BILL NUMBER: AB 2192 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 18, 2016
PASSED THE ASSEMBLY AUGUST 24, 2016
AMENDED IN SENATE AUGUST 15, 2016
AMENDED IN SENATE JUNE 30, 2016
AMENDED IN SENATE JUNE 22, 2016
AMENDED IN ASSEMBLY APRIL 6, 2016
INTRODUCED BY Assembly Member Salas
(Principal coauthor: Senator Hill)
FEBRUARY 18, 2016
An act to amend Sections 8000, 8005, 8030.2, 8030.4, 8030.6,
8030.8, and 8031 of, to add Section 8030.1 to, to add and repeal
Section 8030.9 of, and to repeal Section 8030.5 of, the Business and
Professions Code, relating to professions and vocations, and making
an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 2192, Salas. Court Reporters Board of California: Shorthand
reporters fees: Transcript Reimbursement Fund.
(1) Existing law provides for the licensure and regulation of
shorthand reporters by the Court Reporters Board of California, which
is within the Department of Consumer Affairs, and authorizes the
board to appoint an executive officer and committees and to employ
other employees, as specified. Existing law repeals these provisions
on January 1, 2017.
This bill would extend the operation of the board and the
authorization of the board to appoint specified personnel and
committees until January 1, 2020.
(2) Existing law authorizes the board, by resolution, to establish
a fee for the renewal of a certificate issued by the board, and
prohibits the fee from exceeding $125, as specified. Under existing
law, all fees and revenues received by the board are deposited into
the Court Reporters' Fund, which is a continuously appropriated fund
as it pertains to fees collected by the board.
This bill would raise that fee limit to $250. By authorizing an
increase in a fee deposited into a continuously appropriated fund,
this bill would make an appropriation.
(3) Existing law requires, until January 1, 2017, certain fees and
revenues collected by the board from licensees to be deposited into
the Transcript Reimbursement Fund, which is established as a
continuously appropriated fund, to be available to provide
reimbursement for the cost of providing shorthand reporting services
to low-income litigants in civil cases. Existing law authorizes,
until January 1, 2017, low-income persons appearing pro se to apply
for funds from the Transcript Reimbursement Fund, subject to
specified requirements and limitations, including that total
disbursements are prohibited from exceeding $30,000 annually and
$1,500 per case. Existing law requires the board, until January 1,
2017, to publicize the availability of the Transcript Reimbursement
Fund to prospective applicants. Existing law requires the
unencumbered funds remaining in the Transcript Reimbursement Fund as
of January 1, 2017, to be transferred to the Court Reporters' Fund.
The bill would provide that the Transcript Reimbursement Fund is
to be funded by a transfer of funds from the Court Reporters' Fund in
the amount of $300,000 annually and authorizes the board to transfer
funds in increments of $100,000. The bill would provide that the
board may use existing resources to publicize the availability of the
Transcript Reimbursement Fund to prospective applicants, as
specified. The bill would instead prohibit disbursements from the
Transcript Reimbursement Fund to pro se litigants from exceeding
$75,000 annually. The bill would prohibit a vexatious litigant, as
defined, from receiving funds from the Transcript Reimbursement Fund,
except as specified. The bill would require the board to prepare and
submit a report to the Legislature on or before November 1, 2018,
regarding the condition of the Court Reporters' Fund, the condition
of the Transcript Reimbursement Fund, and alternative funding sources
to cover the costs associated with transcripts provided to indigent
litigants, as specified. This bill would extend the operation of the
provisions regarding the Transcript Reimbursement Fund until January
1, 2020, and recast and revise certain provisions regarding that
fund.
By extending the operation of the Transcript Reimbursement Fund,
which is a continuously appropriated fund, the bill would make an
appropriation.
(4) This bill would include a change in state statute that would
result in a taxpayer paying a higher tax within the meaning of
Section 3 of Article XIII A of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8000 of the Business and Professions Code is
amended to read:
8000. (a) There is in the Department of Consumer Affairs a Court
Reporters Board of California, which consists of five members, three
of whom shall be public members and two of whom shall be holders of
certificates issued under this chapter who have been actively engaged
as shorthand reporters within this state for at least five years
immediately preceding their appointment.
