AB1951 - Civil actions: filing fees: refunds.

Assembly Bill No. 1951 CHAPTER 91 An act to amend Sections 411.20, 411.20.5, and 411.21 of, and to add Section 411.11 to, the Code of Civil Procedure, and to amend Section 6159 of the Government Code, relating to civil actions. [ Approved by Governor July 16, 2026. Filed with Secretary of State July 16, 2026. ] LEGISLATIVE COUNSEL'S DIGEST AB 1951, Dixon. Civil actions: filing fees: refunds. Existing law provides that a civil action is commenced by filing a complaint by the court. Existing law provides that if a court clerk accepts for filing a complaint or other first paper, or any subsequent filing, and payment is made in an amount less than the required fee or by check that is later returned without payment, the clerk must notify the party who tendered the check that (1) the check was made out for an amount less than the required filing fee or has been returned without payment, whichever is applicable, (2) an administrative charge has been imposed to reimburse the court for the costs of processing the partial payment or returned check and for providing the specified notice, and (3) the party has 20 days from the date of mailing of the notice to pay the filing fee and administrative charge, except as specified. Existing law requires the clerk to void the filing if the party who tendered the returned check or the check in less than the required filing fee has not paid the full amount of the fee and the administrative charge within the 20-day period described above. Existing law provides that if the clerk performs a service or issues a document for which a fee is required and payment is made by check that is later returned without payment, the court may order further proceedings suspended as to the party for whom the check was tendered, and shall notify the party who tendered the check that proceedings have been suspended until receipt of payment of the required fee and the administrative charge by specified methods, but not by personal check or traveler’s check. This bill would additionally apply the provisions described above to filing fees paid by credit card, electronic funds transfer, as defined, or any other means approved by the court. Existing law provides that if an electronic filing is made to the clerk by an electronic filing service provider acting as the agent of the court for purposes of collecting and remitting filing fees, and fees owed to the electronic filing service provider remain unpaid for 5 days after notice to the attorney of record, the court clerk may notify the attorney of record that the attorney of record may be sanctioned for nonpayment of fees. Existing law authorizes the court to sanction the attorney of record if fees to the electronic service provider remain unsatisfied 20 days after notice by the clerk. This bill would, if the fees to the electronic filing service provider remain unsatisfied 20 days after notice by the clerk, require the clerk to instead refund the electronic filing service provider, and to follow the procedures described above, as specified. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 411.11 is added to the Code of Civil Procedure, to read: 411.11. (a) For purposes of this chapter, the following terms have the following meanings: (1) “Electronic funds transfer” means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephonic instrument, modem, computer, or magnetic tape, so as to order, instruct, or authorize a financial institution to credit or debit an account. (2) “Automated clearinghouse” means any federal reserve bank, or an organization established by agreement with the National Automated Clearing House Association or any similar organization, that operates as a clearinghouse for transmitting or receiving entries between banks or bank accounts and that authorizes an electronic transfer of funds between those banks or bank accounts. (3) “Automated clearinghouse debit” means a transaction in which the state, through its designated depository bank, originates an automated clearinghouse transaction debiting the holder’s bank account and crediting the state’s bank account for the amount of payment. (4) “Automated clearinghouse credit” means an automated clearinghouse transaction in which the holder, through its own bank, originates an entry crediting the state’s bank account and debiting the holder’s bank account. (b) For purposes of this chapter, an electronic funds transfer shall be accomplished by an automated clearinghouse debit or an automated clearinghouse credit. SEC. 2. Section 411.20 of the Code of Civil Procedure is amended to read: 411.20. (a) If the clerk accepts for filing a complaint or other first paper, or any subsequent filing, and payment is made by check, credit card, electronic funds transfer, or any other means approved by the court, which is later returned without payment, the clerk shall, by mail, notify the party who tendered the payment that (1) the payment has been returned due to insufficient funds or was a disputed transaction, (2) the administrative charge specified in subdivision (g) has been imposed to reimburse the court for the costs of processing the returned payment and providing the notice specified in this subdivision, and (3) the party has 20 days from the date of mailing of the notice within which to pay the filing fee and the administrative charge, except as provided in subdivision (e). The notice also shall state that the administrative charge and the filing fee shall be paid in cash, by certified check, or by other means specified by the court, but not by traveler’s check or personal check. If the person who tendered the payment is not a party to the action or proposed action, but only is acting on behalf of a party, the clerk shall notify not only the person who tendered the payment, but also the party or that party’s attorney if the party is represented. The clerk’s certificate as to the mailing of notice pursuant to this section establishes a rebuttable presumption that the fees were not paid. This presumption is a presumption affecting the burden of producing evidence. (b) The clerk shall void the filing if the party who tendered a returned payment or on whose behalf a returned payment was tendered has not paid the full amount of the fee and the administrative charge by a means specified in subdivision (a) within 20 days of the date on which the notice required by subdivision (a) was mailed. Any filing voided by this section can be disposed of immediately after the 20 days have elapsed without preserving a copy in the court records, notwithstanding Section 68152 of the Government Code. (c) If an adverse party files a response to a complaint, paper or filing referred to in subdivision (a), together with a filing fee, and the original filing is voided pursuant to subdivision (b), the responsive filing is not required and shall be voided. The court shall, by mail, provide notice to the parties or their attorneys that the initial paper and the response have been voided. The responding party’s filing fee shall be refunded upon request, provided that the request for a refund is made within 20 days from the date on which the notice was mailed. Upon receipt of the request, the court shall refund the responding party’s filing fee without imposing any administrative charge. A refund under this subdivision is available if the adverse party has filed only a