BILL NUMBER: SB 270 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 22, 2016
AMENDED IN ASSEMBLY JUNE 14, 2016
AMENDED IN ASSEMBLY JUNE 23, 2015
AMENDED IN SENATE MAY 5, 2015
AMENDED IN SENATE APRIL 14, 2015
AMENDED IN SENATE APRIL 6, 2015
INTRODUCED BY Senator Mendoza
FEBRUARY 19, 2015
An act to amend Sections 8031 and 8040 of, and to add
Sections 8040.1, 8040.2, and add Section 8041
to, to the Business and Professions
Code, relating to court reporters, and making an
appropriation therefor. reporters.
LEGISLATIVE COUNSEL'S DIGEST
SB 270, as amended, Mendoza. Court Reporters Board of California:
civil actions: registered corporations.
corporations: arrangement of shorthand reporting services.
Existing law provides for the certification and regulation of
shorthand reporters and for the regulation of shorthand reporting
corporations by the Court Reporters Board of California within
the Department of Consumer Affairs. The department is under the
control of the Director of Consumer Affairs .
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.
Existing law establishes the Court Reporter's Fund and provides that
all fees received by the board are to be deposited into that fund,
which is continuously appropriated, as specified. Existing
law makes it a misdemeanor crime to
violate any of the laws that apply to shorthand reporters.
This bill, on and after January 1, 2018, would authorize a
corporation organized under the laws of this state or another state
that is qualified to do business in this state to arrange for
services of shorthand reporting only if it is registered with the
board and requires the board, not later than January 1, 2018, to
implement a registration process, as specified. The bill would
authorize the board to suspend, revoke, deny, or take other
disciplinary action against a registered corporation if the
registered corporation or any of its officers, agents, or employees
perform any act that is considered unprofessional conduct when
arranging for any services of shorthand reporting, as described. The
bill, on and after January 1, 2018, would make it unlawful for any
corporation, whether foreign or domestic, to arrange for services of
shorthand reporting in this state, as described, or to advertise or
put out any sign, card, or other device that may indicate to members
of the public that it is entitled to arrange for shorthand reporting
services without first registering with the board. The bill, on and
after January 1, 2018, would require a registered corporation to
appoint an individual in this state to act as a designated
representative and would require the designated representative to
hold a valid certificate as a certified court reporter in this state
or to pass an examination administered by the board, as specified.
The bill would require the board to issue a certificate to the
designated representative and would authorize the board to revoke the
certification of the designated representative for any violation of
the laws, regulations, or rules applicable to a licensee. The bill
would authorize the board to bring a civil action in a superior court
to enjoin any person or corporation whether organized under the laws
of this state or of another state of the United States from
rendering court reporter services in this state without being
registered with the board or without authorization to arrange for
court reporter services in this state. The bill would authorize the
board to request the Attorney General to bring such an action. The
bill would require the court to impose specified monetary penalties
against the person or corporation rendering services without a
registration or authorization. The bill would also authorize the
court to 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 authorize the board to
charge a fee for a corporation to register with the board as fixed by
the board and prohibits the fee from exceeding the reasonable
regulatory cost of preparing and administering the registration
process. By authorizing a new fee to be charged by the board that
will be deposited into a continuously appropriated fund, this bill
would make an appropriation. By making it unlawful for any
corporation to arrange for services of shorthand reporting in this
state or to advertise, as specified, without registering with the
board, this bill would expand an existing crime and, therefore,
impose a state-mandated local program.
This bill would require any domestic or foreign corporation
offering to arrange for or arranging for the services of shorthand
reporting to comply with specified requirements, including, but not
limited to, acting without bias toward or prejudice against any
parties and their attorneys and not entering into, arranging, or
participating in a relationship that compromises the impartiality of
the certified shorthand reporter, as provided. The bill would also
authorize such a corporation to, among other things, receive
compensation for the arrangement of shorthand reporting services and
provide services without charge or compensation under specified
circumstances. The bill would provide the Attorney General, the
Director, and the board with jurisdiction to enforce these
provisions.
Because a violation of these requirements would be a crime, the
bill would impose a state-mandated local program.
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.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: yes no
. Fiscal committee: yes. State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8041 is added to the
Business and Professions Code , to read:
8041. (a) Any domestic or foreign corporation that offers to
arrange for or arranges for the services of shorthand reporting as
defined in Section 8017, whether through an employee or an
independent contractor, shall comply with all of the following:
(1) Act without bias toward or prejudice against any parties and
their attorneys.
(2) Not enter into, arrange, or participate in a relationship that
compromises the impartiality of the certified shorthand reporter,
including, but not limited to, a relationship in which compensation
for reporting services is based upon the outcome of the proceeding.
