BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           236 (Swanson)
          
          Hearing Date:  8/17/2009        Amended: 6/25/2009
          Consultant:  Bob Franzoia       Policy Vote: L&IR  4-2
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 236 would extend from January 1, 2010 to  
          January 1, 2014, provisions relating the employment practices of  
          car washes.  This bill would also define the term "employer" for  
          the purpose of those provisions and would specify that a new  
          motor vehicle dealer, as defined, is not an employer for  
          purposes of these regulatory provisions.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Sunset extension                                        
           - registration fees (revenues)   ($360)           ($720) ($720)  
            Special*
                                       - costs            $101       $202   
                        $202                  

          - restitution fees (revenues)      ($150)                ($300)   
                     ($300)           Special**
                                      - costs              $40              
          $80                $80

          * Car Wash Worker Fund (7350-3072), 2009-10
          ** Car Wash Worker Restitution Fund (7350-3071), 2009-10  
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: The Car Wash Worker Law (Chapter 825/2003)  
          requires car washing and polishing employers to register  
          annually with the Labor Commissioner.  Pursuant to Labor Code  
          2059, these employers pay a fee of $300 annually with the fees  
          divided between an employee restitution fund ($50) and  
          administration and enforcement costs ($250) per location.   
          Employers are required to maintain records of employees' names  
          and wages for three years and to maintain a surety bond of not  
          less than $15,000 for the benefit of employees whose wages and  
          benefits are not paid.











          The Division of Labor Standards Enforcement's (DLSE) car wash  
          registration regulations took effect December 22, 2005 and all  
          car washes are required to be registered by July 20, 2006.  This  
          program was extended by Chapter 656/2006.

          Objectives of the DLSE include, among other things, licensing of  
          farm labor contractors, talent agencies, the registration of  
          garment manufacturers, the certification of studio teachers, the  
          registration of car washing and polishing businesses, and the  
          registration of entities and individuals using minors in  
          door-to-door sales.