BILL NUMBER: AB 215	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 4, 2015
	AMENDED IN ASSEMBLY  APRIL 6, 2015

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, for contracts of employment negotiated on
or after January 1, 2016, the maximum cash settlement shall be an
amount equal to the monthly salary of the employee multiplied by 
12, or, if the employee was terminated for cause, an amount equal to
the monthly salary of the employee multiplied by  6.
   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,   bill,  with regard
to a contract for employment negotiated on or after January 1, 2016,
 would  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 3.
   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 that 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
contact, with the following exceptions:
   (1) If 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 18.
   (2) In the case of a district superintendent of schools, for
contracts of employment negotiated on or after January 1, 2016, the
maximum cash settlement shall be an amount equal to the monthly
salary of the employee multiplied by  12, or, if the employee was
terminated for cause, an amount equal to the monthly salary of the
employee multiplied by  6.
   (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, that local agency employer  may
  shall  not provide a cash or noncash settlement
to its superintendent in an amount greater than the superintendent's
monthly salary multiplied by zero to 3 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 January 1, 2016.
   (c) The cash settlement  formula   formulas
 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.