BILL ANALYSIS
AB 1461
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Date of Hearing: May 20, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 1461 (Ruskin) - As Amended: May 12, 2009
Policy Committee: Business and
Professions Vote: 7 - 3
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill prohibits a firm, partnership, sole proprietorship, or
other business entity providing or arranging for shorthand
reporting services from conducting themselves unprofessionally
under any statute, rule or regulation - current or prospective -
that pertains to shorthand reporters or shorthand reporting. In
addition, the bill specifies that these entities shall observe
and be bound by the same statutes, rules and regulations that
bind a person holding a shorthand reporting license.
FISCAL EFFECT
It is unclear how many new corporations will now fall under the
jurisdiction of the board. There are at least six multi-national
corporations operating in California and estimates suggest that
there may be over 1,000 other corporations with operations in
California. Given the lack of data it is hard to quantify the
increased workload for the board. However, the Court Reporters
Board (CRB) currently has one full time enforcement officer and
five total employees.
It is likely that CRB would need at least three additional
employees to cover the activities associated with enforcing
court shorthand reporter (CSR) rules and regulations for this
new cohort of corporations - many of them with complex business
structures. Costs for those three employees would exceed
$200,000 per year from the Court Reporters Fund. The fund would
be able to absorb the workload increase without increasing fees.
COMMENTS
AB 1461
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1)Rationale . This bill is intended to close a loophole that
allows businesses to circumvent ethics standards, laws, and
regulations that govern shorthand court reporting. The author
identifies two problem areas: the ownership level of a
business and the structure of a business. The law covers
those individuals licensed by the Court Reporters Board (CRB)
and those businesses structured as "corporations," but the
law does not cover those businesses owned by unlicensed
individuals that are structured in any way other than as a
corporation; for example, a limited partnership or sole
proprietorship. This bill would clarify that those types of
businesses are governed by the same rules and regulations as
an individual with a shorthand reporting license.
2)Opposition . Opponents of the bill, the California Deposition
Agency Owners and Reporters Association, note that this
legislation significantly expands current law by giving the
CRB the right to oversee and govern any firm, partnership,
sole proprietorship, or other business that provides for or
arranges shorthand reporting. They note that corporations are
already overseen by other state departments and boards and do
not need an additional layer of oversight. In addition, they
note that this bill would apply existing professional conduct
standards applicable to shorthand reporters and shorthand
reporting corporations to any entity that "arranges" for
shorthand reporting services. As such, a lawyer or law firm
that schedules a shorthand reporter to create a record of a
deposition would be bound by the professional conduct rules
that currently govern lawyers, those that govern their
corporate structures, and now those that govern shorthand
reporters.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081