2002 Legislation
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SENATE BILL NO. 1289 – Farm labor contractor licensing

SENATE BILL NO. 1289

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S1289aa.....................................by COMMERCE AND HUMAN RESOURCES
FARM LABOR CONTRACTOR LICENSING - Adds to existing law to provide for the
licensing of farm labor contractors by the Department of Labor.
                                                                        
01/16    Senate intro - 1st rdg - to printing
01/17    Rpt prt - to Com/HuRes
01/25    Rpt out - rec d/p - to 2nd rdg
01/28    2nd rdg - to 3rd rdg
01/29    3rd rdg - Held
01/30    To 14th Ord
02/08    Rpt out amen - to engros
02/11    Rpt engros - 1st rdg - to 2nd rdg as amen
02/12    2nd rdg - to 3rd rdg as amen
02/15    3rd rdg as amen - PASSED - 33-0-2
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
      Burtenshaw, Cameron, Darrington, Davis, Deide, Dunklin, Frasure,
      Geddes, Goedde, Hill, Ingram, Ipsen, Keough, King-Barrutia, Little,
      Lodge, Marley, Noh, Richardson, Risch, Sandy, Schroeder, Sims,
      Sorensen, Stegner, Thorne, Wheeler, Williams
      NAYS -- None
      Absent and excused -- Hawkins, Stennett
    Floor Sponsors - Lodge & Dunklin
    Title apvd - to House
02/18    House intro - 1st rdg - to Agric Aff
03/01    Rpt out - rec d/p - to 2nd rdg
03/04    2nd rdg - to 3rd rdg
03/08    3rd rdg - PASSED - 55-10-5
      AYES -- Aikele, Barraclough, Bedke, Bell, Bieter, Black, Block, Boe,
      Bolz, Bruneel, Callister, Collins, Cuddy, Deal, Denney, Ellis,
      Ellsworth, Field(20), Gagner, Hadley, Hammond, Henbest, Hornbeck,
      Jaquet, Jones, Kellogg(Duncan), Kendell, Kunz, Lake, Langford, Mader,
      Martinez, Meyer, Montgomery, Mortensen, Moyle, Pischner, Pomeroy,
      Raybould, Ridinger, Roberts, Robison, Sali, Schaefer, Sellman,
      Shepherd, Smith(33), Smith(23), Smylie, Stevenson, Stone, Trail,
      Wheeler, Young, Mr. Speaker
      NAYS -- Barrett, Bradford, Campbell, Crow, Eskridge, Harwood,
      Loertscher, McKague, Pearce, Wood
      Absent and excused -- Clark, Field(13), Gould, Higgins, Tilman
    Floor Sponsors - Trail & Robison
    Title apvd - to Senate
03/11    To enrol
03/12    Rpt enrol - Pres signed - Sp signed
03/13    To Governor
03/27    Governor signed
         Session Law Chapter 328
         Effective: 01/01/03

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1289
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LICENSING OF FARM LABOR  CONTRACTORS;  AMENDING  TITLE  44,  IDAHO
  3        CODE,  BY  THE ADDITION OF A NEW CHAPTER 16, TITLE 44, IDAHO CODE, TO PRO-
  4        VIDE DEFINITIONS, TO PROVIDE EXEMPTIONS, TO PROVIDE FOR LICENSING OF  FARM
  5        LABOR  CONTRACTORS, TO REQUIRE PROOF OF FINANCIAL RESPONSIBILITY, TO SPEC-
  6        IFY AN APPLICATION FEE AND TO PROVIDE FOR APPROPRIATION OF FEES COLLECTED,
  7        TO PROVIDE DUTIES OF THE DEPARTMENT WITH REGARD TO LICENSING AND TO  SPEC-
  8        IFY  CONDITIONS  OF  THE LICENSE, TO PROVIDE DUTIES OF THE FARM LABOR CON-
  9        TRACTOR, TO SPECIFY PROHIBITED ACTS, TO PROVIDE  FOR  DENIAL,  REVOCATION,
 10        SUSPENSION  AND REFUSAL TO RENEW A LICENSE, TO PROVIDE NOTICE OF DENIAL OF
 11        AN APPLICATION, REFUSAL TO RENEW A LICENSE, REVOCATION OR SUSPENSION OF  A
 12        LICENSE AND TO PROVIDE FOR A HEARING, TO PROVIDE FOR JOINT LIABILITY OF AN
 13        AGRICULTURAL  EMPLOYER AND AN UNLICENSED FARM LABOR CONTRACTOR, TO PROVIDE
 14        CLAIM FOR WAGES, TO PROVIDE FOR PRIVATE RIGHT OF ACTION, TO  PROVIDE  SER-
 15        VICE OF PROCESS WHEN UNLICENSED CONTRACTOR IS UNAVAILABLE, TO PROVIDE THAT
 16        RETALIATION IS PROHIBITED, TO PROVIDE VIOLATIONS AND PENALTIES, TO PROVIDE
 17        RULEMAKING  AUTHORITY TO THE DEPARTMENT OF LABOR AND TO PROVIDE SEVERABIL-
 18        ITY; AND PROVIDING AN EFFECTIVE DATE.
                                                                        
 19    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 20        SECTION 1.  That Title 44, Idaho Code, be, and the same is hereby  amended
 21    by  the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
 22    ter 16, Title 44, Idaho Code, and to read as follows:
                                                                        
 23                                      CHAPTER 16
 24                           FARM LABOR CONTRACTOR LICENSING
                                                                        
 25        44-1601.  DEFINITIONS. As used in this chapter:
 26        (1)  "Agricultural association" means any nonprofit or cooperative associ-
 27    ation of farmers, growers or ranchers, incorporated or qualified under  appli-
 28    cable state law.
 29        (2)  "Agricultural  employer"  means  any  person  engaged in any activity
 30    included within the definition of "agriculture" in subsection (3) of this sec-
 31    tion.
 32        (3)  "Agriculture" includes farming in all its branches and,  among  other
 33    things,  includes  the cultivation and tillage of the soil; dairying; the pro-
 34    duction, cultivation, growing and harvesting of any agricultural, aquacultural
 35    or horticultural commodities; the raising of livestock, bees, fur-bearing ani-
 36    mals or poultry; and any practices, including any forestry or lumbering opera-
 37    tions performed by a farmer or on a farm as an incident to or  in  conjunction
 38    with  such  farming  operation,  including preparation for market, delivery to
 39    storage or to market or to carriers for transportation to market.
 40        (4)  "Department" means the department of labor of the state of Idaho.
 41        (5)  "Director" means the director of the department of labor.
 42        (6)  "Farm labor contracting activity" means recruiting, soliciting,  hir-
                                                                        
                                           2
                                                                        
  1    ing,  employing,  furnishing  or transporting any migrant or seasonal agricul-
  2    tural worker.
  3        (7)  "Farm labor contractor" means any person who, for any money or  other
  4    valuable  consideration  paid  or promised to be paid, performs any farm labor
  5    contracting activity.
  6        (8)  "Immediate family member" means the spouse, children,  brother,  sis-
  7    ter, mother or father.
  8        (9)  "Migrant  agricultural worker" means an individual who is employed in
  9    agricultural employment of a seasonal or temporary nature, and who is required
 10    to be absent overnight from his permanent place of residence. This  term  does
 11    not  include any immediate family member of an agricultural employer or a farm
 12    labor contractor.
 13        (10) "Person" means an individual, association, partnership, limited  lia-
 14    bility company, corporation or other business entity.
 15        (11) "Seasonal agricultural worker" means an individual who is employed in
 16    agricultural  employment of a seasonal or temporary nature and is not required
 17    to be absent overnight from his permanent place of residence. This  term  does
 18    not  include any immediate family member of an agricultural employer or a farm
 19    labor contractor.
                                                                        
