(No ) (Approved March 30, 2011) AN ACT

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1 (S. B. 1038) (No ) (Approved March 30, 2011) AN ACT To create the Manos Pal Campo Act, which shall establish the public policy of the Government of Puerto Rico on the need for local and imported workforce to carry out the tasks related to coffee harvesting; establish coordination between the Department of Labor and Human Resources and the Department of Agriculture, and obtain their endorsement to recommend the import of foreign workforce in an orderly and lawful manner; and establish controls to protect the opportunities of the local workforce. STATEMENT OF MOTIVES Coffee is an important source of income and employment for 250,000 residents of 21 municipalities in the coffee-growing zone. According to the Agricultural Census of 2002, the coffee industry included 9,805 farms comprising 57,549 cuerdas of crops. Five years later, the Agricultural Census of 2007 revealed a total of 5,885 farms comprising 38,535 cuerdas of crops. Coffee was harvested in 55.5% of all farms in Puerto Rico. In 2004, the Department of Agriculture of Puerto Rico (DAPR) reported the existence of 114 coffee beneficiaries/buyers, 31 roasters, and 13,200 pickers. By 2007, those numbers had decreased to some 80 coffee beneficiaries/buyers, the number of roasters remained unchanged, and the number of coffee pickers had decreased to approximately 10,000 annually. Coffee harvesting generates indirect income and employments through the purchase of supplies for production and the manufacturing and marketing stages. The multiplying effect of a dollar invested in agriculture and, thus, in coffee production, generates $2.62 for the Island s economy.

2 Every year, Puerto Rico loses over half of its coffee harvest, which equals thousands of hundredweight (quintal) of valuable crop with a market value of more than $25.0 million. The main reason for this is the lack of Puerto Rican coffee pickers. For years, farmers have become sort of content with this situation. They have come to endure and do nothing about it, because they know that, at the end of the year, no matter how much coffee they plant and how much they care for it, a large portion of the harvest will be lost. The mentality of the new generations seems to be: Let those who plant it be the ones who harvest it! What is the use of initiatives to raise the price, to increase incentives, and to improve quality to export high-quality coffee if half of the harvest will be lost anyway! The production goal of 300,000 hundredweight of coffee for local consumption proposed by the Department of Agriculture requires, for the harvest alone, approximately 18,000 coffee pickers. Numbers from the Federal Agricultural Census of 2002 reveal that there are approximately 10,000 to 13,000 pickers in the coffee industry, which reflects a deficit of some 5,000 to 8,000 employees. The shortage of workers in agriculture has been on the rise for more than twenty years. Traditionally, the public policy of the Government has involved an attempt to incorporate local unemployed workers in rural zones to the coffee harvest and other agricultural tasks. In truth, all these initiatives have failed, keeping thousands of farmers in a state of uncertainty while they wait for concrete answers to their problems. The lack of coordination between agencies is obvious. Some affect the others, and the situation becomes increasingly complicated with the various social welfare programs they administer. While the Department of Agriculture promotes and creates incentives through bonuses for workers and farmers with wage subsidies, other agencies reduce the benefits of the Supplemental Nutritional Assistance Program (SNAP), WIC, Section 8, and the Government Health Plan if their income increases. For this reason, many people

3 prefer to stay home instead of working, so as not to report an increase in income and lose their welfare benefits. Agreements have been recently made so that income from agricultural activities is not taken into consideration, so as not to affect any assistance received. However, this has not increased the number of workers, thus failing once again in the attempt to boost the agricultural workforce. Initiatives such as the use of inmates under the Corrections Administration or the involvement of different entities such as Hogares Crea, churches, and public schools have contributed greatly, but the success expected by coffee growers has not been achieved. The Department of Labor and Human Resources considers the situation faced by coffee growers as an alleged scarcity of manpower. This outlook is related to the statistics prepared by said agency, which reveal high unemployment rates in coffee-growing municipalities and thus it is suggested that this population could be employed in the coffee harvest. In truth, the statistics prepared by the agency show capable persons who are looking for employment with certain preferences, academic studies, and other professional qualities that make such persons not suitable for employment in the coffee industry by their own choice. For example, when estimates in the Municipality of Jayuya reveal that the unemployment rate is 15%, such number groups all persons capable to be employed who are looking for work. This group includes professionals, persons with technical training, persons with some type of disability, the elderly, and persons with medical conditions, among others, who either cannot or do not want to be employed as farmhands. Therefore, the number of persons within this 15% that could be available for employment in agricultural tasks for short periods of time is not really known. However, the erroneous assumption persists that this 15% could be employed in coffee harvesting tasks.

