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
          
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          |Version: June 30, 2016          |Policy Vote: B., P. & E.D. 7 -  |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Brendan McCarthy    |
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          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  
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           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  
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           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.




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