Existing law provides for the licensing and regulation of farm labor contractors by the Labor Commissioner. Existing law specifies that nonprofit corporations and organizations, with respect to certain services performed for their members, are not subject to farm labor contractor licensing requirements. Existing law defines farm labor contractor for purposes of these provisions and excludes a commercial packing house, as specified, from the definition.

This bill would also exclude a nonprofit organization, for the purposes of organization that is engaged in administering an accredited apprenticeship program, as specified, from the farm labor contractor licensing requirements. definition of farm labor contractor.

Existing law provides for the licensing and regulation of farm labor contractors by the Labor Commissioner. Existing law specifies that nonprofit corporations and organizations, with respect to certain services performed for their members, are not subject to farm labor contractor licensing requirements.

Existing law provides for the licensing and regulation of farm labor contractors by the Labor Commissioner. Existing law specifies that nonprofit corporations and organizations are not subject to farm labor contractor licensing requirements.

This bill will make nonsubstantive changes to that provision.

Date of Hearing: May 24, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 1503

Author:(Aguiar-Curry) – As Amended Ver:May 10, 2017

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill excludes a nonprofit organization that administers an accredited apprenticeship program from the definition of “farm labor contractor” and states that this nonprofit must comply with any requirements around farm labor contractors related to employers.

FISCAL EFFECT:

Unknown costs for the Division of Labor Standards and Enforcement (DLSE) related to enforcing farm labor contracting regulations on a non-licensed employer. This bill creates uncertainty around which regulations related to farm labor contracting need to be enforced and how they will be enforced without a corresponding licensing requirement.

COMMENTS:

1. California Farm Academy Apprenticeship Program. The California Farm Academy Apprenticeship Program (Program) is a collaboration between the Center for Land-Based Learning in Yolo County and Soil Born Farms in Sacramento County. The Program, which relies on established farmers willing to provide mentorship and employment, requires apprentices to complete 3,000 hours of on-the-job training in order to receive their certificates. In order to minimize the administrative burdens on farm apprenticeship mentor-farmers and incentivize their partnership with these programs, organizers of the Program would like to centralize its administration by managing all paperwork and paycheck distribution.
2. Apprenticeship programs and farm labor contractors. Under existing law, a farm labor contractor is any person or organization who recruits, solicits, supplies, or hires workers on behalf of an employer engaged in the growing or producing of farm products. Every person engaged in the business of farm labor contracting licensed by DLSE, must keep his or her license up-to-date. According to supporters of AB 1503, nonprofits running apprenticeship programs similar to the Program meet the definition of farm labor contractor under current law.
3. Purpose. According to the bill’s sponsor, the Center for Land-Based Learning, AB 1503 will encourage an apprenticeship structure that will work better for both apprentices and farmers. The sponsor notes that under this bill, apprentices would be able to transfer between farms without burdening the farmers with excessive paperwork.

Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081

Date of Hearing: April 19, 2017

ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT

Tony Thurmond, Chair

ABPCA Bill Id:AB 1503 (

Author:Aguiar-Curry) – As Amended Ver:March 28, 2017

SUBJECT: Farm labor contractors

SUMMARY: Excludes a nonprofit organization for the purposes of administering an accredited apprenticeship program, from the farm labor contractor licensing requirements, and makes technical changes to related provisions.

EXISTING LAW:

1. Requires farm labor contractors to be licensed by the Labor Commissioner and to comply with specified employment laws applicable to farm labor contractors.
2. Exempts nonprofit corporations and organizations, with respect to services as specified, performed for their members, from farm labor contractor licensing requirements.
3. Exempts any person who performs services as specified, only within the scope of employment by the third person on whose behalf they are so acting and not as an independent contractor, from farm labor contractor licensing requirements.

FISCAL EFFECT: Unknown

COMMENTS: The author argues, “The existing California Farm Academy Apprenticeship Program is a collaboration between the Center for Land-Based Learning (CLBL) in Yolo County and Soil Born Farms (SBF) in Sacramento County. Both CLBL and Soil Born have been running farmer training and informal apprenticeship programs for over 6 years. CLBL is currently working closely with the Division of Apprenticeship Standards (DAS) to establish a multi-farm accredited agricultural apprenticeship program in California. The formal accreditation process to standardize the program statewide is nearly complete. The farm apprenticeship is multi-faceted, in order to provide comprehensive and standardized training for participants. Apprentices first complete a 7-month beginning farmer training program. This is the first year of the apprenticeship, which requires 200 classroom hours. They will then complete industry trainings and advanced workshops in their second year to complete the additional 50 coursework hours required to obtain their certification. All of these 250 total classroom hours are in addition to the hands-on experience.

