BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2629


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          2629 (Roger Hernández)


          As Amended  August 15, 2016


          Majority vote


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          |ASSEMBLY:  |52-26 |(June 2, 2016) |SENATE: |24-13 |(August 22,      |
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          Original Committee Reference:  JUD.




          SUMMARY:  Increases the fees charged by court reporters for  
          original transcripts by 33% and for copies by 45%, through step  
          increases over the next five years, commencing in 2017.   
          Specifically, this bill:   


          1)Provides that the fee for transcription for the original  
            printed copy, which reflects an amount assessed for each 100  
            words (also known as the "folio rate") will be charged as  
            follows:


             a)   From January 1, 2017 to December 31, 2018:  $0.93 per  
               100 words (an increase from $0.85.)










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             b)   From January 1, 2019 to December 31, 2020:  $1.03 per  
               100 words.


             c)   Beginning January 1, 2021:  $1.13 per 100 words.


          2)Provides that the fee for each copy purchased at the same time  
            by the court, party, or other person purchasing the original  
            will be charged as follows:


             a)   From January 1, 2017 to December 31, 2018:  $0.16 per  
               100 words (an increase from $0.15).


             b)   From January 1, 2019 to December 31, 2020:  $0.18 per  
               100 words.


             c)   Beginning January 1, 2021:  $0.20 per 100 words.


          3)Provides that the fee for a first copy to any court, party, or  
            other person who does not simultaneously purchase the original  
            will be charged as follows:


             a)   From January 1, 2017 to December 31, 2018:  $0.21 per  
               100 words (an increase from $0.20), and $0.16 for each  
               additional copy purchased at the same time.


             b)   From January 1, 2019 to December 31, 2020:  $0.23 per  
               100 words, and $0.18 for each additional copy purchased at  
               the same time.


             c)   Beginning January 1, 2021:  $0.26 per 100 words, and  
               $0.20 for each additional copy purchased at the same time.










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          4)Clarifies that the fee for special daily copy service  
            transcription is an additional 50%.


          5)Requires the Judicial Council to report to the Legislature, by  
            January 1, 2021, on recommendations to increase uniformity in  
            transcript rate expenditures with the intent not to reduce the  
            rates of pay or overall compensation of court reporters or  
            jeopardize collective bargaining agreements.


          6)Makes legislative findings and declarations.


          The Senate amendments reduce the transcript fee increase for  
          copies and require the Judicial Council study.


          EXISTING LAW:   


          1)Specifies the following transcript-related fees:


             a)   The fee for transcription for the original copy is $0.85  
               for each 100 words.


             b)   The fee for each copy purchased at the same time by the  
               court, party, or other person purchasing the original is  
               $0.15 per 100 words.


             c)   The fee for a first copy to any court, party, or other  
               person who does not simultaneously purchase the original is  
               $0.20 per 100 words, and $0.15 for each additional copy  
               purchased at the same time.  


          2)Provides that, notwithstanding 1) above, if a local trial  
            court had established transcription fees in effect on January  
            1, 2012 based on an estimate as to the number of words or  








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            folios on a typical transcript page, those transcription fees  
            shall be the transcription fees for proceedings in those trial  
            courts, and the policy or practice for determining  
            transcription fees in those trial courts shall not be  
            unilaterally changed.  


          3)Establishes the Transcript Reimbursement Fund (Fund) for the  
            purpose of providing shorthand reporting services to  
            low-income litigants in civil cases who are unable to  
            otherwise afford those services.  More specifically, requires  
            funds generated by court reporter licensing fees, in excess of  
            funds needed to support the Court Reporter Board's operating  
            budget, to be used by the Board for the purpose of  
            establishing and maintaining the Fund.  Authorizes the Fund  
            only until January 1, 2017, unless another statute is enacted  
            before that date that deletes or extends the sunset date.  


          4)Permits, until January 1, 2017, a person appearing pro se at  
            any stage of the case to apply to receive assistance with  
            transcription costs from the Fund, subject to a limit of  
            $1,500 per case and not to exceed $30,000 annually for all  
            cases.  


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee:


          1)Trial court costs:  Potentially significant increase in annual  
            court costs (General Fund*) resulting from the transcript fee  
            increases imposed incrementally over five years. Court  
            expenditures on transcripts total about $20 million annually.  
            Based on the proposed fee increases, costs to the courts  
            statewide could potentially increase incrementally by up to  
            $1.8 million to $6.6 million (General Fund*) over the  
            five-year period, and annually thereafter, assuming a  
            consistent level of transcription usage and adoption of the  
            mandated rates statewide. However, staff notes the estimated  
            statewide costs are projected to be lower to account for the  
            proportion of costs attributable to local courts with pre-2012  








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            established rates that may remain unchanged. At the time of  
            this analysis, the data indicating the proportion of annual  
            costs attributable to courts with grandfathered rates was  
            unavailable.


          2)Transcript Reimbursement Fund:  Potential future increases in  
            reimbursements paid out of the Transcript Reimbursement Fund  
            (Special Fund**) for higher reimbursement costs for  
            transcripts for low income litigants, to the extent the Court  
            Reporters Board and its administration of the Transcript  
            Reimbursement Fund are extended beyond the impending sunset  
            date of January 1, 2017.


