BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2011-2012 Regular Session


          AB 1406 (Committee on Judiciary)
          As Amended June 6, 2012
          Hearing Date: June 19, 2012
          Fiscal: No
          Urgency: No
          NR   
                    

                                        SUBJECT
                                           
                        Dissolution of Marriage: Proceedings

                                      DESCRIPTION  

          Existing law requires each party to a dissolution proceeding to 
          serve on the other party a preliminary declaration of disclosure 
          of assets after or concurrently with service of the petition for 
          dissolution. 

          This bill would require the petitioner to serve the preliminary 
          declaration of disclosure either concurrently or within 60 days 
          of filing the petition, and would require the respondent to 
          serve the other party concurrently with the response to the 
          petition or within 60 days of filing the response. This bill 
          would allow for those time periods to be extended by written 
          agreement of the parties or by court order. The bill also would 
          require the preliminary declaration of disclosure of assets to 
          include all tax returns filed by the declarant within the two 
          years prior to the date that the party served the declaration.

          This bill would also make clarifying changes regarding attorney 
          fee awards and minor's counsel. 

                                      BACKGROUND  

          The Elkins Family Law Task Force, chaired by Associate Justice 
          Laurie D. Zelon of the Court of Appeal, Second Appellate 
          District, Division Seven, was appointed in May 2008 for the 
          purpose of conducting a comprehensive review of family law 
          proceedings in order to make recommendations to the Judicial 
          Council that would increase access to justice for family law 
                                                                (more)



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          litigants; ensure fairness and due process; and provide for more 
          effective and consistent family law rules, policies, and 
          procedures.  The task force was formed at the suggestion of the 
          California Supreme Court in Elkins v. Superior Court (2007) 41 
          Cal.4th 1369.  
          The task force conducted a comprehensive review of family courts 
          through in-person meetings, conference calls, and outreach to 
          family court stakeholders and litigants.  The final report 
          contains twenty-one main recommendations; the Judicial Council 
          accepted the report on April 23, 2010. (Hereinafter, Elkins 
          Report.)  The final report can be found at (Elkins Family Law 
          Task Force:  Final Report and Recommendations, (April 2010) 
          Judicial Council  Ýas of June 11, 2012].)

          While many of the Task Force's recommendations may be 
          implemented by the courts, whether through Rule of Court or even 
          informal policy change, others require statutory changes. In 
          2010, AB 939 (Committee on Judiciary, Chapter 352, Statutes of 
          2010) was enacted to implement most of the Elkins Task Force's 
          key legislative recommendations. 

          This bill would implement one additional change recommended by 
          the Elkins Task Force, and clarify two recommendations 
          implemented by AB 939.  Specifically, this bill would set a 
          deadline for parties in a dissolution proceeding to serve the 
          required preliminary financial disclosure documents and would 
          also require the parties to include tax returns from the two 
          previous years.  This bill would also extend the attorney fee 
          award standard created by the Task Force to fee awards in 
          paternity proceedings.  Finally, this bill would eliminate the 
          requirement that a court consider a statement of issues and 
          contentions by minor's counsel. 

                                CHANGES TO EXISTING LAW
           
           1.Existing law  provides that parties to a dissolution or legal 
            separation must serve on the other party a preliminary 
            declaration of disclosure of all assets and liabilities in 
            which one or both parties may have an interest. (Fam. Code 
            Sec. 2103.)

             Existing law  provides that the preliminary declaration of 
            disclosure of assets must be served after or concurrently with 
            service of the petition for dissolution of marriage or legal 
            separation of the parties, and must be signed under penalty of 
                                                                      



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            perjury. (Fam. Code Sec. 2104.)

             Existing law  prohibits the court from entering a judgment 
            regarding the parties' property rights in a dissolution 
            proceeding unless each party has submitted a final disclosure 
            declaration and a current income and expense declaration.  
            (Fam. Code Sec. 2106.)

             Existing law  provides for specified remedies if one party does 
            not serve the other party with the preliminary or final 
            declaration of disclosure.  These remedies are only available 
            if the complying party served the noncomplying party.  (Fam. 
            Code Sec. 2107.)
            
             This bill  would require preliminary disclosure declarations to 
            include all tax returns filed by the declarant within the two 
            years prior to the date that the declarant serves the 
            declaration.

