BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2011-2012 Regular Session


          AB 1133 (Silva)
          As Amended: March 21, 2011
          Hearing Date: June 7, 2011
          Fiscal: No
          Urgency: No
          RD   
                    

                                        SUBJECT
                                           
                         Grand Jurors: Conflict of Interest

                                      DESCRIPTION  

          This bill would require a grand juror who is an employee of, or 
          who was employed within the prior three years by, an agency 
          within the civil grand jury's investigative jurisdiction to 
          inform the foreperson and court of that fact and require the 
          grand juror to recuse himself or herself from participating in 
          any grand jury civil investigation of that agency. 

                                      BACKGROUND  

          The California Constitution requires each county to draw and 
          summon at least one grand jury a year.  (Cal. Const. Art. I, 
          Sec. 23.)  Grand juries are bodies comprised of a certain number 
          of citizens of the county sworn to inquire of public offenses 
          committed or triable in the county, and may be both criminal and 
          civil.  (Pen. Code Sec. 888.)  The functions of a county grand 
          jury were broadly summarized in McClatchy Newspapers v. Superior 
          Court (1988) 44 Cal.3d 1162, 1170 as follows:  "The California 
          grand jury has three basic functions: to weigh criminal charges 
          and determine whether indictments should be returned; to weigh 
          allegations of misconduct against public officials and determine 
          whether to present formal accusations requesting their removal 
          from office; and to act as the public's 'watchdog' by 
          investigating and reporting upon the affairs of local 
          government.  Of these functions, the watchdog role is by far the 
          one most often played by the modern grand jury in California."  

          In this latter role, grand juries have a duty to inquire into 
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          "county matters of civil concern," and thereby have the 
          authority to inquire about unindicted prisoners, to investigate 
          county prisons, and the willful or corrupt misconduct in office 
          of public officers within the county; the authority to 
          investigate ownership, transfer, or sale of real property; the 
          authority to investigate the operations, accounts and records of 
          county officers, departments, or functions; and the authority to 
          investigate the books and records of cities or joint powers 
          agencies. (Pen. Code Secs. 919, 920, 925, 925(a).)  After such 
          civil investigations, and upon approval of the judge, the grand 
          jury may release its findings, in the form of a final report, to 
          the public.  (Pen. Code Sec. 929.)

          California state law requires that a person meet minimum 
          qualifications in order to serve on a grand jury, including that 
          he or she: be at least eighteen years old; be a United States 
          citizen; have lived in the county where the grand jury is being 
          impaneled for at least a year prior to serving as a grand juror; 
          be in possession of his or her natural faculties, of ordinary 
          intelligence, and of sound judgment and fair character; and have 
          sufficient knowledge of the English language.  (Pen. Code Sec. 
          893(a).)  State law also sets forth circumstances under which a 
          person is deemed not competent to act as a grand juror: the 
          person is serving as a trial juror in any court of the state; 
          has been discharged as a grand juror in the state within one 
          year; has been convicted of malfeasance in office or any felony 
          or other high crime; or is serving as an elected officer.  (Pen. 
          Code Sec. 893(b).)  Furthermore, California law provides for 
          specific exemptions and excuses under which a person may be 
          relieved from liability to serve as a grand juror.  (Pen. Code 
          Sec. 894; see Code of Civ. Proc. Secs. 204, 218, and 219.)   
          None of these provisions explicitly prohibit a person from 
          serving on a grand jury if he or she has a conflict of interest 
          pertaining to a subject of investigation by the civil grand 
          jury, though counties may have rules and regulations that govern 
          such situations. 

          Recently, in Orange County, a controversy arose as to the issue 
          of a potential conflict of interest on the part of one member of 
          the grand jury whose presence and participation "may have 
          tainted the entire report."  (City of Santa Ana, City Council 
          Letter, August 16, 2010, pg. 1, 
          <  http://www.ocgrandjury.org/pdfs/street-car/santa-ana-mayor-respo
          nse.pdf  > �as of June 2, 2011].)  In a letter to the Presiding 
          Judge of the Superior Court, the City Council wrote, "That 
          member has been an active civic participant in Santa Ana for 
                                                                      



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          many years.  He was serving as a city commissioner at the time 
          this investigation began and was removed from his position by 
          the City Council in October 2009 for reasons unrelated to this 
          investigation or his membership on the Grand Jury.  We believe 
          that these along with other facts are sufficient grounds for the 
          subject member to have been required to abstain from any 
          participation in this investigation."  (Id.)  As noted in the 
          letter, while many county grand juries have their own rules and 
          regulations, some of which address potential conflicts of 
          interest or bias and when to require abstention, Orange County 
          does not have any such rule.

