BILL ANALYSIS Ó SENATE COMMITTEE ON AGRICULTURE Senator Cathleen Galgiani, Chair 2015 - 2016 Regular Bill No: AB 20 Hearing Date: 7/7/15 ----------------------------------------------------------------- |Author: |Alejo | |-----------+-----------------------------------------------------| |Version: |7/1/15 Amended | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Anne Megaro | | | | ----------------------------------------------------------------- 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 AB 20 (Alejo) Page 2 of ? 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 AB 20 (Alejo) Page 3 of ? 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, AB 20 (Alejo) Page 4 of ? 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 AB 20 (Alejo) Page 5 of ? 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 AB 20 (Alejo) Page 6 of ? 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 AB 20 (Alejo) Page 7 of ? 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 : ------------------------------------------------------------------ |Assembly Floor: |69 - 2 | |--------------------------------------+---------------------------| |Assembly Appropriations Committee: |13 - 0 | |--------------------------------------+---------------------------| AB 20 (Alejo) Page 8 of ? |Assembly Labor and Employment |6 - 1 | |Committee: | | ------------------------------------------------------------------ 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 -- END --