BILL ANALYSIS
SB 1181
Page 1
Date of Hearing: June 15, 2010
ASSEMBLY COMMITTEE ON JUDICIARY
Mike Feuer, Chair
SB 1181 (Cedillo) - As Amended: April 28, 2010
PROPOSED CONSENT (As Proposed to be Amended)
SENATE VOTE : 35-0
SUBJECT : SHORTHAND REPORTERS: TRANSCRIPT REIMBURSEMENT FUND
KEY ISSUE : SHOULD THE SUCCESSFUL TRANSCRIPT REIMBURSEMENT FUND
FOR LOW-INCOME PARTIES IN COURT BE REAUTHORIZED FOR ANOTHER TWO
YEARS AND EXTENDED TO UNREPRESENTED PARTIES ON A PILOT BASIS?
FISCAL EFFECT : As currently in print this bill is keyed fiscal.
SYNOPSIS
This bill would extend the sunset on the Transcript
Reimbursement Fund (TRF) administered by the Court Reporters
Board of California (the board) from January 1, 2011 to January
1, 2013, to correspond with the sunset date of the board itself.
On a pilot basis, the bill would expand the applicants eligible
to obtain reimbursement from the Fund to indigent pro se
litigants, as specified, up to a maximum of $30,000 annually and
$1,500 per case. As proposed to be amended, applicants who
receive funding would be required to reimburse the Fund if they
prevail in the case or if they lose their court fee waiver if
they are later determined to be no longer indigent. The bill
also requires the board to undertake additional efforts to
publicize the availability of the Fund to nonprofit groups, and
to report to the Legislature on expenditures and claims.
SUMMARY : Temporarily reauthorizes and revises the Transcript
Reimbursement Fund for very low income parties in court who are
unable to afford transcript services. Specifically, this bill :
1)Extends the sunset on the Transcript Reimbursement Fund and
the accompanying provisions to January 1, 2013.
2)Permits a person appearing pro se at any stage of the case to
apply to receive funds from the Transcript Reimbursement Fund
subject to a limit of $1,500 per case and not to exceed
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$30,000 annually for all cases.
3)Requires pro se applicants to refund reimbursements if they
prevail in the action or lose their court fee waiver because
they are found not to be indigent.
4)Requires the board to report to the Legislature regarding
expenditures and claims paid.
EXISTING LAW :
1)Establishes the California Court Reporters Board (Bus. and
Prof. Code Sec. 8000) with, among other things, the authority
and responsibility to determine the qualifications of persons
applying for certification as a shorthand reporter (Bus. and
Prof. Code Sec. 8007(a)); make rules for the examination of
applicants and the issuing of certificates of qualification in
professional shorthand reporting (Bus. and Prof. Code Sec.
8007(c)); and charge and collect authorized fees (Bus. and
Prof. Code Secs. 8008(c), 8031).
2)Establishes the Court Reporters' Fund into which all funds
collected by the board shall be deposited. (Bus. and Prof.
Code Sec. 8030.)
3)Until January 1, 2011, establishes the Transcript
Reimbursement Fund to provide shorthand reporting services to
low-income litigants in civil cases who are unable to
otherwise afford those services. Existing law also provides
that the board shall transfer up to $300,000 into the TRF from
the Court Reporters' Fund at the beginning of each fiscal
year, from excess funds needed to support the board's
operating budget for each fiscal year. The board may transfer
additional funds available, provided that the additional
transfer does not result in a reduction of the balance of the
Court Reporters' Fund to an amount less than six months'
operating budget. The board is required to maintain
sufficient funding to pay all qualified claims and is
authorized to utilize all refunds, unexpended funds, fees, and
any other moneys received for this purpose. (Bus. and Prof.
Code Sec. 8030.2.)
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4)Until January 1, 2011, provides that an "applicant," or
certified shorthand reporter in a case handled by an
applicant, may apply, with supporting documentation, for
reimbursement from the Transcript Reimbursement Fund for the
allowable charges for preparing an original transcript, a copy
of the transcript (or both if appropriate) of court or
deposition proceedings for litigation conducted in California.
These existing provisions also specifically exclude persons
appearing pro se to represent themselves at any stage of the
case. (Bus. and Prof. Code Secs. 8030.4(e), 8030.8.)
5)Until January 1, 2011, specifies that an applicant includes a
"qualified legal services project," a "qualified support
center," "other qualified project," or "pro bono attorney," as
those terms are defined, which generally includes those
non-profit organizations, attorneys, law firms, or legal
corporations providing legal services to an indigent person.
In addition, the case may not be a fee generating case, which
is generally defined as a case that, if undertaken by an
attorney in private practice, may reasonably be expected to
result in payment of a fee from an award to a client, from
public funds, or from an opposing party. (Bus. and Prof. Code
Sec. 8030.4.)
6)Until January 1, 2011, specifies the charges that may be
reimbursed from the Transcript Reimbursement Fund, including
regular customary charges for expedited deposition transcripts
up to a maximum of $2,500. (Bus. and Prof. Code Sec. 8030.6.)
COMMENTS : The author explains the bill as follows:
The Transcript Reimbursement Fund (TRF) was established by the
legislature in 1981 and is funded through the Certified
Shorthand Reporters annual license renewal fees. The purpose
of the TRF is to provide court transcripts and depositions at
little or no cost to non-profit legal service centers and pro
bono attorneys on behalf of indigent litigants in civil cases.
This Fund is to sunset by January 1, 2011. Since this is a
valued program serving the indigent community it is vital for
the court process to have an extension of the program.