             This bill  would require the petitioner to serve the other 
            party with the preliminary declaration of disclosure either 
            concurrently with the petition for dissolution, or within 60 
            days of filing the petition. This bill would require the 
            respondent to serve the other party with the preliminary 
            declaration of disclosure either concurrently with the 
            response to the petition, or within 60 days of filing the 
            response.  

             This bill  would allow these time periods to be extended by 
            written agreement of the parties or by court order.

          2.Existing law  provides that an award of attorney's fees in 
            paternity cases shall be based on the respective income and 
            needs of the parties, and any factors affecting the parties' 
            ability to pay. (Fam. Code Sec. 7605.)

             This bill  would require the court, in any paternity proceeding 
            where one party has requested that the other party pay 
            attorney's fees, to make findings on whether an award of 
            attorney's fees is appropriate, whether there is a disparity 
            in access to retain counsel, and whether one party is able to 
            pay for legal representation for both parties before awarding 
            attorney's fees to a party. 

           3.Existing law  provides that the court, in a custody or 
            visitation proceeding, may appoint minor's counsel if the 
                                                                      



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            appointment is in the best interest of the child.  Minor's 
            counsel and the court must comply with specified rules of 
            court.  Minor's counsel must serve notice and pleadings, and 
            present evidence consistent with requirements for parties.  
            (Fam. Code Secs. 3150-51.)

             This bill  would delete the requirement that a court consider a 
            statement of issues and contentions from minor's counsel. 

                                        COMMENT
           
           1.Stated need for the bill
           
          In support of this bill, the author writes: 

             AB 1406 makes three non-controversial and technical clean-up 
             changes to AB 939 (Judiciary).  First, the bill applies the 
             attorney's fees standard developed by the Elkins Task Force 
             and established in AB 939 for dissolution, child support and 
             custody cases to paternity cases as well.  Second, the bill 
             eliminates reference to a minor's counsel statement of issues 
             and contentions, which was eliminated by changes in AB 939 
             (Section 3151), but one section (Section 3151.5) was 
             inadvertently left unchanged.  Finally, consistent with 
             Elkins, the bill requires that dissolution disclosure 
             documents include tax returns and that the preliminary 
             disclosure declaration be served by the petitioner within 60 
             days of filing of the petition and by the respondent within 
             60 days of filing of the response.

           2.Time limits and tax returns imposed on disclosures in 
            dissolution proceedings
           
          In its recommendations, the Task Force noted that, "Ýf]amily law 
          matters currently have no time standards for completion other 
          than a limitation that the parties to a dissolution of marriage 
          cannot be restored to the status of single persons until six 
          months have elapsed from the date of service." The Task Force 
          then recommended that the Judicial Council should adopt rules 
          setting out a framework for the timely disposition of family law 
          cases. The Task Force noted that these rules should recognize 
          that some cases need significantly more time than others because 
          of the complexity of the issues or desire of the parties to have 
          additional time to attempt reconciliation, but they should also 
          recognize that most litigants would like to have their matters 
          resolved promptly. (Elkins Report p. 25.)
                                                                      



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          This bill would implement these recommendations and require each 
          party in a dissolution proceeding to serve the preliminary 
          disclosure of assets concurrently or within 60 days of the 
          petition or response, and would require the disclosure to 
          include tax returns from the previous two years.  In support of 
          this bill, the Judicial Council argues this bill will improve 
          and streamline dissolution cases and assist self-represented 
          parties to this litigation.  Specifically, the Judicial Council 
          argues that this bill: 

             Ýwould] improve the ability of the family courts to manage 
             the flow of dissolution cases and prevent unnecessary 
             litigation regarding financial discovery in these matters. ? 
             Currently many litigants file their petitions for dissolution 
             and then fail to take any action on them for significant 
             periods of time.  By setting forth a clear timeframe for the 
             requirement that the parties serve a preliminary declaration 
             of financial disclosure, self-represented litigants will have 
             better information about the next steps in their case. ? 
             Moreover, much time is currently spent in family law arguing 
             about discovery matters that would be moot if the parties 
             simply complied with existing financial disclosure 
             requirements.  Clarifying the timeframe for completion of 
             this disclosure, and the fact that it must include the last 
             two years tax returns, will obviate the need for much of this 
             litigation over discovery issues. 

          The Executive Committee of the Family Law Section of the State 
          Bar of California (FLEXCOM) also supports this bill, and argues 
          that it will function to "eliminate a necessary element of 
          discovery in many cases. ? The proposal will Ýtherefore] 
          streamline the process, reduce costs by eliminating additional 
          discovery, and provide impetus to litigants and counsel to 
          comply with disclosure laws not eventually, but timely." 

