BILL NUMBER: AB 1418	CHAPTERED
	BILL TEXT

	CHAPTER  849
	FILED WITH SECRETARY OF STATE  OCTOBER 12, 2003
	APPROVED BY GOVERNOR  OCTOBER 11, 2003
	PASSED THE ASSEMBLY  SEPTEMBER 5, 2003
	PASSED THE SENATE  SEPTEMBER 2, 2003
	AMENDED IN SENATE  AUGUST 27, 2003
	AMENDED IN SENATE  AUGUST 18, 2003
	AMENDED IN SENATE  JULY 3, 2003
	AMENDED IN ASSEMBLY  APRIL 30, 2003
	AMENDED IN ASSEMBLY  APRIL 10, 2003

INTRODUCED BY   Assembly Member Laird

                        FEBRUARY 21, 2003

   An act to amend Section 27 of the Business and Professions Code,
and to amend Sections 1741 and 1775 of the Labor Code, relating to
labor.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1418, Laird.  Labor:  violations.
   Existing law requires various boards in the Department of Consumer
Affairs to provide information concerning the status of licensees on
the Internet.
   This bill would additionally require the Contractors' State
License Board to disclose information regarding a licensee's willful
or deliberate violation of the Labor Code.
   Existing law requires the Labor Commissioner to issue a civil wage
and penalty assessment to the contractor or subcontractor, or both,
if the Labor Commissioner determines after investigation that there
has been a violation of the laws regulating public works contracts.
   This bill would impose interest on all due and unpaid wages at the
specified rate until those wages are paid.
   Existing law generally requires that not less than the general
prevailing rate of per diem wages, as specified, be paid to workers
employed on a public work, as defined, that costs over $1,000.
Existing law requires a contractor or subcontractor to submit, to the
state or political subdivision on whose behalf a public work is
being performed, a penalty of not more than $50 per day, as provided
and determined by the Labor Commissioner, for violations of these
prevailing wage provisions.
   This bill would require that, in addition to the $50 maximum
penalty per day, the penalty not be less than $10 per day, unless the
failure to pay the prevailing rate of per diem wages was a good
faith mistake and was promptly and voluntarily corrected when brought
to the contractor's or subcontractors's attention.
   This bill would also require the penalty not be less than $20 per
day for contractors and subcontractors with prior violations, and not
be less than $30 per day for willful violations.  This bill would
provide that, when the amount due is collected from a contractor or
subcontractor, any wage claim against that contractor or
subcontractor must be satisfied first.
   This bill would require the Labor Commissioner to maintain a
public list of the names of the contractors and subcontractors who
have been found to have committed willful violations of certain
prevailing wage laws or to whom final orders, which are no longer
subject to judicial review, have been issued.  This bill would also
specify the procedures for placing the contractors' and
subcontractors' names on the list and the type of information that
must be included by the Labor Commissioner.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 27 of the Business and Professions Code is
amended to read:
   27.  (a) Every entity specified in subdivision (b), on or after
July 1, 2001, shall provide on the Internet information regarding the
status of every license issued by that entity in accordance with the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code) and the
Information Practices Act of 1977 (Chapter 1 (commencing with Section
1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code).  The
public information to be provided on the Internet shall include
information on suspensions and revocations of licenses issued by the
entity and other related enforcement action taken by the entity
relative to persons, businesses, or facilities subject to licensure
or regulation by the entity.  In providing information on the
Internet, each entity shall comply with the Department of Consumer
Affairs Guidelines for Access to Public Records.  The information may
not include personal information, including home telephone number,
date of birth, or social security number.  Each entity shall disclose
a licensee's address of record.  However, each entity shall allow a
licensee to provide a post office box number or other alternate
address, instead of his or her home address, as the address of
record.  This section shall not preclude an entity from also
requiring a licensee, who has provided a post office box number or
other alternative mailing address as his or her address of record, to
provide a physical business address or residence address only for
the entity's internal administrative use and not for disclosure as
the licensee's address of record or disclosure on the Internet.
   (b) Each of the following entities within the Department of
Consumer Affairs shall comply with the requirements of this section:

