BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2011-2012 Regular Session


          AB 2612 (Achadjian)
          As Amended April 30, 2012
          Hearing Date: June 19, 2012
          Fiscal: Yes
          Urgency: No
          RD   
                    

                                        SUBJECT
                                           
                                Courts: witness fees

                                      DESCRIPTION  

          Existing law requires that the compensation and expenses of 
          certain public employees subpoenaed to appear in court for 
          testimony in a civil action are paid by the subpoenaing party.  
          This bill would increase the amount that the subpoenaing party 
          must advance, together with the subpoena, from $150 to $275 for 
          each day that the employee is required to remain in attendance 
          pursuant to the subpoena.  

                                      BACKGROUND  

          California law allows specified public employees, including 
          peace officers, firefighters, trial court employees, state and 
          county employees, to be subpoenaed as witnesses in civil trials 
          with regard to events or transactions they perceived or 
          investigated in the course of their duties.  In doing so, 
          however, existing law requires that the subpoenaing party 
          provide, at the same time that the subpoena is provided, an 
          advance of a fee for each day that the employee is required to 
          remain in attendance pursuant to that subpoena.  The public 
          entity must return any amount later proven to have been in 
          excess, while the subpoenaing party must pay any difference 
          between the amount advanced and the actual amount.  

          In 1963, when this law was first passed, the amount was $25 for 
          each day.  By 1969, it was raised to $45, followed by $75 in 
          1974, $125 by 1980, and $150 by 1986.  That amount has stayed 
          static since 1986, despite increases seen in salaries and travel 
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          costs.  As a result, the amount paid in advance is necessarily a 
          smaller portion than the actual cost and is more likely to be 
          inadequate to cover the actual expenses as the years pass 
          without any increase.  While the public entity is entitled to 
          demand payment for the remaining portion, it has proven 
          difficult at times and invoices can go unpaid.  

          To address this issue and to close the widening gap between the 
          advanced amount and the actual amount owed, this bill would 
          raise the rate from $150 to $275 a day. 

                                CHANGES TO EXISTING LAW
           
           Existing law  allows specified public employees to be subpoenaed 
          as a witness with regard to events or transactions they 
          perceived or investigated in the course of their duties.  (Gov. 
          Code Sec. 68097.1.)  

           Existing law  provides that any peace officer, as defined, 
          firefighter, state employee, trial court employee, or county 
          employee, who is subpoenaed as a witness, shall receive the 
          salary or other compensation to which he or she is normally 
          entitled to from the public entity, as well as the actual 
          necessary and reasonable traveling expenses incurred in 
          complying with the subpoena.  (Gov. Code Sec. 68097.2(a).)  

           Existing law  requires that the party at whose request the 
          subpoena is issued to reimburse the public entity for the full 
          cost to the public entity incurred in paying for the employee's 
          salary or other compensation and traveling expenses, as 
          provided, for each day that the employee is required to remain 
          in attendance pursuant to the subpoena.  (Gov. Code Sec. 
          68097.2(b).) 

           Existing law  requires that the public entity refund any excess 
          amount paid if the actual expenses later prove to be less than 
          the amount tendered, and that the party at whose request the 
          subpoena is issued pay the difference between the amount 
          tendered and the actual expenses incurred by the public entity 
          if the amount proves to be more than the amount tendered.  (Gov. 
          Code Sec. 68097.2(c)-(d).)  

           Existing law  specifies that the amount of $150, together with 
          the subpoena, must be tendered on the person accepting the 
          subpoena for each day that the specified employee is required to 
          remain in attendance pursuant to the subpoena.  (Gov. Code Sec. 
                                                                      



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          68097.2(b).)

           This bill  would raise the above amount from $150 to $275.

                                        COMMENT
           
          1.  Stated need for the bill  
          
          According to the author:
          
            Assembly Bill 2612 would increase the subpoena deposit amount 
            from $150 to $275 per day, to reflect a reasonable amount to 
            cover the current cost to the public entity.  The $150 court 
            subpoena deposit �(CSD)] has not been increased since 1986 
            even though salaries and travel expenses have increased 
            dramatically since then.  Consequently, the cost of appearance 
            often exceeds $150.  While the public entity is entitled to 
            collect the amount owed by sending an invoice for the balance 
            due, there are occasions when these invoices are ignored.  

