BILL ANALYSIS Ó AB 2629 Page 1 GOVERNOR'S VETO AB 2629 (Roger Hernández) As Enrolled September 2, 2016 2/3 vote -------------------------------------------------------------------- |ASSEMBLY: |52-26 |(June 2, 2016) |SENATE: |24-13 |(August 22, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- -------------------------------------------------------------------- |ASSEMBLY: |51-27 |(August 25, | | | | | | |2016) | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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: AB 2629 Page 2 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.) 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: AB 2629 Page 3 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. 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: AB 2629 Page 4 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 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 AB 2629 Page 5 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 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 AB 2629 Page 6 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. 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 AB 2629 Page 7 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 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 518, 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 AB 2629 Page 8 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 was scheduled to sunset effective January 1, 2017. AB 2192 (Salas), Chapter 567, Statutes 2016, extends the sunset date for the $300,000 Transcript Reimbursement Fund until January 1, 2020 and increases the sub-fund available for unrepresented litigants to $75,000. GOVERNOR'S VETO MESSAGE: "This bill would increase the fee that court reporters can charge for a court proceeding transcript. "This bill results in additional pressure to the General Fund by increasing costs to the judicial system. It covers spending that is more appropriately considered during the budget process." Analysis Prepared by: Leora Gershenzon / JUD. / (916) 319-2334 FN: 0005071 AB 2629 Page 9