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O25961 City Council Meeting: January 8, 2019 Santa Monica, California ORDINANCE NUMBER 2596 (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE CHAPTERS 4.62 AND 4.63 TO ENHANCE INVESTIGATORS’ ENFORCEMENT AUTHORITY AND ACCESS TO RECORDS WHEREAS, on January 26, 2016, the City Council of the City Of Santa Monica adopted Ordinance No. 2509 (CCS), adding Chapter 4.62 to the Santa Monica Municipal Code requiring a minimum wage for employees, and adding Chapter 4.63 to the Municipal Code requiring a living wage for hotel workers; and WHEREAS, on May 10, 2016, the City Council adopted Ordinance No. 2515 (CCS), amending Chapters 4.62, 4.63, and 4.65 of the Municipal Code relating to wage alignment, first-time workers, paid sick leave, service charges, enforcement, and hotel hardship waiver; and WHEREAS, the City’s experience over the past two years in implementing and enforcing the minimum wage and hotel living wage laws, in coordination with the Los Angeles County Department of Consumer and Business Affairs, demonstrates that enhancing enforcement capabilities and access to employer records would improve the City’s ability to ensure fair working conditions and wages for employees in compliance with local law; and thereby promotes the public health, safety, and welfare. 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 4.62.100 is hereby amended to read as follows: 4.62.100 Law enforcement access, remedies, and penalties. (a) Records and Interview Access; Cooperation with Investigations. To monitor and investigate compliance with the requirements of this Chapter, every Employer shall cooperate with City-authorized investigators, including but not limited to: accessing records, and allowing investigators to interview persons, including Employees, during normal business hours. (b) The City may issue and serve administrative subpoenas as necessary to obtain specific information regarding minimum wage and benefits provided to Employees pursuant to this Chapter, including, but not limited to, records pertaining to each Employee that document the name, address, occupation, dates of employment, rate or rates of pay, amount paid each pap period, the hours worked for each Employee, and the formula by which each Employee’s wages, sick leave, service charge distribution, and benefits, as applicable, are calculated, to determine whether the Employer is in compliance with this Chapter. Any subpoena issued pursuant to this section shall not require the production of information sooner than 30 days from the date of service. A person that has been served with an administrative subpoena may seek judicial review during that 30 - day period. 3 (c) Unless otherwise specifically provided, any person violating any provision of this Chapter shall be guilty of a misdemeanor, which shall be punishable by a fine not exceeding $500 but not less than $150 per violation, or imprisonment in the County Jail for a period not exceeding six months, or by both fine and imprisonment, or shall be guilty of an infraction, which shall be punishable by a fine not exceeding $250 but not less than $100 per violation. Each such person shall be guilty of a separate offense for each and every day during any portion of which any violation of any provision of this Chapter is committed, continued, or permitted by such person and shall be punishable accordingly. (d) Any person violating any provision of this Chapter or any rule or regulation may be subject to administrative citation pursuant to Chapter 1.09 of this Code. (e) Any person convicted of violating any provision of this Chapter or the terms and conditions of any permit or approval issued pursuant to this Chapter shall be required to reimburse the law enforcement agency that investigated the violation its full investigative costs. (f) Violation of any provision of this Chapter, with the exception of Sections 4.62.060 and 4.62.070, shall be considered a strict liability offense; accordingly, the prosecution shall not be required to prove criminal intent or that the violator meant to violate any provision of this Chapter. (g) Prosecution for any violation of this Chapter, including the issuance of any administrative citation or order, shall be commenced within three years after 4 discovery of the commission of the offense by law enforcement authorities or by the victims of the offense. SECTION 2. Santa Monica Municipal Code Section 4.63.100 is hereby amended to read as follows: 4.63.100 Law enforcement access, remedies, and penalties. (a) Records and Interview Access; Cooperation with Investigations. To monitor and investigate compliance with the requirements of this Chapter, every Hotel Employer shall cooperate with City-authorized investigators, including but not limited to: accessing records, and allowing investigators to interview persons, including Hotel Workers, during normal business hours. (b) The City may issue and serve administrative subpoenas as necessary to obtain specific information regarding minimum wage and benefits provided to Hotel Workers pursuant to this Chapter, including, but not limited to, records pertaining to each Hotel Worker that document the name, address, occupation, dates of employment, rate or rates of pay, amount paid each pap period, the hours worked for each Hotel Worker, and the formula by which each Hotel Worker’s wages, sick leave, service charge distribution, and benefits, as applicable, are calculated, to determine whether the Hotel Employer is in compliance with this Chapter. Any subpoena issued pursuant to this section shall not require the production of information sooner than 30 days from the date of service. A person that has been served with an administrative subpoena may seek judicial review during that 30-day period. 5 (c) Unless otherwise specifically provided, any person violating any provision of this Chapter shall be guilty of a misdemeanor, which shall be punishable by a fine not exceeding five hundred dollars but not less than one hundred fifty dollars per violation, or imprisonment in the County Jail for a period not exceeding six months, or by both fine and imprisonment, or shall be guilty of an infraction, which shall be punishable by a fine not exceeding two hundred fifty dollars but not less than one hundred dollars per violation. Each such person shall be guilty of a separate offense for each and every day during any portion of which any violation of any provision of this Chapter is committed, continued, or permitted by such person and shall be punishable accordingly. (d) Any person violating any provision of this Chapter or any rule or regulation may be subject to administrative citation pursuant to Chapter 1.09 of this Code. (e) Any person convicted of violating any provision of this Chapter or the terms and conditions of any permit or approval issued pursuant to this Chapter shall be required to reimburse the law enforcement agency that investigated the violation its full investigative costs. (f) Violation of any provision of this Chapter, with the exception of Sections 4.63.060 and 4.63.070, shall be considered a strict liability offense; accordingly, the prosecution shall not be required to prove criminal intent or that the violator meant to violate any provision of this Chapter. (g) Prosecution for any violation of this Chapter, including the issuance of any administrative citation or order, shall be commenced within three years after 6 discovery of the commission of the offense by law enforcement authorities or by the victims of the offense. SECTION 3. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 4. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: _________________________ LANE DILG City Attorney Approved and adopted this 8th day of January, 2019. _____________________________ G l e a m D a v i s , M a y o r State of California ) County of Los Angeles ) ss. City of Santa Monica ) I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Ordinance No. 2596 (CCS) had its introduction on November 27, 2018, and was adopted at the Santa Monica City Council meeting held on January 8, 2019, by the following vote: AYES: Councilmembers Himmelrich, McKeown, Morena, Winterer Mayor Pro Tem O’Day, Mayor Davis NOES: None ABSENT: None ATTEST: _____________________________________ _________________ Denise Anderson-Warren, City Clerk Date A summary of Ordinance No. 2596 (CCS) was duly published pursuant to California Government Code Section 40806. Gleam Davis (Jan 11, 2019) Gleam Davis Jan 11, 2019