BILL NUMBER: AB 1333	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 26, 2013
	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,  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   district contains an automatic renewal clause,
 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rescinded   the city, county, city and county, or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be rescinded, adopt a resolution that either exercises or declines to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  .

   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. 

   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)  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,
  If a contract or memorandum of understanding 
with a total annual value of two hundred fifty thousand dollars
($250,000) or  more, that   more between a
private party and a city, county, city and county, or  
district  contains an automatic renewal clause, sometimes
referred to as an "evergreen" provision,  at least once every
three years   the legislative body of the city, county,
city and county, or   district shall,  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. 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  .  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:
 
   (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.

   (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.