BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  AB 2485|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 2485
          Author:   Feuer (D)
          Amended:  6/21/10 in Senate
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  3-1, 6/29/10
          AYES:  Corbett, Hancock, Leno
          NOES:  Harman
          NO VOTE RECORDED:  Walters

           ASSEMBLY FLOOR  :  44-27, 5/24/10 - See last page for vote


           SUBJECT  :    Courts:  civil actions

           SOURCE  :     California Defense Counsel
                      Consumer Attorneys of California


           DIGEST  :    This bill extends the sunset to July 1, 2017 for  
          provisions regulating actions filed in superior court by a  
          common interest development association against a builder,  
          developer, or general contractor for design or construction  
          defects.  This bill also increases the court application  
          fee for out of state attorneys appearing in California  
          superior courts from $250 to $500.  This bill would  
          designate $250 of these fees to be deposited in the Trial  
          Court Trust Fund.

           ANALYSIS  :    Existing law provides pre-litigation dispute  
          resolution processes and procedures for construction or  
          design defects claims made by a common interest development  
                                                           CONTINUED





                                                               AB 2485
                                                                Page  
          2

          (CID) association against a builder, developer, or general  
          contractor of a CID.  (Civ. Code Sec. 1375.)

          Existing law sunsets these provisions on July 1, 2017.   
          (Civ. Code Sec. 1375(s).)

          Existing law, until July 1, 2010, provides that, if parties  
          to a construction or design defect claim fail to resolve  
          the dispute, the CID association can file, as specified, an  
          action in the superior court against a builder, developer,  
          or general contractor.  (Civ. Code Sec. 1375.05.)

          This bill extends this sunset on Civil Code Section 1375.05  
          to July 1, 2017. 

          Existing law provides that out of state attorneys can  
          appear  pro hac vice  (without being licensed in California)  
          in California superior courts upon the satisfaction of  
          specified requirements.  (Rules of Ct. Sec. 9.40.)

          Existing law provides that the fee payable to the State Bar  
          for filing a  pro hac vice  application is $50.  (Rules of  
          Ct. Sec. 940.) 

          Existing law provides that the fee payable to the filing  
          court for filing a  pro hac vice  application is $250; the  
          entirety of this fee is deposited in the Immediate and  
          Critical Needs Account of the State Court Facilities  
          Construction Fund.  (Gov. Code Sec. 70617(e).)

          Existing law provides that funds collected in the Immediate  
          and Critical Needs Account of the State Court Facilities  
          Construction Fund are used for the planning, design,  
          construction, rehabilitation, renovation, replacement, or  
          acquisition of courts facilities, repayment loans made from  
          lease-revenue bonds for the purpose of leasing court  
          facilities, and payment of lease contracts for court  
          facilities.  (Gov. Code Sec. 70371.5.)

          Existing law provides that funds collected in the Trial  
          Court Trust Fund are used to pay for trial court  
          operations.  (Gov. Code Sec. 68085.) 

          This bill increases the court application fee for an  







                                                               AB 2485
                                                                Page  
          3

          application to appear  pro hac vice  in the superior court to  
          $500.

          This bill provides that $250 of the  pro hac vice   
          application fee would be distributed into the Immediate and  
          Critical Needs Account of the State Court Facilities  
          Construction Fund, and $250 of this fee would be deposited  
          into the Trial Court Trust Fund.  

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

           SUPPORT  :   (Verified  7/1/10)

          California Defense Counsel (co-source) 
          Consumer Attorneys of California (co-source) 

           ARGUMENTS IN SUPPORT  :    According to the author's office:

               This bill is designed to increase financial support  
               for the courts during a period of unprecedented cuts  
               and threats of further reductions to the court budget,  
               while simultaneously limiting the burden on the courts  
               in civil matters so that they can operate [as]  
               productively and efficiently as possible.

               This bill increases the fee paid by non-California  
               lawyers who seek the privilege of being temporarily  
               admitted to practice for the purpose of a particular  
               case from $250.00 to $500.00, with the funds going for  
               the support of the courts.

               This bill also extends by 7 years the sunset on the  
               construction defect litigation rules so that they are  
               continued in effect until 2017, identically to the  
               comparable sunset period for the related  
               pre-litigation dispute resolution procedure.

          California Defense Counsel states, "AB 2485 makes a narrow  
          change to the Government Code to increase fees charged for  
           pro hac vice  appearances (appearances by out-of-state  
          counsel) from $250 to $500.  This Government Code fee is  
          statutorily directed to the court's critical needs account,  
          so important in these days of shortages in court funding.   







                                                               AB 2485
                                                                Page  
          4

          We are advised that  pro hac vice  fees in many states have  
          been increased in recent years.  It is not unreasonable  
          that lawyers in other states, offered the privilege of  
          temporarily practicing law in California pursuant to their  
          out-of-state licenses, help defray expenses in our courts.   
          Should consensus items be identified, AB 2485 might be an  
          appropriate vehicle to make changes; of course, in that  
          case, the Committee will be asked to re-evaluate the bill  
          if it changes.  AB 2485 is a small piece of an absolutely  
          critical discussion of court funding."

          Consumer Attorneys of California state, "Beyond its  
          existing language, this bill is also intended as a vehicle  
          for discussions on additional ways to increase efficiencies  
          in the civil courts.  We have been involved in discussions  
          with the bench and bar on how civil courts can be run in  
          the most effective way possible, saving time and costs for  
          all involved.  We hope that as this bill moves through the  
          process it can be amended to add civil efficiency measures  
          that reflect best practices from around the state.  At a  
          time when the courts are struggling with horrendous budget  
          cuts and struggling to provide the most basic level of  
          services, it is crucial to make sure that they operate at  
          maximum efficiency."


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









                                                              AB 2485
                                                                Page  
          5

          RJG:nl  7/1/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****