BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        AB 804|
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                                    THIRD READING


          Bill No:  AB 804
          Author:   Roger Hernández (D)
          Amended:  3/23/15 in Assembly
          Vote:     21  

           SENATE BUS, PROF. & ECON. DEV. COMMITTEE:  7-2, 6/8/15
           AYES:  Hill, Block, Galgiani, Hernandez, Jackson, Mendoza,  
            Wieckowski
           NOES:  Bates, Berryhill

           SENATE APPROPRIATIONS COMMITTEE:  5-1, 6/22/15
           AYES:  Lara, Beall, Hill, Leyva, Mendoza
           NOES:  Bates
           NO VOTE RECORDED:  Nielsen

           ASSEMBLY FLOOR:  76-0, 4/23/15 - See last page for vote

           SUBJECT:   Shorthand reporters:  continuing education  
                     requirements


          SOURCE:    California Court Reporters Association

                     Deposition Reporters Association of California

          DIGEST:  This bill requires the Court Reporters Board of  
          California to adopt regulations establishing minimum continuing  
          education requirements as a condition for renewal of a court  
          reporters certificate and to establish a procedure for approving  
          providers of continuing education courses.
          
          ANALYSIS: 









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          Existing law:

          1)Provides for the certification and regulation of short hand  
            reporters and for the regulation of shorthand reporting  
            corporations by the Court Reporters Board (CRB) within the  
            Department of Consumer Affairs (DCA).  (Business and  
            Professions Code (BPC) § 8000 et seq.)

          2)Provides that a certified shorthand reporter (CSR) certificate  
            is valid for one year, and may be renewed by applying for the  
            certificate renewal, paying the renewal fee, and notifying the  
            CRB of any substantially related criminal convictions or of  
            any disciplinary action taken by any regulatory agency against  
            the licensee. (BPC § 8024)

          3)Establishes the fees the CRB may charge, including fees for  
            examinations, initial and renewal CSR certificates.  (BPC §  
            8031)

          4)Authorizes the CRB to investigate complaints against  
            licensees.  (BPC § 8008)

          5)Authorizes the CRB to suspend, revoke, or deny a certificate,  
            or take other disciplinary action for negligence,  
            incompetence, and unprofessional conduct. (BPC § 8025)

          6)Authorizes the CRB to issue administrative citations and  
            assess fines for violations of the rules and regulations  
            pertaining to CSRs.  (BPC § 8027.5)

          7)Requires the Director of the DCA, by regulation, to develop  
            guidelines to prescribe components for mandatory continuing  
            education (CE) programs administered by the DCA boards and  
            bureaus to ensure that mandatory CE is used as a means to  
            create a more competent licensing population, thereby  
            enhancing public protection and specifies what the guidelines  
            shall require in terms of providing CE programs.  (BPC § 166)

          This bill:

          1)Requires the CRB to adopt regulations that establish minimum  
            CE requirements for renewal of a CSR certificate by July 1,  
            2016.








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          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.

          5)Permits the CRB to revoke or deny the right of a CE provider  
            for failure to comply with requirements or regulations as  
            specified. 

          6)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.

          7)Requires that the CE requirements comply with the guidelines  
            for mandatory CE established by the DCA.

          8)Authorizes the CRB to adopt regulations to implement the above  
            provisions.

          9)Authorizes the CRB to establish a $40 fee for the approval of  
            CE providers.

          Background:

          1)Judicial Counsel Continuing Education 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 8  
            hours of CE every 2 years. 

            While not specific to court reporting, employees have two  
            choices for CE: (1) they may choose from approved providers;  
            or (2) they may choose a course that is relevant to the work  
            of the courts or the judicial branch, is one hour long, and  
            has identified anticipated learning outcomes (how new  
            knowledge, skills, or abilities will be applied, demonstrated,  







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            or used).  The Court's executive officers, managers, and  
            supervisors must grant employees enough leave to complete the  
            education, develop educational plans, and ensure proper  
            reimbursement for travel. 

          2)Continuing Education for Court Reporters:  A Legislative  
            Sunset Review Issue. The issue of CE was discussed several  
            times during the CRB's sunset review process.  In 1996, the  
            process covered the pros and cons of CE requirements, but the  
            CRB deleted a CE proposal from its 1994 legislation when it  
            learned that the Governor would not approve it. 
            At that time, the CRB stated that many in the profession  
            believe that the CRB's pre-license testing system keeps the  
            standard of entry at an appropriate level, and the intensity  
            demanded in the day-to-day requirements in the occupation  
            drives the individual licensees to seek and find the  
            educational training requirements necessary on their own  
            initiative.  However, others believed that, because the  
            industry changes quickly, there should be higher standards for  
            the profession. 

