Amended in Assembly April 7, 2016

Amended in Assembly March 29, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2458


Introduced by Assembly Member Obernolte

February 19, 2016


An act to amend Section 68502.5 of, and to repeal and add Section 77203 of, the Government Code, relating to courts.

LEGISLATIVE COUNSEL’S DIGEST

AB 2458, as amended, Obernolte. Courts: unexpended funds.

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Existing law requires the Judicial Council to adopt a budget and allocate funding for trial courts. Existing law requires the Judicial Council, when allocating funding to trial courts, to set a preliminary allocation, as specified. Existing law requires the Judicial Council to set aside specified funds for unforeseen emergencies, unanticipated expenses for existing programs, and unavoidable funding shortfalls, and to allocate those funds, as specified. Existing law requires the Judicial Council to annually report to the Legislature regarding the use of those funds.

end insert
begin insert

This bill would remove the requirement that the Judicial Council set preliminary allocations, set aside funds, and report to the Legislature regarding the use of those funds.

end insert

Existing law, until June 30, 2014, authorized a trial court to carry unexpended funds over from one fiscal year to the next. Existing law, commencing June 30, 2014, authorizes a trial court to carry over unexpended funds in an amount not to exceed 1% of the court’s operating budget from the prior fiscal year. Existing law exempts certain funds from the calculation of the 1% authorized to be carried over from the prior fiscal year.

This bill would repeal the 1% limitation described above,begin delete and authorize a trial court to carry unexpended funds over from one fiscal year to the next. The bill would also make conforming changes.end deletebegin insert and, instead, would allow the Judicial Council to authorize a trial court to carry unexpended funds over from one fiscal year to the next.end insert

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 68502.5 of the Government Code is
2amended to read:

3

68502.5.  

(a) The Judicial Council may, as part of its trial court
4budget process, seek input from groups and individuals as it deems
5appropriate, including, but not limited to, advisory committees
6and the Administrative Director of the Courts. The trial court
7budget process may include, but is not limited to, the following:

8(1) The receipt of budget requests from the trial courts.

9(2) The review of the trial courts’ budget requests and evaluate
10them against performance criteria established by the Judicial
11 Council by which a court’s performance, level of coordination,
12and efficiency can be measured.

13(3) The annual adoption of the projected cost in the subsequent
14fiscal year of court operations, as defined in Section 77003, for
15each trial court. This estimation shall serve as a basis for
16recommended court budgets, which shall be developed for
17comparison purposes and to delineate funding responsibilities.

18(4) The annual approval of a schedule for the allocation of
19moneys to individual courts and an overall trial court budget for
20forwarding to the Governor for inclusion in the Governor’s
21proposed State Budget. The schedule shall be based on the
22performance criteria established pursuant to paragraph (2), on a
23minimum standard established by the Judicial Council for the
24operation and staffing of all trial court operations, and on any other
25factors as determined by the Judicial Council. This minimum
26standard shall be modeled on court operations using all reasonable
27and available measures to increase court efficiency. The schedule
28of allocations shall ensure that all trial courts receive funding for
P3    1the minimum operating and staffing standards before funding
2operating and staffing requests above the minimum standards, and
3shall include incentives and rewards for any trial court’s
4implementation of efficiencies and cost saving measures.

5(5) The reallocation of funds during the course of the fiscal year
6to ensure equal access to the trial courts by the public, to improve
7trial court operations, and to meet trial court emergencies. Neither
8the state nor the counties shall have any obligation to replace
9moneys appropriated for trial courts and reallocated pursuant to
10this paragraph.

11(6) The allocation of funds in the State Trial Court Improvement
12and Modernization Fund to ensure equal access to trial courts by
13the public, to improve trial court operations, and to meet trial court
14emergencies, as expressly authorized by statute.

15(7) Upon approval of the trial courts’ budget by the Legislature,
16the preparation during the course of the fiscal year of allocation
17schedules for payments to the trial courts, consistent with Section
1868085, which shall be submitted to the Controller’s office at least
1915 days before the due date of any allocation.

