BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1015
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          Date of Hearing:   April 19, 2006

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                   SB 1015 (Murray) - As Amended:  April 17, 2006 

          Policy Committee:                              JudiciaryVote:7-0

          Urgency:     Yes                  State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill modifies the existing statute designed to shield  
          financial information in marital dissolution cases, in order to  
          address a finding of unconstitutionality made by the appellate  
          court in a recent decision.  Specifically, this bill:

          1)Provides that, upon request, through a noticed motion by  
            either party in a divorce proceeding, the court shall order  
            redacted that portion of a filed pleading containing specified  
            financial information about the parties, if the court finds  
            all of the following:

             a)   An overriding interest that overcomes the public's right  
               of access to public records.
             b)   The overriding interest supports redaction.
             c)   A substantial probability that the overriding interest  
               will be prejudiced without redaction.
             d)   The proposed redaction is narrowly tailored.
             e)   No less restrictive means exist to achieve the  
               overriding interest.

          2)Requires the court, in making the above determination, to  
            balance the public interest for access to judicial proceedings  
            with the privacy rights of spouses, children, and other  
            interested parties.

          3)Provides that any pleading redacted pursuant to this measure  
            may not be restored except upon petition to the court and a  
            showing of good cause.

          4)Requires the Judicial Council, by July 1, 2007, to adopt rules  
            setting forth the procedures for redacting and restoring  








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            pleadings pursuant to the above.

           FISCAL EFFECT  

          In 2004, about 150,000 petitions for marital dissolution were  
          filed with the courts statewide. The number of motions that  
          would be made seeking redaction of financial information is  
          unknown, but would probably involve, at most, a very small  
          percentage of total petitions. This would result in additional  
          court workload that more likely could marginally delay other  
          court proceedings rather than directly increase overall court  
          costs.

          The courts would likely receive additional revenue associated  
          with this new workload. The new Rule of Court to be adopted by  
          the Judicial Council will likely include a provision allowing  
          for a fee to be charged to the parties in cases where a  
          substantial amount of material being submitted for redaction  
          requires the appointment of a court referee. A similar fee is  
          currently authorized under Court Rule 243.1, involving the  
          sealing of court records.

          COMMENTS  

           1)Background and Purpose  . In 2004, the Legislature, without  
            dissent, passed AB 782/Chapter 45 (Kehoe)-an urgency measure  
            establishing a new mechanism for divorcing or separating  
            parties that required family courts to seal entire pleadings  
            that contained any of their financial information. The stated  
            purpose of that bill was to protect divorcing couples from  
            being forced to expose their private financial information to  
            public view solely because they were getting divorced.  On  
            January 20, 2006, however, the Second District Court of  
            Appeals, based in Los Angeles, held that the key provision of  
            AB 782-Family Code Section 2024.6, was an unconstitutional  
            violation of the First Amendment's right of public access to  
            court proceedings. 

            SB 1015 seeks to address the court's declared constitutional  
            infirmities in Family Code Section 2024.6 by, among other  
            things, modifying Family Code Section 2024.6 to require  
            targeted redaction of financial information rather than the  
            broad sealing of entire court documents. 

            The most recent amendments, as adopted by the Assembly  








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            Judiciary Committee, attempt to address concerns that the  
            proposed statutory changes possessed similar constitutional  
            flaws identified in the recent appellate decision. (The  
            committee's analysis includes a thorough discussion of the  
            legislative history and the relevant constitutional issues.)  
            These amendments attempt to provide the court with discretion  
            to weigh the parties' interest in having their personal  
            financial information redacted with the public's interest in  
            open access to court records. The five conditions that would  
            have to be satisfied for the court to order redaction mirror  
            conditions previously adopted by the Judicial Council under  
            the California Rule of Court 243.1 for the sealing of court  
            records. 

           2)Author's Arguments in Support  :  The author believes that,  
            while open records principles should generally govern judicial  
            records and court proceedings, a carefully-tailored exception  
            is warranted for records and information in divorce cases that  
            arguably affect only the parties to the dissolution or legal  
            separation.  The author cites numerous anecdotes not only of  
            stolen identities but also of intrusive and allegedly unjust  
            media publicity about divorcing couples with substantial  
            assets.  In most cases, the author states, the public clearly  
            has no need to know what assets a divorcing couple has  
            accumulated, where those assets are located, and how those  
            assets are to be divided. 

           3)Opposition  includes the California Newspaper Publishers  
            Association and Californians Aware, a non-profit organization  
            dedicated to protecting public access, which argue that the  
            bill, as heard by the Judiciary Committee, would also be found  
            unconstitutional. (It is unclear to what extent the most  
            recent amendments address this concern.) 

            The Judicial Council, with regard to the previous version of  
            the bill, believes it would "have a negative effect on public  
            trust and confidence in the courts, and would impose a  
            significant new workload on judicial officers in family court  
            assignments." In part, the Council is concerned that "? any  
            attempt to redact from the public file information that was  
            crucial to the outcome of a case will create the appearance  
            that the court itself may have something to hide from the  
            public.  Such an appearance undermines the public's faith that  
            the court is making unbiased and appropriate decisions in each  
            case."  








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           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081