BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 680
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          Date of Hearing:  May 12, 2009

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                  AB 680 (Hall) - As Introduced:  February 26, 2009
           
                               As Proposed to be Amended
           
          SUBJECT  :   LOCAL GOVERNMENT: SHERIFF'S FEES

           KEY ISSUE  :  TO ACCOUNT FOR INCREASING COSTS OF DOING BUSINESS,  
          SHOULD CIVIL FEES FOR VARIOUS SERVICES PROVIDED BY COUNTY  
          SHERIFFS AND MARSHALS BE RAISED BY SPECIFIED AMOUNTS?

           FISCAL EFFECT  :   As currently in print this bill is keyed  
          non-fiscal.
                                          
                                      SYNOPSIS
          
          This bill is sponsored by the Los Angeles County Sheriff's  
          Department to increase various court-related fees for services  
          provided by county sheriffs and marshals by amounts ranging from  
          five to twenty dollars.  The increases proposed by this bill  
          generally apply to fees that a county sheriff's office is  
          authorized to collect for serving, executing, and processing  
          required court notices, writs, orders, and other process.  Many  
          of these fees have not been increased since 2000.  As proposed  
          to be amended, most of the fee increases would be delayed one  
          year, going into effect in 2011.  The bill is supported by  
          several county sheriff's departments and associations, all of  
          whom argue that a modest increase in these fees is needed to  
          offset the increased costs sheriff's departments are  
          experiencing in providing services to the community.  As  
          proposed to be amended, the bill has no opposition.
          
           SUMMARY  :  Increases, by amounts ranging from five to twenty  
          dollars, various fees for serving, executing, and processing  
          required court notices, writs, orders, and other services  
          provided by county sheriffs and marshals, generally effective  
          2011.  Specifically,  this bill  :   

          1)Increases to $35 the current amount of $30 for the following  
            fees:

             a)   The fee for serving or executing any process or notice  








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               required by law or the litigants to be served.  (Gov. Code  
               Section 26721.)

             b)   The fee for service of a summons, complaint, and  
               prejudgment claim of right to possession, in an action for  
               unlawful detainer.  (Gov. Code Section 26721.1.)

             c)   The fee for serving, executing, or processing a writ of  
               attachment, writ of execution, writ of sale, or order on  
               real estate, as to the initial service or posting of a  
               continuous unbroken parcel or tract, and the fee for  
               serving a record owner other than the defendant.  (Gov.  
               Code Section 26725.)

             d)   The fee for preparing and posting the initial notice of  
               personal property sale under a writ of attachment,  
               execution, or sale or order of court.  (Gov. Code Section  
               26728.)

             e)   The fee for making a levy on personal property already  
               in possession of the officer who is holding it under  
               attachment in the same action.  (Gov. Code Section 26734.)

             f)   The fee for executing and delivering any other  
               instrument (other than a certificate or deed of sale; deed  
               or certificate of redemption).  (Gov. Code Section 26742.)

             g)   The fee for subpoenaing a witness.  (Gov. Code Section  
               26743.)

             h)   The fee for maintaining custody of property under levy  
               by the use of a keeper, for each day custody is maintained  
               after the first day.  (Gov. Code Section 26726(b).)

             i)   The fee for making a not found return on specified  
               documents required to be served, certifying that the person  
               or property cannot be found at the given address.  (Gov.  
               Code Section 26738.)

          2)Increases to $140 the current $120 fee for keeping and caring  
            for property under a writ of attachment, execution,  
            possession, or sale when the sheriff is necessarily employed  
            for any eight-hour period or any part thereof.  Further  
            provides that the same fee may be collected for any additional  
            sheriff who performs keeping services that are required, but  








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            prohibits any individual sheriff from receiving more than $280  
            (double the fee amount) during any 24-hour period when so  
            employed as a keeper.  (Gov. Code Section 26726(a).)
           
