By:  West                                             S.B. No. 1223
         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 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, 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 have
 2-7     been practicing members of the State Bar for more than the five
 2-8     years immediately preceding their appointment to the board;
 2-9           (3)  three active official court reporters who have practiced
2-10     shorthand reporting in this state for more than the five years
2-11     immediately preceding their appointment to the board;
2-12           (4)  three active certified shorthand reporters who work on a
2-13     free-lance basis and who have practiced shorthand reporting for
2-14     more than the five years immediately preceding their appointment to
2-15     the board; and
2-16           (5)  two unrelated non Certified Shorthand Reporter-owned
2-17     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 state.
2-26           SECTION 5.  Section 52.012(b), Government Code, is amended to
 3-1     read as follows:
 3-2           (b)  Eight [Five] members of the board constitute a quorum.
 3-3           SECTION 6.  Sections 52.013(a) and (c), Government Code, are
 3-4     amended to read as follows:
 3-5           (a)  The board shall:
 3-6                 (1)  administer and enforce this chapter;
 3-7                 (2)  administer the examination prescribed by Section
 3-8     52.023;
 3-9                 (3) [(2)]  set the amount of each fee prescribed by
3-10     this chapter, subject to the approval of the supreme court;
3-11                 (4) [(3)]  charge and collect the fees prescribed by
3-12     this chapter; [and]
3-13                 (5) [(4)]  determine the qualifications and pass on the
3-14     eligibility of each person applying for certification or
3-15     recertification;
3-16                 (6)  maintain a record of each court reporting firm or
3-17     affiliate that registers with the board as required by this
3-18     chapter; and
3-19                 (7)  issue a registration to each court reporting firm
3-20     or affiliate office that registers with the board.
3-21           (c)  The board shall maintain:
3-22                 (1)  a complete record of each board proceeding;
3-23                 (2)  a complete record of each certification issued,
3-24     renewed, or revoked; [and]
3-25                 (3)  a complete record of each registration issued,
3-26     renewed, or revoked; and
 4-1                 (4) [(3)]  a detailed statement of receipts and
 4-2     disbursements.
 4-3           SECTION 7.  The heading of Subchapter C, and title of Section
 4-4     52.021, Government Code, are amended to read as follows:
 4-5                  SUBCHAPTER C.  CERTIFICATION OF REPORTERS
 4-6           Section 52.021.  Certification Of Reporters
 4-7           SECTION 8.  Sections 52.021(g), (h), and (i), Government
 4-8     Code, 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] any 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 in Travis County.  Said action for
4-13     an injunction shall be in addition to any other action, proceeding,
4-14     or 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 applicable
4-20     to a court reporting firm.  The board may enforce this subsection
4-21     by assessing a reasonable fee against a court reporting firm.]
4-22           SECTION 9.  Section 52.026, Government Code is amended by
4-23     adding a new section to read as follows and renumbering all
4-24     subsequent sections:
4-25           Sec. 52.026.  FIRM REGISTRATION.
4-26           (a)  A firm shall not assume, offer services or use the title
 5-1     or designation "court recording firm," "court reporting firm,"
 5-2     "shorthand reporting firm," or any abbreviation, title,
 5-3     designation, words, letters, sign, card, or device tending to
 5-4     indicate that the firm is a court reporting firm or shorthand
 5-5     reporting firm, unless that firm and its affiliate offices are
 5-6     registered with the board, on a form prescribed by the board, as
 5-7     required by this Chapter.
 5-8           (b)  The board may enforce this section by seeking an
 5-9     injunction or by filing a complaint against a firm, its affiliate
5-10     office, or both that are not registered with the board in the
5-11     district court of the county in which the firm or affiliate office
5-12     is located or in Travis County.  Said action for an injunction
5-13     shall be in addition to any other action, proceeding, or remedy
5-14     authorized by law.  The board shall be represented by the attorney
5-15     general and/or the county or district attorney of this state, or
5-16     counsel designated and empowered by the board.
5-17           SECTION 10.  Sections 52.027 [6] and 52.028 [7], Government
5-18     Code, are amended to read as follows:
5-19           Sec. 52.027 [6].  REPORTER CERTIFICATION AND FIRM
5-20     REGISTRATION FEE AND RENEWAL.