 20        44-1602.  EXEMPTIONS. The provisions of this chapter shall  not  apply  to
 21    the following:
 22        (1)  An agricultural association engaged in farm labor contracting activi-
 23    ties exclusively for members of that association.
 24        (2)  Any  individual engaged in farm labor contracting for an agricultural
 25    operation owned or operated exclusively by such individual or a member of such
 26    individual's immediate family, if such activities are performed only for  such
 27    operation  and  exclusively  by such individual, but without regard to whether
 28    such individual has incorporated or otherwise organized for business purposes.
 29        (3)  Agricultural employers exchanging agricultural labor or services with
 30    each other, provided the work is performed on land  owned  or  leased  by  the
 31    agricultural employers.
 32        (4)  Any  common  carrier  that  would  be  a farm labor contractor solely
 33    because it is engaged in transporting any  migrant  or  seasonal  agricultural
 34    worker.  For  purposes  of  this  section,  a common carrier is one that holds
 35    itself out to the general public to engage in transportation of passengers for
 36    hire, whether over regular or irregular routes, and holds a valid  certificate
 37    or  authorization for such purpose from an appropriate local, state or federal
 38    agency.
 39        (5)  Any nonprofit charitable organization, public entity or private  non-
 40    profit educational institution.
 41        (6)  Any  employee of a person described in subsections (1) through (5) of
 42    this section when performing farm labor contracting activities exclusively for
 43    such person, unless the employee receives a commission or fee based  upon  the
 44    number of workers recruited.
                                                                        
 45        44-1603.  LICENSE -- APPLICATION -- CONTENTS. (1) Except as otherwise pro-
 46    vided, no person shall act as a farm labor contractor unless such person holds
 47    a valid license issued by the department.
 48        (2)  An  application  for a farm labor contractor's license shall be sworn
 49    to by the applicant and shall be submitted on a form prescribed by the depart-
 50    ment that shall require, but not be limited to, the following information  and
 51    documentation:
 52        (a)  The  applicant's name, Idaho address and all other temporary and per-
 53        manent addresses the applicant uses or knows will be used in the future;
                                                                        
                                           3
                                                                        
  1        (b)  Two (2) recent, passport sized, color photographs of  the  applicant,
  2        or  the  applicant's  authorized agent when the applicant is not a natural
  3        person;
  4        (c)  A statement by the applicant of all facts required by the  department
  5        concerning  the  applicant's  fitness,  competency,  and qualifications to
  6        engage in the business of farm labor contracting;
  7        (d)  A statement by the applicant of all facts required by the  department
  8        concerning  the  manner and method by which the applicant proposes to con-
  9        duct operations as a farm labor contractor;
 10        (e)  A certificate of insurance issued by the applicant's  auto  insurance
 11        carrier listing the department as the certificate holder and providing for
 12        a  thirty (30) day cancellation notice for all vehicles used in the opera-
 13        tion of the farm labor contracting business;
 14        (f)  A certificate  of  workers'  compensation  insurance  issued  by  the
 15        applicant's workers' compensation insurance carrier listing the department
 16        as the certificate holder and providing for a thirty (30) day cancellation
 17        notice;
 18        (g)  Whether   the  applicant  has  or  was  ever  granted  a  farm  labor
 19        contractor's license in any other jurisdiction;
 20        (h)  Whether the applicant was ever denied a  license  or  had  a  license
 21        revoked  or  suspended  under  the farm labor contractor laws of any other
 22        jurisdiction;
 23        (i)  The names  and  addresses  of  all  persons  financially  interested,
 24        whether  as  partners,  limited  liability  company members, shareholders,
 25        associates, or profit sharers in the applicant's proposed operation  as  a
 26        farm labor contractor, together with the amount of their respective inter-
 27        ests,  and  whether  or not, to the best of the applicant's knowledge, any
 28        such persons were ever denied a license or had a license revoked  or  sus-
 29        pended under the farm labor contractor laws of any jurisdiction; and
 30        (j)  The following declaration by the applicant, or the applicant's autho-
 31        rized  agent  when the applicant is not a natural person: "With regards to
 32        any action filed against the applicant concerning the applicant's  activi-
 33        ties  as  a  farm labor contractor, the applicant appoints the director of
 34        the Idaho Department of Labor as the applicant's lawful  agent  to  accept
 35        service  of  summons when the applicant is not present in the jurisdiction
 36        in which such action is commenced or have in any other way become unavail-
 37        able to accept service.".
                                                                        
 38        44-1604.  APPLICANT -- PROOF OF FINANCIAL  RESPONSIBILITY  --  PAYMENT  OF
 39    CLAIMS. (1) Each applicant shall submit with the application and shall contin-
 40    ually  maintain proof of financial responsibility to ensure the prompt payment
 41    of employees' wages pursuant to chapter 6, title 45, Idaho Code, and the  pay-
 42    ment of any claims awarded pursuant to section 44-1613, Idaho Code.
 43        (2)  Proof  of  financial  responsibility shall be in the form of a surety
 44    bond from a company licensed to do business in the state of Idaho. The  surety
 45    bond  shall  be  in  the  amount of ten thousand dollars ($10,000) if the farm
 46    labor contractor employs no more than twenty (20) employees, and thirty  thou-
 47    sand dollars ($30,000) if the contractor employs more than twenty (20) employ-
 48    ees.
 49        (3)  The  surety  bond  shall  be  for  the  benefit  of  the  farm  labor
 50    contractor's  employees  and shall be conditioned upon the payment of all sums
 51    legally owing to them.
 52        (4)  The  surety  bond  shall  be  executed  to  cover  the   farm   labor
 53    contractor's  liability for the period for which the license is issued, during
 54    which time the bond cannot be canceled or otherwise terminated.
                                                                        
                                           4
                                                                        
  1        (5)  All claims against the bond shall be unenforceable unless request for
  2    payment of a court judgment, or lien pursuant to section 45-620,  Idaho  Code,
  3    has  been  sent by certified mail to the surety. The surety company shall make
  4    prompt and periodic payments on the farm labor contractor's liability  to  the
  5    extent of the total amount of the bond.
  6        (6)  In  lieu of the surety bond required by this section, an applicant or
  7    farm labor contractor may deposit with the department cash or  other  security
  8    acceptable  to  the  director. The deposit shall not be less than ten thousand
  9    dollars ($10,000) if the farm labor contractor employs  no  more  than  twenty
 10    (20)  employees, and thirty thousand dollars ($30,000) if the farm labor  con-
 11    tractor employs more than twenty (20) employees. The security  deposited  with
 12    the  director  in  lieu of the surety bond shall be returned to the farm labor
 13    contractor  at  the  expiration  of  two  (2)  years  after  the  farm   labor
 14    contractor's  license  has  expired  or  been otherwise terminated, unless the
 15    director has received written notice that a legal or administrative action has
 16    been instituted against the farm labor contractor for failing to  comply  with
 17    the requirements of this chapter.
                                                                        
 18        44-1605.  APPLICATION  FEE  --  APPROPRIATION.  Each  application shall be
 19    accompanied by a nonrefundable fee of two hundred fifty  dollars  ($250).  All
 20    fees  collected  shall be continuously appropriated to the department and used
 21    for the administration of this chapter.
                                                                        