(b) This section shall remain in effect only until January 1,
2020, and as of that date is repealed.
(c) Notwithstanding any other law, repeal of this section renders
the board subject to review by the appropriate policy committees of
the Legislature.
SEC. 2. Section 8005 of the Business and Professions Code is
amended to read:
8005. (a) The Court Reporters Board of California is charged with
the executive functions necessary for effectuating the purposes of
this chapter. It may appoint committees as it deems necessary or
proper. The board may appoint, prescribe the duties, and fix the
salary of an executive officer. Except as provided by Section 159.5,
the board may also employ other employees as may be necessary,
subject to civil service and other law.
(b) This section shall remain in effect only until January 1,
2020, and as of that date is repealed.
SEC. 3. Section 8030.1 is added to the Business and Professions
Code, to read:
8030.1. The board may use existing resources to undertake efforts
to publicize the availability of the Transcript Reimbursement Fund,
established pursuant to Section 8030.2, to prospective applicants
through appropriate entities serving these applicants, including the
State Bar of California, the California Commission on Access to
Justice, and the Legal Aid Association of California. These efforts
shall be described in the report required by Section 8030.9.
SEC. 4. Section 8030.2 of the Business and Professions Code is
amended to read:
8030.2. (a) To provide shorthand reporting services to low-income
litigants in civil cases, who are unable to otherwise afford those
services, funds generated by fees received by the board pursuant to
subdivision (c) of Section 8031 in excess of funds needed to support
the board's operating budget for the fiscal year in which a transfer
described below is made shall be used by the board for the purpose of
establishing and maintaining a Transcript Reimbursement Fund. The
Transcript Reimbursement Fund shall be funded by a transfer of funds
from the Court Reporters' Fund in the amount of three hundred
thousand dollars ($300,000) annually. The board is authorized to
transfer funds in increments of one hundred thousand dollars
($100,000) for a total of three hundred thousand dollars ($300,000).
Notwithstanding any other provision of this article, a transfer to
the Transcript Reimbursement Fund in excess of the fund balance
established at the beginning of each fiscal year shall not be made by
the board if the transfer will result in the reduction of the
balance of the Court Reporters' Fund to an amount less than six
months' operating budget.
(b) Refunds and unexpended funds that are anticipated to remain in
the Transcript Reimbursement Fund at the end of the fiscal year
shall be considered by the board in establishing the fee assessment
pursuant to Section 8031 so that the assessment shall maintain the
level of funding for the Transcript Reimbursement Fund, as specified
in subdivision (a), in the following fiscal year.
(c) The Transcript Reimbursement Fund is hereby created in the
State Treasury. Notwithstanding Section 13340 of the Government Code,
moneys in the Transcript Reimbursement Fund are continuously
appropriated for the purposes of this chapter.
(d) (1) Applicants who have been reimbursed pursuant to this
chapter for services provided to litigants and who are awarded court
costs or attorney's fees by judgment or by settlement agreement shall
refund the full amount of that reimbursement to the fund within 90
days of receipt of the award or settlement.
(2) An applicant appearing pro se who has been reimbursed for
services provided to litigants under this chapter shall refund the
full amount reimbursed if a court orders the applicant's fee waiver
withdrawn or denied retroactively pursuant to Section 68636 of the
Government Code, within 90 days of the court's order withdrawing or
denying the fee waiver.
(e) Subject to the limitations of this chapter, the board shall
maintain the fund at a level that is sufficient to pay all qualified
claims. To accomplish this objective, the board shall utilize all
refunds, unexpended funds, fees, and any other moneys received by the
board.
(f) Notwithstanding Section 16346 of the Government Code, all
unencumbered funds remaining in the Transcript Reimbursement Fund as
of January 1, 2019, shall be transferred to the Court Reporters'
Fund.
(g) This section shall remain in effect only until January 1,
2020, and as of that date is repealed.
SEC. 5. Section 8030.4 of the Business and Professions Code is
amended to read:
8030.4. As used in this chapter:
(a) "Applicant" means a qualified legal services project,
qualified support center, other qualified project, or pro bono
attorney applying to receive funds from the Transcript Reimbursement
Fund established by this chapter. The term "applicant" includes an
indigent person appearing pro se to represent himself or herself at
any stage of the case and applying to receive funds from the
Transcript Reimbursement Fund established in Section 8030.2.
