Plata et al v. Schwarzenegger et al

Filing 1549

ORDER for further proceedings re: Receiver's motion for contempt. Hearing set for 10/27/08 at 10:00 AM. Signed by Judge Thelton E. Henderson on 10/08/08. (tehlc3, COURT STAFF) (Filed on 10/8/2008)

1 2 3 4 5 6 7 8 9 10 v. ARNOLD SCHWARZENEGGER, et al., Defendants. MARCIANO PLATA, et al., Plaintiffs, NO. C01-1351 TEH ORDER FOR FURTHER PROCEEDINGS RE: RECEIVER'S MOTION FOR CONTEMPT IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA

United States District Court

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For the Northern District of California

12 13 This matter came before the Court on October 6, 2008, on the Receiver's motion for

14 an order adjudging Defendants Governor Arnold Schwarzenegger and Controller John 15 Chiang in contempt for failure to fund the Receiver's remedial projects and/or an order 16 compelling Defendants to fund such projects. At the hearing, the Receiver proposed that the 17 Court set this matter for a further hearing, in approximately two weeks, at which Defendants 18 would be required to "explicitly explain . . . exactly how and when the $250 million needed 19 to get to . . . the end of the year will be supplied by the State." Tr. at 18:22-25. The Receiver 20 has represented that the $250 million in question has already been appropriated by Assembly 21 Bill 900 ("AB 900") and is unencumbered. Id. at 18:9-11; Hagar Reply Decl. ¶ 13. 22 Defendants offered no response to either the Receiver's proposal or his contention that $250 23 million of appropriated, unencumbered funds is currently available under AB 900. 24 With good cause appearing, the Court adopts the Receiver's suggestion and HEREBY

25 ORDERS, as an intermediate step short of a contempt finding, further proceedings to 26 determine the availability of, and the procedures for transferring to the Receiver for the 27 purpose of continuing his capital projects, $250 million in unencumbered funds appropriated 28 by AB 900.

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In addition, the Receiver proposed at the October 6, 2008 hearing that he be allowed

2 to depose three officials from the Department of Finance. Tr. at 19:1-4. As noted in the 3 Court's July 10, 2008 order, formal discovery is permitted for purposes of exploring 4 available options for funding the remedial plan in this case. Such discovery may, as 5 appropriate, include both written discovery and deposition testimony. 6 This matter is HEREBY CONTINUED to Monday, October 27, 2008, at 10:00 AM.

7 At that time, Defendants shall inform the Court of their specific plans to transfer $250 8 million of previously appropriated and unencumbered AB 900 funds to the Receiver. 9 10 IT IS SO ORDERED.

United States District Court

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For the Northern District of California

12 Dated: 10/08/08 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

THELTON E. HENDERSON, JUDGE UNITED STATES DISTRICT COURT

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