BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1574|
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                                    CONSENT


          Bill No:  SB 1574
          Author:   Senate Judiciary Committee
          Amended:  4/19/12
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  5-0, 5/1/12
          AYES:  Evans, Harman, Blakeslee, Corbett, Leno


           SUBJECT  :    Discovery:  electronically stored information

           SOURCE  :     Judicial Council of California


           DIGEST  :    This bill makes changes to the Civil Discovery 
          Act relating to electronically stored information in order 
          to address several inconsistencies.

          ANALYSIS  :    Existing law, the Electronic Discovery Act 
          (EDA), establishes procedures for obtaining the production 
          of electronically stored information (ESI) through the use 
          of a subpoena.  (Code of Civil Procedure (CCP) Section 
          1985.8)

          Existing law provides that "electronically stored 
          information" means information that is stored in an 
          electronic medium.  (CCP Section 2016.020)

          Existing law, the Civil Discovery Act (CDA), establishes 
          procedures for obtaining records through subpoenas.  (CCP 
          Sections 1985, 1985.3, 1985.6, 1987, 1987.1, 2017.010, 
          2020.020, and 2020.220)
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          This bill includes in these statutes the provisions in the 
          EDA for ESI among the things under a witness's control that 
          the witness would be bound by law to produce pursuant to a 
          subpoena. 

          This bill provides procedures under the EDA for objecting 
          to the specified form or forms of producing the ESI 
          requested by the subpoena.

          Existing law authorizes the court to impose monetary 
          sanctions, as specified, against any party or any attorney 
          of a party for specified discovery violations.  (CCP 
          Sections 1987.2, 2017.020, 2023.030, 2025.410, 2025.420, 
          2025.450, and 2025.480)

          This bill generally provides that, notwithstanding the 
          above provisions, the court is not required to impose 
          sanctions on a party or any attorney of a party for failure 
          to provide ESI that has been lost, damaged, altered, or 
          overwritten as the result of the routine, good faith 
          operation of an electronic information system.

          Existing law, under the CDA, authorizes the use of certain 
          types of technology, as defined, in conducting discovery in 
          a complex case.  (CCP Section 2017.710 et seq.) 

          This bill repeals those provisions, and instead generally 
          provides that when any method of discovery permits, 
          compels, prevents, or limits the production, inspection, 
          copying, testing, or sampling of documents or tangible 
          things, the same method would also apply to ESI.

          Existing law, the CDA, authorizes a party to a civil action 
          to obtain discovery, as specified, by inspecting documents, 
          tangible things, and land or other property in the 
          possession of any other party to the action.  (CCP Section 
          2017.010)

          This bill expands the scope of discovery described above to 
          include ESI. 

          Existing law provides for discovery propounded on nonparty 
          witnesses and deponents appearing outside of California.  

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          (CCP Sections 2019.040, 2026.010, 2027.010, and 2029.200)

          Existing law permits discovery, as specified, by the means 
          of copying, testing, or sampling, in addition to inspection 
          of documents, tangible things, land or other property, or 
          ESI.  (CCP Section 2031.010)

          This bill conforms the provisions for the means of 
          discovery propounded to nonparty witnesses and witnesses 
          appearing at depositions outside of California to the above 
          provision.

          This bill provides that all procedures otherwise available 
          to compel, prevent, or limit the production, inspection, 
          copying, testing, or sampling of documents or tangible 
          things shall be available for nonwitness discovery.

