By:  West                                             S.B. No. 1223
                                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.  Subsection (a), Section 52.011, Government Code,
1-24     is amended to read as follows:
1-25           (a)  The Court Reporters Certification Board is appointed by
 2-1     the supreme court and is composed of:
 2-2                 (1)  one active district judge who serves as chairman;
 2-3                 (2)  two active attorneys licensed in this state who
 2-4     have been practicing members of the State Bar for more than the
 2-5     five years immediately preceding their appointment to the board;
 2-6                 (3)  two [three] active official court reporters who
 2-7     have practiced shorthand reporting in this state for more than the
 2-8     five years immediately preceding their appointment to the board;
 2-9                 (4)  two [three] active certified shorthand reporters
2-10     who work on a free-lance basis and who have practiced shorthand
2-11     reporting for more than the five years immediately preceding their
2-12     appointment to the board; [and]
2-13                 (5)  one representative of a shorthand reporting firm
2-14     that is not owned by a certified shorthand reporter and that has
2-15     operated as a shorthand reporting firm in this state for more than
2-16     the three years immediately preceding the representative's
2-17     appointment to the board;
2-18                 (6)  one representative of a shorthand reporting firm
2-19     that is owned by a certified shorthand reporter and that has
2-20     operated as a shorthand reporting firm in this state for more than
2-21     the three years immediately preceding the representative's
2-22     appointment to the board; and
2-23                 (7)  four [three] public members who are citizens of
2-24     this state.
2-25           SECTION 5.  Subsection (b), Section 52.012, Government Code,
2-26     is amended to read as follows:
 3-1           (b)  Seven [Five] members of the board constitute a quorum.
 3-2           SECTION 6.  Subsections (a) and (c), Section 52.013,
 3-3     Government Code, are 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
 4-1     disbursements.
 4-2           SECTION 7.  The heading to Subchapter C, Chapter 52,
 4-3     Government Code, is amended to read as follows:
 4-4                SUBCHAPTER C.  CERTIFICATION AND REGISTRATION
 4-5           SECTION 8.  The heading to Section 52.021, Government Code,
 4-6     is amended to read as follows:
 4-7           Sec. 52.021.  CERTIFICATION OF REPORTERS.
 4-8           SECTION 9.  Subsections (g), (h), and (i), Section 52.021,
 4-9     Government 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 person who is not
4-12     certified by the supreme court in the district court of the county
4-13     in which that person resides or Travis County.  Said action for an
4-14     injunction shall be in addition to any other action, proceeding, or
4-15     remedy authorized by law.  The board shall be represented by the
4-16     attorney general and/or the county or district attorney of this
4-17     state, or counsel designated and empowered by the board.
4-18           [(h)  A court reporting firm shall register with the board by
4-19     completing an application in a form adopted by the board.]
4-20           [(i)  Rules applicable to a court reporter are also
4-21     applicable to a court reporting firm.  The board may enforce this
4-22     subsection by assessing a reasonable fee against a court reporting
4-23     firm.]
4-24           SECTION 10.  Subchapter C, Chapter 52, Government Code, is
4-25     amended by adding Section 52.0255 to read as follows:
4-26           Sec. 52.0255.  FIRM REGISTRATION.  (a)  A shorthand reporting
 5-1     firm may not assume or use the title or designation "court
 5-2     recording firm," "court reporting firm," or "shorthand reporting
 5-3     firm" or any abbreviation, title, designation, words, letters,
 5-4     sign, card, or device tending to indicate that the firm is a court
 5-5     reporting firm or shorthand reporting firm, or offer services as a
 5-6     court reporting firm or shorthand reporting firm, unless the firm
 5-7     and its affiliate offices are registered with the board on a form
 5-8     prescribed by the board as required by this chapter.
 5-9           (b)  The board may enforce this section against a firm, its
5-10     affiliate office, or both, if the firm or affiliate office is not
5-11     registered with the board, by seeking an injunction or by filing a
5-12     complaint in the district court of the county in which the firm or
5-13     affiliate office is located or in Travis County.  An action for an
5-14     injunction is in addition to any other action, proceeding, or
5-15     remedy authorized by law.  The attorney general, a county or
5-16     district attorney of this state, or counsel designated and
5-17     empowered by the board shall represent the board.
5-18           SECTION 11.  Sections 52.026 and 52.027, Government Code, are
5-19     amended to read as follows:
5-20           Sec. 52.026.  CERTIFICATION AND REGISTRATION FEE AND RENEWAL.
