Amended in Assembly August 17, 2015

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 at $250,000 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 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 delete Theend delete

begin insertTheend insert 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.begin delete Byend deletebegin insert The act would also exempt from its provisions a renewal of a contract if the employees performing the services are covered by a collective bargaining agreement that is governed by the National Labor Relations Act.end insert

begin insertByend insert 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:

P3    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:

4 

5Chapter  4.5. Civic Openness in Negotiations
6

 

7

22175.  

This chapter shall be known, and may be cited, as the
8Civic Reporting Openness in Negotiations Efficiency Act, or
9CRONEY.

10

22176.  

As used in this chapter, “civic openness in negotiations
11ordinance” or “COIN ordinance” means an ordinance adopted by
12a city, county, city and county, or special district that requires any
13of the following as a part of any collective bargaining process
14undertaken pursuant to the Meyers-Milias-Brown Act (Chapter
1510 (commencing with Section 3500) of Division 4 of Title 1 of
16the Government Code):

17(a) The preparation of an independent economic analysis
18describing the fiscal costs of benefit and pay components currently
19provided to members of a recognized employee organization, as
20defined in Section 3501 of the Government Code.

21(b) The completion of the independent economic analysis prior
22to the presentation of an opening proposal by the public employer.

23(c) Availability for review by the public of the independent
24economic analysis before presentation of an opening proposal by
25the public employer.

26(d) Updating of the independent economic analysis to reflect
27the annual or cumulative costs of each proposal made by the public
28employer or recognized employee organization.

29(e) Updating of the independent economic analysis to reflect
30any absolute amount or change from the current actuarially
31computed unfunded liability associated with the pension or
32postretirement health benefits.

33(f) The report from a closed session of a meeting of the public
34employer’s governing body of offers, counteroffers, or supposals
35made by the public employer or the recognized employee
36organization and communicated during that closed session.

37(g) The report from a closed session of a meeting of the public
38employer’s governing body of any list of names of persons in
P4    1attendance during any negotiations session, the date of the session,
2the length of the session, the location of the session, or pertinent
3facts regarding the negotiations that occurred during a session.

4

22177.  

(a) This chapter applies only to a city, county, city and
5county, or special district that has adopted a COIN ordinance,
6which is effective and operative. This chapter shall not apply if
7the city, county, city and county, or special district suspends,
8repeals, or revokes its COIN ordinance.

9(b) This chapter shall not apply to a contract if the contract is
10required to respond to, recover from, or mitigate the effects of any
11of the following:

12(1) A temporary public safety emergency declared by the chief
13law enforcement officer of a city, county, city and county, or
14special district.

15(2) A state of war emergency, state of emergency, or local
16emergency, as those terms are defined in Section 8558 of the
17Government Code.

begin insert

18(c) This chapter shall not apply to a renewal of a contract if the
19employees performing the services are covered by a collective
20bargaining agreement that is governed by the National Labor
21Relations Act (29 U.S.C. Sec. 151 et seq.).

end insert
22

22178.  

(a) This chapter shall apply to any contracts with a
23value of at least two hundred fifty thousand dollars ($250,000),
24and to any contracts with a person or entity, or related person or
25entity, with a cumulative value of at least two hundred fifty
26thousand dollars ($250,000) within the fiscal year of the city,
27county, city and county, or special district, being negotiated
28between the city, county, city and county, or special district, and
29any person or entity that seeks to provide services or goods to the
30city, county, city and county, or special district, in the following
31areas: accounting, financing, hardware and software maintenance,
32health care, human resources, human services, information
33technology, telecommunications, janitorial maintenance, legal
34services, lobbying, marketing, office equipment maintenance,
35passenger vehicle maintenance, property leasing, public relations,
36public safety, social services, transportation, or waste removal.

37(b) The city, county, city and county, or special district shall
38designate an unbiased independent auditor to review the cost of
39any proposed contract. The independent auditor shall prepare a
40report on the cost of the contract and provide the report to all
P5    1parties and make it available to the public before the governing
2body takes any action to approve or disapprove the contract. The
3report shall comply with the following:

4(1) The report shall include a recommendation regarding the
5viability of the contract, including any supplemental data upon
6which the report is based, and shall determine the fiscal impacts
7attributable to each term and condition of the contract.

8(2) The report shall be made available to the public at least 30
9days before the issue can be heard before the governing body and
10at least 60 days before any action to approve or disapprove the
11contract by the governing body.

12(3) Any proposed changes to the contract after it has been
13approved by the governing body shall adhere to the same approval
14requirements as the original contract. The changes shall not go
15into effect until all of the requirements of this subdivision are met.

16(c) The city, county, city and county, or special district shall
17disclose all offers and counteroffers to the public within 24 hours
18on its Internet Web site.

19(d) Before approving any contract, the city, county, city and
20county, or special district shall release a list of names of all persons
21in attendance, whether in person or by electronic means, during
22any negotiation session regarding the contract, the date of the
23session, the length of the session, the location where the session
24took place, and any pertinent facts regarding the negotiations that
25occurred in that session.

26(e) Representatives of the governing body shall advise the
27governing body of all offers, counteroffers, information, or
28statements of position discussed by the contracting person or entity
29and city, county, city and county, or special district representatives
30participating in negotiations regarding any contract.

31(f) Each governing body member and staff members of
32governing body offices shall disclose publicly all verbal, written,
33electronic, or other communications regarding a subject matter
34related to the negotiations or pending negotiations they have had
35with any official or unofficial representative of the private entity
36within 24 hours after the communication occurs.

37(g) A final governing body determination regarding approval
38of any contract shall be undertaken only after the matter has been
39heard at a minimum of two meetings of the governing body
P6    1wherein the public has had the opportunity to review and comment
2on the matter.

3

SEC. 2.  

The Legislature finds and declares that Section 1 of
4this act, which adds Chapter 4.5 (commencing with Section 22175)
5to Part 3 of Division 2 of the Public Contract Code, furthers, within
6the meaning of paragraph (7) of subdivision (b) of Section 3 of
7Article I of the California Constitution, the purposes of that
8constitutional section as it relates to the right of public access to
9the meetings of local public bodies or the writings of local public
10officials and local agencies. Pursuant to paragraph (7) of
11subdivision (b) of Section 3 of Article I of the California
12Constitution, the Legislature makes the following findings:

13This act ensures that members of the public have the opportunity
14to be informed of, and meaningfully participate in, the negotiation
15and approval of contracts for goods and services by a city, county,
16city and county, or special district that has adopted a civic openness
17in negotiations (COIN) ordinance, thereby furthering the purposes
18of Section 3 of Article I of the California Constitution.

19

SEC. 3.  

No reimbursement is required by this act pursuant to
20Section 6 of Article XIII B of the California Constitution because
21the only costs that may be incurred by a local agency or school
22district under this act would result from a legislative mandate that
23is within the scope of paragraph (7) of subdivision (b) of Section
243 of Article I of the California Constitution.



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