Amended in Assembly April 6, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 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 amended, 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,begin delete regardless of the number of months left on the unexpired term of the contract,end deletebegin insert for contracts of employment negotiated on or after January 1, 2016,end insert the maximum cash settlement shall be an amount equal to the monthly salary of the employee multiplied bybegin delete ___end deletebegin insert 6end insert.

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 tobegin delete ___end deletebegin insert 3end insert.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 53260 of the Government Code is
2amended to read:

3

53260.  

(a) All contracts of employment between an employee
4and a local agency employer shall include a provision that provides
5that regardless of the term of the contract, if the contract is
6terminated, the maximum cash settlement that an employee may
7receive shall be an amount equal to the monthly salary of the
8employee multiplied by the number of months left on the unexpired
9term of the contact, with the following exceptions:

10(1) If the unexpired term of the contract is greater than 18
11months, the maximum cash settlement shall be an amount equal
12to the monthly salary of the employee multiplied bybegin delete___.end deletebegin insert 18.end insert

13(2) In the case of a district superintendent ofbegin delete schools, regardless
14of the number of months left on the unexpired term of the contract,end delete

15begin insert schools, for contracts of employment negotiated on or after January
161, 2016,end insert
the maximum cash settlement shall be an amount equal
17to the monthly salary of the employee multiplied bybegin delete ___end deletebegin insert 6end insert.

18(b) (1) Notwithstanding subdivision (a), if a local agency
19employer, including an administrator appointed by the
20Superintendent, terminates its contract of employment with its
21district superintendent of schools, that local agency employer may
22not provide a cash or noncash settlement to its superintendent in
23an amount greater than the superintendent’s monthly salary
24multiplied by zero tobegin delete ___end deletebegin insert 3end insert if the local agency employer believes,
P3    1and subsequently confirms, pursuant to an independent audit, that
2the superintendent has engaged in fraud, misappropriation of funds,
3or other illegal fiscal practices. The amount of the cash settlement
4described in this paragraph shall be determined by an
5administrative law judge after a hearing.

6(2) This subdivision applies only to a contract for employment
7negotiated on or after January 1, 2016.

8(c) The cash settlement formula described in subdivisions (a)
9and (b) are maximum ceiling on the amounts that may be paid by
10a local agency employer to an employee and is not a target or
11example of the amount of the cash settlement to be paid by a local
12agency employer to an employee in all contract termination cases.



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