BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1630
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          Date of Hearing:   March 20, 2012

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                    AB 1630 (Olsen) - As Amended:  March 13, 2012
           
          SUBJECT  :  STANISLAUS COUNTY SUPERIOR COURT:  COURT REPORTER 
          COMPENSATION

           KEY ISSUE  :  SHOULD STATUTORILY-PROTECTED RETIREMENT BENEFITS FOR 
          COURT REPORTERS IN STANISLAUS COUNTY BE ELIMINATED FOR NEW HIRES 
          DESPITE THE FACT THAT TERMINATION OF THOSE BENEFITS WAS REJECTED 
          DURING COLLECTIVE BARGAINING?  WOULDN'T THIS BILL EFFECTIVELY 
          ALLOW THE COURT TO BYPASS THE COLLECTIVE BARGAINING PROCESS?

           FISCAL EFFECT  :  As currently in print this bill is keyed 
          non-fiscal.
          
                                      SYNOPSIS

          This controversial measure would, in addition to deleting 
          obsolete language regarding county compensation of court 
          employees, eliminate a statutorily mandated retirement benefit 
          for Stanislaus County Superior Court reporters first hired on or 
          after January 1, 2013.  According to the author and management 
          officials for Stanislaus Superior Court, the additional 
          retirement compensation currently guaranteed to court reporters 
          in that county was originally provided in order to attract court 
          reporters to the jurisdiction in highly competitive market 
          conditions-an incentive that they argue is no longer necessary 
          given the competitiveness of court reporter salaries in 
          Stanislaus courts.  The American Federation of State, County & 
          Municipal Employees (AFSCME) strongly opposes the bill on 
          grounds that, during recent collective bargaining negotiations, 
          Stanislaus Superior Court management relied on the existence of 
          that additional compensation provision in order to induce other 
          concessions from court reporters.  AFSCME argues that this bill 
          represents an attempt by management to circumvent the collective 
          bargaining process in a manner that is inconsistent with 
          California law.   

           SUMMARY  :  Repeals a supplemental retirement benefits for court 
          reporters in Stanislaus County Superior Court and makes 
          non-substantive changes to reflect state trial court 
          responsibility for compensation of court employees.  








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          Specifically,  this bill  :

          1)Eliminates a provision mandating that court reporters in 
            Stanislaus County receive additional retirement compensation 
            equal to the total of all per diem and transcription fees paid 
            to all of the regular reporters of the superior court, divided 
            by the number of official reporters, so that official court 
            reporters first hired on or after January 1, 2013 will no 
            longer receive this additional retirement compensation.

          2)Deletes obsolete provisions authorizing the Stanislaus County 
            Board of Supervisors to take various actions related to the 
            hiring and compensation of Stanislaus County Superior Court 
            reporters in order to reflect the state's responsibility for 
            funding court operations and managing court personnel.

          3)Retains a provision fixing the formula for per diem 
            compensation of official court reporters pro tempore for 
            Stanislaus County Superior Court.
           
          EXISTING LAW  :

          1)Provides that the state trial courts are responsible for the 
            funding of court operations, including the salaries, wages, 
            and benefits for court reporters.  (Government Code Sections 
            77200, 77003(a)(2); Cal. R. Ct. 10.810(d), Function 3.  Unless 
            stated otherwise, all further references are to the Government 
            Code.)

          2)Provides that the state trial courts, rather than the 
            counties, are responsible for employment and management of 
            trial court personnel.  (Sections 71615(c)(5), 71601(l), 
            71645(a).)

          3)Provides that the Trial Court Employment Protection and 
            Governance Act (TCEPGA), except where expressly provided, did 
            not modify or eliminate any existing wages, hours, or terms 
            and conditions of employment of trial court employees.  
            (Section 71612.)

          4)Provides that, for the purposes of retirement, the 
            compensation of each court reporter of the Stanislaus County 
            Superior Court shall be, in addition to his or her salary, the 
            total of all per diem and transcription fees paid to all of 
            the regular reporters of the superior court for all reporting 








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            services, divided by the number of official reporters.  
            (Section 70047.1(e).)