(b) "Case" means a single legal proceeding from its inception,
through all levels of hearing, trial, and appeal, until its ultimate
conclusion and disposition.
(c) "Certified shorthand reporter" means a shorthand reporter
certified pursuant to Article 3 (commencing with Section 8020)
performing shorthand reporting services pursuant to Section 8017.
(d) "Developmentally Disabled Assistance Act" means the
Developmentally Disabled Assistance and Bill of Rights Act of 1975
(Public Law 94-103), as amended.
(e) "Fee-generating case" means any case or matter that, if
undertaken on behalf of an eligible client by an attorney in private
practice, reasonably may be expected to result in payment of a fee
for legal services from an award to a client, from public funds, or
from an opposing party. A reasonable expectation as to payment of a
legal fee exists wherever a client enters into a contingent fee
agreement with his or her lawyer. If there is no contingent fee
agreement, a case is not considered fee generating if adequate
representation is deemed to be unavailable because of the occurrence
of any of the following circumstances:
(1) If the applicant has determined that referral is not possible
because of any of the following:
(A) The case has been rejected by the local lawyer referral
service, or if there is no such service, by two private attorneys who
have experience in the subject matter of the case.
(B) Neither the referral service nor any lawyer will consider the
case without payment of a consultation fee.
(C) The case is of the type that private attorneys in the area
ordinarily do not accept, or do not accept without prepayment of a
fee.
(D) Emergency circumstances compel immediate action before
referral can be made, but the client is advised that, if appropriate
and consistent with professional responsibility, referral will be
attempted at a later time.
(2) If recovery of damages is not the principal object of the case
and a request for damages is merely ancillary to an action for
equitable or other nonpecuniary relief or inclusion of a counterclaim
requesting damages is necessary for effective defense or because of
applicable rules governing joinder of counterclaims.
(3) If a court appoints an applicant or an employee of an
applicant pursuant to a statute or a court rule or practice of equal
applicability to all attorneys in the jurisdiction.
(4) In any case involving the rights of a claimant under a
public-supported benefit program for which entitlement to benefit is
based on need.
(f) (1) "Indigent person" means any of the following:
(A) A person whose income is 125 percent or less of the current
poverty threshold established by the United States Office of
Management and Budget.
(B) A person who is eligible for supplemental security income.
(C) A person who is eligible for, or receiving, free services
under the federal Older Americans Act or the Developmentally Disabled
Assistance Act.
(D) A person whose income is 75 percent or less of the maximum
level of income for lower income households as defined in Section
50079.5 of the Health and Safety Code, for purposes of a program that
provides legal assistance by an attorney in private practice on a
pro bono basis.
(E) A person who qualifies for a waiver of fees pursuant to
Section 68632 of the Government Code.
(2) For the purposes of this subdivision, the income of a person
who is disabled shall be determined after deducting the costs of
medical and other disability-related special expenses.
(g) "Lawyer referral service" means a lawyer referral program
authorized by the State Bar of California pursuant to the rules of
professional conduct.
(h) "Legal Services Corporation" means the Legal Services
Corporation established under the Legal Services Corporation Act of
1974 (Public Law 93-355), as amended.
(i) "Older Americans Act" means the Older Americans Act of 1965
(Public Law 89-73), as amended.
(j) "Other qualified project" means a nonprofit organization
formed for charitable or other public purposes, that does not receive
funds from the Legal Services Corporation or pursuant to the federal
Older Americans Act, and provides free legal services to indigent
persons.
(k) "Pro bono attorney" means any attorney, law firm, or legal
corporation, licensed to practice law in this state, that undertakes,
without charge to the party, the representation of an indigent
person, referred by a qualified legal services project, qualified
support center, or other qualified project, in a case not considered
to be fee generating, as defined in this chapter.
