BILL ANALYSIS                                                                                                                                                                                                    



                                        
                       SENATE LOCAL GOVERNMENT COMMITTEE
                        Senator Patricia Wiggins, Chair


          BILL NO:  SB 676                     HEARING:  5/6/09
          AUTHOR:  Wolk                        FISCAL:  No
          VERSION:  4/13/09                    CONSULTANT:   
          Weinberger

                                   LOCAL FEES
          
                                    Background  

          County boards of supervisors can levy authorized fees or  
          charges in amounts reasonably necessary to recover the  
          costs of providing products or services or the cost of  
          enforcing regulations. (AB 151, Hannigan, 1983).  The fees  
          or charges may reflect the average cost of providing  
          products or services or enforcing regulations, plus limited  
          indirect costs. 

          Despite generally deregulating county fees 25 years ago,  
          state law still sets a large number of fees, including  
          civil fees, county recorder fees, and fees charged by  
          agricultural commissioners.  It has been decades since some  
          of the statutory limits for these fees have been updated.

          County officials want the Legislature to adjust the  
          statutory limits for some county fees.

                                   Proposed Law  

          Senate Bill 676 increases or eliminates the statutory  
          limits on 14 fees: 

          I.   Federal lien certificates  .  Existing law allows county  
          recorders to impose fees of up to $15 to cover the costs of  
          furnishing a copy of any notice of federal lien, or notice  
          or certificate affecting a federal lien.  The $15 maximum  
          has not changed since 1983 (SB 1250, Russell, 1982).   
          Senate Bill 676 deletes the $15 limit, allowing county  
          recorders to set the fee in an amount that covers actual  
          costs. [See 1 of the bill.]

          II.   Environmental Quality Act filings  .  Existing law  
          allows county clerks to charge a $50 per filing documentary  
          handling fee for specified filings under the California  
          Environmental Quality Act.  The $50 amount was set in 2007  




           
           SB 676 -- 4/13/09 -- Page 2



          (SB 1535, Kuehl, 2006).  Senate Bill 676 deletes the $50  
          amount and allows county clerks to charge a documentary  
          handling fee to reimburse the county for the actual costs  
          of services rendered.  [2]

          III.   Recorded documents  .  Existing law allows county  
          recorders to charge a filing fee for recording and indexing  
          every instrument, paper, or notice required or permitted by  
          law to be recorded.  The maximum charge is $4 for the  
          recording of the first page and $3 for each additional  
          page, with the ability to charge additional fees as  
          specified.  The $4 maximum has not changed since 1985 (SB  
          2277, McCorquodale, 1984).  Senate Bill 676 increases the  
          maximum charge for the recording of the first page of a  
          document from $4 to $10.  [3]

          IV.   Documents requiring additional indexing  .  Whenever any  
          instrument, paper, or notice is recorded which contains  
          references to more than one previously recorded document  
          and which requires additional indexing by the county  
          recorder to give notice required by law, existing law  
          allows the recorder to charge an additional $1 fee for each  
          reference to a previously recorded document, other than the  
          first such reference, requiring additional indexing.  The  
          $1 amount has not changed since 1970 (SB 54, Collier,  
          1969).  Senate Bill 676 deletes the $1 amount, allowing  
          county recorders to charge a fee to reimburse the county  
          for the actual costs of services rendered. [4]

          V.   Documents requiring additional indexing  .  Whenever any  
          instrument, paper or notice is recorded which requires  
          additional indexing by the county recorder to give notice  
          required by law and does not refer to a previously recorded  
          document by reference, existing law allows the county  
          recorder to charge an additional $1 fee for each group of  
          10 names, or fractional portion thereof, after the initial  
          group of 10 names.  The $1 amount has not changed since  
          1981 (SB 1940, Stiern, 1980).  Senate Bill 676 deletes the  
          $1 amount, allowing county recorders to charge a fee to  
          reimburse the county for the actual costs of services  
          rendered. [5]

          VI.   Court-appointed counsel  .  Existing law allows a county  
          board of supervisors to assess a registration fee of up to  
          $25 on every defendant represented by appointed counsel.   





