FISCAL NOTE

Date Requested: February 12, 2019
Time Requested: 12:55 PM
Agency: Treasurer's Office, WV
CBD Number: Version: Bill Number: Resolution Number:
2837 Introduced HB3029
CBD Subject: Courts, Professions and Occupations


FUND(S):

Special Revenue

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Revenue, Creates New Expense, Creates New Program, Creates New Fund: West Virginia Court Reporters Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government. The purpose of this bill is to establish minimum requirements for court reporters; to require court reporters be licensed in this state; to establish an application procedure; to establish an application fee; to require applicants who have been convicted of a felony or a crime of moral turpitude to submit to an interview with the board; to require court reporters to renew their license every two years; to require court reporters to submit to a criminal background check to renew their license; to create the Court Reporters Fund; to require excess amounts in the fund be transferred to the General Revenue Fund; to require court reporters to file all documents related to any proceeding or for any reporting service performed with the clerk of the court; to establish penalties for failing to file all records; providing exemptions to this article; providing rule-making authority; providing for a severability clause; and providing for an effective date. This bill creates a new West Virginia Board of Court Reporters to license court reporters in West Virginia. The process includes background checks, character interviews, providing and administering examinations, collecting fees, renewing every two years, and hiring needed staff. The bill grandfathers a person working as a court reporter within the previous year and who completes the application, pays the fee and completes a background check before December 31, 2019. The West Virginia Supreme Court of Appeals will propose rules. The Court Reporters Fund is created to pay Board expenses. It appears the West Virginia Supreme Court of Appeals currently has oversight over court reporters and offers an examination, which is required for “official” court reporters and available to others desiring to be certified. We suggest the Court be contacted regarding this bill for more information. It is our understanding that there are 58 official court reporters in West Virginia, most of which have been certified by the Supreme Court. In addition to testing by the Supreme Court, there is also testing available from the National Court Reporters Association, the National Verbatim Reporters Association and the American Association of Electronic Reporters and Transcribers with fees well in excess of the $100 established in the bill. Criminal history background checks generally cost between $35 and $50. We estimate that the Board will need two persons to perform its work at a cost of $100,000 for salaries and benefits. One person would act as executive director and secretary of the Board, organize and set meetings, ensure the meetings comply with law, take minutes, etc. That person would also be responsible for daily operations of the Board, setting and administering the testing, handling inquiries, assisting applicants and licensees, ensuring renewals and collections, etc. The other person would be a temporary or part-time employee, responsible for record keeping, office operations, and performing the duties assigned. We estimate current expenses at $125,000 the first year to cover equipment (year 1 - $25,000 and $2,000 thereafter), office space, office supplies, testing and board meeting locations, telecommunications, information technology, testing materials, forms, website, travel, and Board expenses. Subsequent years the cost should be $100,000 per year. In the rare situation that a court reporter would fail to comply with §30-2B-4 of the bill, there will be investigations, hearings and other related expenses incurred in the disciplinary action, which we estimate to be $10,000 per year. As to the revenue that will be generated, the bill limits application fees to $100. Year 1, we estimate 60 court reporters will pay the application fee with most of them being grandfathered for a total of $6,000. In subsequent years, we estimate that at most 10 court reporters will want to take the test, for a total of $1,000. Fees for renewals every other year are to be set by rule. Most of the licensing boards we reviewed had annual fees on average of $200. With 60 court reporters paying $200 every other year, we estimate the income to be $12,000 every other year. The total annual estimated cost is $235,000 for year one and $210,000 thereafter. With less than 60 official court reporters in West Virginia, that would equate to annual fees in excess of $3500 per court reporter. A general revenue appropriation will be required.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 235,000 210,000 210,000
Personal Services 100,000 100,000 100,000
Current Expenses 125,000 100,000 100,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 10,000 10,000 10,000
2. Estimated Total Revenues 6,000 1,000 12,000


Explanation of above estimates (including long-range effect):


Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years. See Fiscal Note Summary.



Memorandum


Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form. See Fiscal Note Summary.



    Person submitting Fiscal Note: Diana Stout
    Email Address: diana.stout@wvsto.com