BILL NUMBER: AB 2675	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Labor and Employment (Assembly Members
Swanson (Chair), Alejo, Allen, Furutani, and Yamada)

                        MARCH 5, 2012

   An act to amend Sections 1727 and 1742 of the Labor Code, relating
to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2675, as introduced, Committee on Labor and Employment. Public
works: prevailing wage rates: penalty assessment.
   Existing law regulating public works contracts requires the
awarding body of a public works contract to withhold and retain all
amounts required to satisfy any civil wage and penalty assessment
issued by the Labor Commissioner before making payments to the
contractor of money due under the contract.
   This bill would specify that those amounts are forfeited amounts.
   Existing law permits an affected contractor or subcontractor to
obtain review of a civil wage and penalty assessment by transmitting
a written request for a hearing to the office of the Labor
Commissioner that appears on the assessment within 60 days after
service of the assessment. Existing law permits an affected
contractor or subcontractor to obtain review of the decision of the
director, and then an administrative law judge by filing a petition
for a writ of mandate to the superior court within 45 days after
service of the decision.
   This bill would provide, notwithstanding the provisions detailing
the manner of service required for a civil wage and penalty
assessment, that specified extensions of time do not apply to a
request for review of an assessment or a petition for a writ of
mandate.
   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 1727 of the Labor Code is amended to read:
   1727.  (a) Before making payments to the contractor of money due
under a contract for public work, the awarding body shall withhold
and retain therefrom all  forfeited  amounts required to
satisfy any civil wage and penalty assessment issued by the Labor
Commissioner under this chapter. The  forfeited  amounts
required to satisfy a civil wage and penalty assessment shall not be
disbursed by the awarding body until receipt of a final order that is
no longer subject to judicial review.
   (b) If the awarding body has not retained sufficient money under
the contract to satisfy a civil wage and penalty assessment based on
a subcontractor's violations, the contractor shall, upon the request
of the Labor Commissioner, withhold sufficient money due the
subcontractor under the contract to satisfy the assessment and
transfer the money to the awarding body. These amounts shall not be
disbursed by the awarding body until receipt of a final order that is
no longer subject to judicial review.
  SEC. 2.  Section 1742 of the Labor Code is amended to read:
   1742.  (a) An affected contractor or subcontractor may obtain
review of a civil wage and penalty assessment under this chapter by
transmitting a written request to the office of the Labor
Commissioner that appears on the assessment within 60 days after
service of the assessment.  Notwithstanding the manner of service
performed pursuant to subdivision (a) of Section 1741, the extension
of time provided in Section 1013 of the Code of Civil Procedure
shall not apply to a request for review of the assessment.  If
no hearing is requested within 60 days after service of the
assessment, the assessment shall become final.
   (b) Upon receipt of a timely request, a hearing shall be commenced
within 90 days before the director, who shall appoint an impartial
hearing officer possessing the qualifications of an administrative
law judge pursuant to subdivision (b) of Section 11502 of the
Government Code. The appointed hearing officer shall be an employee
of the department, but shall not be an employee of the Division of
Labor Standards Enforcement. The contractor or subcontractor shall be
provided an opportunity to review evidence to be utilized by the
Labor Commissioner at the hearing within 20 days of the receipt of
the written request for a hearing. Any evidence obtained by the Labor
Commissioner subsequent to the 20-day cutoff shall be promptly
disclosed to the contractor or subcontractor.
   The contractor or subcontractor shall have the burden of proving
that the basis for the civil wage and penalty assessment is
incorrect. The assessment shall be sufficiently detailed to provide
fair notice to the contractor or subcontractor of the issues at the
hearing.
   Within 45 days of the conclusion of the hearing, the director
shall issue a written decision affirming, modifying, or dismissing
the assessment. The decision of the director shall consist of a
notice of findings, findings, and an order. This decision shall be
served on all parties and the awarding body pursuant to Section 1013
of the Code of Civil Procedure by first-class mail at the last known
address of the party on file with the Labor Commissioner. Within 15
days of the issuance of the decision, the director may reconsider or
modify the decision to correct an error, except that a clerical error
may be corrected at any time.
   The director shall adopt regulations setting forth procedures for
hearings under this subdivision.
   (c) An affected contractor or subcontractor may obtain review of
the decision of the director by filing a petition for a writ of
mandate to the appropriate superior court pursuant to Section 1094.5
of the Code of Civil Procedure within 45 days after service of the
decision.  Notwithstanding the manner of service performed
pursuant to s   ubdivision (b), the extension of time
provided in Section 1013 of the Code of Civil Procedure shall not
apply for filing a petition for writ of mandate.  If no petition
for writ of mandate is filed within 45 days after service of the
decision, the order shall become final. If it is claimed in a
petition for writ of mandate that the findings are not supported by
the evidence, abuse of discretion is established if the court
determines that the findings are not supported by substantial
evidence in the light of the whole record.
   (d) A certified copy of a final order may be filed by the Labor
Commissioner in the office of the clerk of the superior court in any
county in which the affected contractor or subcontractor has property
or has or had a place of business. The clerk, immediately upon the
filing, shall enter judgment for the state against the person
assessed in the amount shown on the certified order.
   (e) A judgment entered pursuant to this section shall bear the
same rate of interest and shall have the same effect as other
judgments and shall be given the same preference allowed by law on
other judgments rendered for claims for taxes. The clerk shall not
charge for the service performed by him or her pursuant to this
section.
   (f) An awarding body that has withheld funds in response to a
civil wage and penalty assessment under this chapter shall, upon
receipt of a certified copy of a final order that is no longer
subject to judicial review, promptly transmit the withheld funds, up
to the amount of the certified order, to the Labor Commissioner.
   (g) This section shall provide the exclusive method for review of
a civil wage and penalty assessment by the Labor Commissioner under
this chapter or the decision of an awarding body to withhold contract
payments pursuant to Section 1771.5.