            Due to the California Highway Patrol's (CHP) regular 
            interaction with the public, CHP employees frequently testify 
            in court on civil cases.  This has resulted in uncollected 
            fines being especially detrimental for this agency.  The 
            average cost of a civil court appearance by a CHP officer is 
            $400.  CHP currently has an outstanding balance of uncollected 
            appearance fees of over $225,000 for the period of 1990 to 
            2011.  The proposed increase would allow CHP and other 
            agencies to recoup more of the costs associated with civil 
            court appearances by requiring a large amount of the 
            appearance fee to be deposited up front, thereby decreasing 
            the amount of potential unpaid fees the CHP or other agencies 
            must pursue.  This would result in public agencies reducing 
            personnel-hours needed for collection, decreasing commission 
            charges being paid to collection agencies, and it would 
            minimize write-offs when fees cannot be collected.  

          The California Highway Patrol (CHP), the sponsor of this bill, 
          adds "�t]his increase is a reasonable amount to cover costs 
          associated with employees' salary, travel expenses, 
          administrative costs, and benefits.  . . . AB 2612 would benefit 
          all public entities involved with the civil subpoena deposit 
          process."

          2.  Raising the advance deposit rate for the first time in over 25 
            years.  
                                                                      



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          For the first time in over 25 years, this bill proposes to raise 
          the amount that a requesting party must advance together with a 
          subpoena, for the attendance of specified public employees in a 
          civil proceeding.  Specifically, it would raise the amount from 
          $150 to $275 for each day that the employee is required to 
          remain in attendance pursuant to the subpoena.  

          In 1986, when the rate was last raised to the current $150 
          level, the Senate Judiciary Committee analysis noted that "�i]t 
          is a long-standing principle that the party demanding the 
          officer's presence should pay for his or her time and expenses, 
          as the public is denied the officers' services for the period 
          that he or she is in court.  To ensure that payment is made and 
          to facilitate bookkeeping, the subpoenaing party is required to 
          provide the court with an advance deposit which is intended to 
          approximate the ultimate cost of appearance.  In 1974�,] the 
          amount of the deposit, as set by statute, was raised from $45 
          per day to $75; in 1980�,] it was raised to $125.  In each case 
          proponents argued that an increase was justified because of 
          higher peace officer salaries and inflated costs.   The sponsors 
          of this measure make� ] a similar argument. (Sen. Judiciary Com. 
          analysis of AB 3138 (Reg. Session 1985-1986) July 8, 1986, p. 
          6.) 

          Here, the proponents also make a similar argument.  (See Comment 
          1.)  The fact that the deposit amount has remained static over 
          the last 25 years while other costs have arguably increased, 
          suggests that some increase is justifiable. Thus, it appears 
          appropriate to increase the deposit, although the amount of the 
          increase should take into account the present economic crisis 
          and budgetary constraints that have arguably increased costs for 
          litigants, as discussed further in Comment 3 below. 

          3.   Sufficiency of the proposed rate in light of other pertinent 
          considerations  

          This bill would raise the amount that a requesting party must 
          advance together with a subpoena, for the attendance of 
          specified public employees, from $150 to $275 for each day that 
          the employee is required to remain in attendance pursuant to the 
          subpoena.  
          A prior version of the bill proposed to increase the fee to 
          $300, a 100 percent increase, but the proposed increase was 
          reduced to the present value to address concerns about the 
          impact on litigants.
                                                                      



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          The author argues that "�i]n the 13-year period �in which the 
          deposit amount was increased from $25 to $150], the CSD amount 
          increased by 600 percent.  If this rate of increase is applied 
          to the 25-year period since 1986, the CSD would have increased 
          by 1,154 percent over the 1986 amount, which would bring the 
          current CSD rate to $1,731."  It should be noted that using that 
          calculation would result in a rate that is vastly over the daily 
          cost estimate provided by the author with respect to officers 
          ($400).   

