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 Bill No. 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 begin delete state by satisfying specified requirements. end delete begin insert state. end insert The bill would authorize the board to request the Attorney General to bring such an action. The bill would require the court to impose specified monetary penalties against the person or corporation rendering services without a license or authorization. The bill would also authorize the court to order restitution and enjoin a person or corporation from taking any action constituting a violation of any law pertaining to impartiality, as provided. begin delete 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. end delete

begin delete

By creating a new 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

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete yes end delete begin insert no end insert .

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) In addition to any other authority or remedy, the
board may begin insert pursuant to this section end insert 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 begin insert without end insert authorization to
render court reporter services in this begin delete state by satisfying the
requirements of this article. end delete begin insert state. end insert The board may request the
Attorney General to bring an action pursuant to this subdivision.

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

(c) In an action brought pursuant to subdivision (a), the court begin insert ,
in addition to any other authority or remedy, end insert may also enjoin a
person or corporation from taking any action that would otherwise
constitute a violation of any statute or regulation of the board
pertaining to impartiality, including, but not limited to, Section
2475 of Title 16 of the California Code of Regulations, and the
court begin insert , in addition to any other penalty provided for by statute or
regulation pursuant to this section, end insert may impose a penalty of up
to two thousand five hundred dollars ($2,500) and order restitution
for any acts undertaken by any person or corporation rendering
court reporter services in this state. In determining the amount of
the penalty begin insert pursuant to this section end insert , the court shall take into
consideration the frequency of the violations and the impact of
those violations, including a violation of Section 2475 of Title 16
of the California Code of Regulations.

begin delete

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

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

(f)

end delete

begin insert (d) end insert  If the board or Attorney General is granted an injunction
pursuant to subdivision (a), the court shall award reasonable
investigation and enforcement costs and may also award a portion
of any unallocated penalties collected pursuant to subdivision (c)
to be used for future investigation and enforcement of this section
by the board and the Attorney General. Any such award of penalties
to the board shall be deposited in the Court Reporters’ Fund and
these penalties shall be subject to appropriation by the Legislature.

begin delete

(g)

end delete

begin insert (e) end insert  This section shall not be construed to change, limit, or alter
any existing authority of the board, including existing injunctive
authority.

begin delete

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.

end delete