(3) (A) Except as specified in subparagraph (B), not directly or
indirectly give or receive any gift, incentive, reward, or anything
of value to or from any person or entity associated with a proceeding
being reported, including, but not limited to, an attorney or an
attorney's family members, employees of an attorney or an employee's
family members, a law firm, clients, witnesses, insurers,
underwriters, or any agents or representatives thereof.
(B) A domestic or foreign corporation may:
(i) Receive compensation for the arrangement of shorthand
reporting services.
(ii) Give or receive items that do not exceed $100 in the
aggregate for any combination of items given or received per calendar
year to or from an attorney or an attorney's family members,
employees of an attorney or an employee's family members, a law firm,
clients, witnesses, insurers, underwriters, or any agents or
representatives thereof.
(iii) Provide services without charge or compensation for which
the certified shorthand reporter reasonably expects to be reimbursed
from the Transcript Reimbursement Fund, established in Section
8030.2, or otherwise for an indigent person as defined in Section
8030.4.
(b) The Attorney General, the Director of Consumer Affairs, and
the board have jurisdiction to enforce the provisions of this
section.
SECTION 1. Section 8031 of the Business and
Professions Code is amended to read:
8031. The amount of the fees required by this chapter is that
fixed by the board in accordance with the following schedule:
(a) The fee for filing an application for each examination shall
be no more than forty dollars ($40).
(b) The fee for examination and reexamination for the written or
practical part of the examination shall be in an amount fixed by the
board, which shall be equal to the actual cost of preparing,
administering, grading, and analyzing the examination, but shall not
exceed seventy-five dollars ($75) for each separate part, for each
administration.
(c) The initial certificate fee is an amount equal to the renewal
fee in effect on the last regular renewal date before the date on
which the certificate is issued, except that, if the certificate will
expire less than 180 days after its issuance, then the fee is 50
percent of the renewal fee in effect on the last regular renewal date
before the date on which the certificate is issued, or fifty dollars
($50), whichever is greater. The board may, by appropriate
regulation, provide for the waiver or refund of the initial
certificate fee where the certificate is issued less than 45 days
before the date on which it will expire.
(d) By a resolution adopted by the board, a renewal fee may be
established in such amounts and at such times as the board may deem
appropriate to meet its operational expenses and funding
responsibilities as set forth in this chapter. The renewal fee shall
not be more than one hundred twenty-five dollars ($125) nor less than
ten dollars ($10) annually, with the following exception:
Any person who is employed full time by the State of California as
a hearing reporter and who does not otherwise render shorthand
reporting services for a fee shall be exempt from licensure while in
state employment and shall not be subject to the renewal fee
provisions of this subdivision until 30 days after leaving state
employment. The renewal fee shall, in addition to the amount fixed by
this subdivision, include any unpaid fees required by this section
plus any delinquency fee.
(e) The duplicate certificate fee shall be no greater than ten
dollars ($10).
(f) The penalty for failure to notify the board of a change of
name or address as required by Section 8024.6 shall be no greater
than fifty dollars ($50).
(g) The fee for a corporation to register with the board pursuant
to Section 8040 shall be in an amount fixed by the board not to
exceed the reasonable regulatory cost of preparing and administering
the registration process.
SEC. 2. Section 8040 of the Business and
Professions Code is amended to read:
8040. (a) A shorthand reporting corporation is a corporation that
is authorized to render professional services, as defined in Section
13401 of the Corporations Code, 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 the Moscone-Knox Professional Corporation Act, this
article, and all other statutes and regulations now or hereafter
enacted or adopted pertaining to that corporation and the conduct of
its officers. With respect to a shorthand reporting corporation, the
governmental agency referred to in the Moscone-Knox Professional
Corporation Act is the Court Reporters Board of California.
(b) (1) On and after January 1, 2018, any corporation organized
under the laws of this state or under the law of another state of the
United States that is qualified to do business in this state may
arrange for services of shorthand reporting in this state, without
complying with the requirements of Section 8044, if that corporation
is registered with the board. For purposes of this section, Section
8040.1, and 8040.2, any corporation, including but not limited to a
limited liability company, a partnership, or other entity, that
satisfies the requirements of this section, Section 8040.1, and
8040.2 for registration with the board shall be referred to as a
"registered corporation."
(2) On and after January 1, 2018, the board shall implement a
registration process pursuant to Section 8040.1.
(3) Any law or regulation applicable to a licensee shall also be
applicable to a registered corporation arranging for the services of
shorthand reporting, as described in subdivision (c), in this state.
(4) This section shall not be construed to authorize a person
without a license issued pursuant to this chapter to practice
shorthand reporting, as defined in Section 8017.
(c) A corporation or other entity is considered to be arranging
for services of shorthand reporting in this state if it does any of
the following:
(1) Coordinates or performs any act that would otherwise
constitute an obligation owed by a certified court reporter in the
state to the parties in any reported proceeding.
(2) Determines the amount billed to the parties in a proceeding
for any court reporting services performed in this state.
