BILL NUMBER: AB 280	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 11, 2013

INTRODUCED BY   Assembly Member Alejo

                        FEBRUARY 11, 2013

   An act to amend Section 53260 of  , and to add Section 53260.3
to,  the Government Code, relating to employment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 280, 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 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  the voluntary
termination of the employment contract of  a district
superintendent  ,   deputy superintendent, assistant
superintendent, or associate 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 3  . The bill would
provide that in the case of the involuntary termination of the
employment contract of a district superintendent, deputy
superintendent, assistant superintendent, or associate 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 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 it is confirmed 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 change the maximum cash or noncash settlement
amount that may be paid by a local agency employer to its district
superintendent  , deputy superintendent, assistant
superintendent, or associate superintendent  of schools under
these provisions to an amount no greater than the superintendent's
monthly salary multiplied by zero to  3   one
 . 
   The bill would also require that an unspecified calculation be
used to determine the maximum sum that may be paid to a district
superintendent, deputy superintendent, assistant superintendent, or
associate superintendent who is placed on paid leave of absence. This
bill additionally would require that the employee exhaust all
accrued sick leave and vacation time before the paid leave of absence
takes effect. 
   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
contract, 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  the voluntary termination of the
employment contract of  a district superintendent  , deputy
superintendent, assistant superintendent, or associate 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
three. 
   (3) In the case of the involuntary termination of the employment
contract of a district superintendent, deputy superintendent,
assistant superintendent, or associate 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 six. 
   (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  , deputy superintendent, assistant
superintendent, or associate superintendent  of schools, that
local agency employer may not provide a cash or noncash settlement to
 its superintendent   that employee  in an
amount greater than the superintendent's  , deputy
superintendent's, assistant superintendent's, or associate
superintendent's  monthly salary multiplied by zero to 
three   one  if the local agency employer believes,
and subsequently confirms, pursuant to an independent audit, that
the  superintendent   employee  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   shall apply
 only to a contract for employment negotiated on or after
January 1, 2014.
   (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.
   SEC. 2.    Section 53260.3 is added to the  
Government Code   , to read:  
   53260.3.  (a) (1) If a local agency employer, including an
administrator appointed by the Superintendent, places a district
superintendent, deputy superintendent, assistant superintendent, or
associate superintendent of schools on paid leave of absence,
regardless of the length of that leave of absence, the local agency
employer may not pay the employee an amount greater than the
superintendent's, deputy superintendent's, assistant superintendent'
s, or associate superintendent's monthly salary multiplied by _____
for the duration of his or her leave of absence.
   (2) The pay formula described in paragraph (1) is a maximum
ceiling on the amount that may be paid by a local agency employer to
a district superintendent, deputy superintendent, assistant
superintendent, or associate superintendent of schools and is not a
target or example of the amount to be paid by a local agency employer
to an employee who is placed on a paid leave of absence in all
cases.
   (b) Before a paid leave of absence for an employee subject to
subdivision (a) takes effect, the local agency employer shall require
the employee to exhaust all of his or her accrued sick leave and
vacation time.
   (c) This section shall apply only to a contract for employment
negotiated on or after January 1, 2014.