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<ns0:Id>20250AB__222799INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-19</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Connolly</ns0:AuthorText>
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<ns0:Legislator>
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<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Connolly</ns0:Name>
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<ns0:Title> An act to amend Section 1684 of the Labor Code, relating to farm labor contractors. </ns0:Title>
<ns0:RelatingClause>farm labor contractors</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Farm labor contractors: surety bonds.</ns0:Subject>
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<html:p>Existing law requires a farm labor contractor to be licensed by the Labor Commissioner and to comply with specified employment laws applicable to farm labor contractors. Existing law prohibits the Labor Commissioner from issuing or renewing a license to act as a farm labor contractor unless specified requirements are met, including that the person has deposited with the Labor Commissioner a surety bond to be payable for, among other things, interest on wages and for any damages arising from violation of orders of the Industrial Welfare Commission and for any other monetary relief awarded to an agricultural worker as a result of a violation of specified employment laws.</html:p>
<html:p>Existing law requires the amount of the surety bond to be based on the size of the person’s annual payroll for all employees, and requires, for payrolls up to $500,000, a $25,000
bond, for payrolls of $500,000 to $2,000,000, a $50,000 bond, and for payrolls greater than $2,000,000, a $75,000 bond. Existing law requires the Labor Commissioner to require documentation of the size of the person’s annual payroll for purposes of these provisions, as provided.</html:p>
<html:p>This bill would instead require the amount of the surety bond to be based on the size of the person’s annual gross receipts from operations as a farm labor contractor and whether the person is also a foreign labor contractor. Specifically, for a farm labor contractor who is registered as a foreign labor contractor, the bill would maintain the required bond amount for each of the above-specified ranges measured instead by annual gross receipts. For a person who is not registered as foreign labor contractor, the bill would double the required bond amount. The bill would require the Labor Commissioner to require documentation of the size of the person’s gross receipts for purposes of these
provisions, as provided.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 1684 of the
<ns0:DocName>Labor Code</ns0:DocName>
is amended to read:
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<html:p>
(a)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The person has executed a written application in a form prescribed by the Labor Commissioner, subscribed and sworn to by the person, and containing all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A statement by the person of all facts required by the Labor Commissioner concerning the applicant’s character, competency, and responsibility, and the manner and method by which the person proposes to conduct operations as a farm labor contractor if the license is issued.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The names and addresses of all persons, except bona fide employees on stated salaries, financially interested, either as partners, associates, or profit sharers, in the proposed operation as a farm labor contractor, together with the amount of their respective interests.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A declaration consenting to the designation by a court of the Labor Commissioner as an agent available to accept service of summons in any action against the licensee if the licensee has left the jurisdiction in which the action is commenced or otherwise has become unavailable to accept service.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The names and addresses of all persons who in the previous calendar year performed any services described in subdivision (b) of Section 1682 within the scope of their employment by the licensee on whose behalf they were acting, unless the person was employed as an independent contractor.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Labor Commissioner, after investigation, is satisfied as to the character, competency, and responsibility of the person.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
If the person is also registered as a foreign labor contractor under Section 9998.1.5 of the Business and Professions Code, the person has deposited with the Labor Commissioner a surety bond in an amount based on the size of the person’s annual gross receipts from operations as a farm labor contract, as follows:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
For gross receipts up to five hundred thousand dollars ($500,000), a twenty-five-thousand-dollar ($25,000) bond.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
For
gross receipts of five hundred thousand dollars ($500,000) to two million dollars ($2,000,000), a fifty-thousand-dollar ($50,000) bond.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
For gross receipts greater than two million dollars ($2,000,000), a seventy-five-thousand-dollar ($75,000) bond.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the person is not also registered as a foreign labor contractor under Section 9998.1.5 of the Business and Professions Code, the person has deposited with the Labor Commissioner a surety bond in an amount based on the size of the person’s annual gross receipts from operations as a farm labor contractor, as
follows:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
For gross receipts up to five hundred thousand dollars ($500,000), a fifty-thousand-dollar ($50,000) bond.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
For gross receipts of five hundred thousand dollars ($500,000) to two million dollars ($2,000,000), a one-hundred-thousand-dollar ($100,000) bond.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
For gross receipts greater than two million dollars ($2,000,000), a one-hundred-fifty-thousand-dollar ($150,000) bond.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
For purposes of this paragraph, the Labor Commissioner shall require documentation of the size of the person’s gross receipts or annual payroll, which may include, but is not limited to, information provided by the person to the Employment Development Department, the Franchise Tax Board, the Division of Workers’ Compensation, the insurer providing the licensee’s workers’ compensation insurance, or the Internal Revenue Service.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
If the contractor has been the subject of a final judgment in a year in an amount equal to or greater than the amount of the bond required, they shall be required to deposit an additional bond within 60 days.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