(l) "Qualified legal services project" means a nonprofit project,
incorporated and operated exclusively in California, that provides as
its primary purpose and function legal services without charge to
indigent persons, has a board of directors or advisory board composed
of both attorneys and consumers of legal services, and provides for
community participation in legal services programming. A legal
services project funded, either in whole or in part, by the Legal
Services Corporation or with the federal Older Americans Act funds is
presumed to be a qualified legal services project for the purposes
of this chapter.
(m) "Qualified support center" means an incorporated nonprofit
legal services center that has an office or offices in California
that provide legal services or technical assistance without charge to
qualified legal services projects and their clients on a multicounty
basis in California. A support center funded, either in whole or in
part, by the Legal Services Corporation or with the federal Older
Americans Act funds is presumed to be a qualified legal services
project for the purposes of this chapter.
(n) "Rules of professional conduct" means those rules adopted by
the State Bar of California pursuant to Sections 6076 and 6077.
(o) "Supplemental security income recipient" means an individual
receiving or eligible to receive payments under Title XVI of the
Social Security Act (Public Law 92-603), as amended, or payment under
Chapter 3 (commencing with Section 12000) of Part 3 of Division 9 of
the Welfare and Institutions Code.
(p) "Vexatious litigant" means a person as defined in subdivision
(b) of Section 391 of the Code of Civil Procedure.
(q) This section shall remain in effect only until January 1,
2020, and as of that date is repealed.
SEC. 6. Section 8030.5 of the Business and Professions Code is
repealed.
SEC. 7. Section 8030.6 of the Business and Professions Code is
amended to read:
8030.6. The board shall disburse funds from the Transcript
Reimbursement Fund for the costs, exclusive of per diem charges by
official reporters, of preparing either an original transcript and
one copy thereof, or where appropriate, a copy of the transcript, of
court or deposition proceedings, or both, incurred as a contractual
obligation between the shorthand reporter and the applicant, for
litigation conducted in California. If there is no deposition
transcript, the board may reimburse the applicant or the certified
shorthand reporter designated in the application for per diem costs.
The rate of per diem for depositions shall not exceed seventy-five
dollars ($75) for one-half day, or one hundred twenty-five dollars
($125) for a full day. If a transcript is ordered within one year of
the date of the deposition, but subsequent to the per diem having
been reimbursed by the Transcript Reimbursement Fund, the amount of
the per diem shall be deducted from the regular customary charges for
a transcript. Reimbursement may be obtained through the following
procedures:
(a) The applicant or certified shorthand reporter shall promptly
submit to the board the certified shorthand reporter's invoice for
transcripts together with the appropriate documentation as is
required by this chapter.
(b) Except as provided in subdivision (c), the board shall
promptly determine if the applicant or the certified shorthand
reporter is entitled to reimbursement under this chapter and shall
make payment as follows:
(1) Regular customary charges for preparation of original
deposition transcripts and one copy thereof, or a copy of the
transcripts.
(2) Regular customary charges for expedited deposition transcripts
up to a maximum of two thousand five hundred dollars ($2,500) per
case.
(3) Regular customary charges for the preparation of original
transcripts and one copy thereof, or a copy of transcripts of court
proceedings.
(4) Regular customary charges for expedited or daily charges for
preparation of original transcripts and one copy thereof or a copy of
transcripts of court proceedings.
(5) The charges shall not include notary or handling fees. The
charges may include actual shipping costs and exhibits, except that
the cost of exhibits may not exceed thirty-five cents ($0.35) each or
a total of thirty-five dollars ($35) per transcript.
(c) The maximum amount reimbursable by the fund under subdivision
(b) shall not exceed twenty thousand dollars ($20,000) per case per
year.
(d) A vexatious litigant shall be ineligible to receive funds from
the Transcript Reimbursement Fund. However, a vexatious litigant may
become eligible to receive funds if he or she is no longer subject
to the provisions of Title 3A of Part 2 of the Code of Civil
Procedure pursuant to Section 391.8 of Code of Civil Procedure.
(e) Total disbursements to cover the costs of providing
transcripts to all applicants appearing pro se pursuant to this
section shall not exceed seventy-five thousand dollars ($75,000)
annually and shall not exceed one thousand five hundred dollars
($1,500) per case.
