BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS
                             Senator Tony Mendoza, Chair
                                2015 - 2016  Regular 

          Bill No:               AB 2896      Hearing Date:    June 22,  
          2016
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          |Author:    |Committee on Labor and Employment                    |
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          |Version:   |March 1, 2016                                        |
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          |Urgency:   |No                     |Fiscal:    |No               |
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          |Consultant:|Martha Gutierrez                                     |
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                Subject:  Farm labor contractors:  license:  payment


          KEY ISSUE
          
          Should the Legislature permit the Labor Commissioner's office to  
          accept credit cards as a method of payment for Farm labor  
          contractor license fees?
                                          
          

          ANALYSIS
          
           Existing law  

             1.   Specifies that the Labor Commissioner shall not issue to  
               any person a license to act as a farm labor contractor, nor  
               shall the Labor Commissioner renew that license, until all  
               of the following conditions are satisfied:

                           The person has executed a written application  
                    in a form prescribed by the Labor Commissioner,  
                    subscribed and sworn to by the person.

                           The Labor Commissioner, after investigation,  
                    is satisfied as to the character, competency, and  
                    responsibility of the person.

                           The person has deposited with the Labor  
                    Commissioner a surety bond in an amount based on the  







          AB 2896 (Committeeon Labor and Employment)              Page 2  
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                    size of the person's annual payroll for all employees,  
                    as specified.


             1.   The person has paid to the Labor Commissioner a license  
               fee of five hundred dollars ($600) plus a filing fee of ten  
               dollars ($10). However, when a timely application for  
               renewal is filed, the ten-dollar ($10) filing fee is not  
               required. Part of the fees collected by the Labor  
               Commissioner are used to fund the Farm Labor Contractor  
               Enforcement Unit and the Farm Labor Contractor License  
               Verification Unit.  (Labor Code §1684)
           

          This Bill  authorizes the Labor Commissioner to accept a credit  
          card charge as a method of payment for farm labor contractor  
          license fees, as provided.


          
          COMMENTS
          

          1.  Need for this bill?

             Existing law requires Farm Labor Contractors (FLC's) to be  
            licensed by the Labor Commissioner.  Existing law also  
            requires FLCs to pay license fees to the Labor Commissioner  
            and those funds are used for enforcement and verification  
            purposes. By allowing the Labor Commissioner's office to use  
            all credit cards as form of payment, it will streamline the  
            FLC's licensing process. 


          2.  Proponent Arguments  :
            
            According the author, Farm Labor Contractors have reported  
            that credit cards issued by MasterCard and American Express  
            are the only ones accepted for online payment. Many FLCs do  
            not have either type of card. Proponents argue that as it is  
            by far the most commonly held type of credit card in the  
            United States, a Visa credit card should also be an accepted  
            form of payment. In order to resolve any doubt or question, AB  
            2896 will simply provide the Labor Commissioner with the  








          AB 2896 (Committeeon Labor and Employment)              Page 3  
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            authority to accept any credit card charge as a method of  
            payment for farm labor contractor (FLC) license fees.

          3.  Opponent Arguments  :

            None received. 


          SUPPORT
          
          California Association of Winegrape Growers (Co-Sponsor)
          California Farm Bureau Federation (Co-Sponsor)
          
          OPPOSITION
          
          None of file

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