On the farm, the California Farm Academy Apprenticeship Program is designed to encompass at least two growing seasons. Apprentices must complete 3,000 hours of on-the-job training to receive the apprenticeship completion certificate. For this reason, the program relies heavily on established farmers who are qualified and willing to provide mentorship and employment. To ensure apprentices receive comprehensive farm training, the program requires that trainees must complete a certain number of hours of particular work processes (soil management, irrigation, direct marketing, etc.). In order to meet all of the hours required in each of the training categories, apprentices may have to transfer between multiple farms that offer these different experiences. In order to minimize the administrative burdens on farm apprenticeship mentor-farmers and incentivize their partnership with these programs, the Center for Land Based Learning and other nonprofit organizations would like to administer the apprenticeship program – manage all of the paperwork, process applications, complete hire/let go documents, distribute paychecks, etc.”

Definition of Farm Labor Contractor

The law considers the following individuals or organizations farm labor contractors:

Any person or legal entity who, for a fee, employs people to perform work connected to the production of farm products to, for, or under the direction of a third person. Any person or legal entity who recruits, supplies, or hires workers on behalf of someone engaged in the production of farm products and, for a fee, provides board, lodging, or transportation for those workers, or supervises, times, checks, counts, weighs, or otherwise directs or measures their work, or disburses wage payments to these persons.

Every person engaged in the business of farm labor contracting licensed by the Division of Labor Standards Enforcement, must keep his/her license up-to-date, and must keep it in his/her possession. Farm labor contractor does not include a commercial packing house engaged in both the harvesting and the packing of citrus fruit or soft fruit for a client.

Apprenticeship Programs

Apprenticeship is a system of learning while earning, and learning by doing. It combines training on the job with related and supplemental instruction at school. Today, it is utilized chiefly in the skilled crafts. Each program operates under apprenticeship training standards agreed to by labor and management in accordance with state and federal laws, under which a person works with a skilled worker and gains on the job skills and knowledge and in turn becomes an important part of the occupation and industry. In those crafts in which management and labor organizations exist, each selects an equal number of members to serve on the joint apprenticeship committee. The joint apprenticeship committee determines the standards for training of its occupation and supervises the training of apprentices. In many cases the local apprenticeship committees have guidelines in the form of national and/or statewide standards recommended by the advisory organizations. But these are minimums and the local groups usually have complete autonomy in developing and administering their own programs.

Training is spelled out in apprenticeship standards developed by the local apprenticeship committees, with the assistance of consultants of the Division of Apprenticeship Standards, and registered with the State. The processes of the trade and the number of hours to be spent learning each process are defined. The period of training is from 1 to 6 years, depending upon the trade; most programs are for 4 years.

Apprentices start at a percentage of the skilled worker's wage and receive increases at regular intervals. Starting rates are usually 35% to 50%, and increases are given every six months in most trades. Upon successful completion of training, they are issued a certificate of completion by the State of California. Industry coordinators and apprenticeship consultants of the Division of Apprenticeship Standards visit establishments to determine on-the-job progress of apprentices, seek new apprenticeship openings, and discuss problems with apprentices, supervisors and employers. The enforcement of apprenticeship requirements is the responsibility of the Division of Labor Standards Enforcement.

Arguments in Support

The Center for Land- Based Learning is the sponsor of this bill and writes that, “Agricultural apprenticeship programs are critical to developing the next generation of farmers, farm managers, and agricultural workers. Participating in an agricultural apprenticeship will prepare aspiring farmers with sufficient hands-on experience, management training, and business skills to obtain a job with an established farm, or start their own farm upon completion.

Under California Labor Code, any person or organization who recruits, solicits, supplies, or hires workers on behalf of an employer engaged in the growing or producing of farm products is considered to be a farm labor contractor. In order to encourage the widespread establishment of registered agricultural apprenticeships in the state, AB 1503 will narrowly exempt nonprofit organizations administering an accredited agricultural apprenticeship program from this farm labor contractor definition.

Allowing a nonprofit body to hold the administrative responsibilities of apprenticeship training programs will allow for increased flexibility. Apprentices would be able to transfer between farms without burdening the farmers with excessive paperwork. In addition, if an administering nonprofit organization receives funding from multiple sources to support the program and provide apprentice wage subsidies (public, nonprofit, private), it makes sense for the nonprofit to administer wages. Under this structure, apprentices will be able to concentrate on what they are learning, and farmers will be able to focus on their work and training in the field.”

REGISTERED SUPPORT / OPPOSITION:

Support

California Farm Bureau Federation

Center for Land- Based Learning (sponsor)

Community Alliance with Family Farmers

Durst Organic Growers, Inc.

Los Rios Community College District

Pesticide Action Network

Say Hay Farms

Sierra Orchards

Soil Born Farms

UC Davis Student Farm

Valley Vision

Yolo Land & Cattle Co.

Opposition

None on file

Analysis Prepared by: Taylor Jackson / L. & E. / 916-319-2091