BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 680|
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                                 THIRD READING


          Bill No:  AB 680
          Author:   Hall (D)
          Amended:  6/22/09 in Senate
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  4-1, 7/7/09
          AYES:  Corbett, Harman, Florez, Leno
          NOES:  Walters

           ASSEMBLY FLOOR  :  64-13, 5/28/09 - See last page for vote


           SUBJECT  :    Local government:  fees and judgments

           SOURCE  :     Los Angeles County Sheriffs Department


           DIGEST  :    This bill revises several provisions relating to  
          the collection of funds from judgment debtors and creates  
          an ex-parte application for relief when a levying officer  
          has not paid funds to a person entitled to a money  
          judgment, and exempts those actions from the Tort Claims  
          Act.

           ANALYSIS  :    Existing law prescribes the amounts of fees  
          that may be charged for various services performed by  
          county sheriffs and marshals.  (Government Code Section  
          26720 et seq.)

          This bill, effective July 1, 2011, increases the following  
          fees from $30 to $35:

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          1.The fee for serving or executing any process or notice.   
            (Government Code Section 26721.)

          2.The fee for service of a summons, complaint, or  
            prejudgment claim of right to possession in an action for  
            unlawful detainer.  (Government Code Section 26721.1.)

          3.The fee for serving, executing, or processing a writ of  
            attachment, writ of execution, writ of sale, order on  
            real estate, and the fee for serving a record owner other  
            than the defendant.  (Government Code Section 26725.)

          4.The fee for preparing and posting the initial notice of  
            personal property sale under a writ of attachment,  
            execution, sale, or order of court.  (Government Code  
            Section 26728.)

          5.The fee for making a levy on personal property already in  
            possession of the officer who is holding it under  
            attachment in the same action.  (Government Code Section  
            26734.)

          6.The fee for executing and delivering any other instrument  
            (other than a certificate or deed of sale; deed or  
            certificate of redemption).  (Government Code Section  
            26742.)

          7.The fee for subpoenaing a witness.  (Government code  
            Section 26743.)

          8.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.  (Government Code Section 26726(b).)

          9.The fee for making a not found return on specified  
            documents required to be served, and certifying that the  
            person or property cannot be found at the given address.   
            (Government Code Section 26738.)

          This bill, effective January 1, 2011, increases the fee for  
          keeping and caring for property under a writ of attachment,  
          execution, possession, or sale from $120 to $140, when  
          employed for any eight-hour period or any part thereof.   
          This bill permits that increased fee to be charged by any  







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          additional sheriff who performs keeping services that are  
          required, and increases the maximum amount a sheriff may  
          receive in a 24-hour period from $240 to $380 (double the  
          fee amount).  (Government Code Section 26726(a).)

          This bill, effective January 1, 2011, increases the fee  
          that a keeper receives from $40 to $50, when, pursuant to  
          Government Code Section 26738, a levying officer prepares a  
          not-found return.  (Government Code Section 26726(c).)

          This bill, effective January 1, 2011, increases the fee for  
          cancellation of service, or execution of any process or  
          notice prior to its completion, from $28 to 436.   
          (Government Code Section 26736.)

          Existing law permits a court to issue a warrant for failure  
          to appear pursuant to a subpoena or failure to appear  
          pursuant to a court order, as an alternative to issuing a  
          warrant for contempt, if certain statutory requirements are  
          met.  (Code of Civil Procedure Section 1993.)  Existing law  
          prescribes the fees for processing a warrant pursuant to  
          Section 1993 that must be paid by the moving party.   
          (Government Code Section 26744.5.)

          This bill, effective January 1, 2011, increases those fees  
          as follows:

          1.$30 to $35 to receive and process a warrant.

          2.$28 to $35 to cancel the service of the warrants.

          3.$60 to $75 if, using due diligence, the sheriff is unable  
            to find the person at the address specified.

          4.$75 to $85 to arrest the person.

          Existing law provides that a $15 fee shall be assessed by  
          the sheriff or marshal for certification of correction on  
          each citation that requires inspection for proof of  
          correction, as specified.  (Government Code Section  
          26746.1.)

          This bill, effective January 1, 2011, increases that fee to  
          $17.







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          Existing law provides that $10 of any fee collected by the  
          sheriff's civil division or marshal for performing  
          specified services must be deposited in a special fund in  
          the county treasury.  (Government Code Section 26731.)

          This bill, effective January 1, 2011, increases that amount  
          to $15.

          Existing law authorizes the sheriff to charge a $10  
          processing fee for each disbursement of money collected  
          under a writ of attachment, execution, possession, or sale  
          (except child support collections).  (Government Code  
          Section 26746.)

          This bill increases that fee to $12.

          Existing law provides that if a writ is issued to enforce a  
          judgment, a levying officer must, among other things,  
          compute and collect the amount of additional interest  
          accrued on the principal amount of the judgment remaining  
          unsatisfied from the date of issuance of the writ until the  
          date interest ceases to accrue.  Existing law permits the  
          levying officer to adjust the amount of daily interest to  
          reflect partial satisfaction, if the amounts collected  
          periodically do not fully satisfy the money judgment.   
          (Code of Civil Procedure Section 685.050.)

          This bill, instead, requires the levying officer to make  
          that adjustment.

          Existing law requires a levying officer to distribute the  
          proceeds or collection of a money judgment by a writ of  
          execution in order of priority, including the judgment  
          creditor to (1) satisfy costs and interest accruing after  
          the issuance of the writ pursuant to which the sale or  
          collection is conducted, and (2) satisfy the amount due on  
          the judgment with costs and interest, as entered on the  
          writ.  (Code of Civil Procedure Section 701.810.)

