BILL ANALYSIS �
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 24, 2012 Consultant: Jolie Onodera
SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
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 cost savings to various counties and courts to
the extent fewer grand juries are empaneled in individual
counties for financial crimes than otherwise would have been
impaneled under existing law.
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
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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
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
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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,
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
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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.
Author's amendments would do the following:
Specify that when impaneling a special grand jury, the
AG shall use an existing, regularly empaneled grand jury to
serve as the special grand jury, and would make
arrangements with the grand jury coordinator in the
applicable county, or with the presiding judge or whoever
is charged with scheduling the grand jury hearings, in
order to ensure orderly coordination and use of the grand
jurors' time for both regular grand jury duties and special
grand jury duties.
Remove the provision assessing a $500 fine on a
defendant convicted on charges brought by a special grand
jury to be transmitted to the Attorney General's Special
Grand Jury Fund.
Make other minor, technical changes.
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