Amended in Assembly April 10, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2507

Introduced by Assembly Member Bocanegra

February 21, 2014

An act to amend Section 6254 of the Government Code, relating to public records.

LEGISLATIVE COUNSEL’S DIGEST

AB 2507, as amended, Bocanegra. Public Records Act: exemptions: pending litigation.

Existing law, the California Public Records Act (CPRA), requires state and local agencies to make public records available upon receipt of a request that reasonably describes an identifiable record not otherwise exempt from disclosure, upon the payment of fees to cover costs.

Existing law exempts from the CPRA’s disclosure requirements any records pertaining to pending litigation to which the public agency is a party, until the pending litigation or claim has been finally adjudicated or otherwise settled.

This bill would provide that begin delete public agency end delete begin insert outside end insert attorney billing records, when they are prepared in connection with begin delete pending litigation, end delete begin insert a pending civil action in which a public agency is a defendant, end insert are exempt from the CPRA’s disclosure provisions during the pendency of the litigation.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares all of the
following:

begin delete

(1)

end delete

begin insert (a) end insert  Interpretation of the California Public Records Act is a matter
of great significance to public entities across the state. Public
entities and public employees necessarily participate in litigation
on an ongoing basis as part of conducting the public's business. It
is therefore vital that clear guidelines be established with respect
to the application of the act as it relates to pending litigation.

begin delete

(2)

end delete

begin insert (b) end insert  Public entities must often retain outside counsel to prosecute
and defend actions in the public's interest. Public entities
throughout the state have a strong interest in having clear guidelines
established concerning records pertaining to pending litigation
generated by outside counsel.

begin delete

(3)

end delete

begin insert (c) end insert  Without clarification, every public entity in the state is
subject to ongoing requests for attorneys’ invoices, billing
statements, and cost amounts in pending cases that result in
increased administrative costs and compromise the defense and
prosecution of public actions.

begin delete

(4)

end delete

begin insert (d) end insert  The right of the public to access records pertaining to
pending litigation will not be affected, as any such records,
notwithstanding any other provision of law, are not exempt from
disclosure under law upon final adjudication or settlement.

begin delete

(5)

end delete

begin insert (e) end insert  It is necessary for a state and local agency to withhold certain
records from public disclosure to permit that agency to properly
perform their governmental functions, including their ability to
prosecute and defend themselves in public actions.

begin delete

(6)

end delete

begin insert (f) end insert  The pending litigation exemption is designed to prevent a
litigant opposing a governmental entity from using the act to secure
earlier or greater access to records than would be then would be
otherwise available under the rules of civil discovery.

begin delete

(7)

end delete

begin insert (g) end insert  There is a public interest in the disclosure of the resources
and funds expended in litigation involving a public entity. There
is, however, no public interest to be served in disclosing that
information, particularly attorneys’ invoices, billing statements,
and cost amounts while litigation is pending against the public
entity.

begin delete

(8)

end delete

begin insert (h) end insert  Disclosing such information to a public entity's adversary
in litigation will have the negative impact of also disclosing how
the public entity is utilizing its resources on a particular case while
it is pending, and thus revealing an entity's case valuation and
strategy. This will unbalance the scales of justice and prejudice
the public entity in settlement negotiations and trial.

begin delete

(9)

end delete

begin insert (i) end insert  Information about attorneys’ invoices, billing statements,
and cost amounts in the course of ongoing pending litigation
affords litigants opposing a public entity a tactical insight to exploit
for purposes of accelerating litigation at a particular point,
prolonging litigation, or timing a settlement demand and puts the
public entity at a disadvantage that the litigation exemption was
designed to prevent.

SEC. 2.  

Section 6254 of the Government Code is amended to
read:

6254.  

Except as provided in Sections 6254.7 and 6254.13,
nothing in this chapter shall be construed to require disclosure of
records that are any of the following:

(a) Preliminary drafts, notes, or interagency or intra-agency
memoranda that are not retained by the public agency in the
ordinary course of business, if the public interest in withholding
those records clearly outweighs the public interest in disclosure.

