Bill Text: CA AB215 | 2015-2016 | Regular Session | Chaptered

California Assembly Bill 215 (Prior Session Legislation)

Bill Title: Local agency employment contracts: maximum cash settlement.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Passed) 2015-09-02 - Chaptered by Secretary of State - Chapter 240, Statutes of 2015. [AB215 Detail]

Download: California-2015-AB215-Chaptered.html

BILL NUMBER: AB 215	CHAPTERED
	BILL TEXT

	CHAPTER  240
	FILED WITH SECRETARY OF STATE  SEPTEMBER 2, 2015
	APPROVED BY GOVERNOR  SEPTEMBER 2, 2015
	PASSED THE SENATE  AUGUST 17, 2015
	PASSED THE ASSEMBLY  JUNE 4, 2015
	AMENDED IN ASSEMBLY  JUNE 2, 2015
	AMENDED IN ASSEMBLY  MAY 4, 2015
	AMENDED IN ASSEMBLY  APRIL 6, 2015

INTRODUCED BY   Assembly Member Alejo

                        FEBRUARY 2, 2015

   An act to amend Section 53260 of the Government Code, relating to
employment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 215, Alejo. Local agency employment contracts: maximum cash
settlement.
   Existing law requires all employment contracts between an employee
and a local agency employer to contain a provision that provides for
the amount of a cash settlement that may be paid out if the contract
is terminated, as specified. Existing law provides that the maximum
settlement that an employee can receive is an amount equal to the
monthly salary of the employee multiplied by the number of months
left on the unexpired term of the contract, or, if the unexpired
terms of the contract is greater than 18 months, an amount equal to
the monthly salary of the employee multiplied by 18.
   This bill would provide that in the case of a district
superintendent of schools, for contracts of employment executed on or
after January 1, 2016, the maximum cash settlement shall be an
amount equal to the monthly salary of the employee multiplied by 12.
   Existing law limits the amount of a cash or noncash settlement
that a local agency employer may provide its district superintendent
of schools to an amount no greater than the superintendent's monthly
salary multiplied by zero to 6, if it terminates the superintendent's
contract of employment and confirms pursuant to an independent audit
that the superintendent engaged in fraud, misappropriation of funds,
or other illegal fiscal practices. In this case, existing law
requires an administrative law judge, after a hearing, to determine
the amount of the cash settlement.
   This bill, with regard to a contract for employment executed on or
after January 1, 2016, would instead provide that a cash or noncash
settlement in any amount may be paid by a local agency employer to
its district superintendent of schools under these provisions.


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

  SECTION 1.  Section 53260 of the Government Code is amended to
read:
   53260.  (a) All contracts of employment between an employee and a
local agency employer shall include a provision that provides that
regardless of the term of the contract, if the contract is
terminated, the maximum cash settlement that an employee may receive
shall be an amount equal to the monthly salary of the employee
multiplied by the number of months left on the unexpired term of the
contract, with the following exceptions:
   (1) If the unexpired term of the contract is greater than 18
months, the maximum cash settlement shall be an amount equal to the
monthly salary of the employee multiplied by 18.
   (2) In the case of a district superintendent of schools, for
contracts of employment executed on or after January 1, 2016, the
maximum cash settlement shall be an amount equal to the monthly
salary of the employee multiplied by 12.
   (b) (1) Notwithstanding subdivision (a), if a local agency
employer, including an administrator appointed by the Superintendent,
terminates its contract of employment with its district
superintendent of schools, that local agency employer shall not
provide a cash or noncash settlement to its superintendent in any
amount if the local agency employer believes, and subsequently
confirms, pursuant to an independent audit, that the superintendent
has engaged in fraud, misappropriation of funds, or other illegal
fiscal practices.
   (2) This subdivision applies only to a contract for employment
executed on or after January 1, 2016.
   (c) The cash settlement formulas described in subdivision (a) are
maximum amounts that may be paid by a local agency employer to an
employee and not a target or example of the amount of the cash
settlement to be paid by a local agency employer to an employee in
all contract termination cases.