BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2013-2014 Regular Session


          AB 655 (Quirk-Silva)
          As Amended June 14, 2013
          Hearing Date: June 25, 2013
          Fiscal: Yes
          Urgency: No
          RD


                                        SUBJECT
                                           
                            Court Reporters: Salary Fund

                                      DESCRIPTION  

          This bill would authorize each trial court to establish a  
          Reporters' Salary Fund, and provide that the fund shall be a  
          revolving fund and must, upon appropriation, be used solely to  
          contribute to the salaries and benefits of official reporters.

                                      BACKGROUND  

          California law requires that an official court reporter or  
          official court reporter pro tempore of the superior court take  
          down in shorthand all testimony, objections made, rulings of the  
          court, exceptions taken, arraignments, pleas, sentences,  
          arguments of the attorneys to the jury, and statements and  
          remarks made and oral instructions given by the judge or other  
          judicial officer.  That requirement applies to specified case  
          types, including civil cases, on the order of the court or at  
          the request of a party; felony cases, on the order of the court,  
          or at the request of the prosecution, the defendant, or the  
          defendant's attorney; and misdemeanor or infraction cases, on  
          the order of the court.  (Code Civ. Proc. Sec. 269.)   
          Additionally, California law prescribes certain fees for such  
          court reporter services.   

          Since 1998, with the enactment of AB 233 (Escutia and Pringle,  
          Ch. 850, Stats. 1997), California consolidated all court funding  
          at the state level, giving the Legislature authority to make  
          appropriations and the Judicial Council responsibility to  
          allocate funds to state courts.  In doing so, AB 233 required  
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          that all court reporter fees collected by the trial courts be  
          deposited into the Trial Court Trust Fund (TCTF). The court  
          reporter fees are then returned to the trial courts as part of  
          their annual allocation and are distributed on a pro rata basis,  
          as opposed to on the basis of the dollars collected.  

          At the same time, with respect to the Los Angeles County  
          Superior Court, existing law requires the salaries and benefits  
          of official reporters to be paid from a revolving fund called  
          the Reporters' Salary Fund.  (Gov. Code Sec. 72708 et seq.) 
          
          In light of budgetary cuts that have affected court interpreters  
          in courts throughout California, this bill would authorize the  
          creation of similar revolving Reporters' Salary Funds in other  
          trial courts throughout the state.  Pursuant to this bill, those  
          funds could then, upon appropriation, only be used to contribute  
          to the salaries and benefits of official court reporters.  

                                CHANGES TO EXISTING LAW
          
          Existing law  establishes the Trial Court Trust Fund (TCTF).  
          (Gov. Code Sec. 68085.)

           Existing law  requires that the fees collected by the trial  
          courts for official court reporters be deposited in a bank  
          account established by the Administrative Office of the Courts  
          (AOC).  The AOC must distribute those deposits as specified,  
          with the remainder going to the TCTF.  (Gov. Code Sec.  
          68085.1(a)(4), (b)-(d).)

           Existing law  requires certain fees be charged for each civil  
          proceeding in which court reporter services are provided,  
          depending on the length of the proceeding.  Fees collected  
          pursuant to this section must be used only to pay the cost for  
          services of an official court reporter in civil proceedings.   
          (Gov. Code Sec. 68086.)  

           Existing law  provides for the appointment of official court  
          reporters and prescribes the fees and compensation for various  
          court reporting services in superior courts, except in counties  
          where statutes provide otherwise.  (Gov. Code Sec. 69941 et  
          seq.)
          
           Existing law  , with respect to the Los Angeles County Superior  
          Court, requires the salaries and benefits of official reporters  
          to be paid from the Reporters' Salary Fund.  (Gov. Code Sec.  
                                                                      



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          72709.)  Existing law requires, on order of the court, the per  
          diem fees and benefits of official reporters pro tempore be paid  
          from that Reporter's Salary Fund.  (Gov. Code Sec. 72710.)   
          Existing law requires that fees for court reporter services  
          payable by law by the parties to proceedings in the court to  
          official reporters or official reporters pro tempore be paid to  
          the clerk of the court, who shall deposit them in that  
          Reporters' Salary Fund.  (Gov. Code Sec. 72711(a).)

           Existing law  , with respect to the Los Angeles County Superior  
          Court, requires that a revolving fund in the amount of $750,000  
          known as the Reporters' Salary Fund be set aside from the  
          revenue of the court.  At the time of each monthly distribution  
          of the revenue of the court to the cities and to the county, the  
          clerk of the court must proportionately deduct from their  
          respective total shares such sum as will equal seven hundred  
          fifty thousand dollars ($750,000) when added to the sum then  
          remaining in the fund, and deposit it in the fund, as specified.  
           Deductions from the county's share of the revenue must 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.  Existing law defines "revenue" for these purposes to  
          include all fines, forfeitures, and fees accruing to the cities  
          or the county, except law library fees.  (Gov. Code Sec. 72712.)

