77R11333 E                           
         By Solis                                              H.B. No. 3179
         Substitute the following for H.B. No. 3179:
         By Solis                                          C.S.H.B. No. 3179
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to court reporters and court reporting firms.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  The heading of Chapter 52, Government Code, is
 1-5     amended to read as follows:
 1-6         CHAPTER 52.  COURT REPORTERS AND SHORTHAND REPORTING FIRMS
 1-7           SECTION 2.  Section 52.001, Government Code, is amended by
 1-8     adding Subdivisions (6) and (7) to read as follows:
 1-9                 (6)  "Shorthand reporting firm," "court reporting
1-10     firm," and "affiliate office" mean an entity wholly or partly in
1-11     the business of providing court reporting or other related services
1-12     in this state.
1-13                 (7)  "Registration" means a registration issued by the
1-14     board.
1-15           SECTION 3.  Section 52.002, Government Code, is amended to
1-16     read as follows:
1-17           Sec. 52.002.  RULES.  The supreme court may adopt rules
1-18     consistent with this chapter, including rules governing:
1-19                 (1)  the certification and conduct of official and
1-20     deputy court reporters and shorthand reporters; and
1-21                 (2)  the registration and conduct of court reporting
1-22     and shorthand reporting firms.
1-23           SECTION 4. Section 52.011(a), Government Code, is amended to
1-24     read as follows:
 2-1           (a)  The Court Reporters Certification Board is appointed by
 2-2     the supreme court and is composed of:
 2-3                 (1)  one active district judge who serves as chairman;
 2-4                 (2)  two active attorneys licensed in this state who
 2-5     have been practicing members of the State Bar for more than the
 2-6     five years immediately preceding their appointment to the board;
 2-7                 (3)  two [three] active official court reporters who
 2-8     have practiced shorthand reporting in this state for more than the
 2-9     five years immediately preceding their appointment to the board;
2-10                 (4)  two [three] active certified shorthand reporters
2-11     who work on a free-lance basis and who have practiced shorthand
2-12     reporting for more than the five years immediately preceding their
2-13     appointment to the board;  [and]
2-14                 (5)  one representative of a shorthand reporting firm
2-15     that is not owned by a certified shorthand reporter and that has
2-16     operated as a shorthand reporting firm in this state for more than
2-17     the three years immediately preceding the representative's
2-18     appointment to the board;
2-19                 (6)  one representative of a shorthand reporting firm
2-20     that is owned by a certified shorthand reporter and that has
2-21     operated as a shorthand reporting firm in this state for more than
2-22     the three years immediately preceding the representative's
2-23     appointment to the board; and
2-24                 (7)  four [three] public members who are citizens of
2-25     this state.
2-26           SECTION 5.  Section 52.012(b), Government Code, is amended to
2-27     read as follows:
 3-1           (b)  Seven [Five] members of the board constitute a quorum.
 3-2           SECTION 6.  Sections 52.013(a) and (c), Government Code, are
 3-3     amended to read as follows:
 3-4           (a)  The board shall:
 3-5                 (1)  administer and enforce this chapter;
 3-6                 (2)  administer the examination prescribed by Section
 3-7     52.023;
 3-8                 (3) [(2)]  set the amount of each fee prescribed by
 3-9     this chapter, subject to the approval of the supreme court;
3-10                 (4) [(3)]  charge and collect the fees prescribed by
3-11     this chapter; [and]
3-12                 (5) [(4)]  determine the qualifications and pass on the
3-13     eligibility of each person applying for certification or
3-14     recertification;
3-15                 (6)  maintain a record of each court reporting firm or
3-16     affiliate office that registers with the board as required by this
3-17     chapter; and
3-18                 (7)  issue a registration to each court reporting firm
3-19     or affiliate office that registers with the board.
3-20           (c)  The board shall maintain:
3-21                 (1)  a complete record of each board proceeding;
3-22                 (2)  a complete record of each certification issued,
3-23     renewed, or revoked; [and]
3-24                 (3)  a complete record of each registration issued,
3-25     renewed, or revoked; and
3-26                 (4)  a detailed statement of receipts and
3-27     disbursements.
 4-1           SECTION 7.  The heading to Subchapter C, Chapter 52,
 4-2     Government Code, is amended to read as follows:
 4-3                SUBCHAPTER C.  CERTIFICATION AND REGISTRATION
 4-4           SECTION 8.  The heading to Section 52.021, Government Code,
 4-5     is amended to read as follows:
 4-6           Sec. 52.021.  CERTIFICATION OF REPORTERS.