5-21           (a)  A person who receives certification as a shorthand
5-22     reporter or a shorthand reporting firm that is registered by the
5-23     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
6-22     outstanding fines. Reinstatement under this subsection expires on
6-23     January 1 nearest the second anniversary of the reinstatement.
6-24           Sec. 52.028 [7].  VERIFIED COMPLAINT.  (a)  To file a
6-25     complaint against a certified shorthand reporter or a shorthand
6-26     reporting firm or affiliate office, a person must:
 7-1                 (1)  have personal knowledge of the alleged violations;
 7-2                 (2) [(1)]  complete a complaint form provided by the
 7-3     board;
 7-4                 (3) [(2)]  sign the completed form under oath; and
 7-5                 (4) [(3)]  attach any pertinent documentary evidence to
 7-6     the form.
 7-7           (b)  On receipt of a properly executed complaint, the board
 7-8     shall furnish a copy of the complaint and any attachments to the
 7-9     [certified] shorthand reporter or shorthand reporting firm or
7-10     affiliate office that [who] is the subject of the complaint.
7-11           (c)  This section does not preclude the board in its
7-12     discretion, or any court of this state, from filing a complaint
7-13     against a certified shorthand reporter or a shorthand reporting
7-14     firm.
7-15           SECTION 11.  Section 52.029 [8] (b), Government Code, is
7-16     amended to read as follows:
7-17           (b)  Immediately after setting the date for the hearing, the
7-18     board shall notify the shorthand reporter or shorthand reporting
7-19     firm or its affiliate office that [who] is the subject of the
7-20     complaint.  The notice must state the cause of any contemplated
7-21     disciplinary action and the time and place of the hearing.  The
7-22     notice shall be mailed to the registered address of the shorthand
7-23     reporter or shorthand reporting firm or its affiliate office not
7-24     later than the 30th day before the date on which the hearing is
7-25     scheduled.
7-26           SECTION 12.  Section 52.030 [29], Government Code, is amended
 8-1     to read as follows:
 8-2           Sec. 52.030 [29].  Disciplinary Actions Against Court
 8-3     Reporters
 8-4           (a)  After receiving a verified complaint and giving the
 8-5     certified shorthand reporter notice and an opportunity for a
 8-6     hearing as prescribed by Section 52.028, the board may revoke or
 8-7     suspend the shorthand reporter's certification or issue a reprimand
 8-8     to the reporter for:
 8-9                 (1)  fraud or corruption;
8-10                 (2)  dishonesty;
8-11                 (3)  willful or negligent violation or failure of duty;
8-12                 (4)  incompetence;
8-13                 (5)  fraud or misrepresentation in obtaining
8-14     certification;
8-15                 (6)  a final conviction of a criminal offense involving
8-16     moral turpitude that indicates a clear and rational likelihood that
8-17     the reporter will not properly discharge the responsibilities of a
8-18     certified shorthand reporter;
8-19                 (7)  engaging in the practice of shorthand reporting
8-20     using a method for which the reporter is not certified;
8-21                 (8)  engaging in the practice of shorthand reporting
8-22     while certification is suspended;
8-23                 (9)  unprofessional conduct, including giving directly
8-24     or indirectly, benefitting from, or being employed as a result of
8-25     any gift, incentive, reward, or anything of value to attorneys,
8-26     clients, or their representatives or agents, except for nominal
 9-1     items that do not exceed $50 [25] each transaction and $100 [50] in
 9-2     the aggregate for each recipient each year;
 9-3           (10)  entering into or providing services under a prohibited
 9-4     contract described by Section 52.034 of this Act; or
 9-5           (11)  other sufficient cause.
 9-6           SECTION 13.  Adding a New Section 52.031, Government Code.
 9-7           Sec. 52.031.  Disciplinary Actions Against Firms.