 22        44-1606.  DEPARTMENT -- LICENSING DUTIES -- LICENSE  --  TERM  --  RENEWAL
 23    FEE. (1) The department shall issue licenses to persons who are at least eigh-
 24    teen  (18) years of age and who have shown themselves to be fit, competent and
 25    qualified to engage in the business of farm labor contracting. Factors  to  be
 26    considered  by  the department in making this determination shall include, but
 27    not be limited to, the following:
 28        (a)  Whether an applicant  has  unsatisfied  judgments  or  administrative
 29        decisions requiring the payment of unpaid wages;
 30        (b)  Whether  an  applicant  has  worker's  compensation coverage for each
 31        employee;
 32        (c)  Whether an applicant has paid  unemployment  insurance  contributions
 33        when due;
 34        (d)  Whether  an  applicant  has violated any provision of this chapter or
 35        the rules adopted hereunder;
 36        (e)  Whether an applicant was ever denied  a  license  or  had  a  license
 37        revoked,  suspended or not renewed under the farm labor contractor laws of
 38        any jurisdiction;
 39        (f)  Whether an applicant has employed an agent who has had a  farm  labor
 40        contractor  license  denied,  suspended, revoked or not renewed or who has
 41        otherwise violated any provisions of this chapter  or  the  rules  adopted
 42        hereunder; and
 43        (g)  Whether  an applicant, when required by law, has failed or refused to
 44        seek food, water, shelter or medical attention, or to  provide  any  other
 45        goods  or  services  required for the safety and health of the applicant's
 46        employees.
 47        (2)  The industrial commission shall make records available to the depart-
 48    ment, including records that are otherwise exempt from disclosure  under  sec-
 49    tion  9-340B, Idaho Code, for the purpose of determining an applicant's quali-
 50    fications under subsection (1)(b) of this  section.  Records  disclosed  under
 51    this subsection shall not be further disclosed by the department.
 52        (3)  The  department  shall  issue  a license within fifteen (15) business
 53    days of receipt of a completed application if the  department  determines  the
                                                                        
                                           5
                                                                        
  1    applicant to be fit, competent and qualified to engage in the business of farm
  2    labor  contracting. An application shall be deemed completed when all required
  3    information and documentation has been submitted to the department.
  4        (4)  The license shall not be transferable or assignable.
  5        (5)  The first year of licensing shall run from April 1st to the following
  6    March 31st and each license shall expire on March 31st following the  date  of
  7    its  issuance unless sooner revoked or otherwise terminated by the department.
  8    Beginning January 1, 2004, the licensing year shall run from  January  1st  to
  9    the  following  December  31st  and each license shall expire on December 31st
 10    following the date of its issuance unless sooner revoked or  otherwise  termi-
 11    nated by the department.
 12        (6)  A license may be renewed annually upon payment of a nonrefundable fee
 13    of two hundred fifty dollars ($250) and by providing the following:
 14        (a)  Proof  of  financial  responsibility  as required by section 44-1604,
 15        Idaho Code;
 16        (b)  A certificate of insurance  as  required  by  section  44-1603(2)(e),
 17        Idaho Code; and
 18        (c)  A  certificate  of  insurance  as  required by section 44-1603(2)(f),
 19        Idaho Code.
 20    The department may require any person seeking renewal to file a  new  applica-
 21    tion  showing  the  person  to  be fit, competent and qualified to continue to
 22    engage in the business of farm labor contracting.
 23        (7)  The department shall maintain a central public registry of  all  per-
 24    sons issued a farm labor contractor's license.
                                                                        
 25        44-1607.  FARM LABOR CONTRACTOR -- DUTIES. A farm labor contractor shall:
 26        (1)  Carry his farm labor contractor license at all times and exhibit such
 27    license  upon request to anyone with whom the farm labor contractor intends to
 28    deal in his capacity as a farm labor contractor.
 29        (2)  File immediately at the United States post office  serving  the  farm
 30    labor contractor's address as noted on the license a correct change of address
 31    and notify the department each time an address change is made.
 32        (3)  Pay or distribute promptly when due to the persons entitled all money
 33    or  other things of value entrusted to the farm labor contractor for that pur-
 34    pose.
 35        (4)  Comply with the terms and provisions of all agreements  or  contracts
 36    entered into by the farm labor contractor.
 37        (5)  Comply with all applicable state laws and rules.
 38        (6)  Provide to the department certified copies of payroll records for any
 39    payment period requested by the department.
 40        (7)  Provide  to  each  employee at the time of hiring, recruiting, solic-
 41    iting or supplying such employee, whichever occurs first, a written  statement
 42    in  English or, as necessary and reasonable, in Spanish or other language com-
 43    mon to agricultural workers who are not fluent or literate  in  English,  that
 44    contains a description of:
 45        (a)  The rate of compensation and the method of computing the rate of com-
 46        pensation;
 47        (b)  The  terms  and  conditions  of  employment,  including  the name and
 48        address of the farm labor contractor, the place of employment, the approx-
 49        imate length of the period of employment and the approximate starting  and
 50        ending dates;
 51        (c)  The  terms  and  conditions  of  any  bonus offered and the manner of
 52        determining when the bonus is earned;
 53        (d)  The terms and conditions of any loan made to the employee;
 54        (e)  The terms and conditions of any housing,  transportation,  equipment,
                                                                        
                                           6
                                                                        
  1        health  care, day care or any other employee benefit to be provided by the
  2        farm labor contractor or the farm labor contractor's agent, and the  costs
  3        to be charged for each item;
  4        (f)  The  name  and  address  of the surety on the farm labor contractor's
  5        bond;
  6        (g)  The employee's rights and remedies, including an employee's right  to
  7        make a claim against the farm labor contractor's surety bond.
  8        (8)  Provide  to  the employee each time the employee receives a compensa-
  9    tion payment from the farm labor contractor a written statement itemizing  the
 10    total  payment,  the amount and purpose of each deduction therefrom, the hours
 11    worked and, if the work was done on a piece basis, the number of  pieces  com-
 12    pleted.
 13        (9)  For  each  employee  make,  keep and preserve for three (3) years the
 14    following information:
 15        (a)  The basis on which wages were paid;
 16        (b)  The number of piecework units earned, if paid on a piecework basis;
 17        (c)  The number of hours worked;
 18        (d)  The total pay period earnings;
 19        (e)  The specific sums withheld and the reason for withholding each sum;
 20        (f)  The net pay; and
 21        (g)  The name and address of the owner of all operations, or  the  owner's
 22        agent, where the employee worked.
                                                                        
 23        44-1608.  FARM  LABOR  CONTRACTOR  --  APPLICANT FOR LICENSE -- PROHIBITED
 24    ACTS. A farm labor contractor or an applicant for a  farm  labor  contractor's
 25    license shall not:
 26        (1)  Make  misrepresentations or false statements on the application for a
 27    license.
 28        (2)  Make or cause to be made, to any person,  any  false,  fraudulent  or
 29    misleading representation, or publish or circulate or cause to be published or
 30    circulated  any  false,  fraudulent  or  misleading information concerning the
 31    terms, conditions or existence of any employment.
 32        (3)  Solicit, induce or cause to be solicited or induced the violation  of
 33    an existing contract of employment.
 34        (4)  Violate, or assist another person to violate the requirements of this
 35    chapter.
 36        (5)  By  any  force, intimidation, or threat, including threat of deporta-
 37    tion, induce any employee of the farm labor contractor to give up any part  of
 38    the compensation to which the employee is entitled under federal or state wage
 39    payment laws.
                                                                        
 40        44-1609.  LICENSE -- DENIAL, REVOCATION, SUSPENSION, REFUSAL TO RENEW. (1)
 41    The  department may deny, revoke, suspend or refuse to renew a farm labor con-
 42    tractor license when:
 43        (a)  The applicant or licensee, or the agent of the applicant or licensee,
 44        has had his farm labor contractor's  license  denied  or  revoked  in  any
 45        jurisdiction within three (3) years of the date of application;
 46        (b)  The  licensee  or his agent has violated or failed to comply with any
 47        provision of this chapter or the rules promulgated hereunder;
 48        (c)  The applicant or licensee has an unsatisfied court judgment or  final
 49        administrative decision against him for unpaid wages;
 50        (d)  The  applicant or licensee made false or misleading statements on, or
 51        provided false or misleading  information  with,  his  application  for  a
 52        license;
 53        (e)  The  applicant  or  licensee  fails  to  maintain  proof of financial
                                                                        
