BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1181 (Cedillo)
          
          Hearing Date:  05/27/2010           Amended: 04/28/2010
          Consultant:  Jacqueline Wong-HernandezPolicy Vote: Judiciary 4-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: SB 1181 would extend the sunset on the Transcript  
          Reimbursement Fund (TRF) administered by the Court Reporters  
          Board of California (CRB) to January 1, 2013. This bill would  
          expand the applicants authorized to obtain reimbursement from  
          the fund to include indigent pro se litigants, as specified, up  
          to a maximum of $30,000 annually and $2,500 per case, and  
          require the CRB to report to the Legislature no later than  
          January 1, 2012, on expenditures and claims by such litigants.  
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

          Major Provisions         2010-11      2011-12       2012-13          
           Fund
           Sunset Extension                          $0                     
          $300                 $300           Special*                   
                                                                  
          Include pro se litigants             Possibly significant cost  
          pressure                     Special*

          *Court Reporters' Fund 
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE.

          Existing law establishes the TRF to provide shorthand reporting  
          services to low-income litigants in civil cases who are unable  
          to otherwise afford those services. The TRF is intended to  
          provide court transcripts or depositions at little or no cost to  
          non-profit legal service centers and pro bono attorneys on  
          behalf of indigent litigants in civil cases.

          Under current law, CRB transfers $300,000 into the TRF from the  
          Court Reporters' Fund at the beginning of each fiscal year, from  
          excess funds needed to support the board's operating budget for  
          each fiscal year. The CRB may transfer additional funds above  










          the initial $300,000, provided that the additional transfer does  
          not result in a reduction of the balance of the Court Reporters'  
          Fund to an amount less than six months' operating budget. The  
          CRB is required to maintain sufficient funding to pay all  
          qualified claims and is authorized to utilize all refunds,  
          unexpended funds, fees, and any other moneys received for this  
          purpose. (Bus. and Prof. Code Sec. 8030.2)

          In the absence of this bill, the TRF will sunset on January 1,  
          2011. At that time, money previously transferred to the TRF  
          would stay with CRB for its operation (unless CRB chose to lower  
          fees for its members, if it decided it could operate with less  
          revenue). This bill would extend the sunset on the TRF and the  
          accompanying provisions to January 1, 2013.

          Existing law also provides that an "applicant," or certified  
          shorthand reporter in a case handled by an applicant, may apply,  
          with supporting documentation, for reimbursement from the TRF  
          for the allowable charges for preparing an original transcript,  
          a copy of the 
          Page 2
          SB 1181 (Cedillo)

          transcript (or both if appropriate) of court or deposition  
          proceedings for litigation conducted in California, subject to  
          specific requirements and exemptions. These 
          existing provisions also specifically exclude persons appearing  
          pro se to represent themselves at any stage of the case.  (Bus.  
          and Prof. Code Secs. 8030.4(e), 8030.8.)  

          This bill would permit a person appearing pro se at any stage of  
          the case to apply to receive funds from the TRF. Pro se  
          litigants applying for reimbursement would be required to  
          provide a fee waiver from the court to establish indigent  
          status. In addition, the amount reimbursed to persons appearing  
          pro se would be limited to $2,500 per case, and not to exceed  
          $30,000 annually for all cases. 

          According to CRB, approximately a quarter of all TRF claims are  
          denied because they are submitted by a litigant who represents  
          himself or herself in a lawsuit (known as in pro per litigants)  
          rather than have an attorney. Typical cases involving requests  
          for TRF assistance, in addition to those who represent  
          themselves, include: dissolution of marriage/custody issues,  
          evictions, unlawful terminations, and probate disputes. These  
          litigants could be helped by allowing the excess TRF funds to be  










          expanded to include individuals representing themselves.  
          Allowing these claims to be reimbursed by the TRF would create  
          cost pressure on the fund, but would not likely exceed the  
          $300,000 transferred to the fund at the beginning of every  
          fiscal year.

          Based on data provided by CRB, in the nearly 30 years since the  
          inception of the TRF in 1981, the amounts expended on an annual  
          basis has ranged from a high in 1993/94 of $417,778 to a low in  
          2002/03 of $146,649. In the past five fiscal years, the TRF has  
          paid no more than $225,000 in any year, leaving extra funds that  
          could be used for the expanded pool of eligible litigants. While  
          typically fewer than 10 people are denied each year because they  
          are pro se litigants, the low number represents individuals who  
          still apply despite a formal prohibition. It is unclear how many  
          new applications would come as the result of a rule change that  
          allows the specified pro se litigants to obtain reimbursement.