All bonds required under this chapter shall be payable to the people of the State of California and shall be conditioned upon the farm labor contractor’s compliance with all the terms and provisions of this chapter and subdivisions (j) and (k) of Section 12940 of, and Sections 12950 and 12950.1 of, the Government Code, and payment of all damages occasioned to any person by failure to do so, or by any violation of this chapter or of subdivision
(j) or (k) of Section 12940 of, or of Section 12950 or 12950.1 of, the Government Code, or any violation of Title VII of the Civil Rights Act of 1964 (Public Law 88-352), or false statements or misrepresentations made in the procurement of the license. The bond shall also be payable for interest on wages and for any damages arising from violation of orders of the Industrial Welfare Commission, and for any other monetary relief awarded to an agricultural worker as a result of a violation of this code or of subdivision (j) or (k) of Section 12940 of, or Section 12950 or 12950.1 of, the Government Code, or any violation of Title VII of the Civil Rights Act of 1964 (Public Law 88-352).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The person has paid to the Labor Commissioner a license fee of five hundred dollars ($500) 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. The license fee shall
increase by one hundred dollars ($100), to six hundred dollars ($600), on January 1, 2015. The amount attributable to this increase shall be expended by the Labor Commissioner to fund the Farm Labor Contractor Enforcement Unit and the Farm Labor Contractor License Verification Unit. The Labor Commissioner shall deposit one hundred fifty dollars ($150) of each licensee’s annual license fee into the Farmworker Remedial Account. Funds from this account shall be disbursed by the Labor Commissioner only to persons determined by the Labor Commissioner to have been damaged by any licensee or to persons determined by the Labor Commissioner to have been damaged by an unlicensed farm labor contractor.
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
In making these determinations, the Labor Commissioner shall disburse funds from the Farmworker Remedial Account to satisfy claims against farm labor contractors or unlicensed farm labor contractors, which shall include unpaid wages, interest on wages,
and any damages or other monetary relief arising from the violation of orders of the Industrial Welfare Commission or from a violation of this code, including statutory penalties recoverable by an employee determined to be due to an agricultural worker and for all damages arising from any violation of subdivision (j) or (k) of Section 12940 of, or of Section 12950 or 12950.1 of, the Government Code, or any violation of Title VII of the Civil Rights Act of 1964 (Public Law 88-352).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A disbursement shall be made pursuant to a claim for recovery from the account in accordance with procedures prescribed by the Labor Commissioner.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Disbursed funds subsequently recovered from a liable party by the Labor Commissioner pursuant to Section 1693, or otherwise, shall be returned to the Farmworker Remedial Account.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The
person has taken a written examination that demonstrates an essential degree of knowledge of the current laws and administrative regulations concerning farm labor contractors as the Labor Commissioner deems necessary for the safety and protection of farmers, farmworkers, and the public, including the identification and prevention of sexual harassment in the workplace. To successfully complete the examinations, the person must correctly answer at least 85 percent of the questions posed. The examination period shall not exceed four hours. The examination may only be taken a maximum of three times in a calendar year. The examinations shall include a demonstration of knowledge of the current laws and regulations regarding wages, hours, and working conditions, penalties, employee housing and transportation, collective bargaining, field sanitation, and safe work practices related to pesticide use, including all of the following subjects:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Field
reentry regulations.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Worker pesticide safety training.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Employer responsibility for safe working conditions.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Symptoms and appropriate treatment of pesticide poisoning.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The person has registered as a farm labor contractor pursuant to the federal Migrant and Seasonal Agricultural Worker Protection Act (29 U.S.C. Sec. 1801 et seq.), when registration is required pursuant to federal law, and that information is provided by the person to the Labor Commissioner.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Each of the person’s employees has registered as a farm labor contractor employee pursuant to the federal Migrant and Seasonal Agricultural Worker Protection Act (29 U.S.C. Sec. 1801 et seq.) if that registration is
required pursuant to federal law, and that information is provided by the person to the Labor Commissioner.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The person has executed a written statement, that has been provided to the Labor Commissioner, attesting that the person’s supervisorial employees, including any supervisor, crewleader, mayordomo, foreperson, or other employee whose duties include the supervision, direction, or control of agricultural employees, have been trained at least once for at least two hours each calendar year in the prevention of sexual harassment in the workplace, and that all new nonsupervisorial employees, including agricultural employees, have been trained at the time of hire, and that all nonsupervisorial employees, including agricultural employees, have been trained at least once every two years in identifying, preventing, and reporting sexual harassment in the workplace.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Sexual harassment prevention training shall consist of training administered by a licensee or appropriate designee of the licensee. Sexual harassment training for each agricultural employee shall be in the language understood by that employee. The person may comply with this language requirement either by providing the training in that language or by having the training interpreted for the employee in the language that they understand.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Sexual harassment prevention training shall include, at a minimum, components of the following as consistent with Section 12950 of the Government Code:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The illegality of sexual harassment.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The definition of sexual harassment under applicable state and federal law.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
A description of
sexual harassment, utilizing examples.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The internal complaint process of the employer available to the employee.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
The legal remedies and complaint process available through the Civil Rights Department.