            In the end, the Joint Committee's recommendation did not  
            include pursuing CE.  The issue was again raised in the  
            2004-2005 review of the CRB; however, the Joint Oversight  
            Committee did not recommend establishing a CE requirement.

          3)Necessity of CE for CSRs and Consumer Protection. The  
            Co-Sponsors and Author of this bill note that the difficulty  
            of the profession, the constant changes in legal terms, and  
            the steady stream of new and complex technologies increase the  
            risk of harm to the legal rights of consumers.  In addition,  
            many other states require CSRs to complete CE.  Therefore,  
            they state that the CRB should require CSRs to complete CE. 

            Further, the CRB has also 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. 

            In the past, CSRs primarily worked in firms owned by licensees  
            that strongly encouraged the CSRs to stay current with changes  
            in technology and litigation support services.  Now, however,  
            CSRs tend to work as independent contractors that are hired by  







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            large conglomerates.  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 the courts.   
            Further, the enforcement data shows that CRB has not received  
            a particularly high number of consumer complaints.  Therefore,  
            it is not clear what impact this industry change has made.   
            One answer may be that issues in quality are rectified through  
            the normal processes-sometimes inaccuracies can be resolved  
            through the fact checking and proofreading process CSRs go  
            through before delivering a final product.  Without data,  
            though, there is no clear answer and no issue to rectify. 

            Nonetheless, imposing CE may be a useful preventive measure,  
            given the risk to a litigant's legal rights.  However, past  
            analyses have noted a distinction between licensees that  
            voluntarily seek out CE to better themselves and unwilling  
            licensees that take CE because it is required.  Because CSRs  
            that consistently produce inaccurate transcripts may be  
            disciplined by the CRB or have trouble finding work, they  
            already have reasons to stay up to date with their practice.  
            Therefore, an additional mandatory requirement may impact  
            educational outcomes.

            There is also an argument that CSRs (and all professions) can  
            benefit from CE, and there are many professional organizations  
            in support.  For example, there are ethical rules that court  
            reporters must follow, and CE may strengthen faith in the  
            profession.  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.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to the Senate Appropriations Committee:


           One-time staff costs of $51,000 in 2016-17 and $43,000 in  
            2017-18 for the CRB to develop and adopt regulations to  







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            establish continuing education requirements and establish a  
            process for approving providers of continuing education.   
            (Court Reporters Fund)

           Ongoing staff costs of $21,000 in 2017-18 and $34,000 annually  
            thereafter to process continuing education documentation from  
            licensees.  (Court Reporters Fund)

           Negligible revenue increase to the extent the CRB established  
            the maximum fee of $40 to approve continuing education  
            providers.  The CRB has only identified eight potential  
            providers currently offering courses or seminars that would  
            address the bill's continuing education requirements.


          SUPPORT:   (Verified6/23/15)


          California Court Reporters Association (co-source)

          Deposition Reporters Association of California (co-source)

          American Federation of State, County, and Municipal Employees

          Northern California Court Reporters Association

          Sacramento Official Court Reporters Association

          San Diego Superior Court Reporters Association

          Service Employees International Union



          OPPOSITION:   (Verified6/23/15)


          None received


          ARGUMENTS IN SUPPORT:     The California Court Reporters  
          Association (Co-Sponsor) writes, "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  







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          and advancing technologies that affect the profession.  While in  
          many cases, continuing professional development and education is  
          undertaken voluntarily, some reporters who practice in more  
          isolated settings may not have access to information related to  
          advancements or changes in the profession.  Consumers of the  
          products and services, offered by a CSR, expect to receive the  
          latest available technology, i.e., real-time reporting, Internet  
          text streaming, transcript repositories, exhibit scanning and  
          linking to transcripts, and much more. Continuing education  
          requirements ensure that every CSR can produce a verbatim record  
          that continues to be held to the highest possible standard." 

          ASSEMBLY FLOOR:  76-0, 4/23/15
          AYES:  Achadjian, Alejo, Baker, Bigelow, Bloom, Bonilla, Bonta,  
            Brough, Brown, Burke, Calderon, Chang, Chau, Chávez, Chiu,  
            Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman,  
            Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo  
            Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove,  
            Hadley, Harper, Roger Hernández, Holden, Irwin, Jones-Sawyer,  
            Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,  
            Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,  
            O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon,  
            Ridley-Thomas, Rodriguez, Santiago, Steinorth, Mark Stone,  
            Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood,  
            Atkins
          NO VOTE RECORDED:  Travis Allen, Campos, Jones, Salas

          Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-1868
          6/24/15 18:41:35


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