BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2256
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          Date of Hearing:   March 25, 2014

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
                    AB 2256 (Garcia) - As Amended:  March 18, 2014

                              As Proposed to be Amended
           
          SUBJECT  :   CIVIL PROCEDURE: SERVICE AND FEES: SHERIFFS

           KEY ISSUE  :  SHOULD STATUTORY FEES FOR SERVICE OF CIVIL PROCESS  
          AND MANY OTHER SERVICES PROVIDED BY SHERIFFS BE MODESTLY  
          INCREASED, AND SHOULD VARIOUS OTHER CHANGES RELATED TO SERVICE  
          OF PROCESS BE MADE TO INCREASE OPERATIONAL EFFICIENCIES FOR  
          SHERIFFS?

                                      SYNOPSIS
          
          This bill, sponsored by the California State Sheriff's  
          Association and the Los Angeles County Sheriff, primarily seeks  
          to increase fees for service of civil process and other types of  
          services provided by sheriffs.  In most cases, the fee increases  
          sought by this bill are modest and in the range of $5 to $10 per  
          service provided.  Sheriff associations supporting the bill  
          contend that these fee increases are needed to address  
          significant budget shortfalls that have impaired the sheriffs'  
          civil process operations, and will help the sheriffs rely less  
          on taxpayer money to conduct civil services and more upon fees  
          paid by users of the services.  In addition, the bill contains a  
          number of otherwise unrelated provisions that seek to increase  
          operational efficiencies for sheriffs in carrying out their  
          day-to-day duties related to service of civil process, and  
          conserve scarce resources.  Among these are proposals to ease  
          sheriffs' access to gated communities for the purpose of serving  
          legal process, and to clarify that certain warrants for failure  
          to appear at an assert examination may appropriately be issued  
          to any peace officer, not just the sheriff.  Proposed amendments  
          to the bill remove additional policy proposals that the author  
          has decided not to pursue at this time in this particular bill.   
          There is no known opposition to the bill.

           SUMMARY  :   Revises and increases statutorily prescribed fees for  
          serving, executing, and processing required court notices,  
          writs, orders, and other services provided by sheriffs, and  
          makes various other changes relating to service of civil  








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          process.  Specifically,  this bill  :   

          1)Increases the fees for many services provided by sheriff's  
            departments, such as serving, executing and processing court  
            notices, writs and orders.  Among these increases are the  
            following:

             a)   The fee for service of a summons and complaint is  
               increased from $35 to $40.

             b)   The fee for serving or executing any process or notice  
               required by law is increased from $35 to $40.

             c)   The fee for serving, executing, or processing any writ  
               or order where the levying officer is required to take  
               immediate possession of the property levied upon is  
               increased from $85 to $100.

             d)   The fee for serving a writ of possession of real  
               property on an occupant or the occupants or for posting and  
               serving a copy on the judgment debtor is increased from $75  
               to $85.

             e)   The additional fee for removing an occupant or occupants  
               from the premises and putting a person in possession of the  
               premises is increased from $50 to $60.

             f)   The fee for serving an earnings withholding order under  
               the Wage Garnishment Law, including, but not limited to,  
               the costs of postage or traveling, and for performing all  
               other duties of the levying officer under that law with  
               respect to the levy is increased from $30 to $35.

          2)Increases, from $15 to $18, the set-aside amount of any fee  
            collected by the sheriff's civil division or marshal under  
            Sections 26721, 26722, 26725, 26726, 26728, 26730, 26733.5,  
            26734, 26736, 26738, 26742, 26743, 26744, and 26750 of the  
            Government Code that is required to be deposited in a special  
            fund in the county treasury.

          3)Repeals the U.S. citizenship requirement that applies to any  
            person who seeks to service legal process in an action against  
            a sheriff.

          4)Requires access to a gated community by a sheriff, registered  








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            process server, or licensed private investigator, whether or  
            not a guard is present, for the purpose of performing lawful  
            service of process or service of a subpoena, and repeals the  
            requirement for disclosure of the identity of the person to be  
            served to a guard at the gated community.

          5)Provides that a sheriff or marshal may not serve a summons and  
            complaint upon a business organization whose legal business  
            form is unknown.

          6)Clarifies that, even if service of garnishment on a bank is  
            ineffective under CCP Section 684.115, the bank is  
            nevertheless required to respond to the legal process by  
            mailing or delivery of the garnishee's memorandum to the  
            levying officer within the time otherwise provided, with a  
            statement on the memorandum stating that the legal process was  
            not properly served at the bank's designated location for  
            receiving legal process, and providing the address at which  
            the bank is to receive legal process.

          7)Repeals the sheriff's fee to serve a contempt warrant upon a  
            person who fails to appear for an asset examination, and makes  
            a technical correction that incorrectly requires the court to  
            set bail in the amount of the warrant when a warrant for  
            contempt is issued pursuant to Civil Code Section 1993(b).

