BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 655
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          Date of Hearing:   April 9, 2013

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
               AB 655 (Quirk-Silva) - As Introduced:  February 21, 2013
           
          SUBJECT  :  COURT REPORTERS: SALARY FUND

           KEY ISSUE  :  SHOULD INDIVIDUAL TRIAL COURTS BE AUTHORIZED TO  
          ESTABLISH A FUND, MODELED AFTER A LONGSTANDING EXAMPLE IN LOS  
          ANGELES COUNTY, FROM WHICH THE SALARIES AND BENEFITS OF OFFICIAL  
          COURT REPORTERS SHALL BE PAID?

           FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.

                                      SYNOPSIS
          
          This noncontroversial bill, sponsored by the California Court  
          Reporters' Association, seeks to authorize individual trial  
          courts to establish a revolving fund from which the salaries and  
          benefits of official reporters would be paid.  The proposed  
          Reporters' Salary Fund in each court would be patterned after a  
          longstanding model in Los Angeles County that has been in  
          operation for over 60 years.  This bill does not require any  
          trial court to set up a fund, but simply would give the courts  
          an optional new mechanism for ensuring compensation for official  
          court reporting services.  As provided by this bill, the salary  
          fund would be a revolving fund supported through a set-aside of  
          court revenue (presumably collected through court fines,  
          forfeitures and fees), meaning that the fund is replenished each  
          month to ensure a certain balance is maintained to pay for court  
          reporters.  As currently in print, the bill does not specify the  
          size of the Fund, but should this bill be approved by this  
          Committee, it is expected to be amended to specify that amount  
          prior to being heard by Assembly Appropriations.  The bill is  
          supported by SEIU California and a number of associations of  
          court reporters, who contend that ensuring the funding of court  
          reporter services is necessary to protect the public's access to  
          justice.  This bill has no known opposition.

           SUMMARY  :  Authorizes, but does not require, individual trial  
          courts to establish a fund from which the salaries and benefits  
          of official reporters shall be paid.  Specifically,  this bill  :    










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          1)Provides that the Reporters' Salary Fund shall be created by  
            setting aside from the revenue of the court a revolving fund  
            in an amount set by statute, but as yet undetermined.

          2)Provides that at the time of each monthly distribution of the  
            revenue of the court to the appropriate state or county funds  
            as required by law, the clerk of the court shall deduct  
            proportionately, the sum as will, when added to the sum then  
            remaining in the fund, equal _____ dollars ($_____) and  
            deposit it in the fund.

          3)Requires fees for reporting services payable by law by the  
            parties to proceedings in the court to official reporters to  
            be paid to the clerk of the court, who shall deposit them in  
            the Reporters' Salary Fund.

          4)Requires fees for transcription of testimony and proceedings  
            in the court to be paid by the parties to official reporters  
            as otherwise provided by law.

          5)Provides that in all cases where by law the court may direct  
            the payment of transcription fees out of the Trial Court  
            Operations Fund, the fee on order of the court shall be paid  
            from the Reporters' Salary Fund, except fees for transcription  
            of testimony and proceedings in felony cases, which shall be  
            paid from the Trial Court Operations Fund.

          6)Requires that, if at any time the Reporters' Salary Fund is  
            insufficient, on order of the court the amount of the  
            deficiency shall be paid from the Trial Court Operations Fund  
            for that court.

           EXISTING LAW  :   

          1)Prescribes the fees and compensation for court reporting  
            services.  (Article 9 of Chapter 5 of Title 8 of Government  
            Code, commencing with Section 69941.)

          2)Requires the salaries and benefits of official reporters in  
            the Los Angeles County Superior Court to be paid from the  
            Reporters Salary Fund.  (Government Code Section 72709.)

          3)Authorizes the per diem fees and benefits of official  
            reporters pro tempore in the Los Angeles County Superior Court  
            to be paid from the Fund.  (Government Code Section 72710.)








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          4)Establishes within the Los Angeles County Superior Court a  
            revolving fund from the revenue of the court in the amount of  
            seven hundred fifty thousand dollars ($750,000), known as the  
            Reporters' Salary Fund.  Provides that deductions from the  
            county's share of the revenue shall be made from that portion  
            of it distributable to the general fund of the county, and  
            deductions from each city's share shall be made from that  
            portion of it distributable to the general fund of each city.   
            (Government Code Section 72172.)

          5)Fees for reporting services payable by law by the parties to  
            proceedings in the Los Angeles County Superior Court to  
            official reporters or official reporters pro tempore shall be  
            paid to the clerk of the court, who shall deposit them in the  
            Reporters' Salary Fund.  (Government Code Section 72711.)  

           COMMENTS  :  This bill seeks to authorize individual trial courts  
          to establish a revolving fund from which the salaries and  
          benefits of official reporters would be paid.  The proposed  
          Reporters' Salary Fund in each court would be patterned after a  
          longstanding model in Los Angeles County that has been in  
          operation for over 60 years.  This bill does not require any  
          trial court to set up a fund, but simply would give the courts  
          an optional new mechanism for ensuring compensation for official  
          court reporting services.

