Amended in Senate April 6, 2015

Senate BillNo. 270


Introduced by Senator Mendoza

February 19, 2015


begin delete An act to amend Sections 8000 and 8005 of the Business and Professions Code, relating to court reporters. end deletebegin insertAn act to add Section 8041 to the Business and Professions Code, relating to court reporters.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 270, as amended, Mendoza. Court Reportersbegin delete Board: membership.end deletebegin insert Board of California: civil actions: corporations.end insert

Existing law provides for the certification and regulation of shorthand reporters and for the regulation of shorthand reportingbegin delete corporations. Existing law establishes aend deletebegin insert corporations by theend insert Court Reporters Board ofbegin delete California, which is responsible for regulating the practice of those engaged in shorthand reporting. Existing law charges the Court Reporters Board with the executive functions necessary to effectuate the purposes of the provisions regulating the shorthand reporting profession. Under existing law, the provisions establishing the board and specifying its executive functions will become inoperative on January 1, 2017.end deletebegin insert California.end insert

begin delete

This bill would extend the operation of the above-described provisions relating to the Court Reporters Board until January 1, 2023.

end delete
begin insert

Under existing law, a shorthand reporting corporation is a corporation authorized to render professional services, as defined, as long as that corporation and all of its shareholders, officers, directors, and employees rendering professional services who are certified shorthand reporters are in compliance with specified provisions of law. Existing law defines a foreign professional corporation as a corporation organized under the laws of a state of the United States other than this state that is engaged in a profession of a type for which there is specified authorization for the performance of professional services by a foreign professional corporation. Under existing law, it constitutes unprofessional conduct and a violation of these provisions for any licensed person to violate, attempt to violate, assist in or abet the violation of, or conspire to violate any specified provisions of law, including regulations adopted thereunder. Existing law prohibits a shorthand reporting corporation from not doing or failing to do any act the doing of which or the failure to do which would constitute unprofessional conduct under any statute, rule, or regulation pertaining to shorthand reporters or shorthand reporting.

end insert
begin insert

This bill would authorize the board to bring a civil action in a superior court to enjoin any person, corporation, or corporation organized under the laws of a state of the United States other than this state, from rendering court reporter services in this state without ever being issued a license by the board or without authorization to render court reporter services in this state by satisfying specified requirements. The bill would authorize the board to request the Attorney General to bring such an action. The bill would require the court to, among other things, impose unspecified monetary penalties against the person or corporation rendering services without a license or authorization. The bill would also authorize the court to, among other things, order restitution and enjoin a person or corporation from taking any action constituting a violation of any law pertaining to impartiality, as provided. The bill would make it a misdemeanor for any person or corporation to knowingly render court reporter services in this state without ever being issued a license or authorized to render those services.

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By creating a new crime, the bill would impose a state-mandated local program.

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begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 8041 is added to the end insertbegin insertBusiness and
2Professions Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert8041.end insert  

(a) In addition to any other authority or remedy, the
4board may bring a civil action in a superior court to enjoin any
5person, corporation, or corporation organized under the laws of
6a state of the United States other than this state, from rendering
7court reporter services in this state without ever being issued a
8license by the board or authorization to render court reporter
9services in this state by satisfying the requirements of this article.
10The board may request the Attorney General to bring an action
11pursuant to this subdivision.

12(b) If a civil action is brought pursuant to subdivision (a), the
13court, in addition to any other remedy authorized by law, shall
14impose a penalty of not less than ____ dollars ($____) and no
15more than ____ dollars ($____) per day against the person or
16corporation rendering services without a license or authorization,
17and the court may also order restitution and the return of any
18payments made to the person or corporation.

19(c) In an action brought pursuant to subdivision (a), the court
20may also enjoin a person or corporation from taking any action
21that would otherwise constitute a violation of any statute or
22regulation of the board pertaining to impartiality, including, but
23not limited to, Section 2475 of Title 16 of the Code of Regulations,
24and the court may impose a penalty of up to ____ dollars ($____)
25and restitution for any acts undertaken by any person or
26corporation rendering court reporter services in this state. In
27determining the amount of the penalty, the court shall take into
28consideration the frequency of the violations and the impact of
29those violations, including a violation of Section 2475 of Title 16
30of the Code of Regulations.

31(d) The court may designate that any transcript prepared by
32any person or corporation subject to an action brought under this
33section does not qualify as a certified transcript. However, the
34person or corporation shall be required to reimburse the certified
35shorthand reporter for the production of the transcript in
36accordance with transcript fees pursuant to existing law.

37(e) It shall be a misdemeanor for any person or corporation to
38knowingly render court reporter services in this state without ever
P4    1being issued a license by the board or being authorized to render
2court reporter services in this state pursuant to this article.

3(f) The court shall award reasonable investigation and
4enforcement costs to the board or Attorney General responsible
5for filing an action pursuant to subdivision (a) and may also award
6a portion of any unallocated penalties collected pursuant to
7subdivision (c) to be used for future investigation and enforcement
8of this section by the board and the Attorney General. Any such
9award of penalties to the board shall be deposited in the Court
10Reporters’ Fund and these penalties shall be subject to
11appropriation by the Legislature.

12(g) Nothing in this section shall be construed to change, limit,
13or alter any existing authority of the board, including existing
14injunctive authority.

end insert
15begin insert

begin insertSEC. 2.end insert  

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begin insert

No reimbursement is required by this act pursuant to
16Section 6 of Article XIII B of the California Constitution because
17the only costs that may be incurred by a local agency or school
18district will be incurred because this act creates a new crime or
19infraction, eliminates a crime or infraction, or changes the penalty
20for a crime or infraction, within the meaning of Section 17556 of
21the Government Code, or changes the definition of a crime within
22the meaning of Section 6 of Article XIII B of the California
23Constitution.

end insert
begin delete
24

SECTION 1.  

Section 8000 of the Business and Professions
25Code
is amended to read:

26

8000.  

(a) There is in the Department of Consumer Affairs a
27Court Reporters Board of California, which consists of five
28members, three of whom shall be public members and two of
29whom shall be holders of certificates issued under this chapter
30who have been actively engaged as shorthand reporters within this
31state for at least five years immediately preceding their
32appointment.

33(b) This section shall remain in effect only until January 1, 2023,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before January 1, 2023, deletes or extends that date.

36(c) Notwithstanding any other provision of law, the repeal of
37this section renders the board subject to review by the appropriate
38policy committees of the Legislature.

39

SEC. 2.  

Section 8005 of the Business and Professions Code is
40amended to read:

P5    1

8005.  

The Court Reporters Board of California is charged with
2the executive functions necessary for effectuating the purposes of
3this chapter. It may appoint committees as it deems necessary or
4proper. The board may appoint, prescribe the duties, and fix the
5salary of an executive officer. Except as provided by Section 159.5,
6the board may also employ other employees as may be necessary,
7subject to civil service and other provisions of law.

8This section shall remain in effect only until January 1, 2023,
9and as of that date is repealed, unless a later enacted statute, that
10is enacted before January 1, 2023, deletes or extends that date.

end delete


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