California Assembly Bill AB1296

California 2019-2020 Regular Session

• Introduced: 2/22/19
• Refer: 3/11/19
• Report Pass: 4/2/19
• Refer: 4/2/19
• Report Pass: 4/23/19
• Refer: 4/25/19
• Refer: 5/8/19
• Report Pass: 5/16/19
• Engrossed: 5/29/19
• Refer: 5/30/19
• Refer: 6/12/19
• Report Pass: 6/21/19
• Refer: 6/21/19
• Report Pass: 7/2/19
• Refer: 7/2/19
• Report Pass: 8/12/19
• Refer: 8/13/19
• Refer: 8/19/19
• Report Pass: 8/30/19
• Enrolled: 9/14/19
• Chaptered: 10/8/19
• Passed: 10/8/19

Caption

Joint Enforcement Strike Force on the Underground Economy: Labor Enforcement Task Force.

Impact

The legislation modifies existing laws to enforce compliance and recovery efforts related to tax and labor laws. By broadening the investigative powers of state agencies, AB 1296 aims to recover lost tax revenues by addressing those who employ cash-pay methods and other means to evade legal requirements. The bill facilitates information sharing between various enforcement agencies, thereby enabling coordinated responses to violations within the underground economy.

Summary

Assembly Bill 1296, known as the Joint Enforcement Strike Force on the Underground Economy: Labor Enforcement Task Force, aims to enhance California's ability to combat labor violations and tax evasion associated with the underground economy. The bill expands the membership of the existing Joint Enforcement Strike Force by adding the Department of Justice, California Department of Tax and Fee Administration, and the Franchise Tax Board. This expansion allows for more comprehensive enforcement capabilities against individuals and businesses operating outside the law, specifically targeting labor, tax, insurance, and licensing violations.

Sentiment

The sentiment around AB 1296 appears to be supportive among those advocating for regulatory reforms to protect legitimate businesses and workers. Proponents argue that the bill is essential for promoting fairness in the labor market and ensuring that all employers adhere to the same legal standards. However, there may be concerns amid some groups about the expanded powers of enforcement agencies, fearing potential overreach or unintended consequences for compliant businesses.

Contention

One notable point of contention involves the implications of increased data sharing and enforcement authority. Critics may argue that the expanded reach could lead to privacy issues or create an environment where businesses feel overly monitored. Furthermore, the bill's provision that no reimbursement is required for local agencies incurring costs related to the enforcement suggests a potential burden on those entities, which could become a focal point for opposition as its implementation progresses.