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<ns0:Id>20250SB__131698AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2026-03-25</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Smallwood-Cuevas</ns0:AuthorText>
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<ns0:Name>Smallwood-Cuevas</ns0:Name>
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<ns0:Title>An act to amend Sections 98.2 and 1174.1 of, and to add Section 1742.05 to, the Labor Code, relating to employment.</ns0:Title>
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(1)
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Existing law sets forth the Labor Commissioner’s duties, including investigating employee complaints and providing for a hearing in any action to recover wages, penalties, and other demands for compensation, as specified. Existing law authorizes the Labor Commissioner, as an alternative to a judgment lien, to create a lien on real property for amounts due under a final order in favor the employee or employees named in the order with the county recorder of any county in which the employer’s real property may be located, at the Labor Commissioner’s discretion and depending upon the information the Labor Commissioner obtains concerning the employer’s assets. Existing law provides that unless the lien is satisfied or released, the lien continues until 10 years from the date of its
creation.
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<html:p>This bill would authorize the lien to be renewed at any time prior to its expiration for additional periods of 10 years by recording a renewal of certificate of lien or a copy of a renewed judgment.</html:p>
<html:p>
(2)
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Existing law precludes an employer or other person or entity who may be liable for a violation of the Labor Code from introducing as evidence in an administrative proceeding contesting a citation or writ proceeding under specified provisions, certain books, documents, or records that are not provided pursuant to a duly served written request by the Labor Commissioner within a specified time period, except as specified.
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<html:p>This bill would also preclude an employer or other person or entity from using or relying on the above-described books,
documents, or records as evidence, would revise the types of books, documents, or records to which the provisions are applicable, and would make those provisions applicable to specified administrative proceeding contesting citations for retaliation or discrimination complaints.</html:p>
<html:p>
(3)
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Existing law defines the term “public works” for purposes of requirements regarding the payment of prevailing wages, the regulation of working hours, and the securing of workers’ compensation for public works projects. Existing law requires the Labor Commissioner to issue a civil wage and penalty assessment to a contractor or subcontractor, or both, if, after an investigation, the commissioner determines there has been a willful violation of the laws regulating public works. Existing law authorizes an affected contractor or subcontractor to obtain a review of the civil wage and penalty assessment by requesting a hearing from the office of the Labor Commissioner,
after which the director shall issue a written decision, as specified. Existing law authorizes an affected contractor or subcontractor to obtain review of the decision of the director by filing a petition for a writ of mandate to the appropriate superior court, as specified.
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<html:p>This bill would preclude a contractor or subcontractor from introducing as evidence, or in any other way using or relying on as evidence, at a hearing or writ of mandate proceeding described in the provisions above, any books, documents, or records that are not provided pursuant to a duly served written request by the Labor Commission within the time that the Labor Commissioner requests those books, documents, or records to be produced, except as specified. The bill would require the Labor Commissioner to take into consideration a reasonable request from the contractor or subcontractor for an extension of time for production of books, documents, or records, as specified.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 98.2 of the
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is amended to read:
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<ns0:Num>98.2.</ns0:Num>
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(a)
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Within 10 days after service of notice of an order, decision, or award, the parties may seek review by filing an appeal to the superior court, where the appeal shall be heard de novo. The court shall charge the first paper filing fee under Section 70611 of the Government Code to the party seeking review. The fee shall be distributed as provided in Section 68085.3 of the Government Code. A copy of the appeal request shall be served upon the Labor Commissioner by the appellant. For purposes of computing the 10-day period after service, Section 1013 of the Code of Civil Procedure is applicable.
