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SR-8-D (5) t ~- So . \ \ DO .-00 u\, . P-j) t DEe 1 0 19M CA:RMM:rmd095/hpca California City Council Meeting 12-10-85 Santa Monica, STAFF REPORT TO: Mayor and City Council FROM: city Attorney SUBJECT: Ordinance Amending sections 2604, 2605, 2606, 2607, and 2608 of the Municipal Code and Adding section 2608A to the Municipal Code Relating to Subpoenas INTRODUCTION At its meeting on March 12, 1985, the City Council introduced for first reading an ordinance amending Sections 2604, 2605, 2606, 2607, and 2608 of the Municipal Code and adding Section 2608A to the Municipal Code relating to subpoenas. At its meeting on March 26, 1985, the City Council directed the City Attorney to respond to concerns raised during the meeting and requested that the Rent Control Board provide additional information. The Rent Control Board recently notified the city Attorney that it had issued subpoena regulations and requested that the ordinance be returned to the city Council. BACKGROUND Municipal code Section 2605 authorizes boards and commissions enumerated in Article X of the city Charter or created by City Council ordinance to compel production of r-J> DEe 1 0 \985 - 1 - '" -: . . witnesses and evidence and provides that non-compliance with such a subpoena is punishable as a misdemeanor. The Rent Control Board has authori ty under city Charter Section 1803 (f) (11) to administer oaths and to subpoena wi tnesses. However, the Rent Control Law is silent on the authority of the Board to compel compliance with a subpoena that is disregarded. The Board has had a continuing problem with parties ignoring subpoenas. without specific authority to seek judicial enforcement of subpoenas, this problem will continue. See 18 Ops. Cal. Atty. Gen. 236 (1951) (administrative agencies have no inherent authority to require attendance of witnesses); Marcus V. Workmen's Compensation Appeals Board, 35 Cal. App. 3d 598, III Cal. Rptr. 101 (1979) (non-judicial agency has no power to punish for contempt for disregarding subpoena). Administrative agencies are typically authorized by statute to apply to a court for an order compelling a witness to comply with an administrative subpoena. Hill v. Brisbane, 66 Cal. App. 2d 15, 15l P.2d 387 (1944). Under statutes such as Santa Monica Municipal Code Section 2608 and California Government Code Section 11525, the agency may also apply to the court for immediate sanctions or penalties for failure to comply with an administrative subpoena. The accompanying ordinance proposes that a new Section 2608A be added to the Municipal Code to specify that disobedience of a subpoena of the Rent Control Board is punishable as a - 2 - .,. ~ . . misdemeanor and that the Board may seek a court order to enforce its subpoenas. Existing sections of the Municipal Code relating to subpoenas are also amended. section 2605 would be changed to limit the power to issue subpoenas without prior city Council approval to the Hearing Examiner, Planning Commission, Personnel Board, and Architectural Review Board. other boards and commissions could issue subpoenas only upon specific city Council authorization. Section 2607 would be changed to bring witness fees and mileage reimbursement in line with fees charged by courts pursuant to California Government Code section 68093. witness fees of $4.50 per hour of actual attendance are authorized, up to a maximum of $35.00 per day. This is equivalent to the $35.00 per day fee for court attendance. Payment of twenty cents per mile actually travelled, both ways, is also provided. This is the same rate provided under state law. Minor technical and clerical changes have been made to sections 2604, 2606, and 2608. RENT CONTROL BOARD REGULATIONS By memorandum dated October 16, 1985, the Rent Control Board notified the city Attorney that the Board had adopted administrative regulations on the subject of subpoenas. The Board requested that the City council again consider the Municipal Code amendments in light of the standards and - 3 - 'l' -t . . protections provided by the Rent Control Board's regulations. A copy of this memorandum and the Rent Control Board regulations are contained in Appendix A to this staff Report. RESPONSE TO COMMENTS At its meeting on March 26, 1985, the city council requested the city Attorney to respond to comments submitted by Mr. Tom Nitti. His concerns and the city Attorney's responses are as follows: 1. Why was the problem with parties ignoring subpoenas not addressed when the Charter was amended in the Fall of 19847 It apparently was an oversight given the other complex issues being addressed under tight time deadlines. 