BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2192| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2192 Author: Salas (D), et al. Amended: 8/15/16 in Senate Vote: 27 SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 7-1, 6/27/16 AYES: Hill, Block, Gaines, Galgiani, Hernandez, Jackson, Mendoza NOES: Bates NO VOTE RECORDED: Wieckowski SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/11/16 AYES: Lara, Beall, Hill, McGuire, Mendoza NOES: Bates, Nielsen ASSEMBLY FLOOR: 80-0, 5/31/16 - See last page for vote SUBJECT: Court Reporters Board of California: Shorthand reporters fees: Transcript Reimbursement Fund SOURCE: Author DIGEST: This bill extends the regulatory authority of the Court Reporters Board of California (CRB or Board) and its authority to appoint an executive officer (EO) until January 1, 2020; and extends the sunset date for the Transcription Reimbursement Fund to January 1, 2020. ANALYSIS: AB 2192 Page 2 Existing law: 1)Establishes the CRB within the Department of Consumer Affairs (DCA); specifies that the CRB consists of three public members and two certified shorthand reporters (CSRs); extends the operation of the CRB until January 1, 2017; and, subjects the CRB to review by the appropriate policy committees of the Legislature. (Business and Professions Code (BPC) § 8000 et seq.) 2)Provides that the CRB may appoint, prescribe the duties, and fix the salary of an EO and extends the operation of the EO until January 1, 2017. (BPC § 8005) 3)Authorizes the CRB to administer the Transcript Reimbursement Fund (TRF). (BPC Section 8008(g)) 4)Defines the practice of shorthand reporting as the making, by means of written symbols or abbreviations in shorthand or machine shorthand writing, of a verbatim record of any oral court proceeding, deposition, court ordered hearing or arbitration, or proceeding before any grand jury, referee, or court commissioner and the accurate transcription thereof. (BPC § 8017) 5)Defines a "CSR" as a person who holds a valid certificate as a shorthand reporter, provides that no other person, firm, or corporation may assume or use the title "CSR". (BPC § 8018) 6)Requires all fees and revenue collected by the CRB to be reported to the State Controller and be deposited with the State Treasurer to be placed in the Court Reporters' Fund, which fund is continued in existence in the State Treasury and is appropriated. (BPC § 8030) This bill: AB 2192 Page 3 1)Extends the sunset date for the CRB to January 1, 2020. 2)Extends the sunset date for its EO to January 1, 2020. 3)Reauthorizes the Board to use existing resources to undertake efforts to publicize the availability of the TRF 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. 4)Authorizes the CRB to transfer funds in increments of $100,000 of the $300,000 allocated for the TRF. 5)Establishes the Pro Se Program as a permanent program within the TRF and increases the amount of money disbursed to the Pro Se Program, within the annual $300,000 TRF amount, from $30,000 to $75,000. 6)Extends the TRF Sunset date to January 1, 2020. 7)Requires that each reimbursement for all applicants appearing pro se not exceed $1,500 per case. 8)Requires the CRB to 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 TRF Fund, and alternative funding sources to cover the costs associated with transcripts provided indigent litigants, including, but not limited to, shorthand reporting services, such as transcript processing. 9)Raises the renewal fee limit to be assessed by the CRB from $125 to $250. AB 2192 Page 4 Background According to the author, "AB 2192 extends the sunset date of the Court Reporters Board of California from January 1, 2017 to January 1, 2020. Without a sunset extension, the Board will lose its statutory authority to license and regulate court reporters. Additionally, AB 2192 extends and reforms the Transcript Reimbursement Fund, which makes transcript services available to indigent litigants who would otherwise not have access to them." Financial Solvency. The CRB's license fee reached the statutory limit of $125 in July 2010. This fee cap has not changed since the CRB was established in 1951 and is no longer viable today. As such, the CRB is facing a structural deficit, which will lead to a decreasing reserve of 4.7 months at the end of Fiscal Year 2016-17. Last year, the CRB attempted to secure an author for a bill to raise the fee cap to $250, but was unsuccessful. While there is no statutory mandatory reserve level for the Board, the TRF cannot be funded when the Board reaches less than six months of operating expenses in reserve. In addition, the DCA Budget Office has historically recommended that smaller programs maintain a contingency fund slightly above the standard three to six months of reserve. Maintaining an adequate reserve provides for a reasonable contingency fund so that the Board has the fiscal resources to absorb any unforeseen costs, such as costly enforcement actions or other unexpected client service costs. Transcript Reimbursement Fund. In 1981, the profession initiated legislation that created the TRF to fund payment of court transcripts for indigent litigants in civil matters. By law, a minimum of $300,000 of the Board's total revenue must go to the TRF annually on July 1. The TRF consists of the Pro Bono program and the Pro Per program that differ in who may apply and how much monetary assistance is available to individual cases and all cases overall. The total amount of annual funding for AB 2192 Page 5 the Pro Per program is $30,000, which is quickly exhausted each year as there are enough unpaid claims at the end of the year to appropriate the full $30,000 at the beginning of the next year, creating an ever-growing backlog of applications. The remaining $270,000 in the TRF is allocated to the Pro Bono program. This program runs on a fiscal year basis and typically does not expend the full amount. Since its inception in 1981, the TRF has had a sunset date, which the Legislature has continued to extend. The TRF is currently scheduled to be repealed on January 1, 2017, and unless legislation is passed extending that date, all unencumbered funds remaining in the TRF, as of that date, will be transferred to the Court Reporters Fund. The Pro Per program began as a pilot project to expand the TRF for more indigent litigants. This project is also scheduled to be repealed on January 1, 2017, unless legislation extends that date. Given the high demand for transcript reimbursements, the author believes a report will provide insight into how to better serve indigent litigants and maintain a financially solvent TRF account. FISCAL EFFECT: Appropriation: Yes Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee, this bill will incur ongoing costs for the continued operation of the CRB, ongoing costs for the continued operation of the TRF, and an increase in fee revenues from the fee increase. SUPPORT: (Verified8/11/16) Affordable Housing Advocates AB 2192 Page 6 Bet Tzedek Legal Services California Court Reporters Association California Rural legal Assistance Foundation California Women's Law Center Coalition of California Welfare Rights Organizations Court Reporters Board of California Disability Rights California Family Violence Appellate Project Impact Fund Justice and Diversity Center of the State Bar Legal Aid Association of California Legal Aid of Marin Legal Aid of Sonoma County Legal Aid Society of Orange County OneJustice Public Advocates Public Counsel Western Center for Law and Poverty OPPOSITION: (Verified8/11/16) None received ARGUMENTS IN SUPPORT: The CRB writes in support of this bill, noting that "Court reporters play an essential role in our judicial system as a neutral third party who creates verbatim transcripts of proceedings in a timely fashion, thus ensuring the appeal rights of all litigants. Under the watchful eye of the Board, court reporters do their best, and, should any fall short, the Board is available to step in and correct the issue and work to ensure it does not happen again." ASSEMBLY FLOOR: 80-0, 5/31/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, 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, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, AB 2192 Page 7 Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104 8/15/16 20:10:16 **** END ****