BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1087


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          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  








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          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  








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            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  








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               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  








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            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.








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            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  








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          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  








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          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  








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          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












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          Analysis Prepared by:Alison Merrilees / JUD. / (916)  
          319-2334