BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           590 (Feuer)
          
          Hearing Date:  08/27/2009           Amended: 08/20/2009
          Consultant:  Jacqueline Wong-HernandezPolicy Vote: Judiciary 3-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 590 makes it unlawful for an entity to use the  
          term "legal aid" unless referring to a nonprofit organization  
          providing legal services to low-income persons without charge.  
          This bill also establishes a pilot project to provide legal  
          counsel to low-income parties in specified civil cases.  
          Specifically, this bill:

          1)Requires the Judicial Council to develop one or more pilot  
            projects in selected courts, pursuant to a competitive grant  
            process to provide legal services for low-income persons in  
            civil matters involving basic human needs. 

          2)Limits eligibility to clients with household incomes at or  
            below 200% of the federal poverty level.

          3)Requires each project to be a partnership between the court,  
            and qualified legal services provider that shall serve as the  
            lead agency, and other legal services.

          4)Authorizes the projects for a three-year period, subject to  
            renewal. 

          5)Establishes criteria for selecting cases to be covered by the  
            counsel funded by the pilot project.

          6)Requires the Judicial Council to evaluate, using an  
            independent evaluator, the effectiveness and continued need  
            for the pilot program and report to the Legislature by March  
            1, 2015 and every three years thereafter.

          7)Diverts $10 of each of the specified fees that is deposited in  
            the Trial Court Trust Fund, commencing July 1, 2011, for the  
            expenses of the Judicial Council in implementing and  
            administering the civil representation pilot program.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)











           Major Provisions         2009-10      2010-11       2011-12     Fund
           New court pilot program                  $0                 $0    
                 Up to $11,000      General*                          
          *Trial Courts Trust Fund
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          Since 2008, the Trial Courts Trust Fund has been reduced by  
          $393,000,000. Courts sustained substantial reductions due to the  
          budget deficit, as did virtually all governmental departments  
          and programs. 

          Page 2
          AB 590 (Feuer)

          As part of the 2009-10 budget package, in July, SB X4 13  
          (Ducheny) included a $10 increase in certain court fees. The fee  
          revenue generated annually is expected to be $11,000,000, and  
          will be deposited in the Trial Courts Trust Fund, with no  
          specific stated purpose or earmark for the new revenue. This  
          bill diverts the revenue for that fee increase to fund this new  
          pilot program, which will be administered by the Judicial  
          Council, beginning on July 1, 2011.

          The pilot program was included in early versions of SB X4 13,  
          but was not included in the final budget trailer bill that was  
          approved. The fee increases that would have funded it, however,  
          were included, and allowed to backfill a small portion of the  
          reductions made to the courts. Budget reductions to the courts  
          were 35 times more than the amount backfilled by this fee. This  
          bill requires that the entirety of the new revenue from the fee  
          increases be spent solely on this new pilot program, which  
          creates an $11,000,000 cost pressure to other (court and)  
          Judicial Council functions and programs.

          There may be future savings in court case-processing costs, to  
          the extent the pilot projects increase efficiency.