BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE JUDICIARY COMMITTEE
                         Senator Hannah-Beth Jackson, Chair
                              2013-2014 Regular Session


          AB 2727 (Frazier)
          As Introduced
          Hearing Date: June 10, 2014
          Fiscal: NF
          Urgency: No
          RD


                                        SUBJECT
                                           
                       Courts: witness local agency employees

                                      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 a local agency employee is required to remain in  
          attendance pursuant to the subpoena.  

                                      BACKGROUND  

          California law acknowledges that there is a cost when local  
          agency employees are subpoenaed as witnesses in civil trials  
          with regard to events or transactions they perceived or  
          investigated in the course of their duties.  To offset that  
          cost, the subpoenaing party, however, is required to provide, at  
          the same time that the subpoena is provided, an advance of a fee  
          (advance deposit) for each day that the employee is required to  
          remain in attendance pursuant to that subpoena.  The local  
          agency 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.  

          Under California law, similar provisions exist with respect to  
          other (non-local agency) public entity employees, including  
          peace officers, firefighters, trial court employees, and state  
          and county employees.  When the statute pertaining to these  
          public entity employees was first passed in 1963, the amount of  
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          the advance deposit 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 stayed static from 1986 until 2012,  
          despite increases seen in salaries and travel costs.  Then, in  
          2012, AB 2612 (Achadjian, Ch. 377, Stats. 2012) was enacted to  
          raise the rate for public entity employees, including county  
          employees, to $275.  

          With respect to local agency employees, the $150 advance deposit  
          rate has not been raised since it was first implemented in 1991  
          by SB 109 (Kopp, Ch. 230, Stats. 1991).   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 local agency 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 for employees of local agencies to be  
          subpoenaed in a civil action or proceeding as a witness with  
          regard to events or transactions they perceived or investigated  
          in the course of their duties, to which that local agency is not  
          a party.  Existing law specifies that the employee shall receive  
          the salary of other compensation to which he or she is normally  
          entitled from that local agency during the time that he or she  
          prepares for his or her response and appearance, the time spent  
          traveling to and from the place where the court or other  
          tribunal is located, and while he or she is required to remain  
          at that place pursuant to the subpoena, as well as the actual  
          necessary and reasonable traveling expenses incurred in  
          complying with the subpoena.  (Gov. Code Sec. 68096.1(a).)  

           Existing law  defines "local agency" for these purposes to mean a  
          city, county, city and county, special district, redevelopment  
          agency, or any other political subdivision of the state.  (Gov.  
          Code Sec. 68096.1(f).)  

           Existing law  requires that the party at whose request the  
          subpoena is issued to reimburse the local agency for the full  
          cost incurred by the local agency in paying for the employee's  
                                                                      



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          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.  
          68096.1(b).) 

           Existing law  requires that the local agency 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 local agency if  
          the amount proves to be more than the amount tendered.  (Gov.  
          Code Sec. 68096.1(c)-(d).)  

           Existing law  requires that the amount of $150, together with the  
          subpoena, must be tendered to the local agency for each day that  
          the employee is required to remain in attendance pursuant to the  
          subpoena.  (Gov. Code Sec. 68096.1(b).)

           This bill  would raise the above amount to $275 for each day that  
          the employee is required to remain in attendance pursuant to the  
          subpoena. 
                                        COMMENT
           
          1.    Stated need for the bill
           
          According to the author: 

            Local agencies are required to pay an employee's regular  
            salary and other compensation when the employee is required by  
            subpoena to attend a civil action or proceeding as a witness  
            in litigation in a matter regarding an event or transaction  
            that he or she perceived or investigated, in the course of his  
            or her duties, when the public entity is not a party. Under  
            current law, the party that requests the subpoena must pay  
            local agencies a $150 deposit for each day that an employee is  
            required to remain in attendance under subpoena. Additionally,  
            the requesting party must reimburse the local agency for the  
            actual employee costs beyond the $150 (and local agencies are  
            responsible for returning deposit funds if actual employee  
            expenses are less than the deposit). 

            However, in practice, local governments have found that  
            collecting amounts beyond the $150 deposit can sometimes be  
            challenging and administratively difficult. Generally, a local  
            government's legal remedy for non-payment is to sue in small  
            claims court. Except for in egregious cases, the work to  
                                                                      



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            prepare for such litigation might not justify what the local  
            agency would expect to recover.

            The purpose of this bill is to treat local governments fairly  
            and consistently, and protect them from covering expenses for  
            which they may not receive required reimbursements.

