BILL NUMBER: SB 1342	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 12, 2016

INTRODUCED BY   Senator Mendoza

                        FEBRUARY 19, 2016

   An act to add Section  1176.5 to the Labor Code, 
  53060.4 to the Government Code,   relating to wages.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1342, as amended, Mendoza. Wages: investigations: subpoenas.
   Existing law authorizes the Industrial Welfare Commission to
subpoena witnesses. Existing law provides that if a person fails to
comply with an order or subpoena of the commission or a witness
refuses to testify to any matter regarding which he or she may
lawfully be interrogated before any wage board or the commission, it
shall be the duty of the superior court to compel obedience in a
manner by which such obedience could be compelled in a proceeding
pending before the court.
   This bill would  authorize a board of supervisors of a
county or   specify that  a legislative body of a
city  or county is authorized  to delegate that 
board or  body's authority to issue  subpoenas, by
resolution or ordinance,   subpoena   s and to
report noncompliance thereof to the judge of the superior court of
the county,  to a county or city  officer  
official  or department head  for the purpose of
conducting investigations   in order  to enforce
local wage laws.  The bill would require these subpoenas to
only be issued for purposes of obtaining records and testimony
reasonably necessary to determine if a local wage ordinance was
violated, to be reviewed by the county counsel or city attorney, and
signed by the designated officer or department head before it is
issued. The bill would provide that if any person so duly subpoenaed
to appear and give evidence or to produce any books or papers before
the designated officer or department head, neglects or refused to
appear, or to produce any books or papers, as required by the
subpoena, or refuses to testify or answer any questions that the
designated officer or department head decides are proper and
pertinent, he or she shall be in contempt, and the designated officer
or department head shall report that fact to the judge of the
superior court of the county.   The bill would provide
legislative findings in support of this provision. 
   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.  (a) The Legislature finds and declares all of the
following:
   (1) Wage theft is prevalent among immigrant and low-wage workers
in California.
   (2) Los Angeles County, where approximately $26.6 million in wages
 are  is  stolen from laborers every week,
has been dubbed by some as the "wage theft capital" of the United
States.
   (3) The Economic Roundtable and the University of California, Los
Angeles, indicate that violations of wage laws in Los Angeles are
pervasive, with 30 percent of low-wage workers in Los Angeles
receiving less than the minimum wage and 88.5 percent of workers
experiencing some sort of wage theft.
   (4) Wage theft can cause workers extreme financial hardship,
making it harder for workers experiencing wage theft to take care of
their families and contribute to the state economy.
   (5) According to the Milton Marks "Little Hoover" Commission on
California State Government Organization and Economy, wage
enforcement resources in California have not kept pace with increases
in the number of employers and increased complexity of the
employer-employee relationship. Local jurisdictions, including the
City and County of San Francisco, the City of Los Angeles, and the
County of Los Angeles, have addressed the need for additional wage
enforcement resources by establishing local wage enforcement
agencies.
   (6) In California, 14 local jurisdictions have enacted minimum
wage ordinances. The majority of these jurisdictions have designated
or created  a local agency   local agencies
 to enforce local wage laws.
   (7) Local wage enforcement is an effective means of combating wage
theft. For example, San Francisco's Office of Labor Standards
Enforcement recovered 90.5 percent of wages and interest owed to
workers between 2003 and 2013. 
   (8) Pursuant to Sections 25207, 27721, and 37104, and Dibb v.
County of San Diego, (8 Cal. 4th 1200), cities and counties are
authorized to delegate to local officials the authority to issue
subpoenas in support of enforcing local wage ordinances. 
   (b) It is the intent of the Legislature in enacting this measure
to promote honest pay for fair work by giving local wage enforcement
programs all of the tools necessary to conduct successful wage claim
investigations in order to recover unpaid back wages for 
hard working   hardworking  Californians. 
   (c) Cities and counties are encouraged to develop and enact
specific measures to target and remedy wage theft.  
  SEC. 2.    Section 1176.5 is added to the Labor
Code, to read:
   1176.5.  (a) (1) The board of supervisors of a county may delegate
the board's authority to issue subpoenas, by resolution or
ordinance, to a county officer or department head for the purpose of
conducting investigations to enforce local wage laws.
   (2) The subpoena shall only be for purposes of obtaining records
and testimony reasonably necessary to determine if a local wage
ordinance was violated. The subpoena shall be reviewed by the county
counsel and signed by the designated county officer or department
head before it is issued. The subpoena shall be served in the same
manner as subpoenas are served in civil actions.
   (3) If a county and a city contract for purposes of the county
conducting investigations to enforce local wage laws within the
boundaries of a city, that contract may provide a county officer or
department head with the authority to issue subpoenas within the
contracting city's boundaries with the same force and effect as if
issued in unincorporated areas of that county. A subpoena issued
pursuant to this subdivision shall be reviewed by the county counsel
before being issued.
   (b) (1) The legislative body of a city may delegate that body's
authority to issue subpoenas, by resolution or ordinance, to a county
officer or department head for the purpose of conducting
investigations to enforce local wage laws.
   (2) The subpoena shall only be for purposes of obtaining records
and testimony reasonably necessary to determine if a local wage
ordinance was violated. The subpoena shall be reviewed by the city
attorney and signed by the designated city officer or department head
before it is issued. The subpoena shall be served in the same manner
as subpoenas are served in civil actions.
   (3) If a county and a city contract for purposes of the city
conducting investigations to enforce local wage laws within the
unincorporated areas of the county, that contract may provide a city
officer or department head with the authority to issue subpoenas
within the contracting county's unincorporated areas with the same
force and effect as if issued within the city's boundaries. A
subpoena issued pursuant to this subdivision shall be reviewed by the
city attorney before being issued.
   (c) If any person duly subpoenaed pursuant to this section to
appear and give evidence or to produce any books or papers before the
designated officer or department head, neglects or refused to
appear, or to produce any books or papers, as required by the
subpoena, or refuses to testify or answer any questions that the
designated officer or department head decides are proper and
pertinent, he or she shall be in contempt, and the designated officer
or department head shall report the that fact to the judge of the
superior court of the county. 
   SEC. 2.    Section 53060.4 is added to the  
Government Code   , to read:  
   53060.4.  (a) The legislative body of a city or county may
delegate to a county or city official or department head its
authority to issue subpoenas and to report noncompliance thereof to
the judge of the superior court of the county, in order to enforce
local wage laws.
   (b) The Legislature finds and declares that these provisions do
not constitute a change in, but are declaratory of, existing law.