(b) Records pertaining to pending litigation to which the public
agency is a begin delete party, end delete begin insert defendant in a civil action, end insert including begin insert outside end insert
attorneys’ invoices, billing statements, and requests for payment,
or to claims made pursuant to Division 3.6 (commencing with
Section 810), until the pending litigation or claim has been finally
adjudicated or otherwise settled.

(c) Personnel, medical, or similar files, the disclosure of which
would constitute an unwarranted invasion of personal privacy.

(d) Contained in or related to any of the following:

(1) Applications filed with any state agency responsible for the
regulation or supervision of the issuance of securities or of financial
institutions, including, but not limited to, banks, savings and loan
associations, industrial loan companies, credit unions, and
insurance companies.

(2) Examination, operating, or condition reports prepared by,
on behalf of, or for the use of, any state agency referred to in
paragraph (1).

(3) Preliminary drafts, notes, or interagency or intra-agency
communications prepared by, on behalf of, or for the use of, any
state agency referred to in paragraph (1).

(4) Information received in confidence by any state agency
referred to in paragraph (1).

(e) Geological and geophysical data, plant production data, and
similar information relating to utility systems development, or
market or crop reports, that are obtained in confidence from any
person.

(f) Records of complaints to, or investigations conducted by,
or records of intelligence information or security procedures of,
the office of the Attorney General and the Department of Justice,
the Office of Emergency Services and any state or local police
agency, or any investigatory or security files compiled by any other
state or local police agency, or any investigatory or security files
compiled by any other state or local agency for correctional, law
enforcement, or licensing purposes. However, state and local law
enforcement agencies shall disclose the names and addresses of
persons involved in, or witnesses other than confidential informants
to, the incident, the description of any property involved, the date,
time, and location of the incident, all diagrams, statements of the
parties involved in the incident, the statements of all witnesses,
other than confidential informants, to the victims of an incident,
or an authorized representative thereof, an insurance carrier against
which a claim has been or might be made, and any person suffering
bodily injury or property damage or loss, as the result of the
incident caused by arson, burglary, fire, explosion, larceny,
robbery, carjacking, vandalism, vehicle theft, or a crime as defined
by subdivision (b) of Section 13951, unless the disclosure would
endanger the safety of a witness or other person involved in the
investigation, or unless disclosure would endanger the successful
completion of the investigation or a related investigation. However,
nothing in this division shall require the disclosure of that portion
of those investigative files that reflects the analysis or conclusions
of the investigating officer.

Customer lists provided to a state or local police agency by an
alarm or security company at the request of the agency shall be
construed to be records subject to this subdivision.

Notwithstanding any other provision of this subdivision, state
and local law enforcement agencies shall make public the following
information, except to the extent that disclosure of a particular
item of information would endanger the safety of a person involved
in an investigation or would endanger the successful completion
of the investigation or a related investigation:

(1) The full name and occupation of every individual arrested
by the agency, the individual’s physical description including date
of birth, color of eyes and hair, sex, height and weight, the time
and date of arrest, the time and date of booking, the location of
the arrest, the factual circumstances surrounding the arrest, the
amount of bail set, the time and manner of release or the location
where the individual is currently being held, and all charges the
individual is being held upon, including any outstanding warrants
from other jurisdictions and parole or probation holds.