          At the suggestion of the Association of Certified Family Law 
          Specialists (ACFLS), this bill was amended in the Assembly to 
          allow in excess of 60 days by agreement of the parties or by 
          court order.  The ACFLS argues that this exception would allow 
          litigants to stipulate to extend the time limit imposed by this 
          bill if circumstances so demand.  

           3.Changes consistent with Elkin's recommendations and existing 
            law
          
                                                                      



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          This bill would also extend the Task Force recommendations 
          regarding needs-based attorney fees to paternity proceedings, 
          and eliminate a reference to a minor's counsel statement of 
          issues and contentions, a statement which was effectively 
          eliminated by the passage of AB 939 (Committee on Judiciary, 
          Chapter 352, Statutes of 2010.) 

              a)   Attorney fee awards in paternity proceedings
           
            Concerning accessibility to the courts, and needs-based 
            attorney fee awards, the Task Force concluded that: 

               Ýc]ases in which one side has counsel and the other does 
               not can pose a variety of potential difficulties for the 
               unrepresented litigant, attorney, and the judicial officer. 
                Representation may be available in more of these cases if 
               courts were to make early needs-based attorney fee awards. 

               The Judicial Council should adopt statewide rules regarding 
               the information that need to be submitted to the court to 
               obtain an award of attorney fees.  Consistency in these 
               requirements would allow attorneys and self-represented 
               litigants seeking attorneys to provide the information 
               needed by the court for an award of attorney fees.  (Elkins 
               Report pp. 59-60.)

            AB 939 responded to the recommendation of the Task Force by 
            requiring, in child support, custody, and dissolution 
            proceedings, the court to determine whether the award of fees 
            is necessary, whether there is a disparity in access to funds 
            or income, and whether one party is able to pay for legal 
            representation of both parties.  If the court determines that 
            there is a need, disparity in access and ability to pay, AB 
            939 requires that the court award attorney fees.  

            However, AB 939 failed to extend this standard to paternity 
            proceedings.  Thus, under existing law attorney fees are 
            awarded in paternity cases based on the respective income and 
            needs of the parties, and any factors affecting the parties' 
            ability to pay. (Fam. Code Sec. 7605.)  This bill, in keeping 
            with the Task Force recommendation for consistency, would 
            replace the current statutory considerations regarding 
            attorney fee awards in paternity cases, with the standard 
            developed by the Task Force and implemented by AB 939. 

              b)   Statement of issues and contentions by minor's counsel
                                                                      



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             Under existing law, a court may appoint minor's counsel in a 
            custody or visitation proceeding if the appointment is in the 
            best interest of the child.  Prior to the passage of AB 939, 
            minor's counsel was required to provide the court with a 
            statement of issues and contentions.  The Elkins Task Force 
            recommended that a minor's counsel never takes the place of a 
            mental health evaluator or assume the court's role of weighing 
            and determining the facts of the case.  (Elkins Report, p. 
            54.)  The Task Force also recommended that minor's counsel 
            fact-gathering should be presented to the court in the same 
            manner as other admissible evidence so that parties' due 
            process rights are protected. 

            In implementing these recommendations, AB 939 required minor's 
            counsel to comply with applicable rules of court, and present 
            admissible evidence in the same manner as counsel for a party. 
             AB 939 also eliminated the language authorizing the court to 
            request a statement of issues and contentions from minor's 
            counsel in one section of the Family Code, but failed to 
            eliminate this reference in the subsequent section.  This bill 
            would resolve that inconsistency by repealing the code section 
            requiring a court to consider a statement of issues and 
            contentions by minor's counsel.  

           Support  :  Association of Certified Family Law Specialists 
          (ACFLS); Executive Committee of the Family Law Section of the 
          State Bar (FLEXCOM); Judicial Council of California

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :  None Known


           Prior Legislation  : AB 939 (Committee on Judiciary, Chapter 352, 
          Statutes of 2010) made various changes to family law proceedings 
          thereby implementing a number of the legislative recommendations 
          issued by the Elkins Family Law Task Force. 

           Prior Vote  :

          Assembly Floor (Ayes 73, Noes 0)
                                                                      



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          Assembly Judiciary Committee (Ayes 9, Noes 0)

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