BILL ANALYSIS                                                                                                                                                                                                    �







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        |Hearing Date:April 4, 2011         |Bill No:SB                         |
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                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                          Senator Curren D. Price, Jr., Chair
                                           

                          Bill No:        SB 671Author:Price
                  As Introduced:     February 18, 2011   Fiscal:  Yes

        
        SUBJECT:  Shorthand reporters.

        SUMMARY:  Requires the Court Reporters Board of California to 
        establish continuing education requirements for renewal of a shorthand 
        reporter certificate.

        Existing law:
        
        1) Certifies and regulates some 7,700 certified shorthand reporters 
           (CSRs) and regulates 16 shorthand reporting schools by the Court 
           Reporters Board of California (Board) within the Department of 
           Consumer Affairs (DCA).

        2) Provides that a CSR certificate is valid for one year, and may be 
           renewed by applying for the certificate renewal, paying the renewal 
           fee, and notifying the Board of any substantially related criminal 
           convictions or of any disciplinary action taken by any regulatory 
           agency against the licensee. (Business and Professions Code (BPC) � 
           8024)

        3) General provisions of the Business and Professions Code require the 
           director of DCA by regulation to develop guidelines for continuing 
           education programs within DCA. (BPC � 166)

        This bill:

        1) Requires the Board, by July 1, 2012, to establish minimum 
           continuing education requirements for renewal of a CSR certificate.

        2) Requires, beginning July 1, 2012, a CSR renewing a certificate must 





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           certify to the Board completion of the minimum continuing education 
           requirements.

        3) Requires the Board to establish a procedure for approving 
           continuing education course providers, and requires continuing 
           education providers to comply with procedures established by the 
           Board.

        4) Authorizes the Board to establish exceptions to the continuing 
           education requirements for individuals who cannot meet the 
           continuing education requirements for reasons of health, military 
           service, or undue hardship.

        5) Requires the continuing education requirements to fully comply with 
           the guidelines for mandatory continuing education established by 
           DCA.

        6) Authorizes the Board to adopt regulations to implement the 
           continuing education provisions.
        
        FISCAL EFFECT:  Unknown.  This bill has been keyed "fiscal" by 
        Legislative Counsel.

        COMMENTS:
        
        1. Purpose.  This bill is sponsored by  California Court Reporters 
           Association  and  Deposition Reporters Association  (Sponsors) to 
           require the Board to establish minimum approved continuing 
           education requirements for renewal of all shorthand reporter (both 
           court reporters and "freelance" reporters) certificates on or 
           before July 1, 2012.

           According to the Sponsors, there are currently no provisions which 
           ensure the consumer that the CSR is gaining or maintaining the 
           education necessary to stay updated on the rules, regulations and 
           statutes that affect the way they practice shorthand reporting.  
           The Sponsors believe that continuing education will provide 
           confidence to the citizens of the state that the verbatim record is 
           and will continue to be held to the highest possible standards.  
           Mandating continuing education requirements will ensure that all 
           rules, regulations and statutes specific to the CSR are known by 
           and followed by the CSR, according to the Sponsors.

        2. Background.  Certified shorthand reporters, commonly known as court 
           reporters, typically engage in one of two types of shorthand 
           reporting practice.  "Official" reporters are individuals who work 





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           as employees of the court system, and "freelance" reporters are 
           individuals hired privately by court reporting businesses and firms 
           or attorneys to report depositions.  In order to obtain licensure, 
           both types of reporters must qualify by attending one of the 16 
           California schools of court reporting authorized by the Board and 
           passing two written exams and a performance exam.  There are 
           currently approximately 7,700 certified shorthand reporter 
           licensees statewide.  The CSR certificate is issued for a one-year 
           period, expiring on the last day of the birth month of the 
           licensee.

        3. Judicial Counsel Continuing Education Requirement.  Beginning 
           January 1, 2007, the Judicial Counsel of California adopted a 
           continuing education requirement for all personnel  employed   by   the  
            Court  , including court reporters (California Rules of Court, Title 
           10, Division 2, Chapter 8, Rule 10.451, ff.).  The Rule requires 
           each employee to complete 8 hours of continuing education every 2 
           years.  The Judicial Council has listed education as a vital 
           component in achieving the goals of its Long-Range Strategic Plan, 
           which including access, fairness, and diversity; branch 
           independence and accountability; modernization of management and 
           administration; and quality of justice and service to the public.

        4. Continuing Education for Court Reporters:  A Legislative Sunset 
           Review Issue.  The issue of continuing education has been raised 
           when reviewing the Board under the sunset review process.  In 1996, 
           the Joint Legislative Sunset Review Committee (Joint Committee) 
           noted that the Board had been instrumental in attempting to provide 
           leadership in the area of continuing education for the profession.  
           At that time, there had been much discussion about the pros and 
           cons of such requirements, but the Board had deleted a continuing 
           education proposal from its 1994 legislation when it learned that 
           the Governor would not approve it.

        At that time the Board stated, that many in the profession believe 
           that the Board's pre-license testing system keeps the standard of 
           entry at an appropriate level, and the intensity demanded in the 
           day-to-day requirements in this occupation drives the individual 
           licensees to seek and find the educational training requirements 
           necessary on their own initiative.  However, others believe that 
           the use of electronic information processing and the speed with 
           which technologies are changing, are putting more pressure on the 
           profession to keep the standard of performance at its highest 
           level.

        Ultimately the Joint Committee's recommendation did not include 





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           pursuing continuing education.  The issue was again raised in the 
           2004/2005 review of the Board, however, the Joint Committee did not 
           recommend establishing a continuing education requirement.
        
