BILL NUMBER: AB 1591	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 5, 2010

INTRODUCED BY   Assembly Member Yamada

                        JANUARY 4, 2010

   An act to amend Section 212 of the Labor Code, relating to wages.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1591, as amended, Yamada. Wages: prohibited forms of payment.
   Existing law prohibits a person from issuing certain instruments
in payment of wages due unless certain circumstances are met, as
specified. 
   This bill would make a technical, nonsubstantive change to that
provision.  
   This bill would, in addition, require that the established place
of business in the state at which the instrument is payable is also a
reasonable distance from the place of employment or the residence of
the employee.  
   A violation of the existing provisions constitutes a misdemeanor.
By adding a new requirement to these provisions, this bill would
expand the scope of a crime, thereby imposing a state-mandated local
program.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
 yes  .


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

  SECTION 1.  Section 212 of the Labor Code is amended to read:
   212.  (a) No person, or agent or officer thereof, shall issue in
payment of wages due, or to become due, or as an advance on wages to
be earned:
   (1) Any order, check, draft, note, memorandum, or other
acknowledgment of indebtedness, unless it is negotiable and payable
in cash, on demand, without discount, at some established place of
business in the state  that is a reasonable distance from the
place of employment or the residence of the employee  , the name
and address of  which must appear   that place
of business appears  on the instrument, and at the time of its
issuance and for a reasonable time thereafter, which must be at least
30 days, the maker or drawer has sufficient funds in, or credit,
arrangement, or understanding with the drawee for its payment.
   (2) Any scrip, coupon, cards, or other thing redeemable, in
merchandise or purporting to be payable or redeemable otherwise than
in money.
   (b)  When an instrument mentioned in subdivision (a) is protested
or dishonored, the notice or memorandum of protest or dishonor is
admissible as proof of presentation, nonpayment  , and
protest and is presumptive evidence of knowledge of insufficiency of
funds or credit with the drawee.
   (c) Notwithstanding paragraph (1) of subdivision (a), if the
drawee is a bank, the bank's address need not appear on the
instrument and, in that case, the instrument shall be negotiable and
payable in cash, on demand, without discount, at any place of
business of the drawee chosen by the person entitled to enforce the
instrument.
   SEC. 2.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.