Navigating California’s Changing Landscape: An Overview of Recent Legislative Changes Impacting Public Agencies
In the ever-evolving landscape of public governance, staying informed about legislative changes is crucial for local agencies to adapt and thrive. This blog post explores key developments in California law, focusing on three significant areas that affect public agencies: Remote Meetings (Assembly Bill (“AB”) 361 and AB 557), Bagley-Keene Open Meeting Act Amendments (Senate Bill (“SB”) 544), and Changes to Conflict of Interest Laws (AB 334). Additionally, we will touch upon some updates to the California Environmental Quality Act (“CEQA”) brought about by SB 149 and SB 69. Lastly, we will offer a reminder about debt reporting requirements for local public agencies.
1. Remote Meetings: What You Need to Know
In 2021, the California Legislature passed AB 361, allowing local agencies to use teleconferencing for board meetings during a state of emergency without complying with the teleconferencing requirements of the Ralph M. Brown Act. Governor Newsom ended the COVID-era State of Emergency on February 28, 2023, such that local agencies could no longer rely on AB 361 in the absence of a statewide declared emergency. AB 557, enacted in 2023, eliminates the sunset provision in AB 361, extending the authorization indefinitely. AB 557 also adjusts timing requirements, extending the period for resolutions reauthorizing emergency remote meetings from every 30 days to 45 days. Notably, effective January 1, 2026, AB 557 eliminates board members’ ability to participate via teleconferencing pursuant to the “just cause” and “emergency circumstances” rules enacted previously under AB 2449.
In summary, local agency board members seeking remote participation in board meetings have three options: (a) comply with existing Brown Act teleconferencing rules, (b) use emergency remote meetings in specific circumstances, or (c) participate under “just cause” or “emergency circumstances” rules until January 1, 2026.
2. Changes to Open Meeting Rules: Stay Informed
SB 544 introduces alternative rules to the Bagley-Keene Open Meeting Act, allowing members of a state body to participate in meetings remotely without traditional teleconferencing rules contained in the Act. Members of the public must have the ability to remotely hear audio of the meeting, remotely observe the meeting, remotely address the body, or attend the meeting by providing specified contact information. While this does not directly apply to local agencies, it may set a precedent that may influence local public agencies regarding remote participation.
3. Avoiding Contractor Conflicts of Interests: New Rules
AB 334 addresses conflicts of interest laws affecting contractors working with governmental agencies. Government Code Section 1090 prohibits public officials from being financially interested in a contract with their agency. AB 334 adds Section 1097.6 to the Government Code, which allows public agencies to engage an independent contractor in both earlier and later phases of a project without violating Section 1090 under specific conditions. To avoid penalties under Section 1090, independent contractors must also act in good faith reliance on this new law, include statutory language in the contract between the public agency and the independent contractor, and not be in breach of its contractual obligations. The inclusion in contracts with the contractor of certain language regarding the limitations of duties and services of the contractor is crucial, providing more flexibility for agencies in engaging design professionals for various project phases.
4. California Environmental Quality Act (“CEQA”) Updates: What You Should Be Aware Of
- SB 149: This bill amends the Public Resources Act, providing public agencies more control over preparing the administrative record in a CEQA case. Previously, the plaintiff or petitioner could elect to prepare the administrative record, subject to certification of its accuracy by the public agency. SB 149 allows public agencies to deny a plaintiff’s request, in which case the public agency will bear the costs to prepare and certify the record. The costs cannot be recovered from the plaintiff or petitioner. This change may help keep public agency’s costs lower by allowing the public agency to prepare its own administrative record. Additionally, SB 149 introduces a process for certifying certain infrastructure projects, aiming to expedite CEQA litigation for certified projects within 270 days.
- SB 69: CEQA mandates, among other things, a local agency that approves or determines to carry out a project subject to CEQA to file a notice of determination with the county clerk of each county in which the project will be located. Additionally, CEQA authorizes a local agency that determines a project is not subject to CEQA to file a notice of exemption with the county clerk of each county in which the project will be located. In addition to the above requirements, SB 69 requires local agencies to file notices of determination with the State Clearinghouse in the Office of Planning and Research. It also requires subsequent notices to be posted in the county clerk office and the county clerk’s internet website.
5. Don’t Forget to Report your Debt Issuances: A Quick Reminder
While not new legislation, it is crucial for public agencies issuing bonds and debt to adhere to California Government Code requirements. This includes timely filing of reports of proposed debt issuances with the California Debt and Investment Advisory Commission (“CDIAC”), adopting local debt policies concerning the use of debt by the public agency, filing a timely report of final sale of debt with the CDIAC, and submitting annual reports to the CDIAC for any issue of debt for which it has submitted a report of final sale on or after January 21, 2017.
Conclusion: Adapting to legislative changes is essential for public agencies to operate effectively and transparently. By understanding and incorporating these recent developments into their practices, local agencies can navigate the complexities of remote meetings, open meeting acts, conflict of interest laws, CEQA requirements, and debt reporting. Staying informed ensures that agencies can fulfill their responsibilities while contributing to the overall well-being of their communities.
Authors