responsive pleading, but not if the party has also filed a cross-complaint or other first paper seeking affirmative relief for which there is a filing fee. (d) If an adverse party, or a person acting on behalf of the adverse party, tenders a check, credit card, electronic funds transfer, or other method of payment approved by the court, for a required filing fee that is later returned without payment, the procedures in subdivisions (a) and (b) shall apply. (e) If any trial or other hearing is scheduled to be heard prior to the expiration of the 20-day period provided for in subdivision (a), the fee shall be paid prior to the trial or hearing. Failure of the party to pay the fee prior to the trial or hearing date shall cause the court to void the filing and proceed as if it had not been filed. (f) If the clerk performs a service or issues any document for which a fee is required and payment is made by check, credit card, electronic funds transfer, or any other means approved by the court, which is later returned without payment, the court may order further proceedings suspended as to the party for whom the payment was tendered. If the court so orders, the clerk shall, by mail, notify the party who tendered the payment that proceedings have been suspended until the receipt of payment of the required fee and the administrative charge specified in subdivision (g), by cash, cashier’s check, or other means specified by the court, but not by personal check or traveler’s check. If the person who tendered the payment is not a party to the action or proposed action, but only is acting on behalf of a party, the clerk shall notify not only the person who tendered the payment, but also the party or that party’s attorney if the party is represented. The clerk’s certificate as to the mailing of notice pursuant to this section establishes a rebuttable presumption that the fees were not paid. This presumption is a presumption affecting the burden of producing evidence. (g) The clerk shall impose an administrative charge for providing notice that a payment submitted by check, credit card, electronic funds transfer, or any other means approved by the court, for a filing fee has been returned without payment and for all related administrative, clerical, and other costs incurred under this section. The administrative charge shall, in each instance, be either twenty-five dollars ($25) or a reasonable amount that does not exceed the actual cost incurred by the court, as determined by the court. The notices provided by the court under subdivisions (a) and (f) shall state the specific amount of the administrative charge that shall be paid to the court. Each administrative charge collected shall be distributed to the court that incurred the charge as described in Section 68085.1 of the Government Code. SEC. 3. Section 411.20.5 of the Code of Civil Procedure is amended to read: 411.20.5. If an electronic filing is made to the clerk by an electronic filing service provider acting as the agent of the court for purposes of collecting and remitting filing fees, and fees owed to the electronic filing service provider remain unpaid for a period of five days after notice to the attorney of record or self-represented party, and the filing was made by the attorney of record or a self-represented party, the electronic filing service provider may notify the clerk that fees remain unpaid despite notice to the attorney of record or self-represented party. The clerk shall then notify the attorney of record that the attorney of record may be sanctioned by the court for nonpayment of fees. If the fees to the electronic filing service provider remain unsatisfied 20 days after notice by the clerk, the clerk shall follow the procedures prescribed by Section 411.20 and shall refund the electronic filing service provider the amount paid for the transaction pursuant to subdivision (h) of Section 6159 of the Government Code. SEC. 4. Section 411.21 of the Code of Civil Procedure is amended to read: 411.21. (a) If a complaint or other first paper is accompanied by payment by check, credit card, electronic funds transfer, or any other means approved by the court, in an amount less than the required fee, the clerk shall accept the paper for filing, but shall not issue a summons until the court receives full payment of the required fee. The clerk shall, by mail, notify the party tendering the payment that (1) the payment was made out for an amount less than the required filing fee, (2) the administrative charge specified in subdivision (g) has been imposed to reimburse the court for the costs of processing the partial payment and providing the notice specified in this subdivision, and (3) the party has 20 days from the date of mailing of the notice within which to pay the remainder of the required fee and the administrative charge, except as provided in subdivision (f). If the person who tendered the payment is not a party to the action or proposed action, but only is acting on behalf of a party, the clerk shall notify not only the person who tendered the payment, and also the party or that party’s attorney, if the party is represented. The clerk’s certificate as to the mailing of notice pursuant to this section establishes a rebuttable presumption that the fees were not paid. This presumption is a presumption affecting the burden of producing evidence. This subdivision does not apply to an unlawful detainer action. (b) The clerk shall void the filing if the party who tendered a payment in an amount less than the required filing fee or on whose behalf a payment in an amount less than the required filing fee was tendered has not paid the full amount of the fee and the administrative charge by a means specified in subdivision (a) within 20 days of the date on which the notice required by subdivision (a) was mailed. Any filing voided by this section may be disposed of immediately after the 20 days have elapsed without preserving a copy in the court records notwithstanding Section 68152 of the Government Code. (c) If a payment for less than the required fee was tendered, the remainder of the required fee and the administrative charge were not paid within the period specified in subdivision (a), and a refund of the partial payment has not been requested in a writing mailed or presented by the party or person who tendered the payment within 20 days from the date on which the remainder of the required fee was due, the partial payment shall be remitted to the State Treasurer to be deposited in the Trial Court Trust Fund, except for the amount of the administrative charge described in subdivision (g), that shall be deducted from the partial payment and shall be distributed as described in subdivision (g) to the court that incurred the charge. If the party or person who tendered the check, credit card, electronic funds transfer, or other method of payment approved by the court requests a refund of the partial payment, in writing, within the time specified in this subdivision, the clerk shall refund the amount of the partial payment less the amount of the administrative charge imposed by that court. All partial payments that the court received before January 1, 2006, and that remain on deposit for filings that the clerk voided pursuant to this section, once three years have passed from the date that the fi [Text truncated for display. Full text available on Congress.gov.]