(3) Recruits a resident of this state to provide court reporting
services or shorthand reporting services.
(4) Performs any services related to the duties of a certified
court reporter.
(d) A registration issued under this section may be suspended,
revoked, or denied and other disciplinary action may be imposed if
the registered corporation or any of its officers, agents, or
employees perform any act that constitutes unprofessional conduct
when arranging for any services of shorthand reporting, as described
in subdivision (c). Unprofessional conduct, includes, but is not
limited to, an act contrary to the professional standards concerning
confidentiality, impartiality, filing and retention of notes, the
notification, availability, delivery, execution, and certification of
transcripts, or any law related to the duties of a certified court
reporter.
SEC. 3. Section 8040.1 is added to the Business
and Professions Code, to read:
8040.1. (a) On and after January 1, 2018, it shall be unlawful
for any corporation, whether foreign or domestic, to arrange for
services of shorthand reporting, as described in subdivision (c) of
Section 8040, or to advertise or put out any sign, card, or other
device that may indicate to the public that it is entitled to arrange
for services of shorthand reporting without first registering with
the board.
(b) A corporation registering with the board shall file an
application with the board on a form prescribed by the board.
(c) The application shall include, but not be limited to, all of
the following:
(1) The federal identification number of the applicant.
(2) The name of the individual who will be appointed as a
designated representative of the applicant pursuant to Section 8040.2
and any other identifying information as required by the board.
(3) Any required fee.
(4) All information required to complete the application.
(d) An applicant shall not be required to hold a certificate as a
certified court reporter in order to register with the board pursuant
to this section.
SEC. 4. Section 8040.2 is added to the Business
and Professions Code, to read:
8040.2. (a) On and after January 1, 2018, each registered
corporation arranging for services of shorthand reporting, as
described in subdivision (c) of Section 8040, shall appoint an
individual in this state to act as a designated representative. The
designated representative shall hold a valid certificate as a
certified court reporter in this state or pass an examination
administered by the board pursuant to subdivision (b).
(b) By January 1, 2018, the board shall administer an examination
to determine whether a designated representative of a registered
corporation understands the ethics and professional conduct required
for the practice of court reporting in this state, the laws and
regulations applicable to court reporting in this state, and the
obligations owed by a certified court reporter in this state to the
parties in any reported proceeding.
(c) The board shall issue a certificate to the designated
representative.
(d) The board may revoke the certification of the designated
representative for any violation of the laws or regulations
applicable to a licensee under this chapter. If the certificate of an
appointed designated representative is revoked, the registered
corporation that appointed that designated representative shall be in
violation of this section.
SEC. 5. Section 8041 is added to the Business
and Professions Code, to read:
8041. (a) In addition to any other authority or remedy, the board
may pursuant to this section bring a civil action in a superior
court to enjoin any person or corporation whether organized under the
laws of this state or a state of the United States other than this
state from arranging for court reporter services, as described in
subdivision (c) of Section 8040, in this state without being
registered with the board or without authorization to arrange for
court reporter services, as described in subdivision (c) of Section
8040, in this state. The board may request the Attorney General to
bring an action pursuant to this subdivision.
(b) If a civil action is brought pursuant to subdivision (a), the
court, in addition to any other remedy authorized by law, shall
impose a penalty of not less than one thousand dollars ($1,000) and
no more than two thousand five hundred dollars ($2,500) per day
against the person or corporation arranging for services without a
registration or authorization, and the court, in addition to any
other restitution provided by law, may also order restitution and the
return of any payments made to the person or corporation.
(c) In an action brought pursuant to subdivision (a), the court,
in addition to any other authority or remedy, may also enjoin a
person or corporation from taking any action that would otherwise
constitute a violation of any law or regulation of the board
pertaining to impartiality, including, but not limited to, Section
2475 of Title 16 of the California Code of Regulations, and the
court, in addition to any other penalty provided for by law or
regulation pursuant to this section, may impose a penalty of up to
two thousand five hundred dollars ($2,500) and order restitution for
any acts undertaken by any person or corporation rendering court
reporter services in this state. In determining the amount of the
penalty pursuant to this section, the court shall take into
consideration the frequency of the violations and the impact of those
violations, including a violation of Section 2475 of Title 16 of the
California Code of Regulations.
(d) If the board or Attorney General is granted an injunction
pursuant to subdivision (a), the court shall award reasonable
investigation and enforcement costs and may also award a portion of
any unallocated penalties collected pursuant to subdivision (c) to be
used for future investigation and enforcement of this section by the
board and the Attorney General. Any such award of penalties to the
board shall be deposited in the Court Reporters' Fund and these
penalties shall be subject to appropriation by the Legislature.
(e) This section shall not be construed to change, limit, or alter
any existing authority of the board, including existing injunctive
authority.
SEC. 6. SEC. 2. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.