          8)Clarifies that a warrant issued by the court to compel a  
            person to appear for an asset examination shall be directed to  
            any peace officer, not only a sheriff.

          9)Allows the sheriff to publish notice of service of a  
            protective order on the sheriff's public website, in lieu of  
            or in addition to providing such notice by email or telephone  
            to the person protected by the order.


           EXISTING LAW:   

          1)Prescribes fees for serving, executing, and processing  
            required court notices, writs, orders, and other services  
            provided by sheriffs.  (Government Code Sections 26720 through  
            26751.)

          2)Requires a person executing service of process in an action  
            against a sheriff to be a citizen of the United States over  








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            the age of 18 years.  (Code of Civil Procedure 262.7.)

          3)Requires that a person shall be granted access to a gated  
            community for a reasonable period of time for the purpose of  
            performing lawful service of process or service of a subpoena,  
            upon identifying to the guard the person to be served and upon  
            displaying a current driver's license or other specified form  
            of identification.  (Code of Civil Procedure Section 415.21.)

          4)Permits service of a summons and complaint upon a business  
            organization whose legal business form is unknown.  (Code of  
            Civil Procedure Section 415.95.)

          5)Requires a writ of execution directed to the levying officer  
            to include the name of the judgment debtor, and to state the  
            type of legal entity of the judgment debtor if the debtor is  
            not a natural person.  (Code of Civil Procedure Section  
            687.010(a)(4).)

          6)Permits, but does not require a bank to remit the garnishee's  
            memorandum to the levying officer, as specified, in certain  
            cases where service of process is deemed ineffective under  
            existing law establishing procedures for service of process  
            and execution of levies at a central location designated by a  
            bank and its other branches.  (Code of Civil Procedure Section  
            684.115(f).)

          7)Provides that the failure to appear for an asset examination  
            is deemed contempt for which a warrant may be issued.  (Code  
            of Civil Procedure 491.160(a) and 708.170(a).)

          8)Authorizes the court to issue a warrant for the arrest of a  
            witness who fails to appear pursuant to a subpoena or court  
            order, and that such warrant is directed to the sheriff of the  
            county in which the witness may be located.  (Code of Civil  
            Procedure Section 1993(a).)

          9)Permits the sheriff to notify the party protected by a  
            protective order by telephone or email when service of the  
            protective order is made.  (Government Code Section 6103.3.)
           
          FISCAL EFFECT  :  As currently in print this bill is keyed  
          non-fiscal.

           COMMENTS  :  This bill, sponsored by the California State  








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          Sheriff's Association and the Los Angeles County Sheriff,  
          primarily seeks to increase fees for service of legal process  
          and other types of services provided by sheriffs.  In most  
          cases, the fee increases sought by this bill are modest and in  
          the range of $5 to $10 per service provided.  In addition, the  
          bill contains a number of otherwise unrelated provisions that  
          seek to increase operational efficiencies for sheriffs in  
          carrying out their day-to-day duties related to service of civil  
          process, and conserve scarce resources.

           Fee increases.   According to the author, the primary purpose of  
          the bill is to make modest increases to the fees charged by  
          sheriffs' departments to address significant budget shortfalls  
          that have impaired the sheriffs' civil process operations.  The  
          author states:

               Civil fees are designed to cover the cost of Sheriff  
               Civil process operations and enforcement to serve  
               process and to serve other court orders such as Writs  
               of Execution and Writs of Possession.  However, the  
               fees are not covering the costs of doing business. In  
               Los Angeles County, the fees pay for only  
               approximately 50% of the actual costs, the rest of the  
               costs are made up by the County and its general fund.   
               This was never designed to be funded by county money  
               and was supposed to be funded by user fees.  This bill  
               seeks small increases to these user fees to partially  
               recover costs incurred with the service of process. .  
               .  Unlike the sheriff's jail and patrol operations  
               which are funded solely by taxpayer dollars, civil  
               process operations' are supplemented by fees paid by  
               litigants.

          Proponents generally contend that the fees currently assessed  
          cover only a portion of the costs sheriffs incur in performing  
          service of process, and often force sheriffs' budgets to bear  
          the majority of the burden.  They contend that these proposed  
          fee increases are needed to increase revenue, help offset  
          increasing costs, and make service of process functions more  
          self-supporting to protect local governments from having to  
          cover budgetary shortfalls.

          This bill seeks increases to most types of civil process-related  
          service offered by sheriffs under the relevant Article  
          (commencing with Section 26720) of the Government Code  








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          specifying fees to be charged by sheriffs.  As recently amended,  
          the increases currently sought are smaller in amount than those  
          sought in the introduced version of the bill-ranging from $5 to  
          $10 above existing fee amounts.  The author has circulated the  
          proposed increases among various stakeholders, including the  
          private process servers, debt collectors, and trial attorneys,  
          and there remains no known opposition to this bill.

