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HomeGovernment CodeDiv. 5Pt. 3Ch. 5Art. 5§ 20570 Contract Termination Notice Requirements

§ 20570 Contract Termination Notice Requirements

Government Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 20570 Contract Termination Notice Requirements

Key Takeaways

  • •If a contract has been active for at least 5 years, the government can decide to end it, but they have to follow specific steps.
  • •They must first announce their plan to end the contract and tell all current, past, and retired employees about it.
  • •The government has to wait at least 90 days but no more than a year before officially ending the contract.
  • •If the contract is shared between a court and a county, both must agree and follow the same steps to end it.

Example

Imagine your city has a contract with a company that has been running the local bus service for the past 6 years. The city wants to end this contract to start its own bus service.

The city council must first vote to announce they want to end the contract. Then, they have to tell all the bus drivers, retired drivers, and anyone who used to work for the bus service about this plan. They get the contact information from the bus company and send out letters. After waiting at least 90 days, the city council votes again with at least two-thirds agreeing to end the contract. The contract ends on the date they choose, but not before the final vote.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 20570 Contract Termination Notice Requirements

(a) (1) If the contract has been in effect for at least five years and was approved by an ordinance or resolution adopted by the governing body of the contracting agency, the governing body may terminate it by completing all of the following: (A) Adopting a resolution giving notice of intention to terminate. (B) Notifying, in writing, the contracting agency’s past and present employees, who are members, former members, or retired members of the system, within 30 days of the adoption of the resolution giving notice of intention to terminate. (i) Within seven days of receipt of the resolution noticing the contracting agency’s intention to terminate, the board shall provide the contracting agency with contact information data in its possession for the purpose of providing past employee members, former members, and retired members the notice required by this subparagraph. The contact information data shall be provided to the contracting agency in an open format that is platform independent, machine readable, retrievable, downloadable, indexable, and electronically searchable by commonly used Internet search applications. (ii) Within 14 days of receipt of the contact information data described in clause (i), the contracting agency shall provide written notice to past employee members, former members, and retired members of the adoption of the resolution giving notice of intention to terminate. (iii) The contracting agency shall not be liable for failure to provide the notice required pursuant to this subparagraph to a member if the contact information data received for that member is incomplete or incorrect. (C) Adopting an ordinance or resolution terminating the contract, not less than 90 days and not more than one year after the system’s receipt of the resolution giving notice of intention to terminate, by the affirmative vote of at least two-thirds of the members of the governing body. (2) Termination shall be effective with board approval on the date designated in the ordinance or resolution terminating the contract, provided that the effective date of termination shall not be earlier than the date the governing body adopts the ordinance or resolution terminating the contract. (b) (1) If the contract is a joint contract and the joint contract has been in effect for at least five years, the contract may be terminated by completing all of the following: (A) Adopting trial court and county resolutions giving notice of intention to terminate. (B) Notifying, in writing, the trial court’s and county’s past and present employees, who are members, former members, or retired members of the system, within seven days of the adoption of the resolutions giving notice of intention to terminate. (i) Within seven days of receipt of the trial court and county resolutions noticing their intention to terminate, the board shall provide each contracting agency with contact information data in its possession for the purpose of providing its past employee members, former members, and retired members the notice required by this subparagraph. The contact information data shall be provided to the contracting agency in an open format that is platform independent, machine readable, retrievable, downloadable, indexable, and electronically searchable by commonly used Internet search applications. (ii) Within 14 days of receipt of the contact information data described in clause (i), each contracting agency shall provide written notice to its past employee members, former members, and retired members of the adoption of the resolution giving notice of intention to terminate. (iii) A contracting agency shall not be liable for failure to provide the notice required pursuant to this subparagraph to a member if the contact information data received for that member is incomplete or incorrect. (C) Adopting ordinances or resolutions terminating the joint contract, not less than 90 days and not more than one year after the system’s receipt of the resolution giving notice of intention to terminate, by the affirmative vote of at least two-thirds of the members of the governing body of the county, and by the presiding officer of the trial court. (2) Termination shall be effective with board approval on the date designated in the ordinance terminating the contract, provided that the effective date of termination shall not be earlier than the date the governing body of the county and the presiding officer of the trial court adopts or approves the ordinance or resolution terminating the contract, whichever is later. (Amended by Stats. 2018, Ch. 732, Sec. 2. (SB 1022) Effective January 1, 2019.)

Last verified: January 22, 2026

Key Terms

contract terminationgoverning bodyresolutionordinancenotice of intention to terminate

Related Statutes

  • § 20476 Ordinance Resolution Substitution
  • § 66540.60 Retirement System Administration Authority
  • § 20471 Contract Approval Requirements
  • § 20477 Individual Agency Action Authority
  • § 20571 Contract Termination By Vote

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 20570.
View Official Source