   (1) The Acupuncture Board shall disclose information on its
licensees.
   (2) The Board of Behavioral Sciences shall disclose information on
its licensees, including marriage and family therapists, licensed
clinical social workers, and licensed educational psychologists.
   (3) The Dental Board of California shall disclose information on
its licensees.
   (4) The State Board of Optometry shall disclose information
regarding certificates of registration to practice optometry,
statements of licensure, optometric corporation registrations, branch
office licenses, and fictitious name permits of their licensees.
   (5) The Board for Professional Engineers and Land Surveyors shall
disclose information on its registrants and licensees.
   (6) The Structural Pest Control Board shall disclose information
on its licensees, including applicators, field representatives, and
operators in the areas of fumigation, general pest and wood
destroying pests and organisms, and wood roof cleaning and treatment.

   (7) The Bureau of Automotive Repair shall disclose information on
its licensees, including auto repair dealers, smog stations, lamp and
brake stations, smog check technicians, and smog inspection
certification stations.
   (8) The Bureau of Electronic and Appliance Repair shall disclose
information on its licensees, including major appliance repair
dealers, combination dealers (electronic and appliance), electronic
repair dealers, service contract sellers, and service contract
administrators.
   (9) The Cemetery Program shall disclose information on its
licensees, including cemetery brokers, cemetery salespersons,
crematories, and cremated remains disposers.
   (10) The Funeral Directors and Embalmers Program shall disclose
information on its licensees, including embalmers, funeral
establishments, and funeral directors.
   (11) The Contractors' State License Board shall disclose
information on its licensees in accordance with Chapter 9 (commencing
with Section 7000) of Division 3.  In addition to information
related to licenses as specified in subdivision (a), the board shall
also disclose information provided to the board by the Labor
Commissioner pursuant to Section 98.9 of the Labor Code.
   (12) The Board of Psychology shall disclose information on its
licensees, including psychologists, psychological assistants, and
registered psychologists.
   (c) "Internet" for the purposes of this section has the meaning
set forth in paragraph (6) of subdivision (e) of Section 17538.
  SEC. 2.  Section 1741 of the Labor Code is amended to read:
   1741.  (a) If the Labor Commissioner or his or her designee
determines after an investigation that there has been a violation of
this chapter, the Labor Commissioner shall with reasonable promptness
issue a civil wage and penalty assessment to the contractor or
subcontractor or both.  The assessment shall be in writing and shall
describe the nature of the violation and the amount of wages,
penalties, and forfeitures due and shall include the basis for the
assessment.  The assessment shall be served not later than 180 days
after the filing of a valid notice of completion in the office of the
county recorder in each county in which the public work or some part
thereof was performed, or not later than 180 days after acceptance
of the public work, whichever occurs last.  However, if the
assessment is served after the expiration of this 180-day period, but
before the expiration of an additional 180 days, and the awarding
body has not yet made full payment to the contractor, the assessment
is valid up to the amount of the funds retained. Service of the
assessment shall be completed pursuant to Section 1013 of the Code of
Civil Procedure by first-class and certified mail to the contractor,
subcontractor, and awarding body.  The assessment shall advise the
contractor and subcontractor of the procedure for obtaining review of
the assessment.  The Labor Commissioner shall, to the extent
practicable, ascertain the identity of any bonding company issuing a
bond that secures the payment of wages covered by the assessment and
any surety on a bond, and shall serve a copy of the assessment by
certified mail to the bonding company or surety at the same time
service is made to the contractor, subcontractor, and awarding body.
However, no bonding company or surety shall be relieved of its
responsibilities because it failed to receive notice from the Labor
Commissioner.
   (b) Interest shall accrue on all due and unpaid wages at the rate
described in subdivision (b) of Section 3289 of the Civil Code.  The
interest shall accrue from the date that the wages were due and
payable, as provided in Part 7 (commencing with Section 1720) of
Division 2, until the wages are paid.
   (c) (1) The Labor Commissioner shall maintain a public list of the
names of each contractor and subcontractor who has been found to
have committed a willful violation of Section 1775 or to whom a final
order, which is no longer subject to judicial review, has been
issued.
   (2) The list shall include the date of each assessment, the amount
of wages and penalties assessed, and the amount collected.
   (3) The list shall be updated at least quarterly, and the
contractor's or subcontractor's name shall remain on that list until
the assessment is satisfied, or for a period of three years beginning
from the date of the issuance of the assessment, whichever is later.

