BILL NUMBER: AB 1333	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 20, 2013
	AMENDED IN ASSEMBLY  APRIL 30, 2013

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  , with a specified exception, 
the legislative body of a city, county, or district to review any
contract  or memorandum of understanding (MOU)  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rescinded.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  the review of the contract to
include a consideration   findings to be made prior to
renewal  as to  , among other things,  whether the 
contract or MOU requires the  private party  pays
  to pay  at least the general prevailing rate of
per diem wages for work of a similar character in the 
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rescinded unless the review of the contract contains findings that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  locality,
or a living wage given the locality, whichever is greater, to its
employees, and  whether  the  contractor retains the
  contract or MOU requires the retention of 
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)  The   Except as provided in
subdivision (b), the    legislative body of a city,
county, or district shall review any contract  or memorandum of
understanding  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  or memorandum of understanding  , the
legislative body shall make findings on the record, including, but
not limited to,  whether the contract contains updated
information and whether the contract fits the needs of the
legislative body.   all of the following:  
   (1) Whether the contract or memorandum of understanding contains
updated information.  
   (2) Whether the contract or memorandum of understanding fits the
needs of the legislative body.  
   (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:  
   (1) The 
    (3)     Whether the contract or  
memorandum of understanding includes a provision that requires a
 contractor  pays   to pay  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. 
   (2) The contractor retains the employees of the prior contractor
or subcontractor for at least 90 days.  
   (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. 

   (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. 
   (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.