BILL NUMBER: AB 1333AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 30, 2013 INTRODUCED BY Assembly Member Roger Hernndez FEBRUARY 22, 2013 An act to add Section 53069.86 to the Government Code, relating to local government. LEGISLATIVE COUNSEL'S DIGEST AB 1333, as amended, Roger Hernndez. Local government: contracts. Existing law authorizes the legislative body of a city, county, or district to enter into contracts for various services, and, among other things, to include within the contract a time within which the whole or any specified portion of the work contemplated is to be completed. This bill would require the legislative body of a city, county, or district to review any contract with a private party , with a total annual value of $250,000 or more, that containsand containing an automatic renewal clause , at least once every three years on or before the annual date by which the contract may be rescinded. This bill would require the review of the contract to include a consideration as to whether the private party pays at least the general prevailing rate of per diem wages for work of a similar character in the locality to its employees. This bill would require the contract to be rescinded unless the review of the contract contains findings that the private party pays at least the general prevailing rate of per diem wages for work of a similar character in the locality, or a living wage given the locality, whichever is greater, to its employees, and thecontract to be rescinded if the private party has been cited by the National Labor Relations Board for an unfair labor practice or if the National Labor Relations Board has ruled that an unfair labor practice has been committedcontractor retains the employees of the prior contractor or subcontractor for at least 90 days . 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 53069.86 is added to the Government Code, to read: 53069.86. (a) The legislative body of a city, county, or district shall review any contract with a private party, with a total annual value of two hundred fifty thousand dollars ($250,000) or more, that contains an automatic renewal clause, sometimes referred to as an "evergreen" provision, at least once every three years on or before the annual date by which the contract may be rescinded. Prior to the renewal of a contract, the legislative body shall make findings on the record, including, but not limited to, whether the contract contains updated information and whether the contract fits the needs of the legislative body. (b) Any contract with an evergreen provision as described in subdivision (a) shall be rescinded unless the review of the contract containsfindings that the private party paysboth of the following findings: (1) The contractor pays at least the general prevailing rate of per diem wages for work of a similar character in the locality, or a living wage given the locality, whichever is greater, to its employees. (2) The contractor retains the employees of the prior contractor or subcontractor for at least 90 days.(c) Any contract with an evergreen provision as described in subdivision (a) shall be rescinded if the private party has been cited by the National Labor Relations Board for an unfair labor practice or if the National Labor Relations Board has ruled that an unfair labor practice has been committed.(c) For purposes of this section, the prevailing rate of per diem wages shall be determined pursuant to subdivision (b) of Section 1773.9 of the Labor Code. (d) For purposes of this section, "per diem wages" shall include the employer payments described in Section 1773.1 of the Labor Code.