California Legislature—2013–14 Regular Session

Assembly BillNo. 280


Introduced by Assembly Member Alejo

February 11, 2013


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

LEGISLATIVE COUNSEL’S DIGEST

AB 280, as introduced, 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 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, regardless of the number of months left on the unexpired term of the contract, the maximum cash settlement shall be an amount equal to the monthly salary of the employee multiplied by 3.

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 it is confirmed 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 would change the maximum cash or noncash settlement amount that may be paid by a local agency employer to its district superintendent of schools under these provisions to an amount no greater than the superintendent’s monthly salary multiplied by zero to 3.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 53260 of the Government Code is
2amended to read:

3

53260.  

(a) All contracts of employment between an employee
4and a local agency employer shall include a provisionbegin delete whichend deletebegin insert that end insert
5 provides that regardless of the term of the contract, if the contract
6is terminated, the maximum cash settlement that an employee may
7receive shall be an amount equal to the monthly salary of the
8employee multiplied by the number of months left on the unexpired
9term of the contractbegin delete. However, ifend deletebegin insert, with the following exceptions:end insert

10begin insert(1)end insertbegin insertend insertbegin insertIfend insert the unexpired term of the contract is greater than 18
11months, the maximum cash settlement shall be an amount equal
12to the monthly salary of the employee multiplied by 18.

begin insert

13(2) In the case of a district superintendent of schools, regardless
14of the number of months left on the unexpired term of the contract,
15the maximum cash settlement shall be an amount equal to the
16monthly salary of the employee multiplied by three.

end insert

17(b) (1) Notwithstanding subdivision (a), if a local agency
18employer, including an administrator appointed by the
19Superintendent, terminates its contract of employment with its
20district superintendent of schoolsbegin insert,end insert that local agency employer may
21not provide a cash or noncash settlement to its superintendent in
22an amount greater than the superintendent’s monthly salary
23multiplied by zero tobegin delete sixend deletebegin insert threeend insert if the local agency employer
24believes, and subsequently confirms, pursuant to an independent
25audit, that the superintendent has engaged in fraud,
26misappropriation of funds, or other illegal fiscal practices. The
27amount of the cash settlement described in this paragraph shall be
28determined by an administrative law judge after a hearing.

P3    1(2) This subdivision applies only to a contract for employment
2negotiated on or afterbegin delete the effective date of the act that added this
3subdivisionend delete
begin insert January 1, 2014end insert.

4(c) The cash settlement formula described in subdivisions (a)
5and (b) are maximum ceiling on the amounts that may be paid by
6a local agency employer to an employee and is not a target or
7example of the amount of the cash settlement to be paid by a local
8agency employer to an employee in all contract termination cases.



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