By Solis                                              H.B. No. 3179
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                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 firm"
1-10     and "affiliate office" mean an entity wholly or partly in the
1-11     business of providing court reporting or other related services in
1-12     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
1-16     to 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, Government Code, is amended to
 2-1     read as follows:
 2-2           Sec. 52.011.  ORGANIZATION  (a)  The Court Reporters
 2-3     Certification Board is appointed by the supreme court and is
 2-4     composed of:
 2-5                 (1)  one active district judge who serves as chairman;
 2-6                 (2)  two active attorneys licensed in this state who
 2-7     have been practicing members of the State Bar for more than the
 2-8     five years immediately preceding their appointment to the board;
 2-9                 (3)  three active official court reporters who have
2-10     practiced shorthand reporting in this state for more than the five
2-11     years immediately preceding their appointment to the board;
2-12                 (4)  three active certified shorthand reporters who
2-13     work on a free-lance basis and who have practiced shorthand
2-14     reporting for more than the five years immediately preceding their
2-15     appointment to the board; and
2-16                 (5)  two unrelated non Certified Shorthand Reporter
2-17     owned firm representatives whose firms have operated as shorthand
2-18     reporting firms in this state for more than the three years
2-19     immediately preceding their appointment to the board;
2-20                 (6)  one Certified Shorthand Reporter owned firm
2-21     representative that has operated as a shorthand reporting firm in
2-22     this state for more than the three years immediately preceding the
2-23     appointment to the board; [three public members who are citizens of
2-24     this state;] and
2-25                 (7)  three public members who are citizens of this
2-26     state.
 3-1           SECTION 5.  Section 52.012(b), Government Code, is amended to
 3-2     read as follows:
 3-3           (b)  Eight [Five] members of the board constitute a quorum.
 3-4           SECTION 6.  Sections 52.013(a) and (c), Government Code, are
 3-5     amended to read as follows:
 3-6           (a)  The board shall:
 3-7                 (1)  administer and enforce this chapter;
 3-8                 (2)  administer the examination prescribed by Section
 3-9     52.023;
3-10                 (3) [(2)]  set the amount of each fee prescribed by
3-11     this chapter, subject to the approval of the supreme court;
3-12                 (4) [(3)]  charge and collect the fees prescribed by
3-13     this chapter; [and]
3-14                 (5) [(4)]  determine the qualifications and pass on the
3-15     eligibility of each person applying for certification or
3-16     recertification;
3-17                 (6)  maintain a record of each court reporting firm or
3-18     affiliate that registers with the board as required by this
3-19     chapter; and
3-20                 (7)  issue a registration to each court reporting firm
3-21     or affiliate office that registers with the board.
3-22           (c)  The board shall maintain:
3-23                 (1)  a complete record of each board proceeding;
3-24                 (2)  a complete record of each certification issued,
3-25     renewed, or revoked; [and]
3-26                 (3)  a complete record of each registration issued,
 4-1     renewed, or revoked; and
 4-2                 (4) [3]  a detailed statement of receipts and
 4-3     disbursements.
 4-4           SECTION 7.  The heading of Subchapter C, and title of Section
 4-5     52.021, Government Code, are amended to read as follows:
 4-6                  SUBCHAPTER C. CERTIFICATION OF REPORTERS
 4-7           Sec. 52.021.  Certification Of Reporters
 4-8           SECTION 8.  Sections 52.021(g), (h), and (i), Government
 4-9     Code, are amended to read as follows:
4-10           (g)  The board may enforce this section by seeking an
4-11     injunction or by filing a complaint against [a] any person who is
4-12     not certified by the supreme court in the district court of the
4-13     county in which that person resides or in Travis County.  Said
4-14     action for an injunction shall be in addition to any other action,
4-15     proceeding, or remedy authorized by law.  The board shall be
4-16     represented by the attorney general and/or the county or district
4-17     attorney of this state, or counsel designated and empowered by the
4-18     board.
4-19           SECTION 9.  Section 52.026, Government Code is amended by
4-20     adding a new section to read as follows and renumbering all
4-21     subsequent sections:
4-22           Sec. 52.026.  FIRM REGISTRATION. (a)  A firm shall not
4-23     assume, offer services or use the title or designation "court
4-24     recording firm," "court reporting firm," "shorthand reporting
4-25     firm," or any abbreviation, title, designation, words, letters,
4-26     sign, card, or device tending to indicate that the firm is a court
 5-1     reporting firm or shorthand reporting firm, unless that firm and
 5-2     its affiliate offices are registered with the board, on a form
 5-3     prescribed by the board, as required by this Chapter.
 5-4           (b)  The board may enforce this section by seeking an
 5-5     injunctin or by filing a complaint against a firm, its affiliate
 5-6     office, or both that are not registered with the board in the
 5-7     district court of the county in which the firm or affiliate office
 5-8     is located or in Travis County.  Said action for an injunction
 5-9     shall be in addition to any other action, proceeding, or remedy
5-10     authorized by law.  The board shall be represented by the attorney
5-11     general and/or the county or district attorney of this state, or
5-12     counsel designated and empowered by the board.
