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 SB 1474 (Hancock) Page 1 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 SB 1474 (Hancock) Page 2 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, SB 1474 (Hancock) Page 3 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. SB 1474 (Hancock) Page 4