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(b)
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As a condition to filing an appeal pursuant to this section, an employer shall first post an undertaking with the reviewing court in the amount of the order,
decision, or award. The undertaking shall consist of an appeal bond issued by a licensed surety or a cash deposit with the court in the amount of the order, decision, or award. The employer shall provide written notification to the other parties and the Labor Commissioner of the posting of the undertaking. The undertaking shall be on the condition that, if any judgment is entered in favor of the employee, the employer shall pay the amount owed pursuant to the judgment, and if the appeal is withdrawn or dismissed without entry of judgment, the employer shall pay the amount owed pursuant to the order, decision, or award of the Labor Commissioner unless the parties have executed a settlement agreement for payment of some other amount, in which case the employer shall pay the amount that the employer is obligated to pay under the terms of the settlement agreement. If the employer fails to pay the amount owed within 10 days of entry of the judgment, dismissal, or withdrawal of the appeal, or the execution of a
settlement agreement, a portion of the undertaking equal to the amount owed, or the entire undertaking if the amount owed exceeds the undertaking, is forfeited to the employee.
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(c)
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If the party seeking review by filing an appeal to the superior court is unsuccessful in the appeal, the court shall determine the costs and reasonable attorney’s fees incurred by the other parties to the appeal, and assess that amount as a cost upon the party filing the appeal. An employee is successful if the court awards an amount greater than zero.
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(d)
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If no notice of appeal of the order, decision, or award is filed within the period set forth in subdivision (a), the order, decision, or award shall, in the absence of fraud, be deemed the final order.
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(e)
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The Labor Commissioner shall file, within 10 days of the order becoming final
pursuant to subdivision (d), a certified copy of the final order with the clerk of the superior court of the appropriate county unless a settlement has been reached by the parties and approved by the Labor Commissioner. Judgment shall be entered immediately by the court clerk in conformity therewith. The judgment so entered has the same force and effect as, and is subject to all of the provisions of law relating to, a judgment in a civil action, and may be enforced in the same manner as any other judgment of the court in which it is entered. Enforcement of the judgment shall receive court priority.
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(f)
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(1)
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In order to ensure that judgments are satisfied, the Labor Commissioner may serve upon the judgment debtor, personally or by first-class mail at the last known address of the judgment debtor listed with the division, a form similar to, and requiring the reporting of the same information as, the form approved or adopted
by the Judicial Council for purposes of subdivision (a) of Section 116.830 of the Code of Civil Procedure to assist in identifying the nature and location of any assets of the judgment debtor.
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<html:p>
(2)
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The judgment debtor shall complete the form and cause it to be delivered to the division at the address listed on the form within 35 days after the form has been served on the judgment debtor, unless the judgment has been satisfied. In the case of a willful failure by the judgment debtor to comply with this subdivision, the division or the judgment creditor may request the court to apply the sanctions provided in Section 708.170 of the Code of Civil Procedure.
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(g)
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(1)
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As an alternative to a judgment lien, upon the order becoming final pursuant to subdivision (d), a lien on real property may be created by the Labor Commissioner recording a certificate of lien, for
amounts due under the final order and in favor of the employee or employees named in the order, with the county recorder of any county in which the employer’s real property may be located, at the Labor Commissioner’s discretion and depending upon information the Labor Commissioner obtains concerning the employer’s assets. The lien attaches to all interests in real property of the employer located in the county where the lien is created to which a judgment lien may attach pursuant to Section 697.340 of the Code of Civil Procedure.
</html:p>
<html:p>
(2)
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The certificate of lien shall include information as prescribed by Section 27288.1 of the Government Code.
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<html:p>
(3)
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The recorder shall accept and record the certificate of lien and shall index it as prescribed by law.
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(4)
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Upon payment of the amount due under the final order, the Labor
Commissioner shall issue a certificate of release, releasing the lien created under paragraph (1). The certificate of release may be recorded by the employer at the employer’s expense.
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(5)
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Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
The lien may be renewed for additional periods of 10 years by recording a renewal of certificate of lien or a copy of a renewed judgment at any time prior to its expiration.
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(h)
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Notwithstanding subdivision (e), the Labor Commissioner may stay execution of any judgment entered upon an order, decision, or award that has become final upon good cause appearing therefor and may impose the terms and conditions of the stay of execution. A certified copy of the stay of execution shall be filed with the clerk entering the judgment.