5-21     (a)  A person who receives certification as a shorthand reporter or
5-22     a shorthand reporting firm or affiliate office that registers with
5-23     the board must pay the initial [certification] fee and any other
5-24     required fee before receiving the certification or registration.
5-25           (b)  A certification or registration expires at 12:01 a.m. on
5-26     January 1 following the second anniversary of the date on which it
 6-1     was issued unless the certification or registration is renewed.
 6-2     Thereafter, the certification or registration expires at 12:01 a.m.
 6-3     of each second January 1 unless renewed.
 6-4           (c)  To renew a certification or registration, the shorthand
 6-5     reporter or shorthand reporting firm or affiliate office must pay
 6-6     the renewal fee on or before the expiration date of the
 6-7     certification or registration.
 6-8           (d)  The board may reinstate an expired certification or
 6-9     registration if, not later than the 120th day after the date of
6-10     expiration, the applicant pays the renewal fee and any penalty fee.
6-11     The reinstatement dates from the original date of expiration.
6-12           (e)  The board may reinstate a certification that has been
6-13     expired for more than 120 days if the board finds, on a sworn
6-14     affidavit of the applicant or by another method determined by the
6-15     board, that the applicant has retained the professional skills
6-16     required for original certification and has paid all delinquent
6-17     renewal fees and any penalty fee.  The board may reinstate a
6-18     registration that has been expired for more than 120 days if the
6-19     board finds, on a sworn affidavit of the registrant or by another
6-20     method determined by the board, that the registrant has corrected
6-21     all deficiencies and has paid all delinquent renewal fees and any
6-22     outstanding fines.  Reinstatement under this subsection expires on
6-23     January 1 nearest the second anniversary of the reinstatement.
6-24           Sec. 52.027.  VERIFIED COMPLAINT.  (a)  To file a complaint
6-25     against a certified shorthand reporter or a shorthand reporting
6-26     firm or affiliate office registered with the board, a person must:
 7-1                 (1)  have personal knowledge of the alleged violation;
 7-2                 (2)  complete a complaint form provided by the board;
 7-3                 (3) [(2)]  sign the completed form under oath; and
 7-4                 (4) [(3)]  attach any pertinent documentary evidence to
 7-5     the form.
 7-6           (b)  On receipt of a properly executed complaint, the board
 7-7     shall furnish a copy of the complaint and any attachments to the
 7-8     [certified] shorthand reporter or shorthand reporting firm or
 7-9     affiliate office that [who] is the subject of the complaint.
7-10           (c)  This section does not preclude the board or a court of
7-11     this state from filing a complaint against a certified shorthand
7-12     reporter or a shorthand reporting firm.
7-13           SECTION 12.  Subsections (b) and (g), Section 52.028,
7-14     Government Code, are amended to read as follows:
7-15           (b)  Immediately after setting the date for the hearing, the
7-16     board shall notify the shorthand reporter or shorthand reporting
7-17     firm or affiliate office that [who] is the subject of the
7-18     complaint.  The notice must state the cause of any contemplated
7-19     disciplinary action and the time and place of the hearing.  The
7-20     notice shall be mailed to the registered address of the shorthand
7-21     reporter or shorthand reporting firm or affiliate office not later
7-22     than the 30th day before the date on which the hearing is
7-23     scheduled.
7-24           (g)  The board shall produce a written summary of the
7-25     evidence before it and a written finding of facts.  The board shall
7-26     forward a copy of its findings of fact and rulings to the
 8-1     complainant and any aggrieved party [person].
 8-2           SECTION 13.  Section 52.029, Government Code, is amended to
 8-3     read as follows:
 8-4           Sec. 52.029.  DISCIPLINARY ACTIONS AGAINST COURT REPORTERS.
