BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1274
                                                                  Page  1

          Date of Hearing:   June 30, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

           SB 1274 (Committee on Judiciary) - As Amended:  March 23, 2010 

          Policy Committee:                               
          JudiciaryVote:10-0 (Consent)

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill updates existing provisions regarding the electronic  
          service of court-related documents. 
          Specifically, this bill:

          1)Defines "electronic service" to include both electronic  
            notification and electronic transmission, as follows:

             a)   Electronic notification - occurs when a party receives  
               notification through an electronic message specifying the  
               exact name of the document being served, and is provided a  
               hyperlink from which the document may be viewed and  
               downloaded.

             b)   Electronic transmission - occurs when a document is sent  
               through electronic means to an electronic address that has  
               been provided by the receiving party.

          2)Requires the Judicial Council to adopt uniform rules regarding  
            the integrity of electronic service. 

          3)Provides that documents cannot be served electronically if  
            they are required to be served personally.  Documents that may  
            be served electronically, if a party has agreed to accept  
            service in this manner, include documents which may be served  
            by mail, express mail, overnight mail, or facsimile  
            transmission.

           FISCAL EFFECT  

          Minor absorbable costs for the Judicial Council to adopt rules  








                                                                  SB 1274
                                                                  Page  2

          regarding the integrity of electronic service, and ongoing  
          savings to court operations from efficiencies related to the  
          likely expanded use of electronic service.

           COMMENTS  

           Background and Purpose  . In January 2009, the California Court of  
          Appeals, 4th District, considered InSyst, Ltd. v. Applied  
          Materials, Inc., in which a party was electronically given  
          instructions to access a document on the internet and given a  
          hyperlink leading to a description of the document.  That  
          description also included an additional hyperlink that opened a  
          file-stamped copy of the judgment.    
                    
          Citing a Rule of Court (Rule 2.250(6)), the court said that  
          "[e]lectronic service is the electronic transmission of a  
          document to a party's electronic notification address."   
          (InSyst., Ltd. v. Applied Materials, Inc., at p. 1139.)  The  
          court reasoned that neither Rule 2.250(6) nor Section 1010.6 of  
          the Code of Civil Procedure authorized a party to electronically  
          serve another party by providing a hyperlink.  Therefore, the  
          court rejected the defendant's argument and found that notifying  
          the recipient electronically about the availability of a  
          document, and including a hyperlink at which the document could  
          be accessed, would not be considered valid electronic service  
          under California law.

          As a result, current law only authorizes service by the  
          electronic transmission method, but not the electronic  
          notification (hyperlink) method.  Prior to InSyst, both  
          electronic transmission and electronic notification were being  
          used increasingly in civil cases, as they perform the same goal  
          in a slightly different way.  This bill, co-sponsored by the  
          Judicial Council and the Conference of California Bar  
          Associations, simply redefines electronic service to include  
          electronic transmission and electronic notification.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081