          *Trial Court Trust Fund   **Transcript Reimbursement Fund 


          COMMENTS:  A court transcript is a verbatim record of what  
          occurred at a court hearing.  Without that official record of  
          what transpired at a court proceeding, litigants may be unable  
          to draft orders effectively and will generally not be able to  
          appeal decisions, and those attempting to recount what actually  
          happened during proceedings will be unable to so with any degree  
          of accuracy.  The fee charged by court reporters for original  
          transcripts has not been increased since 1990.  This bill seeks  
          to increase the fee for original transcripts by approximately  
          33% and for copies by approximately 45%, through step increases  
          over the next five years, commencing in 2017.  


          The last increase in the transcript fee occurred through SB 2376  
          (Presley), Chapter 505, Statutes of 1990, which increased the  
          transcription fee, effective 1991, for court reporters from  
          $0.70 to $0.85 per 100 words for an original transcript, and  
          from $0.10 to $0.15 per 100 words for each copy of a transcript  
          ordered at the same time as the original.  Since 1990, the  
          Consumer Price Index, as calculated by the Bureau of Labor  
          Statistics, has increased by 81%, but the cost of transcriptions  
          has not increased.  










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          Access to a court transcript is an important component of access  
          to justice.  Without the official record of what transpired at a  
          court proceeding, litigants may be unable to draft orders  
          effectively and will generally not be able to appeal decisions,  
          and those attempting to recount what actually happened during  
          proceedings will be unable to so with any degree of accuracy.   
          For example, when issuing a judgment in a contested family law  
          matter, the judge often requires one of the parties to prepare a  
          written judgment memorializing the orders of the court.  Without  
          a transcript, preparation of a judgment, and therefore enforcing  
          the orders made by the judge, may be all but impossible.   
          Similarly, if a litigant seeks to modify a judgment based on a  
          change of circumstances, it is often necessary to understand,  
          and communicate to the court, the circumstances the court  
          initially took into account in making a custody or support  
          order, for example.  Absent a transcript, this too may be very  
          difficult.


          The Transcript Reimbursement Fund for represented and  
          unrepresented indigent litigants.  In order to defray the costs  
          of court transcripts for indigent litigants, the Legislature  
          created the Transcript Reimbursement Fund.  The Fund was  
          established by AB 1017 (Alatorre), Chapter 1350, Statutes of  
          1980, and is maintained by a percentage of the dues imposed on  
          certified shorthand reporters.  AB 1017 was sponsored by the  
          Western Center on Law and Poverty and California Rural Legal  
          Assistance who argued that "because indigent litigants are  
          unable to pay for transcripts they are effectively denied  
          appropriate legal remedies."  The Fund is used to reimburse  
          court reporters the cost of preparing official court and  
          deposition transcripts for indigent litigants, as defined,  
          served by a qualified legal services project, qualified support  
          center or other qualified project, or a pro bono attorney.   
          Because of concerns that the huge volume of unrepresented  
          parties could overwhelm the Fund, it had historically excluded  
          litigants representing themselves at any stage of the case.  The  
          Fund receives $300,000 each year from court reporter license  
          fees.  


          Unfortunately, not all indigent litigants are able to secure  








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          counsel to represent them.  In fact, most indigent litigants in  
          areas such as family law are forced to represent themselves in  
          court.  In response to concerns that indigent, unrepresented  
          litigants have no ability to access the Fund, SB 1181 (Cedillo),  
          Chapter 581, Statutes of 2010, established a small sub-fund to  
          help cover the costs of transcripts for indigent, unrepresented  
          litigants.  That sub-fund is limited to $30,000 annually, which  
          is taken from the $300,000 in the Fund for represented  
          litigants, and covers, at most, $1,500 per case.  It appears  
          that while the total Fund has not been fully expended in the  
          last decade, the $30,000 sub-fund for unrepresented litigants is  
          used up early every year, so that many unrepresented litigants  
          are still unable to obtain assistance from the Fund.


          Regardless of the effectiveness of both programs in meeting the  
          needs of indigent litigants, both the Fund for indigent  
          represented litigants and the sub-fund for unrepresented  
          litigants are scheduled to sunset effective January 1, 2017.  In  
          order to help provide access to justice for indigent litigants,  
          the Transcript Reimbursement Fund for both represented and  
          unrepresented litigants must be continued beyond this year.   
          Moreover, given that raising the cost of a transcript by 33% for  
          indigent litigants may result in even less access to transcripts  
          than they currently have, it is important that the Transcript  
          Reimbursement Fund, particularly the fund for unrepresented  
          litigants which today is underfunded, be increased at the same  
          rate that the transcript fees are being increased by this bill.   
          This will help ensure that indigent litigants have at least the  
          same access to justice as they have today.  AB 2192 (Salas) of  
          the current legislative session would extend the sunset date for  
          the $300,000 Transcript Reimbursement Fund until January 1, 2020  
          and increase the sub-fund available for unrepresented litigants  
          to $75,000.


          Analysis Prepared by:                                             
                          Leora Gershenzon / JUD. / (916) 319-2334    FN:   
          0004261











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