BILL NUMBER: AB 1208 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 18, 2011
AMENDED IN ASSEMBLY MAY 10, 2011
INTRODUCED BY Assembly Member Charles Calderon
FEBRUARY 18, 2011
An act to amend Sections 77202 68085,
68502.5, 77006.5, 77009, 77200, 77202, 77203, 77206, and 77207
of the Government Code, relating to courts.
LEGISLATIVE COUNSEL'S DIGEST
AB 1208, as amended, Charles Calderon. Trial courts:
administration.
Existing law requires the Legislature to make an annual
appropriation to the Judicial Council for the general operations of
the trial courts based on the request of the Judicial Council, which
is submitted to the Governor and the Legislature. The Judicial
Council is required to allocate the funding for trial court
operations to the trial courts in a manner that best ensures the
ability of the courts to carry out their functions, promotes
implementation of statewide policies, and promotes the immediate
implementation of efficiencies and cost-saving measures in court
operations, in order to guarantee access to justice to citizens of
the state. Existing law requires the Controller to apportion trial
court funding payments to the individual trial courts pursuant to the
allocation schedule adopted by the Judicial Council, as specified.
This bill would , among other things, delete the
provisions relating to the manner in which the Judicial Council
allocates funding for trial court operations, and would instead
require that the amount allocated to each trial court from the amount
appropriated for trial court operations be equal to the pro rata
share of the prior fiscal year's adjusted base budget, except as
provided. The bill would require the Legislature, based on the
information submitted in the Governor's proposed budget, and prior to
the allocation of funds to each local trial court in accordance with
the allocation schedule adopted by the Judicial Council, to specify,
in each annual Budget Act, the funding amounts to be allocated for
programs of statewide concern from the total funds appropriated for
trial court operations by the Legislature. The bill would prohibit
the Judicial Council, or its designee, from withholding or expending
any portion of the total funds appropriated for trial court
operations by the Legislature for any statewide information
technology or administrative infrastructure program that was not
identified in the annual Budget Act, unless the Judicial Council, or
its designee, first obtains the written approval of 662/3% of a
proportional representation of all local trial courts. The bill
would require the Judicial Council, or its designee, to allocate 100%
of the funds appropriated for trial court operations according to
each court's share of statewide operational funding.
Existing law provides that the Judicial Council retains the
ultimate responsibility to adopt a budget and allocate funding for
the trial courts, as specified, and empowers the Judicial Council to
authorize a trial court to carry unexpended funds over from one
fiscal year to the next.
This bill would delete those provisions and would instead provide
that unexpended funds shall be the funds of that court, which may
carry those funds over from one fiscal year to the next. The bill
would prohibit those funds from being reallocated or redirected
without the consent of the management of the trial court.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 68085 of the
Government Code is amended to read:
68085. (a) (1) There is hereby established the Trial Court Trust
Fund, the proceeds of which shall be apportioned for the purposes
authorized in this section, including apportionment to the trial
courts to fund trial court operations, as defined in Section 77003.
(2) The apportionment payments shall be made by the Controller.
The final payment from the Trial Court Trust Fund for each fiscal
year shall be made on or before August 31 of the subsequent fiscal
year.
(A) Notwithstanding any other provision of law, in order to
promote statewide efficiency, the Judicial Council may authorize the
direct payment or reimbursement or both of actual costs from the
Trial Court Trust Fund or the Trial Court Improvement Fund to fund
the costs of operating one or more trial courts upon the consent of
participating courts. These paid or reimbursed costs may be for
services provided to the court or courts by the Administrative Office
of the Courts or payment for services or property of any kind
contracted for by the court or courts or on behalf of the courts by
the Administrative Office of the Courts. The amount of appropriations
from the Trial Court Improvement Fund under this subdivision may not
exceed 20 percent of the amount deposited in the Trial Court
Improvement Fund pursuant to subdivision (a) of Section 77205. The
direct payment or reimbursement of costs from the Trial Court Trust
Fund may be supported by the reduction of a participating court's
allocation from the Trial Court Trust Fund to the extent that the
court's expenditures for the program are reduced and the court is
supported by the expenditure. The Judicial Council shall provide the
affected trial courts with quarterly reports on expenditures from the
Trial Court Trust Fund incurred as authorized by this subdivision.
The Judicial Council shall establish procedures to provide for the
administration of this paragraph in a way that promotes the
effective, efficient, reliable, and accountable operation of the
trial courts.
