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(4) For the purposes of this subdivision, the term “employee” shall include an officer or an
independent contractor who functions as an officer or an employee but shall not include any
elected official, member of a legislative body or other independent contractors. This subdivision
shall not limit local officials’ ability to hold closed session meetings pursuant to Sections 1461,
32106, and 32155 of the Health and Safety Code or Sections 37606 and 37624.3 of the
Government Code. Closed sessions held pursuant to this subdivision shall not include discussion
or action on proposed compensation except for a reduction of compensation that results from the
imposition of discipline.

54957.1. Public report of action taken in closed session

(a) The legislative body of any local agency shall publicly report any action taken in closed
session and the vote or abstention on that action of every member present thereon, as follows:

(1) Approval of an agreement concluding real estate negotiations pursuant to Section 54956.8
shall be reported after the agreement is final, as follows:

(A) If its own approval renders the agreement final, the body shall report that approval and the
substance of the agreement in open session at the public meeting during which the closed session
is held.

(B) If final approval rests with the other party to the negotiations, the local agency shall disclose
the fact of that approval and the substance of the agreement upon inquiry by any person, as soon
as the other party or its agent has informed the local agency of its approval.

(2) Approval given to its legal counsel to defend, or seek or refrain from seeking appellate
review or relief, or to enter as an amicus curiae in any form of litigation as the result of a
consultation under Section 54956.9 shall be reported in open session at the public meeting during
which the closed session is held. The report shall identify, if known, the adverse party or parties
and the substance of the litigation. In the case of approval given to initiate or intervene in an
action, the announcement need not identify the action, the defendants, or other particulars, but
shall specify that the direction to initiate or intervene in an action has been given and that the
action, the defendants, and the other particulars shall, once formally commenced, be disclosed to
any person upon inquiry, unless to do so would jeopardize the agency’s ability to effectuate
service of process on one or more unserved parties, or that to do so would jeopardize its ability to
conclude existing settlement negotiations to its advantage.

(3) Approval given to its legal counsel of a settlement of pending litigation, as defined in
Section 54956.9, at any stage prior to or during a judicial or quasi-judicial proceeding shall be
reported after the settlement is final, as follows:

(A) If the legislative body accepts a settlement offer signed by the opposing party, the body shall
report its acceptance and identify the substance of the agreement in open session at the public
meeting during which the closed session is held.

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