigants and
potential litigants under this chapter.