2. Has there been any study done of how many subpoenas the Rent Board has issued since its inception, or on an annual basis, how many subpoenas are ignored? The Rent Control Board's response to this question is contained in Appendix B. 3. Has the Rent Board supplied any profile of the typical types of subpoenas issued, and the reason for issuing them? The Rent Control Board's response to this question is contained in Appendix B. 4. Section 1802 of the Charter states that the Rent Board "shall exercise its powers and duties under this Article - 4 - '" " . . independent or without interference from the City Council, City Manager and City Attorney.1I Is not the cooperation of the City council and city Attorney regarding subpoenas a violation of the independence of the Rent Board mandated in the Charter? The proposed ordinance providing for enforcement of subpoenas by the Rent Control Board does not interfere with the exercise of its powers. 5. Criminal sanctions already exist in the Rent Control Charter Amendment, section 1810, which provides that "any landlord violating this Article shall be guil ty of a misdemeanor." Why is there a need for the city Council to create an additional misdemeanor sanction? The Rent Control Board has indicated that ambiguity has created uncertainty which can be clari f ied by ordinance. The assertion that the City Charter already provides criminal penal ties is not a compelling argument against adoption of the ordinance. other provisions of the Municipal Code clarify or restate City Charter provisions. 6. The Board already has power to seek relief from court regarding a subpoena. Section 1811 provides that lithe Board may seek relief from the appropriate court; to enforce any provision of this Article or its implementing regulations. . . .11 Once again, this is not an argument against adoption of the ordinance. The remedy provided by the ordinance is likely to be less costly and time-consuming to evoke. - 5 - ~ " . '. 7. The Rent Board is approaching the City Council requesting an ordinance. There are no standards set forth under which the Rent Board will exercise the power it is requesting of the city Council. The circumstances under which subpoenas may be issued are not enumerated. It would seem that the City Council should request standards if it plans to give this power to the Rent Board. The Rent Control Board regulation contained in Appendix A responded to this concern. 8. The civil liability of the city for abuse of the subpoena power by the Rent Control Board is not addressed. The City Attorney does not believe that any liability concerns need be addressed in the ordinance. In six years of operation, no monetary judgment has been entered against the City for damages from Rent Control Board operations. 9. The necessity for any city agency to have subpoena power other than the City Council is not adequately addressed. This concern reflects a lack of understanding of city administrative practice and its obligation to meet minimal due process standards. Subpoena power has been 1 imi ted to those tribunals in which constitutional requirements may necessitate subpoenas being issued at the request of a party to the proceeding. - 6 - ~ f . . RECOMMENDATION It is respectfully recommended that the accompanying ordinance be introduced for first reading. PREPARED BY: Robert M. Myers, City Attorney - 7 - ..... ~ . . CA:RMM:rmo096/hpca City Council Meeting 12-10-85 Santa Monica, California ORDINANCE NUMBER (city council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SECTIONS 2604, 2605, 2606, 2607 AND 2608 OF THE SANTA MONICA MUNICIPAL CODE AND ADDING SECTION 2608A TO THE SANTA MONICA MUNICIPAL CODE RELATING TO SUBPOENAS THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. section 2604 of the Santa Monica Municipal Code is amended to read as follows: SECTION 2604. Form of Subpoena. The form of Subpoena to be issued by the city council under section 614 of the City Charter substantially as shall be follows: STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF SANTA MONICA SUBPOENA ) ) S5 ) IN THE MATTER OF THE CITY OF SANTA MONICA SENDS GREETINGS TO: - 1 - .. . . You are hereby commanded to appear before the city Council of the City of Santa Monica, in the Council Chamber in the City Hall of said City, on the day of 198 , at the hour of o'clock ____M., to testify in a matter now pending before said City Council concerning and to bring with you and to produce before said City Council the following: to be used as evidence. Disobedience of this subpoena or the