                                           7
                                                                        
  1        responsibility as required by section 44-1604, Idaho Code;
  2        (f)  The applicant  or  licensee  fails  to  provide,  or  the  department
  3        receives  notice of cancellation of any certificates of insurance required
  4        by section 44-1603, Idaho Code;
  5        (g)  The applicant or licensee fails to pay unemployment insurance contri-
  6        butions when due; or
  7        (h)  The applicant or licensee, when required by law, fails or refuses  to
  8        seek  food,  water,  shelter or medical attention, or to provide any other
  9        goods or services required for the safety and health of his employees.
 10        (2)  Before the department denies, revokes, suspends or refuses to renew a
 11    license, the applicant or licensee shall be given written notice of  the  rea-
 12    sons for the licensing action and an opportunity for a hearing.
                                                                        
 13        44-1610.  ACTION  AGAINST LICENSE -- HEARING. (1)  The contested case pro-
 14    visions of the Idaho administrative procedure act, chapter 52, title 67, Idaho
 15    Code, shall not apply to licensing actions under this chapter.
 16        (2)  When it appears, pursuant to section 44-1609, Idaho Code, that suffi-
 17    cient cause exists for the denial of any application for,  the  revocation  or
 18    suspension  of,  or refusal to renew any license required by this chapter, the
 19    department shall serve notice, in the manner provided for in subsection (7) of
 20    this section, to the applicant or license holder stating the proposed  adverse
 21    action  to  be  taken, the grounds on which such action is based, and that the
 22    department's proposed action shall become final unless, within ten (10) calen-
 23    dar days of the date of mailing of the notice, the aggrieved party files  with
 24    the department a written request for a hearing.
 25        (3)  A written request for a hearing may be filed by personal delivery, by
 26    mail,  or by fax to the wage and hour section of the department at the address
 27    indicated on the notice. The date of personal delivery shall be noted  on  the
 28    request and shall be deemed the date of filing. If mailed, the hearing request
 29    shall  be deemed to be filed on the date of mailing as determined by the post-
 30    mark. A faxed request that is received by the wage and hour  section  by  5:00
 31    p.m.  on  a  business  day shall be deemed filed on that date. A faxed request
 32    that is received by the wage and hour section on a weekend, holiday  or  after
 33    5:00 p.m. on a business day shall be deemed filed on the next business day.
 34        (4)  Reasonable  notice  of  the hearing, containing the date, time, place
 35    and purpose of the hearing, shall be served on all parties to the  hearing  in
 36    the manner provided for in subsection (7) of this section.
 37        (5)  The  hearing shall be conducted by an employee of the department des-
 38    ignated by the director to be the hearing officer, who shall not be  bound  by
 39    statutory  rules  of  evidence or by technical or formal rules of procedure. A
 40    record shall be made of the sworn testimony. Every  party  to  the  proceeding
 41    shall have the right to counsel at their own expense and a full opportunity to
 42    be  heard, including such cross-examination as may be appropriate. The hearing
 43    officer, as soon after the conclusion of the hearing as possible, on the basis
 44    of the record made at the hearing, shall issue a decision and serve it on  all
 45    parties  to  the  hearing in the manner provided for in subsection (7) of this
 46    section.
 47        (6)  The decision of the hearing officer shall be a final agency order and
 48    shall be effective on the date it is issued,  subject  only  to  the  judicial
 49    review provisions of chapter 52, title 67, Idaho Code.
 50        (7)  Any  notice  or  decision  required  by  this section shall be deemed
 51    served if delivered to the person being served or if mailed to his last  known
 52    address. Service by mail shall be deemed completed on the date of mailing. The
 53    date  indicated  on  the  notice or decision as the "date of mailing" shall be
 54    presumed to be the date the document was deposited in the United States  mail,
                                                                        
                                           8
                                                                        
  1    unless otherwise shown by a preponderance of competent evidence.
                                                                        
  2        44-1611.  JOINT  LIABILITY.  (1)  If  an agricultural employer uses a farm
  3    labor contractor who is properly licensed and bonded under the  provisions  of
  4    this  chapter,  that  agricultural employer shall not be jointly and severally
  5    liable for any unpaid wages determined to be due and owing pursuant to chapter
  6    6, title 45, Idaho Code, to any employee of the farm labor contractor who per-
  7    formed work for that agricultural employer.
  8        (2)  An agricultural employer who knowingly uses the services of an  unli-
  9    censed  farm  labor  contractor  shall be jointly and severally liable for any
 10    unpaid wages determined to be due and owing pursuant to chapter 6,  title  45,
 11    Idaho  Code,  to any employee of the unlicensed farm labor contractor who per-
 12    formed work for that agricultural employer.  In  making  determinations  under
 13    this  section,  any  user  of a farm labor contractor may rely upon either the
 14    license issued by the department to the farm labor  contractor  under  section
 15    44-1603,  Idaho  Code, or the department's representation that such contractor
 16    is licensed as required by this chapter.
                                                                        
 17        44-1612.  CLAIM FOR WAGES -- EXCLUSIVE REMEDY. A claim for unpaid wages by
 18    an employee of a farm labor contractor shall be treated as a claim  for  wages
 19    under chapter 6, title 45, Idaho Code.
                                                                        
 20        44-1613.  PRIVATE  RIGHT  OF  ACTION.  Except  as  provided for in section
 21    44-1612, Idaho Code, any person aggrieved by a violation of this  chapter  may
 22    bring  a  civil  action  in  a  court of competent jurisdiction for injunctive
 23    relief, damages or both. If the court finds that any person  violated  any  of
 24    the  provisions of this chapter, it shall award actual damages, plus an amount
 25    equal to treble the amount of actual damages, or one thousand dollars ($1,000)
 26    per violation, whichever is greater. The court shall also award  a  prevailing
 27    plaintiff  reasonable  attorney's fees and costs. No action under this section
 28    may be commenced later than two (2) years after the date of the violation giv-
 29    ing rise to the right of action.
                                                                        
 30        44-1614.  SERVICE OF PROCESS WHEN UNLICENSED CONTRACTOR IS UNAVAILABLE. In
 31    any action arising out of the activities of an unlicensed farm labor  contrac-
 32    tor  within this state who is not in the state or is otherwise unavailable for
 33    service of process in this state, the unlicensed farm labor contractor may  be
 34    served  by  mailing  a certified true copy of the summons and complaint to the
 35    director; the last-known address, if any, of the unlicensed  farm  labor  con-
 36    tractor; and any other address the use of which the plaintiff knows, or on the
 37    basis of reasonable inquiry, has reason to believe is most likely to result in
 38    actual notice.
                                                                        
 39        44-1615.  RETALIATION  PROHIBITED.  No farm labor contractor may discharge
 40    or in any other manner discriminate against an employee because that  employee
 41    made  a claim against the farm labor contractor pursuant to this chapter, tes-
 42    tified or is about to testify in any  proceedings  brought  pursuant  to  this
 43    chapter,  or  discussed  or  consulted  with  anyone concerning the employee's
 44    rights under this chapter.
                                                                        
 45        44-1616.  VIOLATIONS -- PENALTY. (1) Any person who intentionally defaces,
 46    alters or changes a farm labor contractor license, or who uses the license  of
 47    another, or who knowingly permits another person to use his license or acts as
 48    a  farm  labor  contractor without a license shall be guilty of a misdemeanor,
 49    punishable by a fine not to exceed one thousand dollars  ($1,000),  or  up  to
                                                                        
                                           9
                                                                        
  1    sixty  (60)  days  in jail or both. Each violation shall constitute a separate
  2    offense.
  3        (2)  Any person who violates any other provision of this chapter shall  be
  4    guilty of a misdemeanor, punishable by a fine not to exceed three hundred dol-
  5    lars  ($300),  or up to thirty (30) days in jail or both. Each violation shall
  6    constitute a separate offense.
                                                                        
  7        44-1617.  DEPARTMENT -- ADMINISTRATIVE RULES.  The  department  may  adopt
  8    rules reasonably necessary for the administration of this chapter.
                                                                        
  9        44-1618.  SEVERABILITY. The provisions of this chapter are hereby declared
 10    to be severable, and if any provision is declared void, invalid, or unenforce-
 11    able in whole or in part, such declaration shall not affect the remaining pro-
 12    visions of this chapter.
                                                                        
