California AB 2227: Local agency formation.

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 Bill Text - AB-2227 Farm labor contractors: surety bonds.

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 |Add To My Favorites |Track Bill | Version: 06/15/26 - Amended Senate
 05/18/26 - Amended Assembly
 04/09/26 - Amended Assembly
 02/19/26 - Introduced

 AB-2227 Farm labor contractors: surety bonds.(2025-2026)

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 Date Published: 06/15/2026 09:00 PM

AB2227:v96#DOCUMENTBill Start

 Amended
 IN 
 Senate
 June 15, 2026

 Amended
 IN 
 Assembly
 May 18, 2026

 Amended
 IN 
 Assembly
 April 09, 2026

 CALIFORNIA LEGISLATURE—
 2025–2026 REGULAR SESSION

 Assembly Bill

No. 2227

Introduced by Assembly Member Connolly
(Coauthor: (Coauthors: Assembly Member Kalra) Members Elhawary and Kalra)

February 19, 2026

 An act to amend Section 1684 of, and to add Section 1697.25 to, of the Labor Code, relating to farm labor contractors. 

LEGISLATIVE COUNSEL'S DIGEST

AB 2227, as amended, Connolly.
 Farm labor contractors. contractors: surety bonds.

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.

Existing law requires an applicant for the issuance or renewal of a farm labor contractor license to have 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. 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.

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. for all employees. Specifically, the bill would require, for gross receipts up to $500,000, a $50,000 bond, for gross receipts of $500,000 to $2,000,000, a $100,000 bond, and for gross receipts greater than $2,000,000, a $150,000 bond. 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. The bill would require the Labor Commissioner to, among other things, include bond information on the public farm labor contractor license database, as described.

Existing law authorizes the Labor Commissioner to investigate employee complaints and to provide for a hearing in any action to recover wages, penalties, and other demands for compensation. Existing law sets forth various timelines, including for a defendant to answer a complaint, for the Labor Commissioner to file a copy of the order, decision, or award, and for parties to file an appeal.

If a grower, a farm labor contractor, or person acting in the capacity
 of a farm labor contractor fails to appear or answer within the time allowed after a complaint is filed, as described above, this bill would require the Labor Commissioner to issue an order, decision, or award in the amount stated in the notice, as specified. The bill would authorize the order, decision, or award to be appealed, as specified.

Digest Key

 Vote:
 MAJORITY 
 Appropriation:
 NO 
 Fiscal Committee:
 YES 
 Local Program:
 NO 

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 1684 of the Labor Code is amended to read:

1684.

 (a) The Labor Commissioner shall not issue to any person a license to act as a farm labor contractor, nor shall the La