BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON AGRICULTURE
                          Senator Cathleen Galgiani, Chair
                                2015 - 2016  Regular 

          Bill No:           AB 20           Hearing Date: 7/7/15
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          |Author:    |Alejo                                                |
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          |Version:   |7/1/15   Amended                                     |
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          |Urgency:   |No                    |Fiscal:    |Yes              |
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          |Consultant:|Anne Megaro                                          |
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            Subject:  Undocumented workers: California Agricultural Act.

           SUMMARY  :
          This bill would enact the California Agricultural Act to create  
          a model program to provide undocumented agricultural employees  
          with a permit to work and live in California, and to direct the  
          state Employment Development Department and the California  
          Department of Food and Agriculture to convene a working group to  
          consult with the federal government and other stakeholders on  
          how to best implement this program.

           BACKGROUND AND EXISTING  
          LAW  :

          Existing state law provides all protections, rights, and  
          remedies available under state law, except any reinstatement  
          remedy prohibited by federal law, to all individuals regardless  
          of immigration status who have applied for employment, or who  
          are or have been employed, in California (Civil Code §3339;  
          Government Code §7285; Health and Safety Code §24000; Labor Code  
          §1171.5).

          Existing federal law states that it is illegal for a person or  
          other entity to knowingly hire or recruit an undocumented person  
          or to hire an individual without examining specified documents  
          establishing both employment authorization and identity (8 U.S.  
          Code § 1324a).

          Under federal law, it is unconstitutional for a state to enact  
          its own immigration policy.  The federal government is  
          responsible for enacting immigration laws and regulations, which  







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          preempt state laws. 

           PROPOSED  
          LAW  :

          This bill:

             1)   Makes findings and declarations related to California's  
               agricultural industry, immigrant labor, and the lack of  
               effective immigration policies on the federal level.

             2)   Defines "employee," "employer," "farm labor contractor,"  
               "farm labor organization," "immediate family member," and  
               "undocumented person."

             3)   Requires the state Employment Development Department  
               (EDD) and the California Department of Food and Agriculture  
               (CDFA) to, no later than February 1, 2017, convene a  
               working group consisting of representatives of EDD, CDFA,  
               the attorney general, the legislature, and various  
               stakeholders.  

             4)   Requires the working group to consult with the U.S.  
               Department of Homeland Security and U.S. Department of  
               Justice to determine the legal roles and responsibilities  
               of state and federal governments in implementing a state  
               model program to provide undocumented agricultural  
               employees a permit to work and live in California.

             5)   Directs the working group to address the following:

                  a.        Qualifying criteria for undocumented persons  
                    to apply for the program.
                  b.        Documentation requirements for applicants.
                  c.        Determination of the state agency to issue  
                    work permits and conduct background and security  
                    checks.
                  d.        Development of security measures such as  
                    tamper-proof work authorization documents.
                  e.        Program application fees and fee structure to  
                    cover the ongoing costs of the program.
                  f.        Protocols to track and monitor employees under  
                    the program.
                  g.        Renewal process for the work permit.
                  h.        Considerations for applicants to travel out of  








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                    the country.
                  i.        Any other procedures and legal requirements  
                    associated with implementing this program as required  
                    by the federal government.

             6)   Requires the working group to submit its recommendations  
               to the legislature and the governor no later than July 1,  
               2017.

             7)   Requires the governor, by August 1, 2017, to make a  
               formal request to the federal government to implement this  
               program or explain why the request was not made and provide  
               recommendations on how the program should be structured.

             8)   Requires the legislature to enact legislation in order  
               to implement this program should the federal government  
               approve or adopt the program.

             9)   Provides model program requirements and limits program  
               eligibility to undocumented persons who meet all of the  
               following criteria:

                  a.        18 years of age or older.
                  b.        Resident of California.
                  c.        Worked in the agricultural industry for at  
                    least 863 hours or 150 workdays over the previous two  
                    years or earned $7,500 or more from agricultural  
                    employment, and maintained employment for 431 hours or  
                    75 workdays or earned $3,750 or more on an annual  
                    basis after receiving the permit.
                  d.        Ability to establish employment by submitting  
                    specified wage and income documents or, if these are  
                    unavailable, at least two other types of reliable  
                    documents including bank, business, or remittance  
                    records.
                  e.        Submits to a fingerprinted criminal history  
                    background check.
                  f.        Has not been convicted of a felony or three or  
                    more misdemeanors.
                  g.        Pays a fee to cover costs of administering the  
                    program.

