Section § 3511.1

Explanation

This section defines key terms used in the chapter. 'Compensation' refers to the salary, stipend, or bonus paid to executives by local agency employers.

'Cost-of-living' is defined using the California Consumer Price Index for specific workers. A 'local agency' includes counties, cities, school districts, and other public agencies, and a 'local agency executive' is someone in a senior position like a CEO or department head, or someone with an employment contract, who is not regulated by specific labor laws like the Meyers-Milias-Brown Act.

As used in this chapter, the following definitions apply:
(a)CA Government Code § 3511.1(a) “Compensation” means annual salary, stipend, or bonus, paid by a local agency employer to a local agency executive.
(b)CA Government Code § 3511.1(b) “Cost-of-living” means the California Consumer Price Index for Urban Wage Earners and Clerical Workers as calculated by the Department of Industrial Relations.
(c)CA Government Code § 3511.1(c) “Local agency” means a county, city, whether general law or chartered, city and county, town, school district, municipal corporation, district, political subdivision, or any board, commission, or agency thereof, or other local public agency.
(d)CA Government Code § 3511.1(d) “Local agency executive” means any person employed by a local agency who is not subject to the Meyers-Milias-Brown Act (Chapter 10 (commencing with Section 3500)), Chapter 5 (commencing with Section 45100) of Part 25 of Division 3 of Title 2 of the Education Code, or Chapter 4 (commencing with Section 88000) of Part 51 of Division 7 of Title 3 of the Education Code, and who meets any of the following requirements:
(1)CA Government Code § 3511.1(d)(1) The person is the chief executive officer, a deputy chief executive officer, or an assistant chief executive officer of the local agency.
(2)CA Government Code § 3511.1(d)(2) The person is the head of a department of a local agency.
(3)CA Government Code § 3511.1(d)(3) The person’s position within the local agency is held by an employment contract between the local agency and that person.

Section § 3511.2

Explanation

This law states that from January 1, 2012, any contract created or renewed between a local government agency and an executive cannot include either of two things. First, the contract cannot automatically renew with a pay increase larger than a standard cost-of-living increase. Second, the contract cannot include a cash settlement larger than what's allowed under specific rules outlined in another section of law (Section 53260).

On or after January 1, 2012, any contract executed or renewed between a local agency and a local agency executive shall not provide for the following:
(a)CA Government Code § 3511.2(a) An automatic renewal of a contract that provides for an automatic increase in the level of compensation that exceeds a cost-of-living adjustment.
(b)CA Government Code § 3511.2(b) A maximum cash settlement that exceeds the amounts determined pursuant to Article 3.5 (commencing with Section 53260) of Chapter 2 of Part 1 of Division 2 of Title 5.