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<html:p>
(i)
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When a judgment is satisfied in fact, other than by execution, the Labor Commissioner may, upon the motion of either party or on its own motion, order entry of satisfaction of judgment. The clerk of the court shall enter a satisfaction of judgment upon the filing of a certified copy of the order.
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<html:p>
(j)
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The Labor Commissioner shall make every reasonable effort to ensure that judgments are satisfied, including taking all appropriate legal action and requiring the employer to deposit a bond as provided in Section 240.
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(k)
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The judgment creditor, or the Labor Commissioner or a public prosecutor, as defined in Section 180, as assignee of the judgment creditor, shall be awarded court costs and reasonable attorney’s fees for enforcing the judgment that is rendered pursuant to this section.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 1174.1 of the
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is amended to read:
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<ns0:Num>1174.1.</ns0:Num>
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<html:p>
(a)
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Any employer, or other person or entity, who may be liable for a violation of any provision of this code shall be precluded from introducing as evidence, or in any other way using or relying on as evidence, including, but not limited to, attempting to impeach any witness in an administrative proceeding contesting a citation or writ proceeding under Section 98.74, 558, 1197.1, 2673.1, or 2673.2, books, documents, or records, as specified in subdivision (b), that are not provided pursuant to a duly served written request by the Labor Commissioner under this section within the time the Labor Commissioner
requests those books, documents, or records be produced, pursuant to either of the following:
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<html:p>
(1)
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When the Labor Commissioner provides for no less than 15 days to respond, subject to the exceptions under subdivision (c), (d), (e), or (g).
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<html:p>
(2)
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When the Labor Commissioner provides for less than 15 days to respond, subject to the exceptions under subdivision (c) or (e), if the Labor Commissioner, in their discretion, determines that circumstances exist that make it necessary to require a shorter period of production for the Labor Commissioner to conduct a complete investigation. In this instance, a statement indicating that determination of necessity shall be included with the written request from the Labor Commissioner.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The books, documents, or records to which this section applies are payroll, time, and employment
records that are required to be maintained at the place of employment or at a central location within the state by the employer, including, but not limited to, under Sections 226, 247.5, 432.3, 1174, 1197.5, 1198.5, 2052, and 2673, and Section 6 or 7 (“Records”) of any order of the Industrial Welfare Commission.
</html:p>
<html:p>
(c)
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Subdivision (a) shall not apply in the event that the person or entity subject to the written request by the Labor Commissioner for the production of books, documents, or records opposes such a request in court, prior to the issuance of any citation under Section
98.74, 558, or 1197.1, and a court determines that the books, documents, or records are not required to be produced.
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<html:p>
(d)
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Paragraph (1) of subdivision (a) shall not apply to the failure to produce any books, documents, or records within the time requested by the Labor Commissioner if such failure is due to an inadvertent error, provided that such error is corrected and the books, documents, or records are produced to the Labor Commissioner no later than 20 days from the date originally requested. For purposes of this section, “inadvertent error” means any clerical mistake causing an unintended delay in production of the requested books, documents, or records.
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(e)
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The Labor Commissioner shall take into consideration a reasonable request from the person or entity subject to subdivision (a) for an extension on the time for production of
books, documents, or records. The commissioner shall determine the reasonableness of the request and may consider, among other things, the location of the books, documents, or records and the volume of production. The Labor Commissioner, in their discretion, may admit and consider books, documents, or records that are produced beyond the time limits provided for in this section upon a finding that both of the following conditions are satisfied:
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<html:p>
(1)
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The person or entity cooperated with the underlying investigation and substantially complied with the request within the time limit prescribed.
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<html:p>
(2)
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The person or entity made good faith efforts to comply with the request, including discovery of the late-produced books, documents, or records.
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(f)
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Service of a written request for books, documents, or records on a corporation
or limited liability company shall be in the same manner as provided for service of a summons as described in Chapter 4 (commencing with Section 413.10) of Title 5 of Part 2 of the Code of Civil Procedure.