          3)Provides that the sheriff keeping or caring for property under  
            a writ of attachment, execution, possession, or sale shall  
            receive $50 when, pursuant to Gov. Code Section 26738, a  
            levying officer prepares a not-found return on specified  
            process or notice required to be served.  (Gov. Code Section  
            26726(c).)

          4)Increases to $15, from a current amount of $10, the amount of  
            any fee collected by the sheriff's civil division or marshal  
            for performing specified services that must be deposited in a  
            special fund in the county treasury.  (Gov. Code Section  
            26731.)

          5)Increases to $35 the current $28 fee for cancellation of  
            service or execution of any process or notice prior to its  
            completion.  (Gov. Code Section 26736.)

          6)Increases the fees paid by the moving party for processing a  
            warrant for the arrest of a witness who fails to appear  
            pursuant to a subpoena or a court order, as provided:

             a)   An increase to $35, from the current $30 fee, to receive  
               and process the warrant;

             b)   An increase to $35, from the current $28 fee, to cancel  
               the service of the warrant;

             c)   An increase to $75, from the current $60 fee, if the  
               sheriff, using due diligence, is unable to find the person  
               at the address specified on the document to be served;

             d)   An increase to $85, from the current $75 fee, to arrest  
               the person.  (Gov. Code Section 26744.5.)

          7)Repeals the existing $50 fee for serving or executing a bench  
            warrant arising from an order of appearance, as specified.   
            (Gov. Code Section 26744.)

          8)Increases to $12 the current processing fee of $10 that is  
            assessed for each disbursement of money collected under a writ  
            of attachment, execution, possession, or sale, subject to  








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            existing guidelines for collection and handling.  (Gov. Code  
            Section 26746.)

          9)Increases to $17 the current $15 fee that is assessed by the  
            sheriff or marshal for certification of correctable violations  
            of the Vehicle Code on each citation that requires inspection  
            for proof of correction.  (Gov. Code Section 26746.1.)

           EXISTING LAW  :  

          1)Prescribes the amounts of fees that may be charged for various  
            services performed by county sheriffs and marshals pursuant to  
            Article 7 of Chapter 2 of Part 3 of Division 2 of Title 3 of  
            the Government Code (commencing with Section 26720).

          2)Provides that $10 of any fee collected by the sheriff's civil  
            division or marshal for performing specified services shall be  
            deposited in a special fund in the county treasury.  Further  
            provides that these funds shall be for the exclusive use of  
            the sheriff's civil division or marshal, with the following  
            requirements:

             a)   Ninety-five percent (95%) of these special funds shall  
               be expended to supplement the costs of the depositor for  
               the implementation, maintenance, and purchase of certain  
               equipment and furnishings, as provided. 

             b)   Five percent (5%) of the special funds shall be used to  
               supplement the expenses of the sheriff's civil division or  
               marshal in administering the funds.  (Gov. Code Section  
               26731.)

          3)Provides that a $10 processing fee shall be assessed by the  
            sheriff for each disbursement of money collected under a writ  
            of attachment, execution, possession, or sale, but excluding  
            any action by the local child support agency for the  
            establishment or enforcement of a child support obligation.   
            Further provides that these funds shall be deposited in a  
            special fund in the county treasury, and that all funds  
            deposited shall be expended to supplement the county's cost  
            for vehicle fleet replacement and equipment, maintenance, and  
            civil process operations.  (Gov. Code Section 26746.)

          4)Provides that a $15 fee shall be assessed by the sheriff or  
            marshal for certification of correction on each citation that  








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            requires inspection for proof of correction of certain  
            violations of the Vehicle Code, and that all proceeds of the  
            fee shall be deposited in a special fund in the county  
            treasury for the exclusive use of the sheriff's civil division  
            or marshal, with the following requirements: 

             a)   Ninety-five percent (95%) of these special funds shall  
               be expended to supplement the costs of the depositor for  
               the implementation, maintenance, and purchase of certain  
               equipment and furnishings, as provided. 

             b)   Five percent (5%) of the special funds shall be used to  
               supplement the expenses of the sheriff's civil division or  
               marshal in administering the funds.  (Gov. Code Section  
               26746.1.)

