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 ----------------------------------------------------------------- |Author: |Committee on Labor and Employment | |-----------+-----------------------------------------------------| |Version: |March 1, 2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |No | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Martha Gutierrez | | | | ----------------------------------------------------------------- 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 of ? 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 of ? 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 -- END --