(B) As used in subparagraph (A), the term "costs of operating one
or more trial courts" includes any expenses related to operation of
the court or performance of its functions, including, but not limited
to, statewide administrative and information technology
infrastructure supporting the courts. The term "costs of operating
one or more trial courts" is not restricted to items considered
"court operations" pursuant to Section 77003, but is subject to
policies, procedures, and criteria established by the Judicial
Council, and may not include an item that is a cost that must
otherwise be paid by the county or city and county in which the court
is located.
(b) Notwithstanding any other provision of law, the fees listed in
subdivision (c) shall all be deposited upon collection in a special
account in the county treasury, and transmitted monthly to the State
Treasury for deposit in the Trial Court Trust Fund.
(c) (1) Except as specified in subdivision (d), this section
applies to all fees collected on or before December 31, 2005,
pursuant to Sections 631.3, 116.230, and 403.060 of the Code of Civil
Procedure and Sections 26820.4, 26823, 26826, 26826.01, 26827,
26827.4, 26830, 26832.1, 26833.1, 26835.1, 26836.1, 26837.1, 26838,
26850.1, 26851.1, 26852.1, 26853.1, 26855.4, 26862, 68086, 72055,
72056, 72056.01, and 72060.
(2) Notwithstanding any other provision of law, except as
specified in subdivision (d) of this section and subdivision (a) of
Section 68085.7, this section applies to all fees and fines collected
on or before December 31, 2005, pursuant to Sections 116.390,
116.570, 116.760, 116.860, 177.5, 491.150, 704.750, 708.160, 724.100,
1134, 1161.2, and 1218 of the Code of Civil Procedure, Sections
26824, 26828, 26829, 26834, and 72059 of the Government Code, and
subdivisions (b) and (c) of Section 166 and Section 1214.1 of the
Penal Code.
(3) If any of the fees provided for in this subdivision are
partially waived by court order, and the fee is to be divided between
the Trial Court Trust Fund and any other fund, the amount of the
partial waiver shall be deducted from the amount to be distributed to
each fund in the same proportion as the amount of each distribution
bears to the total amount of the fee.
(d) This section does not apply to that portion of a filing fee
collected pursuant to Section 26820.4, 26826, 26827, 72055, or 72056
that is allocated for dispute resolution pursuant to Section 470.3 of
the Business and Professions Code, the county law library pursuant
to Section 6320 of the Business and Professions Code, the Judges'
Retirement Fund pursuant to Section 26822.3, automated recordkeeping
or conversion to micrographics pursuant to Sections 26863 and
68090.7, and courthouse financing pursuant to Section 76238. This
section also does not apply to fees collected pursuant to
subdivisions (a) and (c) of Section 27361.
(e) This section applies to all payments required to be made to
the State Treasury by any county or city and county pursuant to
Section 77201, 77201.1, or 77205.
(f) Notwithstanding any other provision of law, no agency may take
action to change the amounts allocated to any of the funds described
in subdivision (a), (b), (c), or (d).
(g) The Judicial Council shall reimburse the Controller for the
actual administrative costs that will be incurred under this section.
Costs reimbursed under this section shall be determined on an annual
basis in consultation with the Judicial Council.
(h) Any amounts required to be transmitted by a county or city and
county to the state pursuant to this section shall be remitted to
the State Treasury no later than 45 days after the end of the month
in which the fees were collected. This remittance shall be
accompanied by a remittance advice identifying the collection month
and the appropriate account in the Trial Court Trust Fund to which it
is to be deposited. Any remittance that is not made by the county or
city and county in accordance with this section shall be considered
delinquent, and subject to the interest and penalties specified in
this section.
(i) Upon receipt of any delinquent payment required pursuant to
this section, the Controller shall do the following:
(1) Calculate interest on the delinquent payment by multiplying
the amount of the delinquent payment at a daily rate equivalent to
the rate of return of money deposited in the Local Agency Investment
Fund pursuant to Section 16429.1 from the date the payment was
originally due to either 30 days after the date of the issuance by
the Controller of the final audit report concerning the failure to
pay or the date of payment by the entity responsible for the
delinquent payment, whichever comes first.
(2) Calculate a penalty at a daily rate equivalent to 11/2 percent
per month from the date 30 days after the date of the issuance by
the Controller of the final audit report concerning the failure to
pay.
(j) (1) Interest or penalty amounts calculated pursuant to
subdivision (i) shall be paid by the county, city and county, or
court to the Trial Court Trust Fund no later than 45 days after the
end of the month in which the interest or penalty was calculated.
Payment shall be made by the entity responsible for the error or
other action that caused the failure to pay, as determined by the
Controller in notice given to that party by the Controller.
(2) Notwithstanding Section 77009, any interest or penalty on a
delinquent payment that a court is required to make pursuant to this
section and Section 24353 shall be paid from the Trial Court
Operations Fund for that court.
