Chapter 178 Oregon Laws 2001

AN ACT

HB 2222

Relating to farm labor contractor licenses for private nonprofit corporations; amending ORS 658.410 and 658.419; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 658.410 is amended to read:

658.410. (1) Except as provided by ORS 658.425 and subsection (3) of this section, [no] a person [shall] may not act as a farm labor contractor without a valid license in the person’s possession issued to the person by the Commissioner of the Bureau of Labor and Industries. Except as provided in subsection (3) of this section, [no] a person [shall] may not act as a farm labor contractor with regard to the forestation or reforestation of lands unless the person possesses a valid farm labor contractor’s license with the indorsement required by ORS 658.417 (1). The Bureau of Labor and Industries shall make rules for the issuance of duplicate licenses in the event of the loss or destruction of original licenses.

(2) Farm labor contractor licenses may be issued by the commissioner only as follows:

(a) To a natural person operating as a sole proprietor under the person’s own name or under an assumed business name registered with the Office of Secretary of State.

(b) To two or more natural persons operating as a partnership or as a limited liability partnership under their own names or under an assumed business name registered with the Office of Secretary of State.

(c) Except as provided in subsection (3) of this section, to the majority shareholder or majority shareholders of a corporation or a limited liability company that is licensed to operate as a farm labor contractor.

(d) Except as provided in subsection (3) of this section, to a corporation or a limited liability company whose majority shareholder or majority shareholders are also licensed to operate as a farm labor contractor and that is authorized to do business in Oregon by the Office of Secretary of State.

(e) To a cooperative corporation authorized to do business in Oregon by the Office of Secretary of State.

(f) To a private nonprofit corporation authorized to do business in Oregon by the Office of Secretary of State and designated by the Internal Revenue Service as exempt under section 501(c)(3) of the Internal Revenue Code, provided:

[(A) The purpose of the corporation is to provide education or training;]

[(B) the corporation is designated by the Internal Revenue Service as exempt under section 501(c)(3) of the Internal Revenue Code; and]

[(C) The workers recruited, solicited, supplied or employed by the corporation to engage in the forestation or reforestation of lands or in the production or harvesting of farm products are recruited, solicited, supplied or employed only for the purpose of educating or training the workers.]

(A)(i) The purpose of the corporation is to provide education or training; and

(ii) Workers recruited, solicited, supplied or employed by the corporation are recruited, solicited, supplied or employed only for the purpose of educating or training the workers in the forestation or reforestation of lands or in the production or harvesting of farm products; or

(B) For at least five years before the corporation files an application for a farm labor contractor license, the corporation has been:

(i) Authorized to do business in Oregon by the Office of Secretary of State;

(ii) Primarily engaged in recruiting, soliciting, supplying or employing workers; and

(iii) Designated by the Internal Revenue Service as exempt under section 501(c)(3) of the Internal Revenue Code.

(g) To an agricultural association that is authorized to do business in Oregon by the Office of Secretary of State.

(3) The majority shareholder or majority shareholders of a corporation or limited liability company are not required to be licensed under this section if the corporation or limited liability company:

(a)(A) Publicly trades its shares of stock on a stock exchange regulated by the United States Securities and Exchange Commission; or

(B) Has 10 or more shareholders and demonstrates to the satisfaction of the commissioner that the corporation or limited liability company is adequately capitalized; and

(b) Is authorized to do business in Oregon by the Office of Secretary of State.

SECTION 2. ORS 658.419 is amended to read:

658.419. (1) Notwithstanding the provisions of ORS 658.415 (3), (4), (8), (9) and (16), an agricultural association or a private nonprofit corporation described in ORS 658.410 (2)(f)(B) shall submit with the application for a license to act as a farm labor contractor and shall continually maintain thereafter, until excused, a corporate surety bond of a company licensed to do such business in Oregon, a cash deposit or a deposit the equivalent of cash, in a form approved by and payable to the Commissioner of the Bureau of Labor and Industries, in the amount of $30,000.

(2) Any person who suffers any loss of wages from the employer of the person or any other loss due to activities of the agricultural association or the private nonprofit corporation as a farm labor contractor shall have a right of action against the surety upon the bond or against the deposit with the commissioner. The right of action is assignable and may not be included in any action against the agricultural association or the private nonprofit corporation but shall be exercised independently after first procuring adequate proof of liability as provided by the commissioner by rule.

(3) The surety company or the commissioner shall make prompt and periodic payments on the agricultural association’s or the private nonprofit corporation’s liability up to the extent of the total sum of the bond or deposit. Payments shall be made in the following manner:

(a) Payment based upon priority of wage claims over other liabilities;

(b) Payment in full of all sums due to each person who presents adequate proof of the claim; and

(c) If there are insufficient funds to pay in full the person next entitled to payment in full, payment in part to the person.

SECTION 3. This 2001 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2001 Act takes effect on its passage.

Approved by the Governor May 24, 2001

Filed in the office of Secretary of State May 24, 2001

Effective date May 24, 2001

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