4 According to coffee growing experts, the situation of the Puerto Rican coffee industry does not stray from the global trend, which shows agricultural workers relocating to areas of greater remuneration, giving way for more disadvantaged sectors to migrate to this line of work. The idea of importing foreign workers does not intend to displace the local workforce, nor is it the only alternative. On the contrary, it should be complementary to other efforts and should also be limited to those critical periods during the year when it is truly necessary. At present, the Department of Labor and Human Resources does not see the need to import workers and, therefore, does not issue a certification of need to enable the process with federal agencies. This action affects the full development of the coffee industry, which has a large number of farmers who could solve their lack of workforce problem with foreign workers for short periods of time. One of the greatest concerns when this option was being considered is that farmers could prefer this line of work, thus displacing the local workforce. In view of this, this legislation enables mechanisms to prevent such possibility and, consequently, gives priority to the guarantee of job permanence and a chance for farmers to hire Puerto Rican farmhands to harvest this valuable crop. Several alternatives, such as limiting the number of visas per year, issuing authorizations only during specific months of the year, thus allowing for the hiring of these workers according to the percent of coffee lost in farms, and requiring that farmers prove they have exhausted all resources to hire local workers to no avail, are among those being considered. The import or export of workers, whether foreigners, U. S. citizens, or both is fully controlled by the Immigration Reform and Control Act of 1986, known as IRCA, which amended the Federal Immigration and Nationality Act. The Program is called Non-Immigrant Foreign Agricultural Workers Certification, better known

5 as H-2A and/or Guest Worker. The regulations are found in the Code of Federal Regulations, Title 20, Part 655, Subpart B, Labor Certification Process for Temporary Agricultural Employment in the United States. Currently, federal laws have no impediment for any bona fide Puerto Rican farmer to receive foreign workers for seasonal periods. The farmer who wishes to exercise this option must file a petition for temporary work with the Immigration and Naturalization Service (INS). Once the petition is approved, the petitioner receives a Notice of Action (Form I-797). On their part, applicants for a nonimmigrant visa shall apply for the same at the United States Consulate or Embassy of their country of residence. However, for the consideration and approval of a visa so that a non-immigrant worker can come to Puerto Rico, it shall be an indispensable requirement that the Federal Department of Immigration requests the local Department of Labor and Human Resources to certify the need for this type of workforce. This Manos Pal Campo Act shall establish the public policy of the Government of Puerto Rico to assist thousands of Puerto Rican coffee growers who ask for the help of a sensible and facilitating government in order to save their harvests and farms. BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF PUERTO RICO: Section 1.- Title. A new Act is hereby created, to be entitled Manos Pal Campo Act. Section 2.- Declaration of Public Policy. It shall be the public policy of the Government of Puerto Rico to support, promote, develop, and strengthen the Puerto Rican agricultural industry, by means of all available and feasible mechanisms within constitutional, governmental, and economic parameters in order to create the highest number of jobs in the Island, giving priority to local workers and without excluding immigrant workers, when

6 the local workforce is not enough to satisfy the demand for the tasks related to coffee harvesting. The objectives of this Act shall be the following: (a) To establish agreements between the Department of Labor and Human Resources and the Department of Agriculture to estimate the demand and availability of the local workforce for coffee harvesting per municipality on an annual basis. (b) To guarantee the greatest possible participation of Puerto Rican workers in coffee harvesting tasks and to support the programs of different Commonwealth and Federal Government agencies, as well as those of bona fide and nonprofit entities, in order to promote job creation in agriculture, whether permanent or seasonal in nature. (c) To provide mechanisms so that, when conditions so require, farmers may choose to hire foreign workforce for the exclusive performance of coffee harvesting tasks. (d) To direct the Department of Labor and Human Resources to, as a public policy, authorize and approve the certificates of need for foreign workers required by federal immigration agencies for the entry of seasonal immigrant workers within a reasonable timeframe that does not affect the farmers operations, for those agricultural businesses that, after exhausting all resources for hiring a local workforce, reveal a true need according to the local agencies estimates. Such attempts to hire a local workforce must have proven unsuccessful, with a cap of up to half of the annual estimates regarding the need of said workforce in such farms. For example, if it is determined that, after counting the number of local workers available, such amount is still insufficient for the following year s coffee harvest by some 5,000 coffee pickers throughout the Island, the entry of up to 2,500 foreign workers may be authorized for said year, thus complying with up to 50% of the need.

7 (e) To boost the expansion of agricultural activities by reducing the uncertainty of the agricultural entrepreneur regarding workers to perform the tasks required by their enterprises, and to foster an increase in the production and quality of our products. (f) To participate as citizens of the United States of America in all programs available under the federal regulations known as the Immigration Reform and Control Act of 1986 in an orderly, controlled, and legal manner, in order to provide our farmers with alternatives to import non-immigrant foreign agricultural workers, better known as H-2A and/or Guest Worker. Section 3.- Definitions. For purposes of this Act, the following words and phrases shall have the meaning stated hereinbelow: (a) Government of Puerto Rico, or Government, means the Commonwealth of Puerto Rico, its departments, agencies, instrumentalities, offices, municipalities, and public corporations. (b) Local worker, or local workforce, means a Puerto Rico resident who is a U. S. citizen. (c) Foreign worker, or foreign workforce, or guest worker, means a person who is not a U. S. citizen and is issued a non-immigrant visa, depending on the particular classification thereof, and who has the intention of staying in the United States, whether temporarily or during a period of time other than permanently. (d) Department of Labor and Human Resources means the Department of Labor and Human Resources of the Government of Puerto Rico. (e) Department of Agriculture means the Department of Agriculture of the Government of Puerto Rico.