5-13           SECTION 10.  Sections 52.027 [6] and 52.028 [7], Government
5-14     Code, are amended to read as follows:
5-15           Sec. 52.027 [6].  REPORTER CERTIFICATION AND FIRM
5-16     REGISTRATION FEE AND RENEWAL. (a)  A person who receives
5-17     certification as a shorthand reporter or a shorthand reporting firm
5-18     that is registered by the board must pay the initial
5-19     [certification] fee and any other required fee before receiving the
5-20     certification or registration.
5-21           (b)  A certification or registration expires at 12:01 a.m. on
5-22     January 1 following the second anniversary of the date on which it
5-23     was issued unless the certification or registration is renewed.
5-24     Thereafter, the certification or registration expires at 12:01 a.m.
5-25     of each second January 1 unless renewed.
5-26           (c)  To renew a certification or registration, the shorthand
 6-1     reporter or shorthand reporting firm or affiliate office must pay
 6-2     the renewal fee on or before the expiration date of the
 6-3     certification or registration.
 6-4           (d)  The board may reinstate an expired certification or
 6-5     registration if, not later than the 120th day after the date of
 6-6     expiration, the applicant pays the renewal fee and any penalty fee.
 6-7     The reinstatement dates from the original date of expiration.
 6-8           (e)  The board may reinstate a certification that has been
 6-9     expired for more than 120 days if the board finds, on a sworn
6-10     affidavit of the applicant or by another method determined by the
6-11     board, that the applicant has retained the professional skills
6-12     required for original certification and has paid all delinquent
6-13     renewal fees and any penalty fee.  The board may reinstate a
6-14     registration that has been expired for more than 120 days if the
6-15     board finds, on a sworn affidavit of the registrant or by another
6-16     method determined by the board, that the registrant has corrected
6-17     all deficiencies and has paid all delinquent renewal fees and
6-18     outstanding fines.  Reinstatement under this subsection expires on
6-19     January 1 nearest the second anniversary of the reinstatement.
6-20           Sec. 52.028 [7].  VERIFIED COMPLAINT. (a)  To file a
6-21     complaint against a certified shorthand reporter or a shorthand
6-22     reporting firm or affiliate office, a person must:
6-23                 (1)  have personal knowledge of the alleged violation;
6-24                 (2) [(1)]  complete a complaint form provided by the
6-25     board;
6-26                 (3) [(2)]  sign the completed form under oath; and
 7-1                 (4) [(3)]  attach any pertinent documentary evidence to
 7-2     the form.
 7-3           (b)  On receipt of a properly executed complaint, the board
 7-4     shall furnish a copy of the complaint and any attachments to the
 7-5     [certified] shorthand reporter or shorthand reporting firm or
 7-6     affiliate office that [who] is the subject of the complaint.
 7-7           (c)  This section does not preclude the board in its
 7-8     discretion, or any court of this state, from filing a complaint
 7-9     against a certified shorthand reporter or a shorthand reporting
7-10     firm.
7-11           SECTION 11.  Section 52.029 [8](b), Government Code, is
7-12     amended to read as follows:
7-13           (b)  Immediately after setting the date for the hearing, the
7-14     board shall notify the shorthand reporter or shorthand reporting
7-15     firm or its affiliate office that [who] is the subject of the
7-16     complaint.  The notice must state the cause of any contemplated
7-17     disciplinary action and the time and place of the hearing.  The
7-18     notice shall be mailed to the registered address of the shorthand
7-19     reporter or shorthand reporting firm or its affiliate office not
7-20     later than the 30th day before the date on which the hearing is
7-21     scheduled.
7-22           SECTION 12.  Section 52.030 [29], Government Code, is amended
7-23     to read as follows:
7-24           Sec. 52.030 [29].  Disciplinary Actions Against Court
7-25     Reporters. (a)  After receiving a verified complaint and giving the
7-26     certified shorthand reporter notice and an opportunity for a
 8-1     hearing as prescribed by Section 52.028, the board may revoke or
 8-2     suspend the shorthand reporter's certification or issue a reprimand
 8-3     to the reporter for:
 8-4                 (1)  fraud or corruption;
 8-5                 (2)  dishonesty;
 8-6                 (3)  wilful or negligent violation or failure of duty;
 8-7                 (4)  incompetence;
 8-8                 (5)  fraud or misrepresentation in obtaining
 8-9     certification;
8-10                 (6)  a final conviction of a criminal offense involving
8-11     moral turpitude that indicates a clear and rational likelihood that
8-12     the reporter will not properly discharge the responsibilities of a
8-13     certified shorthand reporter;
8-14                 (7)  engaging in the practice of shorthand reporting
8-15     using a method for which the reporter is not certified;
8-16                 (8)  engaging in the practice of shorthand reporting
8-17     while certification is suspended;
8-18                 (9)  unprofessional conduct, including giving directly
8-19     or indirectly, benefiting from, or being employed as a result of
8-20     any gift, incentive, reward, or anything of value to attorneys,
8-21     clients, or their representatives or agents, except for nominal
8-22     items that do not exceed $50 [$25] each transaction and $100 [$50]
8-23     in the aggregate for each recipient each year;
8-24                 (10)  entering into or providing services under a
8-25     prohibited contract described by Section 52.034 of this Act; or
8-26                 (11)  other sufficient cause.