           
           SB 676 -- 4/13/09 -- Page 3



          No fee is required of any defendant who is financially  
          unable to pay.  The $25 maximum has not changed since 1997  
          (SB 251, Ayala, 1996).  Senate Bill 676 increases the  
          maximum amount of the fee from $25 to $50. [7]

          VII.   Restitution  .  If a court orders that restitution be  
          made to a crime victim, a county board of supervisors may  
          add a fee to cover the actual administrative cost of  
          collecting restitution, not to exceed 10% of the total  
          amount ordered to be paid.  The fees are paid into the  
          county general fund.  The 10% maximum has not changed since  
          1986 (SB 737, Royce, 1985).  Senate Bill 676 increases the  
          maximum fee to cover the costs of collecting restitution  
          from 10% to 15% of the total amount ordered to be paid.  
          [8]

          VIII.   County probation department payments  .  Existing law   
          requires some defendants to pay for the reasonable cost of  
          any probation supervision or a conditional sentence, of  
          conducting any pre-plea investigation and preparing of any  
          pre-plea report, of conducting any pre-sentence  
          investigation and preparing any pre-sentence report and of  
          processing a jurisdictional transfer or of processing a  
          request for interstate compact supervision.  A county board  
          of supervisors may establish a fee of up to $50 to cover  
          the administrative and clerical costs of collecting the  
          defendants' payments.  The $50 maximum has not changed  
          since 1996 (AB 594, Boland, 1995).  Senate Bill 676 deletes  
          the $50 maximum, allowing counties to charge fees to cover  
          the administrative and clerical costs of collecting the  
          defendants' payments. [9]

          IX.   Change of plea, setting aside of a verdict  .  Under  
          existing law, a person who petitions for a change of plea  
          or setting aside of a verdict may be required to reimburse  
          the court, the county, and the city for the actual costs of  
          services rendered, whether or not the petition is granted  
          and the records are sealed or expunged.  The court, the  
          county board of supervisors, and the city may determine a  
          rate of up to $120 to reimburse the actual costs.  The $120  
          maximum has not been changed since 1995 (AB 1327, Epple,  
          1994).  Senate Bill 676 deletes the $120 maximum, allowing  
          courts, counties, and cities to require reimbursement for  
          the actual costs of services rendered.  [10]






           
           SB 676 -- 4/13/09 -- Page 4



          X.   Sealing of records  .  Under existing law, a person who  
          was convicted of a misdemeanor when he or she was a minor  
          at the time of the offense and who petitions for an order  
          sealing his or her record may be required to reimburse the  
          court, the county, and the city for the actual costs of  
          services rendered, whether or not the petition is granted  
          and the records are sealed or expunged.  The court, the  
          county board of supervisors, and the city may determine a  
          rate of up to $120 to reimburse the actual costs.  The $120  
          maximum has not changed since 1995 (AB 1327, Epple, 1994).   
          Senate Bill 676 deletes the $120 maximum, allowing courts,  
          counties, and cities to require reimbursement for the  
          actual costs of services rendered.  [11]

          XI.   Installment payments  .  Under existing law, a person  
          who is convicted of a misdemeanor and required to pay a  
          fine may pay the fine in specified installments.  A board  
          of supervisors may require defendants to pay to the clerk  
          of the court or the collecting agency a fee of up to $35 to  
          pay for the administrative and clerical costs of processing  
          installment accounts.  The $35 maximum has not changed  
          since 1993 (AB 2409, Isenberg, 1992).  Senate Bill 676  
          deletes the $35 maximum, allowing a board of supervisors to  
          require a fee sufficient to pay for the administrative and  
          clerical costs of processing installment accounts.  [12]

          XII.   Fingerprinting  .  Existing law allows a local agency  
          taking fingerprints of a person who is an applicant for  
          licensing, employment, or certification to charge up to $10  
          to cover the cost of taking the fingerprints and processing  
          the required documents.  The $10 maximum has not changed  
          since 1987 (AB 4375, Stirling, 1986).  Senate Bill 676  
          deletes the $10 maximum, allowing local agencies to charge  
          a fee sufficient to cover the cost of taking the  
          fingerprints and processing the required documents.  [13]

