AB 2770 Monning

This bill would have established a pilot program to investigate the pool and spa construction industry’s employment and payment practices. The pilot program would have required the Employment Development Department, in consultation with the Franchise Tax Board, Department of Justice, Labor and Workforce Development Agency, and industry representatives, to develop and implement certain criteria that would trigger a recommendation for an audit or investigation to determine if an employer is in violation of any employee wages, hours, or working conditions statutes.

Vetoed on 09/30/10. In his veto message, the Governor stated:

“I am returning Assembly Bill 2770 without my signature.

This bill would 1) create a pilot program to investigate employment and payment practices within the swimming pool and spa construction industry; and, 2) require the Employment Development Department, in consultation with the Franchise Tax Board, the Department of Justice, the Department of Insurance, the Labor and Workforce Development Agency, and industry representatives, to develop and implement a set of criteria that, if met by an employer, would trigger a recommendation for an audit or investigation by the appropriate state tax authorities.  

My Administration has been committed to vigorously enforcing the laws of this state and maximizing resources to combat the underground economy. As shown in creation of the Economic and Employment Enforcement Coalition, I support implementing targeted systems of coordination. However, as I have repeatedly indicated, legislating that coordination and the adoption of protocols or standards for that is unnecessary. If existing laws impeded this coordination, it would be appropriate to alter those. However, simply statutorily instructing the respective enforcement agencies to in essence work together does not assist them in a substantive and practical way.

Moreover, I also note that this bill fails to prescribe what it is intended to achieve. Rather than creating a trigger for a tax audit when labor laws are found to have been violated as the bill intends, this bill instructs tax authorities to recommend and conduct audits or investigations to determine specifically whether labor laws, rather than tax laws, have been violated. Having tax authorities audit and investigate for potential labor law violations is inconsistent with their expertise, and instead is a function of the Division of Labor Standards Enforcement.

For these reasons, I am returning this bill without my signature.”