BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2076
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          Date of Hearing:  April 10, 2012

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                      AB 2076 (Ma) - As Amended:  April 9, 2012

           SUBJECT  :  COURT REPORTERS: FEES

           KEY ISSUE  :  IN ORDER TO ENCOURAGE COURTS TO COLLECT FEES TO FUND 
          COURT REPORTERS, SHOULD TRIAL COURTS BE ALLOWED TO RETAIN THE 
          FEES THEY COLLECT FOR OFFICIAL COURT REPORTERS AND SHOULD SUCH 
          FEES BE COLLECTED FOR ALL HEARINGS LASTING MORE THAN A STILL TO 
          BE DETERMINED PERIOD OF TIME?  

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

                                      SYNOPSIS
                                          
          Very substantial budget cuts have forced California courts to 
          close courtrooms and lay off staff, including court reporters.  
          As a result, courts in many counties no longer provide official 
          court reporters for some civil proceedings.  This bill, 
          supported by court reporters' associations and labor groups, 
          seeks to increase the availability of official court reporters 
          in civil actions by increasing the fees used to pay those 
          reporters and better incentivizing local courts to collect those 
          fees by allowing them to retain those fees and not share pro 
          rata with all courts.  The Judicial Council is creating a 
          subcommittee of the Trial Court Budget Working Group to study 
          whether allowing local courts to retain court reporter fees will 
          better incent their collection and help ensure there are court 
          reporters in civil courtrooms and, also, to work through the 
          intricacies of how such a proposal would be implemented.  The 
          Judicial Council has agreed to continue working with the author 
          as this bill proceeds through the legislative process and as its 
          subcommittee develops appropriate recommendations.

           SUMMARY  :  Expands civil court reporter fees and requires that 
          the fees be retained for use in the courts that collect them.  
          Specifically,  this bill  :

          1)States the intent of the Legislature that allowing local 
            courts to retain civil court reporter fees will incentivize 
            the consistent and efficient collection of mandated civil 








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            court reporters fees and will continue to incent courts to use 
            official court reporters in civil proceedings.

          2)Provides that fees collected for civil court reporters must be 
            retained by the court in which the fee is collected.

          3)Provides that for each civil trial court proceeding lasting 
            more than __ minutes, a fee equal to the actual cost of 
            providing the services of an official court reporter shall be 
            charged, on a pro rata basis, to the parties.

           EXISTING LAW  :  

          1)Establishes the Trial Court Trust Fund as specified.  
            (Government Code Section 68085.  All further statutory 
            references are to this code unless otherwise noted.)

          2)Provides that for each civil trial court proceeding lasting 
            more than one hour, a fee equal to one-half day shall be 
            charged, on a pro rata basis, to the parties.  Requires the 
            Judicial Council to report every year to the Joint Legislative 
            Budget Committee on specified fees collected for court 
            reporters and the total amount spent by the courts for 
            official court reporters.  (Section 68086.)

          3)Provides that $30 of each of several specified civil filing 
            fees be used for services of an official court reporter in 
            civil proceedings.  Provides that this $30 is designed as an 
            incentive for courts to use official court reporters in civil 
            proceedings, but that nothing affects the Judicial Council's 
            authority to allocate these funds to replace reductions in 
            general fund appropriations to the Trial Court Trust Fund.  
            (Section 68086.1.)

          4)Requires that, among other fees, the fees collected by the 
            trial courts for official court reporters be deposited in a 
            bank account established by the Administrative Office of the 
            Courts (AOC).  Requires the AOC to distribute those deposits 
            as provided, with the remainder going to the Trial Court Trust 
            Fund.  (Section 68085.1.)

          5)Provides that whenever a daily transcript is ordered in a 
            civil case requiring the services of more than one court 
            reporter, the party requesting the daily transcript must pay 
            an additional specified rate and that such fee shall be 








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            distributed to the court to offset the cost of the additional 
            reporter.  (Section 69953.5.)

           COMMENTS  :  As a result of the recession and the state budget 
          crisis, the courts' budget has been reduced by over $650 million 
          annually.  These very substantial reductions have resulted in 
          closed courtrooms, reduced clerks' offices hours and self-help 
          programs and court staff layoffs, including layoffs of court 
          reporters in civil proceedings.  As a result, many civil 
          courtrooms are now operating without official court reporters.  
          Lack of court-provided reporting services frustrates the goals 
          of California's system of justice by preventing litigants from 
          appealing decisions, keeping parties from drafting orders 
          effectively, and preventing those attempting to recount what 
          actually happened during proceedings - including jurors 
          deliberating on the case - from being able to do so.  
          Additionally, the Commission on Judicial Performance has voiced 
          concern that lack of an official record makes it much harder to 
          prove judicial misconduct and, thus, impairs the Commission's 
          ability to protect the public from rogue judges. 

          This bill seeks to increase the use of official court reporters 
          in courts by allowing courts to keep and use the fees that they 
          collect for court reporters locally.  It is believed that 
          allowing courts to keep the fees will incentivize them to 
          collect more fees and use them to help increase the use of 
          official court reporters in civil courtrooms.  In addition, in 
          order to help increase the funds available to pay for court 
          reporters, this bill looks to charge court reporter fees for 
          proceedings possibly lasting less than one hour.