           COMMENTS  :  This bill seeks to increase, by amounts ranging from  
          five to twenty dollars, various fees for services provided by  
          county sheriffs and marshals.  The increases proposed by this  
          bill apply to fees that a county sheriff's office is authorized  
          to collect for serving, executing, and processing required court  
          notices, writs, orders, and other process, among other things.

          The bill's sponsor, the Los Angeles County Sheriff's Department,  
          contends that this bill is needed to address rising costs of  
          business, stating:

               Since 2000, the cost of doing business for the  
               Sheriff's Department has increased dramatically.   
               Gas prices alone have skyrocketed and many of our  
               personnel working in our civil section are using  
               vehicles in the field serving process, notices, and  
               conducting evictions.  Additionally personnel costs,  
               such as pay and benefits and other administrative  
               costs, have also increased significantly.

               Based on the increased costs to conduct business, a  
               moderate increase to some of the fees would greatly  
               enhance [Sheriff Departments'] ability to continue  
               to provide the same high level of service to the  
               community. . . Most of these fees have not been  
               increased since 2000.

          A review of the different fees that this bill proposes to  
          increase shows that many of the fees have not been increased  








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          since passage of AB 1768 (Steinberg) of 2000.  According to the  
          Consumer Price Index (CPI), a $30.00 fee in 2000 would equal  
          $37.06 at present, adjusting for inflation.  In that light, the  
          set of fee increases proposed here appear to be reasonably in  
          line with inflation as measured by the CPI.  Nevertheless, this  
          bill must be viewed in context with other fee increases for  
          court users - most notably those sought by the courts for  
          first-paper civil filings, both by the Uniform Civil Fees  
          measure in 2005 (AB 145) which increased these fees  
          significantly in some instances, and then again most recently  
          last year by SB 1407 (Perata) which further increased these fees  
          by $25 to $30, along with increases in the fees for appeals,  
          applications to appear pro hac vice (for out-of-state lawyers),  
          as well as much larger increases for probate filings.  SB 1407  
          also imposed an assessment of $30 on every felony or misdemeanor  
          criminal conviction and $35 for every criminal infraction,  
          including traffic offenses, but not including parking offenses,  
          and increased the fee applied to corrections of violations of  
          license, registration or mechanical requirements of the Vehicle  
          Code and raised the amount when a parking penalty, fine, or  
          forfeiture is imposed, as well as the fee for a person ordered  
          to traffic violator school for a moving violation.  In light of  
          the fee increase for these other worthy purposes, and to provide  
          for an orderly schedule for the future, the author proposes to  
          delay the effective date of most of the increases proposed in  
          this bill for one year, until 2011.
           
           Many of the fees that would be increased by this bill are for  
          services that others, in addition to county sheriffs, are  
          authorized to perform.  For example, serving or executing any  
          process or notice required to be served can, and often is,  
          accomplished by hiring private companies or individuals,  
          presumably at the market rate for such services.  In that  
          respect, individuals who need that type of service to be  
          performed can decide whether to hire the sheriff's department or  
          pursue other means.  Some of the fees, however, are not as  
          avoidable.  For example, under existing law a processing fee of  
          $10 is assessed for each disbursement of money collected under a  
          writ of attachment, execution, possession, or sale, subject to  
          existing guidelines for collection and handling.  A party who  
          has collected a judgment and wishes to have the money disbursed  
          has no option other than to pay the processing fee.  Under this  
          bill, the amount of the processing fee rises to $12.
           
