Bill Text: CA SB407 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Local government: officers and employees: contracts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-09-06 - Chaptered by Secretary of State. Chapter 213, Statutes of 2013. [SB407 Detail]

Download: California-2013-SB407-Introduced.html

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BILL NUMBER: SB 407	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Hill

                        FEBRUARY 20, 2013

   An act to amend Sections 3511.1, 3511.2, 53243, and 53243.1 of the
Government Code, relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 407, as introduced, Hill. Local government: officers and
employees: contracts.
   Existing law, commencing on January 1, 2012, prohibits an
employment contract for a local agency executive, as defined, from
providing an automatic renewal of a contract that provides for an
automatic compensation increase in excess of a cost-of-living
adjustment or a maximum cash settlement in excess of certain limits,
as specified. Existing law defines the term "local agency executive"
for these purposes, and includes within that definition any person
who is either the chief executive officer of the local agency or a
department head of a local agency.
   This bill would additionally include within the definition of
"local agency executive" any person who is a deputy or assistant
chief executive officer, and any person whose position is held by an
employment contract between that person and the local agency. By
expanding the duties of local officials, this bill would impose a
state-mandated local program. The bill would also specify that the
removal of automatic increases in salary in excess of a
cost-of-living adjustment or a maximum cash settlement in excess of
those limits upon automatic renewal of a contract, is not intended to
require renegotiation of the terms of the contract unless both
parties to the contract agree to renegotiate the terms of the
contract.
   Existing law, commencing on January 1, 2012, requires a contract
executed or renewed between a local agency and an officer or employee
of the local agency to include a provision that requires an officer
or employee of a local agency who is convicted of a crime involving
an abuse of his or her office or position, as defined, to fully
reimburse the local agency for specified payments made by that local
agency to the officer or employee.
   The bill would also require an officer or employee of the local
agency, who is convicted of a crime involving an abuse of his or her
office, to fully reimburse any such payments that are made by the
local agency in the absence of a contractual obligation between the
agency and the officer or employee.
   This bill would specify that the addition of these provisions upon
automatic renewal of a contract, is not intended to require
renegotiation of the terms of the contract unless both parties to the
contract agree to renegotiate the terms of the contract.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 3511.1 of the Government Code is amended to
read:
   3511.1.  As used in this chapter, the following definitions apply:

   (a) "Compensation" means annual salary, stipend, or bonus, paid by
a local agency employer to a local agency executive.
   (b) "Cost-of-living" means the California Consumer Price Index for
Urban Wage Earners and Clerical Workers as calculated by the
Department of Industrial Relations.
   (c) "Local agency" means a county, city, whether general law or
chartered, city and county, town, school district, municipal
corporation, district, political subdivision, or any board,
commission, or agency thereof, or other local public agency.
   (d) "Local agency executive" means any person employed by a local
agency who is not subject to the Meyers-Milias-Brown Act (Chapter 10
(commencing with Section 3500)), Chapter 5 (commencing with Section
45100) of Part 25 of Division 3 of Title 2 of the Education Code, or
Chapter 4 (commencing with Section 88000) of Part 51 of Division 7 of
Title 3 of the Education Code, and who meets either of the following
requirements:
   (1) The person is the chief executive officer  , a deputy
chief executive officer, or an assistant chief executive officer
 of the local agency.
   (2) The person is the head of a department of a local agency. 

   (3) The person's position within the local agency is held by an
employment contract between the local agency and that person. 
  SEC. 2.  Section 3511.2 of the Government Code is amended to read:
   3511.2.  On or after January 1, 2012, any contract executed or
renewed between a local agency and a local agency executive shall not
provide for the following:
   (a) An automatic renewal of a contract that provides for an
automatic increase in the level of compensation that exceeds a
cost-of-living adjustment.
   (b) A maximum cash settlement that exceeds the amounts determined
pursuant to Article 3.5 (commencing with Section 53260) of Chapter 2
of Part 1 of Division 2 of Title 5. 
   (c) This section shall not require the renegotiation of a contract
that is set to automatically renew upon the removal of any provision
prohibited by this section, but does not prohibit the renegotiation
of the terms of the contract upon automatic renewal if all parties to
the contract agree to renegotiate. 
  SEC. 3.  Section 53243 of the Government Code is amended to read:
   53243.   (a)    On or after January 1, 2012, any
contract executed or renewed between a local agency and an officer
or employee of a local agency that provides paid leave salary offered
by the local agency to the officer or employee pending an
investigation shall require that any salary provided for that purpose
be fully reimbursed if the officer or employee is convicted of a
crime involving an abuse of his or her office or position. 
   (b) This section shall not require the renegotiation of a contract
that is set to automatically renew upon the addition of the
provision required by this section, but does not prohibit the
renegotiation of the terms of the contract upon automatic renewal if
all parties to the contract agree to renegotiate. 
  SEC. 4.  Section 53243.1 of the Government Code is amended to read:

   53243.1.   (a)    On or after January 1, 2012,
any contract executed or renewed between a local agency and an
officer or employee of a local agency that provides funds for the
legal criminal defense of an officer or employee shall require that
any funds provided for that purpose be fully reimbursed to the local
agency if the officer or employee is convicted of a crime involving
an abuse of his or her office or position. 
   (b) This section shall not require the renegotiation of a contract
that is set to automatically renew upon the addition of the
provision required by this section, but does not prohibit the
renegotiation of the terms of the contract upon automatic renewal if
all parties to the contract agree to renegotiate. 
  SEC. 5.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.