Legislation created new rules for licensed shorthand reporters

At the end of last month, Gov. Jerry Brown signed Assembly Bill 2084 into law. Effective Jan. 1, 2019, the bill adds Section 8050 to the Business and Professions Code to limit the business practices of licensed shorthand reporters in California.

Under existing California law, upon court order, or in certain cases upon request of a party to the action, an official court reporter or reporter pro tempore must take down in shorthand all testimony, objections made, rulings of the court, exceptions taken, arraignments, pleas, sentences, arguments of the attorneys to the jury, and statements and remarks made and oral instructions given by the judge or other judicial officer.

In addition, current state law requires shorthand reporters to be licensed and regulated by the Court Reporters Board of California, which is within the Department of Consumer Affairs. And current law prohibits a person from being appointed to the position of official reporter of any court unless the person has first obtained a license to practice as a certified shorthand reporter from the CRBC.

AB 2084 prohibits an individual or entity that engages in any act that constitutes shorthand reporting, or that employs or contracts with another party to perform shorthand reporting, from engaging in specified business practices. The bill also authorizes the attorney general, a district attorney, a city attorney or the CRBC to bring a civil action for a violation of these provisions and subjects an individual or entity that violates these provisions to a civil fine not exceeding $10,000 per violation.

The new law adds several subdivisions to Section 8050, including an initial statement of legislative intent as follows: "It is the intent of the Legislature to enhance the regulation of licensed shorthand reporters and shorthand reporting corporations pursuant to this section, by imposing specific penalties in addition to other remedies permitted by this chapter that seek to discourage practices that are inconsistent with the integrity and impartiality required of officers of the court and to promote competition based upon the quality and price of shorthand reporting services."

Thereafter, the bill specifies that this new code section applies to an individual or entity that does any of the following: (1) Any act that constitutes shorthand reporting that occurs wholly or partly in this state. (2) Employs, independently contracts with, or recruits a licensed shorthand reporter to report or transcribe deposition testimony in a court proceeding or in a deposition. (3) Contracts with a resident of this state by mail or otherwise that requires either party to perform licensed shorthand reporting wholly or partly in this state. (4) Independently contracts with or is employed by an entity that does any of specified acts.

However, AB 2084 does not apply "to an individual, whether acting as an individual or as an officer, director, or shareholder of a shorthand reporting corporation, as defined in Section 8040, who possesses a valid license, issued pursuant to Section 8018, that may be revoked or suspended by the board, or to a shorthand reporting corporation that is in compliance with Section 8044."

The new section also does not apply "to a court, a party to litigation, an attorney of the party, or a full-time employee of the party or the attorney of the party, who provides or contracts for certified shorthand reporting for purposes related to the litigation."

In addition, the new code section prohibits an individual or entity from doing any of the following: (1) Seek compensation for a transcript that is in violation of the minimum transcript format standards set forth in regulations. (2) Seek compensation for a certified court transcript applying fees other than those set out in statute. (3) Make a transcript available to one party in advance of other parties or provide a service to only one party. (4) Fail to promptly notify a party of a request for preparation of all or any part of a transcript, excerpts, or expedites for one party without the other parties' knowledge.

AB 2084 does not prohibit "a licensed shorthand reporter, shorthand reporting corporation, or an individual or entity from offering or providing long-term or multicase volume discounts or services ancillary to reporting and transcribing a deposition, arbitration, or judicial proceeding in contracts that are subject to laws related to shorthand reporting."