BILL NUMBER: AB 766	CHAPTERED
	BILL TEXT

	CHAPTER  481
	FILED WITH SECRETARY OF STATE  OCTOBER 6, 2011
	APPROVED BY GOVERNOR  OCTOBER 5, 2011
	PASSED THE SENATE  AUGUST 30, 2011
	PASSED THE ASSEMBLY  SEPTEMBER 2, 2011
	AMENDED IN SENATE  AUGUST 24, 2011
	AMENDED IN ASSEMBLY  APRIL 26, 2011

INTRODUCED BY   Assembly Member Monning
   (Principal coauthor: Assembly Member Bill Berryhill)
   (Coauthor: Senator Lieu)

                        FEBRUARY 17, 2011

   An act to amend Section 1776 of the Labor Code, relating to public
works.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 766, Monning. Public works: payroll records.
   Existing law requires each contractor and subcontractor on a
public works project to keep payroll records regarding his or her
employees, and requires that these records contain information
specified by the Division of Labor Standards Enforcement. Existing
law requires certain personal identification information, as
specified, to be removed when certified payroll records are made
available for inspection to the public or to a public agency.
   This bill would require nonredacted copies of certified payroll
records to be provided, upon request, to any agency included in, and
for the purposes of, the Joint Enforcement Strike Force on the
Underground Economy, or to any law enforcement agency, but would
require any copies of records or certified payroll made available for
inspection and furnished upon request to the public by these
agencies to be marked or redacted to prevent disclosure of an
individual's name, address, and social security number. The bill
would also provide that an employer is not liable in a civil action
for any reasonable act or omission taken in good faith in compliance
with these requirements.
   This bill would incorporate additional changes in Section 1776 of
the Labor Code, proposed by AB 551, to be operative only if AB 551
and this bill are both chaptered and become effective on or before
January 1, 2012, and this bill is chaptered last.



