BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 702
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          Date of Hearing:   August 25, 2010

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Norma Torres, Chair
                     AB 702 (Salas) - As Amended:  August 9, 2010
           
          SUBJECT  :   Joe Serna, Jr., Farmworker Housing Grant Program:   
          agricultural employees.

           SUMMARY  :  Expands the definition of "agricultural employees" for  
          purposes of the Joe Serna Jr., Farmworker Housing Grant Program  
          (FWHG).  Specifically,  this bill  :

          1)Expands the definition of "agricultural employees" for  
            purposes of the FWHG program to include any person who works  
            on or off the farm in processing of any agricultural commodity  
            until it is shipped for distribution.

          2)Includes an urgency clause.

           EXISTING LAW  

          1)Establishes the FHWG program to fund the development of  
            ownership or rental homes for agricultural employees and their  
            families through grants to local governments and non-profit  
            organizations (Health and Safety Code Section 50515.7).

          2)Defines "agricultural employees" as persons engaged in  
            agriculture as well as persons who work at a packing shed for  
            a labor contractor or other entity that contracts with an  
            agricultural employer in order to perform services in  
            connection with handling, drying, packing, or storing any  
            agricultural commodity in its raw or natural state (Health and  
            Safety Code Section 50515.7).

           FISCAL EFFECT  :  This bill was gutted and amended in the Senate  
          and has not been heard by a fiscal committee.  However, HCD  
          estimates that any costs would be minor and absorbable.

           COMMENTS  : 

          AB 702, for purposes of the FWHG program, expands the definition  
          of "agricultural employees" to include any person who works on  
          or off the farm in the processing of any agricultural commodity  
          until it is shipped for distribution.  The bill also includes an  








                                                                  AB 702
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          urgency clause.

          According to the bill's sponsor, the California Coalition for  
          Rural Housing, in 2008 Congress, for purposes of federal housing  
          programs, expanded the definition of domestic farm labor to  
          include workers engaged not only in the handling of agricultural  
          commodities in the unprocessed stage but also in the "processing  
          of agricultural or aquacultural commodities."  Moreover, the  
          federal legislation clarified that farm labor may be performed  
          off the farm, not just on the farm.  This bill more closely  
          conforms the state's definition of agricultural employee to the  
          analogous federal definition, which the sponsor argues will have  
          the following benefits:

               Allow operators of farmworker housing to rent out units  
              financed with both federal and state funding using one set  
              of eligibility rules rather than two;

               Increase the financial viability of state-financed  
              farmworker housing by expanding the eligible population that  
              may rent such units;

               Eliminate confusion and instability among agricultural  
              workers who perform more than one kind of agricultural  
              activity (e.g., field work and processing); and

               Provide a stable and well-housed workforce for local  
              employers engaged in the cultivation, handling, drying,  
              packing, processing, or storing of agricultural products.     
               

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Coalition for Rural Housing (sponsor)
          California Rural Legal Assistance Foundation

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Anya Lawler / H. & C.D. / (916)  
          319-2085 









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