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) 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) 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.
(Added by Stats. 2011, Ch. 692, Sec. 3. (AB 1344) Effective January 1, 2012.)