 8-5     (a)  After receiving a verified complaint and giving the certified
 8-6     shorthand reporter notice and an opportunity for a hearing as
 8-7     prescribed by Section 52.028, the board may revoke or suspend the
 8-8     shorthand reporter's certification or issue a reprimand to the
 8-9     reporter for:
8-10                 (1)  fraud or corruption;
8-11                 (2)  dishonesty;
8-12                 (3)  wilful or negligent violation or failure of duty;
8-13                 (4)  incompetence;
8-14                 (5)  fraud or misrepresentation in obtaining
8-15     certification;
8-16                 (6)  a final conviction of a criminal offense involving
8-17     moral turpitude that indicates a clear and rational likelihood that
8-18     the reporter will not properly discharge the responsibilities of a
8-19     certified shorthand reporter;
8-20                 (7)  engaging in the practice of shorthand reporting
8-21     using a method for which the reporter is not certified;
8-22                 (8)  engaging in the practice of shorthand reporting
8-23     while certification is suspended;
8-24                 (9)  unprofessional conduct, including giving directly
8-25     or indirectly, benefiting from, or being employed as a result of
8-26     any gift, incentive, reward, or anything of value to attorneys,
 9-1     clients, or their representatives or agents, except for nominal
 9-2     items that do not exceed $100 [$25 each transaction and $50] in the
 9-3     aggregate for each recipient each year;
 9-4                 (10)  entering into or providing services under a
 9-5     prohibited contract described by Section 52.034; or
 9-6                 (11)  other sufficient cause.
 9-7           (b)  The board may suspend the certification:
 9-8                 (1)  for a designated period of time not to exceed 12
 9-9     months;
9-10                 (2)  until the person corrects the deficiencies that
9-11     were the grounds for the suspension; or
9-12                 (3)  until the person complies with any conditions
9-13     imposed by the board to ensure the person's future performance as a
9-14     shorthand reporter.
9-15           (c)  A suspended shorthand reporter may apply for
9-16     reinstatement by presenting proof that:
9-17                 (1)  the designated time has expired;
9-18                 (2)  the person has corrected the deficiencies; or
9-19                 (3)  the person has complied with the conditions
9-20     imposed by the board.
9-21           (d)  On its own motion, the board may conduct a hearing to
9-22     inquire into a suspension.  If the board finds that a person has
9-23     not corrected the deficiencies that were the grounds of the
9-24     suspension or has not complied with the conditions imposed by the
9-25     board, the board may revoke the person's certification.
9-26           (e)  The supreme court may authorize and the board may adopt
 10-1    rules relating to the nonrenewal of the certification of a court
 10-2    reporter who is in default on a loan guaranteed under Chapter 57,
 10-3    Education Code, by the Texas Guaranteed Student Loan Corporation.
 10-4          SECTION 14.  Subchapter C, Chapter 52, Government Code, is
 10-5    amended by adding Section 52.0295 to read as follows:
 10-6          Sec. 52.0295.  DISCIPLINARY ACTIONS AGAINST FIRMS.
 10-7    (a)  After receiving a verified complaint and giving the shorthand
 10-8    reporting firm or affiliate office notice and an opportunity for a
 10-9    hearing as prescribed by Section 52.028, the board may reprimand,
10-10    assess a reasonable fine against, or suspend or revoke the
10-11    registration of a shorthand reporting firm or affiliate office for:
10-12                (1)  fraud or corruption;
10-13                (2)  dishonesty;
10-14                (3)  conduct on the part of an officer, director, or
10-15    managerial employee of the shorthand reporting firm or affiliate
10-16    office if the officer, director, or managerial employee orders,
10-17    encourages, or permits conduct that the officer, director, or
10-18    managerial employee knows or should have known violates this
10-19    chapter;
10-20                (4)  conduct on the part of an officer, director, or
10-21    managerial employee or agent of the shorthand reporting firm or
10-22    affiliate office who has direct supervisory authority over a person
10-23    for whom the officer, director, employee, or agent knows or should
10-24    have known violated this chapter and knowingly fails to take
10-25    reasonable remedial action to avoid or mitigate the consequences of
10-26    the person's actions;
 11-1                (5)  fraud or misrepresentation in obtaining
 11-2    registration;
 11-3                (6)  a final conviction of an officer, director, or
 11-4    managerial employee of a shorthand reporting firm or affiliate
 11-5    office for a felony or misdemeanor that is directly related to the
 11-6    provision of court reporting services;
 11-7                (7)  engaging the services of a reporter that the
 11-8    shorthand reporting firm or affiliate office knew or should have
 11-9    known was using a method for which the reporter is not certified;
11-10                (8)  knowingly providing court reporting services while
11-11    the shorthand reporting firm's or affiliate office's registration
11-12    is suspended or engaging the services of a shorthand reporter whose
11-13    certification the shorthand reporting firm or affiliate office knew
11-14    or should have known was suspended;
11-15                (9)  unprofessional conduct, including a pattern of
11-16    giving directly or indirectly or benefiting from or being employed
11-17    as a result of giving any gift, incentive, reward, or anything of
11-18    value to attorneys, clients, or their representatives or agents,
11-19    except for nominal items that do not exceed $100 in the aggregate
11-20    for each recipient each year;
11-21                (10)  entering into or providing services under a
11-22    prohibited contract described by Section 52.034; or
11-23                (11)  other sufficient cause.