 13        SECTION  2.  This act shall be in full force and effect on and after Janu-
 14    ary 1, 2003.

Amendment


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                                     Moved by    Dunklin             
                                                                        
                                                     Seconded by Lodge               
                                                                        
                                                                        
                                       IN THE SENATE
                             SENATE AMENDMENT TO S.B. NO. 1289
                                                                        
  1                               AMENDMENTS TO SECTION 1
  2        On page 1 of the printed bill, in line 36,  following  "practices"  delete
  3    the  remainder  of  the  line, and in line 37, delete "tions"; and in line 39,
  4    following "market." insert: "This definition shall not include forestry,  lum-
  5    bering operations or logging contractors.".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                              SENATE BILL NO. 1289, As Amended
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LICENSING OF FARM LABOR  CONTRACTORS;  AMENDING  TITLE  44,  IDAHO
  3        CODE,  BY  THE ADDITION OF A NEW CHAPTER 16, TITLE 44, IDAHO CODE, TO PRO-
  4        VIDE DEFINITIONS, TO PROVIDE EXEMPTIONS, TO PROVIDE FOR LICENSING OF  FARM
  5        LABOR  CONTRACTORS, TO REQUIRE PROOF OF FINANCIAL RESPONSIBILITY, TO SPEC-
  6        IFY AN APPLICATION FEE AND TO PROVIDE FOR APPROPRIATION OF FEES COLLECTED,
  7        TO PROVIDE DUTIES OF THE DEPARTMENT WITH REGARD TO LICENSING AND TO  SPEC-
  8        IFY  CONDITIONS  OF  THE LICENSE, TO PROVIDE DUTIES OF THE FARM LABOR CON-
  9        TRACTOR, TO SPECIFY PROHIBITED ACTS, TO PROVIDE  FOR  DENIAL,  REVOCATION,
 10        SUSPENSION  AND REFUSAL TO RENEW A LICENSE, TO PROVIDE NOTICE OF DENIAL OF
 11        AN APPLICATION, REFUSAL TO RENEW A LICENSE, REVOCATION OR SUSPENSION OF  A
 12        LICENSE AND TO PROVIDE FOR A HEARING, TO PROVIDE FOR JOINT LIABILITY OF AN
 13        AGRICULTURAL  EMPLOYER AND AN UNLICENSED FARM LABOR CONTRACTOR, TO PROVIDE
 14        CLAIM FOR WAGES, TO PROVIDE FOR PRIVATE RIGHT OF ACTION, TO  PROVIDE  SER-
 15        VICE OF PROCESS WHEN UNLICENSED CONTRACTOR IS UNAVAILABLE, TO PROVIDE THAT
 16        RETALIATION IS PROHIBITED, TO PROVIDE VIOLATIONS AND PENALTIES, TO PROVIDE
 17        RULEMAKING  AUTHORITY TO THE DEPARTMENT OF LABOR AND TO PROVIDE SEVERABIL-
 18        ITY; AND PROVIDING AN EFFECTIVE DATE.
                                                                        
 19    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 20        SECTION 1.  That Title 44, Idaho Code, be, and the same is hereby  amended
 21    by  the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
 22    ter 16, Title 44, Idaho Code, and to read as follows:
                                                                        
 23                                      CHAPTER 16
 24                           FARM LABOR CONTRACTOR LICENSING
                                                                        
 25        44-1601.  DEFINITIONS. As used in this chapter:
 26        (1)  "Agricultural association" means any nonprofit or cooperative associ-
 27    ation of farmers, growers or ranchers, incorporated or qualified under  appli-
 28    cable state law.
 29        (2)  "Agricultural  employer"  means  any  person  engaged in any activity
 30    included within the definition of "agriculture" in subsection (3) of this sec-
 31    tion.
 32        (3)  "Agriculture" includes farming in all its branches and,  among  other
 33    things,  includes  the cultivation and tillage of the soil; dairying; the pro-
 34    duction, cultivation, growing and harvesting of any agricultural, aquacultural
 35    or horticultural commodities; the raising of livestock, bees, fur-bearing ani-
 36    mals or poultry; and any practices performed by a farmer or on a  farm  as  an
 37    incident  to or in conjunction with such farming operation, including prepara-
 38    tion for market, delivery to storage or to market or to carriers for transpor-
 39    tation to market. This definition shall not include forestry, lumbering opera-
 40    tions or logging contractors.
 41        (4)  "Department" means the department of labor of the state of Idaho.
 42        (5)  "Director" means the director of the department of labor.
                                                                        
                                           2
                                                                        
  1        (6)  "Farm labor contracting activity" means recruiting, soliciting,  hir-
  2    ing,  employing,  furnishing  or transporting any migrant or seasonal agricul-
  3    tural worker.
  4        (7)  "Farm labor contractor" means any person who, for any money or  other
  5    valuable  consideration  paid  or promised to be paid, performs any farm labor
  6    contracting activity.
  7        (8)  "Immediate family member" means the spouse, children,  brother,  sis-
  8    ter, mother or father.
  9        (9)  "Migrant  agricultural worker" means an individual who is employed in
 10    agricultural employment of a seasonal or temporary nature, and who is required
 11    to be absent overnight from his permanent place of residence. This  term  does
 12    not  include any immediate family member of an agricultural employer or a farm
 13    labor contractor.
 14        (10) "Person" means an individual, association, partnership, limited  lia-
 15    bility company, corporation or other business entity.
 16        (11) "Seasonal agricultural worker" means an individual who is employed in
 17    agricultural  employment of a seasonal or temporary nature and is not required
 18    to be absent overnight from his permanent place of residence. This  term  does
 19    not  include any immediate family member of an agricultural employer or a farm
 20    labor contractor.
                                                                        
 21        44-1602.  EXEMPTIONS. The provisions of this chapter shall  not  apply  to
 22    the following:
 23        (1)  An agricultural association engaged in farm labor contracting activi-
 24    ties exclusively for members of that association.
 25        (2)  Any  individual engaged in farm labor contracting for an agricultural
 26    operation owned or operated exclusively by such individual or a member of such
 27    individual's immediate family, if such activities are performed only for  such
 28    operation  and  exclusively  by such individual, but without regard to whether
 29    such individual has incorporated or otherwise organized for business purposes.
 30        (3)  Agricultural employers exchanging agricultural labor or services with
 31    each other, provided the work is performed on land  owned  or  leased  by  the
 32    agricultural employers.
 33        (4)  Any  common  carrier  that  would  be  a farm labor contractor solely
 34    because it is engaged in transporting any  migrant  or  seasonal  agricultural
 35    worker.  For  purposes  of  this  section,  a common carrier is one that holds
 36    itself out to the general public to engage in transportation of passengers for
 37    hire, whether over regular or irregular routes, and holds a valid  certificate
 38    or  authorization for such purpose from an appropriate local, state or federal
 39    agency.
 40        (5)  Any nonprofit charitable organization, public entity or private  non-
 41    profit educational institution.
 42        (6)  Any  employee of a person described in subsections (1) through (5) of
 43    this section when performing farm labor contracting activities exclusively for
 44    such person, unless the employee receives a commission or fee based  upon  the
 45    number of workers recruited.
                                                                        
 46        44-1603.  LICENSE -- APPLICATION -- CONTENTS. (1) Except as otherwise pro-
 47    vided, no person shall act as a farm labor contractor unless such person holds
 48    a valid license issued by the department.
 49        (2)  An  application  for a farm labor contractor's license shall be sworn
 50    to by the applicant and shall be submitted on a form prescribed by the depart-
 51    ment that shall require, but not be limited to, the following information  and
 52    documentation:
 53        (a)  The  applicant's name, Idaho address and all other temporary and per-
                                                                        