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
Directions for how to contact the Civil Rights Department.
</html:p>
<html:p>
(vii)
<html:span class="EnSpace"/>
The protection against retaliation provided under current law.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
The trainer may use the text of the Civil Rights Department’s pamphlet CRD-185, “Sexual Harassment” as a guide to training, or may use other written material or other training resources covering the information required in subparagraph (C).
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
As part of
their application for license renewal, in order to establish that training is occurring, a licensee shall provide the Labor Commissioner with a complete list of all materials or resources utilized to provide sexual harassment prevention training to their agricultural employees in the calendar year before the month the renewal application is submitted.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
At the conclusion of the training, the trainer shall provide the employee with a copy of the Civil Rights Department’s pamphlet CRD-185, and a record of the training on a form provided by the Labor Commissioner that includes the name of the trainer and the date of the training.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
The licensee shall keep a record with the names of all employees who have received sexual harassment training for a period of three years.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
As part of their
application for license renewal, the licensee shall provide to the Labor Commissioner the total number of agricultural employees trained in sexual harassment prevention in the calendar year before the month the renewal application is submitted.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The Labor Commissioner shall annually aggregate the data provided under this subparagraph by licensees and publish on the internet website of the Labor Commissioner the total number of agricultural employees trained in sexual harassment prevention in the previous calendar year.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The Labor Commissioner shall consult with the Director of Pesticide Regulation, the Department of the California Highway Patrol, the Department of Housing and Community Development, the Employment Development Department, the Civil Rights Department, the Department of Food and Agriculture, the Department of Motor Vehicles, and the Division of Occupational
Safety and Health in preparing the examination required by paragraph (5) of subdivision (a) and the appropriate educational materials pertaining to the matters included in the examination, and may charge a fee of not more than two hundred dollars ($200) to cover the cost of administration of the examination.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The person shall also enroll and participate in at least nine hours of relevant educational classes each year. The classes shall include at least one hour of sexual harassment prevention training. The classes shall be chosen from a list of approved classes prepared by the Labor Commissioner, in consultation with the persons and entities listed in subdivision (b) and county agricultural commissioners.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The Labor Commissioner may renew a license without requiring the applicant for renewal to take the examination specified in paragraph (5) of subdivision (a) if the Labor
Commissioner finds that the applicant meets all of the following criteria:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Has satisfactorily completed the examination during the immediately preceding two years.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Has not during the preceding year been found to be in violation of any applicable laws or regulations including, but not limited to, Division 7 (commencing with Section 12500) of the Food and Agricultural Code, subdivisions (j) and (k) of Section 12940 of, and Section 12950 or 12950.1 of, the Government Code, Part 1 (commencing with Section 17000) of Division 13 of the Health and Safety Code, Division 2 (commencing with Section 200), Division 4 (commencing with Section 3200), and Division 5 (commencing with Section 6300) of this code, and Chapter 1 (commencing with Section 12500) of Division 6 of the Vehicle Code.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Has, for each year since the
license was obtained, enrolled and participated in at least eight hours of relevant, educational classes, chosen from a list of approved classes prepared by the Labor Commissioner.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Has complied with all other requirements of this section.
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