BILL NUMBER: AB 827 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 30, 2010
PASSED THE ASSEMBLY AUGUST 31, 2010
AMENDED IN SENATE AUGUST 27, 2010
AMENDED IN SENATE AUGUST 18, 2010
AMENDED IN SENATE SEPTEMBER 3, 2009
AMENDED IN SENATE JULY 7, 2009
AMENDED IN SENATE JUNE 24, 2009
AMENDED IN ASSEMBLY MAY 6, 2009
INTRODUCED BY Assembly Member De La Torre
(Principal coauthor: Assembly Member Feuer)
(Coauthor: Assembly Member Yamada)
FEBRUARY 26, 2009
An act to add Chapter 10.1 (commencing with Section 3511.1) to
Division 4 of Title 1 of the Government Code, relating to local
public employees, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 827, De La Torre. Local public employees.
The Meyers-Milias-Brown Act contains various provisions that
govern collective bargaining of local represented employees. The
Ralph M. Brown Act requires that all meetings of a legislative body
of a local agency be open and public and all persons be permitted to
attend unless a closed session is authorized. Existing law requires
all contracts of employment between an employee and a local agency
employer to include a provision which 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 a maximum of
18 months.
This bill would, on and after January 1, 2011, additionally
prohibit an employment contract for a local excluded employee, as
defined, from including any clause that provides for an automatic
renewal, an automatic compensation increase, as specified, or an
automatic compensation increase in excess of a cost-of-living
adjustment. The bill would also require the local agency, as defined,
to complete a performance review of any excluded employee, as
defined, before an increase in compensation in excess of a
cost-of-living adjustment may be implemented for that individual. The
bill would also specify that those records, procedures, and actions
shall conform to the requirements of law, including, but not limited
to, the Public Records Act and the Ralph M. Brown Act. By expanding
the duties of local officials, this bill would impose a
state-mandated local program.
The bill would express a legislative finding and declaration that,
to ensure the statewide integrity of local government, the
procedures for the appointment and compensation of excluded employees
are an issue of statewide concern and that, therefore, all counties
and cities, including charter counties, charter cities, and charter
cities and counties, would be subject to the provisions of the bill.
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.
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 10.1 (commencing with Section 3511.1) is added
to Division 4 of Title 1 of the Government Code, to read:
CHAPTER 10.1. EXCLUDED LOCAL PUBLIC EMPLOYEES
3511.1. As used in this chapter, the following definitions apply:
(a) "Compensation" means any of the following:
(1) Annual salary or stipend.
(2) Local agency payments to the filer's deferred compensation or
defined benefit plans.
(3) Automobile and equipment allowances.
(4) Supplemental incentive and bonus payments.
(5) Local agency payments to the filer that are in excess of the
standard benefits that the local agency offers for all other
employees.
(b) "Cost-of-living" means the Consumer Price Index that applies
to a local agency, as calculated by the Department of Finance using a
formula developed by the Department of Industrial Relations.
(c) "Excluded employee" means any person who is or will be
employed by, and report directly to, the legislative body of a local
agency and 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. "Excluded employee"
includes any person who performs governmental duties for a local
agency pursuant to a contract with that local agency and any person
who is considered an at-will employee.
(d) "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.
3511.2. On or after January 1, 2011, no contract executed or
renewed between a local agency and an excluded employee shall provide
for any of the following:
(a) An automatic renewal of the contract.
(b) An automatic increase in compensation that exceeds a
cost-of-living adjustment.
(c) An automatic increase in compensation that is linked to
another contract, including an agreement entered into pursuant 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.
(d) 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.
3511.3. (a) Before a local agency may increase the compensation
of an excluded employee, the local agency shall complete a
performance review of the excluded employee.
(b) The records, procedures, and actions shall conform to the
requirements of law, including, but not limited to, the Public
Records Act (Chapter 3.5 (commencing with Section 6250) of Division
7) and the Ralph M. Brown Act (Chapter 9 (commencing with Section
54950) of Part 1 of Division 2 of Title 5).
(c) This section does not apply to cost-of-living adjustments to
compensation.
SEC. 2. The Legislature finds and declares that the fiscal
integrity and stability of local governmental agencies in this state,
including charter cities and charter counties, have a direct impact
on the long-term well-being of all the residents of this state. The
likelihood of businesses locating to or staying in the state is
affected by the perception of a functioning, transparent, and
practical governmental structure in the local governmental bodies in
California. Therefore, the Legislature finds and declares that to
ensure the statewide integrity of local government, the procedures
for the appointment and compensation of excluded employees are an
issue of statewide concern. Therefore, this act shall apply to all
counties and cities, including charter counties, charter cities, and
charter cities and counties.
SEC. 3. 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.
SEC. 4. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to preserve fiscal integrity and stability of local
government agencies in this state and the perception of a
functioning, transparent, and practical governmental structure in the
local government bodies in California at the earliest possible time,
it is necessary for this measure to take effect immediately.