 9-1           SECTION 13.  Adding a New Section 52.031, Government Code.
 9-2           Sec. 52.031.  Disciplinary Actions Against Firms. (a)  After
 9-3     receiving a verified complaint and giving the shorthand reporting
 9-4     firm or its affiliate office notice and an opportunity for a
 9-5     hearing, as prescribed by Section 52.028, the board may suspend or
 9-6     revoke a shorthand reporting firm or its affiliate office's
 9-7     registration or issue a reprimand for:
 9-8                 (1)  fraud or corruption;
 9-9                 (2)  dishonesty;
9-10                 (3)  a pattern of conduct on the part of an officer,
9-11     director, or managerial employee of the shorthand reporting firm or
9-12     its affiliate if the officer, director, or managerial employee
9-13     orders, encourages, or permits conduct that the officer, director,
9-14     or managerial employee knew or should have known was violative of
9-15     this Act;
9-16                 (4)  a pattern of conduct on the part of an officer,
9-17     director, managerial employee or agent of the shorthand reporting
9-18     firm or its affiliate who has direct supervisory authority and
9-19     knows or should have known of the other person's violations of this
9-20     chapter and knowingly fails to take reasonable remedial action to
9-21     avoid or mitigate the consequences of the person's actions;
9-22                 (5)  fraud or misrepresentation in obtaining
9-23     registration;
9-24                 (6)  an officer, director, or managerial employee of a
9-25     shorthand  reporting firm or its affiliate having been convicted of
9-26     a felony or misdemeanor that is directly related to the provision
 10-1    of court reporting  services;
 10-2                (7)  engaging the services of a reporter that the
 10-3    shorthand reporting firm or affiliate knew or should have known was
 10-4    a method for which the reporter is not certified;
 10-5                (8)  knowingly engaging in the practice of court
 10-6    reporting services while the shorthand reporting firm or its
 10-7    affiliate's registration is suspended or engaging the services of a
 10-8    reporter whose certification the shorthand reporting firm or its
 10-9    affiliate knew or should have known was suspended;
10-10                (9)  entering into or providing services under a
10-11    prohibited contract described by Section 52.035 of this Chapter; or
10-12                (10)  other sufficient cause.
10-13          (c)  The board may suspend the registration of a shorthand
10-14    reporting firm or its affiliate:
10-15                (1)  for a designated period of time; or
10-16                (2)  until the shorthand reporting firm or affiliate
10-17    office corrects the deficiencies that were the grounds for the
10-18    suspension; or
10-19                (3)  until the shorthand reporting firm or its
10-20    affiliate office complies with any conditions imposed by the board
10-21    to ensure the shorthand reporting firm or its affiliate office's
10-22    future performance.
10-23          (d)  A suspended shorthand reporting firm or affiliate office
10-24    may apply for reinstatement by presenting proof that:
10-25                (1)  the designated time has expired;
10-26                (2)  the shorthand reporting firm or affiliate office
 11-1    has corrected the deficiencies; or
 11-2                (3)  the shorthand reporting firm or affiliate office
 11-3    has complied with the conditions imposed by the board.
 11-4          (e)  On its own motion, the board may conduct a hearing to
 11-5    inquire into a suspension.  If the board finds that a shorthand
 11-6    reporting firm or affiliate office has not corrected the
 11-7    deficiencies that were the grounds of the suspension or has not
 11-8    complied with the conditions imposed by the board, the board may
 11-9    revoke the registration of the shorthand reporting firm or its
11-10    affiliate office.
11-11          SECTION 14.  Section 52.031 [0], Government Code, is amended
11-12    to read as follows:
11-13          Sec. 52.031[0].  APPEAL OF DISCIPLINARY ACTION. An aggrieved
11-14    person, shorthand reporting firm or affiliate may appeal a
11-15    disciplinary action of the board to a district court in Travis
11-16    County or in the county of the person's residence or in the county
11-17    in which the shorthand reporting firm or affiliate office is
11-18    located.  The appeal shall be by trial de novo, with or without a
11-19    jury.  If the aggrieved person is or the shorthand reporting firm
11-20    or affiliate provides the official or deputy court reporter of the
11-21    court in which the appeal will be heard, the presiding judge of the
11-22    administrative judicial region shall appoint the judge of another
11-23    court or a retired judge to hear and determine the complaint.
11-24          SECTION 15.  The Court Reporters Certification Board shall
11-25    issue a registration as required by Section 52.013(a)(7),
11-26    Government Code, as added by this Act, to each court  reporting
 12-1    firm or affiliate that registered with the board as required by
 12-2    Section 52.026 [21(h)], Government Code, before the effective date
 12-3    of this Act.
 12-4          SECTION 16.  This Act takes effect September 1, 2001.