71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 2222
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Commissioner Jack Roberts
for Bureau of Labor and Industries)
CHAPTER ................
AN ACT
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
Enrolled House Bill 2222 (HB 2222-A) Page 1
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
Enrolled House Bill 2222 (HB 2222-A) Page 2
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. + }
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Passed by House April 6, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 4, 2001
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President of Senate
Enrolled House Bill 2222 (HB 2222-A) Page 3
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
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Governor
Filed in Office of Secretary of State:
......M.,............., 2001
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Secretary of State
Enrolled House Bill 2222 (HB 2222-A) Page 4