           Existing law  , with respect to the Los Angeles County Superior  
          Court, requires that, if at any time the Reporters' Salary Fund  
          is insufficient, on order of the court the amount of the  
          deficiency be paid from the Trial Court Operations Fund. (Gov.  
          Code Sec. 72713(a).)

           This bill  would permit each trial court to establish a  
          Reporters' Salary Fund. 

           This bill  would provide that the Reporters' Salary Fund shall be  
          a revolving fund.  Funds deposited into the Reporters' Salary  
          Fund must, upon appropriation, be used solely to contribute to  
          the salaries and benefits of official reporters. 

                                        COMMENT
           
          1.    Stated need for the bill  

          According to the author: 

                                                                      



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            [The] Los Angeles Superior Court has demonstrated the positive  
            efficiencies and stability created through the Reporters'  
            Salary Fund.  Today the fund pays the salaries and benefits of  
            74 official reporters reporting misdemeanor proceedings. 

            This revolving fund is supported through a set-aside of court  
            revenue derived from fines, forfeitures and fees accruing to  
            the cities or county, except law library fees.  Proportionate  
            deductions from the county's share of the revenue is made from  
            the portion of it distributable to the general fund of the  
            county, and deductions from each city's share are made from  
            the portion of it distributable to each city.

            With the establishment of the Court Reporters' Salary Fund,  
            Los Angeles County has seen faster resolution of cases,  
            reduced volume of records storage, and increased access to  
            records.  

            However, not every county has the authorization to establish  
            something like this, and due to diminished budgets, trial  
            courts throughout California have reduced the number of court  
            reporters they employ. The trial courts have used various  
            strategies to make reductions in the number of official court  
            reporters employed.  These strategies range from reduced hours  
            to layoffs, outsourcing, or no longer providing court  
            reporting services in various types of proceedings.

            With the mass reduction of state funding over the last few  
            years many courts are finding it impossible to keep vital  
            services such as court reporters.  The Los Angeles Superior  
            Court is the only County that has been able to establish a  
            fund to assist with these crucial cuts.

            AB 655 expands the use of a Reporters' Salary Fund to help  
            ensure the availability of adequate funding for employment of  
            certified shorthand reporters to make the official verbatim  
            record in the trial courts of California.

          The sponsor of the bill, the California Court Reporters  
          Association (CCRA) writes that, "[d]ue to reduced budgets[,]  
          trial courts throughout California have reduced the number of  
          court reporters they employ.  [ . . . ] Court reporter services  
          are critical to the administration of justice by ensuring a  
          verbatim record of proceedings for purposes of judicial process  
          and appeals.  CCRA believes that authorizing local trial courts  
          to [i]mplement a Reporters' Salary Fund will provide a funding  
                                                                      



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          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 to more adequately meet the court  
          reporting staffing requirements necessary for the process to run  
          smoothly and future costs savings to be maintained by the court  
          reporters themselves-electronic delivery of certified  
          transcripts and the rough draft transcripts of the daily court  
          proceedings (often referred to as 'realtime translation') will  
          lead to fewer continuances of cases, faster resolution of cases  
          and more accurate and timely court minute orders, among other  
          court reporter driven savings." 

          2.    Court reporters  

          Under existing law, most courts throughout the state are  
          required to remit their court reporter fees to the Trial Court  
          Trust Fund to be distributed at a pro rata basis.  In contrast,  
          separate statutes require Los Angeles County to maintain a  
          revolving fund known as the Reporters' Salary Fund, to pay for  
          court reporters in its courts.  According to the author and the  
          California Court Reporters Association, the sponsor of this  
          bill, that fund dates back to 1945 and has helped Los Angeles  
          County maintain the vital services of court reporters despite  
          crucial budget cuts being made to the courts throughout the  
          state in recent years.  Moreover, the proponents assert that by  
          enabling Los Angeles County to avoid the level of outsourcing,  
          layoffs or reduced hours as is being seen in other courts, Los  
          Angeles County has faster resolution of cases, reduced volume of  
          records storage, and increased access to records.  As such, this  
          bill seeks to authorize trial courts outside of Los Angeles  
          County to set up similar Reporters' Salary Funds.    
          Specifically, this bill would allow other trial courts in the  
          state to establish a revolving Reporters' Salary Fund, from  
          which the funds can only be used, upon appropriation, to  
          contribute to the salaries and benefits of official reporters. 

          The Judicial Council writes, in opposition, that it is:

            [ . . . ] concerned that, by encouraging courts to set up a  
            special fund to pay salaries and benefits to court reporters,  
            this bill applies pressure to trial courts to treat certain  
            classifications of employees differently than other. In turn,  
            litigants may have greater or lesser access to court reporter  
            services depending on whether their trial court was in the  
            position to create a fund thereby fostering unequal access to  
                                                                      



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            justice for court users.  With the recent adoption of a new  
            funding formula to provide equity in funding for all trial  
            courts, the council is seeking to provide greater equality of  
            access to litigants, not lesser. 

