BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 2192|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   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:  










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          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:







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          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.







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          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  







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          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







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          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,  







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            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


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