BILL ANALYSIS Ó SB 75 Page 1 SENATE THIRD READING SB 75 (Budget and Fiscal Review Committee) As Amended June 12, 2013 Majority vote. Budget Bill Appropriation Takes Effect Immediately SENATE VOTE :Vote not relevant SUMMARY : Provides for statutory changes necessary to enact the Judicial Branch provisions of the Budget Act of 2013. Specifically, this bill : 1)Provides relief to courts as they prepare to operationalize a 1% cap on the amount of reserves that can be carried-over from one fiscal year to the next and mitigates cash flow concerns, by: a) Specifying that court reporting fees collected for proceedings lasting less than an hour be distributed to the court in which it was collected. b) Clarifying that each trial court's funding allocation be offset by the amount of reserves in excess of the amount allowable (1%). c) Allowing the Administrative Office of the Courts (AOC) to transfer funds to the Trial Court Trust Funds, from other court funds (State Court Facilities Construction Fund, Immediate and Critical Needs Account, Judicial Branch Workers' Compensation Fund), if the cash balance is insufficient to support trial court operations. The total amount of the outstanding loan cannot exceed $150 million and must be repaid within two years. d) Exempting certain funds from being included in the calculation of the 1% balance trial courts are allowed to carry-over from one fiscal year to the next. 2)Allows courts, or, in some instances, counties on behalf of courts, to utilize the state's Tax Intercept Program, operated by the Franchise Tax Board (FTB) with participation by the State Controller's Office (SCO), to intercept tax refunds, lottery winnings, and unclaimed property from individuals who are delinquent in paying fines, fees, assessments, surcharges, SB 75 Page 2 or restitution ordered by the court. Current law allows FTB and SCO to require the court to obtain and provide the social security number of a debtor prior to running the intercept. This bill provides that courts will no longer be required to provide social security numbers to FTB. Instead, FTB and SCO will be required to use their existing legal authority to obtain social security numbers from the Department of Motor Vehicles. This change will reduce court costs by eliminating the need to dedicate resources to obtaining social security numbers from debtors. 3)Increases the fee charged for mailing a plaintiff's claim to each defendant in a small claims action, from $10 to $15, to cover costs associated with postal rate increases. This change is projected to generate $200,000 in additional revenue. 4)Eliminates the sunset for public presentation of trial court budgets. This change will permanently require each trial court, prior to adopting a budget plan for the fiscal year, to provide the public with notice of, and an opportunity for input on, the trial court's proposed budget. 5)Increases the fee for Exemplification of a Record from $20 to $50. Exemplification involves a triple certification attesting to the authenticity of a copy of a record by the clerk and the presiding judicial officer of the court for use as evidence by a court or other entity outside of California. This fee increase is projected to generate $165,000 in additional revenue. 6)Makes various amendments to the Community Corrections Performance Incentive Act, by: a) Requiring the AOC to collect additional data on the felony probation population relating to the number of Penal Code Section 1170(h) convictions; b) Revising the probation failure rate calculation to include revocations resulting in county jail incarceration; c) Adding a third tier of performance incentive payments for counties that demonstrate improved felony probation outcomes, but that still have combined probation failure SB 75 Page 3 rates above the 2006 through 2008 baseline statewide average; d) Extending the $200,000 minimum payment to counties performing better than the statewide average. e) Requiring payments to counties that did not improve upon outcomes contingent on those counties providing plans on how they will improve. f) Eliminating references to providing information to California Department of Corrections and Rehabilitation. g) Adding mandatory supervision and post release community supervision to the definitions of community corrections and local supervision. h) Specifying that moneys deposited into a county's Community Corrections Performance Incentive Fund, for implementing a community corrections program, be made available to the chief probation officer within 30 days of the moneys being deposited. i) Adding reporting requirements regarding mandatory supervision and post release community supervision populations. j) Allowing the Department of Finance, in developing a revised formula, for allocation of Community Performance Incentive Act Funding, to take into account mandatory supervision and post release community supervision failure to prison rates. aa) Appropriating $1 million from the State Community Corrections Performance Incentive Fund to the judicial branch for the costs of implementing and administering this program. 7)Specifies that audits of the AOC, the Habeas Corpus Resource Center, the Supreme Court, and the appellate courts shall commence on or before July 1, 2013. 8)Specifies that each judicial branch entity shall pay the State Auditor for costs of audits. SB 75 Page 4 9)Reduces the number of trial court audits to five occurring on a biennial basis while continue the biennial audit of the AOC. 10)Modifies statute to make the court's contracting audit program a more selective, risk-based audit program. 11)Authorizes court staff to waive costs associated with court-appointed counsel services in dependency cases if repayment would interfere with an ongoing family reunification process, thereby eliminating the need for a court hearing. 12)Requires the Judicial Council to perform an evaluation of the Long Beach Courthouse Project by comparing it to other similar state run court construction projects. The Long Beach courthouse project is being completed through a public-private-partnership arrangement. It is a four story, one-block building, that includes 31 courts, parking, offices for lease and retail space. The state takes possession of the building on August 31, 2013, and begins 35 years of payments starting in September of $34.8 million, rising to $54.2 million in fiscal year 2014-15 and then increasing annually with a specified inflator. These payments pay for all costs (capital and operating) related to the building for 35 years. 13)Contains an appropriation allowing this bill to take effect immediately upon enactment. Analysis Prepared by : Marvin Deon / Budget / (916) 319-2099 FN: 0001161