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. Court Reporters Board of California: civil actions: corporations.

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.

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.

This bill would authorize the board to bring a civil action in a superior court to enjoin any person, corporation, or corporation organized under the laws of a state of the United States other than this state, from rendering court reporter services in this state without ever being issued a license by the board or without authorization to render court reporter services in this state by satisfying specified requirements. The bill would authorize the board to request the Attorney General to bring such an action. The bill would require the court to, among other things, imposebegin delete unspecifiedend deletebegin insert specifiedend insert monetary penalties against the person or corporation rendering services without a license or authorization. The bill would also authorize the court to, among other things, 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 make it a misdemeanor for any person or corporation to knowingly render court reporter services in this state without ever being issued a license or authorized to render those services.

By creating a new 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: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 8041 is added to the Business and
2Professions Code
, to read:

3

8041.  

(a) In addition to any other authority or remedy, the
4board may bring a civil action in a superior court to enjoin any
5person, corporation, or corporation organized under the laws of a
6state of the United States other than this state, from rendering court
7reporter services in this state without ever being issued a license
8by the board or authorization to render court reporter services in
9this state by satisfying the requirements of this article. The board
P3    1may request the Attorney General to bring an action pursuant to
2this subdivision.

3(b) If a civil action is brought pursuant to subdivision (a), the
4court, in addition to any other remedy authorized by law, shall
5impose a penalty of not less thanbegin delete ____ dollars ($____)end deletebegin insert one
6thousand dollars ($1,000)end insert
and no more than begin delete ____ dollars ($____)end delete
7begin insert two thousand end insertbegin insertfive hundred dollars ($2,500)end insert per day against the
8person or corporation rendering services without a license or
9authorization, and the court may also order restitution and the
10return of any payments made to the person or corporation.

11(c) In an action brought pursuant to subdivision (a), the court
12may also enjoin a person or corporation from taking any action
13that would otherwise constitute a violation of any statute or
14regulation of the board pertaining to impartiality, including, but
15not limited to, Section 2475 of Title 16 of the Code of Regulations,
16and the court may impose a penalty of up tobegin delete ____ dollars ($____)end delete
17begin insert two thousand end insertbegin insertfive hundred dollars ($2,500)end insert and restitution for any
18acts undertaken by any person or corporation rendering court
19reporter services in this state. In determining the amount of the
20penalty, the court shall take into consideration the frequency of
21the violations and the impact of those violations, including a
22violation of Section 2475 of Title 16 of the Code of Regulations.

23(d) The court may designate that any transcript prepared by any
24person or corporation subject to an action brought under this section
25does not qualify as a certified transcript. However, the person or
26corporation shall be required to reimburse the certified shorthand
27reporter for the production of the transcript in accordance with
28transcript fees pursuant to existing law.

29(e) It shall be a misdemeanor for any person or corporation to
30knowingly render court reporter services in this state without ever
31being issued a license by the board or being authorized to render
32court reporter services in this state pursuant to this article.

33(f) The court shall award reasonable investigation and
34enforcement costs to the board or Attorney General responsible
35for filing an action pursuant to subdivision (a) and may also award
36a portion of any unallocated penalties collected pursuant to
37subdivision (c) to be used for future investigation and enforcement
38of this section by the board and the Attorney General. Any such
39award of penalties to the board shall be deposited in the Court
P4    1Reporters’ Fund and these penalties shall be subject to
2appropriation by the Legislature.

3(g) begin deleteNothing in this end deletebegin insertThis end insertsection shallbegin insert notend insert be construed to change,
4limit, or alter any existing authority of the board, including existing
5injunctive authority.

6

SEC. 2.  

No reimbursement is required by this act pursuant to
7Section 6 of Article XIII B of the California Constitution because
8the only costs that may be incurred by a local agency or school
9district will be incurred because this act creates a new crime or
10infraction, eliminates a crime or infraction, or changes the penalty
11for a crime or infraction, within the meaning of Section 17556 of
12the Government Code, or changes the definition of a crime within
13the meaning of Section 6 of Article XIII B of the California
14Constitution.



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