BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1384
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1384 (Labor and Employment Committee)
          As Introduced  March 4, 2013
          Majority vote 

           LABOR & EMPLOYMENT           7-0APPROPRIATIONS         16-1     
           
           ----------------------------------------------------------------- 
          |Ayes:|Roger Hernández, Morrell, |Ayes:|Gatto, Harkey, Bigelow,   |
          |     |Alejo, Chau, Gomez,       |     |Bocanegra, Bradford, Ian  |
          |     |Gorell, Holden            |     |Calderon, Campos, Eggman, |
          |     |                          |     |Gomez, Hall, Ammiano,     |
          |     |                          |     |Linder, Pan, Quirk,       |
          |     |                          |     |Wagner, Weber             |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Donnelly                  |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :  Establishes civil penalties for a garment manufacturer  
          who fails to display specified information at the front entrance  
          of the business, as required under existing law.  Specifically,  
           this bill  :  

          1)Provides that any person who fails to comply with the  
            requirement will be subject to civil penalty of $100 per  
            calendar day for an initial citation.

          2)Provides for a penalty of $200 per day for any subsequent  
            citation.

          3)Provides that the procedures for issuing, contesting and  
            enforcing citations and judgments for the civil penalties will  
            be the same as under existing law.

           EXISTING LAW  :

          1)Requires every person engaged in the business of garment  
            manufacturing to register with the Labor Commissioner and meet  
            other specified requirements.

          2)Requires every person registered as a garment manufacturer to  
            display his or her name, address, and garment manufacturing  








                                                                  AB 1384
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            number on the front of his or her business, as specified.

          3)Authorizes the Labor Commissioner to waive this requirement if  
            he or she finds compliance to be infeasible due to the design  
            or layout of the business premises.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, this bill will result in annual costs of  
          approximately $100,000 to the Department of Industrial Relations  
          (DIR) to accommodate additional workload.  

           COMMENTS  :  This bill would establish a civil penalty for a  
          garment manufacturer who fails to display their name, address  
          and garment manufacturing registration number outside the  
          business entrance, as required by current law.

          Existing law requires every person engaged in the business of  
          garment manufacturing to register with the Labor Commissioner.

          In addition, existing law requires that every person registered  
          as a garment manufacturer shall display on the front entrance of  
          his or her business premise, and also, if the front entrance is  
          within the interior of a building, on or near the main exterior  
          entrance of the building in which his or her business premise is  
          located, his or her name, address, and garment manufacturing  
          registration number, all in letters not less than three inches  
          high.  Certain exemptions to this provision exist, including a  
          waiver of this requirement if the Labor Commissioner finds that  
          compliance would not be feasible due to the design or layout of  
          a business premise.  

          Despite the significance of this posting requirement for  
          enforcement efforts (the posted information helps both garment  
          workers and the Labor Commissioner to identify the name and  
          address of garment companies that violate labor laws), there is  
          no civil penalty specified for a violation of this section.

          Therefore, this bill would establish a civil penalty of $100 per  
          day for failure to post the mandated information.  For  
          subsequent violations, the civil penalty would be $200 per day.

          Supporters argue that, in an industry dominated by labor  
          contractors who often try to conceal their true business  
          identities, it is appropriate that there be significant  








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          sanctions against those who engage in these practices.
           

          Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091 


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