BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2881


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          Date of Hearing:  April 19, 2016


                           ASSEMBLY COMMITTEE ON JUDICIARY


                                  Mark Stone, Chair


          AB 2881  
          (Committee on Judiciary) - As Amended April 12, 2016


                                  PROPOSED CONSENT


          SUBJECT:  CIVIL LAW: OMNIBUS BILL


          KEY ISSUE:  SHOULD A NUMBER OF SMALL BUT IMPORTANT TECHNICAL,  
          CLARIFYING, AND MOSTLY NOn-SUBSTANTIVE CHANGES TO THE CIVIL LAW  
          BE MADE TO VARIOUS SECTIONS OF THE CALIFORNIA CODES?


                                      SYNOPSIS


          This non-controversial bill is the Assembly Judiciary  
          Committee's biennial omnibus civil law bill.  The purpose of the  
          omnibus bill is to increase the efficiency of the legislative  
          process, conserve legislative resources, and eliminate the need  
          to unnecessarily hear a number of technical, clarifying, or  
          modest stand-alone bills that might otherwise have to be  
          introduced and heard separately through the legislative process.  
           This year's omnibus bill incorporates various proposals  
          submitted by various groups seeking to make technical,  
          clarifying, or other modest changes to civil law, including the  
          State Controller's Office, the California Law Revision  
          Commission, The Trust and Estates Section of the State Bar,  








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          Western Manufactured Housing Communities Association, Deposition  
          Reporters Association of California, and the California  
          Newspaper Publishers Association.  It is believed that most, if  
          not all of these provisions are non-controversial.  The omnibus  
          bill has no opposition on file. 


          SUMMARY:  Makes various changes to the California codes as part  
          of the Committee's civil law omnibus bill.  Specifically, this  
          bill:


          1)Establishes public notice districts as the place for the  
            publication of notice as provided, and repeals provisions  
            regarding judicial districts, as provided.


          2)Adds "mobilehome" to the notice provided by a hosting platform  
            to occupants listing a residence for short-term rental on a  
            hosting platform.


          3)Requires the Controller to establish and maintain trial court  
            revenue distribution guidelines.


          4)Redefines a "capital asset" as property with an estimated life  
            of one year or greater, other than inventory, for the purpose  
            of trust planning.


          5)Extends the sunset relating to non-certification of a court  
            reporter's instant visual display of testimony or proceedings.


          6)Clarifies the definition of "officer" in the California Public  
            Records Act.










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          7)Makes other technical and conforming changes.



          EXISTING LAW:


          1)Provides that where judicial districts in a county have been  
            consolidated, or where the municipal and superior courts in a  
            county have unified, the territory embraced within the  
            respective prior component judicial districts shall be  
            separate judicial districts for the purpose of publication  
            within a judicial district.  (Government Code Section  
            71042.5.)


          2)Requires a county recorder to keep on file a map approved by  
            the county surveyor establishing the boundaries of a judicial  
            district, as provided, that shows the boundaries of all  
            consolidated or unified districts and component districts as  
            of the date of consolidation or unification.  (Government Code  
            Section 71042.6.)


          3)Requires a hosting platform to provide a notice, as specified,  
            to occupants listing a residence for short-term rental on a  
            hosting platform.  (Business and Professions Code Section  
            22592.)


          4)Requires the Controller to establish, supervise, and as  
            necessary revise a uniform accounting system, including a  
            system of audit, to the end that all fines, penalties,  
            forfeitures, and fees assessed by courts, and their collection  
            and appropriate disbursement, shall be properly and uniformly  
            accounted for.  (Government Code Section 71380.)


          5)Requires each installment or partial payment of a fine,  








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            penalty, forfeiture or fee to be prorated among the state and  
            local shares according to the uniform accounting system  
            established by the State Controller, as provided.  (Penal Code  
            Section 1462.5.)


          6)Defines "capital asset" as defined in Section 1221 of the  
            Internal Revenue Code for purposes of allocations of receipts  
            during the administration of a trust.  (Probate Code Section  
            16350.)


          7)Provides that the report of the official reporter, or official  
            reporter pro tempore, of any court, duly appointed and sworn,  
            when transcribed and certified as being a correct transcript  
            of the testimony and proceedings in the case, is prima facie  
            evidence of that testimony and proceedings.  (Code of Civil  
            Procedure Section 273.)


          8)Provides that until January 1, 2017, the instant visual  
            display of the testimony or proceedings, or both, shall not be  
            certified and cannot be used, cited, distributed, or  
            transcribed as the official certified transcript of the  
            proceedings.  Further provides that until January 1, 2017, the  
            instant visual display of the testimony or proceedings, or  
            both, shall not be cited or used in any way or at any time to  
            rebut or contradict the official certified transcript of the  
            proceedings as provided by the official reporter or official  
            reporter pro tempore.  (Ibid.)


          9)Defines civil executive officers of the state, as provided.   
            (Government Code Sections 1001.) 


          FISCAL EFFECT:  As currently in print this bill is keyed fiscal.










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          COMMENTS:  This bill is the Assembly Judiciary Committee's  
          biennial omnibus civil law bill.  The purpose of the omnibus  
          bill is intended to increase the efficiency of the legislative  
          process, conserve legislative resources, and eliminate the need  
          to unnecessarily hear a number of technical, clarifying, or  
          modest stand-alone bills that might otherwise have to be  
          introduced and heard separately through the legislative process.  
           Although it appears that most-if not all of these  
          provisions-are non-controversial, this analysis provides a brief  
          review of most of this bill's provisions.