 4-7           SECTION 9. Sections 52.021(g), (h), and (i), Government Code,
 4-8     are amended to read as follows:
 4-9           (g)  The board may enforce this section by seeking an
4-10     injunction or by filing a complaint against a person who is not
4-11     certified by the supreme court in the district court of the county
4-12     in which that person resides or Travis County.  Said action for an
4-13     injunction shall be in addition to any other action, proceeding, or
4-14     remedy authorized by law.  The board shall be represented by the
4-15     attorney general and/or the county or district attorney of this
4-16     state, or counsel designated and empowered by the board.
4-17           [(h)  A court reporting firm shall register with the board by
4-18     completing an application in a form adopted by the board.]
4-19           [(i)  Rules applicable to a court reporter are also
4-20     applicable to a court reporting firm.  The board may enforce this
4-21     subsection by assessing a reasonable fee against a court reporting
4-22     firm.]
4-23           SECTION 10. Subchapter C, Chapter 52, Government Code, is
4-24     amended by adding Section 52.0255 to read as follows:
4-25           Sec. 52.0255.  FIRM REGISTRATION. (a)  A shorthand reporting
4-26     firm may not assume or use the title or designation "court
4-27     recording firm," "court reporting firm," or "shorthand reporting
 5-1     firm" or any abbreviation, title, designation, words, letters,
 5-2     sign, card, or device tending to indicate that the firm is a court
 5-3     reporting firm or shorthand reporting firm, or offer services as a
 5-4     court reporting firm or shorthand reporting firm, unless the firm
 5-5     and its affiliate offices are registered with the board on a form
 5-6     prescribed by the board as required by this chapter.
 5-7           (b)  The board may enforce this section against a firm, its
 5-8     affiliate office, or both, if the firm or affiliate office is not
 5-9     registered with the board, by seeking an injunction or by filing a
5-10     complaint in the district court of the county in which the firm or
5-11     affiliate office is located or in Travis County.  An action for an
5-12     injunction is in addition to any other action, proceeding, or
5-13     remedy authorized by law.  The attorney general, a county or
5-14     district attorney of this state, or counsel designated and
5-15     empowered by the board shall represent the board.
5-16           SECTION 11.  Sections 52.026 and 52.027, Government Code, are
5-17     amended to read as follows:
5-18           Sec. 52.026.  CERTIFICATION AND REGISTRATION FEE AND RENEWAL.
5-19     (a)  A person who receives certification as a shorthand reporter or
5-20     a shorthand reporting firm or affiliate office that registers with
5-21     the board must pay the initial [certification] fee and any other
5-22     required fee before receiving the certification or registration.
5-23           (b)  A certification or registration expires at 12:01 a.m. on
5-24     January 1 following the second anniversary of the date on which it
5-25     was issued unless the certification or registration is renewed.
5-26     Thereafter, the certification or registration expires at 12:01 a.m.
5-27     of each second January 1 unless renewed.
 6-1           (c)  To renew a certification or registration, the shorthand
 6-2     reporter or shorthand reporting firm or affiliate office must pay
 6-3     the renewal fee on or before the expiration date of the
 6-4     certification or registration.
 6-5           (d)  The board may reinstate an expired certification or
 6-6     registration if, not later than the 120th day after the date of
 6-7     expiration, the applicant pays the renewal fee and any penalty fee.
 6-8     The reinstatement dates from the original date of expiration.
 6-9           (e)  The board may reinstate a certification that has been
6-10     expired for more than 120 days if the board finds, on a sworn
6-11     affidavit of the applicant or by another method determined by the
6-12     board, that the applicant has retained the professional skills
6-13     required for original certification and has paid all delinquent
6-14     renewal fees and any penalty fee.  The board may reinstate a
6-15     registration that has been expired for more than 120 days if the
6-16     board finds, on a sworn affidavit of the registrant or by another
6-17     method determined by the board, that the registrant has corrected
6-18     all deficiencies and has paid all delinquent renewal fees and any
6-19     outstanding fines.  Reinstatement under this subsection expires on
6-20     January 1 nearest the second anniversary of the reinstatement.
6-21           Sec. 52.027.  VERIFIED COMPLAINT.  (a)  To file a complaint
6-22     against a certified shorthand reporter or a shorthand reporting
6-23     firm or affiliate office registered with the board, a person must:
6-24                 (1)  have personal knowledge of the alleged violation;
6-25                 (2)  complete a complaint form provided by the board;
6-26                 (3) [(2)]  sign the completed form under oath; and
6-27                 (4) [(3)]  attach any pertinent documentary evidence to
 7-1     the form.
 7-2           (b)  On receipt of a properly executed complaint, the board
 7-3     shall furnish a copy of the complaint and any attachments to the
 7-4     [certified] shorthand reporter or shorthand reporting firm or
 7-5     affiliate office that [who] is the subject of the complaint.
 7-6           (c)  This section does not preclude the board or a court of
 7-7     this state from filing a complaint against a certified shorthand
 7-8     reporter or a shorthand reporting firm.
