BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1055
                                                                  Page  1

          Date of Hearing:   May 6, 2003
          Counsel:               Danielle Lee


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                  Mark Leno, Chair

                   AB 1055 (Spitzer) - As Amended:  March 27, 2003
           

          SUMMARY  :   Clarifies existing law to require monies from the  
          District Attorney special fund to only be used to pay for lawful  
          costs incurred in criminal cases, detection of crimes and civil  
          actions.  Specifically,  this bill  requires the district attorney  
          to use the special appropriation fund only to pay:

          1)Expenses lawfully incurred in criminal cases arising in the  
            county;

          2)Expenses lawfully incurred in the detection of crime, other  
            than those declared to be misdemeanors by the Vehicle Code;  
            or,

          3)Expenses lawfully incurred in civil actions, or proceedings.

           EXISTING LAW  :

          1)Provides that the district attorney is the public prosecutor,  
            except as otherwise provided.  Requires the public prosecutor  
            to attend the courts, and within his or her discretion,  
            initiate and conduct all prosecutions for public offenses on  
            behalf of the people.  (Government Code Section 26500.)

          2)Establishes a district attorney's special appropriation in  
            each county.  (Government Code Section 29400.)

          3)Requires the county board of supervisors for counties having a  
            population of 90,000 or more to make the sum of $5,000  
            available to the district attorney's special appropriation at  
            the beginning of each fiscal year. Allows the board to  
            transfer additional amounts to the special appropriation.   
            (Government Code Sections 29401.)

          4)Requires the county board of supervisors in all other  
            counties, to make a board-determined sum of as much as $2,500  








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            available to the district attorney's special appropriation at  
            the beginning of each fiscal year.  (Penal Code Section  
            29402.)

          5)Provides that the population basis is that fixed by the last  
            decennial federal census.  (Penal Code Section 29403.) 

          6)Allows the district attorney to use the special appropriation  
            to pay:

             a)   His or her expenses incurred in criminal cases arising  
               in the county;

             b)   Expenses necessarily incurred by he or she in the  
               detection of crime, other than those declared to be  
               misdemeanors by the Vehicle Code; or, 

             c)   Expenses in civil actions, proceedings, or other matters  
               in which the county is interested. (Government Code Section  
               29404.) 

          7)Requires the auditor to draw the warrant in favor of the  
            district attorney on the district attorney's presentation of  
            his or her requisition for the amounts the district attorney  
            requires.  Requires the treasurer to pay the warrant.   
            (Government Code Section 29405.) 

          8)Requires the district attorney to file vouchers with the  
            auditor at the end of each fiscal year, and from time to time  
            during the year, showing the disposition he or she has made of  
            any money received from the special appropriation and the  
            particular purpose for which it was spent.  Provides that, if  
            at the end of the fiscal year a criminal proceeding is pending  
            or under investigation, the vouchers as to any money spent in  
            the proceeding or investigation need not be filed until the  
            trial of the proceeding is ended or the investigation  
            concluded.  (Government Code Section 29406.)

          9)Provides that the district attorney's special appropriation is  
            in addition to any other appropriations at his or her  
            disposal, and that this provision does not limit or affect any  
            provision of law relative to the expenses of the district  
            attorney incurred by he or she and paid as other county claims  
            after allowance by the board of supervisors.   (Penal Code  
            Section 29407.)








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          10)Exempts any county operating under a charter making provision  
            for a similar appropriation from this section.  (Government  
            Code Section 29408.) 

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Author's Statement  :  According to the author, "This bill  
            simply clarifies that this fund shall only be used to pay for  
            lawful costs incurred in criminal cases, detection of crimes,  
            and civil actions.  This still allows district attorneys to  
            expend funds on lobbying, but only from accounts that are  
            public and subject to audit.

          "The integrity of the district attorney special fund is  
            paramount.  Since it is an unaudited, secret fund, neither the  
            public nor the press has any way to know if these funds are  
            being spent properly.  Clearly lobbying and entertainment with  
            alcohol, unrelated to criminal or civil investigations, should  
            not be expended from this account.  Such activity should only  
            come out of an account subject to the Public Records Acts."