          The Council further noted that, "Due to grand jury secrecy, we 
          are not able to determine what further involvement the subject 
          member had in the investigation or whether he sought or obtained 
          advice on his participation.  But merely based upon the 
          inconsistent and contradictory actions of the Grand Jury recited 
          in this letter and the standards imposed on grand juries in 
          other counties, the Santa Ana City Council believes that this 
          investigation and report are irreparably tainted by the 
          participation by a member with a potential conflict of interest 
          and potential bias."  (Id. at 2.)  

          This bill, sponsored by the Orange County Board of Supervisors, 
          would provide that a person who is currently employed or was 
          recently employed by an agency that is under the investigative 
          jurisdiction of a civil grand jury must inform the foreperson 
          and the court of the conflict and must recuse him or herself 
          from participating in any grand jury civil investigation of that 
          agency, including any discussion or vote concerning a civil 
          investigation of that agency.   

                                CHANGES TO EXISTING LAW
           
           Existing law  provides that one or more grand juries shall be 
          drawn and summoned at least once a year in each county.  (Cal. 
          Const. Art. I, sec. 23; Pen. Code Sec. 905.)  Existing law also 
          provides limited circumstances under which the presiding judge 
          of the superior court, upon application by the Attorney General 
          or district attorney, may order and direct the drawing and 
          impanelment of one additional grand jury.  (Pen. Code Secs. 
          904.4(a), 904.6(a), 904.7(a), 904.8(a).)  Existing law also 
          provides that if an additional grand jury is also authorized by 
          another section, the county may impanel the additional grand 
          jury authorized by the first section, or by the other section, 
          but not both.  (Pen. Code Sec. 904.4(e).)
                                                                      



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           Existing law  provides that each grand jury or, if more than one 
          has been duly impaneled as specified, one grand jury in each 
          county shall be charged and sworn to investigate or inquire into 
          county matters of civil concern.  (Pen. Code Sec. 888.)

           Existing law  permits a grand jury to inquire into all public 
          offenses committed or triable within the county and present them 
          to the court by indictment.  (Pen. Code Sec. 917.)  A grand 
          juror who knows or has reason to believe that a public offense, 
          triable within the county, has been committed, is permitted to 
          declare it to his fellow jurors, who may thereupon investigate 
          it.  (Pen. Code Sec. 918.)  

           Existing law  requires that the grand jury investigate and report 
          on the operations, accounts, and records of the officers, 
          departments, or functions of the county or of any special 
          legislative district or other district in the county created 
          pursuant to state law, as specified.  (Pen. Code Sec. 925.)

           Existing law  requires a person possess each of the following 
          qualifications in order to be deemed competent to act as a grand 
          juror: 
           1. be a citizen of the United States of the age of 18 years or 
             older and have been a resident of the state and of the county 
             or city and county for one year immediately before being 
             selected and returned; 
           2. be in possession of his natural faculties, of ordinary 
             intelligence, of sound judgment, and of fair character; and
           3. be possessed of sufficient knowledge of the English 
             language.  (Pen. Code Sec. 893(a).)

           Existing law provides a person is not competent to act as a 
          grand juror if any of the following apply:
           1. the person is serving as a trial juror in any court of this 
             state; 
           2. the person has been discharged as a grand juror in any court 
             of this state within one year; 
           3. the person has been convicted of malfeasance in office or 
             any felony or other high crime; or
           4. the person is serving as an elected public officer.  (Pen. 
             Code Sec. 893(b).) 

           Existing law  provides for specified exemptions and excuses which 
          relieve a person from having to serve as a grand juror.  These 
          generally permit a person to be excused only if there exists an 
                                                                      



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          undue hardship or the person is a peace officer, as specified.  
          (Code of Civ. Proc. Secs. 204, 218, 219; Pen. Code Sec. 894.) 
           
          Existing law  prohibits any challenge to an individual juror, 
          except as made by the court for want of qualification, as 
          prescribed.  (Pen. Code Sec. 910.) 