(3) The Controller may permit a county, city and county, or court
to pay the interest or penalty amounts according to a payment
schedule in the event of a large interest or penalty amount that
causes a hardship to the paying entity.
(4) The party responsible for the error or other action that
caused the failure to pay may include, but is not limited to, the
party that collected the funds who is not the party responsible for
remitting the funds to the Trial Court Trust Fund, if the collecting
party failed or delayed in providing the remitting party with
sufficient information needed by the remitting party to distribute
the funds.
(k) The Trial Court Trust Fund shall be invested in the Surplus
Money Investment Fund and all interest earned shall be allocated to
the Trial Court Trust Fund quarterly and shall be allocated among the
courts in accordance with the requirements of subdivision (a). The
specific allocations shall be specified by the Judicial Council.
(l) It is the intent of the Legislature that the revenues required
to be deposited into the Trial Court Trust Fund be remitted as soon
after collection by the courts as possible.
(m) Except for subdivisions (a) and (k), this section does not
apply to fees and fines that are listed in subdivision (a) of Section
68085.1 that are collected on or after January 1, 2006.
(n) The changes made to subdivisions (i) and (j) of this section
by the act adding this subdivision shall apply to all delinquent
payments for which no final audit has been issued by the Controller
prior to January 1, 2008.
SEC. 2. Section 68502.5 of the
Government Code is amended to read:
68502.5. (a) The Judicial Council may, as part of its trial court
budget process, seek input from groups and individuals as it deems
appropriate including, but not limited to, advisory committees and
the Administrative Director of the Courts. The trial court budget
process may include, but is not limited to, the following:
(1) The receipt of budget requests from the trial courts.
(2) The review of the trial courts' budget requests and evaluate
them against performance criteria established by the Judicial Council
by which a court's performance , level of coordination,
and efficiency can be measured.
(3) The annual adoption of the projected cost in the subsequent
fiscal year of court operations as defined in Section 77003 for each
trial court. This estimation shall serve as a basis for recommended
court budgets, which shall be developed for comparison purposes and
to delineate funding responsibilities.
(4) The annual approval of a schedule for the allocation of moneys
to individual courts as set forth in Section 77202, and
an overall trial court budget for forwarding to the Governor for
inclusion in the Governor's proposed State Budget. The
schedule overall trial court budget shall be
based on the performance criteria established pursuant to paragraph
(2), on a minimum standard established by the Judicial Council for
the operation and staffing of all trial court operations, and on any
other factors as determined by the Judicial Council. This minimum
standard shall be modeled on court operations using all reasonable
and available measures to increase court efficiency. The
schedule of allocations overall trial court budget
shall assure ensure that all
trial courts receive funding for the minimum operating and staffing
standards before funding operating and staffing requests above the
minimum standards , and shall include incentives and rewards
for any trial court's implementation of efficiencies and cost saving
measures .
(5) The reallocation of funds during the course of the fiscal year
to ensure equal access to the trial courts by the public, to improve
trial court operations, and to meet trial court emergencies. Neither
the state nor the counties shall have any obligation to replace
moneys appropriated for trial courts and reallocated pursuant to this
paragraph.
(6)
(5) The allocation of funds in the Trial Court
Improvement Fund to ensure equal access to trial courts by the
public, to improve trial court operations, and to meet trial court
emergencies.
(7)
(6) Upon approval of the trial courts' budget by the
Legislature, the preparation during the course of the fiscal year of
allocation schedules for payments to the trial courts, consistent
with Section 68085, which shall be submitted to the Controller's
office at least 15 days before the due date of any allocation.
(8)
(7) The establishment of rules regarding a
court's procedures for a court to report its exercise
of authority to transfer trial court funding moneys from one
functional category to another in order to address needs in any
functional category.
(9)
(8) At the request of the presiding judge of a trial
court, an independent review of the funding level of the court to
determine whether it is adequate to enable the court to discharge its
statutory and constitutional responsibilities.
(10)
(9) From time to time, a review of the level of fees
charged by the courts for various services and prepare recommended
adjustments for forwarding to the Legislature.
(11)
(10) Provisions set forth in rules adopted pursuant to
Section 77206 of the Government Code.
(b) Courts and counties shall establish procedures to allow for
the sharing of information as it relates to approved budget proposals
and expenditures that impact the respective court and county
budgets. The procedures shall include, upon the request of a court or
county, that a respective court or county shall provide the
requesting court or county a copy of its approved budget and, to the
extent possible, approved program expenditure component information
and a description of budget changes that are anticipated to have an
impact on the requesting court or county. The Judicial Council shall
provide to the Legislature on December 31, 2001, and yearly
thereafter, budget expenditure data at the program component level
for each court.