          Existing Law and Court Rules Provide for Mandatory Waiver of  








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          Sheriff's Fees for Poor Litigants  :  Under Gov. Code Section  
          26720.5, in any case in which the litigant is permitted by the  
          court to proceed in forma pauperis under rules adopted by the  
          Judicial Council pursuant to Gov. Code Section 68631, the fees  
          identified by this bill shall be waived.  In other words, under  
          California Rules of Court 3.52 and 3.61, payment of the  
          sheriff's and marshal's fees in question  must  be waived for a  
          litigant who can demonstrate, under existing standards of  
          eligibility in the Government Code, that he or she cannot afford  
          to pay such fees.      

          This bill does not affect the right of a person to petition the  
          court for a fee waiver to be exempt from paying the fees,  
          although any broad set of fee increases may lead to a  
          corresponding increase in the number of people petitioning the  
          court for a fee waiver because they cannot afford the increased  
          fee amounts.

           Author's Amendments.   To provide for a more orderly schedule of  
          fee increases, the author judiciously proposes to delay the  
          operative date of the proposed increases until 2011, except for  
          the small fee increase proposed in section 8 of the bill.  In  
          addition, to address opposition concerns by the California  
          Association of Collectors, the author has agreed to clarify  
          certain procedures when sheriffs collect funds from judgment  
          debtors, as follows:

          Code of Civil Procedure  685.050 is amended to read:
          
          (a) If a writ is issued pursuant to this title to enforce a  
          judgment, the costs and interest to be satisfied in a levy under  
          the writ are the following:
          (1) The statutory fee for issuance of the writ.
          (2) The amount of interest that has accrued from the date of  
          entry or renewal of the judgment to the date of issuance of the  
          writ, as adjusted for partial satisfactions, if the judgment  
          creditor has filed an affidavit with the court clerk stating  
          such amount.
          (3) The amount of interest that accrues on the principal amount  
          of the judgment remaining unsatisfied from the date of issuance  
          of the writ until the date interest ceases to accrue.
          (4) The levying officer's statutory costs for performing the  
          duties under the writ.
          (b) In a levy under the writ, the levying officer shall do all  
          of the following:








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          (1) Collect the amount of costs and interest entered on the writ  
          pursuant to paragraphs (1) and (2) of subdivision (a).
          (2) Compute and collect the amount of additional interest  
          required to be collected by paragraph (3) of subdivision (a) by  
          reference to the daily interest entered on the writ.  If amounts  
          collected periodically do not fully satisfy the money judgment,  
          the levying officer  may, pursuant to a policy adopted by the  
          office of the levying     officer  ,  shall  adjust the amount of daily  
          interest to reflect the partial satisfactions, and make later  
          collections by reference to the adjusted amount of daily  
          interest.
          (3) Determine and collect the amount of additional costs  
          pursuant to paragraph (4) of subdivision(a).
          
          Code of Civil Procedure  701.810 is amended to read:
          
          Except as otherwise provided by statute, the levying officer  
          shall distribute the proceeds of sale or collection in the  
          following order:
          (a) To persons having preferred labor claims that are required  
          by Section 1206 to be satisfied from the proceeds, in the  
          amounts required by Section 1206 to be satisfied.
          (b) To the state department or agency having a state tax lien  
          (as defined in Section 7162 of the Government Code) that is  
          superior to the judgment creditor's lien, in the amount of the  
          lien.
          (c) If a deposit has been made pursuant to Section 720.260 and  
          the purchaser at the sale is not the judgment creditor, to the  
          judgment creditor in the amount required to repay the deposit  
          with interest thereon at the rate on money judgments from the  
          date of the deposit.
          (d) To the judgment debtor in the amount of any applicable  
          exemption of proceeds pursuant to Section 704.010 (motor  
          vehicle), 704.020 (household furnishings and other personal  
          effects), or 704.060 (tools of trade), except that such proceeds  
          shall be used to satisfy all of the following in the order of  
          their respective priorities:
          (1) Any consensual liens and encumbrances, and any liens for  
          labor or materials, that are
          subordinate to the judgment creditor's lien.
          (2) Subject to Section 688.030, any state tax lien (as defined  
          in Section 7162 of the Government Code) on the property sold if  
          the notice of state tax lien on the property has been recorded  
          or filed pursuant to Section 7171 of the Government Code prior  
          to the time the levying officer received the proceeds of the  