  SEC. 3.  Section 1775 of the Labor Code is amended to read:
   1775.  (a) (1) The contractor and any subcontractor under the
contractor shall, as a penalty to the state or political subdivision
on whose behalf the contract is made or awarded, forfeit not more
than fifty dollars ($50) for each calendar day, or portion thereof,
for each worker paid less than the prevailing wage rates as
determined by the director for the work or craft in which the worker
is employed for any public work done under the contract by the
contractor or, except as provided in subdivision (b), by any
subcontractor under the contractor.
   (2) (A) The amount of the penalty shall be determined by the Labor
Commissioner based on consideration of both of the following:
   (i) Whether the failure of the contractor or subcontractor to pay
the correct rate of per diem wages was a good faith mistake and, if
so, the error was promptly and voluntarily corrected when brought to
the attention of the contractor or subcontractor.
   (ii) Whether the contractor or subcontractor has a prior record of
failing to meet its prevailing wage obligations.
   (B) (i) The penalty may not be less than ten dollars ($10) for
each calendar day, or portion thereof, for each worker paid less than
the prevailing wage rate, unless the failure of the contractor or
subcontractor to pay the correct rate of per diem wages was a good
faith mistake and, if so, the error was promptly and voluntarily
corrected when brought to the attention of the contractor or
subcontractor.
   (ii) The penalty may not be less than twenty dollars ($20) for
each calendar day, or portion thereof, for each worker paid less than
the prevailing wage rate, if the contractor or subcontractor has
been assessed penalties within the previous three years for failing
to meet its prevailing wage obligations on a separate contract,
unless those penalties were subsequently withdrawn or overturned.
   (iii) The penalty may not be less than thirty dollars ($30) for
each calendar day, or portion thereof, for each worker paid less than
the prevailing wage rate, if the Labor Commissioner determines that
the violation was willful, as defined in subdivision (c) of Section
1777.1.
   (C)  When the amount due under this section is collected from the
contractor or subcontractor, any outstanding wage claim under Chapter
1 (commencing with Section 1720) of Part 7 of Division 2 against
that contractor or subcontractor shall be satisfied before applying
that amount to the penalty imposed on that contractor or
subcontractor pursuant to this section.
   (D)  The determination of the Labor Commissioner as to the amount
of the penalty shall be reviewable only for abuse of discretion.
   (E) The difference between the prevailing wage rates and the
amount paid to each worker for each calendar day or portion thereof
for which each worker was paid less than the prevailing wage rate
shall be paid to each worker by the contractor or subcontractor, and
the body awarding the contract shall cause to be inserted in the
contract a stipulation that this section will be complied with.
   (b) If a worker employed by a subcontractor on a public works
project is not paid the general prevailing rate of per diem wages by
the subcontractor, the prime contractor of the project is not liable
for any penalties under subdivision (a) unless the prime contractor
had knowledge of that failure of the subcontractor to pay the
specified prevailing rate of wages to those workers or unless the
prime contractor fails to comply with all of the following
requirements:
   (1) The contract executed between the contractor and the
subcontractor for the performance of work on the public works project
shall include a copy of the provisions of Sections 1771, 1775, 1776,
1777.5, 1813, and 1815.
   (2) The contractor shall monitor the payment of the specified
general prevailing rate of per diem wages by the subcontractor to the
employees, by periodic review of the certified payroll records of
the subcontractor.
   (3) Upon becoming aware of the failure of the subcontractor to pay
his or her workers the specified prevailing rate of wages, the
contractor shall diligently take corrective action to halt or rectify
the failure, including, but not limited to, retaining sufficient
funds due the subcontractor for work performed on the public works
project.
   (4) Prior to making final payment to the subcontractor for work
performed on the public works project, the contractor shall obtain an
affidavit signed under penalty of perjury from the subcontractor
that the subcontractor has paid the specified general prevailing rate
of per diem wages to his or her employees on the public works
project and any amounts due pursuant to Section 1813.
   (c) The Division of Labor Standards Enforcement shall notify the
contractor on a public works project within 15 days of the receipt by
the Division of Labor Standards Enforcement of a complaint of the
failure of a subcontractor on that public works project to pay
workers the general prevailing rate of per diem wages.