BILL NUMBER: SB 1801	CHAPTERED  08/23/06

	CHAPTER  157
	FILED WITH SECRETARY OF STATE  AUGUST 23, 2006
	APPROVED BY GOVERNOR  AUGUST 23, 2006
	PASSED THE ASSEMBLY  AUGUST 7, 2006
	PASSED THE SENATE  APRIL 27, 2006
	AMENDED IN SENATE  MARCH 29, 2006

INTRODUCED BY   Senator Ducheny

                        FEBRUARY 24, 2006

   An act to amend Section 54962 of, and to add Section 37606.1 to,
the Government Code, relating to municipal hospitals.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1801, Ducheny  Municipal hospitals: closed meetings.
   Existing law authorizes the board of trustees that manages a
municipal hospital to meet in closed session to discuss reports of
hospital trade secrets, as defined, with specified exceptions.
   This bill, in the case of a municipal hospital with a board of
trustees appointed by a mayor, would similarly authorize the city
council to meet in closed session to discuss reports of that hospital'
s trade secrets.
   This bill would also state findings and declarations of the
Legislature for limiting the public's right of access to specified
meetings of a legislative body of a local agency.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 37606.1 is added to the Government Code, to
read:
   37606.1.  (a) When a municipal hospital established pursuant to
this article is managed by a board of trustees that is appointed by
the mayor, the city council may meet in a closed session held solely
for the purpose of discussion, deliberation, or both, of reports
involving trade secrets of the municipal hospital. Except as provided
in this section, the closed session shall comply with all applicable
requirements of Chapter 9 (commencing with Section 54950) of
Division 2 of Title 5.
   (b) "Hospital trade secrets," as used in this section, means a
"trade secret," as defined in subdivision (d) of Section 3426.1 of
the Civil Code, and which meets all of the following:
   (1) Is necessary to initiate a new hospital service or program or
add a hospital facility.
   (2) Would, if prematurely disclosed, create a substantial
probability of depriving the hospital of a substantial economic
benefit.
   (c) The exception provided in subdivision (a) to the general open
meeting requirements for a meeting of the city council shall not
apply to a meeting where there is action taken, as defined in Section
54952.6.
   (d) Nothing in this section shall be construed to permit the city
council to order a closed meeting for the purposes of discussing or
deliberating, or to permit the discussion or deliberation in any
closed meeting of, any proposals regarding any of the following:
   (1) The sale, conversion, contract for management, or leasing of
any municipal hospital or the assets thereof, to any for-profit or
nonprofit entity, agency, association, organization, governmental
agency, person, partnership, corporation, or hospital district.
   (2) The conversion of any municipal hospital to any other form of
ownership by the city.
   (3) The dissolution of the municipal hospital.
  SEC. 2.  Section 54962 of the Government Code is amended to read:
   54962.  Except as expressly authorized by this chapter, or by
Sections 1461, 1462, 32106, and 32155 of the Health and Safety Code,
or by Sections 37606, 37606.1, and 37624.3 of the Government Code as
they apply to hospitals, or by any provision of the Education Code
pertaining to school districts and community college districts, no
closed session may be held by any legislative body of any local
agency.
  SEC. 3.  The Legislature finds and declares that Section 1 of this
act, which adds Section 37606.1 to the Government Code, imposes a
limitation on the public's right of access to the meetings of public
bodies or the writings of public officials and agencies within the
meaning of Section 3 of Article I of the California Constitution.
Pursuant to that constitutional provision, the Legislature makes the
following findings to demonstrate the interest protected by this
limitation and the need for protecting that interest:
   In order to ensure that a city council can discuss or deliberate
about a municipal hospital without disclosing the hospital's trade
secrets, it is necessary that the council be authorized to meet in
closed session for this purpose.