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          sale or collection.
          (e) To the levying officer for the reimbursement of the levying  
          officer's costs for which an advance has not been made.
          (f) To the judgment creditor to satisfy  in  the following  order  :
          (1) First,  any  costs and interest accruing  on the judgment  after  
          issuance of the writ pursuant to which the sale or collection is  
          conducted.
          (2) Second, the  principal  amount due on the judgment with costs  
          and interest, as entered on the writ.
          (g) To any other judgment creditors who have delivered writs to  
          the levying officer,
          accompanied by instructions to levy upon the judgment debtor's  
          property or the proceeds of its sale or collection, or any other  
          persons actually known by the levying officer to have a claim,  
          lien, or other interest subordinate to the judgment creditor's  
          lien that is extinguished by the sale and that is not otherwise  
          satisfied pursuant to this section, in the amounts to which they  
          are entitled in order of their respective priorities.
          (h) To the judgment debtor in the amount remaining.
          
          Code of Civil Procedure  701.820 is amended to read:
          
          (a) Promptly after a sale or collection under this title, the  
          levying officer shall distribute the proceeds to the persons  
          entitled thereto or, in cases covered by Section 701.830,  
          deposit the proceeds with the court.
          (b) Except as otherwise provided by statute, the proceeds shall  
          be promptly paid to the persons entitled thereto not later than  
          30 days after they are received by the levying officer.
          (c) If the proceeds are not   to be   received by the levying  
          officer in one payment, the levying officer may accumulate  
          proceeds received during a 30-day period and the accumulated  
          proceeds shall be paid to the persons entitled thereto not later  
          than  20   10  days after the expiration of the 30-day period.
          (d) When proceeds are received by the levying officer in the  
          form of a check or other form of noncash payment that is to be  
          honored upon presentation by the levying officer for payment,  
          the proceeds are not received for the purposes of this section  
          until the check or other form of noncash payment has actually  
          been honored upon presentation for payment.
          (e) The provisions of Section 26680 of the Government Code apply  
          to the levying officer only if all of the following conditions  
          are satisfied:
          (1) The levying officer has failed to pay the proceeds or  
          deposit them with the court as provided in this article within  








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          the time provided in this section.
          (2) Upon such failure, a person entitled to any of the proceeds  
          has filed  in person or by certified mail  with the levying  
          officer a written demand for the payment of the proceeds to the  
          persons entitled thereto.
          (3) The levying officer has failed within 10 days after the  
          demand is filed to pay to the person filing the demand the  
          proceeds to which that person is entitled.
          (f) If all proceeds have not been received within 10 days after  
          the filing of the demand specified in subdivision (e)(3), a  
          judgment creditor may file an ex-parte application for an order  
          directing the levying officer to show cause why relief should  
          not be granted as provided in Government Code Section 26680. The  
          order shall name a date and time for the levying officer to  
          appear not less than 20 and not more than 30 days after filing  
          of the application. If the levying officer pays all proceeds as  
          provided in subdivision (e) of Section 701.810 to the judgment  
          creditor no later than 10 days prior to the hearing, the  
          judgment creditor shall notify the court of full payment no  
          later than three days prior to the hearing and the court shall  
          withdraw the order and vacate the hearing.
                                            
          (g) The application specified in subdivision (f) shall state the  
          date and manner of
          (1) delivery of the writ of execution to the levying officer,
          (2) remittance of the proceeds to the levying officer, and
          (3) filing of the 10-day demand specified in subdivision (e).

          (h) If the court finds that the facts alleged in the application  
          specified in subdivision (f) to be knowingly false or made in  
          bad faith, the court may award costs and reasonable attorney  
          fees to the levying officer.