          Existing law establishes procedures for the production of 
          business records.  (CCP Section 2020.220)

          Existing law, under the EDA, provides that, unless the 
          subpoenaing party and the subpoenaed party otherwise agree 
          or the court otherwise orders, the following shall apply:

           if a subpoena requiring production of ESI does not 
            specify a form or forms for producing a type of ESI, the 
            person subpoenaed shall produce the information in the 
            form or forms in which it is ordinarily maintained or in 
            a form that is reasonably usable; and

           a subpoenaed person is not required to produce the same 
            ESI in more than one form. (CCP Section 1985.8(c))

          Existing law provides that a subpoenaed person opposing the 
          production, inspection, copying, testing, or sampling of 
          ESI on the basis that the information is from a source that 
          is not reasonably accessible because of undue burden or 
          expense shall bear the burden of demonstrating that the 
          information is from a source that is not reasonably 
          accessible because of undue burden or expense.  (CCP 
          Section 1985.8(d))

          Existing law provides that, if the person from whom 
          discovery of ESI is subpoenaed establishes that the 

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          information is from a source that is not reasonably 
          accessible because of undue burden or expense, the court 
          may nonetheless order discovery if the subpoenaing party 
          shows good cause, subject to any limitations, as specified. 
           (CCP Section 1985.8(e))

          Existing law provides that, if the court finds good cause 
          for the production of ESI from a source that is not 
          reasonably accessible, the court may set conditions for the 
          discovery of the ESI, including allocation of the expense 
          of discovery.  (CCP Section 1985.8(f))

          Existing law provides that, if necessary, the subpoenaed 
          person, at the reasonable expense of the subpoenaing party, 
          shall, through detection devices, translate any data 
          compilations included in the subpoena into a reasonably 
          usable form.  (CCP Section 1985.8(g))

          Existing law requires a court to limit the frequency or 
          extent of discovery of ESI, even from a source that is 
          reasonably accessible, if the court determines that 
          specified conditions exist.  (CCP Section 1985.8(h))

          Existing law provides procedures for ESI claimed by the 
          subpoenaed party to be privileged or protected as attorney 
          work product.  (CCP Section 1985.8(i))

          Existing law provides that a party serving a subpoena 
          requiring the production of ESI shall take reasonable steps 
          to avoid imposing undue burden or expense on a person 
          subject to the subpoena.  (CCP Section 1985.8(j))
           
          Existing law provides that an order of the court requiring 
          compliance with a subpoena issued under this section shall 
          protect a person who is neither a party nor a party's 
          officer from undue burden or expense resulting from 
          compliance.  (CCP Section 1985.8(k))

          Existing law provides that, absent exceptional 
          circumstances, the court shall not impose sanctions on a 
          subpoenaed person or any attorney of a subpoenaed person 
          for failure to provide ESI that has been lost, damaged, 
          altered, or overwritten as the result of the routine, good 
          faith operation of an electronic information system.  (CCP 

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          Section 1985.8(l))

          This bill establishes these provisions under the EDA for 
          the production of business records.

          Existing law, under the EDA, provides that a party serving 
          a subpoena requiring production of ESI may specify the form 
          or forms in which each type of information is to be 
          produced.  (CCP Section 1985.8(b))

          This bill requires a deposition subpoena for the production 
          of business records or a deposition notice to specify the 
          form in which any ESI is to be produced, if a particular 
          form is desired.

          Existing law requires a deponent to make a timely specific 
          objection to the disclosure of privileged documents in 
          order to protect privileged documents from discovery.  (CCP 
          Section  2025.460)

          Existing law, with respect to a document inspection demand, 
          provides that if a party objects to the discovery of ESI on 
          the grounds that it is from a source that is not reasonably 
          accessible because of undue burden or expense, and that the 
          responding party will not search the source in the absence 
          of an agreement with the demanding party or court order, 
          the responding party shall identify in its response the 
          types or categories of sources of ESI that it asserts are 
          not reasonably accessible.  (CCP Section 2031.210(e))

          This bill provides to a deponent the same ESI privilege 
          objections available to a person responding to a document 
          inspection demand.

