BILL NUMBER: AB 1294	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Grove

                        FEBRUARY 22, 2013

   An act to amend Section 1742 of the Labor Code, relating to public
works.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1294, as introduced, Grove. Public works: civil wage and
penalty assessments.
   Existing law defines the term "public works" for purposes of
requirements regarding the payment of prevailing wages, the
regulation of working hours, and the securing of workers'
compensation for public works projects.
   Existing law requires the Labor Commissioner to issue a civil wage
and penalty assessment to a contractor or subcontractor, or both,
if, after an investigation, the commissioner determines there has
been a willful violation of the laws regulating public works. An
affected contractor or subcontractor may obtain a review of the civil
wage and penalty assessment by requesting a hearing from the office
of the Labor Commissioner, after which the director shall issue a
written decision. Under existing law, the contractor or subcontractor
has the burden of proving that the basis for the civil wage and
penalty assessment is correct.
   This bill would instead require the Labor Commissioner to prove
that the basis for the civil wage and penalty assessment is correct.

   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  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. If  no   a 
hearing is  not  requested within 60 days after service of
the assessment, the assessment shall become final.
   (b)  (1)    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 
    (2)     The Labor Commissioner  shall
have the burden of proving that the basis for the civil wage and
penalty assessment is  incorrect   correct 
. The assessment shall be sufficiently detailed to provide fair
notice to the contractor or subcontractor of the issues at the
hearing. 
   Within 
    (3)     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 
    (4)     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. If  no   a  petition for writ of
mandate is  not  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   where  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.