BILL NUMBER: SB 331	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 23, 2015
	AMENDED IN SENATE  APRIL 22, 2015
	AMENDED IN SENATE  APRIL 6, 2015

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: local agencies:
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  certain  contracts valued at $50,000 or
more for goods or services by cities, counties, cities and counties,
or special districts 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   designation
 of an independent auditor to review and report on the cost of
any proposed contract. The act would require a city, county, city and
county, or special district 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 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, cities and
counties, and special districts, 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 CRONEY.
   22176.  As used in this chapter, "civic openness in negotiations
ordinance" or "COIN ordinance" means an ordinance adopted by a city,
county, city and county, or special district 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, city and
county, or special district that has adopted a COIN ordinance, which
is effective and operative. This chapter shall not apply if the city,
county, city and county, or special district suspends, repeals, or
revokes its COIN ordinance.
   22178.  (a) This chapter shall apply to any contracts 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, being negotiated between the city, county, city and county,
or special district, and any  private  person or
entity that seeks to provide services or goods to the city, county,
city and county, or special  district.  
district, in the following areas: accounting, financing, hardware and
software maintenance, healthcare, human resources, human services,
information technology, telecommunications, janitorial maintenance,
legal services, lobbying, marketing, office equipment maintenance,
passenger vehicle maintenance, property leasing, public relations,
public safety, social services, transportation, or waste removal.

   (b) The city, county, city and county, or special district shall
 appoint   designate  an unbiased
independent auditor to review the cost of any proposed 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, city and county, or special district shall
disclose all offers and counteroffers to the public within 24 hours
on its Internet Web site.
   (d) Before approving any contract, the city, county, city and
county, or special district 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 contracting person or entity
and city, county, city and county, or special district
representatives participating in negotiations regarding any contract.

   (f) 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.
   (g) A final governing body determination regarding approval of any
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.
  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,
city and county, or special district 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.