(September 8, 2004) California Chamber-supported legislation to expedite the process that businesses must go through to obtain copies of seized records was signed last week by Governor Arnold Schwarzenegger.

AB 1894 (Longville; D-San Bernardino) establishes an expedited process where a business may obtain copies of business records, including computer records, which were seized by a government agency during an investigation.

'Without day-to-day business records, a company is unable to operate. Employers are to respond to even simple requests for information such as confirmation of orders or answering employment verification requests, or even to access the data necessary to authorize the timely distribution of employee paychecks,' said Julianne Broyles, Chamber director of employee relations and small business. 'These records can be seized from businesses and employers who have done nothing wrong, and yet they are penalized and often unable to continue operating.'

Several sections of the California Labor Code, along with many other sections of California law, permit the seizure of business records, including computer hard drives, during the investigation of alleged criminal wrongdoing on the part of the employer.  It can take months, or even longer, to get these records back, even in cases where no violations were ever found to have occurred. 

AB 1894 corrects this problem and provides a reasonable process where a business can obtain access to the records within a reasonable period of time after making a request; thereby ensuring a company can make copies of critical business records necessary to keep the company in operation. 

Without records, businesses cannot operate or pay their workers.  Businesses of all sizes have reported suffering significant financial losses, and even the loss of their business, if they, or an employee, become the target of an investigation in which records are seized.

The Chamber believes that this legislation will be beneficial to all California businesses as well as the state’s economy.  The Chamber supported similar legislation last year that passed both houses, but was later vetoed by Governor Gray Davis.

Governor Schwarzenegger has confirmed his promise to keep businesses in California by signing AB 1894 and making it easier for businesses to operate in the state.

For more information on AB 1894 or other Chamber-supported bills, please visit our website at www.calchamber.com.