refusal to testify (except upon constitutional grounds) shall constitute a misdemeanor and shall be punishable by the penalties provided for in Section 1200 of the Municipal Code of the City of Santa Monica. In Witness Whereof, I have hereunto set my hand and affixed the seal of said City of Santa Monica this day of , 19 City Clerk. SECTION 2. Section 2605 of the Santa Monica Municipal Code is amended to read as follows: section 2605. Use Hearinq Examiner Commissions. The of subpoena by and Boards and Hearing Examiner, - 2 - ... . . Architectural Review Board, Personnel Board, Planning Commission, or upon specific authorization by the city Council, any other board or commission enumerated in Article X of the City Charter or created by ordinance of the City council are empowered to compel the attendance of witnesses, to examine them under oath, and to compel them to produce all evidence before it. Subpoenas may be issued in the name of the city pursuant to the order of the Hearing Examiner or any such board or commission and be attested by the city Clerk. Such subpoenas shall be in substantially the same form as herein provided for subpoenas to be issued by the order of the ci ty Council. Disobedience of any subpoena issued in the manner herein provided or the refusal to testify (except upon constitutional grounds) shall constitute a misdemeanor and shall be punishable by the penalties provided for in Section 1200 hereof. SECTION 3. Section 2606 of the Santa Monica Municipal Code is amended to read as follows: - 3 - .. . . SECTION 2606. Service. Subpoenas issued by the order of the City Councilor by any board or commission under Section 2605 shall be served by a police officer or other person by delivering a true copy thereof to the witness and by exhibiting the original subpoena to such witness, and such police officer or other person making such service shall make due return thereof in writing, showing such service and the time, date and place thereof. SECTION 4. section 2607 of the Santa Monica Municipal code is amended to read as follows: SECTION 2607. Witness Fees and Mileaqe. A witness appearing pursuant to a subpoena of the city Councilor pursuant to Section 2605 shall be entitled to receive the sum of four dollars and fifty cents ($4.50) for each hour that he or she is actually in attendance, not to exceed the sum of thirty-five dollars ($35.00) per day, and in addition thereto, for mileage actually travelled, both ways, twenty cents ($0.20) a mile. Such witness shall not be entitled to demand payment of fees and mileage in advance. Such fees and mileage shall constitute a demand - 4 - .. -.. . . against the City to be paid in like manner as other demands. SECTION 5. Section 2608 of the Santa Monica Municipal Code is amended to read as follows: SECTION 2608. Complaint for Disobedience. Should any person fail to obey any such subpoena, or refuse to testify (except upon constitutional grounds) the city Council, board or commission, pursuant to whose order such subpoena is issued, shall thereupon adopt a resolution embodying the facts of such disobedience or refusal to testify and directing the presiding officer of such body to make complaint in the Municipal Court for the Santa Monica Judicial District against such person. SECTION 6. Section 2608A is added to the Santa Monica Municipal Code to read as follows: SECTION 2608A. Enforcement of Rent Control Board Subpoenas. Disobedience of any subpoena issued by or on behalf of the Rent control Board pursuant to the provisions of Article XVIII of the City Charter or the refusal to testify before the Rent Control Board or one of its - 5 - .. ...... , . . hearing officers (except upon constitutional grounds) shall constitute a misdemeanor and shall be punishable by the penalties provided for in section 1200 hereof. Should any person fail to obey such subpoena or refuse to testify (except upon constitutional grounds), the Rent control Board shall thereupon adopt a resolution embodying the facts of such disobedience or refusal to testify and directing the Chairperson of the Rent Control Board to make complaint in the Municipal Court for the Santa Monica Judicial District against such person. SECTION 7. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this ordinance, to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to affect the provisions of this ordinance. SECTION 8. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The Ci ty Council hereby declares that it would have passed this ordinance and each and every section, subsection, sentence, clause or phrase not declared invalid or unconstitutional without regard to whether - 6 - ~ .L . . any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 9. The Mayor shall sign and the city Clerk shall attest to the passage of this ordinance. The city Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. The ordinance shall become effective after 30 days from its adoption. APPROVED AS TO FORM: ,..... ~ _ _.A. \..... _ \_~~ 14 ~\~, ~ __ ROBERT M. MYERS \J City Attorney - 7 - --.,_ .J.... . . APPENDIX A . " . . SANTA MONICA RENT CONTROL BOARD - MEMO TO: FROM: DATE: Robert Myers, CIty Attorney ~ Joel M. Levy, General counse~ ~ October l6, 1985 RE: Subpoena Regulations Attached is a copy of the Board regulations concernIng the Issuance and enforcement of subpoenas. They were adopted on May 16, 1985, and became effective on June 2, 1985. They are intended to address the ObjectIons expressed by the public and the City Council members In connection wIth the proposed MunIcIpal Code amendment WhICh would add the Rent Control Board to the list of boards and commlSSlons whose subpoenas may be enforced through mIsdemeanor complaInts. The principal opponents of the ordInance, represented by James Baker, expressed the1r satisfaction w1th the terms of these regulations, though they did not formally wIthdraw theIr opposItion to the concept of enforcement through mIsdemeanor complaints. We believe that the regulations are responsive to the concerns of the opponents of the proposed ordInance. It should now be possible for the City Council to again consider the Municipal Code amendment, this time in the 11ght of the standards and protections provided by the Board's subpoena regulations. We therefore request that the proposed amendment be placed before the CouncIl for consIderatIon. If, in your judgment, any comment from this office concerning the MunIcipal Code amendment or the regulatIons would be helpful, or if we can assist in any other way, please let me know. cc: Howell TumlIn 4819L ... ~. . . CHAPTER IS: HEARING PROCEDURES SUBCHAPTER A. [Reserved] SUBCHAPTER B [Reserved] SUBCHAPTER C: SUBPOENAS 15030. Statement of Purpose Thi s subchapter contains Implement Ing regulatIons for Charter Amendment Section 1803(0 (11). Subpoenas are often Indispensable in Rent Control Board hearIngs SInce relIable informatIon relevant to the determInatIon of lawful rent levels may be otherwise unobtaInable. Persons seekIng the Issuance of subpoenas and witnesses subJect to those subpoenas are entItled to know their legal rIghts and obligatIons. The purposes of this subchapter aret therefore, twofold; (1) to provide tenants and landlords, as well as the Board and Its hearing examiners, wi th the means to compe 1 attendance of materIal wItnesses and productIon of relevant documents or other physIcal evidence at admInIstrative hearIngs conducted by the Rent Control Board or its hearing examiners; and (2) to establIsh standards and procedures for the administratIon of the subpoena power which wIll prevent abuse by any party. 15031. S~bpoena Forms Any person seeking Issuance of a subpoena under thIS subchapter must do so on an applIcation form approved by the Board. Subpoena forms adopted by the Board shall contain a clear statement of tne rIghts and oblIgations of both the party on whose behalf the subpoena IS issued and those of the subpoenaed wItness. This statement shall, at a minimum, advIse the subpoenaed WI tness of the rIght to contest the suffIciency of the perIod of notIce to appear which he or she has recei ved t the right to contest the relevancy of the documents or other physlcal eVIdence which have been demanded, and the rIght to receive attendance and mIleage fees In specIfIed amounts. 15032. Procedure for Obtalnlng Subpoena or Subpoena Duces Tecum Any landlord or tenant who IS a party to a hearIng may request Issuance of a subpoena prIor to commencement of the hearIng by 4556L -1- 10/1/85 ,~ ~.... .. . . following the procedures set forth in subsectIons (a) through Cd). Upon signIng a declaratIon stating that he or she is authorized to act on behalf of a party to a hearing, an attorney or authorized representatIve may request issuance of a subpoena. (a) Application for Subpoena A party seeking Issuance of a subpoena by the Board must complete an applicatIon form by fIlling in all requIred Information, and must declare that he or she is a party to a particular admInIstrati ve proceeding pending before the Board or one of its hearIng examiners. If a subpoena duces tecum (a request for production of documents or other physical eVIdence) IS requested, the applicant must complete the declaration portIon of the application, statIng