           Existing law  requires that, before considering a charge against 
          any person, the foreman of the grand jury state to those present 
          the matter to be considered and the person to be charged with an 
          offense in connection therewith.  Existing law also requires 
          that the foreman direct any member of the grand jury to retire 
          if he or she has a state of mind in reference to the case or to 
          either party that will prevent him from acting impartially and 
          without prejudice to the substantial rights of the party to 
          retire.  Any violation of this provision by the foreman or any 
          grand juror is punishable by contempt.  (Pen. Code Sec. 939.5.)

           Existing law  provides, in part, that each grand jury shall 
          determine its rules of proceeding.  (Pen. Code Sec. 916.)  

           This bill  would require a grand juror who is an employee of, or 
          who was employed within the prior three years by, an agency 
          within the civil grand jury's investigative jurisdiction to 
          inform the foreperson and court of that fact. 

           This bill  would also require the grand juror to recuse himself 
          or herself from participating in any grand jury civil 
          investigation of that agency, including any discussion or vote 
          concerning a civil investigation of that agency. 

                                        COMMENT
           
          1.    Stated need for the bill  

          According to the author: 

            There are no statutes that pertain to grand jury conflicts of 
            interest or bias in the context of a grand jury's civil 
            investigative function.  Existing law has left it up to each 
            grand jury to adopt its own rules on how to handle such 
            conflicts.  This bill would require a grand juror to abstain 
            from participating in investigations due to a conflict of 
            interest arising from prior or current employment. 

            Recently, a concern arose where grand jurors, who were former 
                                                                      



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            employees of an agency being investigated, participated in the 
            investigation.  This created a perception that there was a 
            possible bias in the outcome of the investigation.  

            Whether the bias is founded or unfounded, it taints the 
            public's perception of the grand jury as a neutral, unbiased 
            arm of the judiciary.  The addition of Section 916.2 
            pertaining to conflicts of interest would help alleviate some 
            of that concern. 

          2.    Current law does not contain any conflict of interest 
            provisions with respect to civil grand jurors 
                        
          This bill would create a conflict of interest rule with respect 
          to civil grand juries that would require a grand juror who is 
          employed or was employed within the prior three years by an 
          agency under the investigative jurisdiction of the grand jury to 
          recuse himself or herself from participating in that grand jury 
          investigation of that agency.  The requirement that the juror 
          recuse himself or herself from participation would include any 
          participation in any discussion or vote concerning that agency.  
          Currently, there are a limited number of statutory 
          qualifications to serve as a grand juror.  While state law also 
          provides the general rules and guidelines for the selection of 
          grand jurors (Pen. Code Sec. 852 et seq.) and for the impaneling 
          process (Pen. Code Sec. 904 et seq.), the specific grand juror 
          selection process varies by county.  Some counties may also have 
          grand jury conflict of interest rules, while others do not.  The 
          problem that arose in the City of Santa Ana and spurred the need 
          for this bill, however, arguably could arise in any county.  
          This bill's conflict of interest provision would create a 
          statewide rule that would apply to any civil grand juror, in any 
          county of the state, irrespective of a county's own grand jury 
          conflict of interest provisions (or lack thereof).  

            a.    Competency and Excuses  

            The required statutory qualifications of a grand juror are 
            minimal, as discussed in the Background section of this 
            analysis.  After the court finds that a person is duly 
            qualified to act as a grand juror, the person is considered 
            drawn and the court must accept that person as a juror unless 
            the court, on the application of the juror and before the 
            juror is sworn, excuses him or her from service for any of the 
            reasons provided for by specified sections of law.  If no 
            exemption or excuse applies and the juror is otherwise 
                                                                      



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            competent, the juror cannot be further challenged.  (Pen. Code 
            Secs. 909-910; Code of Civ. Proc. Secs. 204, 218, and 219.) 

