BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 680
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          ASSEMBLY THIRD READING
          AB 680 (Hall)
          As Amended May 19, 2009
          Majority vote 

           JUDICIARY           8-2                                         
           
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          |Ayes:|Feuer, Brownley, Evans,   |     |                          |
          |     |Jones, Krekorian, Lieu,   |     |                          |
          |     |Monning, Nielsen          |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Tran, Knight              |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Increases, by amounts ranging from $5 to $20, various  
          fees for serving, executing, and processing required court  
          notices, writs, orders, and other services provided by county  
          sheriffs and marshals, generally effective 2011.  Specifically,  
           this bill  :   

          1)Increases to $35 the current amount of $30 for the following  
            fees:

             a)   The fee for serving or executing any process or notice  
               required by law or the litigants to be served;

             b)   The fee for service of a summons, complaint, and  
               prejudgment claim of right to possession, in an action for  
               unlawful detainer;

             c)   The fee for serving, executing, or processing a writ of  
               attachment, writ of execution, writ of sale, or order on  
               real estate, as to the initial service or posting of a  
               continuous unbroken parcel or tract, and the fee for  
               serving a record owner other than the defendant;

             d)   The fee for preparing and posting the initial notice of  
               personal property sale under a writ of attachment,  
               execution, or sale or order of court;

             e)   The fee for making a levy on personal property already  
               in possession of the officer who is holding it under  








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               attachment in the same action;

             f)   The fee for executing and delivering any other  
               instrument (other than a certificate or deed of sale; deed  
               or certificate of redemption);

             g)   The fee for subpoenaing a witness;

             h)   The fee for maintaining custody of property under levy  
               by the use of a keeper, for each day custody is maintained  
               after the first day; and,

             i)   The fee for making a not found return on specified  
               documents required to be served, certifying that the person  
               or property cannot be found at the given address.  

          2)Increases to $140 the current $120 fee for keeping and caring  
            for property under a writ of attachment, execution,  
            possession, or sale when the sheriff is necessarily employed  
            for any eight-hour period or any part thereof.  Further  
            provides that the same fee may be collected for any additional  
            sheriff who performs keeping services that are required, but  
            prohibits any individual sheriff from receiving more than $280  
            (double the fee amount) during any 24-hour period when so  
            employed as a keeper.  
           
          3)Provides that the sheriff keeping or caring for property under  
            a writ of attachment, execution, possession, or sale shall  
            receive $50 when a levying officer prepares a not-found return  
            on specified process or notice required to be served.  

          4)Increases to $15, from a current amount of $10, the amount of  
            any fee collected by the sheriff's civil division or marshal  
            for performing specified services that must be deposited in a  
            special fund in the county treasury.  

          5)Increases to $35 the current $28 fee for cancellation of  
            service or execution of any process or notice prior to its  
            completion.  

          6)Increases the fees paid by the moving party for processing a  
            warrant for the arrest of a witness who fails to appear  
            pursuant to a subpoena or a court order, as provided:









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             a)   An increase to $35, from the current $30 fee, to receive  
               and process the warrant;

             b)   An increase to $35, from the current $28 fee, to cancel  
               the service of the warrant;

             c)   An increase to $75, from the current $60 fee, if the  
               sheriff, using due diligence, is unable to find the person  
               at the address specified on the document to be served; and,

             d)   An increase to $85, from the current $75 fee, to arrest  
               the person.  

          7)Repeals the existing $50 fee for serving or executing a bench  
            warrant arising from an order of appearance, as specified.  

          8)Increases to $12 the current processing fee of $10 that is  
            assessed for each disbursement of money collected under a writ  
            of attachment, execution, possession, or sale, subject to  
            existing guidelines for collection and handling.  

          9)Increases to $17 the current $15 fee that is assessed by the  
            sheriff or marshal for certification of correctable violations  
            of the Vehicle Code on each citation that requires inspection  
            for proof of correction.  

          10)   Provides that the operative date of all of these proposed  
            fee increases, with the exception of the processing fee that  
            is assessed for each disbursement of money collected (Section  
            8 of the bill), will be January 1, 2011.

          11)   Requires the levying officer, in the case of a levy under  
            a writ to enforce a judgment, to adjust the amount of daily  
            interest entered on the writ to reflect the partial  
            satisfactions where such amounts collected do not fully  
            satisfy the money judgment.

          12)   Requires the levying officer, in the case where proceeds  
            after a sale or collection are received in more than one  
            payment during a 30-day period, to pay the persons entitled to  
            the proceeds not later than 10 days after the expiration of  
            the 30-day period.

          13)   Authorizes a judgment creditor to file an ex-parte  








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            application for an order directing the levying officer who to  
            show cause why relief should not be granted as provided in  
            Government Code Section 26680, when the levying officer has  
            failed to pay the judgment  creditor proceeds to which he is  
            entitled within 10 days of written demand.

          14)    Provides that if the levying officer pays all proceeds to  
            the judgment creditor no later than 10 days prior to the  
            hearing specified by the order, the judgment creditor shall  
            notify the court of full payment no later than three days  
            prior to the hearing and the court shall withdraw the order  
            and vacate the hearing.

          15)   Provides that if the court finds the facts alleged in the  
            ex-parte application filed by the judgment creditor to be  
            knowingly false or made in bad faith, the court may award  
            costs and reasonable attorney fees to the levying officer.