(f) If entitled, and funds are available, the board shall disburse
the appropriate sum to the applicant or the certified shorthand
reporter when the documentation described in Section 8030.8
accompanies the application. A notice shall be sent to the recipient
requiring the recipient to file a notice with the court in which the
action is pending stating the sum of reimbursement paid pursuant to
this section. The notice filed with the court shall also state that
if the sum is subsequently included in any award of costs made in the
action, that the sum is to be ordered refunded by the applicant to
the Transcript Reimbursement Fund whenever the sum is actually
recovered as costs. The court shall not consider whether payment has
been made from the Transcript Reimbursement Fund in determining the
appropriateness of any award of costs to the parties. The board shall
also notify the applicant that the reimbursed sum has been paid to
the certified shorthand reporter and shall notify the applicant of
the duty to refund any of the sum actually recovered as costs in the
action.
(g) If not entitled, the board shall return a copy of the invoice
to the applicant and the designated certified shorthand reporter
together with a notice stating the grounds for denial.
(h) The board shall complete its actions under this section within
30 days of receipt of the invoice and all required documentation,
including a completed application.
(i) Applications for reimbursements from the fund shall be filed
on a first-come-first-served basis.
(j) Applications for reimbursement that cannot be paid from the
fund due to insufficiency of the fund for that fiscal year shall be
held over until the next fiscal year to be paid out of the renewed
fund. Applications held over shall be given a priority standing in
the next fiscal year.
(k) This section shall remain in effect only until January 1,
2020, and as of that date is repealed.
SEC. 8. Section 8030.8 of the Business and Professions Code is
amended to read:
8030.8. (a) For purposes of this chapter, documentation
accompanying an invoice is sufficient to establish entitlement for
reimbursement from the Transcript Reimbursement Fund if it is filed
with the executive officer on an application form prescribed by the
board that is complete in all respects, and that establishes all of
the following:
(1) The case name and number and that the litigant or litigants
requesting the reimbursement are indigent persons. If the applicant
is an indigent person appearing pro se the application shall be
accompanied by a copy of the fee waiver form approved by the court in
the matter for which the applicant seeks reimbursement.
(2) The applicant is qualified under the provisions of this
chapter.
(3) The case is not a fee-generating case, as defined in Section
8030.4.
(4) The invoice or other documentation shall evidence that the
certified shorthand reporter to be reimbursed was, at the time the
services were rendered, a duly licensed certified shorthand reporter.
(5) The invoice shall be accompanied by a statement, signed by the
applicant, stating that the charges are for transcripts actually
provided as indicated on the invoice.
(6) The applicant has acknowledged, in writing, that as a
condition of entitlement for reimbursement that the applicant agrees
to refund the entire amount disbursed from the Transcript
Reimbursement Fund from any costs or attorney's fees awarded to the
applicant by the court or provided for in any settlement agreement in
the case.
(7) The certified shorthand reporter's invoice for transcripts
shall include separate itemizations of charges claimed, as follows:
(A) Total charges and rates for customary services in preparation
of an original transcript and one copy or a copy of the transcript of
depositions.
(B) Total charges and rates for expedited deposition transcripts.
(C) Total charges and rates in connection with transcription of
court proceedings.
(b) For an applicant claiming to be eligible pursuant to
subdivision (j), (l), or (m) of Section 8030.4, a letter from the
director of the project or center, certifying that the project or
center meets the standards set forth in one of those subdivisions and
that the litigant or litigants are indigent persons, is sufficient
documentation to establish eligibility.
(c) For an applicant claiming to be eligible pursuant to
subdivision (k) of Section 8030.4, a letter certifying that the
applicant meets the requirements of that subdivision, that the case
is not a fee-generating case, as defined in subdivision (e) of
Section 8030.4, and that the litigant or litigants are indigent
persons, together with a letter from the director of a project or
center defined in subdivision (j), (l), or (m) of Section 8030.4
certifying that the litigant or litigants had been referred by that
project or center to the applicant, is sufficient documentation to
establish eligibility.
(d) The applicant may receive reimbursement directly from the
board if the applicant has previously paid the certified shorthand
reporter for transcripts as provided in Section 8030.6. To receive
payment directly, the applicant shall submit, in addition to all
other required documentation, an itemized statement signed by the
certified shorthand reporter performing the services that describes
payment for transcripts in accordance with the requirements of
Section 8030.6.
