BILL ANALYSIS                                                                                                                                                                                                    



                                                                  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