Amended in Assembly May 20, 2013

Amended in Assembly April 30, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1333

Introduced by Assembly Member Roger Hernández

February 22, 2013

An act to add Section 53069.86 to the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 1333, as amended, Roger Hernández. Local government: contracts.

Existing law authorizes the legislative body of a city, county, or district to enter into contracts for various services, and, among other things, to include within the contract a time within which the whole or any specified portion of the work contemplated is to be completed.

This bill would require begin insert , with a specified exception, end insert the legislative body of a city, county, or district to review any contract begin insert or memorandum of understanding (MOU) end insert with a private party, with a total annual value of $250,000 or more and containing an automatic renewal clause, at least once every three years on or before the annual date by which the contract may be rescinded.

This bill would require begin delete the review of the contract to include a consideration end delete begin insert findings to be made prior to renewal end insert as to begin insert , among other things, end insert whether the begin insert contract or MOU requires the end insert private party begin delete pays end delete begin insert to pay end insert at least the general prevailing rate of per diem wages for work of a similar character in the begin delete locality to its employees. This bill would require the contract to be rescinded unless the review of the contract contains findings that the private party pays at least the general prevailing rate of per diem wages for work of a similar character in the end delete locality, or a living wage given the locality, whichever is greater, to its employees, and begin insert whether end insert the begin delete contractor retains the end delete begin insert contract or MOU requires the retention of end insert employees of the prior contractor or subcontractor for at least 90 days.

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

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

SECTION 1.  

Section 53069.86 is added to the Government
Code, to read:

53069.86.  

(a)  begin delete The end delete begin insert Except as provided in subdivision (b), the end insert begin insert end insert
legislative body of a city, county, or district shall review any
contract begin insert or memorandum of understanding end insert with a private party,
with a total annual value of two hundred fifty thousand dollars
($250,000) or more, that contains an automatic renewal clause,
sometimes referred to as an “evergreen” provision, at least once
every three years on or before the annual date by which the contract
may be rescinded. Prior to the renewal of a contract begin insert or
memorandum of understanding end insert , the legislative body shall make
findings on the record, including, but not limited to, begin delete whether the
contract contains updated information and whether the contract
fits the needs of the legislative body. end delete begin insert all of the following: end insert

begin insert

(1) Whether the contract or memorandum of understanding
contains updated information.

end insert begin insert

(2) Whether the contract or memorandum of understanding fits
the needs of the legislative body.

end insert begin delete

(b) Any contract with an evergreen provision as described in
subdivision (a) shall be rescinded unless the review of the contract
contains both of the following findings:

end delete begin delete

(1) The

end delete

begin insert (3) end insert begin insert   end insert begin insert Whether the contract or memorandum of understanding
includes a provision that requires a end insert contractor begin delete pays end delete begin insert to pay end insert at least
the general prevailing rate of per diem wages for work of a similar
character in the locality, or a living wage given the locality,
whichever is greater, to its employees.

begin delete

(2) The contractor retains the employees of the prior contractor
or subcontractor for at least 90 days.

end delete begin insert

(4) Whether the contract or memorandum of understanding
includes a provision that requires the retention of employees of
the prior contractor or subcontractor for at least 90 days if the
contract is awarded, transferred, or assumed by a subsequent
contractor.

end insert begin insert

(b) This section shall not apply to a contract or memorandum
of understanding between a public agency and an employee
organization that establishes terms and conditions of employment
for the agency’s employees.

end insert

(c) For purposes of this section, the prevailing rate of per diem
wages shall be determined pursuant to subdivision (b) of Section
1773.9 of the Labor Code.

(d) For purposes of this section, “per diem wages” shall include
the employer payments described in Section 1773.1 of the Labor
Code.