 9-8           (a)  After receiving a verified complaint and giving the
 9-9     shorthand reporting firm or its affiliate office notice and an
9-10     opportunity for a hearing, as prescribed by Section 52.028, the
9-11     board may suspend or revoke a shorthand reporting firm or its
9-12     affiliate office's registration or issue a reprimand for:
9-13                 (1)  fraud or corruption;
9-14                 (2)  dishonesty;
9-15                 (3)  a pattern of conduct on the part of an officer,
9-16     director, or managerial employee of the shorthand reporting firm or
9-17     its affiliate if the officer, director or managerial employee
9-18     orders, encourages, or permits conduct that the officer, director,
9-19     or managerial employee knew or should have known was violative of
9-20     this Act;
9-21                 (4)  a pattern of conduct on the part of an officer,
9-22     director, managerial employee or agent of the shorthand reporting
9-23     firm or its affiliate who has direct supervisory authority and
9-24     knows or should have known of the other person's violations of this
9-25     chapter and knowingly fails to take reasonable remedial action to
9-26     avoid or mitigate the consequences of the person's actions;
 10-1                (5)  fraud or misrepresentation in obtaining
 10-2    registration;
 10-3                (6)  an officer, director, or managerial employee of a
 10-4    shorthand reporting firm or its affiliate having been convicted of
 10-5    a felony or misdemeanor that is directly related to the provision
 10-6    of court reporting services;
 10-7                (7)  engaging the services of a reporter that the
 10-8    shorthand reporting firm or affiliate office knew or should have
 10-9    known was a method for which the reporter is not certified;
10-10                (8)  knowingly engaging in the practice of court
10-11    reporting services while the shorthand reporting firm or its
10-12    affiliate office's registration is suspended or engaging the
10-13    services of a reporter whose certification the shorthand reporting
10-14    firm or its affiliate office knew or should have known was
10-15    suspended;
10-16                (9)  entering into or providing services under a
10-17    prohibited contract described by Section 52.035 of this Chapter; or
10-18                (10)  other sufficient cause.
10-19                (c)  The board may suspend the registration of a
10-20    shorthand reporting firm or its affiliate office:
10-21                (1)  for a designated period of time; or
10-22                (2)  until the shorthand reporting firm or affiliate
10-23    office corrects the deficiencies that were the grounds for the
10-24    suspension; or
10-25                (3)  until the shorthand reporting firm or its
10-26    affiliate office complies with any conditions imposed by the board
 11-1    to ensure the shorthand reporting firm or its affiliate office's
 11-2    future performance.
 11-3          (d)  A suspended shorthand reporting firm or affiliate office
 11-4    may apply for reinstatement by presenting proof that:
 11-5                (1)  the designated time has expired;
 11-6                (2)  the shorthand reporting firm or affiliate office
 11-7    has corrected the deficiencies; or
 11-8                (3)  the shorthand reporting firm or affiliate office
 11-9    has complied with the conditions imposed by the board.
11-10          (e)  On its own motion, the board may conduct a hearing to
11-11    inquire into a suspension.  If the board finds that a shorthand
11-12    reporting firm or affiliate office has not corrected the
11-13    deficiencies that were the grounds of the suspension or has not
11-14    complied with the conditions imposed by the board, the board may
11-15    revoke the registration of the shorthand reporting firm or its
11-16    affiliate office.
11-17          SECTION 14.  Section 52.031 [0], Government Code, is amended
11-18    to read as follows:
11-19          Sec. 52.031 [0].  APPEAL OF DISCIPLINARY ACTION.  An
11-20    aggrieved person, shorthand reporting firm or affiliate office may
11-21    appeal a disciplinary action of the board to a district court in
11-22    Travis County or in the county of the person's residence or in the
11-23    county in which the shorthand reporting firm or affiliate office is
11-24    located.  The appeal shall be by trial de novo, with or without a
11-25    jury.  If the aggrieved person is or the shorthand reporting firm
11-26    or affiliate office provides the official or deputy court reporter
 12-1    of the court in which the appeal will be heard, the presiding judge
 12-2    of the administrative judicial region shall appoint the judge of
 12-3    another court or a retired judge to hear and determine the
 12-4    complaint.
 12-5          SECTION 15.  The Court Reporters Certification Board shall
 12-6    issue a registration as required by Section 52.013(a)(7),
 12-7    Government Code, as added by this Act, to each court reporting firm
 12-8    or affiliate that registered with the board as required by Section
 12-9    52.026 [21(h)], Government Code, before the effective date of this
12-10    Act.
12-11          SECTION 16.  This Act takes effect September 1, 2001.