Amended in Senate April 22, 2015

Amended in Senate April 6, 2015

Senate Bill No. 331

Introduced by Senator Mendoza

February 23, 2015

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. Public contracts: begin delete cities and counties: end delete begin insert local agencies: end insert 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 begin insert valued at $50,000 or more end insert for goods or services by cities, counties, begin delete or end delete cities and begin delete counties end delete begin insert counties, or special districts end insert 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 begin delete private sector end delete contract. The act would require a city, county, begin delete or end delete city and begin delete county end delete begin insert county, or special district end insert 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 begin delete private sector end delete 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, begin delete and end delete cities and counties, begin insert and special districts, end insert 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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: 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
begin delete CRONE. end delete begin insert CRONEY. end insert

22176.  

As used in this chapter, “civic openness in negotiations
ordinance” or “COIN ordinance” means an ordinance adopted by
a city, county, begin delete or end delete city and begin delete county end delete begin insert county, or special district end insert 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, begin delete or end delete city and
begin delete county end delete begin insert county, or special district end insert that has adopted a COIN
ordinance, which is effective and operative. This chapter shall not
apply if the city, county, begin delete or end delete city and begin delete county end delete begin insert county, or special
district end insert suspends, repeals, or revokes its COIN ordinance.

22178.  

(a) This chapter shall apply to begin delete all private sector end delete begin insert any end insert
contracts begin insert with a value of at least fifty thousand dollars ($50,000),
and to any contracts with a person or entity, or related person or
entity, with a cumulative value of at least fifty thousand dollars
($50,000) within the fiscal year of the city, county, city and county,
or special district, end insert being negotiated between the city, county, begin delete or end delete
city and county, begin insert or special district, end insert and any private person or entity
that seeks to provide services or goods to the city, county, begin delete or end delete city
and begin delete county. end delete begin insert county, or special district. end insert

(b) The city, county, begin delete or end delete city and begin delete county end delete begin insert county, or special district end insert
shall appoint an unbiased independent auditor to review the cost
of any proposed begin delete private sector end delete 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, begin delete or end delete city and begin delete county end delete begin insert county, or special district end insert
shall disclose all offers and counteroffers to the public within 24
hours on its Internet Web site.

(d) Before begin delete entering into end delete begin insert approving end insert any begin delete private sector end delete contract,
the city, county, begin delete or end delete city and begin delete county end delete begin insert county, or special district end insert 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 begin delete private end delete begin insert contracting person
or end insert entity and city, county, begin delete or end delete city and begin delete county end delete begin insert county, or special
district end insert representatives participating in negotiations regarding any
begin delete private sector end delete contract.

begin delete

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

(g)

end delete

begin insert (f) end insert  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.

begin delete

(h)

end delete

begin insert (g) end insert  A final governing body determination regarding approval
of any begin delete private sector end delete 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. begin delete 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. end delete

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,
begin delete or end delete city and begin delete county end delete begin insert county, or special district end insert 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.