                                           3
                                                                        
  1        manent addresses the applicant uses or knows will be used in the future;
  2        (b)  Two (2) recent, passport sized, color photographs of  the  applicant,
  3        or  the  applicant's  authorized agent when the applicant is not a natural
  4        person;
  5        (c)  A statement by the applicant of all facts required by the  department
  6        concerning  the  applicant's  fitness,  competency,  and qualifications to
  7        engage in the business of farm labor contracting;
  8        (d)  A statement by the applicant of all facts required by the  department
  9        concerning  the  manner and method by which the applicant proposes to con-
 10        duct operations as a farm labor contractor;
 11        (e)  A certificate of insurance issued by the applicant's  auto  insurance
 12        carrier listing the department as the certificate holder and providing for
 13        a  thirty (30) day cancellation notice for all vehicles used in the opera-
 14        tion of the farm labor contracting business;
 15        (f)  A certificate  of  workers'  compensation  insurance  issued  by  the
 16        applicant's workers' compensation insurance carrier listing the department
 17        as the certificate holder and providing for a thirty (30) day cancellation
 18        notice;
 19        (g)  Whether   the  applicant  has  or  was  ever  granted  a  farm  labor
 20        contractor's license in any other jurisdiction;
 21        (h)  Whether the applicant was ever denied a  license  or  had  a  license
 22        revoked  or  suspended  under  the farm labor contractor laws of any other
 23        jurisdiction;
 24        (i)  The names  and  addresses  of  all  persons  financially  interested,
 25        whether  as  partners,  limited  liability  company members, shareholders,
 26        associates, or profit sharers in the applicant's proposed operation  as  a
 27        farm labor contractor, together with the amount of their respective inter-
 28        ests,  and  whether  or not, to the best of the applicant's knowledge, any
 29        such persons were ever denied a license or had a license revoked  or  sus-
 30        pended under the farm labor contractor laws of any jurisdiction; and
 31        (j)  The following declaration by the applicant, or the applicant's autho-
 32        rized  agent  when the applicant is not a natural person: "With regards to
 33        any action filed against the applicant concerning the applicant's  activi-
 34        ties  as  a  farm labor contractor, the applicant appoints the director of
 35        the Idaho Department of Labor as the applicant's lawful  agent  to  accept
 36        service  of  summons when the applicant is not present in the jurisdiction
 37        in which such action is commenced or have in any other way become unavail-
 38        able to accept service.".
                                                                        
 39        44-1604.  APPLICANT -- PROOF OF FINANCIAL  RESPONSIBILITY  --  PAYMENT  OF
 40    CLAIMS. (1) Each applicant shall submit with the application and shall contin-
 41    ually  maintain proof of financial responsibility to ensure the prompt payment
 42    of employees' wages pursuant to chapter 6, title 45, Idaho Code, and the  pay-
 43    ment of any claims awarded pursuant to section 44-1613, Idaho Code.
 44        (2)  Proof  of  financial  responsibility shall be in the form of a surety
 45    bond from a company licensed to do business in the state of Idaho. The  surety
 46    bond  shall  be  in  the  amount of ten thousand dollars ($10,000) if the farm
 47    labor contractor employs no more than twenty (20) employees, and thirty  thou-
 48    sand dollars ($30,000) if the contractor employs more than twenty (20) employ-
 49    ees.
 50        (3)  The  surety  bond  shall  be  for  the  benefit  of  the  farm  labor
 51    contractor's  employees  and shall be conditioned upon the payment of all sums
 52    legally owing to them.
 53        (4)  The  surety  bond  shall  be  executed  to  cover  the   farm   labor
 54    contractor's  liability for the period for which the license is issued, during
                                                                        
                                           4
                                                                        
  1    which time the bond cannot be canceled or otherwise terminated.
  2        (5)  All claims against the bond shall be unenforceable unless request for
  3    payment of a court judgment, or lien pursuant to section 45-620,  Idaho  Code,
  4    has  been  sent by certified mail to the surety. The surety company shall make
  5    prompt and periodic payments on the farm labor contractor's liability  to  the
  6    extent of the total amount of the bond.
  7        (6)  In  lieu of the surety bond required by this section, an applicant or
  8    farm labor contractor may deposit with the department cash or  other  security
  9    acceptable  to  the  director. The deposit shall not be less than ten thousand
 10    dollars ($10,000) if the farm labor contractor employs  no  more  than  twenty
 11    (20)  employees, and thirty thousand dollars ($30,000) if the farm labor  con-
 12    tractor employs more than twenty (20) employees. The security  deposited  with
 13    the  director  in  lieu of the surety bond shall be returned to the farm labor
 14    contractor  at  the  expiration  of  two  (2)  years  after  the  farm   labor
 15    contractor's  license  has  expired  or  been otherwise terminated, unless the
 16    director has received written notice that a legal or administrative action has
 17    been instituted against the farm labor contractor for failing to  comply  with
 18    the requirements of this chapter.
                                                                        
 19        44-1605.  APPLICATION  FEE  --  APPROPRIATION.  Each  application shall be
 20    accompanied by a nonrefundable fee of two hundred fifty  dollars  ($250).  All
 21    fees  collected  shall be continuously appropriated to the department and used
 22    for the administration of this chapter.
                                                                        
 23        44-1606.  DEPARTMENT -- LICENSING DUTIES -- LICENSE  --  TERM  --  RENEWAL
 24    FEE. (1) The department shall issue licenses to persons who are at least eigh-
 25    teen  (18) years of age and who have shown themselves to be fit, competent and
 26    qualified to engage in the business of farm labor contracting. Factors  to  be
 27    considered  by  the department in making this determination shall include, but
 28    not be limited to, the following:
 29        (a)  Whether an applicant  has  unsatisfied  judgments  or  administrative
 30        decisions requiring the payment of unpaid wages;
 31        (b)  Whether  an  applicant  has  worker's  compensation coverage for each
 32        employee;
 33        (c)  Whether an applicant has paid  unemployment  insurance  contributions
 34        when due;
 35        (d)  Whether  an  applicant  has violated any provision of this chapter or
 36        the rules adopted hereunder;
 37        (e)  Whether an applicant was ever denied  a  license  or  had  a  license
 38        revoked,  suspended or not renewed under the farm labor contractor laws of
 39        any jurisdiction;
 40        (f)  Whether an applicant has employed an agent who has had a  farm  labor
 41        contractor  license  denied,  suspended, revoked or not renewed or who has
 42        otherwise violated any provisions of this chapter  or  the  rules  adopted
 43        hereunder; and
 44        (g)  Whether  an applicant, when required by law, has failed or refused to
 45        seek food, water, shelter or medical attention, or to  provide  any  other
 46        goods  or  services  required for the safety and health of the applicant's
 47        employees.
 48        (2)  The industrial commission shall make records available to the depart-
 49    ment, including records that are otherwise exempt from disclosure  under  sec-
 50    tion  9-340B, Idaho Code, for the purpose of determining an applicant's quali-
 51    fications under subsection (1)(b) of this  section.  Records  disclosed  under
 52    this subsection shall not be further disclosed by the department.
 53        (3)  The  department  shall  issue  a license within fifteen (15) business
                                                                        
                                           5
                                                                        
  1    days of receipt of a completed application if the  department  determines  the
  2    applicant to be fit, competent and qualified to engage in the business of farm
  3    labor  contracting. An application shall be deemed completed when all required
  4    information and documentation has been submitted to the department.
  5        (4)  The license shall not be transferable or assignable.
  6        (5)  The first year of licensing shall run from April 1st to the following
  7    March 31st and each license shall expire on March 31st following the  date  of
  8    its  issuance unless sooner revoked or otherwise terminated by the department.
  9    Beginning January 1, 2004, the licensing year shall run from  January  1st  to
 10    the  following  December  31st  and each license shall expire on December 31st
 11    following the date of its issuance unless sooner revoked or  otherwise  termi-
 12    nated by the department.
 13        (6)  A license may be renewed annually upon payment of a nonrefundable fee
 14    of two hundred fifty dollars ($250) and by providing the following:
 15        (a)  Proof  of  financial  responsibility  as required by section 44-1604,
 16        Idaho Code;
 17        (b)  A certificate of insurance  as  required  by  section  44-1603(2)(e),
 18        Idaho Code; and
 19        (c)  A  certificate  of  insurance  as  required by section 44-1603(2)(f),
 20        Idaho Code.
 21    The department may require any person seeking renewal to file a  new  applica-
 22    tion  showing  the  person  to  be fit, competent and qualified to continue to
 23    engage in the business of farm labor contracting.
 24        (7)  The department shall maintain a central public registry of  all  per-
 25    sons issued a farm labor contractor's license.
                                                                        
