Amended in Assembly June 30, 2016

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

Senate BillNo. 270


Introduced by Senator Mendoza

February 19, 2015


An act to add Section 8041 to the Business and Professions Code, relating to court reporters.

LEGISLATIVE COUNSEL’S DIGEST

SB 270, as amended, Mendoza. begin deleteCourt Reporters Board of California: corporations: arrangement of shorthand end deletebegin insertShorthand end insertreporting 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.begin delete 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 makes it a crime to violate any of the laws that apply to shorthand reporters.end deletebegin insert Existing law also provides for the formation or registration of various legal entities transacting business in this state.end insert

begin delete

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.

end delete
begin delete

Because a violation of these requirements would be a crime, the bill would impose a state-mandated local program.

end delete
begin delete

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.

end delete
begin delete

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

end delete
begin insert

This bill would authorize the Attorney General, the Director of Consumer Affairs, and the Court Reporters Board of California to seek injunctive relief or issue citations, fines, and other penalties against corporations, persons, or entities, whether foreign or domestic, that for a fee or other financial consideration, offer, offer to arrange for, render, or provide the services of a certified shorthand reporter, for violations of provisions governing oral depositions inside this state imposed by the Civil Discovery Act, Moscone-Knox Professional Corporation Act, and laws governing the practice of shorthand reporting.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteyes end deletebegin insertnoend 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) The Attorney General, the Director of Consumer
4Affairs, and the board may seek injunctive relief or issue citations,
5fines, and other penalties against corporations, persons, or entities,
6whether foreign or domestic, that for a fee or other financial
7consideration, offer, offer to arrange for, render, or provide the
8services of a certified shorthand reporter, for violations of the
9following:

10
(1) Chapter 9 of Title 4 of Part 4 (commencing with Section
112025.010) of the Code of Civil Procedure.

12
(2) Part 4 of Division 3 of Title 1 (commencing with Section
1313400) of the Corporations Code.

14
(3) This chapter (commencing with Section 8000).

15
(4) Section 2475 of Title 16 of the California Code of
16Regulations, as that section read on January 1, 2016.

17
(b) Nothing in this section shall be construed to authorize the
18provision of shorthand reporting services by a foreign corporation
19in violation of subdivision (c) of Section 13401 of the Corporations
20Code or to authorize violations of Section 8044.

end insert
begin delete
21

SECTION 1.  

Section 8041 is added to the Business and
22Professions Code
, to read:

23

8041.  

(a) Any domestic or foreign corporation that offers to
24arrange for or arranges for the services of shorthand reporting as
25defined in Section 8017, whether through an employee or an
26independent contractor, shall comply with all of the following:

27(1) Act without bias toward or prejudice against any parties and
28their attorneys.

29(2) Not enter into, arrange, or participate in a relationship that
30compromises the impartiality of the certified shorthand reporter,
P4    1including, but not limited to, a relationship in which compensation
2for reporting services is based upon the outcome of the proceeding.

3(3) (A) Except as specified in subparagraph (B), not directly
4or indirectly give or receive any gift, incentive, reward, or anything
5of value to or from any person or entity associated with a
6proceeding being reported, including, but not limited to, an attorney
7or an attorney’s family members, employees of an attorney or an
8employee’s family members, a law firm, clients, witnesses,
9insurers, underwriters, or any agents or representatives thereof.

10(B) A domestic or foreign corporation may:

11(i) Receive compensation for the arrangement of shorthand
12reporting services.

13(ii) Give or receive items that do not exceed $100 in the
14aggregate for any combination of items given or received per
15calendar year to or from an attorney or an attorney’s family
16members, employees of an attorney or an employee’s family
17members, a law firm, clients, witnesses, insurers, underwriters, or
18any agents or representatives thereof.

19(iii) Provide services without charge or compensation for which
20the certified shorthand reporter reasonably expects to be reimbursed
21from the Transcript Reimbursement Fund, established in Section
228030.2, or otherwise for an indigent person as defined in Section
238030.4.

24(b) The Attorney General, the Director of Consumer Affairs,
25and the board have jurisdiction to enforce the provisions of this
26section.

27

SEC. 2.  

No reimbursement is required by this act pursuant to
28Section 6 of Article XIII B of the California Constitution because
29the only costs that may be incurred by a local agency or school
30district will be incurred because this act creates a new crime or
31infraction, eliminates a crime or infraction, or changes the penalty
32for a crime or infraction, within the meaning of Section 17556 of
33the Government Code, or changes the definition of a crime within
34the meaning of Section 6 of Article XIII B of the California
35Constitution.

end delete


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