BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          SB 1474 (Hancock) - Grand jury proceedings: Attorney General 
          powers and duties.
          
          Amended: April 11, 2012         Policy Vote: Public Safety 7-0
          Urgency: No                     Mandate: No
          Hearing Date: May 7, 2012       Consultant: Jolie Onodera
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: SB 1474 would authorize the Attorney General (AG) 
          to impanel a special grand jury in specified counties to 
          investigate, consider, or issue indictments in matters in which 
          there are multiple activities, in which fraud or theft is a 
          material element, that have occurred in more than one county and 
          conducted either by a single defendant or multiple defendants 
          acting in concert.

          Fiscal Impact: 
              Potential costs in the range of $100,000 to $275,000 
              (General Fund) for multiple week-long special grand juries 
              or one 18-month special grand jury to the Department of 
              Justice (DOJ) to reimburse the county for special grand jury 
              activities, assuming standard grand jury reimbursement 
              rates. Total annual costs would be dependent upon the 
              number, duration and location of special grand juries 
              convened, as well as any alternative agreement between the 
              AG and county.

              Potential significant annual costs to the Judicial Branch 
              for grand juror selection and recruitment to the extent 
              reimbursement by the DOJ is not authorized. Additionally, 
              significant court staff workload and facilities costs could 
              also be incurred. Reimbursement of these costs would result 
              in a cost shift from the Judicial Council to the DOJ.

              Potential cost savings to various counties and courts to 
              the extent fewer grand juries are empaneled in individual 
              counties for financial crimes crossing multiple 
              jurisdictions.

              Minor annual revenue of $50,000 per 100 convicted 








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              defendants on charges brought by a special grand jury to the 
              AG Special Grand Jury Fund.

          Background: Existing law provides that when a public offense is 
          committed in part in one jurisdictional territory and in part in 
          another, or the acts or effects of the offense occur in two or 
          more jurisdictional territories, the jurisdiction of such 
          offense is in any competent court within either jurisdictional 
          territory. This bill provides that the special grand jury 
          created by this bill is an exception to the stated general rule 
          regarding jurisdiction when an offense occurs in more than one 
          county and will allow the AG to convene a special grand jury for 
          the investigation and indictment of financial crimes involving 
          victims in multiple jurisdictions.
          Proposed Law: This bill would authorize the AG to convene a 
          special grand jury, with or without the concurrence of the 
          district attorney, to investigate, consider, or issue 
          indictments in cases involving fraud or theft that have occurred 
          in more than one county and conducted either by a single or 
          multiple defendants acting in concert. Specifically, a special 
          grand jury:

                 May be impaneled in the counties of Fresno, Los Angeles, 
               Sacramento, San Diego, or San Francisco.
                 Shall serve for a term of 18 months unless dismissed 
               earlier by the AG. Upon notice by the AG, a special grand 
               jury's term can be extended by up to six months.
                 Is subject to the number of grand jurors required by the 
               size of a county, qualifications of grand jurors, and 
               number of grand jurors necessary for an indictment as 
               specified under existing law.
                 May indict persons with charges for crimes that occurred 
               in counties other than where the special grand jury is 
               impaneled. The indictment shall then be submitted to the 
               appropriate court in any of the counties where the charges 
               could otherwise have been brought.
                 The AG's office shall be responsible for prosecuting an 
               indictment produced by the special grand jury.
                 Must comply with the provision requiring the prosecutor 
               to present exculpatory evidence to the grand jury.
                 Shall be in addition to any other grand juries 
               authorized.

          This bill provides that upon certification by the AG, a 








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          statement of costs directly related to impanelment and 
          activities of the grand jury shall be submitted for state 
          reimbursement of the costs to the county. To be reimbursed, the 
          costs charged to the AG for activities related to the grand jury 
          shall be itemized and no more than what would be charged to a 
          regularly impaneled grand jury convened by the county, unless an 
          alternative arrangement is agreed upon by the county and the AG. 


          This bill would require a convicted defendant to pay a fine of 
          $500 which shall be transferred to the AG's Special Grand Jury 
          Fund, a new fund established in the State Treasury, to be used 
          upon appropriation by the Legislature.

          Related Legislation: AB 1763 (Davis) 2012 is identical to this 
          measure. This bill has been referred to the Assembly Committee 
          on Appropriations.

          AB 1854 (Garrick) 2008 would have authorized a second criminal 
          grand jury for San Diego County. This bill was referred to the 
          Senate Committee on Public Safety without further action.

          SB 796 (Runner) Chapter 82/2007 authorized a second criminal 
          grand jury for Los Angeles County.

          Staff Comments: To the extent a special grand jury is impaneled, 
          this bill will result in increased costs to the courts and the 
          DOJ. Costs would be dependent on the number, duration, and 
          location of special grand juries impaneled. A special grand jury 
          convened in Los Angeles County would require 23 grand jurors, 
          while special grand juries convened in the other specified 
          counties would require 19 grand jurors. The standard, statutory 
          fee for a grand juror is $15 per day and mileage reimbursement 
          for travel to and from the site of the grand jury. For a 
          standard county grand jury, fees are paid out of the county 
          general fund. This bill would require the DOJ to provide 
          reimbursement to the counties for costs related to the 
          activities of the grand jury.

          Based on a grand jury session of 18-months, grand jury per diem 
          costs could range from $225,000 to $275,000 depending on the 
          county. Should the special grand jury be extended an additional 
          six months, costs could increase to $350,000 in Los Angeles 
          County. In addition to the daily grand juror fee of $15, 








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          estimated costs assume a standard mileage reimbursement rate of 
          $0.55 per mile and 25 miles per juror, as well as court reporter 
          fees for witness transcriptions. These costs do not include the 
          costs to the court for impaneling the special grand jury. Staff 
          notes the estimated special grand jury costs could ultimately be 
          potentially higher/lower, as the bill authorizes reimbursement 
          to the counties under an alternative arrangement to the standard 
          grand jury rates if agreed upon by the county and the AG.

          As currently drafted, Penal Code section 923 specifies the 
          county will be reimbursed for costs directly related to the 
          impaneling and activities of the grand jury, but does not 
          specify the courts will be reimbursed for their costs. 
          Notwithstanding the reimbursement of jury recruitment and 
          selection costs, the Judicial Council indicates a potentially 
          significant administrative impact , and therefore potential 
          costs, to the courts as well.

          Of the five authorized courts, both Los Angeles and Fresno 
          superior courts have indicated to the Judicial Council that they 
          would not have suitable space for the special grand jury to 
          meet, regardless of cost reimbursement. Moreover, all five 
          courts have identified the time required to issue additional 
          summonses and identify pools of potential grand jurors available 
          to serve for 18- to 24-months would impose significant 
          additional workload and duties upon court staff.

          To the extent impaneling a special grand jury would reduce the 
          need for separate grand juries across multiple jurisdictions, 
          significant cost savings to individual counties and courts could 
          result.
          
          Recommended Amendments: As currently drafted, the amendments to 
          Penal Code section 923 specify reimbursement to the  county  for 
          costs directly related to the impaneling and activities of the 
          special grand jury, based on an itemized statement provided by 
          the judge. In order to ensure that courts are reimbursed for 
          their costs, staff recommends an amendment to clarify that the 
          courts will be reimbursed for their costs as well.
           
           











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