(2) Subject to the restrictions imposed by Section 841.5 of the
Penal Code, the time, substance, and location of all complaints or
requests for assistance received by the agency and the time and
nature of the response thereto, including, to the extent the
information regarding crimes alleged or committed or any other
incident investigated is recorded, the time, date, and location of
occurrence, the time and date of the report, the name and age of
the victim, the factual circumstances surrounding the crime or
incident, and a general description of any injuries, property, or
weapons involved. The name of a victim of any crime defined by
Section 220, 236.1, 261, 261.5, 262, 264, 264.1, 265, 266, 266a,
266b, 266c, 266e, 266f, 266j, 267, 269, 273a, 273d, 273.5, 285,
286, 288, 288a, 288.2, 288.3 (as added by Chapter 337 of the
Statutes of 2006), 288.3 (as added by Section 6 of Proposition 83
of the November 7, 2006, statewide general election), 288.5, 288.7,
289, 422.6, 422.7, 422.75, 646.9, or 647.6 of the Penal Code may
be withheld at the victim’s request, or at the request of the victim’s
parent or guardian if the victim is a minor. When a person is the
victim of more than one crime, information disclosing that the
person is a victim of a crime defined in any of the sections of the
Penal Code set forth in this subdivision may be deleted at the
request of the victim, or the victim’s parent or guardian if the
victim is a minor, in making the report of the crime, or of any
crime or incident accompanying the crime, available to the public
in compliance with the requirements of this paragraph.

(3) Subject to the restrictions of Section 841.5 of the Penal Code
and this subdivision, the current address of every individual
arrested by the agency and the current address of the victim of a
crime, where the requester declares under penalty of perjury that
the request is made for a scholarly, journalistic, political, or
governmental purpose, or that the request is made for investigation
purposes by a licensed private investigator as described in Chapter
11.3 (commencing with Section 7512) of Division 3 of the Business
and Professions Code. However, the address of the victim of any
crime defined by Section 220, 236.1, 261, 261.5, 262, 264, 264.1,
265, 266, 266a, 266b, 266c, 266e, 266f, 266j, 267, 269, 273a,
273d, 273.5, 285, 286, 288, 288a, 288.2, 288.3 (as added by
Chapter 337 of the Statutes of 2006), 288.3 (as added by Section
6 of Proposition 83 of the November 7, 2006, statewide general
election), 288.5, 288.7, 289, 422.6, 422.7, 422.75, 646.9, or 647.6
of the Penal Code shall remain confidential. Address information
obtained pursuant to this paragraph may not be used directly or
indirectly, or furnished to another, to sell a product or service to
any individual or group of individuals, and the requester shall
execute a declaration to that effect under penalty of perjury.
Nothing in this paragraph shall be construed to prohibit or limit a
scholarly, journalistic, political, or government use of address
information obtained pursuant to this paragraph.

(g) Test questions, scoring keys, and other examination data
used to administer a licensing examination, examination for
employment, or academic examination, except as provided for in
Chapter 3 (commencing with Section 99150) of Part 65 of Division
14 of Title 3 of the Education Code.

(h) The contents of real estate appraisals or engineering or
feasibility estimates and evaluations made for or by the state or
local agency relative to the acquisition of property, or to
prospective public supply and construction contracts, until all of
the property has been acquired or all of the contract agreement
obtained. However, the law of eminent domain shall not be affected
by this provision.

(i) Information required from any taxpayer in connection with
the collection of local taxes that is received in confidence and the
disclosure of the information to other persons would result in unfair
competitive disadvantage to the person supplying the information.

(j) Library circulation records kept for the purpose of identifying
the borrower of items available in libraries, and library and museum
materials made or acquired and presented solely for reference or
exhibition purposes. The exemption in this subdivision shall not
apply to records of fines imposed on the borrowers.

(k) Records, the disclosure of which is exempted or prohibited
pursuant to federal or state law, including, but not limited to,
provisions of the Evidence Code relating to privilege.

(l) Correspondence of and to the Governor or employees of the
Governor’s office or in the custody of or maintained by the
Governor’s Legal Affairs Secretary. However, public records shall
not be transferred to the custody of the Governor’s Legal Affairs
Secretary to evade the disclosure provisions of this chapter.

(m) In the custody of or maintained by the Legislative Counsel,
except those records in the public database maintained by the
Legislative Counsel that are described in Section 10248.

(n) Statements of personal worth or personal financial data
required by a licensing agency and filed by an applicant with the
licensing agency to establish his or her personal qualification for
the license, certificate, or permit applied for.