(c) The Judicial Council shall retain the ultimate responsibility
to adopt a budget and allocate funding for the trial courts and
perform the other activities listed in subdivision (a) that best
assure their ability to carry out their functions, promote
implementation of statewide policies, and promote the immediate
implementation of efficiencies and cost saving measures in court
operations, in order to guarantee equal access to the courts.
SEC. 3. Section 77006.5 of the
Government Code is amended to read:
77006.5. As used in this chapter, "trial court funding" means the
amount of state funds provided for the operation of the trial
courts, as defined in Section 77003, appropriated in the Budget Act,
and allocated or reallocated by the Judicial Council
law .
SEC. 4. Section 77009 of the Government
Code is amended to read:
77009. (a) The Judicial Council may establish bank accounts for
the superior courts and require the courts to deposit moneys for
trial court operations, and any other moneys under the control of the
courts, into those accounts. Deposits to these accounts shall
include, but are not limited to, the following:
(1) Moneys appropriated in the Budget Act and allocated or
reallocated to the superior court by the Judicial Council.
(2) Moneys held in trust.
(3) Other moneys as deemed necessary or appropriate.
(b) Subdivision (a) shall not apply to payments from a party or a
defendant received by the superior court for any criminal fees,
fines, or forfeitures. However, the court and county may enter into a
contract for the court to provide depository services in an account
established by the Judicial Council for criminal fees, fines, and
forfeitures, with the approval of the Administrative Director of the
Courts. The contract shall identify the scope of service, method of
service delivery, term of agreement, anticipated service outcomes,
and the cost of the service. The amount of any indirect or overhead
costs shall be individually stated with the method of calculation of
the indirect or overhead costs.
(c) Moneys deposited into a bank account established pursuant to
subdivision (a) for the Trial Court Operations Fund that are
appropriated in the Budget Act and allocated or reallocated to
the superior court by the Judicial Council
any trial court shall be payable only for the purposes set forth
in Sections 77003 and 77006.5, and for services purchased by the
court pursuant to subdivisions (b) and (c) of Section 77212.
(d) (1) All moneys received by a superior court from any source
for court operating and program purposes shall be deposited into a
bank account established pursuant to subdivision (a) and accounted
for in the Trial Court Operations Fund. Moneys that are received to
fulfill the requirements of Article 4 (commencing with Section 4250)
of Chapter 2 of Part 2 of Division 9 and Division 14 (commencing with
Section 10000) of the Family Code shall be identified and maintained
in a separate account established in the fund for this purpose.
(2) All other moneys deposited into a bank account established
pursuant to subdivision (a) and accounted for in the Trial Court
Operations Fund that are received for purposes other than court
operations, as defined in Section 77003 and Rule 10.810 of the
California Rules of Court, shall be identified and maintained in
separate accounts in the fund.
(3) This subdivision shall not apply to either of the following:
(A) Moneys received by the courts pursuant to paragraph (2) of
subdivision (a) of this section and Section 68084, if those moneys
are not for court operating or program purposes.
(B) Payments from a party or a defendant received by the county
for any fees, fines, or forfeitures; moneys collected by the superior
court under Chapter 5.8 (commencing with Section 70600); or fees and
fines to which Section 68085.1 applies.
(e) The presiding judge of the superior court, or his or her
designee, shall authorize and direct all expenditures by the court
for operating and program purposes from any account established under
subdivision (b) or (c).
(f) The Judicial Council, in consultation with the Controller's
office, shall establish procedures to implement this section and to
provide for payment of trial court operations expenses, as described
in Sections 77003 and 77006.5, incurred on July 1, 1997, and
thereafter.
(g) (1) If the Judicial Council has not established bank accounts
pursuant to subdivision (a), the court shall contract with the county
for fiscal services. Each board of supervisors shall maintain in the
county treasury a Trial Court Operations Fund, which will operate as
an agency fund. All moneys appropriated in the Budget Act and
allocated and reallocated to the superior court in the county by the
Judicial Council shall be deposited into the fund.
(2) Moneys deposited into the fund that are appropriated for the
Trial Court Operations Fund in the Budget Act and allocated or
reallocated to the superior court by the Judicial Council shall be
payable only for the purposes set forth in Sections 77003 and
77006.5, and for services purchased by the court pursuant to
subdivisions (b) and (c) of Section 77212. The presiding judge of the
superior court, or his or her designee, shall authorize and direct
expenditures from the fund and the county auditor-controller shall
make payments from the funds as directed. Approval of the board of
supervisors is not required for expenditure from this fund.