          Government Code  905 is amended to read:
          
          There shall be presented in accordance with Chapter 1  
          (commencing with Section 900) and Chapter 2 (commencing with  
          Section 910) all claims for money or damages against local  
          public entities except:
          (a) Claims under the Revenue and Taxation Code or other statute  
          prescribing procedures for the refund, rebate, exemption,  
          cancellation, amendment, modification, or adjustment of any tax,  
          assessment, fee, or charge or any portion thereof, or of any  
          penalties, costs, or charges related thereto.
          (b) Claims in connection with which the filing of a notice of  








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          lien, statement of claim, or stop notice is required under any  
          law relating to liens of mechanics, laborers, or materialmen.
          (c) Claims by public employees for fees, salaries, wages,  
          mileage, or other expenses and
          allowances.
          (d) Claims for which the workers' compensation authorized by  
          Division 4 (commencing with Section 3200) of the Labor Code is  
          the exclusive remedy.
          (e) Applications or claims for any form of public assistance  
          under the Welfare and Institutions Code or other provisions of  
          law relating to public assistance programs, and claims for  
          goods, services, provisions, or other assistance rendered for or  
          on behalf of any recipient of any form of public assistance.
          (f) Applications or claims for money or benefits under any  
          public retirement or pension system. 
          (g) Claims for principal or interest upon any bonds, notes,  
          warrants, or other evidences of
          indebtedness.
          (h) Claims that relate to a special assessment constituting a  
          specific lien against the property assessed and that are payable  
          from the proceeds of the assessment, by offset of a claim for  
          damages against it or by delivery of any warrant or bonds  
          representing it.
          (i) Claims by the state or by a state department or agency or by  
          another local public entity or by a judicial branch entity.
          (j) Claims arising under any provision of the Unemployment  
          Insurance Code, including, but not limited to, claims for money  
          or benefits, or for refunds or credits of employer or worker  
          contributions, penalties, or interest, or for refunds to workers  
          of deductions from wages in excess of the amount prescribed.
          (k) Claims for the recovery of penalties or forfeitures made  
          pursuant to Article 1 (commencing with Section 1720) of Chapter  
          1 of Part 7 of Division 2 of the Labor Code.
          (l) Claims governed by the Pedestrian Mall Law of 1960 (Part 1  
          (commencing with Section 11000) of Division 13 of the Streets  
          and Highways Code).
          (m) Claims made pursuant to Section 340.1 of the Code of Civil  
          Procedure for the recovery of damages suffered as a result of  
          childhood sexual abuse. This subdivision shall apply only to  
          claims arising out of conduct occurring on or after January 1,  
          2009.
          (n) Claims made pursuant to Section 701.820 of the Code of Civil  
          Procedure for the recovery of money pursuant to Government Code  
          Section 26880.
          








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          Government Code  26880 is amended to read:

          If on demand the sheriff neglects or refuses to pay over to the  
          person entitled any money which comes into his hands by virtue  
          of his office, after deducting all legal fees, the person may  
          recover the amount thereof,  and  25 per cent damages  , and   
          interest at the rate of 10 per cent a month from the time of  
          demand,  and costs, including reasonable attorney fees.
           
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Los Angeles County Sheriff's Department (sponsor)
          Association for Los Angeles Deputy Sheriffs
          Alameda County Sheriff's Office 
          Butte County Sheriff's Office
          California Association of Legal Support Professionals (CALSPro)
          California Correctional Supervisors Organization
          California State Association of Counties
          California State Sheriffs' Association
          Contra Costa County, Office of the Sheriff
          El Dorado County Sheriff's Department
          Mariposa County, Office of the Sheriff
          Nevada County Sheriff's Office
          Peace Officers Research Association of California
          Regional Council of Rural Counties
          Riverside Sheriff's Association
          Sacramento County Sheriff's Department
          Santa Clara County Board of Supervisors
          Shasta County, Office of the Sheriff

           Opposition (As proposed to be amended)
           
          None on file
           
          Analysis Prepared by  :   Kevin Baker and Anthony Lew / JUD. /  
          (916) 319-2334