            The $150 deposit to local agencies has not been adjusted since  
            it became a requirement in the 1990s, despite the fact that  
            employee costs have risen in the past two decades and the  
            state has already increased the subpoena deposit amount for  
            some types of public employers and positions. Specifically, AB  
            2612 (Achadjian), Chapter 377, Statutes of 2012, increased the  
            amount from $150 to $275 for certain public employees,  
            including peace officers, firefighters, state employees, trial  
            court employees, and county employees.

            There is not a public policy or practical reason why different  
            public entities and classifications should operate under  
            different subpoena deposit requirements.

            Additionally, there is a potential conflict in the language  
            between Government Code sections 68096.1 and 68097.2 that  
            makes it unclear if the subpoena deposit amount for all county  
            employees is $150 or $275. This bill will address that  
            potential conflict.



          2.    Proposed increase in the daily reimbursement rate is  
            consistent with the rate for other public entity employees  

          This bill seeks to raise the amount that a requesting party must  
          advance together with a subpoena, for the attendance of  
          specified local agency employees, from $150 to $275 for each day  
          that the employee is required to remain in attendance pursuant  
          to the subpoena.  

          In support of this increase, the author contends that the  
          proposed advance deposit rate increase for subpoenaed local  
          agency employees is not only fair in light of the rate set for  
          other public employees above, but also necessary given that this  
          rate has not been increased since it was first implemented in  
          1991.  The author also argues that this adjustment would remove  
          ambiguity as to whether the applicable advance deposit rate for  
          all county employees is the amount specified for non-local  
                                                                      



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          agency public employees (currently $275) or the amount specified  
          for local agency employees (currently $150, but proposed to be  
          raised to $275). 

          In an effort to substantiate the argument that this proposed  
          $125 rate increase is reasonable in light of the actual costs to  
          local agencies, the author has provided Committee staff with  
          information demonstrating that the average costs of certain City  
          of Vacaville employee classifications that were subpoenaed in  
          2012 (the latest information available) exceeds the proposed  
          $275 deposit rate, and far exceed the current $150 rate.  For  
          example, city planners (who on average make $92,474.20 on an  
          annual basis) would cost the city upwards of $355.67 on a daily  
          (eight hour) basis.  Including costs for two hours of  
          preparation and travel, that amount rises to $444.59.  By way of  
          additional examples, the city would incur a daily cost of  
          $382.03, including the costs for an additional two hours of  
          preparation and travel, for a subpoenaed building inspector who  
          earns $79,461.67 annually (or $305.62 daily); and would incur  
          daily costs of $621.81 for the chief building official who earns  
          $129,337.00 annually (or $497.45 daily).  On average, it appears  
          that the City of Vacaville would incur $347.49 in daily costs  
          for the average subpoenaed employee (excluding all fire and  
          police, and volunteer/intern/student/part-time seasonal  
          employees making under $20,000 a year), based on a yearly salary  
          average of $72,277.72 (or daily average of $277.99).

          As a matter of public policy, it is important to keep in mind  
          the impact of a $125 increase on litigants today, as too  
          significant of an increase could have a detrimental impact on  
          the ability of persons to have their claims heard.  While an  
          argument could be made that using the full-day figures might be  
          misleading as many witnesses are present in court for only a  
          portion of the day, it is important to note that the Legislature  
          has not increased this rate in over 20 years and the proposed  
          increase appears to be reasonable given the information provided  
          by the proponents of this bill and given the similar rate  
          increase for other public employees in recent years.  


           Support  :  American Federation of State, County and Municipal  
          Employees (AFSCME), AFL-CIO; California Law Enforcement  
          Association of Records Supervisors; California State Association  
          of Counties; California State Sheriffs' Association; City of  
          Vista; League of California Cities; Peace Officers Research  
          Association; Vacaville City Council 
                                                                      



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           Opposition  :  None Known 

                                        HISTORY
           
           Source  :  City Attorney of the City of Vacaville

           Related Pending Legislation  :  None Known 

           Prior Legislation  :

          AB 2612 (Achadjian, Ch. 377, Stats. 2012) See Background. 

          SB 405 (Committee on Local Government, Ch. 1195, Stats. 1993)  
          defined "local agency" as a city, county, city and county,  
          special district, redevelopment agency, or any other political  
          subdivision of the state, and made other corresponding changes. 

          SB 109 (Kopp, Ch. 230, Stats. 1991) enacted Government Code  
          Section 68096.1, the subject of this bill, and set the  
          reimbursement rate for subpoenaed local agency employees at  
          $150. 

           Prior Vote  :

          Assembly Floor (Ayes 76, Noes 0)
          Assembly Judiciary (Ayes 9, Noes 0) 

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