BILL ANALYSIS Ó AB 804 Page 1 ASSEMBLY THIRD READING AB 804 (Roger Hernández) As Amended March 23, 2015 Majority vote -------------------------------------------------------------------- |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+-----------------------+---------------------| |Business & |14-0 |Bonilla, Jones, Baker, | | |Professions | |Bloom, Campos, Chang, | | | | |Dodd, Eggman, Gatto, | | | | |Holden, Mullin, Ting, | | | | |Wilk, Wood | | | | | | | | | | | | |----------------+-----+-----------------------+---------------------| |Appropriations |16-0 |Gomez, Bigelow, Bonta, | | | | |Calderon, Chang, Daly, | | | | |Eggman, Gallagher, | | | | |Eduardo Garcia, | | | | |Holden, Jones, Quirk, | | | | |Rendon, Wagner, Weber, | | | | |Wood | | | | | | | | | | | | -------------------------------------------------------------------- AB 804 Page 2 SUMMARY: Requires the Court Reporters Board of California (CRB) to establish continuing education (CE) requirements for renewal of a shorthand reporter certificate. Specifically, this bill: 1)Requires the CRB to adopt regulations that establish minimum CE requirements for renewal of a Certified Shorthand Reporter (CSR) certificate by July 1, 2016. 2)Requires certificate holders, six months after the effective date of the regulations, to certify completion of minimum CE requirements to the CRB when renewing a certificate. 3)Requires the CRB to ensure that the CE requirement is relevant to the practice of shorthand reporting. 4)Requires the CRB to establish a procedure for approving CE course providers, and requires CE providers to comply with procedures established by the CRB. AB 804 Page 3 5)Authorizes the CRB to establish a fee, as specified, for the approval of CE providers. 6)Permits the CRB to revoke or deny the right of a CE provider for failure to comply with requirements or regulations as specified. 7)Authorizes the CRB to establish exceptions to the CE requirements for individuals who cannot meet the CE requirements for reasons of health, military service, or undue hardship. 8)Requires that the requirements comply with the guidelines for mandatory CE established by the Department of Consumer Affairs (DCA). AB 804 Page 4 9)Authorizes the CRB to adopt regulations to implement the above provisions. FISCAL EFFECT: According the Assembly Appropriations Committee, minor and absorbable costs to the CRB to implement the changes. Any additional costs incurred to approve continuing education providers could be covered by the fee authority granted in the bill. COMMENTS 1)Purpose. This bill is co-sponsored by the California Court Reporters Association and the Deposition Reporters Association of California. According to the author, this bill "requires the [CRB] to adopt regulations to establish continuing education requirements for renewal of a shorthand reporter's certification that are relevant to the practice of shorthand reporting, and requires the board to establish a procedure for approving providers of [CE] courses. AB 804 Page 5 "Once a shorthand reporter passes their initial test for licensing, they do not ever have to be retested in order to renew their license. The only time a CSR is ever retested for a license is if the CSR relinquishes their licenses then decides down the road to begin working again or becomes re-licensed." 2)Background. There are two types of CSRs (commonly known as court reporters). "Official" reporters are individuals who work as employees of the court system. "Freelance" reporters are individuals hired privately by court reporting businesses, firms, or attorneys to report depositions. In order to obtain a license, CSRs must attend a CRB-approved court reporting school and pass two written exams and a performance exam. There are 14 shorthand reporting schools in California and approximately 7,000 CSRs. Enforcement Data. Currently, the CRB receives about 100 AB 804 Page 6 consumer complaints a year, which is divided between untimely production of transcripts, inaccuracy, and other deficiencies. In the 2013-14 Fiscal Year, the CRB received 106 complaints. For the same year, other similarly-sized boards received similar numbers: the acupuncture board received 189; the board of optometry received 238; the osteopathic medical board received 360; and the physician assistant board received 351. Judicial Counsel CE Requirement. In 2007, the Judicial Counsel of California adopted a CE requirement for all personnel employed by the Court, including court reporters (California Rules of Court, Title 10, Division 2, Chapter 7). It requires court employees to take at least eight hours of CE every two years. The CE does not have to be related to court reporting. AB 804 Page 7 CE Issues During Sunset Oversight Hearings. In the CRBs 1996 sunset review, the Joint Committee's recommendation did not include pursuing CE. The issue was again raised in the 2004-05 review of the Board; however, the joint oversight committee did not recommend establishing a CE requirement. Necessity of CEs for CSRs. The CRB has noted industry changes that may lead to consumer harm. It noted that the court reporting business model has changed, which now results in a larger percentage of independent contractors working for large corporate firms owned by non-licensees. Because the larger conglomerates tend not to provide as much oversight of CSRs, CSRs working as independent contractors have less incentive to stay current with the profession. However, the CRB does not track the number of CSRs that work as independent contractors, for firms, or for courts. Further, the enforcement data shows that CRB has not received a particularly AB 804 Page 8 high number of consumer complaints. Therefore, it is not clear what impact this industry change has made. Nonetheless, imposing CE may be a useful preventive measure, given the risk to a litigant's legal rights. Therefore, the benefits to the profession and consumers will have to be weighed against the costs of a CE requirement to the consumers, licensees, and the CRB. Policy Issues for Consideration. Legislation requiring CE's for CSRs has been passed and vetoed two separate times in past legislative sessions. The most recent was SB 671 (Price) of 2011. The provisions of SB 671 were substantially similar to those contained in this bill; however, it was vetoed by Governor Brown, citing concerns about the burden of CE requirements. AB 804 Page 9 Arguments in Support: The California Court Reporters Association (co-sponsor) writes in support, "Under current law, there are no requirements in place to ensure that a CSR is maintaining the education needed to stay updated on rules, regulations, statutes and advancing technologies that affect the profession. Continuing education requirements ensure that every CSR can produce a verbatim record that continues to be held to the highest possible standard. " The Deposition Reporters Association of California (co-sponsor) wrote six arguments in support of this measure: 1) CSRs are important to the legal system, but are not required to take CE like other legal professionals; 2) CE is a useful consumer protection tool. CEs would address key differences between freelance and official court reporters; 3) CE was addressed in the 2005 Joint Committee sunset report; 4) New technology and laws necessitate CE; 5) Many states also require CE for court reporters; and 6) The CEs will be left to the CRB and the CRB will be able to absorb the cost. Arguments in Opposition: None on file. AB 804 Page 10 Analysis Prepared by: Vincent Chee / B. & P. / (916) 319-3301 FN: 0000156