under penal ty of perjury that good cause eXists for reqUIrIng the production of the matters and thIngs described In such subpoena, specIfying the exact ma tters or thIngs desired to be produced, setting forth in full detaIl the materiall ty thereof to the issues involved in the case, and stating that the wItness has the desired matters or things In his possessIon or under hIS control. (b) Subpoena Issuance; Review and Signature The form must then be submitted for reView and sIgnature by the AdmInIstrator, General Counsel, or Hearings SuperVIsor. The subpoena shall be revIewed for completeness prIor to issuance. The relevancy or appropriateness of a subpoena may be contested at the hearIng, as set forth in SectIons 15035 and 15036 below. (c) Se,rvice of Subpoena A wItness shall be afforded reasonable notIce of the hearIng at WhICh attendance or product Ion of documents or othe r phys lca I evidence is compelled. A subpoena must be served upon the witness at least five days prior to the date of hearlng. Service may be made by any person over eighteen years of age who IS not a party to the hearing. (d) Witness Fee~ ,and Mileage Wi tnesses subject to subpoenas issued by the Board shall be entitled to attendance and mIleage fees payable In the manner and in the amounts spec if led by the Calif orni a Code of Ci VII Procedure. 15033. Use of _~ubpoena by Rent Control Board or HearIna Exami ne r The Board or Its hearing examiners may compel the attendance of WI tnesses in order to examine them under oath or to compe I produc t Ion of document s or othe r physi cal evidence. In such cases, the reqUIrements set forth in subsectIons 15032(b) through lS032(d) shall apply. 4556L -2- 10/1/85 ~.A 'I! or: . . 15034. Geograph1cal Reach of Subpoenas A witness 1S not obliged to attend as a wItness outsIde of the county In which he or she resides. unless the distance from the principal place of residence of the witness to the hearIng locatIon is less than one hundred fifty m1les. 15035. Motion to Quash Subpoena A wi tness may contest a subpoena by attending the hearIng and makIng a mot Ion to quas h the suboena if 1 tIS unreasonab lea r oppress1ve. ThIS sectIon ne1ther adds to nor detracts from the rIght of a WItness to Institute a court proceedIng to quash a subpoena. 15036. Protection of Witnesses; Modification of Subpoenas Notwithstanding issuance of a subpoena pursuant to Section 15032 or 15033. the Board and Its hearIng examIners shall make any remedIal orders necessary. IncludIng but not l1mited to the follOWing examples. In the event that a WItness disobeys a subpoena after haVIng receIved untimely notIce to appear, a contInuance may be granted upon a ShOWIng of good cause by the party seekIng the testimony of the absent wi tness. The scope of a subpoena duces tecum may be llml ted If 1 t appears tha t Items of eVidence not relevant to the proceedIng have been Included or that the subpoena does not suffIciently specify the eVIdence to be produced. RemedIal orders may be made on the motIon of the Board or hearing examIner, or upon motion by the WItness. 15037. Enforcement of Subpoena~ In the event that no motion to quash has been granted pursuant to subsectIon 15035 nor remedial order issued pursuant to subsectIon 15036. where a WItness falls to obey a subpoena issued by the Rent Con tro I Boa rd (except upon cons ti tut lona 1 grounds), the Board may adopt a resolution embodying the facts of such disobedlence or refusal to testIfy and dIrecting the Chairperson of the Rent Control Board to make complaint in the Municipal Court for the Santa MonIca Judicial District agaInst such person pursuant to the Santa Monica Municipal Code. If the WItness cures such disobedIence within fIve days after adoption of such a resolutIon, the Board shall wi thdra\rl that re so lut Ion. In no event shall such a re solut i on be adopted where the subpoena was not served upon the WI tness at least flve days prIor to the hearing date, as set forth In subsection lS032(c) above. [Chapter 15 Adopted 5/16/85; EffectIve 6/2/85] 4556L -3- 10/1/85 "'- ". << . . APPENDIX B ~... . L .. . . SANTA MONICA RENT CONTROL BOARD - MEMO TO: Robert Myers, City DATE: November 26, 1985 Attorney couns~ CL~~~ ~ FROM: Joel Levy, General RE: Public Inquiry Regardlng Rent Board Subpena ExperIence You have requested that Rent Control Board staff pro- vide you with answers to two questions regarding Board subpenas; 1. Has there been a study of the number of subpenas issued by the Board, includIng the number issued annually and the number which have been disobeyed? 