BILL ANALYSIS SB 1181 Page 1 SENATE THIRD READING SB 1181 (Cedillo) As Amended August 2, 2010 Majority vote SENATE VOTE :35-0 JUDICIARY 10-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Feuer, Tran, Brownley, |Ayes:|Fuentes, Conway, | | |Evans, Hagman, Jones, | |Bradford, | | |Knight, Monning, Nava, | |Huffman, Coto, Davis, De | | |Huffman | |Leon, Gatto, Hall, | | | | |Harkey, Miller, Nielsen, | | | | |Norby, Skinner, Solorio, | | | | |Torlakson, Torrico | | | | | | ----------------------------------------------------------------- SUMMARY : Temporarily reauthorizes and revises the Transcript Reimbursement Fund (TRF) for very low-income parties in court who are unable to afford transcript services. Specifically, this bill : 1)Extends the sunset on the TRF 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 TRF subject to a limit of $1,500 per case and not to exceed $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 Court Reporters Board (Board) to report to the Legislature regarding expenditures and claims paid. FISCAL EFFECT : According to the Assembly Appropriations Committee, extended annual expenditure, for two years, of about $330,000 from the TRF, assuming an additional $30,000 in reimbursements to pro se litigants. Administrative costs for the Board to process additional costs and to report to the SB 1181 Page 2 Legislature should be minor and absorbable. 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 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 SB 1181 Page 3 reimbursement for instant visual display services would ensure speedy and efficient transcripts to litigants. Authorization for the TRF currently sunsets on January 1, 2011, along with the sunset of the Board itself. As indicated by the author, without TRF, 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. 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 TRF'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. Under existing law, an "applicant," or certified shorthand reporter in a case handled by an applicant, may apply for reimbursement from TRF 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. 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 SB 1181 Page 4 case. Analysis Prepared by : Kevin G. Baker / JUD. / (916) 319-2334 FN: 0006023