            These provisions, in conjunction with those requiring the 
            secrecy of grand jurors and their proceedings (see Comment 4, 
            below) and the general prohibition of questioning of juror as 
            to their votes or discussions, except as allowed in special 
            specified circumstances, contribute to the difficulty of 
            ascertaining whether a juror has a bias or prejudice in the 
            investigation, absent that juror volunteering the information 
            him or herself.  This bill would in effect deem a person 
            incompetent to participate in any grand jury proceedings, 
            including discussions and votes, in relation to an agency by 
            which the juror is employed or was previously employed in the 
            prior three years. 

            b.    Prejudiced Jurors  

            There is no conflict of interest provision in state law that 
            directly regulates the issue which this bill aims to address.  
            Penal Code Section 939.5 addresses the analogous issue of 
            "prejudiced" jurors in criminal grand juries.  That section 
            requires the foreperson of the grand jury state to the grand 
            jurors the matter to be considered and the person to be 
            charged with an offense in connection therewith, before 
            actually considering a charge against any person.  
            Accordingly, the foreperson must direct any member of the 
            grand jury to retire if he or she "has a state of mind in 
            reference to the case or to either party which will prevent 
            him from acting impartially and without prejudice to the 
            substantial rights of the party."  Violations of this section 
            are punishable by the court as contempt.  

            Relatedly, case law interpreting Penal Code Section 918 also 
            speaks to the relevance of the impartiality, or lack thereof, 
            of a grand juror.  That section allows a member of a grand 
            jury who knows or has reason to believe that a public offense, 
            triable within the county, has been committed to declare it to 
            his fellow jurors, who may thereupon investigate it.   In 
            discussing a section similar to the current Section 918, the 
            California Supreme Court held that a grand juror who declares 
            his or her knowledge of a public offense cannot be present at 
            the investigation of that offense by his or her fellow jurors, 
            except in the capacity of a witness during the actual taking 
            of his or her testimony.  (People v. Bright (1910), 157 Cal. 
            663, 666.)  
                                                                      



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            While neither that holding in People v. Bright, nor Section 
            939.5's rule with regard to potential prejudice of criminal 
            grand jurors is directly on point, both are analogous to this 
            bill in that they similarly seek to ensure the impartiality of 
            grand jurors in grand jury investigations.  This bill 
            specifically seeks to address the issue of potential conflicts 
            of interest that arise from the current employment or recent 
            past employment of a grand juror by an agency subject to the 
            investigative jurisdiction of the civil grand jury on which he 
            or she serves.  As the author notes, without requiring the 
            grand juror to make this fact known to the foreperson and the 
            court and to recuse himself or herself from participating in 
            any investigation of that agency as this bill would do, there 
            arises a perception of bias in the outcome of the decision 
            when that conflict is later discovered by the public.  
            Moreover, it is possible that at least in some cases, the bias 
            is not just perceived but actual.  In those situations, 
            justice will arguably have been averted.  Existing law's 
            silence on this specific situation further illustrates the 
            potential need to address this specific conflict of interest 
            issue on a statewide level.  

            From a public policy standpoint, it is not unreasonable to 
            find that a person who could have direct knowledge or other 
            conflict with the matter for which the agency is being 
            investigated should be disqualified from participating from 
            the proceedings for lack of impartiality, in light of the 
            efforts to alleviate analogous problems under existing law.  

            c.    Potential preemption issue and suggested amendment  

            As noted above, some counties may have their own conflict of 
            interest rules for grand jurors.  In some cases, these rules 
            may be more restrictive, and therefore stronger, than the rule 
            proposed by this bill.   The following amendment would ensure 
            that this bill does not preempt any stronger rules in place at 
            the time of enactment of this bill, as well as any stronger 
            future rules:

            On page 2, line 2, after "916.2" insert "(a)" 

            On page 2, after line 9, insert:  

            (b) This section shall be in addition to any local rules 
            regarding conflict of interest for grand jurors.  A local 
                                                                      



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            jurisdiction may create rules in addition to this provision.  

          3.    Potential taint of impropriety in grand jury investigations 

           
          Impartiality of grand jurors is fundamental to the system of 
          grand juries, especially in light of the nature of these 
          proceedings as described in Comment 4 below. 

          In the introductory remarks of their law review article 
          entitled, Reform of California's Grand Jury System, Professors 
          Michael Vitiello and Clark Kelso state that:

            In theory, the grand jury is a remarkable institution. Praised 
            by some as the "'protector of the citizenry against arbitrary 
            prosecution,'" the grand jury involves ordinary citizens in 
            the administration of criminal justice; and in California, the 
            civil grand jury gives ordinary citizens the power to 
            investigate local political entities to root out corruption. . 
            . .  �R]ecent events in California's political history serve 
            as reminders that well-designed institutions may be subject to 
            abuse.  (35 Loy. L.A. L. Rev. 513, 513-514 (2002).)  

