BILL ANALYSIS
AB 423
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 423 (Hertzberg)
As Amended July 18, 2001
Majority vote
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|ASSEMBLY: |49-24|(June 6, 2001) |SENATE: |25-7 |(July 19, |
| | | | | |2001) |
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Original Committee Reference: L. & E.
SUMMARY : Establishes a system for the verification of farm labor
contractor (FLC) licenses including a Verification Unit at the
Department of Industrial Relations (DIR). Specifies the duties of
growers and FLCs to obtain copies of licenses, and to use the
verification system to determine if they are valid. Revises
criminal penalties (fines) for specified wage violations, and
establishes a program of state and local enforcement units to
prosecute such cases.
The Senate amendments :
1)Delay until January 1, 2003, the effective date of the provision
that a grower, FLC, or other person, who knowingly and willfully
fails to pay wages, as specified, is guilty of a misdemeanor.
Delete from the elements of the crime the requirement that such
party acted with "intent to defraud."
2)Delete the provisions of this bill requiring mandatory
imprisonment in jail upon a third conviction and other
provisions modifying existing law with respect to imprisonment
in jail.
3)Increase, effective January 1, 2003, the fines upon conviction.
The minimum fine upon a second conviction is increased from
$5,000 to $10,000. The minimum fine upon a third conviction is
increased from $10,000 to $25,000.
4)Limit the support of a local FLC enforcement unit (Local Unit)
by the state FLC Enforcement Unit (State Unit) to technical
rather than financial aid and delete the allocation of fine
revenues to the State Unit. Require the Local Unit to
coordinate, whenever possible, with the Rural Crime Prevention
Program in its jurisdiction.
AB 423
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5)Provide that a portion of the annual FLC license fee shall be
allocated to the FLC verification unit as well as the State
Unit.
6)Provide that this bill will become operative only if SB 1125
(Burton), pending the Governor's signature, is enacted and
becomes effective on or before January 1, 2002.
AS PASSED BY THE ASSEMBLY , this bill:
1)Established an affirmative obligation of a grower, as defined,
to inspect, copy, and verify the license of a person contracted
as a FLC. Established the duty and a procedure for a grower to
verify a FLC license by contacting within specified timelines a
license verification unit to be established by the Labor
Commissioner (LC). Established a similar duty for a FLC to
inspect the license of persons, as specified, contracted by a
FLC.
2)Required the LC to establish and maintain a Farm Labor
Contractor License Verification Unit (Verification Unit), no
later than July 1, 2002, to certify, upon the request of a
grower or FLC, the status of a state license issued to a FLC,
and to provide a unique verification number to the requestor.
The obligation to verify licenses and related penalties do not
apply until three months after the verification unit becomes
operational as certified by the State Auditor, and may be
suspended if the system becomes inoperable.
1)Required a FLC whose license is not renewed to notify a grower
within three days and provided that it is a misdemeanor for a
person whose license was suspended or revoked to act as a FLC.
1)Specified the duties of a FLC to ensure that every person who is
performing farm labor contracting activities on behalf of a FLC
has obtained a license. Provided that a FLC is responsible for
specified labor law violations committed by his or her employee.
1)Provided that any grower, FLC, or other person as specified who
knowingly, willfully, and with intent to defraud fails to pay,
or causes the failure to pay, wages, as specified, is guilty of
a misdemeanor. Provided for imprisonment in a county jail and
fines, or both, upon conviction. Provided for mandatory
AB 423
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imprisonment in a county jail for not less than 30 days and a
fine of not less than $10,000, or both, upon a third conviction,
as specified. Provided also for other sanctions under
specified statutes, and required the LC to revoke the
defendant's license for specified period upon conviction.
Provided that a person may not be prosecuted under any other law
if the prosecution would be based upon the same set of acts if a
person is prosecuted under these provisions.
1)Provided that upon final determination of the LC that a grower,
FLC, or person acting in the capacity of a FLC has failed to pay
wages to its employees, the grower, FLC or such person shall
immediately pay those wages. If payment is not made within 30
days of the final determination, the LC shall notify the local
district attorney.
1)Required the Director of DIR to establish a State Unit to
develop a program of financial land technical assistance to a
district attorney's office that establishes a local FLC
enforcement unit (local unit). Provided that a local unit shall
concentrate enhanced prosecution efforts on the prosecution of
FLCs who violate a state law regulating wages. Allocated the
fines collected pursuant to these provisions to DIR for support
of the state unit.
FISCAL EFFECT : According to the Senate Appropriations Committee
analysis, as amended in the Senate, additional costs resulting
from this bill will be offset by fee revenue.
COMMENTS : This bill, sponsored by the United Farm Workers of
America, AFL-CIO, focuses on the problem of wage payment
violations by FLCs. The text of this bill, as introduced, was
contained in AB 2862 (Romero) of 2000, which was vetoed. The
Governor's veto message indicated that he would sign legislation
that incorporates all of the provisions in the bill, but with
stiff civil penalties in place of criminal sanctions for employers
who knowingly violate the law. The amended bill deletes the
provision for mandatory jail time sentence upon a third conviction
and other provisions increasing jail time upon conviction.
Instead, it increases the fines upon conviction under this bill.
Analysis Prepared by : Ralph Lightstone / L. & E. / (916) 319-2091
FN: 0002142