BILL ANALYSIS                                                                                                                                                                                                    Ó



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          GOVERNOR'S VETO


          AB  
          804 (Roger Hernández)


          As Enrolled  September 9, 2015


          2/3 vote


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          |ASSEMBLY:  | 76-0 |(April 23,     |SENATE: |28-12 |(September 2,    |
          |           |      |2015)          |        |      |2015)            |
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          |ASSEMBLY:  | 78-1 |(September 4,  |        |      |                 |
          |           |      |2015)          |        |      |                 |
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          Original Committee Reference:  B. & P.




          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: 









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          1)Requires the CRB to adopt regulations that establish minimum  
 
            CE requirements for renewal of a Certified Shorthand Reporter  
 
            (CSR) certificate by July 1, 2017.





          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 ensure that the CE required includes a  
 
            minimum of two hours of course credits in ethics and  
 
            professional conduct of shorthand reporting. 













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          5)Requires the CRB to ensure that the CE required is not less  
 
            than eight hours and not more than 12 hours of course credits  
 
            every two years.





          6)Requires the CRB to establish a procedure for approving CE  
 
            course providers, and requires CE providers to comply with  
 
            procedures established by the CRB.





          7)Authorizes the CRB to establish a fee, as specified, for the  
 
            approval of CE providers.





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





          9)Authorizes the CRB to establish exceptions to the CE  








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            requirements for individuals who cannot meet the CE  
 
            requirements for reasons of health, military service, or undue  
 
            hardship.





          10)Requires that the requirements comply with the guidelines for  
 
            mandatory CE established by the Department of Consumer Affairs  
 
            (DCA).





          11)Requires the CRB, in collaboration with the Judicial Council,  
 
            to develop a list of courses that satisfy both these CE  
 
            requirements and the requirements of Rule 10.474 of Title 10  
 
            of the California Rules of Court.  The courses on the list may  
 
            be used to satisfy both these requirements and the  
 
            requirements of Rule 10.474.





          12)Authorizes the CRB to adopt regulations to implement the  
 








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            above provisions.





          The Senate amendments:


          1)Add three additional obligations for the CRB, requiring that:


             a)   The CRB ensure that the CE required includes a minimum  
               of two hours of course credits in ethics and professional  
               conduct of shorthand reporting;


             b)   The CRB ensure that the CE required is not less than  
               eight hours and not more than 12 hours of course credits  
               every two years; and,


             c)   The CRB, in collaboration with the Judicial Council,  
 
               develop a list of courses that satisfy both these CE  
 
               requirements and the requirements of Rule 10.474 of Title  
 
               10 of the California Rules of Court.  The courses on the  
 
               list may be used to satisfy both these requirements and  
 
               Rule 10.474.





          FISCAL EFFECT:  According to the Senate Appropriations  








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          Committee, one-time staff costs of $51,000 in 2016-17 and  
          $43,000 in 2017-18 for the Board to develop and adopt  
          regulations to 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 Board established  
          the maximum fee of $40 to approve continuing education  
          providers.  The Board has only identified eight potential  
          providers currently offering courses or seminars that would  
          address the bill's continuing education requirements.


          COMMENTS:


          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.


          "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."










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          Background.  Currently, the CRB receives about 100 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.


          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  
          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.


          Prior Veto.  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  








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          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.


          GOVERNOR'S VETO MESSAGE:


          This bill would require the Court Reporters Board to establish  
          continuing education requirements for renewal of a shorthand  
          reporter certificate. 


          This measure is very similar to SB 671, which I vetoed in 2011.   
          My view then was that, "the whole idea of legally mandated  
          continuing education is suspect in my mind." My thinking hasn't  
          changed. 




          Analysis Prepared by:                                             
                          Vincent Chee / B. & P. / (916) 319-3301  FN:  
          0002449