E-Verify & Immigration Reform

1. E-Verify & Immigration Reform Presented to the FCM Board of Directors By Mike Sparks October 18, 2011

2. Florida Citrus Mutual’s Existing Position on Labor • “Ensure Florida citrus growers have a legal, reliable workforce.” • H-2A Program available but improvments needed • Existing I-9 Program utilizes “Alternative Labor” • A mandatory E-Verify Program would eliminate the existing I-9 Program and would challenge Florida agriculture and Florida citrus industry.

3. FCM Staff Mike Sparks Casey Welch Melanie Burns Andrew Meadows Drew Love Florida Partners FDACS FCM FFBF FFVA FNGLA Governor Rick Scott Florida Chamber of Commerce Immigration Coalition Federal Coalitions NCAE (National Coalition of Agricultural Employers) ACIR (Agricultural Coalition for Immigration Reform) USA Farmers Washington, D.C. Akin Gump Rep. Dennis Ross Sen. Bill Nelson FCM Resources to Address the Labor/E-Verfiy/Immigration Reform

4. E-Verify & Immigration Reform – H-2A Program • What is H-2A • The H-2A temporary agricultural program establishes a means for agricultural employers who anticipate a shortage of domestic workers to bring nonimmigrant foreign workers to the U.S. to perform agricultural labor or services of a temporary nature. • According to the State of Florida, Department of Economic Opportunity there has been a 20% increase in H-2A applications for the 2011-12 season • Existing users asking for additional workers • New H-2A users starting this year • The reason for an increase in usage this season has been due to the lack of labor last year, which was in part, due to the scare of mandatory E-Verify. • FCM estimates 30% of Florida’s citrus harvesting is performed by H-2A workers.

5. The Existing H-2A Program is Not Perfect • Meeting Growers’ Needs: • 47% of employers were “not at all satisfied” or only “slightly satisfied” with the H-2A Program. • Growers who do not plan to use the program in 2012 (42%) will not participate because it is “too administratively burdensome or costly” • Costly Program to Utilize • Employers of the H-2A Program must pay the highest of the following: • Federal Minimum Wage - $7.25 • Florida Minimum Wage - $7.31 as of June • AEWR – Adverse Effect Wage Rate - $9.50 for Florida Source: NCAE 2010 Survey

6. The Existing H-2A Program is Not Perfect • Timeliness of Receiving Workers • Denials of H-2A applications have increased dramatically • Excessive deficiency notices and requests for evidence cause serious delays – even though 58% of these deficiencies are small errors and inconsistencies in the application. • 72% of growers reported that workers arrived after the “date of need,” on average 22 days late. • The number of appeals of denials has reached historic levels • 2009 – under 100 appeals • 2011 – between 400 and 500 appeals to date (with majority of these being overturned) Source: NCAE 2010 Survey

7. The Existing H-2A Program is Not Perfect • U.S. Workers will not accept ag jobs • United States Dept. of Economic Opportunity referred 36,000 domestic workers to H-2A employers • Only 5% worked through the contract period • 68% did not accept a job • 20% began work but did not finish the contract • 7% accepted job but did not begin work • Increased Wage & Hour investigations • 8% of employers report they were audited before they participated in the H-2A Program • 35% report being audited since entering the Program Source: NCAE 2010 Survey

8. FCM’s Ability to Influence the Existing H-2A Program • Program Elements • Change AEWR ($9.50/hr) to prevailing rate • Class action lawsuits • Little or no chance to influence the current Administration, Program elements must have a legislative fix • Administrative Elements • Recruiting time • Application review • Application denials • Leverage our relationships with: • Rep. Dennis Ross (R-FL) • Sen. Bill Nelson (D-FL) • Hold an H-2A Summit in Washington D.C. • Adm. Dr. William Carlson, DOL • Identify an FCM Staffer to assist in member applications

9. Immigration/Labor Reform • Improvements to the H-2A Program needed • Federal Legislation • E-Verify and new worker program legislation is a “Mixed Bag” • State Legislation • Individual State approaches to solve the Federal issue is not the answer

10. What is E-Verify • E-Verify is a free Internet-based system operated by the Dept. of Homeland Security in partnership with the Social Security Administration that allows participating employers to electronically verify the employment authorization of their newly hired employees through the employee’s social security number. • E-Verify does not replace the legal requirement to complete and retain Form I-9, Employment Eligibility Verification. E-Verify verifies the employment authorizaiton of new hires based on the information provided on Form I-9.