          In its review of the 1986 deposit increase, the Senate Judiciary 
          Committee commented that, "the best test for a need in increase 
          was the sufficiency in the figure.  In general, the Legislature 
          has sought to ensure that the deposit is sufficient to cover 
          cost in 80% of the cases."  (Sen. Judiciary Com. analysis of AB 
          3138 (Reg. Session 1985-1986) July 8, 1986, p. 8.)  The sponsors 
          of that bill pointed out "the actual cost per day in salary for 
          a deputy sheriff would be $162.62 plus mileage, room and board, 
          and $215.28 for a sergeant" and argued that "the deposit amount 
          should be raised to once again approximate the actual amount, in 
          order to avoid billings of subpoenaing parties following the 
          officer's appearance."  (Id. at p. 7.)  Ultimately, the increase 
          to $150 was approved.  Similarly, the sponsor of this bill, CHP, 
          argues that the average cost for an officer is $400 and seeks an 
          increase of the rate to $275. 

          While it is unknown if $275 would cover 80 percent of all cases, 
          the figure offered by the sponsor suggests it would be a 
          reasonable amount considering all the circumstances.  Moreover, 
          other considerations caution against a higher rate-namely, that 
          a more substantial increase could raise concerns about the 
          impact on cases of persons who might not be able to afford that 
          rate, especially during times of severe economic crisis.  

          Budgetary factors aside, such considerations have historically 
          proven an important part of the determination of an appropriate 
          rate; even in 1986, similar issues were raised.  Just as with 
          this bill, the original proposal in 1986 was to raise the rate 
          from the then-current rate of $125 to $300.  That was lowered to 
          $150 after stakeholders raised concerns that a $300 rate would 
          discourage or prevent litigation involving peace officers as 
          witnesses.  Stakeholders also argued that using the full day 
          figure was misleading as many witnesses are present in court for 
          only a portion of the day.  (Id. at 7-8.)

                                                                      



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          As a matter of public policy, it is important to keep in mind 
          the impact of a $125 increase on litigants today, compared to 
          the impact of prior increases on litigants when the rates were 
          raised incrementally every six years or so by an average of $20 
          to $30.  (Interestingly, if the Legislature had continued to 
          authorize a $20-30 increase every six years post-1986, in 
          similar fashion to pre-1986, the current rate would be slightly 
          over $250.)   Again, staff notes that too significant of an 
          increase could have a detrimental impact on the ability of 
          persons to have their claims heard.  That being said, the 
          Legislature has not increased the rate in 25 years and the 
          proposed increase appears to be reasonable given the information 
          provided by the sponsor.  
           

           Support  :  California Fire Chiefs Association; California Peace 
          Officers' Association; California Peace Officers Research 
          Association of California; California Professional Firefighters; 
          California State Sheriffs' Association; Los Angeles Police 
          Protective League

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  California Highway Patrol

           Related Pending Legislation  :  None Known 

           Prior Legislation  :

          AB 3138 (Eaves, Ch. 747, Stats. 1986) See Comment 2. 

          AB 2294 (Roos, Ch. 472, Stats. 1980) raised the rate from $75 to 
          $125.

          AB 1897 (Holoman, Ch. 1290, Stats. 1974) raised the rate from 
          $45 to $75. 

          SB 466 (Lagomarsino, Ch. 342, Stats. 1969) raised the rate from 
          $25 to $45.

          SB 1257 (Grunsky, Ch. 1485, Stats. 1963) enacted Government Code 
          Section 68097.2, the subject of this bill, and set a rate of $25 
          for each day the public employee's attendance of was required.  

                                                                      



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           Prior Vote  :

          Assembly Floor (Ayes 74, Noes 0)
          Assembly Appropriations Committee (Ayes 17, Noes 0)
          Assembly Judiciary Committee (Ayes 10, Noes 0)

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