(3) All moneys received by a superior court from any source for
court operating and program purposes shall be deposited in the fund,
except as provided in this subdivision. Moneys that are received to
fulfill the requirements of Article 4 (commencing with Section 4250)
of Chapter 2 of Part 2 of Division 9 and Division 14 (commencing with
Section 10000) of the Family Code shall be identified and maintained
in a separate account established in the fund for this purpose. All
other moneys that are received for purposes other than court
operations, as defined in Section 77003 and Rule 10.810 of the
California Rules of Court, shall be identified and maintained in one
or more separate accounts established in the fund pursuant to
procedures adopted by the Judicial Council. This subdivision shall
only apply to moneys received by the courts for operating and program
purposes. This subdivision shall not apply to either of the
following:
(A) Moneys received by the courts pursuant to Section 68084, if
those funds are not for court operating or program purposes.
(B) Payments from a party or a defendant received by the county
for any fees, fines, or forfeitures; moneys collected by the superior
court under Chapter 5.8 (commencing with Section 70600); or fees and
fines to which Section 68085.1 applies.
(4) Interest received by a county that is attributable to
investment of moneys, which interest is required by this subdivision
to be deposited in the superior court's fund, shall be deposited in
the fund and shall be used for trial court operations purposes.
(5) In no event shall interest be charged to the superior court's
fund, except as provided in Section 77009.1.
(6) Reasonable administrative expenses incurred by the county
associated with the operation of this fund shall be charged to the
superior court.
(7) A county, or city and county, may bill the superior court
within its jurisdiction for costs for services provided by the
county, or city and county, as described in Sections 77003 and 77212,
including indirect costs as described in paragraph (7) of
subdivision (a) of Section 77003 and Section 77212. The costs billed
by the county, or the city and the county, pursuant to this
subdivision shall not exceed the costs incurred by the county, or the
city and the county, of providing similar services to county
departments or special districts.
(8) Pursuant to Section 77206, the Controller, at the request of
the Legislature, may perform financial and fiscal compliance audits
of this fund. The Judicial Council or its representatives may perform
audits, reviews, and investigations of this fund wherever the
records may be located.
(h) The Judicial Council or its representatives may perform
audits, reviews, and investigations of superior court operations and
records wherever they may be located.
SEC. 5. Section 77200 of the Government
Code is amended to read:
77200. On and after July 1, 1997, the state shall assume sole
responsibility for the funding of court operations, as defined in
Section 77003 and Rule 10.810 of the California Rules of Court as it
read on January 1, 2007. In meeting this responsibility, the state
shall do all of the following:
(a) Deposit in the Trial Court Trust Fund, for subsequent
allocation to or for the trial courts, all county funds remitted to
the state pursuant to Section 77201 until June 30, 1998, pursuant to
Section 77201.1 from July 1, 1998, until June 30, 2006, inclusive,
and pursuant to Section 77201.3, thereafter.
(b) Be responsible for the cost of court operations incurred by
the trial courts in the 1997-98 fiscal year and subsequent fiscal
years.
(c) Allocate funds to the individual trial courts pursuant to an
allocation schedule adopted by the Judicial Council
as set forth in Section 77202 , but in no case
shall the amount allocated to the trial court in a county be less
than the amount remitted to the state by the county in which that
court is located pursuant to paragraphs (1) and (2) of subdivision
(b) of Section 77201 until June 30, 1998, pursuant to paragraphs (1)
and (2) of subdivision (b) of Section 77201.1 from July 1, 1998,
until June 30, 2006, inclusive, and pursuant to paragraphs (1) and
(2) of subdivision (a) of Section 77201.3, thereafter.
(d) The Judicial Council shall submit its allocation schedule to
the Controller at least five days before the due date of any
allocation.
SECTION 1. SEC. 6. Section 77202 of
the Government Code is amended to read:
77202. (a) The Legislature shall make an annual appropriation to
the Judicial Council for the general operations of the trial courts
based on the request of the Judicial Council. The Judicial Council's
trial court budget request, which shall be submitted to the Governor
and the Legislature, shall meet the needs of all trial courts in a
manner that ensures a predictable fiscal environment for labor
negotiations in accordance with the Trial Court Employment Protection
and Governance Act (Chapter 7 (commencing with Section 71600) of
Title 8), that promotes equal access to the courts statewide, and
that promotes court financial accountability. The annual budget
request shall include the following components:
(1) Commencing with the 2006-07 fiscal year, annual General Fund
appropriations to support the trial courts shall be comprised of both
of the following:
(A) The current fiscal year General Fund appropriations, which
include all of the following:
(i) General Fund moneys appropriated for transfer or direct local
assistance in support of the trial courts.
