BILL NUMBER: SB 1162	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 26, 2006
	AMENDED IN SENATE  MARCH 23, 2006

INTRODUCED BY   Senator Cedillo
   (Principal coauthor: Assembly Member Lieber)
   (Coauthor: Senator Perata)

                        JANUARY 10, 2006

   An act to add Section 1182.12 to the Labor Code, relating to the
minimum wage  , making an appropriation therefor, and
declaring the urgency thereof, to take effect immediately  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1162, as amended, Cedillo  Minimum wage increase.
   Under existing law, by statute, the minimum wage for all
industries shall be not less than $5.75 per hour on and after March
1, 1998. Also under existing law, the Industrial Welfare Commission
is authorized to set a higher minimum wage in accordance with a
prescribed procedure that includes the selection of wage boards to
consider and make recommendations regarding wage issues. The current
minimum wage for all industries, as established by the commission, is
$6.75 per hour on and after January 1, 2002.
   This bill would increase the minimum wage to $7.25 per hour,
effective on and after  60 days after its enactment 
 July 1, 2007  , and would further increase the minimum
wage to $7.75 per hour, effective on and after July 1,  2007
  2008  . In addition, this bill would provide that
the minimum wage shall be adjusted automatically every year
thereafter on January 1, calculated by  an indexing method
  multiplying the minimum wage by the previous year's
rate of inflation  , as specified.  
   This bill would appropriate $2,000,000 from the General Fund in
the 2005-06 fiscal year to pay for minimum wage increases in state
agencies affected by the increase.  
  This bill would declare that it is to take effect immediately as an
urgency statute.  
   Vote:  2/3   majority  . Appropriation:
 yes   no  . Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1182.12 is added to the Labor Code, to read:
   1182.12.  (a) Notwithstanding any other provision of this part,
 60 days after the enactment of this act   on
and after July 1, 2007  , the minimum wage for all industries
shall be not less than seven dollars and twenty-five cents ($7.25)
per hour  ;   , and  on and after July 1,
 2007   2008  , the minimum wage for all
industries shall be not less than seven dollars and seventy-five
cents ($7.75) per hour.
   (b) (1) The minimum wage shall be adjusted automatically each
January 1, beginning January 1,  2008   2009, to
maintain employee purchasing power, which would otherwise be
diminished by the rate of inflation that occurred during the previous
year  .
   (2) The minimum wage shall be adjusted automatically by
multiplying the minimum wage in effect on the prior June 30 by the
percentage of inflation that occurred during the previous year,
adding this amount of increase to the wage from the previous year,
and rounding off the  product   sum  to the
nearest five cents ($0.05). The Industrial Welfare Commission shall
publicize the automatically adjusted minimum wage, but if it cannot,
then the Department of Industrial Relations shall do so.
   (c) For purposes of subdivision (b), the following terms have the
following meanings:
   (1) "Percentage of inflation" means the percentage of inflation
specified in the California Consumer Price Index for  all
  All  Urban Consumers, as published by the
Department of Industrial Relations, Division of Labor Statistics and
Research, or its successor index.
   (2) "Previous year" means the 12-month period that ended on March
31 of the calendar year prior to the adjustment.
   (d) This section shall not be construed to either preclude an
increase in   of  the minimum wage by the
Industrial Welfare Commission in an amount  that is  greater
than the rate calculated pursuant to subdivision (b)  ,
 or  to  permit a reduction in the minimum wage.

  SEC. 2.    The sum of two million dollars
($2,000,000) is hereby appropriated from the General Fund for
expenditure in the 2005-06 fiscal year in augmentation of Item
8860-001-0001 of Section 2.00 of the Budget Act of 2005 (Ch. 38,
Stats. 2005), for support of the Department of Finance for Schedule
(1) 10-Annual Financial Plan.  These funds shall be allocated by the
Director of Finance to fund a minimum wage increase from six dollars
and seventy-five cents ($6.75) to seven dollars and twenty-five cents
($7.25) per hour for state agencies and programs affected by that
wage increase, if the Director of Finance determines additional
funding is needed. Any funds appropriated by this section that are
not allocated by July 1, 2006, shall revert to the General Fund.
 
   SEC. 3.    This act is an urgency statute
necessary for the immediate preservation of the public peace, health,
or safety within the meaning of Article IV of the Constitution and
shall go into immediate effect. The facts constituting the necessity
are:
   In order for California's lowest paid workers to keep pace with
the rapidly increasing cost of living, it is necessary that this act
take effect immediately.