          In support of the bill, the author writes:

               There has been growing concern over the inconsistent 
               collection of court reporter fees across counties, and 
               whether the fees have been adequately re-appropriated to 
               local trial courts.

               Due to the difficult budget climate, trial courts are facing 
               mounting challenges on how to absorb the costs associated 
               with providing court reporting services for trials that last 
               less than an hour. 

               While many cases may be brief, the fees collected for the 
               numerous court proceedings a court reporter covers 








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               throughout a day is insufficient to cover the costs for 
               court reporting services.

               Court reporters' presence helps to prevent mumbled 
               statements, reduce confusion over testimonies, and provide a 
               well-documented court record for proceedings where exact 
               well-documented court record is critical, especially after a 
               legal hearing is over. 

               AB 2076 will allow the local trial court to retain the 
               dollars collected by the local trial court to allow courts 
               to continue to offer important judicial services.  
           
           Background on Court Reporter Fees  :  In 1998, the Trial Court 
          Funding Act (AB 233 (Escutia and Pringle), Chap. 850, Stats. 
          199) required that all court reporters fees collected by the 
          trial courts be deposited into the Trial Court Trust Fund, where 
          nearly all court-collected fees are deposited.  The court 
          reporter fees are then returned to the trial courts as part of 
          their annual allocation.  The fees are distributed to the courts 
          on a pro rata basis and not based on dollars collected.  Thus, 
          while not all trial courts are aggressively charging and 
          collecting the court reporter fees, all courts share equally 
          (based on their pro rata share) in those collections.  

          Fees to help cover the cost of maintaining official court 
          reporter in civil courtrooms come from two sources.  The initial 
          civil filing fee includes $30 to cover the cost of court 
          reporters.  In addition, parties in civil proceedings are 
          charged a fee for the services of an official court reporter for 
          all proceedings lasting longer than an hour.  According to the 
          most recent Judicial Council report, courts collect $21.5 
          million for court reporters from first paper filing fees and an 
          additional $12.5 million from the fee for proceedings lasting 
          longer than an hour, for a total of $35 million.  The Judicial 
          Council estimates that courts spent nearly $83 million on court 
          reporters in civil proceedings last year, more than double what 
          is collected from the specified fees.

           The Author and Sponsors Believe This Bill Will Help Decrease the 
          Number of Civil Proceedings That Occur Today Without a Court 
          Reporter Present and Without a Record  :  This bill should help 
          increase the fees available to fund official court reporters 
          and, as a result, the number of civil proceedings with court 
          reporters, in two ways.  First, by allowing local courts to keep 








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          the fees they charge and collect, courts will directly benefit 
          from collecting the fees and improving collection efforts, thus 
          providing an incentive to collect more.  This, in turn, should 
          increase the funds available to the local courts to pay for 
          court reporters.  There are a number of locally collected fees 
          that are now retained by the courts that collect them (or 
          returned dollar for dollar to those courts from the Trial Court 
          Trust Fund), and this bill would follow those models.

          Second, by seeking to revise when parties start accruing fees 
          for court reporters, this bill also hopes to increase available 
          funds.  Currently, parties are only required to pay for court 
          reporters if the proceeding lasts more than one hour.  If it 
          does, the parties, on a pro rata basis, are charged a fee equal 
          to one-half day reporting.  If the proceeding lasts less than an 
          hour, the parties are not charged any fee for the court 
          reporter.  This bill seeks to charge the fee even when 
          proceedings last less than an hour.  However, at some point for 
          short hearings, particularly during law and motion calendars, it 
          is not cost effective for the courts to track, charge and 
          collect fees from parties.  Moreover, since this bill proposes 
          to only charge for actual time, as opposed to the current 
          statutorily specified half-day rate for hearings over an hour, 
          it is not clear if this proposal will result in increased funds 
          available to pay for court reporters.  The author, the sponsors 
          and interested stakeholders have agreed to continue to work 
          together to determine the correct time period for charging 
          parties for court reports in order to ensure that the bill 
          actually helps increase funds available for court reporters.  As 
          a result, this bill now appropriately leaves the minimum amount 
          of time when fees will be charged blank.

           Judicial Council Subcommittee Now Studying the Issue  :  The 
          Judicial Council is creating a subcommittee of the Trial Court 
          Budget Working Group to study whether allowing local courts to 
          retain court reporter fees will better incentive the collection 
          of those and help ensure that there are court reporters in civil 
          courtrooms and, also, to work through the intricacies of how 
          such a proposal would be implemented.  The Judicial Council has 
          agreed to continue working with the author as this bill proceeds 
          through the legislative process and as its subcommittee develops 
          appropriate recommendations. 

           REGISTERED SUPPORT / OPPOSITION  :   









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           Support 
           
          California Court Reporters Association (sponsor)
          California Official Court Reporters Association (sponsor)
          Alameda County Official Court Reporters Association
          Fresno Superior Court Reporters
          Laborers' Local 777 & 792
          Los Angeles County Court Reporters Association
          Northern California Court Reporters Association
          Professional and Technical Engineers, IFPTE Local 21
          San Diego County Court Employees Association
          San Diego Superior Court Reporters Association
          Service Employees International Union

           Opposition 
           
          None on file
           

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