SSB 3041 (LSB 5349XD (4) 85)

SENATE/HOUSE FILE _____

BY  (PROPOSED JUDICIAL BRANCH BILL)

A BILL FOR

An Act relating to the ethical standards of certified shorthand reporters and shorthand reporting firms.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  602.3204  Ethical standards for shorthand reporters and shorthand reporting firms.
   1.  Definitions.  As used in this section, unless the context otherwise requires:
   a.  “Board” means board of examiners of shorthand reporters.
   b.  “Proceeding” means a court proceeding, deposition, administrative hearing, arbitration hearing, an examination under oath, a sworn statement, or any other proceeding where the reporting services of a shorthand reporter certified by the board is used.
   c.  “Shorthand reporter” means a shorthand reporter certified by the board.
   d.  “Shorthand reporting firm” means a shorthand reporting firm that employs or contracts with a shorthand reporter certified by the board, or an entity that bills for the reporting services of such a shorthand reporter.
   2.  Purpose of standards.  The purpose of this section is to ensure the integrity of the record and comparable treatment of all parties in proceedings reported by a shorthand reporter, by establishing ethical standards for shorthand reporters and shorthand reporting firms. A shorthand reporter serves as an officer of the court. The appearance and existence of impartiality are no less important for officers who report proceedings than they are for the judicial officers and other persons whose responsibilities are integral to the fair and impartial administration of justice.
   3.  Applicability.  This section applies to shorthand reporting services performed by a shorthand reporter or shorthand reporting firm under the following circumstances:
   a.  Any proceeding in the courts of this state.
   b.  Any proceeding that may be presented to a court in this state for resolution.
   c.  Any proceeding in the courts of another state and reported using the services of a shorthand reporter certified by the board, but only to the extent this section does not conflict with the laws or rules of the other state.
   d.  Any other proceeding that may be presented to a court of another state for resolution, and is reported using the services of a shorthand reporter certified by the board, but only to the extent this section does not conflict with the laws or rules of the other state.
   4.  Duties.  Before accepting a reporting engagement or assignment, a shorthand reporter or shorthand reporting firm is obligated to make reasonable efforts to ascertain whether any circumstances exist that would violate this section.
   5.  Conflicts of interest.
   a.  A proceeding shall not be reported by a party or employee of a party, a person financially interested in the proceeding, an attorney or an employee of an attorney for a party, or a person related within the fourth degree of consanguinity or affinity to a party, a party’s attorney, or an employee of a party or party’s attorney.
   b.  The compensation of a shorthand reporter or a shorthand reporting firm shall not be based or contingent upon the outcome of the proceeding.
   c.  A shorthand reporter or a shorthand reporting firm shall not acquire a financial interest in the proceeding.
   d.  A shorthand reporter or shorthand reporting firm shall not provide additional advocacy or litigation support services in a proceeding reported by the shorthand reporter or shorthand reporting firm, including but not limited to trial preparation assistance or deposition summaries.
   6.  Integrity of transcripts.
   a.  The supreme court, with the advice of the board, shall adopt rules prescribing the format of transcripts subject to this section. The rules adopted by the supreme court shall apply whether the transcript is produced in print or electronic format. If the format of a transcript materially varies from the format adopted by the supreme court, the parties to the proceeding shall not be required to pay any fee for the transcript.
   b.  The supreme court, after consultation with the board, shall also adopt rules establishing dissemination standards to protect the integrity of transcripts subject to this section.
   7.  Fair and reasonable treatment of parties.
   a.  A shorthand reporter or shorthand reporting firm shall not enter into an agreement for reporting services which provide special or different financial terms or payment dates or other services that are not offered to all other parties in the proceeding. However, different credit terms may be offered based on payment history and credit worthiness of a party to a proceeding.
   b.  Upon the request of a party to a proceeding, the shorthand reporter or shorthand reporting firm shall provide the requesting party an itemized disclosure of all rates and charges for the services performed during the proceeding. The supreme court, after consultation with the board, shall adopt rules prescribing the form to be used for such a disclosure. If the disclosure is not provided, or if the disclosure is not provided in sufficient time to allow all parties the opportunity to effectively negotiate for any changes necessary to ensure that comparable terms and conditions be made available to all parties, the fee for the original transcript, any copy of the transcript, or of any incidental services shall not exceed the fee set by the supreme court by rule after consultation with the board.