          Existing law provides that a party seeking discovery may 
          move the court for an order compelling a deponent to 
          respond to the party's request for production of documents. 
           (CCP Section 2025.480)

          Existing law provides that a party objecting to or opposing 
          a demand for the production, inspection, copying, testing, 
          or sampling of ESI, on the basis that the information is 
          from a source that is not reasonably accessible, because of 
          the undue burden or expense, shall bear the burden of so 

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          demonstrating.  (CCP Section 2031.310(d).)  If it is 
          established that the ESI is from a source that is not 
          reasonably accessible because of undue burden or expense, 
          the court may nonetheless order discovery if the demanding 
          party shows good cause, subject to specified restrictions 
          in specified circumstances.  (CCP Section 2031.310(e))

          Existing law provides that, if the court finds good cause 
          for the production of ESI from a source that is not 
          reasonably accessible, the court may set conditions for the 
          discovery, including the allocation of the expense of 
          discovery.  (CCP Section 2031.310(f))

          Existing law provides that the court shall limit the 
          frequency or extent of discovery of ESI, even from a source 
          that is reasonably accessible, if the court determines that 
          specified conditions exist.  (CCP Section 2031.310(g))

          This bill provides for deposition document requests these 
          motion procedures provided for inspection demands.

           Background
           
          In 2009, the Electronic Discovery Act (EDA) was enacted by 
          AB 5 (Evans, Chapter 5, Statutes of 2009) in order to 
          improve the practices and procedures for handling the 
          discovery of electronically stored information (ESI).  The 
          EDA provides electronic discovery statutes within the CDA 
          for obtaining discovery of ESI.  

          Subsequently, the Judicial Council of California's Policy 
          Coordination and Liaison Committee and Civil and Small 
          Claims Advisory Committee (JC Committees) reviewed the CDA 
          and discovered several inconsistencies in the discovery 
          statutes that should be modified to properly address the 
          discovery of ESI.  Accordingly, the JC Committees issued a 
          Report, which included a legislative proposal to address 
          these gaps and omissions in the CDA.  (See Policy 
          Coordination and Liaison Committee and Civil and Small 
          Claims Advisory Committee, Judicial Council-Sponsored 
          Legislation (Civil Law):  Cleanup Legislation on the 
          Discovery of Electronically Stored Information (December 
          13, 2011)  Ưas of April 22, 2012].)

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          This bill, sponsored by the Judicial Council of California, 
          implements the proposed revisions to the CDA described in 
          the Report.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  5/2/12)

          Judicial Council of California (source)
          California Defense Counsel

           ARGUMENTS IN SUPPORT  :    According to the author:

            This bill would address several inconsistencies in the 
            Civil Discovery Act relating to electronically stored 
            information.  Specifically, this bill would:

                 conform civil subpoena statutes to provide for the 
               discovery of electronically stored information under 
               the Electronic Discovery Act; 

                 provide that discovery methods may include the 
               production, inspection, copying, testing or sampling 
               of electronically stored information;

                 conform the business records discovery statutes to 
               provide for electronically stored information;

                 conform deposition statutes to provide consistency 
               with the Electronic Discovery Act;  

                 conform discovery sanctions statutes to include the 
               safe harbor provisions under the Electronic Discovery 
               Act; and

                 repeal outdated provisions for the use of 
               technology under the Civil Discovery Act.

          The Judicial Council of California, the bill's sponsor, 
          writes:  "SB 1574 continues the process of modernizing 
          California's statutes on civil discovery to reflect the 
          fact that most information today is created and stored in 

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          electronic form.  The modernization of the discovery 
          statutes was begun a little over two years ago with the 
          passage of the Electronic Discovery Act, and SB 1574 will 
          further this important effort.  Although the amendments on 
          civil discovery that were made through AB 5 were extensive, 
          they were not completely comprehensive.  Some sections of 
          the Code of Civil Procedure still only refer to paper 
          documents or records and fail to mention electronically 
          stored information in appropriate places.  To be consistent 
          with the Electronic Discovery Act, these sections should be 
          amended, which is the purpose of this clean-up 
          legislation."


          RJG:mw  5/3/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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