Amended in Assembly July 13, 2015

Amended in Assembly June 23, 2015

Amended in Senate April 22, 2015

Amended in Senate April 6, 2015

Senate BillNo. 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: 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 atbegin delete $50,000end deletebegin insert $250,000end insert 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 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.begin insert The act would exempt from its provisions contracts required to respond to, recover from, or mitigate the effects of a temporary public safety emergency declared by the chief law enforcement officer of a city, county, city and county, or special district, or a state of war emergency, state of emergency, or local emergency, as those terms are defined in the California Emergency Services Act.end insert 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:

P2    1

SECTION 1.  

Chapter 4.5 (commencing with Section 22175)
2is added to Part 3 of Division 2 of the Public Contract Code, to
3read:

 

P3    1Chapter  4.5. Civic Openness in Negotiations
2

 

3

22175.  

This chapter shall be known, and may be cited, as the
4Civic Reporting Openness in Negotiations Efficiency Act, or
5CRONEY.

6

22176.  

As used in this chapter, “civic openness in negotiations
7ordinance” or “COIN ordinance” means an ordinance adopted by
8a city, county, city and county, or special district that requires any
9of the following as a part of any collective bargaining process
10undertaken pursuant to the Meyers-Milias-Brown Act (Chapter
1110 (commencing with Section 3500) of Division 4 of Title 1 of
12the Government Code):

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

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

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

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

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

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

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

38

22177.  

begin insert(a)end insertbegin insertend insertThis chapter applies only to a city, county, city and
39county, or special district that has adopted a COIN ordinance,
40which is effective and operative. This chapter shall not apply if
P4    1the city, county, city and county, or special district suspends,
2repeals, or revokes its COIN ordinance.

begin insert

3(b) This chapter shall not apply to a contract if the contract is
4required to respond to, recover from, or mitigate the effects of any
5of the following:

end insert
begin insert

6(1) A temporary public safety emergency declared by the chief
7law enforcement officer of a city, county, city and county, or special
8district.

end insert
begin insert

9(2) A state of war emergency, state of emergency, or local
10emergency, as those terms are defined in Section 8558 of the
11Government Code.

end insert
12

22178.  

(a) This chapter shall apply to any contracts with a
13value of at leastbegin delete fifty thousand dollars ($50,000),end deletebegin insert two hundred fifty
14thousand dollars ($250,000),end insert
and to any contracts with a person
15or entity, or related person or entity, with a cumulative value of at
16leastbegin delete fifty thousand dollars ($50,000)end deletebegin insert two hundred fifty thousand
17dollars ($250,000)end insert
within the fiscal year of the city, county, city
18and county, or special district, being negotiated between the city,
19county, city and county, or special district, and any person or entity
20that seeks to provide services or goods to the city, county, city and
21county, or special district, in the following areas: accounting,
22financing, hardware and software maintenance,begin delete healthcare,end deletebegin insert health
23care,end insert
human resources, human services, information technology,
24telecommunications, janitorial maintenance, legal services,
25lobbying, marketing, office equipment maintenance, passenger
26vehicle maintenance, property leasing, public relations, public
27safety, social services, transportation, or waste removal.

28(b) The city, county, city and county, or special district shall
29designate an unbiased independent auditor to review the cost of
30any proposed contract. The independent auditor shall prepare a
31report on the cost of the contract and provide the report to all
32parties and make it available to the public before the governing
33body takes any action to approve or disapprove the contract. The
34report shall comply with the following:

35(1) The report shall include a recommendation regarding the
36viability of the contract, including any supplemental data upon
37which the report is based, and shall determine the fiscal impacts
38attributable to each term and condition of the contract.

39(2) The report shall be made available to the public at least 30
40days before the issue can be heard before the governing body and
P5    1at least 60 days before any action to approve or disapprove the
2contract by the governing body.

3(3) Any proposed changes to the contract after it has been
4approved by the governing body shall adhere to the same approval
5requirements as the original contract. The changes shall not go
6into effect until all of the requirements of this subdivision are met.

7(c) The city, county, city and county, or special district shall
8disclose all offers and counteroffers to the public within 24 hours
9on its Internet Web site.

10(d) Before approving any contract, the city, county, city and
11county, or special district shall release a list of names of all persons
12in attendance, whether in person or by electronic means, during
13any negotiation session regarding the contract, the date of the
14session, the length of the session, the location where the session
15took place, and any pertinent facts regarding the negotiations that
16occurred in that session.

17(e) Representatives of the governing body shall advise the
18governing body of all offers, counteroffers, information, or
19statements of position discussed by the contracting person or entity
20and city, county, city and county, or special district representatives
21participating in negotiations regarding any contract.

22(f) Each governing body member and staff members of
23governing body offices shall disclose publicly all verbal, written,
24electronic, or other communications regarding a subject matter
25related to the negotiations or pending negotiations they have had
26with any official or unofficial representative of the private entity
27within 24 hours after the communication occurs.

28(g) A final governing body determination regarding approval
29of any contract shall be undertaken only after the matter has been
30heard at a minimum of two meetings of the governing body
31wherein the public has had the opportunity to review and comment
32on the matter.

33

SEC. 2.  

The Legislature finds and declares that Section 1 of
34this act, which adds Chapter 4.5 (commencing with Section 22175)
35to Part 3 of Division 2 of the Public Contract Code, furthers, within
36the meaning of paragraph (7) of subdivision (b) of Section 3 of
37Article I of the California Constitution, the purposes of that
38constitutional section as it relates to the right of public access to
39the meetings of local public bodies or the writings of local public
40officials and local agencies. Pursuant to paragraph (7) of
P6    1subdivision (b) of Section 3 of Article I of the California
2Constitution, the Legislature makes the following findings:

3This act ensures that members of the public have the opportunity
4to be informed of, and meaningfully participate in, the negotiation
5and approval of contracts for goods and services by a city, county,
6city and county, or special district that has adopted a civic openness
7in negotiations (COIN) ordinance, thereby furthering the purposes
8of Section 3 of Article I of the California Constitution.

9

SEC. 3.  

No reimbursement is required by this act pursuant to
10Section 6 of Article XIII B of the California Constitution because
11the only costs that may be incurred by a local agency or school
12district under this act would result from a legislative mandate that
13is within the scope of paragraph (7) of subdivision (b) of Section
143 of Article I of the California Constitution.



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