BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1181| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 1181 Author: Cedillo (D) Amended: 8/2/10 Vote: 21 SENATE JUDICIARY COMMITTEE : 4-0, 4/20/10 AYES: Corbett, Harman, Hancock, Leno NO VOTE RECORDED: Walters SENATE APPROPRIATIONS COMMITTEE : 10-0, 5/27/10 AYES: Kehoe, Alquist, Corbett, Denham, Leno, Price, Walters, Wolk, Wyland, Yee NO VOTE RECORDED: Cox SENATE FLOOR : 35-0, 6/2/10 AYES: Aanestad, Alquist, Ashburn, Calderon, Cedillo, Cogdill, Corbett, Correa, Cox, Denham, DeSaulnier, Ducheny, Dutton, Florez, Hancock, Hollingsworth, Huff, Kehoe, Leno, Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Romero, Runner, Simitian, Steinberg, Strickland, Walters, Wolk, Wright, Wyland, Yee NO VOTE RECORDED: Harman, Oropeza, Wiggins, Vacancy, Vacancy ASSEMBLY FLOOR : 77-0, 8/23/10 - See last page for vote SUBJECT : Shorthand reporters: Transcript Reimbursement Fund SOURCE : Author CONTINUED SB 1181 Page 2 DIGEST : This bill extends the sunset on the Transcript Reimbursement Fund administered by the Court Reporters Board of California (Board) from January 1, 2011 to January 1, 2013. The bill expands the applicants authorized to obtain reimbursement from the fund to include indigent pro se litigants, as specified, up to a maximum of $30,000 annually and $1,500 per case, and require the board to report to the Legislature no later than March 1, 2012, on expenditures and claims by such litigants. Assembly Amendments (1) reduces the amount per case to $1,500 from $2,500, and (2) amends due date or report from January to March 2012, and (3) adds declaration and findings. ANALYSIS : Existing law establishes the California Court Reporters Board (Board) (Business and Professions Code [BPC] Section 8000.) with, among other things, the authority and responsibility to determine the qualifications of persons applying for certification as a shorthand reporter (BPC Section 8007(a).); make rules for the examination of applicants and the issuing of certificates of qualification in professional shorthand reporting (BPC Sec. 8007(c).); and charge and collect authorized fees (BPC Sections. 8008(c), 8031.) Existing law establishes the Court Reporters' Fund into which all funds collected by the Board shall be deposited. (BPC Section 8030.) Existing law, until January 1, 2011, establishes the Transcript Reimbursement Fund (TRF) 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 SB 1181 Page 3 qualified claims and is authorized to utilize all refunds, unexpended funds, fees, and any other moneys received for this purpose. (BPC Section 8030.2) Existing law, 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 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. These existing provisions also specifically exclude persons appearing pro se to represent themselves at any stage of the case. (BPC Sections. 8030.4(e), 8030.8.) Existing law, 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. (BPC Section 8030.4.) Existing law, until January 1, 2011, specifies the charges that may be reimbursed from the TRF, including regular customary charges for expedited deposition transcripts up to a maximum of $2,500. (BPC Section 8030.6.) Existing law provides: (1) that the instant visual display of deposition testimony shall not be certified and cannot be used, cited, or transcribed as the official certified transcript of the proceedings; and (2) provides that the instant visual display of testimony shall not be cited or used in any way or at any time to rebut or contradict the official certified transcript of the proceedings as provided by the official reporter or official reporter pro tempore. (Code Civil Procedures Section 273.) SB 1181 Page 4 This bill would extend the sunset on the TRF and the accompanying provisions to January 1, 2013. This bill temporarily reauthorizes and revises the 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 to report to the Legislature regarding expenditures and claims paid. This bill extends the sunset on these provisions to January 1, 2013, and permits the cost of services related to providing instant visual display of deposition testimony to be reimbursed from the TRF. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee analysis: Fiscal Impact (in thousands) Major Provisions 2010-11 2011-12 2012-13 Fund Sunset Extension $0 $300 $300 Special* Include pro se litigants Possibly significant cost pressure Special* *Court Reporters' Fund SB 1181 Page 5 SUPPORT : (Verified 8/24/10) Bay Area Legal Aid ARGUMENTS IN SUPPORT : The author's office states, the 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 or 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. ASSEMBLY FLOOR : AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall, Bill Berryhill, Tom Berryhill, Block, Blumenfield, Bradford, Brownley, Buchanan, Caballero, Charles Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore, Eng, Evans, Feuer, Fletcher, Fong, Fuentes, Fuller, Gaines, Galgiani, Garrick, Gatto, Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning, Nava, SB 1181 Page 6 Nestande, Niello, Nielsen, Norby, V. Manuel Perez, Portantino, Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra Strickland, Swanson, Torlakson, Torres, Torrico, Tran, Villines, Yamada, John A. Perez NO VOTE RECORDED: Furutani, Vacancy, Vacancy RJG:do 8/24/10 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****