BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1435|
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                                 THIRD READING


          Bill No:  AB 1435
          Author:   Evans (D)
          Amended:  7/6/05 in Senate
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  6-0, 6/28/05
          AYES:  Dunn, Morrow, Ackerman, Cedillo, Figueroa, Kuehl
          NO VOTE RECORDED:  Escutia
           
          SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  50-29, 6/2/05 - See last page for vote


           SUBJECT  :    Courthouse construction funds

           SOURCE  :     Judicial Council of California


           DIGEST  :    This bill makes several technical amendments to  
          the Trial Court Facilities Act of 2002 (TCFA), including  
          correction of technical errors, clarification of the  
          appropriate use of courthouse construction funds, and  
          simplification of the process for modifying the  
          distribution of penalty assessments for the benefit of the  
          courthouse construction fund.  This bill  provides that  
          certain uses of a county's Courthouse Construction Fund,  
          which was established prior to passage of the TCFA, are  
          declaratory of existing law.

           ANALYSIS  :    Existing law authorizes each county to  
          establish in the county treasury a Courthouse Construction  
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          Fund (CCF) to receive penalties collected by the counties  
          from fines for criminal offenses for the purpose of  
          assisting the county in the acquisition, rehabilitation,  
          construction, and financing of courtrooms or of a courtroom  
          building or buildings containing facilities used by the  
          justice system.  [Section 76100 of the Government Code]

          Existing law, the TCFA, requires counties to make reports  
          to the Administrative Office of the Courts (AOC) and to the  
          Department of Finance (DOF) for the receipt and expenditure  
          of those funds, and provides that expenditures for other  
          purposes than specifically permitted are to be repaid. 

          This bill clarifies that CCFs may also be used for court  
          facilities or excess court facilities in the same manner  
          and that this is declarative of existing law.

          This bill requires the Judicial Council of California, on  
          or before January 1, 2007, and on or before January 1,  
          thereafter, to submit a report on county receipts and  
          expenditures in connection with these funds to the  
          Legislature.

          Existing law governing the State Court Facilities  
          Construction Fund specifies that the penalty distribution  
          established for a local CCF will change each time a county  
          facility is transferred to the state.  Existing law, the  
          TCFA, allows for the transfer of facilities from county to  
          the state on a facility-to-facility basis.

          This bill requires the change in penalty assessment  
          distribution to occur only once per year for all facilities  
          that transfer in a given county. 

          This bill makes other technical, conforming amendments.

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

           SUPPORT  :   (Verified  8/16/05)

          Judicial Council of California (source)
          California State Association of Counties
          County of Fresno

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          County of Placer
          County of Sacramento 
          County of Tulare
          State Association of County Auditors


           ARGUMENTS IN SUPPORT  :    The Judicial Council is sponsoring  
          this bill to correct what has surfaced as an interpretation  
          of Section 76100 of the Government Code that is  
          inconsistent with the negotiations that have occurred for  
          the transfer of court facilities from county to state under  
          the TCFA.

          The TCFA requires the AOC and the Director of DOF to audit  
          a county's CCF to determine whether expenditures from the  
          fund were consistent with Section 76100 of the Government  
          Code.  Any inappropriate expenditure is to be repaid to the  
          State Court Facilities Construction Fund.  Apparently,  
          during audits of CCF expenditures and the development of  
          procedures for the Administrative Director's review of  
          future expenditures, staff of the AOC determined that  
          Section 76100, if interpreted narrowly, unnecessarily  
          restricts the use of the CCF.  In the AOC's view, a literal  
          reading of the statute supports the narrow interpretation  
          that CCFs can only be used to renovate buildings being  
          vacated by the court or to build excess courtrooms or  
          courthouses.  The broader interpretation allows use of CCFs  
          for these limited purposes, in addition to acquisition,  
          rehabilitation, construction or financing of court  
          buildings.  The AOC regards this broader interpretation as  
          the legislative intent when Section 76100 was enacted in  
          the first place, and has used this interpretation in its  
          negotiations with the counties for the transfer of court  
          facilities to the state.

          For example, Contra Costa County built a parking structure  
          with CCF funds even though only a portion of the parking  
          structure would be used by the courts.  Under existing law,  
          the entire cost of the parking structure could be charged  
          back to the county since the expenditure would not have  
          been allowable under the current language of Section 76100.  
           Under the less restrictive interpretation of Section 76100  
          (which Judicial Council and the counties use) the county  
          fouls be charged back for the cost of the parking structure  

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          less the portion of the cost attributable to the courts'  
          use of the parking structure.  (A proposed amendment would  
          ensure that the state or the CCF funds does not pay the  
          entire cost of that structure or other structures similarly  
          paid for.)  Another example is Sonoma County's Americans  
          with Disabilities Act (ADA) upgrade costs for the front  
          counter at the courthouse.  Since the ADA compliance  
          project will not fit directly into the language of Section  
          76100 (i.e., it is not a renovation or rehabilitation of  
          the building, just the counter), the county could be  
          charged back the cost of the ADA upgrade even though the  
          project is clearly the responsibility of and benefits only  
          the court.

          The Judicial Council states that there are a number of  
          projects just like the above that could cause liability on  
          the counties' part, but could easily be negotiated in the  
          context of the transfer of facilities from county to state,  
          when the less restrictive interpretation of Section 76100  
          is applied.


           ASSEMBLY FLOOR  : 
          AYES:  Arambula, Baca, Bass, Berg, Bermudez, Calderon,  
            Canciamilla, Chan, Chavez, Chu, Cohn, Coto, De La Torre,  
            Dymally, Evans, Frommer, Goldberg, Hancock, Harman,  
            Jerome Horton, Jones, Karnette, Klehs, Koretz, Laird,  
            Leno, Levine, Lieber, Liu, Matthews, Montanez, Mullin,  
            Nation, Nava, Negrete McLeod, Oropeza, Parra, Pavley,  
            Richman, Ridley-Thomas, Ruskin, Saldana, Salinas,  
            Torrico, Tran, Umberg, Vargas, Wolk, Yee, Nunez
          NOES:  Aghazarian, Benoit, Blakeslee, Bogh, Cogdill,  
            Daucher, DeVore, Emmerson, Garcia, Haynes, Shirley  
            Horton, Houston, Huff, Keene, La Malfa, La Suer, Leslie,  
            Maze, McCarthy, Mountjoy, Nakanishi, Niello, Plescia,  
            Sharon Runner, Spitzer, Strickland, Villines, Walters,  
            Wyland
          NO VOTE RECORDED:  Gordon


          RJG:mel  8/16/05   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE


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