          16)   Exempts claims made against a levying officer for failure  
            to promptly pay proceeds from a sale or collection to the  
            person entitled to those proceeds from the requirement that a  
            claim for money or damages be filed with the local public  
            entity.

          17)   Provides that, if on demand the sheriff neglects or  
            refuses to pay over to the person entitled any money which  
            comes into his hands by virtue of his office, after deducting  
            all legal fees, the person may recover costs, including  
            reasonable attorney fees, in addition to the amount thereof,  
            25% damages, and interest at the rate of 10% per month from  
            the time of demand.

           FISCAL EFFECT  :  None
           
          COMMENTS  :  This bill seeks to increase, by amounts ranging from  
          $5 to $20, various fees for services provided by county sheriffs  
          and marshals.  The increases proposed by this bill apply to fees  
          that a county sheriff's office is authorized to collect for  
          serving, executing, and processing required court notices,  
          writs, orders, and other process, among other things.  In order  
          to address opposition concerns, this bill clarifies certain  
          procedures followed by sheriffs in collecting funds from  
          judgment debtors and paying the proceeds to judgment creditors  
          entitled to these funds.








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          The bill's sponsor, the Los Angeles County Sheriff's Department,  
          contends that this bill is needed to address rising costs of  
          business, stating:

               Since 2000, the cost of doing business for the  
               Sheriff's Department has increased dramatically.   
               Gas prices alone have skyrocketed and many of our  
               personnel working in our civil section are using  
               vehicles in the field serving process, notices, and  
               conducting evictions.  Additionally personnel costs,  
               such as pay and benefits and other administrative  
               costs, have also increased significantly. Based on  
               the increased costs to conduct business, a moderate  
               increase to some of the fees would greatly enhance  
               [Sheriff Departments'] ability to continue to  
               provide the same high level of service to the  
               community. Most of these fees have not been  
               increased since 2000.

          A review of the different fees that this bill proposes to  
          increase shows that many of the fees have not been increased  
          since passage of AB 1768 (Steinberg), Chapter 629, Statutes of  
          2000.  According to the Consumer Price Index (CPI), a $30.00 fee  
          in 2000 would equal $37.06 at present, adjusting for inflation.   
          In that light, the set of fee increases proposed here appear to  
          be reasonably in line with inflation as measured by the CPI.   
          Nevertheless, this bill must be viewed in context with other fee  
          increases for court users - most notably those sought by the  
          courts for first-paper civil filings, both by the Uniform Civil  
          Fees measure in 2005 (AB 145 (Budget), Chapter 75) which  
          increased these fees significantly in some instances, and then  
          again most recently last year by SB 1407 (Perata), Chapter 311,  
          Statutes of 2008, which further increased these fees by $25 to  
          $30, along with increases in the fees for appeals, applications  
          to appear pro hac vice (for out-of-state lawyers), as well as  
          much larger increases for probate filings.  SB 1407 also imposed  
          an assessment of $30 on every felony or misdemeanor criminal  
          conviction and $35 for every criminal infraction, including  
          traffic offenses, but not including parking offenses, and  
          increased the fee applied to corrections of violations of  
          license, registration or mechanical requirements of the Vehicle  
          Code and raised the amount when a parking penalty, fine, or  
          forfeiture is imposed, as well as the fee for a person ordered  








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          to traffic violator school for a moving violation.  In light of  
          the fee increase for these other worthy purposes, and to provide  
          for an orderly schedule for the future, the effective date of  
          most of the increases proposed in this bill will be delayed one  
          year until January 1, 2011.

          Many of the fees that would be increased by this bill are for  
          services that others, in addition to county sheriffs, are  
          authorized to perform.  For example, serving or executing any  
          process or notice required to be served can, and often is,  
          accomplished by hiring private companies or individuals,  
          presumably at the market rate for such services.  In that  
          respect, individuals who need that type of service to be  
          performed can decide whether to hire the sheriff's department or  
          pursue other means.  Some of the fees, however, are not as  
          avoidable.  For example, under existing law a processing fee of  
          $10 is assessed for each disbursement of money collected under a  
          writ of attachment, execution, possession, or sale, subject to  
          existing guidelines for collection and handling.  A party who  
          has collected a judgment and wishes to have the money disbursed  
          has no option other than to pay the processing fee.  Under this  
          bill, the amount of the processing fee rises to $12.
           
           Under Government Code Section 26720.5, in any case in which the  
          litigant is permitted by the court to proceed in forma pauperis  
          under rules adopted by the Judicial Council pursuant to  
          Government Code Section 68631, the fees identified by this bill  
          shall be waived.  In other words, under California Rules of  
          Court 3.52 and 3.61, payment of the sheriff's and marshal's fees  
          in question  must  be waived for a litigant who can demonstrate,  
          under existing standards of eligibility in the Government Code,  
          that he or she cannot afford to pay such fees.      

          This bill does not affect the right of a person to petition the  
          court for a fee waiver to be exempt from paying the fees,  
          although any broad set of fee increases may lead to a  
          corresponding increase in the number of people petitioning the  
          court for a fee waiver because they cannot afford the increased  
          fee amounts.


           Analysis Prepared by  :   Kevin Baker and Anthony Lew / JUD. /  
          (916) 319-2334 









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                                                                FN: 0000841