(ii) Transfers to the Judicial Administration Efficiency and
Modernization Fund.
(iii) Local assistance grants made by the Judicial Council,
including the Equal Access Fund.
(iv) The full year cost of budget change proposals approved
through the 2006-07 fiscal year or subsequently approved in
accordance with paragraph (2), but excluding lease-revenue payments
and funding for costs specifically and expressly reimbursed through
other state or federal funding sources, excluding the cost of
one-time or expiring programs.
(B) A cost-of-living and growth adjustment computed by multiplying
the year-to-year percentage change in the state appropriation limit
as described in Section 3 of Article XIII B of the California
Constitution by the sum of all of the following:
(i) The current year General Fund appropriations for the trial
courts, as defined in subparagraph (A).
(ii) The amount of county obligations established pursuant to
subdivision (b) of Section 77201.1 in effect as of June 30, 2005, six
hundred ninety-eight million sixty-eight thousand dollars
($698,068,000).
(iii) The level of funding required to be transferred from the
Trial Court Improvement Fund to the Trial Court Trust Fund pursuant
to subdivision (k) of Section 77209, thirty-one million five hundred
sixty-three thousand dollars ($31,563,000).
(iv) Funding
deposited into the Court Facilities Trust Fund associated with each
facility that was transferred to the state not less than two fiscal
years earlier than the fiscal year for which the cost-of-living and
growth adjustment is being calculated.
(v) The court filing fees and surcharges projected to be deposited
into the Trial Court Trust Fund in the 2005-06 fiscal year, adjusted
to reflect the full-year implementation of the uniform civil fee
structure implemented on January 1, 2006, three hundred sixty-nine
million six hundred seventy-two thousand dollars ($369,672,000).
(2) In addition to the moneys to be applied pursuant to
subdivision (c), the Judicial Council may identify and request
additional funding for the trial courts for costs resulting from the
implementation of statutory changes that result in either an
increased level of service or a new activity that directly affects
the programmatic or operational needs of the courts.
(b) (1) Based on the information submitted in the Governor's
proposed budget, and prior to the allocation of funds to each local
trial court in accordance with the allocation schedule adopted by the
Judicial Council pursuant to subdivision (c) of Section 77200, the
Legislature shall specify, in each annual Budget Act, the funding
amounts to be allocated for programs of statewide concern from the
total funds appropriated for trial court operations by the
Legislature. For purposes of this paragraph, programs of statewide
concern operate in the superior courts of multiple counties and may
include, but shall not be limited to, equal access, court-appointed
special counsel, family law information centers, model self-help,
assigned judges, information technology, and administrative
infrastructure , including continued funding for a uniform
statewide accounting system .
(2) The Judicial Council or its designee shall allocate 100
percent of the funds appropriated for trial court operations
according to each court's share of statewide operational funding.
(2)
(3) Notwithstanding any other law, the Judicial
Council, or its designee, shall not withhold or expend any portion of
the total funds appropriated for trial court operations by the
Legislature for any statewide information technology or
administrative infrastructure program , including the California
Case Management System, that was not identified in the annual
Budget Act, unless the Judicial Council, or its designee, first
obtains the written approval of 662/3 percent of a proportional
representation of all local trial courts. For purposes of this
paragraph, proportional representation shall be calculated according
to the number of judges in the superior court of each county as a
percentage of the total number of judges authorized by Section 4 of
Article VI of the California Constitution in all county superior
courts statewide.
(c) The Judicial Council shall allocate the funding from the Trial
Court Trust Fund to the trial courts in a manner that best ensures
the ability of the courts to carry out their functions, promotes
implementation of statewide policies, and promotes the immediate
implementation of efficiencies and cost-saving measures in court
operations, in order to guarantee access to justice to citizens of
the state.
The Judicial Council shall ensure that allocations to the trial
courts recognize each trial court's implementation of efficiencies
and cost-saving measures.
These efficiencies and cost-saving measures shall include, but not
be limited to, the following:
(1) The sharing or merger of court support staff among trial
courts across counties.
(2) The assignment of any type of case to a judge for all purposes
commencing with the filing of the case and regardless of
jurisdictional boundaries.
(3) The establishment of a separate calendar or division to hear a
particular type of case.
(4) In rural counties, the use of all court facilities for
hearings and trials of all types of cases and the acceptance of
filing documents in any case.
(5) The use of alternative dispute resolution programs, such as
arbitration.
(6) The development and use of automated accounting and
case-processing systems.
