In 1999, the California Legislature directed the California Law Revision Commission - a nonpartisan government think tank charged with studying law improvement - and the California Judicial Council to study the state's hierarchy of trial courts and make recommendations for its improvement. The Judicial Council commissioned a study by Policy Studies, Inc, a consulting firm, to evaluate the system. In July 2002, PSI completed its study. Among other recommendations, the PSI study suggested a pilot program increasing the small claims jurisdictional limit to $7,500 or $10,000 in a few counties, as a test for raising the limit statewide. In August 2002, HALT completed a study showing the need for a greater increase in dollar limits, as well as the need for other reforms.

In December 2002, the CLRC issued a Tentative Recommendation, in which it called for an increase in the small claims jurisdictional limit to $10,000, noting that the problem of access to justice for people in counties without pilot programs was too urgent to wait for several more years. The Commission also recommended increased funding and other improvements of the small claims advisor system. In particular, citing California's grade of "F" for "Help Collecting a Judgment" in HALT's 2001 Small Claims Report Card, the Commission indicated that the duties of a small claims advisor should explicitly include advice on enforcing a small claims judgment. The Tentative Recommendation also mentions HALT's study and report card numerous other times as bases for its findings.

If California were to raise its dollar limit to $10,000, it would have the second-highest limit in the country. Only Tennessee, at $15,000 (with some counties at $25,000) has a higher dollar limit, and only New Mexico and Philadelphia, Pennsylvania have small claims dollar limits of $10,000.

"We're thrilled that California is taking this giant step to increase access to justice for the average person," said HALT Executive Director Jim Turner. "California already had the best small claims court system in the country. The fact that they are continuing to work towards improving the system is a credit to the policymakers in that state, and will undoubtedly benefit those who can take advantage of the 'people's court.'"

HALT testified at a September 18 meeting of the CLRC on the need for increasing the small claims dollar limit. While some Commission members initially expressed some skepticism about raising the limit to as much as $10,000, the Commission has decided to go ahead with its original plan to push for the full increase. The CLRC is likely to issue a final recommendation in 2004, for consideration by the legislature in 2005.