           The current sunset date for the Board is January 1, 2013.  This 
           would make the Board subject to the oversight hearings by the 
           Business, Professions and Economic Development Committee in the 
           winter of 2011-2012, and require legislation to be carried to 
           extend the Board in 2012.

        5. Prior Legislation.  This bill is essentially identical to AB 2189 
           (Karnette) from 2008, which would have required the Court Reporters 
           Board of California to establish continuing education requirements 
           by July 1, 2009.  That bill was vetoed by the Governor stating that 
           the continuing education requirements impose an additional burden 
           on the regulated profession without justifying a compelling need.

        6. Arguments in Support.  One of the Sponsors of this bill,  California 
           Court Reporters Association  (CCRA), states that currently there are 
           no structures in place that ensure that the CSR is gaining or 
           maintaining the education necessary to stay updated on the rules, 
           regulations and statutes affecting the practice of shorthand 
           reporting.  The recently-adopted Judicial Council rules mandating 
           continuing education for all staff, including court reporters does 
           not specifically mandate that the official court reporter obtain 
           continuing education specifically as it relates to the job of court 
           reporting according to CCRA.  

           CCRA further states that in the world of ever-changing technology, 
           the consumer of the products and services of the CSR expect to be 
           offered and provided the latest technological advances that are 
           available; i.e. real time reporting, Internet text streaming, 
           transcript repositories, exhibit scanning and linking to 
           transcripts, and much more.  The job of a CSR has really morphed 
           into more of an information manager, an important and integral 
           component to the litigation process, according to CCRA. 

           Concurring with the arguments above, the  Deposition Reporters 
           Association of California  (DRA) argues further that deposition 
           reporting is one of the most critical parts of our system of 
           resolving disputes.  An accurate written record of who said what in 
           court is essential if the outcome of judicial proceeding is to be 
           accepted by the litigants and the public as non-arbitrary, fair, 
           and credible, and against a backdrop, where a single error can 
           translate into the distorted and arbitrary administration of 
           justice, deposition reporting professionals absolutely must, not 





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           just at the time of licensure but throughout their careers, 
           maintain the highest possible level of ethics and competence to 
           protect consumers and our system of justice.

           DRA suggests that continuing education as well as vigorous 
           enforcement are the two tools regulatory boards use to ensure a 
           sustained level of quality in licensed professionals throughout 
           their careers.

           DRA additionally argues that although official reporters who work 
           in courtrooms must currently complete ongoing continuing education, 
           deposition reporters must ensure the integrity and accuracy of the 
           vital written record while working in a private commercial setting, 
           even though they are hired by one of the parties in often hotly 
           contested litigation. 

         7. Policy Considerations  .  In establishing a continuing education 
           requirement for CSRs, the Sponsors may wish to address several 
           significant issues:

            a)    It is unclear whether the continuing education requirement 
              of the bill is in addition to or the same as the continuing 
              education requirement established by the Judicial Council for 
              official reporters.  The Sponsors may wish to clarify this 
              issue, and if necessary offer amendments to make clarification.

            b)    The bill is silent regarding the nature of the continuing 
              education that the Board is to require.  Continuing education 
              courses should be relative to the practice of a CSR and should 
              promote continuing competency of the practitioner.  The Sponsors 
              may wish to clarify this issue, and if necessary offer 
              amendments to make clarification.

            c)    The bill is silent on how many hours of continuing education 
              would be required for each annual license renewal period.  Is it 
              the intention of the Sponsors to defer to the Board in 
              establishing the number of hours required, or should the minimum 
              number of hours be established in statute?

            d)    The bill requires the Board to establish requirements for 
              approving continuing education providers; but does not provide 
              for any fees for approving continuing education providers.  It 
              is unclear whether the Board has the current funding and 
              staffing necessary to assume this new responsibility.  The 
              Sponsors should consider establishing fees for those entities 
              seeking Board approval to be continuing education providers, in 





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              order that other licensing fees do not subsidize the continuing 
              education program.

         8. Policy Concern  :  Is Continuing Education Necessary?  The arguments 
           for the bill focus on informing CSRs about changes in laws and 
           regulation, court procedures, and technological advances in the 
           profession.  However, the proponents should clearly document the 
           harm that consumers encounter without a mandatory continuing 
           education requirement for licensees.

        A mandatory continuing education requirement would generate 
           unspecified costs to licensees and generate corresponding revenues 
           to continuing education providers, which typically are educational 
           institutions and professional associations.  The Board would also 
           incur costs in establishing continuing education standards and 
           tracking licensee compliance.  In light of the low number of 
           complaints by consumers and enforcement actions against licensees, 
           what is the demonstrated need to mandate continuing education?  The 
           proponents should address the justification for, cost, and 
           availability of such continuing education before going forward with 
           a continuing education proposal.

        It may be useful to draw a distinction between continuing education 
           that is undertaken voluntarily by conscientious, motivated 
           practitioners, versus continuing education that is undertaken 
           involuntarily by unwilling or unmotivated practitioners.  While 
           continuing education seems intuitively to be highly beneficial to 
           licensees and the consumer public, there is no empirical evidence 
           that demonstrates a clear conjunction between a continuing 
           education mandate and improved practitioner competence.

        
        SUPPORT AND OPPOSITION:
        
         Support:   

        California Court Reporters Association (Sponsor)
        Deposition Reporters Association (Sponsor)

         Opposition:   

        None received as of March 30, 2011.



        Consultant:G. V. Ayers





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