BILL NUMBER: SB 270 AMENDED
BILL TEXT
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
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. Court Reporters Board of
California: corporations: arrangement of shorthand
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 makes it a crime to violate any of the laws that apply
to shorthand reporters. Existing law also provides for
the formation or registration of various legal entities transacting
business in this state.
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.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
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) The Attorney General, the Director of Consumer Affairs,
and the board may 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 the
following:
(1) Chapter 9 of Title 4 of Part 4 (commencing with Section
2025.010) of the Code of Civil Procedure.
(2) Part 4 of Division 3 of Title 1 (commencing with Section
13400) of the Corporations Code.
(3) This chapter (commencing with Section 8000).
(4) Section 2475 of Title 16 of the California Code of
Regulations, as that section read on January 1, 2016.
(b) Nothing in this section shall be construed to authorize the
provision of shorthand reporting services by a foreign corporation in
violation of subdivision (c) of Section 13401 of the Corporations
Code or to authorize violations of Section 8044.
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.
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.