BILL ANALYSIS Ó SB 1087 Page 1 Date of Hearing: June 8, 2016 ASSEMBLY COMMITTEE ON JUDICIARY Mark Stone, Chair SB 1087 (Anderson) - As Amended May 26, 2016 PROPOSED CONSENT SENATE VOTE: 39-0 SUBJECT: EVIDENCE: PRODUCTION OF RECORDS KEY ISSUE: sHOULD BUSINESS RECORDS THAT ARE CERTIFIED AS ORIGINAL BY THE CUSTODIAN OF THOSE RECORDS AND PRODUCED IN RESPONSE TO A SEARCH WARRANT, SIMILAR TO RECORDS PRODUCED IN RESPONSE TO A SUBPOENA DUCES TECUM, BE ADMITTED INTO EVIDENCE WITHOUT THE NECESSITY OF A LIVE WITNESS APPEARING IN COURT TO VERIFY THE AUTHENTICITY OF THE RECORDS? SYNOPSIS This bill, sponsored by the California District Attorneys Association, seeks to address a procedural problem faced by prosecutors who obtain records needed in a criminal prosecution via search warrant prior to criminal charges being filed. According to the author, when a prosecuting office is doing a criminal investigation, most business records are obtained via search warrant because there is very limited ability to obtain SB 1087 Page 2 business records prior to criminal charges being filed. While a subpoena duces tecum, which requires the custodian of records to send records to the court with an affidavit of authenticity and allows those records to be admitted into evidence, can be issued after a civil or criminal case is filed, a search warrant can be used prior to a case being filed. However, current law does not allow business records that are copied and produced in response to a search warrant to be admitted into evidence with an affidavit, requiring prosecutors to request (and businesses to copy and provide) records again via a subpoena duces tecum prior to trial, which is a waste of time and resources. This bill would allow this same procedure to be used for the production of records pursuant to a search warrant and would make other clarifying changes throughout these sections. This bill would leave in place the current distinction in the law between costs for copying and producing records that are reimbursed when the records are produced via subpoena in civil cases, but not reimbursed when the records are produced via subpoena or search warrant in criminal cases. But as a practical matter, the bill could have a positive impact on businesses because they should only have to copy and provide records one time: when they receive a search warrant for the records. Also, recent amendments clarify that this bill does not expand the legal basis for issuance of a search warrant. This bill is supported by Alameda County District Attorney Nancy O'Malley and has no known opposition. SUMMARY: Authorizes a custodian of business records to comply with a search warrant for certain business records in the same manner as a subpoena duces tecum. Specifically, this bill: 1)Provides that if a search warrant for business records is served upon the custodian of records or other qualified SB 1087 Page 3 witness of a business in compliance with Section 1524 of the Penal Code regarding a criminal investigation in which the business is neither a party nor the place where any crime is alleged to have occurred, it is sufficient compliance with the subpoena for the custodian or other qualified witness to deliver by mail a copy of all of the records described in the search warrant to the law enforcement agency ordered to execute the search warrant, together with the affidavit regarding the authenticity of the records, within five days after the receipt of the search warrant or within such other time as is set forth in the warrant. 2)Makes the copies produced in response to the subpoena admissible in court to the same extent as the original records. EXISTING LAW: 1)Specifies certain circumstances that allow for issuance of a search warrant, including (1) When the property was stolen or embezzled, and (2) When the property or things were used as the means of committing a felony, among others. (Penal Code Section 1524 (a).) 2)Provides that when a subpoena duces tecum (SDT) is served upon the custodian of records of a business in an action in which the business is neither a party, nor the place where the action is alleged to have taken place, it is sufficient compliance with the SDT for the custodian or other qualified witness to deliver a true, legible and durable copy of all the records described in the SDT to the clerk of the court together with an affidavit within a specified time period: a) In any criminal action, five days after the receipt of SB 1087 Page 4 the subpoena. b) In any civil action, within 15 days after the receipt of the subpoena. c) Within the time agreed upon by the party who served the subpoena and the custodian or other qualified witness. (Evidence Code Section 1560. All further statutory references are to the Evidence Code, unless otherwise indicated.) 3)Requires the records to be accompanied by an affidavit of the custodian or other qualified witness, stating certain information, including all of the following: a) The affiant is the duly authorized custodian of the records or other qualified witness and has authority to certify the records. b) The copy is a true copy of all the records described in the subpoena duces tecum or, pursuant to specified law, the records were delivered to the attorney, the attorney's representative, or deposition officer for copying at the custodian's or witness' place of business. c) The records were prepared by the personnel of the business in the ordinary course of business at or near the time of the act, condition, or event. (Section 1561 (a).) 4)Provides that if the original records would be admissible in evidence if the custodian or other qualified witness were present and testified in matters stated in an affidavit SB 1087 Page 5 accompanying copies of business records, then the affidavit is admissible as evidence of the matters stated therein and those matters are presumed to be true; and states that the presumption established is a presumption affecting the burden of producing evidence. (Section 1562.) FISCAL EFFECT: As currently in print this bill is keyed non-fiscal. COMMENTS: According to the author, this bill seeks to address a procedural problem faced by prosecutors who obtain records needed in a criminal prosecution via search warrant prior to criminal charges being filed: When a prosecuting office is doing a criminal investigation, most business records are obtained via search warrant because there is very limited subpoena power until criminal charges are actually filed. These records are often voluminous and not stored indefinitely by the entity that produces them. In fact, it's not uncommon for records to be destroyed between the date the search warrant is executed and the time charges are eventually filed. Business records, whether produced pursuant to a subpoena or search warrant, are usually provided with an accompanying affidavit intended to comply with Evidence Code sections 1560-1562. If the records were produced in response to a subpoena, these sections govern admissibility of the