          5)Provides specified guarantees of salary increases and the per 
            diem rate received by official superior court reporters pro 
            tempore and the supervising reporter of the Stanislaus 
            Superior Court.  (Section 70047.1(c), (h).)

           COMMENTS  :  This bill's key provision repeals part of the 
          retirement compensation for new court reporters in the 
          Stanislaus County Superior Court, which is based upon the per 
          diem and transcription fees paid to court reporters in that 
          county.  It also deletes provisions rendered obsolete by the 
          state's assumption of responsibility for court employee 
          management and compensation.  The author states that the repeal 
          of additional retirement compensation would only affect new 
          hires, and argues that, while the additional benefit "once acted 
          as an incentive to attract court room reporters to the 
          Stanislaus County area, �it] is no longer necessary to recruit 
          qualified employees."  As additional support for the bill, the 
          author notes the court's need to eliminate unnecessary costs and 
          the fact that Stanislaus is one of only two courts that provide 
          this additional retirement benefit (Fresno is the other court).  
            

          In support of the bill, the Stanislaus County Superior Court 
          writes:  

              We believe that the code section, when originally written, 
             was needed because of the competition for reporting services 
             that existed at the time.  The reason the code section was 
             enacted no longer exists because the current court reporter 
             salaries are very competitive with those offered in the 
             private sector.  As we understand, we are only one of two 
             courts statewide to provide such a benefit.  
             
             The new law will also save court operating expenses.  In 
             the current economic climate and with the budget 
             reductions the courts have had to absorb for the last four 
             years, AB 1630 will help us to manage our dwindling 
             resources without adversely affecting any current 
             employees.

           Elimination of Additional Retirement Compensation for Future 
          Hires  .  AFSCME opposes the bill on the grounds that it 








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          contravenes "a major tenet governing the process for 
          establishing the Trial Court Employee Protection and Governance 
          Act, which was to preserve employee protections established 
          prior to 2002."  AFSCME asserts that the bill represents an 
          attempt to circumvent the collective bargaining process:

               AFSCME strongly believes that this bill infringes upon the 
               collective bargaining rights of employees within Stanislaus 
               Superior Court.  Six months ago, the court and its 
               employees ratified a new Memorandum of Understanding (MOU). 
                During those negotiations, our members presented court 
               management with a number of proposals related to the 
               compensation of court reporters.  Court management, 
               however, rejected the proposals stating that the court 
               reporters already benefitted from the enhanced retirement 
               benefits they are now seeking to eliminate.

               The employees of Stanislaus Superior Court have provided 
               many concessions and cost savings with the ratification 
               of the current MOU.  Specifically, court employees 
               agreed to a second tier for all new hires that increased 
               the retirement age and changed the benefit formula to 
               include the three highest consecutive years of salary 
               instead of the single highest year.  It is fundamentally 
               disingenuous for the management of Stanislaus Superior 
               Court to extract concessions from its employees during 
               the collective bargaining process and then attempt to 
               utilize the Legislature to pilfer additional concessions 
               from its employees.

           Repeal of Provisions Rendered Obsolete by State Trial Court 
          Funding and Personnel Management  .  The current version of 
          Section 70047.1 was enacted in 1990, prior to the state's 
          assumption of responsibility for the compensation and management 
          of trial court personnel.  See Lockyer-Isenberg Trial Court 
          Funding Act, AB 233 (Escutia and Pringle), Chap. 850, Stats. 
          1997; TCEPGA, SB 2140 (Burton), Chap. 1010, Stats. 2000.  This 
          bill repeals various obsolete provisions in Section 70041.7 that 
          purport to authorize the Stanislaus County Board of Supervisors 
          to take actions related to the employment and compensation of 
          court reporters in that county.  In addition this bill retains a 
          provision fixing the compensation formula for pro tempore 
          reporters, but modifies the provision to reflect the fact that 
          the Stanislaus Superior Court, rather than the county, is 
          responsible for compensation of court reporters.   








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          REGISTERED SUPPORT / OPPOSITION  :   

           Support 

           Stanislaus County Superior Court

           Opposition 

           American Federation of State, County & Municipal Employees
           

          Analysis Prepared by  :    Leora Gershenzon and Josh Fox/ JUD. / 
          (916) 319-2334