Shorthand ReportersShorthand Reporting Corporations
Section § 8040
A shorthand reporting corporation can offer services if it follows specific rules in California, including having all certified shorthand reporters in compliance with professional standards. The Court Reporters Board of California is the agency that oversees them under a specific act.
Section § 8042
This law states that it's considered unprofessional behavior for a licensed person to break or try to break any rules of this chapter, the Moscone-Knox Professional Corporation Act, or related regulations, whether directly or indirectly. Helping or planning with others to break these rules is also prohibited.
Section § 8043
If a shorthand reporting company uses a specific name or operates under another, the name must include the last name of current, future, or former shareholders, or people associated with a previous organization. It must also contain either the phrase 'shorthand reporting corporation,' the title 'certified shorthand reporter' or 'C.S.R.,' or indicate it is 'a professional corporation.'
Section § 8044
In a shorthand reporting corporation, every director, shareholder, and officer must have the appropriate license as described in another part of the Corporations Code, unless a specific exception applies.
Section § 8045
If someone owns part of a shorthand reporting corporation but becomes disqualified from practicing, any income generated from professional services while they are disqualified cannot benefit them through their shares in the company.
Section § 8046
This law says that shorthand reporting corporations must follow the same professional conduct rules as individual shorthand reporters. They can't do anything that would be considered unprofessional for licensed reporters according to current or future laws.
Section § 8047
This law allows the board to set up rules for shorthand reporting corporations. It requires these corporations' rules to cover what happens to stocks owned by people who can't be shareholders anymore, like if someone dies or is disqualified. These shares must be sold back to the company or to other shareholders within a set time. Additionally, to get a certification, these corporations must have insurance or another form of security to protect clients from mistakes made during their services.
Section § 8050
This law aims to better regulate licensed shorthand reporters and their corporations by implementing penalties to maintain high standards and fair competition. It applies to any individual or entity involved in shorthand reporting activities within California, with some exceptions like licensed individuals or corporate entities already complying with certain sections. The law prohibits unfair practices such as charging inappropriate fees, providing transcripts only to one party beforehand, or failing to inform all parties of transcript requests. Lawbreakers can be fined up to $10,000 per offense. Prosecutors can sue violators for civil relief and can recover attorney fees if they win. This law goes into effect on January 1, 2025.
Section § 8051
Starting July 1, 2022, businesses in the U.S. that aren't shorthand reporting corporations can provide shorthand reporting services if registered with the board. To register, they must pay a fee, have a board-certified reporter-in-charge residing in California, and agree to comply with state shorthand reporting laws, except for certain sections. They must also disclose any prior enforcement actions or misconduct settlements over $50,000 related to court reporting. The board reviews registrations within 90 days and can deny them if there's a public risk. Registrations last one year and can be renewed. If the reporter-in-charge leaves, the entity must quickly propose a new one. Registrations can be revoked if entities break laws or encourage illegal behavior. An entity has the right to a hearing if denied or revoked registration. Certificate holders must verify that entities are registered before working with them. The board keeps an online directory of registered entities and can regulate the industry until January 1, 2029, when this law ceases.