Amended in Senate April 6, 2015

Senate BillNo. 331


Introduced by Senator Mendoza

February 23, 2015


begin deleteAn act relating to local government. end deletebegin insertAn act to add Chapter 4.5 (commencing with Section 22175) to Part 3 of Division 2 of the Public Contract Code, relating to public contracts.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 331, as amended, Mendoza. begin deleteLocal government: transparency. end deletebegin insertPublic contracts: cities and counties: negotiations.end insert

begin insert

Existing law relating to public contracts requires local agencies, including cities and counties, to comply with specified procedures for public contracting for public construction.

end insert
begin insert

The Meyers-Milias-Brown Act requires the governing body of a local public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of a recognized employee organization.

end insert
begin insert

This bill would enact the Civic Reporting Openness in Negotiations Efficiency Act to establish specific procedures for the negotiation and approval of contracts for goods or services by cities, counties, or cities and counties that have adopted a civic openness in negotiations ordinance, or COIN ordinance, defined as an ordinance imposing specified requirements as part of any collective bargaining process undertaken pursuant to the Meyers-Milias-Brown Act. The act would require the appointment of an independent auditor to review and report on the cost of any proposed private sector contract. The act would require a city, county, or city and county to disclose prescribed information relating to the contract and contract negotiations on its Internet Web site. The act would prohibit a final determination by the governing body regarding approval of any private sector contract until the matter has been heard at a minimum of 2 public meetings of the governing body. By imposing new requirements on cities, counties, and cities and counties, this bill would impose a state-mandated local program.

end insert
begin insert

The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

end insert
begin insert

This bill would make legislative findings to that effect.

end insert
begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert
begin delete

The California Public Records Act requires that the public records of a local agency be open to inspection and provides that every person has a right to inspect any public record, except as specified. The Ralph M. Brown Act requires that all meetings of a legislative body, as defined, of a local agency be open and public and all persons permitted to attend unless a closed session is authorized.

end delete
begin delete

This bill would express the intent of the Legislature to enact legislation that would increase transparency in local government.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertChapter 4.5 (commencing with Section 22175)
2is added to Part 3 of Division 2 of the end insert
begin insertPublic Contract Codeend insertbegin insert, to
3read:end insert

begin insert

P3    1 

2Chapter  begin insert4.5.end insert Civic Openness in Negotiations
3

 

4

begin insert22175.end insert  

This chapter shall be known, and may be cited, as the
5Civic Reporting Openness in Negotiations Efficiency Act, or
6CRONE.

7

begin insert22176.end insert  

As used in this chapter, “civic openness in negotiations
8ordinance” or “COIN ordinance” means an ordinance adopted
9by a city, county, or city and county that requires any of the
10following as a part of any collective bargaining process undertaken
11pursuant to the Meyers-Milias-Brown Act (Chapter 10
12(commencing with Section 3500) of Division 4 of Title 1 of the
13Government Code):

14(a) The preparation of an independent economic analysis
15describing the fiscal costs of benefit and pay components currently
16provided to members of a recognized employee organization, as
17defined in Section 3501 of the Government Code.

18(b) The completion of the independent economic analysis prior
19to the presentation of an opening proposal by the public employer.

20(c) Availability for review by the public of the independent
21economic analysis before presentation of an opening proposal by
22the public employer.

23(d) Updating of the independent economic analysis to reflect
24the annual or cumulative costs of each proposal made by the public
25employer or recognized employee organization.

26(e) Updating of the independent economic analysis to reflect
27any absolute amount or change from the current actuarially
28computed unfunded liability associated with the pension or
29postretirement health benefits.

30(f) The report from a closed session of a meeting of the public
31employer’s governing body of offers, counteroffers, or supposals
32made by the public employer or the recognized employee
33 organization and communicated during that closed session.

34(g) The report from a closed session of a meeting of the public
35employer’s governing body of any list of names of persons in
36attendance during any negotiations session, the date of the session,
37the length of the session, the location of the session, or pertinent
38facts regarding the negotiations that occurred during a session.

