BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 2073|
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                                 THIRD READING


          Bill No:  AB 2073
          Author:   Silva (R)
          Amended:  8/21/12 in Senate
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  5-0, 6/19/12
          AYES:  Evans, Harman, Blakeslee, Corbett, Leno
           
          SENATE APPROPRIATIONS COMMITTEE  :  7-0, 8/16/12
          AYES:  Kehoe, Walters, Alquist, Dutton, Lieu, Price, 
            Steinberg
           
          ASSEMBLY FLOOR  :  70-0, 5/25/12 (Consent) - See last page 
            for vote


           SUBJECT  :    Courts:  electronic filing and service of 
          documents

           SOURCE  :     Orange County Superior Court


           DIGEST  :    This bill (1) authorizes the Superior Court of 
          Orange County, until July 1, 2014, to establish a pilot 
          project by local rule to require parties to specified civil 
          actions to electronically file and serve documents, as 
          specified, (2) requires the Judicial Council (Council) to 
          evaluate and report to the Legislature on the results of 
          that evaluation, as specified, or before December 31, 2013, 
          and (3) requires the Council, by July 1, 2014, to adopt 
          uniform rules to permit the mandatory electronic filing 
          (e-filing) and service of documents for specified civil 
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          actions in the trial courts of the state, as specified.

           ANALYSIS  :    Existing law provides that a document may be 
          served electronically in an action filed with the court 
          under this section and in accordance with applicable Rules 
          of Court, as specified.  (Code of Civil Procedure (CCP) 
          Section 1010.6(a))  

          Existing law provides that in any action in which a party 
          has agreed to accept electronic service or in which the 
          court has ordered electronic service, as specified, the 
          court may electronically serve any document issued by the 
          court that is not required to be personally served in the 
          same manner that parties electronically serve documents.  
          Existing law provides that electronic service shall have 
          the same legal effect as service by mail, except as 
          provided.  (CCP Section 1010.6(a)(3))

          Existing law provides that a trial court may adopt local 
          rules permitting e-filing of documents, subject to Rules of 
          Court adopted as specified and subject to specified 
          conditions.  These include conditions relating to 
          electronic signatures and fee waivers, among other things.  
          (CCP Section 1010.6(b)(1)-(6))  

          Existing law provides that a local rule would be subject 
          to, among other things, the condition that any document 
          that is electronically filed with the court after the close 
          of business on any day shall be deemed to have been filed 
          on the next court day.  Existing law specifies that "close 
          of business" means 5 p.m. or at the time at which the court 
          would not accept filing at the court's filing counter, 
          whichever is earlier.  (CCP Section 1010.6(b)(3))

          Existing law permits a court to require e-filing of 
          documents in complex civil litigation cases, as specified, 
          provided that it does not cause undue hardship or 
          significant prejudice to any party in the action.  (CCP 
          Section 1010.6(c))
           
          Existing law requires the Council to adopt uniform rules 
          for the e-filing and service of documents in the trial 
          courts of the state, which shall include statewide policies 
          on vendor contracts, privacy, and access to public records, 

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          and rules relating to the integrity of the electronic 
          service.  Existing law requires these rules to conform to 
          the conditions set in CCP Section 1010.6, as amended from 
          time to time.  (CCP Section 1010.6(d))

          Existing Rules of Court provide for rules regarding 
          e-filing and serving of documents that any local rule would 
          be subject pursuant to Section 1010.6(c), above.  
          (California Rules of Court, Division 3, Chapter 2, rules 
          2.250-2.261)   

          This bill provides that, notwithstanding the authority of 
          the trial court to adopt local rules permitting e-filing of 
          documents, as specified, the Orange County Superior Court 
          may, by local rule and until July 1, 2014, establish a 
          pilot project to require parties to specified civil actions 
          to electronically file and serve documents, subject to 
          specified requirements and rules adopted by Council, as 
          specified, and the following specified conditions: 

          1. The court shall have the ability to maintain the 
             official court record in electronic format for all cases 
             where e-filing is required; 

          2. The court and the parties shall have access to more than 
             one electronic service provider capable of 
             electronically filing documents with the court, 
             including access directly through the court, and any 
             fees charged by the court or by an electronic service 
             provided shall be as specified and waived when deemed 
             appropriate by the court, including for any party who 
             has received a fee waiver; 

          3. The court must have a procedure for the filing of 
             nonelectronic documents in order to prevent the program 
             from causing undue hardship or significant prejudice to 
             any party in an action, including unrepresented parties; 
             and 

          4. A court that elects to require e-filing pursuant to this 
             authority for the Orange County Superior Court to 
             establish a pilot project, may permit documents to be 
             filed electronically until 12 a.m. on the day after the 
             Court date that the filing is due and the filing shall 

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             be considered timely, except as otherwise specified.  

          This bill provides that if a pilot project is established, 
          as specified, the Council shall evaluate and report to the 
          Legislature, on or before December 31, 2013, on the results 
          of the evaluation, including, among other things, the cost 
          of the program to participants, cost-effectiveness for the 
          court, effect on unrepresented parties and parties with fee 
          waivers, and ease of use for participants.

