BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON EDUCATION
                                Carol Liu, Chair
                           2013-2014 Regular Session
                                        

          BILL NO:       SB 1347
          AUTHOR:        Anderson
          AMENDED:       March 25, 2014
          FISCAL COMM:   Yes            HEARING DATE:  April 30, 2014
          URGENCY:       No             CONSULTANT:Kathleen Chavira

           SUBJECT  :  School district public works contracts.
          
          SUMMARY  

          This bill requires a school district to post the final  
          contract awarded for any publicly bid public construction  
          or improvement of $5,000 or more on the district's Internet  
          Web site. 

           BACKGROUND  

          Existing law, the California Public Records Act (CPRA)  
          governs the disclosure of information collected and  
          maintained by public agencies. Generally, all public  
          records are accessible to the public upon request, unless  
          the record requested is exempt from public disclosure.   
          There are 30 general categories of documents or information  
          that are exempt from disclosure, essentially due to the  
          character of the information.  Unless it is shown that the  
          public's interest in disclosure outweighs the public's  
          interest in non-disclosure of the information, the exempt  
          information may be withheld by the public agency that has  
          custody of the information.  (Government Code � 6250, et  
          al)

          Current law requires the governing board of a school  
          district, to competitively bid, and award to the lowest  
          responsible bidder, any contract for a public project (as  
          defined) with an expenditure of $15,000 or more. (Public  
          Contract Code � 20111)

          Current law authorizes the local governing board of a  
          school district to enter into a contract for construction,  
          reconstruction, erection, alteration, renovation,  
          improvement, demolition, and repair work involving any  




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          publicly owned, leased, or operated facility involving an  
          expenditure of fifteen thousand dollars ($15,000) or more,  
          to the lowest responsible bidder and outlines various  
          procedures to be followed.  (Public Contract Code �  
          20110-20118.4)

           ANALYSIS
           
           This bill  requires a school district to post on its  
          website, at its next regular update, every publicly bid  
          public works construction or improvement contract awarded  
          for $5,000 or more. 

           STAFF COMMENTS  

           1)   Need for the bill  .  According to the author, current  
               law does not provide for easy public access to copies  
               of construction/remodeling contracts of $5000 or more.  
                Requiring that contracts be posted on the district's  
               website would increase the transparency of government  
               and public awareness of the use of tax dollars.  This  
               bill seeks to update the format in which these  
               contracts are available to ensure that what is already  
               available in paper format can be accessed online.

           2)   What is currently required  ?  Disclosure of information  
               on awarded contracts is currently generally provided  
               in two ways:  

               a)        As each contract must be reviewed and  
                    adopted by the local governing board, the minutes  
                    of school board meetings, which are generally  
                    posted on a district's website, will include a  
                    list of contracts reviewed and approved by the  
                    Board. While it can be argued that this  
                    information can be obtained by a review of the  
                    minutes of the meeting of the school board,  
                    posting a list of these contracts on the  
                    district's website could facilitate access and  
                    transparency for the public. 

               b)        Disclosure of the details of an individual  
                    contract, as required by this bill is generally  
                    done in compliance with a Public Records Act  
                    (PRA) request.  When such a request is received,  
                    the district is required to redact any  




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                    proprietary, trade secret, or otherwise legally  
                    privileged or confidential information from  
                    contracts before making the document available. 

               This bill requires the automatic posting of each  
               individual contract, whether or not a PRA request is  
               received, creating significant and potentially  
               unnecessary expense for districts to review and redact  
               confidential information from every contract prior to  
               posting.  Staff recommends the bill be amended to  
               delete the requirement that individual contracts be  
               posted and instead require that a list of contracts  
               awarded be posted on the district's website. 

           3)   Posting in perpetuity  ?  As currently drafted, the  
               posting of contracts that meet the bill's criteria  
               would be required indefinitely.  Staff recommends the  
               bill be amended to narrow its provisions and require  
               that a list of contracts awarded in the prior year be  
               posted.

           4)   Charter Schools  ?  In a prior form, this bill's  
               provisions applied to all local agencies.  While the  
               bill has been narrowed to apply to school districts,  
               it is unclear why other K-12 educational agencies are  
               not included. 

               Current law exempts charter schools from most state  
               statutes governing school districts.  Charter schools  
               are currently exempt from Education and Public  
               Contract Code provisions applicable to the  
               construction of school facilities unless these  
               activities are undertaken with state funds, in which  
               case they would be subject to public contract code  
               provisions and be required to comply with public bid  
               provisions.   Staff recommends the bill be amended to  
               require that charter schools that enter into publicly  
               bid construction or improvement contracts of $5,000 or  
               more be required to comply with the bill's provisions.  


           SUPPORT  

          Air Conditioning Trade Association
          Associated Builders and Contractors - San Diego Chapter
          Associated Builders and Contractors, (ABC California)




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          Gems Environmental Management Services, Inc.
          Western Electrical Contractors Association
          Nine individual letters

           OPPOSITION

           California Association of School Business Officials (CASBO)
          Coalition for Adequate School Housing 
          Los Angeles Unified School District
          San Diego Unified School District