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

  SECTION 1.  Section 1776 of the Labor Code is amended to read:
   1776.  (a) Each contractor and subcontractor shall keep accurate
payroll records, showing the name, address, social security number,
work classification, straight time and overtime hours worked each day
and week, and the actual per diem wages paid to each journeyman,
apprentice, worker, or other employee employed by him or her in
connection with the public work. Each payroll record shall contain or
be verified by a written declaration that it is made under penalty
of perjury, stating both of the following:
   (1) The information contained in the payroll record is true and
correct.
   (2) The employer has complied with the requirements of Sections
1771, 1811, and 1815 for any work performed by his or her employees
on the public works project.
   (b) The payroll records enumerated under subdivision (a) shall be
certified and shall be available for inspection at all reasonable
hours at the principal office of the contractor on the following
basis:
   (1) A certified copy of an employee's payroll record shall be made
available for inspection or furnished to the employee or his or her
authorized representative on request.
   (2) A certified copy of all payroll records enumerated in
subdivision (a) shall be made available for inspection or furnished
upon request to a representative of the body awarding the contract,
the Division of Labor Standards Enforcement, and the Division of
Apprenticeship Standards of the Department of Industrial Relations.
   (3) A certified copy of all payroll records enumerated in
subdivision (a) shall be made available upon request by the public
for inspection or for copies thereof. However, a request by the
public shall be made through either the body awarding the contract,
the Division of Apprenticeship Standards, or the Division of Labor
Standards Enforcement. If the requested payroll records have not been
provided pursuant to paragraph (2), the requesting party shall,
prior to being provided the records, reimburse the costs of
preparation by the contractor, subcontractors, and the entity through
which the request was made. The public may not be given access to
the records at the principal office of the contractor.
   (c) The certified payroll records shall be on forms provided by
the Division of Labor Standards Enforcement or shall contain the same
information as the forms provided by the division. The payroll
records may consist of printouts of payroll data that are maintained
as computer records, if the printouts contain the same information as
the forms provided by the division and the printouts are verified in
the manner specified in subdivision (a).
   (d) A contractor or subcontractor shall file a certified copy of
the records enumerated in subdivision (a) with the entity that
requested the records within 10 days after receipt of a written
request.
   (e) Except as provided in subdivision (f), any copy of records
made available for inspection as copies and furnished upon request to
the public or any public agency by the awarding body, the Division
of Apprenticeship Standards, or the Division of Labor Standards
Enforcement shall be marked or obliterated to prevent disclosure of
an individual's name, address, and social security number. The name
and address of the contractor awarded the contract or the
subcontractor performing the contract shall not be marked or
obliterated. Any copy of records made available for inspection by, or
furnished to, a joint labor-management committee established
pursuant to the federal Labor Management Cooperation Act of 1978 (29
U.S.C. Sec. 175a) shall be marked or obliterated only to prevent
disclosure of an individual's name and social security number. A
joint labor management committee may maintain an action in a court of
competent jurisdiction against an employer who fails to comply with
Section 1774. The court may award restitution to an employee for
unpaid wages and may award the joint labor management committee
reasonable attorney's fees and costs incurred in maintaining the
action. An action under this subdivision may not be based on the
employer's misclassification of the craft of a worker on its
certified payroll records. Nothing in this subdivision limits any
other available remedies for a violation of this chapter.
   (f) (1) Notwithstanding any other provision of law, agencies that
are included in the Joint Enforcement Strike Force on the Underground
Economy established pursuant to Section 329 of the Unemployment
Insurance Code and other law enforcement agencies investigating
violations of law shall, upon request, be provided nonredacted copies
of certified payroll records. Any copies of records or certified
payroll made available for inspection and furnished upon request to
the public by an agency included in the Joint Enforcement Strike
Force on the Underground Economy or to a law enforcement agency
investigating a violation of law shall be marked or redacted to
prevent disclosure of an individual's name, address, and social
security number.
   (2) An employer shall not be liable for damages in a civil action
for any reasonable act or omission taken in good faith in compliance
with this subdivision.
   (g) The contractor shall inform the body awarding the contract of
the location of the records enumerated under subdivision (a),
including the street address, city, and county, and shall, within
five working days, provide a notice of a change of location and
address.
   (h) The contractor or subcontractor has 10 days in which to comply
subsequent to receipt of a written notice requesting the records
enumerated in subdivision (a). In the event that the contractor or
subcontractor fails to comply within the 10-day period, he or she
shall, as a penalty to the state or political subdivision on whose
behalf the contract is made or awarded, forfeit twenty-five dollars
($25) for each calendar day, or portion thereof, for each worker,
until strict compliance is effectuated. Upon the request of the
Division of Apprenticeship Standards or the Division of Labor
Standards Enforcement, these penalties shall be withheld from
progress payments then due. A contractor is not subject to a penalty
assessment pursuant to this section due to the failure of a
subcontractor to comply with this section.
   (i) The body awarding the contract shall cause to be inserted in
the contract stipulations to effectuate this section.
   (j) The director shall adopt rules consistent with the California
Public Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code) and the Information
Practices Act of 1977 (Title 1.8 (commencing with Section 1798) of
Part 4 of Division 3 of the Civil Code) governing the release of
these records, including the establishment of reasonable fees to be
charged for reproducing copies of records required by this section.
  SEC. 1.5.  Section 1776 of the Labor Code is amended to read:
   1776.  (a) Each contractor and subcontractor shall keep accurate