2. Does the Board have a prof lIe of the typlcal types of subpenas issued and the reasons for IssuIng them? Number of Subpenas Issued. Although the Rent Control Board has never completed a formal study of the numbers and types of subpenas Issued, staff has reviewed records maintaIned by the Agency since November, 1980. In the three years between November, 1980 and October, 1983, a total of 159 subpenas or an average of 53 subpenas per year were issued. The total number of subpenas for the appear- ance of a person was 95; the total for production of documents was 64. The yearly average for subpenas of the person was 32; the yearly average for subpenas duces tecum was 21. In the last two years, records of subpenas requested, based upon an Informal survey, mate1y 30 subpenas per year have the Agency has not maintained issued, or served. However, staff estImates that approxi- been Issued during that perIod. The recent declIne In subpena Issuance is due to the the Board's loss of jurisdIctIon in excess rent cases and most decrease cases and the Board's use of prehearlng notIces to produce rather than subpenas to obtaln documentation of income and expenses claimed in rent increase cases. Unfortunately, staff has no record of the numbers of subpenas issued from 1980 through 1984 which were disobeyed, and only a survey of hundreds of Indi vidual case flIes would yield that informatIon. 5300L ,_ .2 I.. " . . Memo to: Robert Myers, CIty Attorney November 26, 1985 Page 2 We are aware of three instances of noncomplIance dur- Ing the 1 as t twe 1 ve months. Two involved outright refusals to comply with the subpena and the thIrd Involved procedural ob- jections to service. Two base rent cases have been delayed due to the refusal s of the key WI tnes ses to obey subpenas. The third case was decIded without the subpenaed evidence. In base rent cases (see dIScussIon below) a decIsion may be ImpossIble In the absence of direct eVIdence of the April 10, 1978 rent levels. Increased Issuance Anticipated. In late 1983, the Board adopted Regulations regardIng determInatIon of base rents. RegulatIon 13004(d) imposes an aff i rma ti ve duty upon the hear ing examIner to "seek and intro- duce Into the record all avaIlable eVIdence regardIng the con- tested rents or amenI ti es. tI The Board 1 s staff has Ident if ied hundreds of Instances in which there IS doubt as to the correct registered rents or housing services. Thus, in additIon to the many base rent peti tions flIed by landlords and tenants, the Board wIll file about 350 such petItIons in the next year. The hearIngs department manager estimates that hearIng examiners may request issuance of approxImately 70 subpenas during the next year In an effort to create complete records In base rent cases. Some growth in subpena 1 s suance IS al so ex- pected due to the hearing of a greater number of rent decrease petitIons as a result of the successful conclusIon of the Sterling case. ProfIle of Subpena Types. From 1980 through 1983, a majority of the subpenas re- quested involved claims of excess rent, and were subpenas seek- ing attendance of owners, former owners or former tenants. As you know, the Board has not consIdered excess rent cases SInce issuance of the Injunction in the McHugh case. Base rent peti- tions are now the most important reason for issuance of Board subpenas. Our Informal survey indIcates that durIng the last two years the ratIo of subpenas of the person to subpenas of docu- ments has continued to be approximately two to one. The empha- sis now is upon WItnesses such as the owners, former owners or former tenants who might have dIrect knowledge of the AprIl 10, 1978 rent levels or hOUSIng serVIces so as to establIsh the correct base rents and amenIties. 5300L ..... ~~ ..& . . Memo to: Robert Myers, City Attorney November 26, 1985 Page 3 The documents sought, continue to be prImarily rent records, ledgers, canceled checks, escrow statements, bank de- pOSIt statements, utility bIlls and notices of rent Increase. Agaln, the main purpose is to enable the Board and the parties to have reliable evidence of the actual base rent levels, and so to give all concerned confldence in the correctness of the base rents upon WhICh rent control relies entlrely. In decrease cases, subpenas are most often Issued in order to es tabll sh the ex i s tence of a part icul ar housIng ser- vice as of the base rent date. In other words, as in base rent cases, landlords and tenants often need to compel the at ten- dance of wItnesses WIth knowledge of the situation of the prop- erty on April 10, 1978. cc: Rent Control CommIssioners Howell Tumlin Brenda McKInsey 5300L