          According to the California Court Reporters' Association (CCRA),  
          the sponsor of the bill:

               The trial courts continue to face significant funding  
               reductions, which ultimately negatively impact the public's  
               access to justice.  Due to reduced budgets, trial courts  
               throughout California have reduced the number of court  
               reporters they employ, as well as strategies ranging from  
               reduced hours, layoffs, outsourcing, and no longer  
               providing reporting services in various types of  
               proceedings.  CCRA believes that authorizing local trial  
               courts to implement a Reporters' Salary Fund will provide a  
               funding source that will financially benefit state  
               government, counties, cities, and courts throughout  
               California. With the stability created through a Reporters'  
               Salary Fund, courts would have a tool to allow them more  
               adequately meet the court reporting staffing requirements  
               necessary for the process to run smoothly and future cost  








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               savings to be achieved.  However, in order for efficiencies  
               and cost savings to be realized, a more stable funding  
               source to support adequate staffing of official reporters  
               is necessary.

           Court Budget Reductions Have Dramatically Reduced Courts with  
          Court Reporters  :  On February 12, 2013, this Committee held an  
          informational hearing titled "The Access to Justice Crisis  
          Facing California's Families" in order to identify and better  
          understand the impacts of budget reductions on the trial courts.  
           In preparing for the hearing, this Committee independently  
          surveyed the 58 trial courts to assess what measures the courts  
          report they have taken over the last five years to address the  
          cuts.  Responses were received from 55 of the trial courts, with  
          the exception of the courts in Glenn, Lassen and Santa Barbara  
          Counties.  Of those trial court responding, 6 have reduced  
          expenditures for court reporters, and fully 30 courts have  
          ceased providing court reporters for civil, family and probate  
          proceedings.  In those courts, parties who wish to have an  
          official record of proceedings must hire and pay the substantial  
          cost of providing their own private court reporter.  Without a  
          transcript of court proceedings, litigants are unable to appeal  
          decisions, parties may be unable to draft orders effectively,  
          and those attempting to recount what actually happened during  
          proceedings - including jurors deliberating on the case - are  
          unable to do so.  

           The Commission on Judicial Performance is very concerned about  
          elimination of court reporters  .  The Commission on Judicial  
          Performance (CJP) is charged with investigating and disciplining  
          misconduct by state judges.  In a letter to the Governor, the  
          Supreme Court and the Legislature, the CJP Director-Chief  
          Counsel writes that she is concerned that the significant  
          reduction in court reporters impairs the Commission's "ability  
          to fulfill its mandate to protect the public, and undermines the  
          administration of justice in court proceedings in California."   
          (Letter from Victoria Henley to Governor Brown, Supreme Court  
          Chief Justice Cantil-Sakauye, Speaker P�rez and Senate President  
          Pro Tempore Steinberg (Feb. 29, 2012).)  CJP writes that without  
          a record of court proceedings:

               [I]t can be difficult, if not impossible, to establish what  
               occurred in the courtroom, where 95% of the complaints to  
               the Commission each year originate  In December 2011, there  
               were transcripts or recordings in only half of the  








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               Commission's pending investigations that involve courtroom  
               conduct.  . . .  The absence of transcripts or recordings  
               thus impedes the commission in determining that misconduct  
               has occurred and in protecting the public from abusive  
               judges.  Equally important, the absence of a record of  
               court proceedings prevents the swift and complete  
               exoneration of judges by the commission when appropriate.

           Background on the Reporters' Salary Fund in the Los Angeles  
          courts.   According to the author, in 1945 the Los Angeles City  
          Attorney's office entered into an agreement with the then-Los  
          Angeles Municipal Court to have the Court assign court reporters  
          to misdemeanor proceedings in order to, for the first time,  
          ensure the availability of a verbatim record in such cases.   
          Under this agreement, funding of the reporters would be paid by  
          Los Angeles County and participating cities through a Reporters'  
          Salary Fund ("Fund"). 

          In 1953, the Fund was officially established under state law  
          (Ch. 206, Stats. 1953).  In 2002, the Los Angeles Superior Court  
          inherited the Fund as a result of unification of the Municipal  
          and Superior Courts.  The fund currently pays the salaries and  
          benefits of 74 official reporters in the Los Angeles Superior  
          Court.  According to the author, this Fund has provided  
          uninterrupted financial support to employ court reporters in Los  
          Angles for almost seven decades.

          The Reporters Salary Fund in Los Angeles is a revolving fund  
          supported through a set-aside of court revenue derived from  
          fines, forfeitures and fees accruing to the cities or county,  
          except law library fees.  Under Government Code Section 72172,  
          the Fund is kept replenished at an amount of $750,000, meaning,  
          for example, that if $400,000 is spent in a given month, then  
          $400,000 in set-aside court revenue is put back into the Fund to  
          maintain the balance at $750,000 each month.  Proportionate  
          deductions from the county's share of the revenue are made from  
          the portion distributable to the general fund of the county, and  
          deductions from each city's share are made from the portion  
          distributable to each city.    
           
          This bill authorizes, but does not require, individual trial  
          courts to establish similar fund mechanisms to pay for court  
          reporters.   According to the author and sponsor, Los Angeles  
          County has seen faster resolution of cases, reduced volume of  
          records storage, and increased access to records with the  








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          establishment of the Fund.  It is not known, however, to what  
          extent those outcomes can be directly attributed to operation of  
          the Fund or to other contemporaneous factors (for example, court  
          unification and technological improvements).  In any case, it  
          appears that the Fund has provided a stable, continuous funding  
          of court reporters in Los Angeles for many decades, and may  
          serve as a model for other local courts to implement if they so  
          choose, pursuant to authority under this bill.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Court Reporters' Association (sponsor)
          Los Angeles Court Reporters Association
          Northern California Court Reporters Association
          Orange County Superior Court Reporters Association
          SEIU California

           Opposition 
           
          None on file
           
          Analysis Prepared by  :   Anthony Lew / JUD. / (916) 319-2334