BILL ANALYSIS Ó AB 1123 Page 1 Date of Hearing: May 6, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1123 (Mayes) - As Introduced February 27, 2015 ----------------------------------------------------------------- |Policy |Judiciary |Vote:|10 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill authorizes counties that have established dispute resolution programs to contract with, and transfer operation of, these programs to their respective county superior courts, which assume all rights and responsibilities connected with the AB 1123 Page 2 programs. A county would also be required to also transfer to the court any funds received for administering the program, and all future program funding would go directly to the court. FISCAL EFFECT: Any costs to the Department of Consumer Affairs (DCA), which is charged with oversight and enforcement of alternative dispute resolution programs, would be minor and absorbable. COMMENTS: 1)Background. The Dispute Resolution Programs Act of 1986 provides for the establishment, funding and use of local dispute resolution programs. In considering the Act's implementation, the Legislature determined that the resolution of disputes could be unnecessarily costly, time-consuming, and complex when achieved through formal court proceedings. In an attempt to achieve more effective and efficient dispute resolution, the Legislature encouraged greater use of alternatives to litigation, such as mediation, conciliation, and arbitration. 2)Purpose. Although some counties contract with their superior courts to handle the operations of their alternative dispute resolution programs, their authority to do so is not clear in the Act. This bill, sponsored by the County of San Bernardino, will allow counties and courts to formalize their existing practices of transferring the responsibility for operating such programs to courts and will allow other counties and courts who may wish to do so, to contract for the transfer of alternative dispute resolution programs and their revenue, from the county to the court. AB 1123 Page 3 Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081