 7-9           SECTION 12.  Sections 52.028(b) and (g), Government Code, are
7-10     amended to read as follows:
7-11           (b)  Immediately after setting the date for the hearing, the
7-12     board shall notify the shorthand reporter or shorthand reporting
7-13     firm or affiliate office that [who] is the subject of the
7-14     complaint.  The notice must state the cause of any contemplated
7-15     disciplinary action and the time and place of the hearing.  The
7-16     notice shall be mailed to the registered address of the shorthand
7-17     reporter or shorthand reporting firm or affiliate office not later
7-18     than the 30th day before the date on which the hearing is
7-19     scheduled.
7-20           (g)  The board shall produce a written summary of the
7-21     evidence before it and a written finding of facts.  The board shall
7-22     forward a copy of its findings of fact and rulings to the
7-23     complainant and any aggrieved party [person].
7-24           SECTION 13. The heading to Section 52.029, Government Code,
7-25     is amended to read as follows:
7-26           Sec. 52.029.  DISCIPLINARY ACTIONS AGAINST COURT REPORTERS.
7-27           SECTION 14. Section 52.029(a), Government Code, is amended to
 8-1     read as follows:
 8-2           (a)  After receiving a verified complaint and giving the
 8-3     certified shorthand reporter notice and an opportunity for a
 8-4     hearing as prescribed by Section 52.028, the board may revoke or
 8-5     suspend the shorthand reporter's certification or issue a reprimand
 8-6     to the reporter for:
 8-7                 (1)  fraud or corruption;
 8-8                 (2)  dishonesty;
 8-9                 (3)  wilful or negligent violation or failure of duty;
8-10                 (4)  incompetence;
8-11                 (5)  fraud or misrepresentation in obtaining
8-12     certification;
8-13                 (6)  a final conviction of a criminal offense involving
8-14     moral turpitude that indicates a clear and rational likelihood that
8-15     the reporter will not properly discharge the responsibilities of a
8-16     certified shorthand reporter;
8-17                 (7)  engaging in the practice of shorthand reporting
8-18     using a method for which the reporter is not certified;
8-19                 (8)  engaging in the practice of shorthand reporting
8-20     while certification is suspended;
8-21                 (9)  unprofessional conduct, including giving directly
8-22     or indirectly, benefiting from, or being employed as a result of
8-23     any gift, incentive, reward, or anything of value to attorneys,
8-24     clients, or their representatives or agents, except for nominal
8-25     items that do not exceed $100 [$25 each transaction and $50] in the
8-26     aggregate for each recipient each year;
8-27                 (10)  entering into or providing services under a
 9-1     prohibited contract described by Section 52.034; or
 9-2                 (11)  other sufficient cause.
 9-3           SECTION 15. Subchapter C, Chapter 52, Government Code, is
 9-4     amended by adding Section 52.0295 to read as follows:
 9-5           Sec. 52.0295.  DISCIPLINARY ACTIONS AGAINST FIRMS. (a)  After
 9-6     receiving a verified complaint and giving the shorthand reporting
 9-7     firm or affiliate office notice and an opportunity for a hearing as
 9-8     prescribed by Section 52.028, the board may reprimand, assess a
 9-9     reasonable fine against, or suspend or revoke the registration of a
9-10     shorthand reporting firm or affiliate office for:
9-11                 (1)  fraud or corruption;
9-12                 (2)  dishonesty;
9-13                 (3)  conduct on the part of an officer, director, or
9-14     managerial employee of the shorthand reporting firm or affiliate
9-15     office if the officer, director, or managerial employee orders,
9-16     encourages, or permits conduct that the officer, director, or
9-17     managerial employee knows or should have known violates this
9-18     chapter;
9-19                 (4)  conduct on the part of an officer, director, or
9-20     managerial employee or agent of the shorthand reporting firm or
9-21     affiliate office who has direct supervisory authority over a person
9-22     for whom the officer, director, employee, or agent knows or should
9-23     have known violated this chapter and knowingly fails to take
9-24     reasonable remedial action to avoid or mitigate the consequences of
9-25     the person's actions;
9-26                 (5)  fraud or misrepresentation in obtaining
9-27     registration;
 10-1                (6)  a final conviction of an officer, director, or
 10-2    managerial employee of a shorthand reporting firm or affiliate
 10-3    office for a felony or misdemeanor that is directly related to the
 10-4    provision of court reporting services;
 10-5                (7)  engaging the services of a reporter that the
 10-6    shorthand reporting firm or affiliate office knew or should have
 10-7    known was using a method for which the reporter is not certified;
 10-8                (8)  knowingly providing court reporting services while
 10-9    the shorthand reporting firm's or affiliate office's registration
10-10    is suspended or engaging the services of a shorthand reporter whose
10-11    certification the shorthand reporting firm or affiliate office knew
10-12    or should have known was suspended;
10-13                (9)  unprofessional conduct, including a pattern of
10-14    giving directly or indirectly, benefiting from or being employed as
10-15    a result of any gift, incentive, reward, or anything of value to
10-16    attorneys, clients, or their representatives or agents, except for
10-17    nominal items that do not exceed $100 in the aggregate for each
10-18    recipient each year;
10-19                (10)  entering into or providing services under a
10-20    prohibited contract described by Section 52.034; or
10-21                (11)  other sufficient cause.
