BILL ANALYSIS �
SB 407
Page 1
Date of Hearing: August 14, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 407 (Hill) - As Amended: April 1, 2013
Policy Committee: Local
GovernmentVote:9-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill expands the types of local agency employees subject to
specific contract requirements in existing law. The employees
specifically included are any deputy and assistant local
government executives and any other employee whose position is
held by an employment contract. The bill applies to executives
of cities, counties, special districts and school districts.
The restrictions include a prohibition on contracts containing
specified automatic renewal clauses, allowing pay while on leave
during investigations and settlements for termination for
specific crimes greater than provided in statute.
FISCAL EFFECT
Minor fiscal impact. Legislative counsel has keyed this bill a
state mandated program. It does not appear reimbursement would
be required because the decision to use a contract for an
employee is a discretionary act of the local government. Since
there is a choice by the local government there is no mandate
and no required reimbursement. Not all of the local
governments, in particular many special districts, affected by
this bill would be eligible for reimbursement for mandates.
COMMENTS
1)Purpose . According to the author, this bill simply extends
the compensation restrictions and abuse of power provisions in
existing law to all local agency executives who work under an
employment contract. The author states this expansion
includes heads, such as city managers or county executives,
but will also include deputy county executives and city
SB 407
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managers and any other employee who has an employment contract
with a local agency. The author concludes SB 407 will prevent
extravagant rewards to local agency employees and reduce the
liability of local governments to provide paid leave and legal
defense costs for employees who are convicted of abuse of
power charges.
2)Support . This bill is sponsored by the California City
Management Foundation, which states this bill is a minor
expansion of existing law adopted last session to address
abuse of power practices brought to light by local agency
compensation scandals. The foundation states this bill will
extend compensation restrictions to all other local agency
executives who work under an employment contract.
3)Previous legislation. AB 1344 (Feuer and Alejo), Chapter 692,
Statutes of 2011, prohibited any contract executed or renewed
between a local agency and an employee excluded from
collective bargaining from containing specified provisions.
The provisions in question include no automatic renewal of the
contract if the contract provides for an automatic increase in
compensation that exceeds a cost-of-living adjustment and a
ceiling on a cash settlement that exceeds the amounts provided
for in statutory provisions governing employment contracts.
4)There is no registered opposition to this bill.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081