California Legislature—2015–16 Regular Session

Assembly Bill No. 215

Introduced by Assembly Member Alejo

February 2, 2015

An act to amend Section 53260 of the Government Code, relating to employment.

LEGISLATIVE COUNSEL’S DIGEST

AB 215, as introduced, Alejo. Local agency employment contracts: maximum cash settlement.

Existing law requires all employment contracts between an employee and a local agency employer to contain a provision that provides for the amount of a cash settlement that may be paid out if the contract is terminated, as specified. Existing law provides that the maximum settlement that an employee can receive is an amount equal to the monthly salary of the employee multiplied by the number of months left on the unexpired term of the contract, or, if the unexpired terms of the contract is greater than 18 months, an amount equal to the monthly salary of the employee multiplied by 18.

This bill would provide that in the case of a district superintendent of schools, regardless of the number of months left on the unexpired term of the contract, the maximum cash settlement shall be an amount equal to the monthly salary of the employee multiplied by ___.

Existing law limits the amount of a cash or noncash settlement that a local agency employer may provide its district superintendent of schools to an amount no greater than the superintendent’s monthly salary multiplied by zero to 6, if it terminates the superintendent’s contract of employment and confirms pursuant to an independent audit that the superintendent engaged in fraud, misappropriation of funds, or other illegal fiscal practices. In this case, existing law requires an administrative law judge, after a hearing, to determine the amount of the cash settlement.

This bill would, with regard to a contract for employment negotiated on or after January 1, 2016, change the maximum cash or noncash settlement amount that may be paid by a local agency employer to its district superintendent of schools under these provisions to an amount no greater than the superintendent’s monthly salary multiplied by zero to ___.

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 53260 of the Government Code is
amended to read:

53260.  

(a) All contracts of employment between an employee
and a local agency employer shall include a provision begin delete which end delete begin insert that end insert
provides that regardless of the term of the contract, if the contract
is terminated, the maximum cash settlement that an employee may
receive shall be an amount equal to the monthly salary of the
employee multiplied by the number of months left on the unexpired
term of the begin delete contract. However, if end delete begin insert contact, with the following
exceptions: end insert

begin insert (1) end insert begin insert   end insert begin insert If end insert the unexpired term of the contract is greater than 18
months, the maximum cash settlement shall be an amount equal
to the monthly salary of the employee multiplied by begin delete 18. end delete begin insert ___. end insert

begin insert

(2) In the case of a district superintendent of schools, regardless
of the number of months left on the unexpired term of the contract,
the maximum cash settlement shall be an amount equal to the
monthly salary of the employee multiplied by ___.

end insert

(b) (1) Notwithstanding subdivision (a), if a local agency
employer, including an administrator appointed by the
Superintendent, terminates its contract of employment with its
district superintendent of schools begin insert , end insert that local agency employer may
not provide a cash or noncash settlement to its superintendent in
an amount greater than the superintendent’s monthly salary
multiplied by zero to begin delete six end delete begin insert ___ end insert if the local agency employer believes,
and subsequently confirms, pursuant to an independent audit, that
the superintendent has engaged in fraud, misappropriation of funds,
or other illegal fiscal practices. The amount of the cash settlement
described in this paragraph shall be determined by an
administrative law judge after a hearing.

(2) This subdivision applies only to a contract for employment
negotiated on or after begin delete the effective date of the act that added this
subdivision. end delete begin insert January 1, 2016. end insert

(c) The cash settlement formula described in subdivisions (a)
and (b) are maximum ceiling on the amounts that may be paid by
a local agency employer to an employee and is not a target or
example of the amount of the cash settlement to be paid by a local
agency employer to an employee in all contract termination cases.