Senator Yee’s bill would increase public access to government contracts

SACRAMENTO – On a 69-0 vote, the California State Assembly today sent Governor Arnold Schwarzenegger (R-Los Angeles) legislation to allow greater public access to government contracts as well as audits and reviews of public agencies.  Once the bill is received by the Governor, he will have twelve days to sign or veto the legislation.

Senate Bill 1696, authored by Senator Leland Yee (D-San Francisco/San Mateo), would prohibit a state or local agency from allowing an outside entity to control the disclosure of information that is otherwise subject to the state’s Public Records Act.  In addition, the bill would specify that regardless of any contract term to the contrary, a contract for the purpose of conducting a review, audit, or report between a private entity and a state or local agency is subject to the same disclosure requirements as other public records.

The need for the measure arose from the denial of a January 2007 request by the San Francisco Chronicle to the University of California at San Francisco (UCSF).  UCSF refused to release an independent review of its finances or even the name of the firm that was issued a contract for $165,000 to carry out the review.  UCSF claimed the auditing firm controlled the confidentiality of the contract and the audit.

Since the inception of the California Public Records Act, records created, held, maintained or used by a state or local agency have been presumptively disclosable to the public unless an exemption in the law permits the agency to withhold requested information.  The law was enacted to ensure accountability of government institutions and specifically states that “access to information concerning the conduct of the people’s business is a fundamental and necessary right of every person in this state.”

“The public deserves to see how their tax dollars are being spent and should not be prevented access to contracts, audits, reviews or reports of government agencies,” said Yee.  “Simply entering into a confidentiality agreement with a third party will no longer be an excuse to not disclose information and avoid scrutiny and accountability.”

“SB 1696 will block this end-run strategy while also safeguarding the essential principles of public accessibility and accountability in the California Public Records Act that have been established for forty years,” said Jim Ewert, Legal Counsel for the California Newspaper Publishers Association (CNPA).  “CNPA applauds Senator Yee’s leadership in protecting the rights of the public to access information about government institutions and their activities.”

“We strongly believe that it is crucial that the public have the right to obtain information on government agencies if there is to be true oversight of public agencies,” said Lakesha Harrison, President of the American Federation of State, County, and Municipal Employees (AFSCME Local 3299).  “We are proud to support this important piece of legislation and we appreciate Senator Yee’s ongoing commitment to ensuring public access and oversight of public institutions.”

In addition to CNPA and AFSCME, SB 1696 is also supported by the Council of University of California Faculty Associations, California Faculty Association, Foundation for Taxpayer and Consumer Rights, California School Employees Association, Californians Aware, California Labor Federation, Associated Students of the University of California (Davis), Service Employees International Union, and the California Nurses Association, among others.

Last year, Yee authored and passed another major transparency bill targeted towards UC – SB 190 also known as the Higher Education Governance Accountability Act.   SB 190 requires all executive compensation packages at the UC and the California State University to be voted on in an open session of a subcommittee and the full board.  The bill also requires full disclosure of the compensation package with accompanying rationale, allows the public to comment on such action items, and opens advisory group meetings that deal with compensation matters.

In April, the State Senate approved SB 1696 on a 33-1 vote.