            Furthermore, the bill creates an unnecessary statute that  
            could have the unintended consequences of eroding trial court  
            discretion over management of its employees.  Trial courts  
            have the ability to create such funds if the court deems it  
            necessary.  The enactment of a statute authorizing all 58  
            trial courts to create a Reporters' Salary Fund likely will  
            result in undue pressure on the courts from affected employee  
            groups to create such a fund to protect their salaries and  
            benefits.  This pressure may unnecessarily compromise labor  
            negotiations or delay bargaining agreements. 

            Further, even while AB 655 is silent as to where revenue for a  
            Reporters' Salary Fund would come from, the very existence of  
            the statute could be the first step towards making Reporters'  
            Salary Funds mandatory. 

            Finally, AB 655 is silent as to where revenue for a Reporters'  
            Salary Fund would come from.  . . .  By putting the onus on  
            the trial court to create the fund and by not specifying where  
            the revenue will come from, the pressure is on the trial  
            courts to come up with this revenue. In light of the  
            significant ongoing budget reductions facing the trial courts,  
            a statute implying that the courts should divert additional  
            funds from court operations to fund one classification of  
            employees reduces the courts' ability to manage their overall  
            resources and may unnecessarily hamper the public's access to  
            justice. 

          In response, the author contends that:

            The salary fund is designed to be a tool [to] create an  
            additional stable, supplemental source of funding to support  
            the provision of court reporter services.  To the extent that  
            entities reach a mutually agreeable arrangement (to be  
            negotiated locally to reflect the scope and scale and elect to  
            use a portion of their revenues from fees, fines and  
            forfeitures (as has been the case in Los Angeles for decades),  
            these revenues could result in additional court reporter  
            services in the courts. This bill does not require any trial  
            court to set up a fund, but simply would give courts an  
            optional new mechanism for ensuring compensation for official  
                                                                      



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            court reporting services.  Access to a quality record ensures  
            access to justice.  A great reduction in equal access to  
            justice is a proceeding without a court reporter.  If the  
            Salary Fund provides funding that supports keeping reporters  
            in court, it increases the public's access to a proceeding  
            with a record and court enhances access to justice. 
             
            [Moreover, given] that this legislation is permissive, but not  
            a mandate, it is unclear how this voluntary program erodes  
            management discretion.  The intent here is to put forth a  
            solution oriented tool - to allow others to look at the  
            longevity of the successful program in Los Angeles and see if  
            such a model might be appropriate and beneficial in other  
            jurisdictions.  This is their concern that a union  
            representing would bargain for the fund, therefore getting it  
            mandated.  CCRA is not engaged in bargaining issues, since we  
            represent both union and non-union certified shorthand  
            reporters (CSRs).
             
            [Lastly, the] "onus," as they state, is on the court to form  
            voluntary agreements with locals to help pay into the fund.   
            There is nothing mandatory about this bill and any attempt by  
            CCRA or anyone else to make it mandatory would fail miserably.  
             It is not lost on our reporters that at a time the when the  
            courts are eliminating their jobs, they are also opposed to a  
            voluntary effort that might keep a few of them.

          Committee staff further notes that with respect to the argument  
          that this bill may create inequitable access to court reporter  
          services between courts that do or those that do not create a  
          Reporters' Fund, such inequality arguably already exists under  
          current law, given that Los Angeles County is the only county  
          with such a fund.  As such, this bill could actually be seen by  
          some to help restore some of the existing inequity by allowing  
          other courts the option to develop Reporters' Funds as well.   
          With respect to the funding issue raised by the Judicial  
          Council, staff also notes that the silence arguably provides  
          more flexibility as to how such a fund would be funded.  As  
          noted by the California State Association of Counties (CSAC),  
          which writes to remove their opposition to the bill based on  
          recent amendments, "the amended construct of the bill confers  
          the authority to establish a revolving reporters' fund at the  
          local level and gives flexibility going forward to exercise this  
          authority at the local level pursuant to opt-in, cooperative  
          agreements among willing parties."

                                                                      



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          As a matter of public policy, insofar as the creation of this  
          fund is voluntary, and any Reporters' Salary Funds would be  
          dependent upon having appropriations that could then only be  
          used for the payment of court reporters and their salaries, this  
          bill appears to provide courts the flexibility to promote and  
          protect the vital function of court reporters and potentially  
          increase efficiencies in the administration of justice, much  
          like the Los Angeles County Superior Court.  


           Support  :  Los Angeles County Court Reporters Association;  
          Northern California Court Reporters Association; Orange County  
          Superior Court Reporters Association; San Bernardino Public  
          Employees Association; San Luis Obispo County Employees  
          Association; Service Employees International Union

           Opposition  :  Judicial Council of California 

                                        HISTORY
           
           Source  :  California Court Reporters Association

           Related Pending Legislation  :  None Known 

           Prior Legislation  :  None Known

           Prior Vote  :

          Assembly Floor (Ayes 71, Noes 1)
          Assembly Appropriations Committee (Ayes 16, Noes 0)
          Assembly Judiciary Committee (Ayes 10, Noes 0)

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