(o) Financial data contained in applications for financing under
Division 27 (commencing with Section 44500) of the Health and
Safety Code, where an authorized officer of the California Pollution
Control Financing Authority determines that disclosure of the
financial data would be competitively injurious to the applicant
and the data is required in order to obtain guarantees from the
United States Small Business Administration. The California
Pollution Control Financing Authority shall adopt rules for review
of individual requests for confidentiality under this section and for
making available to the public those portions of an application that
are subject to disclosure under this chapter.

(p) Records of state agencies related to activities governed by
Chapter 10.3 (commencing with Section 3512), Chapter 10.5
(commencing with Section 3525), and Chapter 12 (commencing
with Section 3560) of Division 4, that reveal a state agency’s
deliberative processes, impressions, evaluations, opinions,
recommendations, meeting minutes, research, work products,
theories, or strategy, or that provide instruction, advice, or training
to employees who do not have full collective bargaining and
representation rights under these chapters. Nothing in this
subdivision shall be construed to limit the disclosure duties of a
state agency with respect to any other records relating to the
activities governed by the employee relations acts referred to in
this subdivision.

(q) (1) Records of state agencies related to activities governed
by Article 2.6 (commencing with Section 14081), Article 2.8
(commencing with Section 14087.5), and Article 2.91
(commencing with Section 14089) of Chapter 7 of Part 3 of
Division 9 of the Welfare and Institutions Code, that reveal the
special negotiator’s deliberative processes, discussions,
communications, or any other portion of the negotiations with
providers of health care services, impressions, opinions,
recommendations, meeting minutes, research, work product,
theories, or strategy, or that provide instruction, advice, or training
to employees.

(2) Except for the portion of a contract containing the rates of
payment, contracts for inpatient services entered into pursuant to
these articles, on or after April 1, 1984, shall be open to inspection
one year after they are fully executed. If a contract for inpatient
services that is entered into prior to April 1, 1984, is amended on
or after April 1, 1984, the amendment, except for any portion
containing the rates of payment, shall be open to inspection one
year after it is fully executed. If the California Medical Assistance
Commission enters into contracts with health care providers for
other than inpatient hospital services, those contracts shall be open
to inspection one year after they are fully executed.

(3) Three years after a contract or amendment is open to
inspection under this subdivision, the portion of the contract or
amendment containing the rates of payment shall be open to
inspection.

(4) Notwithstanding any other provision of law, the entire
contract or amendment shall be open to inspection by the Joint
Legislative Audit Committee and the Legislative Analyst’s Office.
The committee and that office shall maintain the confidentiality
of the contracts and amendments until the time a contract or
amendment is fully open to inspection by the public.

(r) Records of Native American graves, cemeteries, and sacred
places and records of Native American places, features, and objects
described in Sections 5097.9 and 5097.993 of the Public Resources
Code maintained by, or in the possession of, the Native American
Heritage Commission, another state agency, or a local agency.

(s) A final accreditation report of the Joint Commission on
Accreditation of Hospitals that has been transmitted to the State
Department of Health Care Services pursuant to subdivision (b)
of Section 1282 of the Health and Safety Code.

(t) Records of a local hospital district, formed pursuant to
Division 23 (commencing with Section 32000) of the Health and
Safety Code, or the records of a municipal hospital, formed
pursuant to Article 7 (commencing with Section 37600) or Article
8 (commencing with Section 37650) of Chapter 5 of Part 2 of
Division 3 of Title 4 of this code, that relate to any contract with
an insurer or nonprofit hospital service plan for inpatient or
outpatient services for alternative rates pursuant to Section 10133
of the Insurance Code. However, the record shall be open to
inspection within one year after the contract is fully executed.

(u) (1) Information contained in applications for licenses to
carry firearms issued pursuant to Section 26150, 26155, 26170,
or 26215 of the Penal Code by the sheriff of a county or the chief
or other head of a municipal police department that indicates when
or where the applicant is vulnerable to attack or that concerns the
applicant’s medical or psychological history or that of members
of his or her family.

