BILL ANALYSIS Ó
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: SB 270 Hearing Date: April 20,
2015
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|Author: |Mendoza |
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|Version: |April 14, 2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Mark Mendoza |
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Subject: Court Reporters Board of California: civil actions:
corporations.
SUMMARY: Authorizes the Court Reporters Board of California to take
court action against an out-of-state individual and corporation
who unlawfully renders court reporting services in California by
providing injunctive relief and penalties for acts in violation
of the CRB's professional and ethical rules for certified
shorthand reporters.
Existing law:
1) Provides for the certification and regulation of short hand
reporters and for the regulation of shorthand reporting
corporations by the Court Reporters Board (CRB) within the
Department of Consumer Affairs (DCA). (Business and
Professions Code (BPC) § 8000 et seq.)
2) Provides that no person shall engage in the practice of
shorthand reporting, as defined, unless that person is the
holder of a certificate in full force and effect issued by
the CRB. (BPC § 8016)
3) Defines shorthand reporting as the making, by means of
written symbols or abbreviations in shorthand or machine
shorthand writing, or verbatim record of any oral court
proceeding, deposition, court ordered hearing or arbitration,
or proceeding before any grand jury, referee, or court
SB 270 (Mendoza) Page 2
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commissioner and the accurate transcription thereof. (BPC §
8017)
4) Specifies that any violation of the Shorthand Reporters Act
(Act) is a misdemeanor.
(BPC § 8019)
5) Provides that CRB, in addition to its authority to take
disciplinary action, shall have the authority to issue
administrative citations or assess fines for the violation of
any rules and regulations adopted by the CRB. (BPC § 8027.5)
6) Provides that 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
(CSR) are in compliance with specified provisions of law.
(BPC § 8040)
7) Specifies that it constitutes unprofessional conduct and a
violation of the Act for any licensed person to violate,
attempt to violate, assist in or abet the violations of, or
conspire to violate any specified provisions of law,
including any other specified provisions of law. (BPC §
8042)
8) Provides that a shorthand reporting corporation shall not do
or fail to do any act the doing of which or the failure to do
which would constitute unprofessional conduct under and
statute, rule or regulation which pertains to shorthand
reporters or shorthand reporting. (BPC § 8046)
9) Requires that a shorthand reporting corporation in conducting
its practice shall observe and be bound by such statutes,
rules and regulations to the same extent as a person holding
a license. (BPC § 8046)
10)Provides for professional standards of practice for certified
shorthand reporters including that no CSR may enter into,
arrange, or participate in a relationship that compromises
the impartiality of the CSR, including, but not limited to, a
relationship in which compensation for reporting services is
based upon the outcome of the proceeding, or in which a gift,
SB 270 (Mendoza) Page 3
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incentive, reward or anything of value is provided by a
person or entity which is associated with the proceeding
being reported. (California Code of Regulations, Title 16 §
2475)
This bill:
1) Authorizes the CRB to bring a civil action in 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 CRB or
authorization to render court reporter services in this state
by satisfying the requirements of the Act; and provides that
the CRB may request that the Attorney General to bring this
action.
2) Authorizes the court, in addition to any other remedy
authorized by law, to impose a $1000 to $2500 monetary
penalty against the person or corporation rendering services
without a license or authorization, and that the court may
also order restitution and the return of any payments made to
the person or corporation.
3) Authorizes the court to also enjoin a person or corporation
from taking any action that would otherwise constitute a
violation of any statute or regulation of the CRB pertaining
to the impartiality of the CSR, including, but not limited
to, the violation of the professional standards of practice
of the CSR and provides that the court may impose a $2500
monetary penalty and restitution for any acts undertaken by
any person or corporation rendering court reporter services
in this state.
4) Provides that the court may designate that any transcript
prepared by any person or corporation subject to any court
action brought by the CRB does not qualify as a certified
transcript but requires that CSR be reimbursed for the
production of the transcript in accordance with specified
transcript fees.
5) Provides that it shall be a misdemeanor for any person or
corporation to knowingly render court reporting services in
this state without ever being issued a license by the CRB or
SB 270 (Mendoza) Page 4
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being authorized to render court reporter services in this
state.
6) Permits reasonable investigation and enforcement costs to the
CRB or Attorney General responsible for filing the court
action.
7) Makes other technical and conforming changes.
FISCAL
EFFECT: Unknown. This bill has been keyed "fiscal" by
Legislative Counsel.
COMMENTS:
1. Purpose. The bill is sponsored by the California Court
Reporters Association . According to the Author, "The CRB has
relied on sections from both the B&P Code and Corporation
Code in order to piece together their jurisdiction over
entities that have never been licensed to render court
reporting services in our state.
Entities who are incorporated under the law of another state,
and who are not licensed in California, have stated, in the
past, that they are outside of the board's jurisdiction
because they are not licensed by the board in this state.
The board has found that these entities have also violated
gift giving rules, jeopardizing the impartiality of the court
reporting profession.
SB 270 clarifies the boards existing authority over entities
rendering court reporting services in the state by explicitly
providing remedies for those entities that are in violation
of California's professional standards. This clear authority
will ensure that all entities rendering court reporting
services in California are following the professional
standards required in our state."
2. Court Reporters Board of California vs. U.S. Legal. In 2010,
the CRB found that U.S. Legal, a Texas based corporation, was
providing court reporting services in California and offering
incentives and/or gifts in exchange for depositions, a
violation of California's professional standards. U.S. Legal
argued that the Board lacked jurisdiction to issue citations.
SB 270 (Mendoza) Page 5
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In the subsequent 2012 case, Court Reporters Board of
California v. U.S. Legal, the Court agreed with U.S. Legal
and found that the CRB has no authority to impose sanctions
and fines against U.S. Legal for noncompliance with
anti-gift-giving regulations. The Court stated that "there is
no statutory authorization for such a power, and this Court
cannot simply invent one." According to the Court, although
U.S. Legal was rendering court reporting services in
California and was in violation of gift-giving regulations,
there was no explicit authority in current statute
authorizing the board to impose sanctions or fines against
U.S. Legal.
NOTE: Double-referral to Senate Committee on Rules.
SUPPORT AND OPPOSITION:
Support: Orange County Superior Court Reporters Association
(OCSCRA)
Opposition: None on file as of April 14, 2015.
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