          This bill clarifies that the distribution of proceeds or  
          collection from a money judgment to a judgment creditor  
          must be in the following order:  (1) any costs and interest  
          accruing on the judgment after issuance of the writ, as  







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          specified, and (2) the principal amount due on the judgment  
          with costs and interest as entered on the writ.

          Existing law authorizes a person entitled to a money  
          judgment held by a sheriff to make a demand for that money,  
          and if the sheriff neglects or refuses to pay over to that  
          person the amount owed, the person is authorized to recover  
          the amount owed, 25 percent damages, and interest at a rate  
          of 10 percent per month.  (Government code Section 26680.)   
          Those provisions apply to a levying officer if (1) the  
          officer fails to pay the proceeds or deposit them with the  
          court, as specified, (2) a person entitled to any of the  
          proceeds has filed a written demand for payment with the  
          levying officer, and (3) the levying officer has failed,  
          within 10 days after the demand is filed, to pay the person  
          that filed the demand the proceeds to which the person is  
          entitled.  (Code of Civil Procedure Section 701.820.)

          This bill authorizes a judgment creditor to file an  
          ex-parte application for an order directing the levying  
          officer to show cause why relief should not be granted  
          pursuant to Section 26680 of the Government Code, as  
          specified.

          This bill provides that if the court finds the facts  
          alleged in the ex-parte application to be knowingly false,  
          or made in bad faith, the court may award costs and  
          reasonable attorney fees to the levying officer.  This bill  
          similarly allows the recovery of costs, including  
          reasonable attorney's fees, under Section 26680.

          Existing law requires the levying officer to promptly  
          distribute the proceeds of a sale or collection of the  
          entitled parties, and authorizes the levying officer, if  
          proceeds are not to be received in one payment, to  
          accumulate proceeds received during a 30 day period and  
          make payment of those proceeds to the entitled parties  
          within 20 days of the end of the 30-day period. (Code of  
          Civil Procedure Section 701.820(c).)

          This bill requires the levying officer, if proceeds are not  
          received in one payment, to make payment of those proceeds  
          to the entitled persons within 10 days of the end of the  
          30-day period.







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          Existing law, the Tort Claims Act, provides that a claim  
          for money or damages against the state or a local public  
          entity must be presented in accordance with the terms of  
          the Act.  (Government Code Sections 905, 905.2.)  Existing  
          law provides that 13 specified claims against local public  
          entities are exempted from the Act, including claims under  
          the Revenue and Taxation Code, claims by public employees  
          regarding salary and benefits, and worker's compensation  
          claims.  (Government Code Section 905.O

          This bill exempts claims for the recovery of the money from  
          a levying officer pursuant to a money judgment under  
          Section 26680, as specified, from the Act.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  7/8/09)

          Los Angeles County Sheriff's Department (source)
          Association for Los Angeles Deputy Sheriffs
          Bill Lutze, Sheriff of Inyo County
          Brian Muller, Sheriff of Mariposa County
          California Association of Legal Support Professionals
          California Correctional Supervisors Organization
          California State Association of Counties
          Gregory Ahern, Sheriff of Alameda County
          Jeff Neves, Sheriff of El Dorado County
          Keith Royal, Sheriff of Nevada County
          Office of the Sheriff, San Bernardino County
          Peace Officers Research Association of California
          Perry L. Reniff, Sheriff of Butte County
          Phil Wowak, Acting Sheriff of Santa Cruz County
          Regional Council of Rural Counties
          Riverside Sheriffs' Association
          Sacramento County Sheriff's Department
          Santa Clara County Board of Supervisors
          Tom Bosenko, Sheriff of Shasta County
          Warren Rupe, Sheriff of Contra Costa County

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          "Under current law, a county sheriff's office is authorized  
          to collect various civil fees for serving, executing, and  







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          processing required court notices, writs, orders and other  
          services provided by a sheriff's order.

          "While the costs associated with these services has  
          increased dramatically in recent years, most of the civil  
          fees have remained stagnant since 2000.  Fuel prices alone  
          have skyrocketed and personnel costs, such as pay,  
          benefits, and other administrative costs have also  
          increased significantly."

          The Los Angeles County Sheriff's Department, sponsor of the  
          bill, states that "[b]ased on the increased costs to  
          conduct business, a moderate increase to some of the fees  
          would greatly enhance our ability to continue to provide  
          the same high level of service to the community.  The  
          proposed fee increased would range from $5 to $20 for the  
          various services provided by county sheriffs and marshals.

          Many of the proposed fees have not been increases since the  
          passage of AB 1768 (Steinberg), chapter 629, Statutes of  
          2000, and generally reflect their present amount adjusted  
          for inflation.  (For reference, the Bureau of Labor  
          Statistics' CPI inflation calculator states that $30 in  
          2000 is the equivalent of $37.26 today.)  The numerous  
          sections for which a $30 fee would be increased to $35 to  
          reflect that change in value due to inflation.


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Arambula, Beall, Bill Berryhill, Tom  
            Berryhill, Blakeslee, Block, Blumenfield, Brownley,  
            Buchanan, Caballero, Charles Calderon, Carter, Chesbro,  
            Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,  
            Furutani, Galgiani, Gilmore, Hall, Hayashi, Hernandez,  
            Hill, Huber, Huffman, Jones, Krekorian, Lieu, Bonnie  
            Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,  
            Nielsen, John A. Perez, V. Manuel Perez, Portantino,  
            Price, Ruskin, Salas, Saldana, Skinner, Solorio, Audra  
            Strickland, Swanson, Torlakson, Torres, Torrico, Yamada,  
            Bass
          NOES:  Anderson, DeVore, Fuller, Gaines, Garrick, Harkey,  
            Knight, Logue, Niello, Silva, Smyth, Tran, Villines
          NO VOTE RECORDED:  Duvall, Hagman, Jeffries







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          RJG:cm  7/8/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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