 26        44-1607.  FARM LABOR CONTRACTOR -- DUTIES. A farm labor contractor shall:
 27        (1)  Carry his farm labor contractor license at all times and exhibit such
 28    license  upon request to anyone with whom the farm labor contractor intends to
 29    deal in his capacity as a farm labor contractor.
 30        (2)  File immediately at the United States post office  serving  the  farm
 31    labor contractor's address as noted on the license a correct change of address
 32    and notify the department each time an address change is made.
 33        (3)  Pay or distribute promptly when due to the persons entitled all money
 34    or  other things of value entrusted to the farm labor contractor for that pur-
 35    pose.
 36        (4)  Comply with the terms and provisions of all agreements  or  contracts
 37    entered into by the farm labor contractor.
 38        (5)  Comply with all applicable state laws and rules.
 39        (6)  Provide to the department certified copies of payroll records for any
 40    payment period requested by the department.
 41        (7)  Provide  to  each  employee at the time of hiring, recruiting, solic-
 42    iting or supplying such employee, whichever occurs first, a written  statement
 43    in  English or, as necessary and reasonable, in Spanish or other language com-
 44    mon to agricultural workers who are not fluent or literate  in  English,  that
 45    contains a description of:
 46        (a)  The rate of compensation and the method of computing the rate of com-
 47        pensation;
 48        (b)  The  terms  and  conditions  of  employment,  including  the name and
 49        address of the farm labor contractor, the place of employment, the approx-
 50        imate length of the period of employment and the approximate starting  and
 51        ending dates;
 52        (c)  The  terms  and  conditions  of  any  bonus offered and the manner of
 53        determining when the bonus is earned;
 54        (d)  The terms and conditions of any loan made to the employee;
                                                                        
                                           6
                                                                        
  1        (e)  The terms and conditions of any housing,  transportation,  equipment,
  2        health  care, day care or any other employee benefit to be provided by the
  3        farm labor contractor or the farm labor contractor's agent, and the  costs
  4        to be charged for each item;
  5        (f)  The  name  and  address  of the surety on the farm labor contractor's
  6        bond;
  7        (g)  The employee's rights and remedies, including an employee's right  to
  8        make a claim against the farm labor contractor's surety bond.
  9        (8)  Provide  to  the employee each time the employee receives a compensa-
 10    tion payment from the farm labor contractor a written statement itemizing  the
 11    total  payment,  the amount and purpose of each deduction therefrom, the hours
 12    worked and, if the work was done on a piece basis, the number of  pieces  com-
 13    pleted.
 14        (9)  For  each  employee  make,  keep and preserve for three (3) years the
 15    following information:
 16        (a)  The basis on which wages were paid;
 17        (b)  The number of piecework units earned, if paid on a piecework basis;
 18        (c)  The number of hours worked;
 19        (d)  The total pay period earnings;
 20        (e)  The specific sums withheld and the reason for withholding each sum;
 21        (f)  The net pay; and
 22        (g)  The name and address of the owner of all operations, or  the  owner's
 23        agent, where the employee worked.
                                                                        
 24        44-1608.  FARM  LABOR  CONTRACTOR  --  APPLICANT FOR LICENSE -- PROHIBITED
 25    ACTS. A farm labor contractor or an applicant for a  farm  labor  contractor's
 26    license shall not:
 27        (1)  Make  misrepresentations or false statements on the application for a
 28    license.
 29        (2)  Make or cause to be made, to any person,  any  false,  fraudulent  or
 30    misleading representation, or publish or circulate or cause to be published or
 31    circulated  any  false,  fraudulent  or  misleading information concerning the
 32    terms, conditions or existence of any employment.
 33        (3)  Solicit, induce or cause to be solicited or induced the violation  of
 34    an existing contract of employment.
 35        (4)  Violate, or assist another person to violate the requirements of this
 36    chapter.
 37        (5)  By  any  force, intimidation, or threat, including threat of deporta-
 38    tion, induce any employee of the farm labor contractor to give up any part  of
 39    the compensation to which the employee is entitled under federal or state wage
 40    payment laws.
                                                                        
 41        44-1609.  LICENSE -- DENIAL, REVOCATION, SUSPENSION, REFUSAL TO RENEW. (1)
 42    The  department may deny, revoke, suspend or refuse to renew a farm labor con-
 43    tractor license when:
 44        (a)  The applicant or licensee, or the agent of the applicant or licensee,
 45        has had his farm labor contractor's  license  denied  or  revoked  in  any
 46        jurisdiction within three (3) years of the date of application;
 47        (b)  The  licensee  or his agent has violated or failed to comply with any
 48        provision of this chapter or the rules promulgated hereunder;
 49        (c)  The applicant or licensee has an unsatisfied court judgment or  final
 50        administrative decision against him for unpaid wages;
 51        (d)  The  applicant or licensee made false or misleading statements on, or
 52        provided false or misleading  information  with,  his  application  for  a
 53        license;
                                                                        
                                           7
                                                                        
  1        (e)  The  applicant  or  licensee  fails  to  maintain  proof of financial
  2        responsibility as required by section 44-1604, Idaho Code;
  3        (f)  The applicant  or  licensee  fails  to  provide,  or  the  department
  4        receives  notice of cancellation of any certificates of insurance required
  5        by section 44-1603, Idaho Code;
  6        (g)  The applicant or licensee fails to pay unemployment insurance contri-
  7        butions when due; or
  8        (h)  The applicant or licensee, when required by law, fails or refuses  to
  9        seek  food,  water,  shelter or medical attention, or to provide any other
 10        goods or services required for the safety and health of his employees.
 11        (2)  Before the department denies, revokes, suspends or refuses to renew a
 12    license, the applicant or licensee shall be given written notice of  the  rea-
 13    sons for the licensing action and an opportunity for a hearing.
                                                                        
 14        44-1610.  ACTION  AGAINST LICENSE -- HEARING. (1)  The contested case pro-
 15    visions of the Idaho administrative procedure act, chapter 52, title 67, Idaho
 16    Code, shall not apply to licensing actions under this chapter.
 17        (2)  When it appears, pursuant to section 44-1609, Idaho Code, that suffi-
 18    cient cause exists for the denial of any application for,  the  revocation  or
 19    suspension  of,  or refusal to renew any license required by this chapter, the
 20    department shall serve notice, in the manner provided for in subsection (7) of
 21    this section, to the applicant or license holder stating the proposed  adverse
 22    action  to  be  taken, the grounds on which such action is based, and that the
 23    department's proposed action shall become final unless, within ten (10) calen-
 24    dar days of the date of mailing of the notice, the aggrieved party files  with
 25    the department a written request for a hearing.
 26        (3)  A written request for a hearing may be filed by personal delivery, by
 27    mail,  or by fax to the wage and hour section of the department at the address
 28    indicated on the notice. The date of personal delivery shall be noted  on  the
 29    request and shall be deemed the date of filing. If mailed, the hearing request
 30    shall  be deemed to be filed on the date of mailing as determined by the post-
 31    mark. A faxed request that is received by the wage and hour  section  by  5:00
 32    p.m.  on  a  business  day shall be deemed filed on that date. A faxed request
 33    that is received by the wage and hour section on a weekend, holiday  or  after
 34    5:00 p.m. on a business day shall be deemed filed on the next business day.
 35        (4)  Reasonable  notice  of  the hearing, containing the date, time, place
 36    and purpose of the hearing, shall be served on all parties to the  hearing  in
 37    the manner provided for in subsection (7) of this section.
 38        (5)  The  hearing shall be conducted by an employee of the department des-
 39    ignated by the director to be the hearing officer, who shall not be  bound  by
 40    statutory  rules  of  evidence or by technical or formal rules of procedure. A
 41    record shall be made of the sworn testimony. Every  party  to  the  proceeding
 42    shall have the right to counsel at their own expense and a full opportunity to
 43    be  heard, including such cross-examination as may be appropriate. The hearing
 44    officer, as soon after the conclusion of the hearing as possible, on the basis
 45    of the record made at the hearing, shall issue a decision and serve it on  all
 46    parties  to  the  hearing in the manner provided for in subsection (7) of this
 47    section.
 48        (6)  The decision of the hearing officer shall be a final agency order and
 49    shall be effective on the date it is issued,  subject  only  to  the  judicial
 50    review provisions of chapter 52, title 67, Idaho Code.
 51        (7)  Any  notice  or  decision  required  by  this section shall be deemed
 52    served if delivered to the person being served or if mailed to his last  known
 53    address. Service by mail shall be deemed completed on the date of mailing. The
 54    date  indicated  on  the  notice or decision as the "date of mailing" shall be
                                                                        