39

begin insert22177.end insert  

This chapter applies only to a city, county, or city and
40county that has adopted a COIN ordinance, which is effective and
P4    1operative. This chapter shall not apply if the city, county, or city
2and county suspends, repeals, or revokes its COIN ordinance.

3

begin insert22178.end insert  

(a) This chapter shall apply to all private sector
4contracts being negotiated between the city, county, or city and
5county, and any private person or entity that seeks to provide
6services or goods to the city, county, or city and county.

7(b) The city, county, or city and county shall appoint an unbiased
8independent auditor to review the cost of any proposed private
9sector contract. The independent auditor shall prepare a report
10on the cost of the contract and provide the report to all parties
11and make it available to the public before the governing body takes
12any action to approve or disapprove the contract. The report shall
13comply with the following:

14(1) The report shall include a recommendation regarding the
15viability of the contract, including any supplemental data upon
16which the report is based, and shall determine the fiscal impacts
17attributable to each term and condition of the contract.

18(2) The report shall be made available to the public at least 30
19days before the issue can be heard before the governing body and
20at least 60 days before any action to approve or disapprove the
21contract by the governing body.

22(3) Any proposed changes to the contract after it has been
23approved by the governing body shall adhere to the same approval
24requirements as the original contract. The changes shall not go
25into effect until all of the requirements of this subdivision are met.

26(c) The city, county, or city and county shall disclose all offers
27and counteroffers to the public within 24 hours on its Internet Web
28site.

29(d) Before entering into any private sector contract, the city,
30county, or city and county shall release a list of names of all
31persons in attendance, whether in person or by electronic means,
32during any negotiation session regarding the contract, the date of
33the session, the length of the session, the location where the session
34took place, and any pertinent facts regarding the negotiations that
35occurred in that session.

36(e) Representatives of the governing body shall advise the
37governing body of all offers, counteroffers, information, or
38statements of position discussed by the private entity and city,
39county, or city and county representatives participating in
40negotiations regarding any private sector contract.

P5    1(f) The governing body shall publish future proposals directed
2by the governing body and the analytical thought process utilized
3by the governing body.

4(g) Each governing body member and staff members of
5governing body offices shall disclose publicly all verbal, written,
6electronic, or other communications regarding a subject matter
7related to the negotiations or pending negotiations they have had
8with any official or unofficial representative of the private entity
9within 24 hours after the communication occurs.

10(h) A final governing body determination regarding approval
11of any private sector contract shall be undertaken only after the
12matter has been heard at a minimum of two meetings of the
13governing body wherein the public has had the opportunity to
14review and comment on the matter. Not less than seven days before
15the first governing body meeting when the matter shall be heard,
16the city, county, or city and county shall post on its Internet Web
17site the contract under consideration for adoption.

end insert
18begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

The Legislature finds and declares that Section 1 of
19this act, which adds Chapter 4.5 (commencing with Section 22175)
20to Part 3 of Division 2 of the Public Contract Code, furthers, within
21the meaning of paragraph (7) of subdivision (b) of Section 3 of
22Article I of the California Constitution, the purposes of that
23constitutional section as it relates to the right of public access to
24the meetings of local public bodies or the writings of local public
25officials and local agencies. Pursuant to paragraph (7) of
26subdivision (b) of Section 3 of Article I of the California
27Constitution, the Legislature makes the following findings:

end insert
begin insert

28This act ensures that members of the public have the opportunity
29to be informed of, and meaningfully participate in, the negotiation
30and approval of contracts for goods and services by a city, county,
31or city and county that has adopted a civic openness in negotiations
32(COIN) ordinance, thereby furthering the purposes of Section 3
33of Article I of the California Constitution.

end insert
34begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
35Section 6 of Article XIII B of the California Constitution because
36the only costs that may be incurred by a local agency or school
37district under this act would result from a legislative mandate that
38is within the scope of paragraph (7) of subdivision (b) of Section
393 of Article I of the California Constitution.

end insert
begin delete
P6    1

SECTION 1.  

It is the intent of the Legislature to enact
2legislation that would increase transparency in local government.

end delete


O

    98