BILL ANALYSIS �
AB 1675
Page 1
ASSEMBLY THIRD READING
AB 1675 (Bonilla)
As Amended March 20, 2012
Majority vote
LABOR & EMPLOYMENT 5-1 APPROPRIATIONS 12-5
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|Ayes:|Swanson, Alejo, Allen, |Ayes:|Fuentes, Blumenfield, |
| |Furutani, Yamada | |Bradford, Charles |
| | | |Calderon, Campos, Davis, |
| | | |Gatto, Ammiano, Hill, |
| | | |Lara, Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Morrell |Nays:|Harkey, Donnelly, |
| | | |Nielsen, Norby, Wagner |
| | | | |
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SUMMARY : Establishes civil penalties for unlicensed farm labor
contractors. Specifically, this bill :
1)Makes a person who acts as a farm labor contractor without a
license subject to a civil penalty as follows:
a) For any initial citation, $100 for each farmworker
employed by the unlicensed person and $100 of each calendar
day that a violation occurs, for a total penalty not to
exceed $10,000;
b) For a second citation, $200 for each farmworker employed
by the unlicensed person and $200 for each calendar day
that a violation occurs for a total penalty not to exceed
$20,000; and,
c) For a third violation, or subsequent citation, $500 for
each farmworker employed by the licensed person and $500
for each calendar day that a violation occurs, for a total
penalty not to exceed $50,000.
2)Specifies that a "license" includes a letter of authorization
issued by the Labor Commissioner (LC) under existing law,
where the licensee has fulfilled all the requirements for a
license but the LC has not been able to timely issue or renew
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a license.
3)Requires the Labor Commissioner (LC) to issue a citation if,
upon inspection or investigation, the LC determines that a
person has violated this section.
4)Specifies that the procedures for issuing, contesting, and
enforcing citations or civil penalties issued by the LC for a
violation of this section are the same as those described
under existing law.
5)Requires the civil penalties collected pursuant to this
section be deposited into the Farmworker Remedial Account.
6)Specifies that the civil penalties established in this section
may be levied in addition to any other penalty provided by the
law.
EXISTING LAW :
1)Defines "farm labor contractor" as any person who, for a fee,
does one or all of the following:
a) Employs workers to render personal services in
connection with the production of any farm products to,
for, or under the direction of a third person;
b) Recruits, solicits, supplies or hires workers on behalf
of an employer engaged in the growing or producing of farm
produces; and,
c) Provides, for a fee, furnishes board, lodging, or
transportation for those workers, supervises, times,
checks, counts, weighs, or otherwise directs or measures
their work, or disburses wage payments to these persons.
2)Specifies that "farm labor contractor" includes any "day
hauler," defined as a person who is employed by a farm labor
contractor to transport workers to carry out their employment
duties.
3)Requires a person to obtain a license from the LC in order to
operate as a farm labor contractor.
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4)Requires a person to deposit a surety bond with the LC prior
to the issuance of the farm labor contractor license.
5)Establishes the Farmworker Remedial Account to provide a
source of funds to be disbursed by the Labor Commissioner to
persons who have been damaged by any licensee or licensed farm
labor contractor whenever such damage exceeds the limits of
the licensee's bond.
6)Establishes the Division of Labor Standards Enforcement (DLSE)
within the Department of Industrial Relations to enforce
minimum labor standards and to protect employers who comply
with the law from those who attempt to gain competitive
advantage at the expense of their workers by failing to comply
with minimum labor standards.
7)Creates the Bureau of Field Enforcement (BOFE) within the DLSE
to investigate and enforce statutes covering unlicensed
contractors, cash pay, workers' compensation and other
specified laws. BOFE also handles criminal investigations
involving these group claims.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, increased special fund costs, likely between $63,000
and $250,000, to the Department of Industrial Relations (DIR)
for additional staff to investigate citations and conduct
appeals pursuant to the requirements of this measure. This cost
may be offset by civil penalties established by this measure.
COMMENTS : According to the author, under current law the only
enforcement authority the LC has against unlicensed farm labor
contractors is to refer to the matter for a possible criminal
misdemeanor prosecution. However, the author states that
licensing violations are rarely, if ever, prosecuted, and leave
the LC without the legal weapons he or she has in other
contexts, including garment manufacturing, and construction
contracting, to deter unlicensed contractor activities through
assessment of civil penalties. According to the Department of
Industrial Relations' database, there are 1,460 licensed farm
labor contractors in California.
The sponsor of this bill, the California Rural Legal Assistance
Foundation (CRLAF), states allowing the LC to issue a civil
penalty for the first, second or third offense in graduated
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amounts is designed to deter future misconduct and assist DLSE
with its labor law enforcement efforts.
They note that these provisions are similar to the existing
civil penalty authority the LC has to address unlicensed car
washing establishments, garment manufacturing and construction
contracting.
Analysis Prepared by : Shannon McKinley / L. & E. / (916)
319-2091
FN: 0003845