BILL ANALYSIS                                                                                                                                                                                                    �







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        |Hearing Date:April 25, 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 Amended:April 14, 2011Fiscal:  Yes

        
        SUBJECT:  Shorthand reporters.  Continuing education requirements.

        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) Establishes various fees which may be charged by the Board, 
           including fees for examinations, initial and renewal CSR 
           certificates. (BPC � 8031)

        4) General provisions of the Business and Professions Code require the 
           director of DCA by regulation to develop guidelines for continuing 
           education programs by DCA boards and bureaus to ensure that 
           mandatory continuing education is used as a means to create a more 
           competent licensing population. (BPC � 166)






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        This bill:

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

        2) Requires that, no earlier than six months after the effective date 
           of the regulations, a CSR renewing a certificate must certify to 
           the Board completion of the minimum continuing education 
           requirements.

        3) Requires the Board to ensure that the required continuing education 
           is relevant to the practice of shorthand reporting.

        4) 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.

        5) Authorizes the Board to establish a fee for providers of continuing 
           education courses.

        6) 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.

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

        8) Additionally, 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.






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           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 
           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 





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           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 
           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, due  
           primarily to the unwillingness of the Schwarzenegger Administration 
           to establish a continuing education requirement.
        
        5. Prior Legislation.   AB 2189  (Karnette) from 2008, was substantially 
           the same as this bill and would have required the Board 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.  In sponsoring the 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. 





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           Also sponsoring the bill, the  Deposition Reporters Association of 
           California  (DRA) additionally argues 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 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. 

           Many arguments for the bill focus on informing CSRs about changes 
           in laws and regulation, court procedures, and technological 
           advances in the profession.  In many cases, continuing professional 
           development and education will be undertaken voluntarily by 
           conscientious, motivated licensees on their own who are motivated 
           to stay on top of their profession.  Yet, the proponents of the 
           bill point out that typically deposition reporters practice in 
           isolated settings, apart from other CSRs and may not have ready 
           access on their own to information regarding changing practices, 
           technological advances, and changes in the law.

        7. Regulatory Issues to be Addressed by the Board.  In implementing 
           the continuing education requirement for CSRs as provided in the 
           bill, there are several issues that Board will need to consider, 
           including:

            a)    Whether the continuing education requirements established by 
              the Board will be in addition to or the same as the continuing 
              education requirement established by the Judicial Council for 
              official reporters.  In other words, will a licensed CSR who is 





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              employed by the court and who must complete the continuing 
              education required by the Judicial Council be required to 
              fulfill as separate continuing education requirement to renew 
              their license from the Board?  While it seems appropriate that 
              the two continuing education requirements work together, it is 
              recommended that the specific nature and extent of how they work 
              together be left to the Board to address through its regulatory 
              process.

            b)    The bill broadly requires the Board to ensure that the 
              required continuing education is relevant to the practice of 
              shorthand reporting.  In addition, general DCA guidelines 
              require boards to ensure that mandatory continuing education is 
              used as a means to create a more competent licensing population. 
               These provisions will guide the Board in establishing the 
              regulations, so that irrelevant courses will not be allowed for 
              continuing education. 

            c)    The bill does not specify the number of hours of continuing 
              education would be required for each annual license renewal 
              period.  As stated above, the Judicial Council requirement for 
              official reporters is to complete eight hours of continuing 
              education every two years.  The Board will need to determine an 
              appropriate number of hours through its regulatory process.

            d)    The bill authorizes the Board to establish a fee for 
              providers of continuing education courses.  This provision, 
              which authorizes but does not require, the Board to require the 
              fee was added to the bill out of concern about the Board's 
              funding and staffing necessary to assume the new responsibility 
              of approving continuing education providers.  In addition, the 
              bill currently does not establish a maximum fee level.  An 
              appropriate level will need to be amended in as the bill goes 
              forward through the legislative process. 


        SUPPORT AND OPPOSITION:
        
         Support:   

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

         Opposition:   

        None received as of April 20, 2011





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        Consultant:G. V. Ayers