8 (f) Department of State means the Department of State of the Government of Puerto Rico. Section 4.- Responsibilities of the Agencies. (a) Department of Labor and Human Resources For the purpose of implementing the public policy set forth herein and to achieve the objectives of the Manos Pal Campo Act, these agencies shall have the following functions and objectives: a. To create and maintain a statistics system that affords the highest level of accuracy in terms of the availability of local workers for coffee harvesting and to determine, with the same accuracy, the need for foreign workers. b. To take administrative measures as may be necessary for the enforcement of this Act and to develop state plans in accordance with federal regulations to assist farmers with filling out forms and requests for foreign workers when the approval of such type of workforce is needed. c. To provide orientation and training to officers of the agencies, municipalities, and applicant farmers on the regulatory and legal implications that hiring foreign workers entail, as well as oversee the faithful compliance thereof. d. To coordinate the maximum use of local workers with the Department of Agriculture and, if necessary, the use of foreign workers to guarantee the maximum profitability of agricultural operations with the workforce needed. e. To establish the necessary norms and regulations to include foreign workers in the agricultural workforce, and for their placement services to be provided in a swift and streamlined manner, pursuant to the requirements of the applicable federal laws.

9 (b) Department of Agriculture a. To assist the Department of Labor and Human Resources in the development of annual estimates regarding the need of workers for coffee harvesting and estimates for foreign workers. b. To provide orientation to farmers on the programs and benefits available for hiring local workers, and the programs and conditions for the use of foreign workers. c. To coordinate the maximum use of local workers with the Department of Labor and Human Resources and, if necessary, the use of foreign workers to guarantee the maximum profitability of agricultural operations with the workforce needed. d. To establish the necessary norms and regulations to include foreign workers in the agricultural workforce, and for their placement services to be provided in a swift and streamlined manner, pursuant to the requirements of the applicable federal laws. e. To ensure that the Commonwealth s resources available for the promotion of local workers are not affected by the inclusion of foreign ones, and that the same are used in the most effective manner in accordance with the applicable laws and regulations. f. To carry out and sponsor activities that facilitate and promote coffee picking as a way to support thousands of farmers, their families, and municipalities of the mountain region, which shall benefit from picking 100% of their harvest, be it by Puerto Rican hands or with the help of foreign farm hands. (c) Department of State a. To adopt the necessary measures to allow interaction between the Commonwealth and the Federal Government in the exercise of the powers and faculties granted by this Act.

10 b. To ensure full participation of Puerto Rican farmers in the federal immigration programs and the fair attention and protection of foreign workers, pursuant to the provisions of laws in effect. Section 5.- Within the first ninety (90) days of each calendar year, the Departments of Agriculture and of Labor and Human Resources of the Commonwealth of Puerto Rico shall submit to the Governor of Puerto Rico and to the Legislative Assembly a report on the activities that have been conducted in compliance with this Act, which shall include, but not be limited to the number of jobs created under the program, the coffee harvest picked, and the impact, either positive or negative, on the economy of Puerto Rico, particularly in the Mountain Region. Section 6.- Compliance with the Act. The Department of Agriculture, in coordination with the Department of Labor and Human Resources, and through the Department of State, shall exercise all discretion and authority to implement the public policy set forth as a purpose of this Act; and shall observe and oversee faithful compliance with the federal immigration statutes and laws in effect for the import of foreign workers. Section 7.- Applicability to Government Entities. The Department of Labor and Human Resources and the Department of Agriculture shall be the agencies entrusted with the application of this public policy, which shall be extensive to other government instrumentalities and to municipalities that wish to develop similar programs. Section 8.- Effectiveness. This Act shall take effect immediately after its approval.

11 CERTIFICATION I hereby certify to the Secretary of State that the following Act No (S. B. 1038) of the 5 th Regular Session of the 16 th Legislative Assembly of Puerto Rico: AN ACT to create the Manos Pal Campo Act, which shall establish the public policy of the Government of Puerto Rico on the need for local and imported workforce to carry out the tasks related to coffee harvesting; establish coordination between the Department of Labor and Human Resources and the Department of Agriculture, and obtain their endorsement to recommend the import of foreign workforce in an orderly and lawful manner; and establish controls to protect the opportunities of the local workforce. has been translated from Spanish to English and that the English version is correct. In San Juan, Puerto Rico, on this 17 th day of November, Juan Luis Martínez Martínez Director