(2) The home address and telephone number of prosecutors,
public defenders, peace officers, judges, court commissioners, and
magistrates that are set forth in applications for licenses to carry
firearms issued pursuant to Section 26150, 26155, 26170, or 26215
of the Penal Code by the sheriff of a county or the chief or other
head of a municipal police department.

(3) The home address and telephone number of prosecutors,
public defenders, peace officers, judges, court commissioners, and
magistrates that are set forth in licenses to carry firearms issued
pursuant to Section 26150, 26155, 26170, or 26215 of the Penal
Code by the sheriff of a county or the chief or other head of a
municipal police department.

(v) (1) Records of the Managed Risk Medical Insurance Board
and the State Department of Health Care Services related to
activities governed by Part 6.3 (commencing with Section 12695),
Part 6.5 (commencing with Section 12700), Part 6.6 (commencing
with Section 12739.5), and Part 6.7 (commencing with Section
12739.70) of Division 2 of the Insurance Code, and Chapter 2
(commencing with Section 15850) of Part 3.3 of Division 9 of the
Welfare and Institutions Code, and that reveal any of the following:

(A) The deliberative processes, discussions, communications,
or any other portion of the negotiations with entities contracting
or seeking to contract with the board or the department, entities
with which the board or the department is considering a contract,
or entities with which the board is considering or enters into any
other arrangement under which the board or the department
provides, receives, or arranges services or reimbursement.

(B) The impressions, opinions, recommendations, meeting
minutes, research, work product, theories, or strategy of the board
or its staff or the department or its staff, or records that provide
instructions, advice, or training to their employees.

(2) (A) Except for the portion of a contract that contains the
rates of payment, contracts entered into pursuant to Part 6.3
(commencing with Section 12695), Part 6.5 (commencing with
Section 12700), Part 6.6 (commencing with Section 12739.5), or
Part 6.7 (commencing with Section 12739.70) of Division 2 of the
Insurance Code, or Chapter 2.2 (commencing with Section 15850)
of Part 3.3 of Division 9 of the Welfare and Institutions Code, on
or after July 1, 1991, shall be open to inspection one year after
their effective dates.

(B) If a contract that is entered into prior to July 1, 1991, is
amended on or after July 1, 1991, the amendment, except for any
portion containing the rates of payment, shall be open to inspection
one year after the effective date of the amendment.

(3) Three years after a contract or amendment is open to
inspection pursuant to this subdivision, the portion of the contract
or amendment containing the rates of payment shall be open to
inspection.

(4) Notwithstanding any other law, the entire contract or
amendments to a contract shall be open to inspection by the Joint
Legislative Audit Committee. The committee shall maintain the
confidentiality of the contracts and amendments thereto, until the
contracts or amendments to the contracts are open to inspection
pursuant to paragraph (3).

(w) (1) Records of the Managed Risk Medical Insurance Board
related to activities governed by Chapter 8 (commencing with
Section 10700) of Part 2 of Division 2 of the Insurance Code, and
that reveal the deliberative processes, discussions, communications,
or any other portion of the negotiations with health plans, or the
impressions, opinions, recommendations, meeting minutes,
research, work product, theories, or strategy of the board or its
staff, or records that provide instructions, advice, or training to
employees.

(2) Except for the portion of a contract that contains the rates
of payment, contracts for health coverage entered into pursuant to
Chapter 8 (commencing with Section 10700) of Part 2 of Division
2 of the Insurance Code, on or after January 1, 1993, shall be open
to inspection one year after they have been fully executed.

(3) Notwithstanding any other law, the entire contract or
amendments to a contract shall be open to inspection by the Joint
Legislative Audit Committee. The committee shall maintain the
confidentiality of the contracts and amendments thereto, until the
contracts or amendments to the contracts are open to inspection
pursuant to paragraph (2).

(x) Financial data contained in applications for registration, or
registration renewal, as a service contractor filed with the Director
of Consumer Affairs pursuant to Chapter 20 (commencing with
Section 9800) of Division 3 of the Business and Professions Code,
for the purpose of establishing the service contractor’s net worth,
or financial data regarding the funded accounts held in escrow for
service contracts held in force in this state by a service contractor.