20(8) The establishment of rules regarding a court’s authority to
21transfer trial court funding moneys from one functional category
22to another in order to address needs in any functional category.

23(9) At the request of the presiding judge of a trial court, an
24independent review of the funding level of the court to determine
25whether it is adequate to enable the court to discharge its statutory
26and constitutional responsibilities.

27(10) From time to time, a review of the level of fees charged
28by the courts for various services and prepare recommended
29adjustments for forwarding to the Legislature.

30(11) Provisions set forth in rules adopted pursuant to Section
3177206 of the Government Code.

32(b) Courts and counties shall establish procedures to allow for
33the sharing of information as it relates to approved budget proposals
34and expenditures that impact the respective court and county
35budgets. The procedures shall include, upon the request of a court
36or county, that a respective court or county shall provide the
37requesting court or county a copy of its approved budget and, to
38the extent possible, approved program expenditure component
39information and a description of budget changes that are anticipated
40to have an impact on the requesting court or county. The Judicial
P4    1Council shall provide to the Legislature on December 31, 2001,
2and yearly thereafter, budget expenditure data at the program
3component level for each court.

4(c) begin delete(1)end deletebegin deleteend deleteThe Judicial Council shall retain the ultimate
5responsibility to adopt a budget and allocate funding for the trial
6 courts and perform the other activities listed in subdivision (a) that
7best ensure their ability to carry out their functions, promote
8implementation of statewide policies, and promote the immediate
9implementation of efficiencies and cost saving measures in court
10operations, in order to guarantee equal access to the courts.

begin delete

11(2) (A) When setting the allocations for trial courts, the Judicial
12Council shall set a preliminary allocation in July of each fiscal
13year. The preliminary allocation shall include an estimate of
14available trial court reserves as of June 30 of the prior fiscal year
15and each court’s preliminary allocation shall be offset by the
16amount of reserves authorized to be carried over pursuant to
17Section 77203. In January of each fiscal year, after review of
18available trial court reserves as of June 30 of the prior fiscal year,
19the Judicial Council shall finalize allocations to trial courts and
20each court’s finalized allocation shall be offset by the amount of
21reserves authorized to be carried over pursuant to Section 77203.

22(B) Upon preliminary determination of the allocations to trial
23courts pursuant to subparagraph (A), the Judicial Council shall set
24aside 2 percent of the total funds appropriated in Program 45.10
25of Item 0250-101-0932 of the annual Budget Act and these funds
26shall remain in the Trial Court Trust Fund. These funds shall be
27administered by the Judicial Council and be allocated to trial courts
28for unforeseen emergencies, unanticipated expenses for existing
29programs, or unavoidable funding shortfalls. Unavoidable funding
30shortfall requests for up to 1.5 percent of these funds shall be
31submitted by the trial courts to the Judicial Council no later than
32October 1 of each year. The Judicial Council shall, by October 31
33of each year, review and evaluate all requests submitted, select
34trial courts to receive funds, and notify those selected trial courts.
35By March 15 of each year, the Judicial Council shall distribute the
36 remaining funds if there has been a request from a trial court for
37unforeseen emergencies or unanticipated expenses that has been
38reviewed, evaluated, and approved. Any unexpended funds shall
39be distributed to the trial courts on a prorated basis.

P5    1(C) The Judicial Council shall, no later than April 15 of each
2year, report to the Legislature, pursuant to Section 9795 of the
3Government Code, and to the Department of Finance all requests
4and allocations made pursuant to subparagraph (B).

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5

SEC. 2.  

Section 77203 of the Government Code is repealed.

begin delete6

SEC. 3.  

Section 77203 is added to the Government Code, to
7read:

8

77203.  

A trial court may carry over all unexpended funds from
9the court’s operating budget from the prior fiscal year.

end delete
10begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 77203 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
11read:end insert

begin insert
12

begin insert77203.end insert  

The Judicial Council may authorize a trial court to
13carry unexpended funds over from one fiscal year to the next.

end insert


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