BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2192 (Salas) - Court Reporters Board of California: Shorthand reporters fees: Transcript Reimbursement Fund ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 30, 2016 |Policy Vote: B., P. & E.D. 7 - | | | 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 2192 would extend the operation of the Court Reporters Board until January 1, 2020. The bill would increase the license renewal fee for court reporters to $250. Fiscal Impact: Ongoing costs of $1.2 million per year for the continued operation of the Court Reporters Board (Court Reporters Fund). Operations of the Board are fully funded with license fee revenues. Ongoing costs of $100,000 to $300,000 per year for the continued operation of the Transcript Reimbursement Fund. This fund is supported by transfers from the Court Reporters Fund. Current law requires $300,000 to be transferred annually for the purposes of the fund. However, in the budget year, only $100,000 in expenditures is projected. AB 2192 (Salas) Page 1 of ? Increased fee revenues of about $870,000 per year due to the increase in the renewal fee from $125 to $250 (Court Reporters Fund). Background: Under current law, the Court Reporters Board licenses court reporters. Court reporters work in state courts (official reporters) and act as deposition recorders (freelance reporters). The Board licenses about 6,800 court reporters. Current law sets the license renewal fee at $125. Under current law, the Board is required to transfer $300,000 per year from the Court Reporters Fund (the main special fund supporting the Board's operations) to the Transcript Reimbursement Fund. The Transcript Reimbursement Fund is used to pay for the costs of providing free transcripts of court proceedings for indigent litigants. Current law sunsets the operation of the Court Reporters Board on January 1, 2017. Current law requires any unencumbered funds remaining in the Transcript Reimbursement Fund to be transferred back to the Court Reporters Fund on January 1, 2017. Proposed Law: AB 2192 would extend the operation of the Court Reporters Board until January 1, 2020. The bill would increase the license renewal fee for court reporters to $250. Specific provisions of the bill would: Extend the operation of the Court Reporters Board and the Board's authority to appoint an executive officer until January 1, 2020; Authorize the Board to transfer funds from the Court Reporters Fund to the Transcript Reimbursement Fund in $100,000 increments (of the $300,000 total amount required to be transferred); Increase the maximum amount of funding that is available to "pro se" applicants (indigent litigants representing themselves in court) from $30,000 per year to $75,000; Extend the operation of the Transcript Reimbursement Fund program until January 1, 2020; AB 2192 (Salas) Page 2 of ? Require the Board to submit a report to the Legislature by November 1, 2018 on the condition of the Court Reporters Fund and the Transcript Reimbursement Fund, with specified information on revenues, expenditures, and other issues; Increase the license renewal fee from $125 to $250. Related Legislation: This bill is one of several sunset review bills authored by the chairs of the Senate and Assembly Business and Professions Committees to review and extend the operation of licensing boards and bureaus within the Department of Consumer Affairs. Staff Comments: The Court Reporters Fund has a structural deficit. Revenues in the current year are projected to be about $930,000 whereas expenditures are projected to be about $1.2 million. The balance in the Court Reporters Fund has declined in current years and will not be able to support the operation of the Board at current expenditure levels in future years. Current law requires license fee revenues to be transferred from the Court Reporters Fund to the Transcript Reimbursement Fund. Because this bill would increase renewal fees paid by licensees and the operation of the Transcript Reimbursement Fund is not related to the licensing or enforcement of licensing requirements on court reporters, this bill will result in a tax increase. -- END --