A battle between two state agencies run by elected Democratic officials went to state District Court on Wednesday in a closed-door hearing.

State Attorney General Gary King has subpoenaed investigation logs and other documents from State Auditor Hector Balderas. But Balderas and his lawyers say the subpoena is "far broader than a fishing expedition" and has declined to comply.

Among the subpoenaed documents are "copies of all electronic communications (including e-mail, test, Fax, attachments and embedded files) held in electronic storage ..." by the Office of the State Auditor. There is no time range specified for that demand in the subpoena, which was issued in February.

Balderas, in an interview Wednesday, said he's mainly concerned about the attorney general going after files of open investigations of public agencies — including the Attorney General's Office. "I'm very concerned this may be an abuse of the subpoena process," Balderas said.

He declined to be specific about investigations involving King's office.

"I look at it as, 'they're obstructing our office,' " Balderas told a reporter after Wednesday's hearing. "No one can intimidate or obstruct what I'm doing." Balderas said his office can't release results of an investigation until a final report is written.

A spokesman for King said he couldn't comment on the subpoena or the hearing.

Both Balderas and state District Judge Michael Vigil also declined to comment on what happened at Wednesday's hearing.

The hearing was closed because the subpoena is a "grand jury subpoena."

However, a March 3 letter to an investigator for the attorney general from a lawyer for Balderas said, "When we met in person at your office, you explained that the grand jury is not investigating these allegations. ..."

Balderas said the investigation began through "tips" last year from a disgruntled employee of the Auditor's Office on the office's own 24-Hour Fraud Hotline.

According to a March 3 letter from lawyer John Boyd, representing Balderas' office, to an investigator for the attorney general, there were three tips that the auditor passed on to the attorney general.

The tips were that Balderas had violated labor laws by installing a punch clock at the office, purchasing office equipment for an office that didn't exist and assigning an Auditor's Office employee to baby-sit his children on state time.

"Because the 'tips' involved the OSA itself, the OSA passed them along to the Attorney General on Oct. 3, 2008," Boyd says in his letter to Special Agent Greg Stover. This was done, he says, to ensure "there be no perceived cover-up of even trivial accusations, no matter how far-fetched."

The subpoena implied another potential wrongdoing on Balderas' part. It asked for documentation concerning the state car Balderas was issued, including the take-home vehicle policy, whether Balderas was authorized to drive it without government markings and whether the auditor had completed a required defensive-driving class. Balderas said Wednesday that he was authorized by the General Services Department to not have the state emblem on his car. He also said he passed his defensive-driving course.

Boyd's letter said that the Auditor's Office in October handed over documentation to the attorney general about the first three tips — which he said were "completely bogus" and refuted by the documents turned over.

Balderas, a lawyer by profession, is considered a rising star in the state Democratic Party. Late last year, when Gov. Bill Richardson was nominated for U.S. commerce secretary, Balderas was considered a top contender to be chosen for lieutenant governor if current Lt. Gov. Diane Denish took over for Richardson. That never came to pass because Richardson withdrew his nomination, citing a grand jury investigation of an alleged pay-to-play scheme.

King, who has run for governor and Congress before, also has been mentioned as a possible candidate for higher office. He is son of former Gov. Bruce King.

While he was unyielding about turning over open investigation files, Balderas said he's optimistic that he and King can work out their differences.

Reporter Jason Auslander contributed to this report.

Contact Steve Terrell at 986-3037 or sterrell@sfnewmexican.com. Read his political blog at roundhouseroundup.com.