          XIII.   Support of a minor  .  Existing law requires that the  
          father, mother, spouse, or other person liable for the  
          support of a minor be liable for the reasonable costs of  
          support of the minor while the minor is placed, detained  
          in, or committed to any institution because of delinquency  
          or truancy.  Costs of support mean only actual costs  
          incurred by  the county for food and food preparation,  
          clothing, personal supplies, and medical expenses, not to  
          exceed a combined maximum  of costs of $15 per day except  





           
           SB 676 -- 4/13/09 -- Page 5



          that the maximum cost of $15 per day must be adjusted every  
          third year beginning January 1, 1998 to reflect the  
          percentage change in the calendar year annual average of  
          the California Consumer Price Index, All Urban Consumers,  
          published by the Department of Industrial Relations, for  
          the three-year period.   The $15 maximum has not changed  
          since 1985 (AB 2379, Sher, 1984).  Senate Bill 676  
          increases the maximum cost to $45 per day, adjusted every  
          third year. [14]

          XIV.   Sealing of juvenile records  .  Existing law allows  
          counties and courts to require specified people to  
          reimburse them up to $120 for the costs of services  
          rendered for any investigation related to the sealing and  
          for the sealing of any juvenile court or arrest records,  
          whether or not the petition is granted and the records are  
          sealed or expunged.  The $120 maximum has not changed since  
          1995 (AB 1327, Epple, 1994).  Senate Bill 676 deletes the  
          maximum, allowing counties and courts to require  
          reimbursement for the full costs of services rendered.  [  
          15]

           Senate Bill 676 also deletes statutory cross-references to  
          statutes in which the bill proposes to delete limits on  
          fees, thereby allowing the fees to be set pursuant to the  
          general authorization for counties to recover the cost of  
          providing any product or service or the cost of enforcing  
          any regulation for which a fee or charge is levied. [ 6]


                                     Comments  

          1.   Protecting taxpayers  .  As costs rise and the demand for  
          services grows, the county fees that are capped by state  
          law no longer cover the real costs of providing the  
          service.  When fees don't generate enough money to pay for  
          services, counties' general funds must pay the difference.   
          County taxpayers have to subsidize the users of these  
          county services.  Programs that depend on money from  
          counties' general funds, like law enforcement and  
          libraries, suffer the fiscal consequences.  SB 676 does not  
          allow county supervisors to charge new fees.  It simply  
          lets county governments charge the people who use county  
          services fees that reflect the actual costs of providing  
          those services.





           
           SB 676 -- 4/13/09 -- Page 6




          2.   Why stop there  ?  The fees that SB 676 adjusts are only  
          a small portion of the county fees that state law continues  
          to be limit.  For example, the Legislature has excluded  
          court-related fees, fees charged by a county agricultural  
          commissioner, fees collected by a county sealer of weights  
          and measures, and fees charged by a county recorder from  
          the deregulation enacted by the 1983 Hannigan bill.  These  
          exemptions guarantee that county taxpayers subsidize the  
          operations of these select government entities.  Why should  
          applicants for public employment pay the full cost for  
          conducting fingerprint background checks, while taxpayers  
          subsidize the cost of getting grocery store scales tested  
          and inspected?  The Committee may wish to consider whether  
          the Legislature should completely deregulate county fees by  
          repealing all of the specific statutory rates.

          3.   Double referral  .  Because SB 676 affects fees for  
          court-appointed counsel, criminal records, fines, and other  
          related topics, the Senate Rules Committee ordered a  
          double-referral of the bill, first to the Senate Public  
          Safety Committee and then to the Senate Local Government  
          Committee.  The Public Safety committee passed SB 676 at  
          its April 21 hearing by a 5-2 vote.


                         Support and Opposition  (4/30/09)

           Support  :  Yolo County, Humboldt County, Santa Clara County,  
          California State Association of Counties, California Public  
          Defenders Association, Chief Probation Officers of  
          California, Sacramento County Deputy Sheriffs' Association.

           Opposition  :  California Association of Realtors.