             10)  Extends the program to immediate family members of the  
               undocumented person as long as those members live with the  
               person or are enrolled in specified educational programs,  








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               submit to a fingerprinted background check, have  never  
               been convicted of a felony or three or more misdemeanors,  
               and pay a fee to cover costs of administering the program.

             11)  Prohibits an official or employee of state government to  
               use information provided for the permit application for any  
               other purpose than to determine eligibility for the  
               program.  Prohibits them from publicizing the information   
               or allowing anyone other than a sworn officer or state  
               employee to examine individual applicants.

             12)  Requires information provided by the applicant to be  
               shared with a state law enforcement entity in connection  
               with a criminal investigation or prosecution or a coroner  
               to identify a deceased individual.

             13)  Disqualifies any person from the program if the person  
               knowingly files false, fictitious, or fraudulent  
               information.

             14)  Requires program administrators to ensure that employers  
               hiring persons permitted under this program are not filling  
               a vacant position due to a strike or other work dispute,  
               that wages and benefits are comparable to those provided to  
               legal residents, and that the employer complies with all  
               labor laws.

             15)  Requires an employer to provide to the permitted  
               employee and the state a written record of employment that  
               includes hours worked and wages paid.

             16)  Entitles permitted employees to the same working  
               protections provided to legal residents.

             17)  Requires program administrators to provide a review of  
               the program to the Assembly and Senate labor committees  
               that shall address program performance, impact on other  
               workers not permitted by the program, and recommendations  
               for improvement, continuation, or termination of the  
               program.

           ARGUMENTS IN SUPPORT:
           
          According to the author, "As California's farmers enter the  
          summer harvest season, they'll continue struggling with an  








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          ongoing labor shortage and a devastating drought.  We cannot  
          simply hope for things to get better.  In Washington D.C., the  
          talks revolving around comprehensive immigration reform have  
          stalled, and the President's Executive Action is blocked.  If  
          California wants change in immigration policy, we as state  
          officials must stand up and lead.  California led the way with  
          the passage of AB 60, which has already provided over 230,000  
          undocumented Californians with drivers licenses so they can  
          legally and safely drive to work in California.  These are  
          hardworking individuals who are very much a key part in our  
          economy and our society.  Let's also find a way to allow  
          employees of our local farmers to legally work in California as  
          well.  AB 20 will do just that - allow skilled, trained, and  
          trusted farmworkers to legally stay and work on California's  
          farms."

          According to the UFCW Wester States Council, this bill, "would  
          not only offer dignity to those who are working in California,  
          but reform would also result in additional revenue for the state  
          and offer an opportunity for these immigrants to continue to  
          contribute to their communities and families without fear  
          associated with 'coming out of the shadows.'"

           COMMENTS  :

          Undocumented farmworkers.  According to the Public Policy  
          Institute of California, there are more than 10 million  
          immigrants in California of which 27% are undocumented.   
          Specific to the agricultural immigrant workforce, the USDA  
          Economic Research Service reports data from the U.S. Department  
          of Labor's National Agricultural Workers Survey (NAWS) that the  
          number of crop farmworkers not legally authorized to work in the  
          U.S. increased from 15% in 1989 to almost 55% in 1999 and has  
          since maintained that level.  This data, however, does not  
          include livestock farmworkers.  

          Current work permits.  The federal government provides an H-2A  
          agricultural guest-worker visa to allow non-citizens to do  
          seasonal or temporary work and maintains the E-Verify program to  
          help employers determine employees' status to work in the U.S.    
          However, these programs have not been adequately robust or  
          effective to provide the necessary skilled labor in a timely  
          manner to fill labor shortages in the agricultural industry.   
          Longstanding criticisms and frustrations with these programs  
          have led the agricultural industry, both employer and employee  








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          organizations, to push for federal legislation that would allow  
          additional or reformed guest-worker visas or permits.

