BILL ANALYSIS                                                                                                                                                                                                    �



                                                                AB 2073
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        CONCURRENCE IN SENATE AMENDMENTS
        AB 2073 (Silva)
        As Amended August 21, 2012
        Majority vote 
         
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        |ASSEMBLY:  |70-0 |(May 25, 2012)   |SENATE: |35-0 |(August 22,     |
        |           |     |                 |        |     |2012)           |
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         Original Committee Reference:    JUD.  

         SUMMARY  :  Authorizes the Orange County Superior Court to establish a 
        pilot project mandating that parties electronically file documents 
        in specified civil cases and requires the Judicial Council to adopt 
        a rule on mandatory electronic filing before July 1, 2014.  
        Specifically,  this bill  : 

        1)Allows the Orange County Superior Court, by local rule and until 
          July 1, 2014, to establish a pilot project to require parties to 
          eligible civil actions to electronically file and serve documents, 
          provided, among other things:

           a)   The court has the ability to maintain the official court 
             record electronically;

           b)   The court and the parties either have access to more than 
             one electronic service provider capable of electronically 
             filing documents with the court, or have direct access through 
             the court; 

           c)   The fees that may be charged for electronic filing must be 
             limited as specified, including waived when deemed appropriate; 
             and,

           d)   The court has a procedure for filing of nonelectronic 
             documents to prevent undue hardship or significant prejudice to 
             any party.

        2)Requires the Judicial Council, if a pilot is established under 1) 
          above, to conduct an evaluation of that pilot and to report to the 
          Legislature by December 31, 2013.

        3)Requires the Judicial Council, before July 1, 2014, to adopt a 
          uniform rule permitting mandatory electronic filing and service of 








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          documents in specified civil cases, which shall be informed by the 
          study in 2) above, and which shall include specified 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.

        4)Clarifies that upon the adoption of uniform rules for mandatory 
          electronic filing and service of documents, a trial court may, by 
          local rule, require mandatory electronic filing, provided the rule 
          complies with specified requirements.

         The Senate amendments  clarify that trial courts may, by local rule, 
        require mandatory electronic filing after the Judicial Council has 
        adopted its statewide rule.
         




        EXISTING LAW  :

        1)Allows parties to consent to electronic service of documents, as 
          defined, and as permitted by rules.  Permits courts to allow 
          electronic filing of documents pursuant to rules established by 
          local trial courts and the Judicial Council.  

        2)Requires the court to permit a party or an attorney to file an 
          application for a fee waiver as part of the electronic filing 
          process.  

        3)Permits a court to require electronic filing of documents in 
          complex civil litigation cases.  

        4)Requires the Judicial Council to adopt uniform rules relating to 
          the integrity of electronic filing and service of documents in the 
          trial courts, which must include statewide policies on vendor 
          contracts, privacy, access to public records and rules relating to 
          the integrity of electronic service.  

        5)Sets forth rules regarding electronic filing and serving of court 
          documents.  

         AS PASSED BY THE ASSEMBLY  , this bill was substantially similar to 
        the version approved by the Senate.









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         FISCAL EFFECT  :  According to the Senate Appropriations Committee:

        1)One-time costs in the range of $28,000 to $50,000 (General Fund) 
          for the Judicial Council to conduct the evaluation of the pilot 
          project and prepare the report to the Legislature by December 31, 
          2013.

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

        3)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.

        4)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 
          electronic filing to modify court case management systems to meet 
          standard interface requirements necessary to effectuate electronic 
          filing.  To the extent electronic filing results in increased 
          efficiency of court operations, potentially significant ongoing 
          future cost savings.
         
          COMMENTS  :  Existing law allows trial courts to adopt a local rule 
        permitting parties to electronically file and serve legal documents, 
        consistent with specified statutes and rules.  This bill, sponsored 
        by the Orange County Superior Court, allows the Orange County 
        Superior Court, by local rule and until July 1, 2014, to establish a 
        pilot project to require parties to eligible civil actions to 
        electronically file and serve documents.  The pilot must satisfy a 
        number of requirements.  If the Orange County court establishes the 
        pilot, the bill requires the Judicial Council, to conduct an 
        evaluation of that pilot and to report to the Legislature by 
        December 31, 2013.

        The bill also requires the Judicial Council, before July 1, 2014, to 
        adopt a uniform rule permitting mandatory electronic filing and 
        service of documents in specified civil cases, which is to include 
        specified 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.









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        Electronic filing and service of documents is a significant 
        efficiency for courts that have the capacity to process such 
        filings.  Many state courts throughout the country have electronic 
        filing capabilities.  Some of these courts permit electronic filing, 
        while others mandate it.  Likewise, the federal rules allow federal 
        courts to accept electronic filing, if they so choose and permit 
        federal courts to require electronic filing "only if reasonable 
        exceptions are allowed."  Generally, under that approach, only 
        attorneys are mandated to participate.  Pro per litigants are 
        generally not required to file electronically.  

        Most trial courts in California today do not have the capacity to 
        accept electronically filed documents, so most courts operate with 
        paper filings and paper files that must be processed, stored and 
        retrieved in time for court hearings.  The California Court Case 
        Management System (CCMS) was to have e-filing capacity.  Based on 
        significant problems, the Judicial Council voted to stop deployment 
        of CCMS on March 27, 2012.  That action included the direction to 
        develop, in the near term, improved court efficiencies through, 
        among other things, e-filing.  Judicial Council is now launching an 
        effort that will result in statewide standards for electronic 
        filing.

        Any rule that mandates, as opposed to permits, e-filing must take 
        into consideration the needs of litigants, particularly 
        unrepresented litigants, the availability of court resources for 
        assistance, the costs and other burdens.  Such a rule should also 
        consider the types of cases that are appropriate for a mandate, as 
        well as the types of documents that should be excluded from 
        e-filing.  A rule should also ensure uniformity in processing, so 
        attorneys do not have different and potentially conflicting 
        requirements in different courts.  Any rule should also ensure that 
        parties are not forced to use only one vendor (so local courts do 
        not get to pick winners), and, should consider the appropriateness 
        of special fees charged if e-filing is mandated and, if so, how fee 
        waivers are to be provided.

        In support of the bill the Orange County Superior court writes:

             Our Court accepts approximately one million civil documents 
             each year for filing by the court clerk's office. . .  E-filing 
             virtually eliminated the problem of lost or improperly 
             processed documents.  More importantly, once the E-filing is 
             complete, the documents will be immediately available to the 
             research attorney and to the judge reviewing the document via 








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             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 public 
             who use the Orange County Superior Court.  The successful use 
             of E-filing and other cost-savings innovations by our Court has 
             averted the need for employee lay-offs or unpaid furloughs.  
             E-filing requires less court staff to process cases and manage 
             the court records.  E-filing makes the court records available 
             faster and sooner to everyone, including the public.


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


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