11-24          (b)  Nothing in Subsection (a)(9) shall be construed to
11-25    define providing value-added business services, including long-term
11-26    volume discounts, such as the pricing of products and services, as
 12-1    prohibited gifts, incentives, or rewards.
 12-2          (c)  The board may suspend the registration of a shorthand
 12-3    reporting firm or affiliate office:
 12-4                (1)  for a designated period of time;
 12-5                (2)  until the shorthand reporting firm or affiliate
 12-6    office corrects the deficiencies that were the grounds for the
 12-7    suspension; or
 12-8                (3)  until the shorthand reporting firm or affiliate
 12-9    office complies with any conditions imposed by the board to ensure
12-10    the shorthand reporting firm's or affiliate office's future
12-11    performance.
12-12          (d)  A shorthand reporting firm or affiliate office whose
12-13    registration is suspended may apply for reinstatement by presenting
12-14    proof that:
12-15                (1)  the designated time has expired;
12-16                (2)  the shorthand reporting firm or affiliate office
12-17    has corrected the deficiencies; or
12-18                (3)  the shorthand reporting firm or affiliate office
12-19    has complied with the conditions imposed by the board.
12-20          (e)  On its own motion, the board may conduct a hearing to
12-21    inquire into a suspension.  If the board finds that a shorthand
12-22    reporting firm or affiliate office has not corrected the
12-23    deficiencies that were the grounds for the suspension or has not
12-24    complied with the conditions imposed by the board, the board may
12-25    revoke the registration of the shorthand reporting firm or
12-26    affiliate office.
 13-1          SECTION 15.  Section 52.030, Government Code, is amended to
 13-2    read as follows:
 13-3          Sec. 52.030.  APPEAL OF DISCIPLINARY ACTION.  An aggrieved
 13-4    court reporter or shorthand reporting firm or affiliate office
 13-5    [person] may appeal a disciplinary action of the board to a
 13-6    district court in the county of the court reporter's [person's]
 13-7    residence or the county in which the shorthand reporting firm or
 13-8    affiliate office is located or in Travis County.  The appeal shall
 13-9    be by trial de novo, with or without a jury.  If the aggrieved
13-10    person is the official or deputy court reporter of the court in
13-11    which the appeal will be heard or if the shorthand reporting firm
13-12    or affiliate office provides the official or deputy court reporter
13-13    of the court in which the appeal will be heard, the presiding judge
13-14    of the administrative judicial region shall appoint the judge of
13-15    another court or a retired judge to hear and determine the
13-16    complaint.
13-17          SECTION 16.  The Court Reporters Certification Board shall
13-18    issue a registration as required by Subdivision (7), Subsection
13-19    (a), Section 52.013, Government Code, as added by this Act, to each
13-20    court reporting firm that registered with the board as required by
13-21    Subsection (h), Section 52.021, Government Code, before the
13-22    effective date of this Act.
13-23          SECTION 17.  The supreme court shall appoint two
13-24    representatives of shorthand reporting firms to the Court Reporters
13-25    Certification Board as required by Subsection (a), Section 52.011,
13-26    Government Code, as amended by this Act, as follows:
 14-1                (1)  one representative appointed on the earliest date
 14-2    after the effective date of this Act that the term of a member
 14-3    appointed as an active official court reporter expires or otherwise
 14-4    becomes vacant; and
 14-5                (2)  one representative appointed on the earliest date
 14-6    after the effective date of this Act that the term of a member
 14-7    appointed as an active certified shorthand reporter expires or
 14-8    otherwise becomes vacant.
 14-9          SECTION 18.  This Act applies to services performed by a
14-10    Texas certified shorthand reporter or registered shorthand
14-11    reporting firm or its registered affiliate office to be used in
14-12    litigation filed in the State of Texas.  If court reporting
14-13    services are performed outside this state for litigation filed in
14-14    the State of Texas, this Act applies only to the extent it does not
14-15    conflict with the rules, regulations, and statutes of the court
14-16    reporting profession in the state in which those services are
14-17    performed.
14-18          SECTION 19.  This Act takes effect September 1, 2001.