California Assembly Bill AB1591 Amended / Bill

 BILL NUMBER: AB 1591AMENDED 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.