          In addition, this bill seeks to increase, from $15 to $18, the  
          amount of any applicable fee collected by the sheriff's civil  
          division that is required to be deposited in a special fund in  
          the county treasury.  The proposed new $18 set-aside amount  
          applies to fourteen types of common fees specified in the  
          Government Code.  According to the author, this is not a fee  
          increase, but rather a subsidy provision that allows the sheriff  
          to retain a greater share of fee revenue for its civil  
          operations and minimize the amount that taxpayers might have to  
          ultimately subsidize when the sheriff's costs exceed its  
          revenue.

           This bill revises requirements for sheriffs to gain access to  
          gated communities to perform service of process.   An increasing  
          number of Californians now live in gated communities that  
          frequently are staffed by a guard at the main entrance.   
          Existing law requires a sheriff or other person seeking to  
          perform service of process upon a resident of a gated community  
          staffed by a guard to display his or her identification to the  
          guard and disclose the identity of the person to be served.   
          According to the author, conditional access to a gated community  
          conflicts with the authority of the sheriff to access such areas  
          to perform his or her legal duties, including lawful service of  
          process.  Moreover, the author contends that this requirement  
          serves little useful purpose other than to alert a resident of a  
          gated community that a sheriff is present at the guard's station  
          to serve legal process and allow the resident an opportunity to  
          avoid being served.  Accordingly, this bill would guarantee the  
          sheriff (or other qualified person) access to a gated community  
          whether or not a guard is present, for the purpose of performing  
          lawful service of process or service of a subpoena, and the bill  
          would repeal the requirement that the identity of the person to  
          be served be disclosed to the guard at the gated community, if  
          there is one.  Residence in a gated community with an entrance  
          guard should not entitle a person to avoid being served,  
          particularly when doing so will increase the number of return  
          visits a sheriff may have to make to successfully serve the  








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          papers, at additional cost.
           
          This bill codifies the sheriff's practice of serving a summons  
          on a business organization only after determining its business  
          form.   CCP Section 415.95 permits service of a summons and  
          complaint upon a business organization whose legal business form  
          is unknown, but according to the author, does not provide clear  
          direction to sheriffs who have to serve summons and complaints  
          on such businesses.  The sheriffs contend that it is essential  
          for them to know the legal business form of the debtor when  
          attempting to enforce a writ because businesses may change their  
          legal form and complicate matters for the creditor.  This bill  
          would clarify that sheriffs cannot be compelled to serve process  
          on a business organization whose form is unknown, and would  
          essentially codify the sheriffs' current practice to instead  
          observe the rule of CCP Section 687.010(a)(4), which requires  
          the writ of execution to state the type of legal entity of the  
          judgment debtor when the debtor is not a natural person.

           This bill authorizes sheriffs to provide website notification  
          that a protective order has been served to the person protected  
          by the order.   Existing law permits but does not require the  
          sheriff to notify a person protected by a protective order that  
          the order was served by contacting the protected person by phone  
          or email.  This bill would revise these provisions to allow the  
          sheriff to post this information to the sheriff's website in  
          lieu of, or in addition to, email or telephone notification.   
          Importantly, existing law already requires notification to the  
          protected person by U.S. mail to confirm the order was served,  
          and this bill does not disturb that requirement.  Instead, it  
          merely revises the additional options for confirmation of  
          service to allow the information to be posted to a website,  
          rather than an email message or phone call.  According to the  
          author, this will help conserve sheriffs' resources because  
          website posting is more efficient than telephone calling,  
          particularly for large batches of protective orders.
           
          This bill makes a number of other largely technical and  
          clarifying changes.   Among other things, this bill clarifies  
          that, even if service of garnishment on a bank is ineffective  
          under CCP Section 684.115, the bank is nevertheless required to  
          respond to the legal process by mailing or delivery of the  
          garnishee's memorandum to the levying officer, as prescribed.   
          By making such response mandatory rather than permissive, this  
          provision eliminates an ambiguity that, according to sheriffs,  








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          was creating unintended negative consequences for sheriffs, and  
          moreover put Section 684.115 in conflict with general civil law  
          requirements that, with only one exception, do not allow a  
          person to be served to refuse service at his or her discretion.

          In addition, this bill makes technical changes to clarify that a  
          warrant issued by the court to compel a person to appear for an  
          asset examination shall be directed to any peace officer, not  
          only a sheriff.  Finally, this bill repeals an outdated and  
          peculiar provision of law, dating to 1951, that requires any  
          person serving process in an action against a sheriff to be an  
          American citizen.  The Committee's research on this matter  
          indicates that this is perhaps the only provision in state law  
          requiring a person serving legal process to be a U.S. citizen,  
          and that there is no sound public policy reason justifying such  
          a citizenship requirement, if ever one existed.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Los Angeles County Sheriff's Office (co-sponsor)
          California State Sheriff's Association (co-sponsor)

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Anthony Lew / JUD. / (916) 319-2334