(y) (1) Records of the Managed Risk Medical Insurance Board
related to activities governed by Part 6.2 (commencing with Section
12693) or Part 6.4 (commencing with Section 12699.50) of
Division 2 of the Insurance Code, and that reveal any of the
following:

(A) The deliberative processes, discussions, communications,
or any other portion of the negotiations with entities contracting
or seeking to contract with the board, entities with which the board
is considering a contract, or entities with which the board is
considering or enters into any other arrangement under which the
board provides, receives, or arranges services or reimbursement.

(B) The impressions, opinions, recommendations, meeting
minutes, research, work product, theories, or strategy of the board
or its staff, or records that provide instructions, advice, or training
to employees.

(2) (A) Except for the portion of a contract that contains the
rates of payment, contracts entered into pursuant to Part 6.2
(commencing with Section 12693) or Part 6.4 (commencing with
Section 12699.50) of Division 2 of the Insurance Code, on or after
January 1, 1998, shall be open to inspection one year after their
effective dates.

(B) If a contract entered into pursuant to Part 6.2 (commencing
with Section 12693) or Part 6.4 (commencing with Section
12699.50) of Division 2 of the Insurance Code is amended, the
amendment shall be open to inspection one year after the effective
date of the amendment.

(3) Three years after a contract or amendment is open to
inspection pursuant to this subdivision, the portion of the contract
or amendment containing the rates of payment shall be open to
inspection.

(4) Notwithstanding any other law, the entire contract or
amendments to a contract shall be open to inspection by the Joint
Legislative Audit Committee. The committee shall maintain the
confidentiality of the contracts and amendments thereto until the
contract or amendments to a contract are open to inspection
pursuant to paragraph (2) or (3).

(5) The exemption from disclosure provided pursuant to this
subdivision for the contracts, deliberative processes, discussions,
communications, negotiations, impressions, opinions,
recommendations, meeting minutes, research, work product,
theories, or strategy of the board or its staff shall also apply to the
contracts, deliberative processes, discussions, communications,
negotiations, impressions, opinions, recommendations, meeting
minutes, research, work product, theories, or strategy of applicants
pursuant to Part 6.4 (commencing with Section 12699.50) of
Division 2 of the Insurance Code.

(z) Records obtained pursuant to paragraph (2) of subdivision
(f) of Section 2891.1 of the Public Utilities Code.

(aa) A document prepared by or for a state or local agency that
assesses its vulnerability to terrorist attack or other criminal acts
intended to disrupt the public agency’s operations and that is for
distribution or consideration in a closed session.

(ab) Critical infrastructure information, as defined in Section
131(3) of Title 6 of the United States Code, that is voluntarily
submitted to the California Emergency Management Agency for
use by that office, including the identity of the person who or entity
that voluntarily submitted the information. As used in this
subdivision, “voluntarily submitted” means submitted in the
absence of the office exercising any legal authority to compel
access to or submission of critical infrastructure information. This
subdivision shall not affect the status of information in the
possession of any other state or local governmental agency.

(ac) All information provided to the Secretary of State by a
person for the purpose of registration in the Advance Health Care
Directive Registry, except that those records shall be released at
the request of a health care provider, a public guardian, or the
registrant’s legal representative.

(ad) The following records of the State Compensation Insurance
Fund:

(1) Records related to claims pursuant to Chapter 1
(commencing with Section 3200) of Division 4 of the Labor Code,
to the extent that confidential medical information or other
individually identifiable information would be disclosed.

(2) Records related to the discussions, communications, or any
other portion of the negotiations with entities contracting or seeking
to contract with the fund, and any related deliberations.

(3) Records related to the impressions, opinions,
recommendations, meeting minutes of meetings or sessions that
are lawfully closed to the public, research, work product, theories,
or strategy of the fund or its staff, on the development of rates,
contracting strategy, underwriting, or competitive strategy pursuant
to the powers granted to the fund in Chapter 4 (commencing with
Section 11770) of Part 3 of Division 2 of the Insurance Code.

