BILL NUMBER: SB 331 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 6, 2015
INTRODUCED BY Senator Mendoza
FEBRUARY 23, 2015
An act relating to local government. An
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.
LEGISLATIVE COUNSEL'S DIGEST
SB 331, as amended, Mendoza. Local government:
transparency. Public contracts: cities and counties:
negotiations.
Existing law relating to public contracts requires local agencies,
including cities and counties, to comply with specified procedures
for public contracting for public construction.
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.
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.
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.
This bill would make legislative findings to that effect.
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.
This bill would provide that no reimbursement is required by this
act for a specified reason.
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.
This bill would express the intent of the Legislature to enact
legislation that would increase transparency in local government.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 4.5 (commencing with Section
22175) is added to Part 3 of Division 2 of the Public
Contract Code , to read:
CHAPTER 4.5. CIVIC OPENNESS IN NEGOTIATIONS
22175. This chapter shall be known, and may be cited, as the
Civic Reporting Openness in Negotiations Efficiency Act, or CRONE.
22176. As used in this chapter, "civic openness in negotiations
ordinance" or "COIN ordinance" means an ordinance adopted by a city,
county, or city and county that requires any of the following as a
part of any collective bargaining process undertaken pursuant to the
Meyers-Milias-Brown Act (Chapter 10 (commencing with Section 3500) of
Division 4 of Title 1 of the Government Code):
(a) The preparation of an independent economic analysis describing
the fiscal costs of benefit and pay components currently provided to
members of a recognized employee organization, as defined in Section
3501 of the Government Code.
(b) The completion of the independent economic analysis prior to
the presentation of an opening proposal by the public employer.
(c) Availability for review by the public of the independent
economic analysis before presentation of an opening proposal by the
public employer.
(d) Updating of the independent economic analysis to reflect the
annual or cumulative costs of each proposal made by the public
employer or recognized employee organization.
(e) Updating of the independent economic analysis to reflect any
absolute amount or change from the current actuarially computed
unfunded liability associated with the pension or postretirement
health benefits.
(f) The report from a closed session of a meeting of the public
employer's governing body of offers, counteroffers, or supposals made
by the public employer or the recognized employee organization and
communicated during that closed session.
(g) The report from a closed session of a meeting of the public
employer's governing body of any list of names of persons in
attendance during any negotiations session, the date of the session,
the length of the session, the location of the session, or pertinent
facts regarding the negotiations that occurred during a session.
22177. This chapter applies only to a city, county, or city and
county that has adopted a COIN ordinance, which is effective and
operative. This chapter shall not apply if the city, county, or city
and county suspends, repeals, or revokes its COIN ordinance.
22178. (a) This chapter shall apply to all private sector
contracts being negotiated between the city, county, or city and
county, and any private person or entity that seeks to provide
services or goods to the city, county, or city and county.
(b) The city, county, or city and county shall appoint an unbiased
independent auditor to review the cost of any proposed private
sector contract. The independent auditor shall prepare a report on
the cost of the contract and provide the report to all parties and
make it available to the public before the governing body takes any
action to approve or disapprove the contract. The report shall comply
with the following:
(1) The report shall include a recommendation regarding the
viability of the contract, including any supplemental data upon which
the report is based, and shall determine the fiscal impacts
attributable to each term and condition of the contract.
(2) The report shall be made available to the public at least 30
days before the issue can be heard before the governing body and at
least 60 days before any action to approve or disapprove the contract
by the governing body.
(3) Any proposed changes to the contract after it has been
approved by the governing body shall adhere to the same approval
requirements as the original contract. The changes shall not go into
effect until all of the requirements of this subdivision are met.
(c) The city, county, or city and county shall disclose all offers
and counteroffers to the public within 24 hours on its Internet Web
site.
(d) Before entering into any private sector contract, the city,
county, or city and county shall release a list of names of all
persons in attendance, whether in person or by electronic means,
during any negotiation session regarding the contract, the date of
the session, the length of the session, the location where the
session took place, and any pertinent facts regarding the
negotiations that occurred in that session.
(e) Representatives of the governing body shall advise the
governing body of all offers, counteroffers, information, or
statements of position discussed by the private entity and city,
county, or city and county representatives participating in
negotiations regarding any private sector contract.
(f) The governing body shall publish future proposals directed by
the governing body and the analytical thought process utilized by the
governing body.
(g) Each governing body member and staff members of governing body
offices shall disclose publicly all verbal, written, electronic, or
other communications regarding a subject matter related to the
negotiations or pending negotiations they have had with any official
or unofficial representative of the private entity within 24 hours
after the communication occurs.
(h) A final governing body determination regarding approval of any
private sector contract shall be undertaken only after the matter
has been heard at a minimum of two meetings of the governing body
wherein the public has had the opportunity to review and comment on
the matter. Not less than seven days before the first governing body
meeting when the matter shall be heard, the city, county, or city and
county shall post on its Internet Web site the contract under
consideration for adoption.
SEC. 2. The Legislature finds and declares that
Section 1 of this act, which adds Chapter 4.5 (commencing with
Section 22175) to Part 3 of Division 2 of the Public Contract Code,
furthers, within the meaning of paragraph (7) of subdivision (b) of
Section 3 of Article I of the California Constitution, the purposes
of that constitutional section as it relates to the right of public
access to the meetings of local public bodies or the writings of
local public officials and local agencies. Pursuant to paragraph (7)
of subdivision (b) of Section 3 of Article I of the California
Constitution, the Legislature makes the following findings:
This act ensures that members of the public have the opportunity
to be informed of, and meaningfully participate in, the negotiation
and approval of contracts for goods and services by a city, county,
or city and county that has adopted a civic openness in negotiations
(COIN) ordinance, thereby furthering the purposes of Section 3 of
Article I of the California Constitution.
SEC. 3. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district under this act would result from a
legislative mandate that is within the scope of paragraph (7) of
subdivision (b) of Section 3 of Article I of the California
Constitution.
SECTION 1. It is the intent of the Legislature
to enact legislation that would increase transparency in local
government.