           2)Background  :   Each district attorney has a special,  
            non-audited fund that they may use to pay for the expenses  
            incurred in criminal cases arising in the county, expenses  
            incurred in the detection of a crime, and expenses incurred in  
            civil actions, proceedings or other matters in which the  
            county is interested.  The Government Code is broad, yet most  
            district attorneys have maintained a high level of integrity  
            when using the fund.  

          In 2002, the Attorney General helped the Orange County Grand  
            Jury investigate the actions of the Office of the District  
            Attorney and found that the office used money from the special  
            fund to buy meals and alcohol at meetings with law enforcement  
            personnel, lobbyists, politicians, county and other government  
            employees, campaign consultants, clergy and media personnel.   
            The Chief Investigator, who directly oversees the special fund  
            for the District Attorney, billed the fund on approximately 38  
            different occasions to pay for bills to the Santa Ana Elks  
            Club, which included charges for alcohol, a violation of  
            county policy.  A 1994 Orange County District Attorney's  
            Office policy prohibited employees from using the fund for  








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            anything other than law enforcement expenses such as witness  
            protection and undercover operations.  When the Grand Jury  
            panel noted that these funds were used for lobbying and  
            recommended that the District Attorney enforce the 1994  
            policy, the District Attorney changed his office policy to  
            include lobbying.  On October 4, 2002, after the media exposed  
            the change in policy, the District Attorney again changed his  
            policy to remove the allowance for lobbying.  

          The Grand Jury found that the language of the District  
            Attorney's policy, in addition to the current Government Code  
            Section 29404, can be interpreted so broadly as to justify  
            almost any expense. 

           3)Does this bill achieve its intended purpose  ?  This bill  
            clarifies that the monies allocated pursuant to this code  
            cannot be used for any thing other than the enumerated  
            purposes.  According to the author, the recent situation in  
            Orange County demonstrates that because the fund is unaudited,  
            it susceptible to misuse.  There, the special investigators  
            had difficulty determining whether the funds had been misused  
            because the district attorney was unwilling, and contended  
            that he was under no obligation, to disclose the documents  
            that demonstrated how the funding had been used.  However,  
            this bill does not create a method of accountability for how  
            these funds are spent.  Additionally, the Attorney General  
            contended that it has the right to audit the fund because the  
            Attorney General's office allocates the money in the special  
            fund and oversees its use.  Furthermore, Government Code  
            Section 29406 requires the district attorney to file vouchers  
            with the auditors at the end of each fiscal year at a minimum  
            that show the disposition he or she has made of any money  
            received from special appropriation and the particular purpose  
            for which it was spent.  Either one of these methods creates a  
            certain level of accountability by the district attorney as to  
            how it spends the funds. 

          It is also unclear whether portions of this fund spent on  
            lobbying are outside the fund's lawful purpose.  The district  
            attorney's responsibility is set forth in Government Code  
            Section 26500, and includes initiating and conducting all  
            prosecutions for public offenses on behalf of the people,  
            responsibilities which parallel the enumerated purposes of the  
            fund in Government Code Section 29404:  expenses incurred in  
            criminal cases arising in the county, expenses incurred in the  








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            detection of crime, and expenses incurred in civil actions or  
            proceeding.  Lobbying is not one of the enumerated duties and  
            responsibilities of a district attorney.  However, many  
            district attorneys offices regularly engage in lobbying  
            efforts, whether to sponsor a bill or support or oppose a  
            proposed law. 

           4)Is this bill necessary  ?  This bill states the obvious  
            requirement that the district attorney's special appropriation  
            can only be used for lawfully incurred expenses for enumerated  
            purposes.  Those district attorney offices already using their  
            funds appropriately will be largely, if not completely,  
            unaffected by this bill.  Assuming that it is lawful for  
            district attorneys to make and fund lobbying efforts, and that  
            special appropriation funds are accountable either through  
            Attorney General audits or the vouchers filed yearly with  
            state auditors, this bill addresses the funds spent on  
            alcohol, a violation of Orange County policy.  This violation  
            of county policy is a very individual, particularized  
            situation that may not need to be addressed at a statewide  
            level.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California District Attorneys Association
          Office of the Attorney General

           Opposition 
           
          None on file
           

          Analysis Prepared by  :    Danielle Lee / PUB. S. / (916) 319-3744