(e) The board may prescribe appropriate forms to be used by
applicants and certified shorthand reporters to facilitate these
requirements.
(f) This chapter does not restrict the contractual obligation or
payment for services, including, but not limited to, billing the
applicant directly, during the pendency of the claim.
(g) This section shall remain in effect only until January 1,
2020, and as of that date is repealed.
SEC. 9. Section 8030.9 is added to the Business and Professions
Code, to read:
8030.9. (a) The board shall prepare and submit to the
Legislature, on or before November 1, 2018, a report on the condition
of the Court Reporters' Fund, the condition of the Transcript
Reimbursement Fund, and alternative funding sources to cover the
costs associated with transcripts provided to indigent litigants,
including, but not limited to, shorthand reporting services, such as
transcript processing. The report shall include all of the following:
(1) Expenditures and claims relating to this article, including
the initial balance of the Transcript Reimbursement Fund as of
January 1, 2017.
(2) Funds received, including the amount of, and reason for, any
refunds pursuant to Section 8030.2.
(3) Claims received, including the type of case, court involved,
service for which reimbursement was sought, amount paid, and amount
denied, if any, and the reason for denial.
(4) Efforts pursuant to Section 8030.1 to publicize the
availability of the funds in the Transcript Reimbursement Fund to
prospective applicants.
(5) Administrative fees.
(6) An analysis of the condition of the Transcript Reimbursement
Fund, including a five-year projection of its fiscal solvency based
on the licensee fee level for those years.
(7) Whether the amount transferred annually to the Transcript
Reimbursement Fund is sufficient to maintain the fund at a level that
is sufficient to pay all qualified claims.
(A) If the amount transferred annually is not sufficient to pay
all qualified claims, the board shall recommend a level that would be
sufficient.
(B) If the amount transferred annually is not sufficient to pay
all qualified claims, the board shall investigate and recommend
alternative sources of funding, if any.
(b) The report shall be provided using existing resources.
(c) The report prepared pursuant to subdivision (a) shall be
submitted in accordance with Section 9795 of the Government Code.
(d) This section shall remain in effect only until January 1,
2020, and as of that date is repealed.
SEC. 10. Section 8031 of the Business and Professions Code is
amended to read:
8031. The amount of the fees required by this chapter is that
fixed by the board in accordance with the following schedule:
(a) The fee for filing an application for each examination shall
be no more than forty dollars ($40).
(b) The fee for examination and reexamination for the written or
practical part of the examination shall be in an amount fixed by the
board, which shall be equal to the actual cost of preparing,
administering, grading, and analyzing the examination, but shall not
exceed seventy-five dollars ($75) for each separate part, for each
administration.
(c) The initial certificate fee is an amount equal to the renewal
fee in effect on the last regular renewal date before the date on
which the certificate is issued, except that, if the certificate will
expire less than 180 days after its issuance, then the fee is 50
percent of the renewal fee in effect on the last regular renewal date
before the date on which the certificate is issued, or fifty dollars
($50), whichever is greater. The board may, by appropriate
regulation, provide for the waiver or refund of the initial
certificate fee where the certificate is issued less than 45 days
before the date on which it will expire.
(d) By a resolution adopted by the board, a renewal fee may be
established in such amounts and at such times as the board may deem
appropriate to meet its operational expenses and funding
responsibilities as set forth in this chapter. The renewal fee shall
not be more than two hundred fifty dollars ($250) nor less than ten
dollars ($10) annually, with the following exception:
Any person who is employed full time by the State of California as
a hearing reporter and who does not otherwise render shorthand
reporting services for a fee shall be exempt from licensure while in
state employment and shall not be subject to the renewal fee
provisions of this subdivision until 30 days after leaving state
employment. The renewal fee shall, in addition to the amount fixed by
this subdivision, include any unpaid fees required by this section
plus any delinquency fee.
(e) The duplicate certificate fee shall be no greater than ten
dollars ($10).
(f) The penalty for failure to notify the board of a change of
name or address as required by Section 8024.6 shall be no greater
than fifty dollars ($50).