According to the Court Reporters Board, approximately a
quarter of all TRF claims are denied because they are
submitted by a litigant who represents himself/herself in a
lawsuit (known as in pro per litigants) rather than have an
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attorney. Many of these clients have obtained a fee waiver
for their cases and often assume that it applies to transcript
costs as well. These people are unable to afford the costs of
transcripts and often time forego their efforts to pursue
civil litigation or defend themselves in an action. Typical
cases involving requests for TRF assistance, in addition to
those who represent themselves, include: dissolution of
marriage/custody issues, evictions, unlawful terminations, and
probate disputes. These litigants could be helped with the
use of underutilized funds from the TRF to be expanded to
include individuals representing themselves.
In addition, current law does not allow TRF funds to be used
for the reimbursement of instant visual display reporting
rates for court reporters providing such services to counsel.
Instant visual display reporting is a near instant text
delivery of court proceedings and did not exist at the time
the law was written. Allowing the reimbursement for instant
visual display services would ensure speedy and efficient
transcripts to litigants.
This Bill Would Extend The Sunset On The Operation Of The
Transcript Reimbursement Fund To January 1, 2013. Authorization
for the TRF currently sunsets on January 1, 2011, along with the
sunset of the board itself. As indicated by the author, without
this Fund, there would be fewer resources available to indigent
litigants to obtain transcripts that permit them to evaluate and
prepare for their case. In addition, without a court
transcript, indigent litigants are unable to bring an appeal,
which has serious access implications for the administration of
justice. Extending the sunset for the TRF would help to ensure
that indigent litigants continue to be able to access this pool
of funds.
Historical Expenditures Reflect Underutilization Of Available
Funding For Inexplicable Reasons. The board makes available at
least $300,000 each year for the TRF. Based on data provided by
the board, in the nearly 30 years since the Fund's inception in
1981, the amounts expended on an annual basis has ranged from a
high in 1993-94 of $417,778 to a low in 2002-03 of $146,649. In
the 10 years between 1986-87 and 1995-96, expenditures exceeded
the $300,000 budget on nine occasions. However, since 1996-97,
expenditures have not exceeded $272,000.
It is unclear why the TRF has not been fully utilized in recent
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years by those who are currently eligible because there is a
well-documented need for legal services and a shortage of
funding for the nonprofit organizations that assist low-income
parties and their pro-bono partners in private practice.
Anecdotal reports from legal aid groups suggest that the
availability of the Fund is not well known. The bill therefore
calls on the board to undertake additional efforts to publicize
the availability of the Fund in cooperation with the State Bar
and related groups in a position to assist the board in reaching
the target audience of legal aid organizations and pro bono
attorneys.
Bill Would Expand Those Eligible To Seek Reimbursement From The
Transcript Reimbursement Fund To Include Indigent Pro Se
Litigants On A Trial Basis. Under existing law, an "applicant,"
or certified shorthand reporter in a case handled by an
applicant, may apply for reimbursement from the Transcript
Reimbursement Fund for the allowable charges for preparing an
original transcript, a copy of the transcript, or both if
appropriate, of court or deposition proceedings for litigation
conducted in California. (Bus. & Prof. Code Sec. 8030.4.)
An applicant includes a "qualified legal services project," a
"qualified support center," "other qualified project," or "pro
bono attorney," as those terms are defined, which generally
includes those non-profit organizations, attorneys, law firms,
or legal corporations providing legal services to an indigent
person. In addition, the case may not be a fee generating case,
which is generally defined as a case that, if undertaken by an
attorney in private practice, may reasonably be expected to
result in payment of a fee from an award to a client, from
public funds, or from an opposing party. Because of concerns
that the huge volume of unrepresented parties could overwhelm
the fund, these provisions have historically exclude persons
appearing pro se to represent themselves at any stage of the
case.
The board reports that in fiscal year 2008-09 it received 363
claims for reimbursement under the TRF and disbursed
approximately $201 million to 330 applicants. Of the 33 claims
denied, nine were from litigants who appeared pro se in the
underlying case. Because the fund has not been fully utilized
by the existing pool of potential applicants, this bill would,
on a trial basis until January 1, 2013, permit a person
appearing pro se at any stage of the case to apply to receive
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transcript reimbursement from the Fund. Pro se litigants
applying for reimbursement would be required to provide a fee
waiver from the court to establish indigent status. In
addition, all other requirements related to the type of case and
the types of expenses to be reimbursed would continue to apply.
It is unknown what impact the expansion of eligibility to pro se
parties may have on the Fund. In order to ensure that the Fund
is not overwhelmed, this bill would provide that amount to be
reimbursed under the proposed provisions for pro se litigants
would not exceed $30,000 annually and $1,500 per case. These
amounts are well below the historical amount of unexpended funds
remaining at the end of each year in the Fund. However, the
historical data may not accurately reflect the likely impact of
expanding eligibility because more pro se litigants will almost
certainly apply for reimbursement once they become eligible to
do so. The bill therefore requires the board to report on the
operation of the TRF during this test period.
Prior Related Legislation. SB 963 (Ridley-Thomas, Chapter 385,
Statutes of 2008) extended the sunset for the Court Reporters
Board and Trial Reimbursement Fund until January 1, 2011.
REGISTERED SUPPORT / OPPOSITION :
Support
Bay Area Legal Aid
Opposition
None on file
Analysis Prepared by : Kevin G. Baker / JUD. / (916) 319-2334