10-22          (b)  Nothing in Subsection (a)(9) shall be construed to
10-23    define providing value-added business services, including long-term
10-24    volume discounts, such as the pricing of products and services, as
10-25    prohibitive gifts, incentives, or rewards.
10-26          (c)  The board may suspend the registration of a shorthand
10-27    reporting firm or affiliate office:
 11-1                (1)  for a designated period of time;
 11-2                (2)  until the shorthand reporting firm or affiliate
 11-3    office corrects the deficiencies that were the grounds for the
 11-4    suspension; or
 11-5                (3)  until the shorthand reporting firm or affiliate
 11-6    office complies with any conditions imposed by the board to ensure
 11-7    the shorthand reporting firm's or affiliate office's future
 11-8    performance.
 11-9          (d)  A shorthand reporting firm or affiliate office whose
11-10    registration is suspended may apply for reinstatement by presenting
11-11    proof that:
11-12                (1)  the designated time has expired;
11-13                (2)  the shorthand reporting firm or affiliate office
11-14    has corrected the deficiencies; or
11-15                (3)  the shorthand reporting firm or affiliate office
11-16    has complied with the conditions imposed by the board.
11-17          (e)  On its own motion, the board may conduct a hearing to
11-18    inquire into a suspension.  If the board finds that a shorthand
11-19    reporting firm or affiliate office has not corrected the
11-20    deficiencies that were the grounds for the suspension or has not
11-21    complied with the conditions imposed by the board, the board may
11-22    revoke the registration of the shorthand reporting firm or
11-23    affiliate office.
11-24          SECTION 16. Section 52.030, Government Code, is amended to
11-25    read as follows:
11-26          Sec. 52.030.  APPEAL OF DISCIPLINARY ACTION. An aggrieved
11-27    court reporter or shorthand reporting firm or affiliate office
 12-1    [person] may appeal a disciplinary action of the board to a
 12-2    district court in the county of the court reporter's [person's]
 12-3    residence or in which the shorthand reporting firm or affiliate
 12-4    office is located or in Travis County.  The appeal shall be by
 12-5    trial de novo, with or without a jury.  If the aggrieved person is
 12-6    the official or deputy court reporter of the court in which the
 12-7    appeal will be heard or if the shorthand reporting firm or
 12-8    affiliate office provides the official or deputy court reporter of
 12-9    the court in which the appeal will be heard, the presiding judge of
12-10    the administrative judicial region shall appoint the judge of
12-11    another court or a retired judge to hear and determine the
12-12    complaint.
12-13          SECTION 17.  The Court Reporters Certification Board shall
12-14    issue a registration as required by Section 52.013(a)(7),
12-15    Government Code, as added by this Act, to each court reporting firm
12-16    that registered with the board as required by Section 52.021(h),
12-17    Government Code, before the effective date of this Act.
12-18          SECTION 18. The supreme court shall appoint two
12-19    representatives of shorthand reporting firms to the Court Reporters
12-20    Certification Board as required by Section 52.011(a), Government
12-21    Code, as amended by this Act, as follows:
12-22                (1)  one representative appointed on the earliest date
12-23    after the effective date of this Act that the term of a member
12-24    appointed as an active official court reporter expires or otherwise
12-25    becomes vacant; and
12-26                (2)  one representative appointed on the earliest date
12-27    after the effective date of this Act that the term of a member
 13-1    appointed as an active certified shorthand reporter expires or
 13-2    otherwise becomes vacant.
 13-3          SECTION 19. Subchapter C, Chapter 52, Government Code, is
 13-4    amended by adding Section 52.035 to read as follows:
 13-5          Sec. 52.035.  APPLICATION OF THE CHAPTER. This chapter
 13-6    applies to services performed by a Texas certified shorthand
 13-7    reporter, registered shorthand reporting firm, or its registered
 13-8    affiliate office to be used in litigation filed in the State of
 13-9    Texas.  Should court reporting services be performed outside this
13-10    state for litigation filed in the state, this chapter applies only
13-11    to the extent it does not conflict with the rules, regulations, and
13-12    statutes of the court reporting profession in the state in which
13-13    those services are performed.
13-14          SECTION 20.  This Act takes effect September 1, 2001.