BILL NUMBER: SB 1360	CHAPTERED
	BILL TEXT

	CHAPTER  57
	FILED WITH SECRETARY OF STATE  JULY 1, 2016
	APPROVED BY GOVERNOR  JULY 1, 2016
	PASSED THE SENATE  MAY 5, 2016
	PASSED THE ASSEMBLY  JUNE 23, 2016
	AMENDED IN SENATE  MARCH 31, 2016

INTRODUCED BY   Senator Bates

                        FEBRUARY 19, 2016

   An act to amend Section 54982 of the Government Code, relating to
local government.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1360, Bates. Local government: municipal service agreements:
law enforcement services.
   Under existing law, the legislative body of any local agency,
defined to mean a county, city, city and county, or public district,
may contract with any other local agency for the performance by the
latter of municipal services or functions within the territory of the
former. Existing law requires any agreement entered into pursuant to
this authorization to be for valuable consideration.
   This bill would require a city that provides law enforcement
services through its appropriate departments, boards, commissions,
officers, or employees to another city pursuant to a contract or any
other agreement to charge that city all the costs that are incurred
in providing those law enforcement services, but prohibit the
inclusion of any costs that the city providing the services
reasonably determines are general overhead costs. The bill would
provide that any determination of general overhead costs made by a
city providing law enforcement services is subject to judicial review
as to the reasonableness of that determination. The bill would apply
to contracts or agreements entered into, or renewed, on and after
January 1, 2017.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 54982 of the Government Code is amended to
read:
   54982.  (a) Any agreement entered into pursuant to this chapter
shall be for valuable consideration, except as provided in
subdivision (b).
   (b) (1) A city that provides law enforcement services through its
appropriate departments, boards, commissions, officers, or employees
to another city pursuant to a contract or any other agreement
authorized by this chapter shall charge that city all the costs that
are incurred in providing those law enforcement services, but shall
not include any costs that the city providing the services reasonably
determines are general overhead costs.
   (2) For purposes of this section, "general overhead costs" means
those costs that a city would incur regardless of whether or not it
provided law enforcement services pursuant to a contract or agreement
to the other city.
   (3) Any determination of general overhead costs made by a city
providing law enforcement services shall be subject to judicial
review as to the reasonableness of that determination.
   (4) This subdivision shall only apply to contracts or agreements
entered into, or renewed, on and after January 1, 2017.