          This bill also requires the Council, on or before July 1, 
          2014, to adopt uniform rules to permit the mandatory 
          e-filing and service of documents for specified civil 
          actions in the trial courts of the state, as informed by 
          the study it conducted of the pilot.  This bill also 
          requires Council to include within those rules statewide 
          policies on vendor contracts, privacy, access to public 
          records, unrepresented parties, parties with fee waivers, 
          hardships, and rules relating to the integrity of 
          electronic service, and requires that those rules conform 
          to the conditions of the existing law section on e-filing 
          and service, as amended time to time.

          This bill provides that upon the adoption of uniform rules 
          by the Council for mandatory e-filing and service of 
          documents for specified civil actions in the trial courts 
          of the state, as specified.

          This bill provides that a superior court may, by local 
          rule, require mandatory e-filing, as specified.

          This bill provides that any superior court that elects to 
          adopt mandatory e-filing shall do so pursuant to the 
          requirements and conditions set forth in this bill, and 
          pursuant to the rules adopted by the Council, as specified.

          This bill makes other technical and conforming changes.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

             One-time costs in the range of $28,000 to $50,000 

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             (General Fund) for the Council to conduct the evaluation 
             of the pilot project and prepare the report to the 
             Legislature by December 31, 2013.

             One-time likely minor costs (General Fund) for the 
             Council to develop and adopt the uniform rules of court 
             by July 1, 2014.

             Minor costs within its existing budget allocation of 
             less than $100,000 (General Fund) to the Orange County 
             Superior Court to operate the pilot.  Ongoing future 
             cost savings in the range of $2 million to the extent 
             the pilot is successful in increasing efficiencies in 
             court operations.

             Unknown, significant future cost pressure for start-up 
             infrastructure and resource needs potentially in excess 
             of $100,000 to $300,000 per court electing to implement 
             mandatory e-filing to modify court case management 
             systems to meet standard interface requirements 
             necessary to effectuate e-filing.  To the extent 
             e-filing results in increased efficiency of court 
             operations, potentially significant ongoing future cost 
             savings.

           SUPPORT  :   (Verified  8/21/12)

          Orange County Superior Court (source)
          Judicial Council
          Los Angeles Superior Court
          Orange County Bar Association
          Riverside County Superior Court
          San Diego Superior Court

           ARGUMENTS IN SUPPORT  :    The author writes, "Section 1010.6 
          of the Code of Civil Procedure currently allows for 
          electronic filing of certain documents in limited types of 
          cases.  AB 2073 will permit a pilot project in Orange 
          County Superior Court to provide more widespread use of 
          electronic filing of court documents, provided certain 
          conditions are met.  In addition, it will require the 
          Judicial Council to establish statewide rules on the wider 
          use of electronic filing.  Orange County has already seen 
          substantial cost and efficiency savings, even from their 

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          limited use of E-filing.  �In addition,] the Federal Court 
          System already uses E-filing."

          The sponsor, the Orange County Superior Court, adds:

             Our Court accepts approximately one million civil 
             documents each year for filing by the clerk's office.  
             At present time, our Court receives about 29% of civil 
             and probate documents by way of voluntary electronic 
             filing (E-filing).  Documents E-filed by private lawyers 
             and law firms are virtually guaranteed to be correctly 
             filed as soon as they are submitted.  They do not have 
             to be docketed by a clerk and they do not have to be 
             scanned by our imaging department to be placed in our 
             computer network. . .  .  While paper documents filed at 
             the clerk's filing window are almost always processed 
             correctly, paper documents with a unique title or 
             ex-parte request may be delayed by 24-48 hours before 
             they are sent to the courtroom.  E-filing virtually 
             eliminates the problem of lost or improperly processed 
             documents.  Most importantly, once E-filing is complete, 
             the documents will be immediately available to the 
             research attorney and to the judge reviewing the 
             document via the court's computer network.  . . . 

             Due to the E-filing presently occurring in Orange 
             County, our Court has realized substantial budget 
             benefits while maintaining a high level of service to 
             the attorneys and the public who use the Orange County 
             Super Court . . . �and] has averted the need for 
             employee lay-offs or unpaid furloughs.  

             At least 25 other states have adopted some form of 
             mandatory E-filing . . .  Also the Federal Courts 
             mandate E-filing in every Federal District Court in the 
             Country.   . . .  The pilot program for E-filing in 
             Orange County, established by AB 2073, will be a 
             significant step in providing the trial courts in the 
             State of California an efficient and cost-saving tool in 
             difficult budgetary times.


           ASSEMBLY FLOOR  :  70-0, 5/25/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Beall, Block, 

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            Blumenfield, Bonilla, Bradford, Brownley, Buchanan, 
            Butler, Charles Calderon, Campos, Carter, Cedillo, 
            Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng, 
            Feuer, Fong, Furutani, Beth Gaines, Galgiani, Garrick, 
            Gatto, Gordon, Gorell, Hagman, Halderman, Harkey, 
            Hayashi, Roger Hern�ndez, Hill, Huber, Hueso, Huffman, 
            Jeffries, Jones, Lara, Logue, Bonnie Lowenthal, Mansoor, 
            Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, 
            Nielsen, Norby, Olsen, Pan, V. Manuel P�rez, Portantino, 
            Skinner, Smyth, Solorio, Swanson, Torres, Valadao, 
            Wagner, Wieckowski, Williams, Yamada, John A. P�rez
          NO VOTE RECORDED:  Atkins, Bill Berryhill, Fletcher, 
            Fuentes, Grove, Hall, Knight, Ma, Perea, Silva


          RJG:k  8/21/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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