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(g)
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For purposes of paragraph (1) of subdivision (a) and notwithstanding subdivision (e), a person or entity that provides a timely good faith response to the Labor Commissioner that additional time is needed to gather requested books, documents, or records, shall be provided an automatic extension of 15 days.
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Section 1742.05 is added to the
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<ns0:Num>1742.05.</ns0:Num>
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(a)
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A contractor or subcontractor shall be precluded from introducing as evidence, or in any other way using or relying on as evidence, including, but not limited to, attempting to impeach any witness, at a hearing under subdivision (a) or (b) of Section 1742, or a writ proceeding under subdivision (c) of Section 1742, books, documents, or records that are not provided pursuant to a duly served written request by the Labor Commissioner within the time the Labor Commissioner requests those books, documents, or records be produced, pursuant to either of the following:
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<html:p>
(1)
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When the Labor Commissioner provides for no less than 10 days to respond, subject to the exceptions under subdivision (c), (d), (e), or (f).
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<html:p>
(2)
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When the Labor Commissioner provides for less than 10 days to respond, subject to the exceptions under subdivision (c) or (e), if the Labor Commissioner, in their discretion, determines that circumstances exist that make it necessary to require a shorter period of production for the Labor Commissioner to conduct a complete investigation. In this instance, a statement indicating that determination of necessity shall be included with the written request from the Labor Commissioner.
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<html:p>
(b)
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The books, documents, or records to which this section applies are payroll, time, and employment records that are required to be maintained at the place of employment or at a central location within the state by the contractor or subcontractor, including, but not limited to, under Sections 1174 and 1776, Section 2602 of the Public Contract Code, Sections 229, 230, 230.1, and 16000 of Title 8 of the
California Code of Regulations, and Section 6 of Order 16-2001 of the Industrial Welfare Commission.
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<html:p>
(c)
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Subdivision (a) shall not apply in the event that the contractor or subcontractor subject to the written request by the Labor Commissioner for the production of books, documents, or records opposes such a request in court, prior to the issuance of a civil wage and penalty assessment under Section 1741, and a court determines that the books, documents, or records are not required to be produced.
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<html:p>
(d)
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Paragraph (1) of subdivision (a) shall not apply to the failure to produce any books, documents, or records within the time requested by the Labor Commissioner if such failure is due to an inadvertent error, provided that such error is corrected and the books, documents, or records are produced to the Labor Commissioner no later than 20 days from the date originally requested. For
purposes of this section, “inadvertent error” means any clerical mistake causing an unintended delay in production of the requested books, documents, or records.
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<html:p>
(e)
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The Labor Commissioner shall take into consideration a reasonable request from the contractor or subcontractor subject to subdivision (a) for an extension on the time for production of books, documents, or records. No extension granted pursuant to this section shall extend the time in which a contractor or subcontractor is required to produce certified payroll records to the Labor Commissioner under Section 1776. The Labor Commissioner shall determine the reasonableness of the request and may consider, among other things, the location of the books, documents, or records and the volume of production. The Labor Commissioner, in their discretion, may admit and consider books, documents, or records that are produced beyond the time limits provided for in this section upon a finding
that both of the following conditions are satisfied:
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<html:p>
(1)
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The contractor or subcontractor cooperated with the underlying investigation and substantially complied with the request within the time limit prescribed.
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(2)
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The contractor or subcontractor made good faith efforts to comply with the request, including discovery of the late-produced books, documents, or records.
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(f)
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For purposes of paragraph (1) of subdivision (a) and notwithstanding subdivision (e), a contractor or subcontractor that provides a timely good faith response to the Labor Commissioner that additional time is needed to gather requested books, documents, or records, shall be provided an automatic extension of 15 days. This subdivision does not apply to requests for certified payroll records under Section 1776.
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(g)
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Nothing in this section shall apply to a contractor or subcontractor’s obligation to provide certified payroll records to the Labor Commissioner in response to a written request under Section 1776.
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