                                           8
                                                                        
  1    presumed to be the date the document was deposited in the United States  mail,
  2    unless otherwise shown by a preponderance of competent evidence.
                                                                        
  3        44-1611.  JOINT  LIABILITY.  (1)  If  an agricultural employer uses a farm
  4    labor contractor who is properly licensed and bonded under the  provisions  of
  5    this  chapter,  that  agricultural employer shall not be jointly and severally
  6    liable for any unpaid wages determined to be due and owing pursuant to chapter
  7    6, title 45, Idaho Code, to any employee of the farm labor contractor who per-
  8    formed work for that agricultural employer.
  9        (2)  An agricultural employer who knowingly uses the services of an  unli-
 10    censed  farm  labor  contractor  shall be jointly and severally liable for any
 11    unpaid wages determined to be due and owing pursuant to chapter 6,  title  45,
 12    Idaho  Code,  to any employee of the unlicensed farm labor contractor who per-
 13    formed work for that agricultural employer.  In  making  determinations  under
 14    this  section,  any  user  of a farm labor contractor may rely upon either the
 15    license issued by the department to the farm labor  contractor  under  section
 16    44-1603,  Idaho  Code, or the department's representation that such contractor
 17    is licensed as required by this chapter.
                                                                        
 18        44-1612.  CLAIM FOR WAGES -- EXCLUSIVE REMEDY. A claim for unpaid wages by
 19    an employee of a farm labor contractor shall be treated as a claim  for  wages
 20    under chapter 6, title 45, Idaho Code.
                                                                        
 21        44-1613.  PRIVATE  RIGHT  OF  ACTION.  Except  as  provided for in section
 22    44-1612, Idaho Code, any person aggrieved by a violation of this  chapter  may
 23    bring  a  civil  action  in  a  court of competent jurisdiction for injunctive
 24    relief, damages or both. If the court finds that any person  violated  any  of
 25    the  provisions of this chapter, it shall award actual damages, plus an amount
 26    equal to treble the amount of actual damages, or one thousand dollars ($1,000)
 27    per violation, whichever is greater. The court shall also award  a  prevailing
 28    plaintiff  reasonable  attorney's fees and costs. No action under this section
 29    may be commenced later than two (2) years after the date of the violation giv-
 30    ing rise to the right of action.
                                                                        
 31        44-1614.  SERVICE OF PROCESS WHEN UNLICENSED CONTRACTOR IS UNAVAILABLE. In
 32    any action arising out of the activities of an unlicensed farm labor  contrac-
 33    tor  within this state who is not in the state or is otherwise unavailable for
 34    service of process in this state, the unlicensed farm labor contractor may  be
 35    served  by  mailing  a certified true copy of the summons and complaint to the
 36    director; the last-known address, if any, of the unlicensed  farm  labor  con-
 37    tractor; and any other address the use of which the plaintiff knows, or on the
 38    basis of reasonable inquiry, has reason to believe is most likely to result in
 39    actual notice.
                                                                        
 40        44-1615.  RETALIATION  PROHIBITED.  No farm labor contractor may discharge
 41    or in any other manner discriminate against an employee because that  employee
 42    made  a claim against the farm labor contractor pursuant to this chapter, tes-
 43    tified or is about to testify in any  proceedings  brought  pursuant  to  this
 44    chapter,  or  discussed  or  consulted  with  anyone concerning the employee's
 45    rights under this chapter.
                                                                        
 46        44-1616.  VIOLATIONS -- PENALTY. (1) Any person who intentionally defaces,
 47    alters or changes a farm labor contractor license, or who uses the license  of
 48    another, or who knowingly permits another person to use his license or acts as
 49    a  farm  labor  contractor without a license shall be guilty of a misdemeanor,
                                                                        
                                           9
                                                                        
  1    punishable by a fine not to exceed one thousand dollars  ($1,000),  or  up  to
  2    sixty  (60)  days  in jail or both. Each violation shall constitute a separate
  3    offense.
  4        (2)  Any person who violates any other provision of this chapter shall  be
  5    guilty of a misdemeanor, punishable by a fine not to exceed three hundred dol-
  6    lars  ($300),  or up to thirty (30) days in jail or both. Each violation shall
  7    constitute a separate offense.
                                                                        
  8        44-1617.  DEPARTMENT -- ADMINISTRATIVE RULES.  The  department  may  adopt
  9    rules reasonably necessary for the administration of this chapter.
                                                                        
 10        44-1618.  SEVERABILITY. The provisions of this chapter are hereby declared
 11    to be severable, and if any provision is declared void, invalid, or unenforce-
 12    able in whole or in part, such declaration shall not affect the remaining pro-
 13    visions of this chapter.
                                                                        
 14        SECTION  2.  This act shall be in full force and effect on and after Janu-
 15    ary 1, 2003.

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE
                          RS 11604C1

This legislation requires persons performing farm labor contracting 
activities in the State of Idaho to be licensed by the State and pay 
an annual licensing fee. It requires that licensed farm labor 
contractors post a surety bond to cover unpaid wages; carry auto 
insurance for all vehicles used in the farm labor contractor's 
business; carry workers' compensation coverage for all employees; 
and provide all employees when hired full disclosure about the rate 
of pay, benefits to be furnished, and all expenses that may be 
deducted from an employee's wages.

This legislation also provides a benefit to both farmers and farm 
labor contractors. It provides that farmers who use licensed farm 
labor contractors will not be considered a joint employer of the farm 
labor contractor's employees. This incentive for farmers to use 
licensed farm labor contractors should increase business 
opportunities for licensed contractors while reducing unfair 
competition from unlicensed contractors.

This legislation will not be effective until January 1, 2003. 
 
                          FISCAL IMPACT

The State Department of Labor estimates it will need one FTE to 
cover the duties that will be required by this legislation. The 
fiscal impact to state General Fund revenues is estimated to be 
$65,900 per year. Of this amount, 70% or $46,130 will be for personal 
services and 30% or $19,770 will be for operating expenses.

The Department will be charging an annual licensing fee of $250.

Because this legislation is not implemented until January 1,2003, the 
cost for FY 2003 will be $32,950 ($23,065 for personal services and 
$9,885 for operating expenses). Of this amount, $23,065 for personal
services will come from General Fund revenues. The $9,885 for 
operating expenses will include $7,385 from General Fund revenues 
and $2,500 from licensing fees, which are dedicated funds.


Contact
Name: Dwight Johnson, Department of Labor 
Phone: 208/332-3570 ext. 3209




STATEMENT OF PURPOSE/FISCAL NOTE                S 1289