BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 16
          Author:   Gaines (R)
          Amended:  5/21/13
          Vote:     27 - Urgency

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  7-0, 5/15/13
          AYES:  Wolk, Knight, Beall, DeSaulnier, Emmerson, Hernandez, Liu

           SENATE APPROPRIATIONS COMMITTEE  :  6-0, 1/23/14
          AYES:  De Le�n, Gaines, Hill, Lara, Padilla, Steinberg
          NO VOTE RECORDED:  Walters


           SUBJECT  :    Administration of justice:  county costs:   
          nonhomicide criminal trials

           SOURCE  :     Nevada County


           DIGEST  :    This bill authorizes a county that is responsible for  
          the defense costs of a trial or hearing of a person charged with  
          a nonhomicide crime to apply to the State Controller for  
          reimbursement of the costs incurred by the county in excess of  
          the amount of money derived by the county from a tax of 0.0125  
          of 1% of the full value of property assessed for purposes of  
          taxation within the county.   This authority applies only to  
          trials beginning on or after January 1, 2012, for which the  
          Attorney General (AG) is handling the investigation and  
          prosecution of a nonhomicide crime.

           ANALYSIS  :    Existing law authorizes counties to apply to the  
          Controller for reimbursement of homicide trial and hearing costs  
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          that exceed a specified percentage of assessed property value in  
          the county.  Counties may apply to the Controller's Office (SCO)  
          for reimbursement of homicide investigation and trial costs that  
          exceed the amount of money that would be derived by a tax of  
          0.0125 of 1% of the full value of assessed property in the  
          county (AB 2866, Migden, Chapter 127, Statutes of 2000).  

          This bill authorizes a county that is responsible for the  
          defense costs of a trial or hearing of a person charged with a  
          nonhomicide crime to apply to the Controller for reimbursement  
          of the costs incurred by the county in excess of the amount of  
          money derived by the county from a tax of 0.0125 of 1% of the  
          full value of property assessed for purposes of taxation within  
          the county.  This authority applies only to trials beginning on  
          or after January 1, 2012, of a person charged with a nonhomicide  
          crime, when the AG is handling the investigation and prosecution  
          due to the scope and complexity of the case, and not when a  
          district attorney has been recused for a conflict of interest or  
          for any other reason unrelated to the scope and complexity of  
          the case.

          This bill defines "costs incurred by the county" as all costs,  
          except normal salaries and expenses, incurred by the county in  
          defending at trial, including the trial of, a person for the  
          offense of a nonhomicide crime.  Trial defense costs include:

             Costs, except normal salaries and expenses, incurred by the  
             public defender in investigation and defense. 

             All pretrials, hearings, and postconviction proceedings.

          With specified exceptions, this bill prohibits reimbursements  
          for:

             Costs that exceed the California Victim Compensation and  
             Government Claims Board's standards for travel and per diem  
             expenses.

             Travel in excess of 1,000 miles on any single round trip.

          This bill requires that, subject to appropriation by the  
          Legislature, reimbursement funds must be available for three  
          fiscal years from the date of the appropriation.  After three  
          years unused funds revert back to the state General Fund (GF).

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          This bill requires the Controller, subject to appropriation by  
          the Legislature, to provide reimbursement for specified defense  
          costs of attorneys or investigators if the venue for trial of a  
          nonhomicide criminal case is changed from a county that is  
          eligible for reimbursement to another county.

          If a county that is eligible for reimbursement applies to the  
          Controller, and the Controller determines that the reimbursement  
          meets the provisions of state law, this bill requires the  
          Controller to request that the Director of the Department of  
          Finance include any amounts necessary in a request for a  
          deficiency appropriation in augmentation of the emergency fund.

          This bill authorizes the Controller to adopt rules and  
          regulations to carry out the bill's purposes.

           Background

           The Legislature adopted the policy of reimbursing counties for  
          extraordinary costs related to homicide trials in 1961 in order  
          to provide uniform administration of justice throughout the  
          state, to prevent homicide trials from being hampered or delayed  
          due to lack of funds available to counties for such purposes, to  
          prevent serious impairment of county finances by homicide  
          trials, and to provide state assistance in emergency situations.  
           According to the SCO, five counties have qualified for over $1  
          million in reimbursement from the state GF over the past three  
          fiscal years for costs associated with 10 homicide trials.

          The United States Supreme Court's opinion in Gideon v.  
          Wainwright (1963) held that the U.S. Constitution's Sixth  
          Amendment guarantee of counsel is a fundamental right which  
          applies to all state criminal prosecutions.  Existing law  
          requires that counsel must be provided at public expense to an  
          indigent defendant charged with any felony or misdemeanor.  

          In Nevada County, on September 20, 2012, four suspects were  
          arrested and charged with securities fraud, conspiracy, and  
          elder abuse for operating a Ponzi scheme that allegedly bilked  
          dozens of investors of over $2.3 million.  The arrests were the  
          result of an investigation conducted by the State Department of  
          Justice's Special Crimes Unit (SCU), which coordinates the  
          investigation and prosecution of crimes involving large-scale,  

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          investment and financial frauds, public corruption cases, and  
          high-tech crimes where the scope and complexity of offenses  
          exceed the investigative and prosecutorial resources of local  
          law enforcement and other state agencies.  The criminal case is  
          being prosecuted by the Attorney General's Mortgage Fraud Strike  
          Force.  Nevada County has a very small public defenders office  
          with limited resources.  County officials indicate that costs to  
          provide counsel for indigent defendants in such a major and  
          complex real estate fraud case could have a severe impact on the  
          county's finances.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

             Unknown, potentially significant GF costs in a given fiscal  
             year in which an authorized claim is received.  It is likely  
             that claims will be intermittent and would not exceed  
             hundreds of thousands in costs in a given year.  Costs would  
             depend upon the number of cases investigated and prosecuted  
             by the AG that result in significant indigent defense costs  
             for an affected county that exceed the threshold for  
             reimbursement.  

             Minor and absorbable costs to the SCO, assuming very few  
             claims are submitted annually by eligible counties.

           SUPPORT  :   (Verified  1/27/14)

          Nevada County (source)
          California Public Defenders Association
          California State Association of Counties
          Lassen County
          Rural County Representatives of California

           ARGUMENTS IN SUPPORT  :    Supporters note that this bill is  
          narrowly crafted and seeks to address only very complex and  
          costly cases that threaten to overwhelm a county's ability to  
          provide an appropriate defense.  The reimbursement program only  
          would apply to cases in which the Attorney General is handling  
          the prosecution.

          AB:k  1/27/14   Senate Floor Analyses 

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                           SUPPORT/OPPOSITION:  SEE ABOVE

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