records at trial without live testimony from the custodian of record. Unfortunately, since sections 1560 and 1561 only refer to the admissibility of documents obtained by subpoena and not by search warrant, the search warrant records may not be admitted at trial without testimony by the custodian of records - even if the exact same records are produced, and even if they are provided with the exact same affidavit. SB 1087 Page 6 Prosecutors then face two choices. They can rely on EC 1560 et seq for admissibility, which requires them, after filing criminal charges, to subpoena the exact same records we obtained via search warrant. If these records still exist, they must be re-copied, re-sent, and re-discovered. This is a significant expenditure of material and human resources on the part of the court, the attorneys, and the target entities of the subpoena. Alternatively, or if the records have been destroyed in the intervening period, they must procure live testimony from the custodian of records in order to make the records received in response to the search warrant admissible. This requires the target entity to incur the cost and inconvenience of sending a live witness to testify. Background. In 1959, to alleviate the burden on businesses to provide an officer or employee to testify in court regarding the authenticity of business records, the California Legislature authorized a new procedure whereby a business could introduce a copy of the subpoenaed record, with an affidavit of authenticity, in lieu of authenticating testimony. (See Section 1560 et seq.; see also 2 Witkin, Cal. Evidence, Documentary Evidence (5th ed. 2012), Sec. 51, p. 191.) While the procedure generally applies in any proceeding in which testimony can be compelled (Evid. Code Sec. 1566), it is not available if the business is a party to the action or is the place where a cause of action is alleged to have arisen (Section 1560 (b)). Under the Section 1560 procedure, upon service of a subpoena duces tecum (a writ by the court generally ordering a witness to appear and to bring specified documents, records, or things), unless the personal attendance of the custodian and production of the original records is specifically required, the custodian SB 1087 Page 7 of records or other qualified witness may deliver to the clerk (or to the judge if there is no clerk, or to the officer taking a deposition) a true, legible and durable copy of all the records described. (Section 1560 (b).) The records must also be accompanied by an affidavit of the custodian or other qualified witness, stating the facts essential to the foundation, including, among other things, that the copy is a true copy of all records described in the subpoena duces tecum or that the records were delivered to the attorney, the attorney's representative, or a deposition officer for copying at the custodian's or witness's place of business pursuant to specified law. (Section 1561(a).) This bill would allow this same procedure to be used for the production of records pursuant to a search warrant and make other clarifying changes throughout these sections. Existing rules regarding reimbursement to businesses of their expenses is not affected by this bill. Current law provides that all "reasonable costs" incurred in a civil proceeding by any witness with respect to the production of all or any part of business records the production of which is requested pursuant to a subpoena duces tecum shall be reimbursed by the party serving the subpoena duces tecum. (Section 1563 (b)(6).) Current law also specifies the fee for records that are delivered to the attorney, the attorney's representative, or the deposition officer for inspection or photocopying at the witness' place of business. (Section 1563 (b)(6).) However, current law does not provide for a similar reimbursement right when business records are prepared and delivered in response to either a criminal subpoena, or a search warrant. This bill would leave in place the current distinction in the law between the costs for copying and producing records that are reimbursed when the records are produced in civil cases, but not reimbursed when the records are produced in criminal cases. But as a practical matter, the bill is unlikely to have a significant negative fiscal impact on businesses, even if more SB 1087 Page 8 search warrants are issued for business records. In fact, it could have a positive impact because it is likely to reduce the necessity for businesses to duplicate their efforts by preparing and sending the same records twice (once in response to a search warrant issued before criminal charges are filed, and again in response to a subpoena duces tecum issued after charges are filed). Under this bill, businesses should only have to copy and provide those records one time: when they receive a search warrant for their records. Recent amendments clarify that this bill does not expand the legal basis for issuance of a search warrant. The original wording of the bill's most substantive provision, adding a new subdivision (f) to Section 1560, was very similar to the wording of subdivision (b) of that section, regarding subpoenas duce tecum (in both civil and criminal matters). However, the language was not appropriate when describing a search warrant that would only be issued in a criminal matter. Also, it could be argued that the bill created a new basis for issuance of a search warrant (for business records), which is not the intent of the author or the purpose of the bill. In order to address those concerns, recent amendments (May 26, 2016) update the language to refer to criminal matters. The May 26th amendments also state that a search warrant must be issued "in compliance with Section 1524 of the Penal Code" in order to clarify that the bill does not create a new basis for issuance of a search warrant. PAST SIMILAR LEGISLATION. AB 794 (Corbett, Chapter 444, Statutes of 1999) addressed issues of access to personal and employment records required to be made available pursuant to a subpoena duces tecum and made technical changes to various codes dealing with subpoenas. AB 2842 (Harman, Chapter 1068, Statutes of 2002) amended the deposition statutes to reflect that technology other than tapes SB 1087 Page 9 are used for audio and video storage media; allowed non-party deponents to obtain a copy of their testimony, and clarified the circumstances under which the deposition officer may go off the record. AB 3081 (Committee on Judiciary, Chapter 182, Statutes of 2004) reorganized the civil discovery statutes by dividing the statutes into short sections grouped in chapters according to subject matter and made conforming changes in cross-references to the discovery statutes in other code sections. REGISTERED SUPPORT / OPPOSITION: Support California District Attorneys Association (sponsor) Alameda County District Attorney Nancy O'Malley Opposition None on file SB 1087 Page 10 Analysis Prepared by:Alison Merrilees / JUD. / (916) 319-2334