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HomeMy WebLinkAboutMINUTES - 06282011 - C.97RECOMMENDATION(S): AMEND the regulations for use of the District Attorney's Consumer Protection Special Revenue Fund to allow the District Attorney's office discretion to use these funds within court-designated parameters to pay for any consumer fraud prosecution costs, including prosecutor salary and benefit costs. FISCAL IMPACT: The additional flexibility in the use of the Consumer Protection Special Revenues will help to maintain and, possibly, enhance consumer fraud prosecution efforts. BACKGROUND: The Consumer Protection Unit of the Contra Costa County District Attorney's office prosecutes consumer fraud cases. When individual restitution in a particular case cannot be determined or is not feasible, the court may direct restitution funds to the District Attorney's Consumer Protection Special Revenue Fund under the cy pres doctrine. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/28/2011 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Cherie Mathisen, 957-2234 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: June 28, 2011 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C. 97 To:Board of Supervisors From:Mark Peterson, District Attorney Date:June 28, 2011 Contra Costa County Subject:Regulations for Use of Consumer Protection Special Revenue The BACKGROUND: (CONT'D) cy pres doctrine originated in the common law as a method of fairly distributing a trust fund, the original purpose of which failed in some respect. The term cy pres in this context means “as near as possible.” Under the cy pres doctrine, once a trust fund’s original purpose fails, the fund is to be distributed to the “next best” use. This remedy now extends to other areas, including the situation where funds remain after distribution in a class action. The cy pres approach in the class action situation puts the unclaimed portion of the fund to its “next best” compensation use, usually by giving it to a third party or agency to use for court-designated purposes. It should be emphasized that courts have claimed broad discretion in determining how to satisfy the “next best” use criteria. When the County established the Consumer Protection Special Revenue Fund in 1993, the criteria for use of the funds were based on a specific cy pres award, which was highly restrictive. Due to current economic and budgetary pressures, the District Attorney requests the authority to utilize these special revenues more broadly to pay for Consumer Protection prosecution costs, including salary and benefit costs, if permitted by the court order. The 1993 Board of Supervisors authorization permits use of these revenues for only ancillary or outside costs. CONSEQUENCE OF NEGATIVE ACTION: CHILDREN'S IMPACT STATEMENT: ATTACHMENTS 1993 Board Order Creating Consumer Protection Spec Rev Fund Background Background