(c) Commencing with the 2011-12 fiscal year, the amount allocated
to each trial court from the amount appropriated for trial court
operations shall be equal to the pro rata share of the adjusted base
budget of the prior fiscal year, less the amount of funding for court
security if a realignment of trial court security occurs. Any
workload or technical adjustments to a trial court's base budgets
shall be allocated separately from that year's trial court operation
funds. Ongoing workload and technical adjustments to a trial court's
base budget shall be incorporated into the base budget of the trial
court for the following fiscal year, and the pro rata share shall be
adjusted to account for adjustments in that trial court's base
budget. Except for the Judicial Administration Efficiency and the
Modernization Fund and the Trial Court Improvement Fund, at the end
of each fiscal year, any unspent funds allocated pursuant to
subdivision (b) shall be distributed to each court based upon its pro
rata share determined pursuant to this subdivision.
(d) (1) The Judicial Council shall adopt policies and procedures
governing practices and procedures for budgeting in the trial courts
in a manner that best ensures the ability of the courts to carry out
their functions and may delegate the adoption to the Administrative
Director of the Courts. The Administrative Director of the Courts
shall establish budget procedures and an annual schedule of budget
development and management consistent with these rules.
(2) Each trial court may transfer funds, once
budgeted and allocated, between functions, line items, or programs as
directed by the management of that trial court. The trial
court policies and procedures shall specify the process for a court
to transfer existing funds between or among the budgeted program
components to reflect changes in the court's planned operation or to
correct technical errors. If the process requires a trial court to
request approval of a specific transfer of
existing funds, the Administrative Office of the Courts shall
review the request to transfer funds and respond within 30
days of receipt of the request. The Administrative Office of the
Courts shall respond to the request for approval or denial to the
affected court, in writing, with copies provided to the Department of
Finance, the make the transfers and notify the
Department of Finance, the Legislative Analyst's Office, the
Legislature's budget committees, and the court's affected labor
organizations.
(3) The Judicial Council shall circulate for comment to all
affected entities any amendments proposed to the trial court policies
and procedures as they relate to budget monitoring and reporting.
Final changes shall be adopted at a meeting of the Judicial Council.
SEC. 7. Section 77203 of the Government
Code is amended to read:
77203. The Judicial Council may authorize a trial court
to A trial court may carry unexpended funds over
from one fiscal year to the next, provided that the court
carrying over the funds has fully implemented all provisions of
former Rule 991 of the California Rules of Court as it read on July
1, 1996, regarding trial court coordination and those
funds shall be funds of that court and shall not be reallocated or
redirected without the consent of the court's trial court
management .
SEC. 8. Section 77206 of the Government
Code is amended to read:
77206. (a) Notwithstanding any other law, the
The Judicial Council may regulate the budget and fiscal
management of the trial courts. The Judicial Council, in consultation
with the Controller, shall maintain appropriate regulations for
recordkeeping and accounting by the courts. The Judicial Council
shall seek to ensure, by these provisions, both of the following:
(1) That the fiscal affairs of the trial courts are managed
efficiently, effectively, and responsibly.
(2) That all moneys collected by the courts, including filing
fees, fines, forfeitures, and penalties, and all revenues and
expenditures relating to court operations are known.
The Judicial Council may delegate its authority under this
section, when appropriate, to the Administrative Director of the
Courts.
(b) Regulations, rules, and reporting requirements adopted
pursuant to this chapter shall be exempt from review and approval or
other processing by the Office of Administrative Law as provided for
in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3 of Title 2.
(c) The Controller, at the request of the Legislature, may perform
and publish financial and fiscal compliance audits of the reports of
court revenues and expenditures. The Controller shall report the
results of these audits to the Legislature and the Judicial Council.
(d) The Judicial Council shall provide for the transmission of
summary information concerning court revenues and expenditures to the
Controller.
(e) The Judicial Council shall adopt rules to provide for
reasonable public access to budget allocation and expenditure
information at the state and local levels.
(f) The Judicial Council shall adopt rules ensuring that, upon
written request, the trial courts provide, in a timely manner,
information relating to the administration of the courts, including
financial information and other information that affects the wages,
hours, and working conditions of trial court employees.
(g) (1) The Judicial Council or its representatives may do any of
the following:
(A) Inspect, review, and perform comprehensive oversight and
analysis of court financial records wherever they may be located.
(B) Investigate allegations of financial impropriety or
mismanagement.
(2) The authority granted pursuant to this subdivision shall not
substitute for, or conflict with, the audits conducted pursuant to
subdivisions (h) and (i).
(h) (1) Commencing not earlier than July 1, 2011, and not later
than December 15, 2012, the entity contracted with pursuant to
subdivision (j) shall establish a pilot program to audit six trial
courts. That entity shall select the trial courts using the following
criteria:
(A) Two trial courts selected from counties with a population of
200,000 or less.