          Implements recommendations by the California Law Revision  
          Commission involving the publication of certain legal notices.   
          Under existing law, certain types of notices must be published  
          in a "judicial district" - for example, a notice of a  
          foreclosure sale, or a sale of stored property.  Judicial  
          districts were originally established for the business and  
          elections of the courts of limited jurisdiction.  However, due  
          to court consolidation, these boundaries have largely become  
          obsolete; and yet, current law still requires certain notices to  
          be published in a judicial district.  Additionally, the  
          boundaries of these judicial districts are often difficult to  
          find.  Indeed, this Committee has learned that some  
          jurisdictions no longer have these maps on hand, and parties who  
          file the required notices must go to a private company to  
          retrieve them in order to fully comply with the law.   
          Accordingly, it seems safe to say that some notices may be  
          published in the wrong location, raising questions about the  
          legal validity of that notice.  This bill implements the work of  
          the Law Revision Commission which has painstakingly reviewed and  
          retrieved historical judicial district maps, and has established  
          new "public notice districts."  Under this bill, the public  
          notice districts are described by reference to cities and towns  
          - hewing closely to areas of historical judicial districts.   
          This bill, consistent with other Law Revision  
          Commission-sponsored bills, maintains the Legislature's intent  
          in establishing public notice districts for public notice  
          purposes, minimizes disruption to the current practice, and  








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          reduces any confusion for parties.


          Clarifies that "mobilehome" is part of the various residences  
          included in a notice required by a hosting platform that  
          facilitates the rental of residential units.  SB 761 (Hall,  
          Chap. 239, Stats. 2015) requires a hosting platform that  
          facilitates the rental of residential units offered for tourist  
          or transient use, as defined, to provide a notice to the  
          occupant listing the residence.  The notice specifies various  
          residences (e.g. room, home, condominium, apartment) but  
          inadvertently leaves out the term "mobilehome."  This bill makes  
          that update and statutory correction.


          Provides additional clarity to the distinct accounting roles  
          performed by the Judicial Council and the State Controller over  
          state trial courts.  The Judicial Council and the State  
          Controller have important and distinct roles in overseeing our  
          trial courts.  Generally, the Judicial Council oversees the  
          trial courts' budgetary, fiscal, and accounting procedures,  
          whereas the State Controller oversees trial court audits and  
          provides guidelines on the distribution of trial court revenues,  
          such as fines, fees, and penalties assessed by the courts.   
          Currently, the Judicial Council consults with the State  
          Controller to maintain appropriate regulations for recordkeeping  
          and accounting by the courts.  However, current law does not  
          properly reflect the distinctive roles of the Judicial Council  
          and the State Controller.  This bill clears up the division of  
          responsibilities between the Judicial Council and the State  
          Controller by clarifying that the State Controller maintains  
          trial court revenue distribution guidelines, and not accounting  
          systems.


          Clarifies the definition of "capital asset" for the purpose of  
          trust planning.  Generally, the characterization of money paid  
          into a trust (either income or principal) can determine who gets  
          the benefit of the distribution for certain trusts: income goes  








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          to the income- or life beneficiaries, while principal goes to  
          the remainder beneficiaries.  Current law establishes default  
          rules to determine what is "income" and "principal."  Currently,  
          distributions from a business entity are considered income,  
          unless an exception applies.  One of these exceptions is the  
          proceeds from the sale of a business entity's capital assets.   
          In that instance, those distributions are considered principal.   
          As it stands, the definition of capital asset restates the  
          definition under federal tax law.  However, the federal  
          definition does not capture certain kinds of property used in a  
          person's trade or business commonly distributed to trusts (e.g.  
          proceeds from the sale of depreciable real property).  This  
          narrow definition has created confusion on what is considered  
          income or principal, and is inconsistent with the intent of  
          parties who create trusts.  This bill updates this definition,  
          and redefines a capital asset as property with an estimated life  
          of one year or greater, other than inventory.


          Extends the sunset relating to non-certification of a court  
          reporter's instant visual display of testimony or proceedings.   
          AB 170 (Mendoza, Chap. 87, Stats. 2009) provides that a court  
          reporter's instant visual display of testimony or proceedings  
          (commonly known as "real-time reporting"), or both, may not be  
          certified and cannot be used, cited, distributed, or transcribed  
          as the official transcript of the proceedings.  This provision  
          of law will sunset on January 1, 2017.  In order to allow the  
          Legislature additional time to assess the technology of  
          real-time reporting to ensure that it can provide access to  
          justice, to a level similar to traditional court reporting  
          services, this bill extends the sunset to 2022.


          Clarifies the definition of "officer" in the California Public  
          Records Act.  Under the California Public Records Act, any  
          "state agency" is required to disclose public records unless it  
          is subject to an exemption.  Currently, a "state agency" is  
          defined as any "state office, officer, department, division,  
          bureau, board, and commission or other state body or agency,"  








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          excluding the legislature and the courts.  However, the statute  
          does not define "officer."  While the meaning of "officer" would  
          appear to have the same meaning of "executive officers" provided  
          under Section 1001 of the Government Code, the law is unclear as  
          to whether members of state commissions are "officers" for  
          purposes of the CPRA.  This bill makes that update and statutory  
          correction.  


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Law Revision Commission


          State Controller Betty Yee


          Western Manufactured Housing Communities Association


          The Trusts and Estates Section of the State Bar (TEXCOM)


          Deposition Reporters Association of California


          California Newspaper Publishers Association




          Opposition









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          None on file




          Analysis Prepared by:Eric Dang / JUD. / (916) 319-2334