State court reporting companies move forward a bill to block out-of-state competitors

SACRAMENTO — California’s court reporters renewed their battle with out-of-state competitors Tuesday.

The Assembly Judiciary Committee unanimously passed AB 424, a bill sponsored by the California Deposition Reporters Association. It would require any “stenographic transcript” of an audio or video recording of a deposition must be transcribed by a certified shorthand reporter to be admissible in court.

In-state reporting companies have long said competitors from outside California provide lower quality services while undercutting them with volume discounts. Out-of-state companies say the barriers to entering the California market are too high and urge the use of new technologies to make transcripts less expensive.

Both supporters and opponents of the bill acknowledge one central fact: There is a significant shortage of licensed court reporters in California.

“This shortage has caused many attorneys to rely on unlicensed videographers to record their depositions, with a transcript to be prepared at a later date,” said Assemblyman Jesse S. Gabriel, D-Van Nuys, an attorney. “Videotaped depositions are admissible in court under certain conditions, but confusion exists about who may lawfully transcribe recorded depositions,” he said.

Gabriel said his bill would ensure attorneys and litigants receive a quality transcript that will stand up in court. The bill would require reporters transcribing taped depositions be certified by the Court Reporters Board of California.

But Kathy DiLorenzo, director of court reporting with Planet Depos, said the bill does not address the real problem. The company, based in Maryland and Washington, D.C., is listed as officially opposing the bill.

DiLorenzo cited a 2013 report from the National Court Reporters Association estimating that by 2018 California would have 2,320 open court reporter positions. In that time, she said, only 316 new reporters have graduated from certified programs in the state. Also during that period, seven of the 16 court reporting programs in the state have closed while many court reporters are retiring, she said.

“We find no viable solution to reverse the trend in stenographic reporting to recover from the losses that we’ve had,” DiLorenzo said.

Susan Imperial, director of digital reporting with StoryCloud, told the committee the bill presents access to justice issues. The company provides lower-cost video recording and transcripts.

“The economics of the proposed stenographic transcription makes cost-efficiency impossible, thus putting out of reach fair and appropriate representation out of reach for thousands of California’s legal consumers,” Imperial said. She also said California makes certification overly difficult, artificially limiting the supply of new court reporters.