(B) Two trial courts selected from counties with a population
greater than 200,000 and less than 750,000.
(C) Two trial courts selected from counties with a population of
750,000 or greater.
The audits shall be performed in accordance with generally
accepted government auditing standards and shall determine the trial
court's compliance with governing statutes, rules, and regulations
relating to the revenues, expenditures, and fund balances of all
material and significant funds, including state General Fund funds,
funds generated from fees or fines, federal funds, grants, and any
other funds within the trial court's administration or control.
Pursuant to Section 19210 of the Public Contract Code, the audit
shall also determine compliance with Part 2.5 (commencing with
Section 19201) of Division 2 of the Public Contract Code. The audits
required by this section shall be in addition to any audit regularly
conducted pursuant to any other provision of law.
(2) Based on the results of the pilot program audits described in
paragraph (1), the entity contracted with pursuant to subdivision (j)
shall, on or before December 15, 2013, commence an audit of the
trial courts, provided that every trial court is audited in the
manner prescribed by this section at least once every four years. The
audits shall be performed in accordance with generally accepted
government auditing standards and shall determine the trial court's
compliance with governing statutes, rules, and regulations relating
to the revenues, expenditures, and fund balances of all material and
significant funds, including state General Fund funds, funds
generated from fees or fines, federal funds, grants, or any other
funds within the trial court's administration or control. Pursuant to
Section 19210 of the Public Contract Code, the audit shall also
determine compliance with Part 2.5 (commencing with Section 19201) of
Division 2 of the Public Contract Code. The audits required by this
paragraph shall be in addition to any audit regularly conducted
pursuant to any other provision of law.
(3) Notwithstanding Section 10231.5, the auditing entity shall
compile the trial court audit findings and report the results of
these audits to the Legislature, the Judicial Council, and the
Department of Finance no later than April 1 of each year. An audit
report shall not be considered final until the audited entity is
provided a reasonable opportunity to respond and the response is
included with, or incorporated into, the report.
(4) The reasonable and necessary contracted cost of the audit
conducted pursuant to this subdivision shall be paid from funds of
the local trial court being audited.
(i) (1) On or before December 15, 2013, and biennially thereafter,
the entity contracted with pursuant to subdivision (j) shall perform
an audit of the Administrative Office of the Courts in accordance
with generally accepted government auditing standards and shall
determine the Administrative Office of the Court's compliance with
governing statutes, rules, regulations, and policies relating to the
revenues, expenditures, and fund balances of all material and
significant funds under the administration, jurisdiction, or control
of the Administrative Office of the Courts. Pursuant to Section 19210
of the Public Contract Code, the audit shall also determine
compliance of the Administrative Office of the Courts, the Habeas
Corpus Resource Center, and the appellate courts with Part 2.5
(commencing with Section 19201) of Division 2 of the Public Contract
Code.
(2) Notwithstanding Section 10231.5, the auditing entity shall
provide a copy of the final audit report of the Administrative Office
of the Courts to the Legislature, the Judicial Council, and the
Department of Finance upon issuance. An audit report shall not be
considered final until the audited entity is provided a reasonable
opportunity to respond and the response is included with, or
incorporated into, the report.
(3) Any reasonable and necessary contracted costs incurred by the
auditing entity pursuant to this subdivision shall be reimbursed by
the Administrative Office of the Courts.
(j) The Administrative Office of the Courts shall contract with
the Controller to perform the audits described in subdivisions (h)
and (i), unless either the Bureau of State Audits or the Department
of Finance demonstrates that it can perform the audits pursuant to
the same timeframes, scope, and methodology as the Controller for a
cost that is less than that proposed by the Controller. In that case,
the Administrative Office of the Courts may contract with the state
entity named in this subdivision that is most cost effective. The
Administrative Office of the Courts shall provide written
notification to the chairs of the Senate Committee on Budget and
Fiscal Review, the Assembly Committee on Budget, and the Senate and
Assembly Committees on Judiciary, if the Administrative Office of the
Courts contracts with an entity other than the Controller. The
contract period for any contract entered into pursuant to this
section shall not exceed four years from the date of commencement.
(k) A report submitted pursuant to subdivision (h) or (i) shall be
submitted in compliance with Section 9795.
SEC. 2. SEC. 9. Section 77207 of the
Government Code is amended to read:
77207. The Legislature shall appropriate trial court funding. The
Controller shall apportion trial court funding payments to the
courts as provided in Section 68085 pursuant to an allocation
schedule adopted by the Judicial Council, and consistent with
subdivision (b) of Section 77202.