payroll records, showing the name, address, social security number,
work classification, straight time and overtime hours worked each day
and week, and the actual per diem wages paid to each journeyman,
apprentice, worker, or other employee employed by him or her in
connection with the public work. Each payroll record shall contain or
be verified by a written declaration that it is made under penalty
of perjury, stating both of the following:
   (1) The information contained in the payroll record is true and
correct.
   (2) The employer has complied with the requirements of Sections
1771, 1811, and 1815 for any work performed by his or her employees
on the public works project.
   (b) The payroll records enumerated under subdivision (a) shall be
certified and shall be available for inspection at all reasonable
hours at the principal office of the contractor on the following
basis:
   (1) A certified copy of an employee's payroll record shall be made
available for inspection or furnished to the employee or his or her
authorized representative on request.
   (2) A certified copy of all payroll records enumerated in
subdivision (a) shall be made available for inspection or furnished
upon request to a representative of the body awarding the contract,
the Division of Labor Standards Enforcement, and the Division of
Apprenticeship Standards of the Department of Industrial Relations.
   (3) A certified copy of all payroll records enumerated in
subdivision (a) shall be made available upon request by the public
for inspection or for copies thereof. However, a request by the
public shall be made through either the body awarding the contract,
the Division of Apprenticeship Standards, or the Division of Labor
Standards Enforcement. If the requested payroll records have not been
provided pursuant to paragraph (2), the requesting party shall,
prior to being provided the records, reimburse the costs of
preparation by the contractor, subcontractors, and the entity through
which the request was made. The public may not be given access to
the records at the principal office of the contractor.
   (c) The certified payroll records shall be on forms provided by
the Division of Labor Standards Enforcement or shall contain the same
information as the forms provided by the division. The payroll
records may consist of printouts of payroll data that are maintained
as computer records, if the printouts contain the same information as
the forms provided by the division and the printouts are verified in
the manner specified in subdivision (a).
   (d) A contractor or subcontractor shall file a certified copy of
the records enumerated in subdivision (a) with the entity that
requested the records within 10 days after receipt of a written
request.
   (e) Except as provided in subdivision (f), any copy of records
made available for inspection as copies and furnished upon request to
the public or any public agency by the awarding body, the Division
of Apprenticeship Standards, or the Division of Labor Standards
Enforcement shall be marked or obliterated to prevent disclosure of
an individual's name, address, and social security number. The name
and address of the contractor awarded the contract or the
subcontractor performing the contract shall not be marked or
obliterated. Any copy of records made available for inspection by, or
furnished to, a joint labor-management committee established
pursuant to the federal Labor Management Cooperation Act of 1978 (29
U.S.C. Sec. 175a) shall be marked or obliterated only to prevent
disclosure of an individual's name and social security number. A
joint labor management committee may maintain an action in a court of
competent jurisdiction against an employer who fails to comply with
Section 1774. The court may award restitution to an employee for
unpaid wages and may award the joint labor management committee
reasonable attorney's fees and costs incurred in maintaining the
action. An action under this subdivision may not be based on the
employer's misclassification of the craft of a worker on its
certified payroll records. Nothing in this subdivision limits any
other available remedies for a violation of this chapter.
   (f) (1) Notwithstanding any other provision of law, agencies that
are included in the Joint Enforcement Strike Force on the Underground
Economy established pursuant to Section 329 of the Unemployment
Insurance Code and other law enforcement agencies investigating
violations of law shall, upon request, be provided nonredacted copies
of certified payroll records. Any copies of records or certified
payroll made available for inspection and furnished upon request to
the public by an agency included in the Joint Enforcement Strike
Force on the Underground Economy or to a law enforcement agency
investigating a violation of law shall be marked or redacted to
prevent disclosure of an individual's name, address, and social
security number.
   (2) An employer shall not be liable for damages in a civil action
for any reasonable act or omission taken in good faith in compliance
with this subdivision.
   (g) The contractor shall inform the body awarding the contract of
the location of the records enumerated under subdivision (a),
including the street address, city, and county, and shall, within
five working days, provide a notice of a change of location and
address.
   (h) The contractor or subcontractor has 10 days in which to comply
subsequent to receipt of a written notice requesting the records
enumerated in subdivision (a). In the event that the contractor or
subcontractor fails to comply within the 10-day period, he or she
shall, as a penalty to the state or political subdivision on whose
behalf the contract is made or awarded, forfeit one hundred dollars
($100) for each calendar day, or portion thereof, for each worker,
until strict compliance is effectuated. Upon the request of the
Division of Apprenticeship Standards or the Division of Labor
Standards Enforcement, these penalties shall be withheld from
progress payments then due. A contractor is not subject to a penalty
assessment pursuant to this section due to the failure of a
subcontractor to comply with this section.
   (i) The body awarding the contract shall cause to be inserted in
the contract stipulations to effectuate this section.
   (j) The director shall adopt rules consistent with the California
Public Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code) and the Information
Practices Act of 1977 (Title 1.8 (commencing with Section 1798) of
Part 4 of Division 3 of the Civil Code) governing the release of
these records, including the establishment of reasonable fees to be
charged for reproducing copies of records required by this section.
  SEC. 2.  Section 1.5 of this bill incorporates amendments to
Section 1776 of the Labor Code proposed by both this bill and
Assembly Bill 551. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2012, (2)
each bill amends Section 1776 of the Labor Code, and (3) this bill is
enacted after Assembly Bill 551, in which case Section 1 of this
bill shall not become operative.