          Value of immigrant farmworkers. A survey conducted by the  
          American Farm Bureau Federation found that 71% of tree fruit  
          growers and 80% of raisin and berry growers were unable to find  
          enough employees to manage their crops.  The National Council of  
          Agricultural Employers further state that "Denials of H-2A  
          applications have increased dramatically.  72 % of growers  
          reported that workers arrived after the "date of need", on  
          average 22 days late.  Growers seeking access to a legal  
          workforce suffer $320,000,000 in economic harm due to h-2a  
          program rules and administration.  Employers reported  
          $150,408,000 of economic loss due to the inability to get the  
          workers they needed in 2010 and an additional $169,763,000 of  
          loss because the workers they did get were not available at the  
          time they were needed."  This bill would address these issues by  
          permitting undocumented persons to work in the agricultural  
          industry as long as specified criteria are met and it can be  
          shown that these workers will not displace jobs from legal  
          residents.

          Agricultural Job Opportunities, Benefits and Security Act  
          (AgJOBS).  Immigration reform has been a major issue of concern  
          at the federal level for over a decade and multiple bills have  
          been introduced over the past several years (H.R. 1773 and S.  
          744 of the 113th Congress; S. 1258 of the 112th Congress; H.R.  
          2414 of the 111th Congress, among others).  These bills have  
          generally sought to achieve the same goal, that being to provide  
          legal working status to immigrant agricultural farmworkers.   
          Specifically, proposals have included the creation of a "blue  
          card" or reform of the H-2A visa.  Although some proposals have  
          passed through their respective committees and houses, none has  
          been signed into law.

          Other state initiatives. Due to the lack of movement at the  
          federal level, some states have taken action to create state  
          programs that would increase the number of authorized immigrant  
          farmworkers in their state.  Specifically, Utah enacted two  
          bills in 2011: H.B. 497, which enacts the state's own  
          immigration policy; and H.B. 116, which, upon permission from  
          the federal government, develops a state guest-worker program to  
          issue work permits to undocumented individuals.

          The U.S. departments of Justice, Homeland Security, and State  








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          filed a lawsuit challenging the constitutionality of H.B. 497.   
          In the Department of Justice's press release dated November 22,  
          2011, Attorney General Eric Holder stated, "A patchwork of  
          immigration laws is not the answer and will only create further  
          problems in our immigrations system.  The federal government is  
          the chief enforcer of immigration laws and while we appreciate  
          cooperation from states, which remains important, it is clearly  
          unconstitutional for a state to set its own immigration policy."

          United Farm Workers.  The UFW has a position of support if  
          amended, and their proposed amendments would include:
             1)   Remove references to the H-2A program since this bill  
               does not seek to replace it.
             2)   Provide equal representation of agricultural employers  
               and employees in the stakeholder group.
             3)   Remove specific requirements for program eligibility  
               such as the number of days worked, etc.

          Note.  This analysis covers agricultural aspects of this bill.   
          For additional labor considerations, please see the analysis by  
          the Senate Committee on Labor and Industrial Relations dated  
          June 24, 2015.

           RELATED  
          LEGISLATION  :

          AB 1544 (V.M. Pérez et al.) of 2012.  Would have created the  
          California Agricultural Jobs and Industry Stabilization Act of  
          2012 to create a program to provide undocumented persons with a  
          permit to work in the agricultural and service industries.  Died  
          on the Assembly Inactive File.

          SB 1818 (Romero), Chapter 1071, Statutes of 2002.  Finds that  
          all protections, rights, and remedies available under state law,  
          except as prohibited by federal law, are available to  
          individuals regardless of immigration status.

           PRIOR  
          ACTIONS  :
                         
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          |Assembly Floor:                       |69 - 2                     |
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          |Assembly Appropriations Committee:    |13 - 0                     |
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          |Assembly Labor and Employment         |6 - 1                      |
          |Committee:                            |                           |
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           SUPPORT  :
          
          American Federation of State, County and Municipal Employees,  
               AFL-CIO
          California Association of Nurseries and Garden Centers
          California Cattlemen's Association
          California Chamber of Commerce
          California Citrus Mutual
          California Communities United Institute
          California Cotton Ginners Association
          California Cotton Growers Association
          California Farm Bureau Federation
          California Fresh Fruit Association
          California Tax Reform Association
          Family Winemakers of California
          Western Agricultural Processors Association
          Western Growers Association
          UFCW Western States Council

           SUPPORT IF AMENDED:
           
          United Farm Workers

           OPPOSITION  :
          
          None received

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