11. E-Verify is Misunderstood by the Public • The Legal Workforce Act could open up millions of jobs for unemployed Americans by requiring all U.S. workers to use E-Verify. • Right now it takes an un-employed U.S. worker about nine months to find a job. E-Verify can open up a job in two minutes. • Critics of E-Verify oppose implementation of the system for one-reason – it works. Opponents are putting the interests of illegal workers ahead of U.S. workers. Sources: Rep. Lamar Smith (R-TX), Chairman of the House Judiciary Committee; Numerous News Reports

12. Mandatory E-Verify Bills: H.R. 2165, the Legal Workforce Act – passed by the House Judiciary Committee S. 1196, the Accountability Through Electronic Verficiation Act No H-2A improvements No Ag Exemptions nor phase-in H-2A Reform Bills: H.R. 2847, the America Specialty Agriculture Act H.R. 2895, the Legal Agricultural Workforce Act S. 1384, the ‘Harvest Act’ Helping Agriculture Receive Verifiable Employees Securely and Temporarily Act of 2011 Federal Legislation

13. Federal Legislation • H.R. 2164, the Legal Workforce Act • On June 14, 2011, House Judiciary Committee Chairman, Lamar Smith (R-TX), introduced H.R. 2164, the Legal Workforce Act. It includes mandatory E-Verify legislation. • The bill had sixty-two co-sponsors. • A mark-up was held, the Berman Amendment passed which struck any agriculture-friendly language. • No three-year phase-in • No new Ag Worker Program • No improvements to H-2A • No timetable as to when the full House will consider.

14. HR 2847 – the American Specialty Agriculture Act Rep. Lamar Smith (R-TX) Replace H-2A Program Capped at 500,000 Pay prevailing wage rate not AEWR Housing voucher More difficult for legal aid to sue USA Farmers & exisiting H-2A participants “somewhat supportive” HR 2895 – the Legal Agricultural Workforce Act Rep. Dan Lungren (R-CA) Worker portability Eliminates H-2A New program administered by USDA Workers admitted to US to work 10 months only American Farm Bureau, ACIR appear to be “somewhat supportive” Federal Legislation: H-2A Reform Bills HR 2164 generated grave concerns from small businesses and tourism, but most importantly from UNITED STATES AGRICULTURE. Most agree agriculture’s needs must be addressed.

15. Federal Legislation: Senate • No Committee actions by the Senate • US Sen. Chambliss (R-GA) has proposed SB 1384 Harvest Act • Would remedy long-standing problems with the H-2A Program • Provides a waiver to allow those illegally present in the U.S. to participate in the H-2A Program • Participants not eligible for citizenship • Bill has no co-sponsors • US Sen. Feinstein (D-CA) indicated that she will introduce a version of her “Emergency Act” that would provide for a five-year pilot program for current workers and H-2A reforms. This Act would: • Grant temporary, limited immigration status for experienced farm workers who would be required to continue to work in US agriculture for the next five years; • Reforms and streamlines the H-2A program; • Temporary Emergency Agricultural program capped at 1.35 million workers; • Freezes wages at the 2007 level for three years while a new fair wage standard is studied.

16. Federal Legislation Summary:“A Mixed Bag” • Mandatory E-Verification passed the Judiciary Committee with NO agriculture exceptions on June 15, 2011 • No timetable on when the full House will consider • Much more work needed (an independent House bill to supplement HR 2162) to address agriculture’s needs and concerns • Senate not likely to accept the House language nor advance Senate bill this Congress • If a legislative bill passes House & Senate, the President not likely to sign this year

17. State Legislation: E-Verify • Last year, a bill sponsored by Rep. William Snyder, R-Stuart, mandating E-Verify for all Florida employers passed in a House Committee during the 2011 session before a similar measure died in the Senate thanks in large part, to the efforts of Sen. JD Alexander. • This year, the E-Verify effort will return in the FL Legislature. Florida Citrus Mutual continues to work with Com. of Ag Adam Putnam and with other major agricultural organizations, including the Florida Farm Bureau and the Florida Fruit and Vegetable Assn., as well as the Florida Chamber of Commerce and Associated Industries of Florida. • Florida Chamber – Immigration Committee has conducted focus group interviews on E-Verification • Mutual has met with about a dozen Legislators during the summer, at times with Indian River Citrus League, to discuss agriculture’s unique labor needs. We have been received fairly well.

18. State Legislation: E-Verify • It appears that there is not the appetite for FL legislative leadership to pass a comprehensive E-Verification program. • Recognizing there will be no federal fix to the immigration labor issue by the start of the 2012 State legislative session, the State of Florida Mandated E-Verification Program could be a legislative threat. Although not likely, the worst case scenario could include an E-Verify Program effective July 1, 2012. • Governor Rick Scott, October 12, at the FCM Crop Estimate Breakfast stated he would “sign no legislation that would hurt agriculture.” • Next year, 2013, we can expect a “new wave” of legislation from newly elected legislators.

19. E-Verificaiton & Immigration ReformsConclusion • Florida Citrus Mutual must stay engaged. • Utilize existing coalitions and partnerships. • Pursue a Federal Legislative Fix. • Work to Improve the H-2A Program. • Administrative Issues • Program Improvement • Avoid a State of Florida remedy.