BILL ANALYSIS
SB 903
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Date of Hearing: August 4, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 903 (Wright) - As Amended: June 7, 2010
Policy Committee: Labor and
Employment Vote: 5-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill extends the time period for the Division of Labor
Standards Enforcement (DLSE) to commence a collection action in
court, from one year to three years from the time a civil
penalty or fee becomes final.
FISCAL EFFECT
Potential increase in civil penalty revenues (GF), to the extent
that the longer period results in collection of additional
penalties by DLSE. According to DLSE, there have not been
significant lapses in filing penalties, so the additional
revenues should be minor.
COMMENTS
1)Rationale . The purpose of the bill is to enhance the
collection of civil penalties for labor law violations by
DLSE, by giving the DLSE more time to initiate collections
actions on penalties it has imposed on violators. Supporters
note that the measure will conform the statute of limitations
period for DLSE penalty collection actions to that which
already exists for the Division of Occupational Safety and
Health (DOSH).
2)Background . Under existing law, the Division of Labor
Standards Enforcement (DLSE), within the Department of
Industrial Relations, is responsible for enforcing minimum
labor standards. DLSE is authorized to levy civil penalties
and fees against violators. Once such penalties and fees
become final, DLSE has one year to commence a collection
SB 903
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action against the violator, which it does by filing a request
for entry of judgment with the clerk of the superior court of
the relevant county.
The Division of Occupational Safety and Health is responsible
for enforcing provisions related to workplace safety. DOSH has
three years from the date a penalty or fee becomes final to
commence a collection action.
3)Issue . Although parity with DOSH regarding the statutes of
limitations for initiating collections actions makes sense, it
is not clear why DLSE needs an additional two years to make an
enforcement action legally collectable. The bill does not
affect timelines for enforcement actions or investigations. It
only affects the amount of time that may elapse between when a
penalty or fee becomes final and when DLSE must file paperwork
with the court. DLSE reports that it has not experienced
lapses in filing penalties.
Analysis Prepared by : Brad Williams / APPR. / (916) 319-2081