          The author points to a recent example in Orange County, where 
          "grand jurors, who were former employees of an agency being 
          investigated, participated in the investigation.  This created a 
          perception that there was a possible bias in the outcome of the 
          investigation."  (See Background.)  As stated by the author, 
          "�w]hether the bias is founded or unfounded, it taints the 
          public's perception of the grand jury as a neutral, unbiased arm 
          of the judiciary."  Public perception of improper conduct or 
          prejudice on part of a grand juror, whether it is substantiated 
          or not, arguably undermines the grand jury system's integrity 
          and, ultimately, its usefulness to the public or ability to 
          carry out the duties with which grand jurors have been 
          historically charged.  Secrecy, as discussed in Comment 4 below, 
          is paramount to the operations of grand jurors, and becomes more 
          difficult to justify in the face of such accusations of 
          impropriety. 
               
          4.    Secrecy of grand jury investigations supports the need for 
          conflict of interest rules  

          This bill seeks to help to assure that grand jurors do not have 
          a bias or prejudice that stems from a conflict of interest 
          created by their current or recent employment with the agency 
                                                                      



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          that is the subject of the grand jury investigation.  

          Transparency and openness have historically proven the best 
          combatants against allegations of unfair bias, impropriety, or 
          misconduct.  Even more so, they have traditionally served as the 
          greatest safeguards against any such negative influences taking 
          hold in any governmental realm or proceeding, be they 
          legislative, executive, or judicial in nature.  The operation of 
          grand juries, however, is distinct from most any other part of 
          this American system of government in that it creates a special 
          exception to the general rule that the American people have a 
                                                           right to any official documents and proceedings, absent 
          extraordinary circumstances such as executive privilege or 
          national security.  Here, it is the rule, not the exception, to 
          maintain secrecy.   

          A grand jury is a secret tribunal and the disclosure of grand 
          jury materials is strictly limited; generally, grand jurors may 
          not disclose evidence brought before the jury or the content of 
          their deliberations.  Unlike other court proceedings to which 
          access is presumed, there is no presumptive right of access to 
          grand jury proceedings; the proper functioning of the grand jury 
          system uniquely depends upon the secrecy of grand jury 
          proceedings.  Indeed, courts have held that openness of grand 
          jury proceedings is an exception to the general rule of secrecy 
          and permitted only where expressly provided by statute.  (20A Ca 
          Jur Criminal Law: Pretrial Proceedings Sec. 706, citations 
          omitted.)  

          Given the expansive scope of grand jury investigations and the 
          necessary secrecy associated with those proceedings, it makes it 
          all the more difficult to ascertain or defend the fairness of 
          proceedings when it is later discovered that a grand juror is or 
          was recently an employee of the agency under the grand jury's 
          jurisdiction.  This in turn, increases the necessity to 
          eliminate any doubt as to the objectivity of those serving on a 
          particular grand jury and the fairness of the proceedings.  The 
          fact that the grand jurors are selected at random and need only 
          meet certain minimum statutory requirements support these 
          apparent tenets of fairness and objectivity that underlie the 
          grand jury process; requiring, as this bill would do, that any 
          juror recuse him or herself from the jury for such a conflict of 
          interest as is created by the nature of employment of an agency 
          subject to the grand jury's investigatory responsibilities and 
          duties further bolsters those same tenets.  

                                                                      



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          This, in conjunction with the considerations discussed in 
          Comments 2 and 3 above, further supports the need for a 
          statewide rule concerning jurors who have or recently had an 
          employment relationship with an agency that is the subject of 
          the grand jury investigation. 

           
           Support  :  None Known

           Opposition  :  None Known

                                        HISTORY
           
           Source :  Orange County Board of Supervisors

           Related Pending Legislation  :  AB 622 (Dickinson), would require 
          a civil grand jury to meet with the chief executive or 
          department head of an agency subject to its investigation at 
          least 45 days before the grand jury issues its final report in 
          order to ensure the accuracy of the final report, and 
          feasibility of its final recommendations.  In instances where a 
          civil grand jury is hearing testimony under oath, AB 622 
          additionally would require the proceedings be open to the public 
          and press, and would permit the witness to be accompanied by an 
          attorney during his or her testimony.  This bill is in the 
          Senate Rules Committee, awaiting assignment.  

           Prior Legislation  :  None Known

          Prior Vote  :

          Assembly Floor (Ayes 68, Noes 0) 
          Assembly Judiciary Committee (Ayes 9, Noes 0) 

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