BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1435
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1435 (Evans)
          As Amended September 2, 2005
          Majority vote
           
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          |ASSEMBLY:  |50-29|(June 2, 2005)  |SENATE: |33-2 |(September 6,  |
          |           |     |                |        |     |2005)          |
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           Original Committee Reference:    JUD.  

           SUMMARY  :  Clarifies the meaning of permissible uses in the  
          Courthouse Construction Fund (CCF) statute.  Specifically,  this  
          bill:

           1)Stipulates that permissible uses of CCF would include the  
            acquisition, rehabilitation, construction and financing of  
            court facilities and are declarative of existing law.  

          2)Requires the Judicial Council (JC) to submit a report on  
            county receipts and expenditures in connection with these  
            funds to the Legislature, as specified.

           The Senate amendments  make chaptering out, technical and  
          clarifying changes.  Further delete statutory rules pertaining  
          to court reporters in the County of Mendocino and require JC to  
          provide the transferring county with the right of first refusal  
          in the disposition of a facility.  

          AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the current version of the bill.  

          FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  The sponsor, the Sonoma County Board of Supervisors,  
          seeks to clarify the permissible uses of CCF, in order to ensure  
          that negotiations between JC through the Administrative Office  
          of the Courts (AOC), the California State Association of  
          Counties and counties, regarding the transfer of court  
          facilities from counties to the state are consistent with the  
          governing statute. 

          In support of this bill, the author writes, 








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               [w]hen the legislature created the Courthouse  
               Construction Fund in 1991, it stipulated that they  
               were established 'for the purpose of assisting any  
               county in acquisition, rehabilitation, construction,  
               and financing of courtrooms or a courtroom building  
               or buildings containing facilities necessary or  
               incidental to the operation of the justice system.'   
               This language implies a broad range of permissible  
               uses for which these funds can be used.

               After more than a decade of being under the direct  
               control and supervision of local county boards of  
               supervisors, however, the state has moved to narrow  
               the scope of permissible expenditures of these funds.  
                Acting under the retroactive audit authority  
               provided by the Trial Court Facilities Act of 2002,  
               the AOC has interpreted that permissible expenditures  
               apply only to courtroom improvements.

          The Legislature is requested to specify the meaning of the  
          enabling statute, which is now called into question through the  
          interactions of the interested parties.  The sponsor states that  
          the language adopted by the Legislature in the statute "implies  
          a broad range of permissible uses for which these funds can be  
          used" and upon which the counties have relied.  Similarly, while  
          the AOC states that a literal reading of the statute supports  
          the narrow interpretation, they agree that a narrow  
          interpretation, "unnecessarily restricts the use of the CCF."

          All interested parties agree that the clarification of  
          permissible uses is needed and will avert conflict between AOC  
          and the county governments that have acted in good faith under  
          the terms of the 1991 law.  In addition, the sponsor points out  
          that clarification would also relieve the Court Facilities  
          Dispute Resolution Committee from exceeding its mandate by  
          having to interpret the meaning of the statute governing  
          permissible uses of CCFs.  

          All interested parties acknowledge that the transfer of the  
          county courts to the JC Council is being delayed because of the  
          lack of clarity on permissible uses.  As the author points out,  
          "no county wants to open itself up to a retroactive state audit  
          only to become obligated to reimburse AOC large sums of money,  
          especially when counties contest the interpretive baseline of  








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          such audits".  Similarly, AOC notes that "the narrow  
          interpretation is not consistent with negotiations that have  
          occurred between the AOC, the California State Association of  
          Counties, and counties regarding the transfer of court  
          facilities from counties to the state."  

          Counties have undertaken expenditures for the acquisition,  
          rehabilitation, construction and financing based on their broad  
          reading of the CCF statute.  As expressed by the sponsor,  
          counties have grave concerns about the statewide application of  
          a narrow standard since it would result in "non-conforming  
          expenditures, dating back to 1998, having to be paid to the  
          State when court stewardship duties are transferred to the  
          State."  The sponsor correctly points out that, "at a time when  
          local governments are already strapped for funds, this is a  
          major source of financial uncertainty for county governments."   
          The sponsor further notes that "in order to cope, Sonoma County  
          is setting aside funds on the chance that they will need to  
          reimburse the AOC.  This takes funds away from being invested in  
          courthouse maintenance today."  


           Analysis Prepared by  :  Cynthia Alvillar / JUD. / (916) 319-2334 


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