Amended in Senate June 26, 2013

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, with a specified exception, begin insert if a contract or memorandum of understanding with a total annual value of $250,000 or more between a private party and a city, county, city and county, or end insert begin insert district contains an automatic renewal clause, end insert the legislative body of begin delete 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an automatic renewal clause, at least once every three years on or before the annual date by which the contract may be rescinded end delete begin insert the city, county, city and county, or district to, on or before the annual date by which the contract may be rescinded, adopt a resolution that either exercises or declines to exercise the option to rescind the contract, as specified end insert .

begin delete

This bill would require findings to be made prior to renewal as to, among other things, whether the contract or MOU requires the private party 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, and whether the contract or MOU requires the retention of employees of the prior contractor or subcontractor for at least 90 days.

end delete

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 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, end delete begin insert If
a contract or memorandum of understanding end insert with a total annual
value of two hundred fifty thousand dollars ($250,000) or begin delete more,
that end delete begin insert more between a private party and a city, county, city and
county, or district end insert contains an automatic renewal clause, sometimes
referred to as an “evergreen” provision, begin delete at least once every three
years end delete begin insert the legislative body of the city, county, city and county, or end insert
begin insert district shall, end insert on or before the annual date by which the contract
may be rescinded begin insert , adopt a resolution that either exercises or
declines to exercise the option to rescind the contract. The
resolution shall be placed on the agenda of a regular meeting of
the legislative body and shall be adopted after the legislative body
has provided an opportunity for public comment on the resolution
in an open and public regular meeting end insert . begin delete 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,
all of the following: end delete

begin delete

(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.

(3) Whether the contract or memorandum of understanding
includes a provision that requires a contractor 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.

(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 delete

(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.

begin delete

(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.

end delete