(4) Records obtained to provide workers’ compensation
insurance under Chapter 4 (commencing with Section 11770) of
Part 3 of Division 2 of the Insurance Code, including, but not
limited to, any medical claims information, policyholder
information provided that nothing in this paragraph shall be
interpreted to prevent an insurance agent or broker from obtaining
proprietary information or other information authorized by law to
be obtained by the agent or broker, and information on rates,
pricing, and claims handling received from brokers.

(5) (A) Records that are trade secrets pursuant to Section
6276.44, or Article 11 (commencing with Section 1060) of Chapter
4 of Division 8 of the Evidence Code, including without limitation,
instructions, advice, or training provided by the State Compensation
Insurance Fund to its board members, officers, and employees
regarding the fund’s special investigation unit, internal audit unit,
and informational security, marketing, rating, pricing, underwriting,
claims handling, audits, and collections.

(B) Notwithstanding subparagraph (A), the portions of records
containing trade secrets shall be available for review by the Joint
Legislative Audit Committee, the Bureau of State Audits, Division
of Workers’ Compensation, and the Department of Insurance to
ensure compliance with applicable law.

(6) (A) Internal audits containing proprietary information and
the following records that are related to an internal audit:

(i) Personal papers and correspondence of any person providing
assistance to the fund when that person has requested in writing
that his or her papers and correspondence be kept private and
confidential. Those papers and correspondence shall become public
records if the written request is withdrawn, or upon order of the
fund.

(ii) Papers, correspondence, memoranda, or any substantive
information pertaining to any audit not completed or an internal
audit that contains proprietary information.

(B) Notwithstanding subparagraph (A), the portions of records
containing proprietary information, or any information specified
in subparagraph (A) shall be available for review by the Joint
Legislative Audit Committee, the Bureau of State Audits, Division
of Workers’ Compensation, and the Department of Insurance to
ensure compliance with applicable law.

(7) (A) Except as provided in subparagraph (C), contracts
entered into pursuant to Chapter 4 (commencing with Section
11770) of Part 3 of Division 2 of the Insurance Code shall be open
to inspection one year after the contract has been fully executed.

(B) If a contract entered into pursuant to Chapter 4 (commencing
with Section 11770) of Part 3 of Division 2 of the Insurance Code
is amended, the amendment shall be open to inspection one year
after the amendment has been fully executed.

(C) Three years after a contract or amendment is open to
inspection pursuant to this subdivision, the portion of the contract
or amendment containing the rates of payment shall be open to
inspection.

(D) Notwithstanding any other law, the entire contract or
amendments to a contract shall be open to inspection by the Joint
Legislative Audit Committee. The committee shall maintain the
confidentiality of the contracts and amendments thereto until the
contract or amendments to a contract are open to inspection
pursuant to this paragraph.

(E) This paragraph is not intended to apply to documents related
to contracts with public entities that are not otherwise expressly
confidential as to that public entity.

(F) For purposes of this paragraph, “fully executed” means the
point in time when all of the necessary parties to the contract have
signed the contract.

This section shall not prevent any agency from opening its
records concerning the administration of the agency to public
inspection, unless disclosure is otherwise prohibited by law.

This section shall not prevent any health facility from disclosing
to a certified bargaining agent relevant financing information
pursuant to Section 8 of the National Labor Relations Act (29
U.S.C. Sec. 158).

SEC. 3.  

The Legislature finds and declares that Section 2 of
this act, which amends Section 6254 of the Government Code,
imposes a limitation on the public’s right of access to the meetings
of public bodies or the writings of public officials and agencies
within the meaning of Section 3 of Article I of the California
Constitution. Pursuant to that constitutional provision, the
Legislature makes the following findings to demonstrate the interest
protected by this limitation and the need for protecting that interest:

The potential disclosure of attorneys’ billing records could be
damaging to the legal interests of public agencies because these
records, when disclosed during the pendency of litigation, may
reveal significant strategic facts to the opposing litigant.

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