   c.  A shorthand reporter or shorthand reporting firm shall not charge a fee for a copy of a transcript that exceeds sixty percent of the fee charged for the original transcript. In all cases, fees for incidental services other than the original transcript or a copy of a transcript shall be billed at the same rate for all parties.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to the ethical standards of certified shorthand reporters and shorthand reporting firms.
   The bill defines “shorthand reporter” to mean a shorthand reporter certified by the Iowa board of examiners of shorthand reporters.
   The bill defines “shorthand reporting firm” to mean a shorthand reporting firm that employs or contracts with a certified shorthand reporter, or an entity that bills for the reporting services of a certified shorthand reporter.
   The bill also defines “proceeding” to mean a court proceeding, deposition, administrative hearing, arbitration hearing, an examination under oath, a sworn statement, and any other proceeding where the services of a certified shorthand reporter are used.
   The bill applies ethical standards to any proceeding in the courts of Iowa; any proceeding that may be presented to an Iowa state court for resolution; any proceeding in the court of another state and reported using an Iowa certified shorthand reporter, but only to the extent the provisions of the bill do not conflict with the laws or rules of the other state; and any proceeding that may be presented in the court of another state and reported using an Iowa certified shorthand reporter, but only to the extent the provisions of the bill do not conflict with the laws or rules of the other state.
   Under the bill, a proceeding shall not be reported by a party or employee of any party, a person financially interested in the proceeding, an attorney or an employee of an attorney for any party, or any person related within the fourth degree of consanguinity or affinity to a party, a party’s attorney, or an employee of such a party or attorney.
   The bill prohibits the compensation of a shorthand reporter or a shorthand reporting firm based or contingent upon the outcome of the proceeding being reported. The bill also prohibits a shorthand reporter or a shorthand reporting firm from acquiring a financial interest in any such proceeding. Under the bill, a shorthand reporter or shorthand reporting firm shall not provide additional advocacy or litigation support services in a proceeding reported by the reporter, including but not limited to trial preparation assistance or deposition summaries.
   The supreme court, with the advice of the board of examiners for shorthand reporters, shall adopt rules prescribing the format of transcripts subject to the bill. The rules adopted by the supreme court shall apply whether the transcript is produced in print or electronic format. The bill also provides that if the format of a transcript materially varies from the format adopted by the supreme court, the parties to the proceeding shall not be required to pay any fee for the transcript. The bill also requires the supreme court, in consultation with the board, to adopt rules establishing dissemination standards to protect the integrity of transcripts.
   The bill provides that a shorthand reporter or shorthand reporting firm shall not enter into an agreement for reporting services which provide special or different financial terms or payment dates, or other services that are not offered to all other parties in a proceeding. The bill does permit a shorthand reporter or shorthand reporting firm to offer different credit terms based on payment history and credit worthiness of a party to a proceeding.
   Upon the request of any party to a proceeding, the bill requires a shorthand reporter or shorthand reporting firm to provide the requesting party an itemized disclosure of all rates and charges for the services performed during the proceeding. If a requested itemized disclosure is not provided, or if the disclosure is not provided in a sufficient time, the bill requires that the fee for the original transcript, a copy of the transcript, or of any incidental services shall not exceed the fees that are set out by rule by the supreme court. The bill requires the supreme court to consult with the board of examiners of shorthand reporters prior to establishing this rule.
   The bill specifies that a shorthand reporter or shorthand reporting firm shall not charge a fee for a copy of a transcript that exceeds 60 percent of the fee charged for the original transcript. The bill further specifies that fees for incidental services other than the original transcript or a copy of a transcript shall be billed at the same rate for all parties to a proceeding.
   A person who violates article 3 of Code chapter 602 (certification and regulation of shorthand reporters) commits a simple misdemeanor pursuant to Code section 602.3302.