LRBs0215/3
GMM:wlj&cs:rs
2007 - 2008 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2007 SENATE BILL 80
February 19, 2008 - Offered by Representative Moulton.
SB80-ASA1,1,4
1An Act to amend 21.72 (1) (a) 10., 49.857 (1) (d) 10., 73.0301 (1) (d) 3m., 103.005
2(10), 111.322 (2m) (a) and 111.322 (2m) (b); and
to create 103.34 of the statutes;
3relating to: the regulation of traveling sales crews, requiring the exercise of
4rule-making authority, and providing penalties.
Analysis by the Legislative Reference Bureau
Current law
House-to-house employment of minors
Under current law, no person may employ, offer to employ, or recruit a minor
to sell goods or services from house-to-house (house-to-house street trades) without
obtaining a house-to-house employer certificate from the Department of Workforce
Development (DWD). A person may obtain a house-to-house employer certificate
by submitting an application to DWD that contains certain information required
under current law, including documentation proving that the person has the ability
to pay any compensation owed to a minor employee, which proof may be in the form
of a bond, certificate of deposit, escrow account, or irrevocable letter of credit in an
amount of at least $5,000 (proof of financial responsibility). If the applicant
establishes proof of financial responsibility and if DWD is satisfied that the applicant
will comply with the laws relating to house-to-house street trades, DWD must issue
a house-to-house employer certificate, which is valid for a 12-month period.
When a minor applies for a job in house-to-house street trades, the
house-to-house employer must inform the minor in writing of the terms and
conditions of employment, including the compensation to be paid, the time and
manner of payment of compensation, the number of days per week and hours per day
that the minor would be required to conduct house-to-house street trades, the
nature and frequency of required employment-related meetings and how
compensation is paid for attendance at those meetings, whether and how the
employer provides transportation, and the expenses that the minor would be
required to pay. A house-to-house employer may change those terms and conditions
by a supplemental document in writing, if the change applies prospectively only.
DWD may suspend or revoke a house-to-house employer certificate if the
employer submits false information in the application, fails to notify DWD of any
change in that information within 30 days after the change occurs, fails to comply
with the terms and conditions of a written disclosure statement, fails to maintain
proof of financial responsibility, or fails to comply with the laws relating to
house-to-house street trades.
The substitute amendment
Traveling sales crews
Introduction
This substitute amendment regulates traveling sales crews, which the
substitute amendment defines as a group of three or more traveling sales crew
members, by doing all of the following:
1. Requiring a traveling sales crew operator to obtain a certificate of
registration from DWD before the operator may use a traveling sales crew to engage
in the sale of goods or services to consumers from house to house or on any street or
in related support work, including operating a motor vehicle, on the person's behalf
(traveling sales crew activities) or employ, offer to employ, or otherwise recruit a
person to work as a traveling sales crew member.
2. Requiring a traveling sales crew operator to obtain a permit for a traveling
sales crew member before the member may be permitted to work in traveling sales
crew activities. The substitute amendment defines "traveling sales crew member"
as a person who engages in traveling sales crew activities as part of or in association
with a traveling sales crew, who travels with the traveling sales crew overnight away
from his or her permanent place of residence, and who maintains no fixed place of
local residence (lodging in this state at which the person has tenancy for at least one
month) or fixed retail establishment in this state. The substitute amendment
excludes from the definition of "traveling sales crew member" a person who
maintains a fixed place of local residence or a fixed retail establishment in this state,
who is a reseller of goods that the person buys at wholesale and to which the person
takes title, or who sells services that are regulated by the office of the Commissioner
of Insurance or the Federal Communications Commission.
3. Requiring a traveling sales crew operator to comply with certain obligations
to a traveling sales crew member, including obligations relating to the disclosure of
certain information, record keeping, payment of compensation, deductions from
compensation, and transportation and housing safety.
4. Prohibiting a traveling sales crew operator from engaging in certain
prohibited practices, such as permitting a minor or incompetent adult to work on a
traveling sales crew, requiring a traveling sales crew member to work during certain
hours or to relinquish custody of his or her property, prohibiting a traveling sales
crew member from contacting his or her family, inflicting or threatening to inflict
bodily harm on a traveling sales crew member, advising a traveling sales crew
member to make false representations in offering goods or services for sale, and
discharging or discriminating against any person for opposing a practice prohibited
under the substitute amendment.
5. Providing provisions to enforce the substitute amendment, including
penalties and injunctive relief for a violation of the substitute amendment, any rules
promulgated under the substitute amendment, or any order issued by DWD under
the substitute amendment or for hindering or delaying DWD in the performance of
its duties, or a law enforcement officer in the performance of his or her duties, under
the substitute amendment.
Traveling sales crew operator registration
Under the substitute amendment, a person may not use a traveling sales crew
to engage in traveling sales crew activities on the person's behalf or recruit a person
to work as a traveling sales crew member unless the person first obtains a certificate
of registration from DWD. A person may obtain a certificate of registration by filing
with DWD a written application, meeting the standards under the substitute
amendment and under rules promulgated by DWD for issuance of a certificate of
registration, and paying a registration fee determined by DWD by rule. The
application must contain certain information specified in the substitute amendment,
including all of the following:
1. A designation of an agency upon whom service of process may be made in this
state.
2. The social security number or federal employer identification number of the
applicant.
3. Any other information that DWD considers necessary for the protection of
the health, safety, and welfare of the traveling sales crew members working on behalf
of the applicant, the consumers of goods or services sold by those members, and the
public.
After completing any investigation that DWD considers appropriate, DWD
must issue a certificate of registration, which is valid for a 12-month period, if the
applicant meets the standards for issuance of a certificate of registration. DWD may
deny, suspend, revoke, or refuse to renew a certificate of registration if DWD
determines that the applicant has been convicted of any crime.
Traveling sales crew member permits
The substitute amendment prohibits a person from being permitted to work as
a traveling sales crew member unless the traveling sales crew operator on whose
behalf the person will be working first obtains from DWD a traveling sales crew
member permit (permit) for the person. A traveling sales crew operator may obtain
a permit for a traveling sales crew member by the operator filing with DWD a written
application and paying a registration fee determined by DWD by rule and by the
member meeting the standards under the substitute amendment and under rules
promulgated by DWD for issuance of a permit. The application must contain certain
information specified in the substitute amendment, including all of the following:
1. The social security number of the applicant.
2. Any other information that DWD considers necessary for the protection of
the health, safety, and welfare of the traveling sales crew members working on behalf
of the traveling sales crew operator, the consumers of goods or services sold by those
members, and the public.
After completing any investigation that DWD considers appropriate, DWD
must issue a permit, which is valid for a 12-month period, if the traveling sales crew
member meets the standards for issuance of a certificate of registration. DWD may
deny, suspend, revoke, or refuse to renew a permit if DWD determines that the
traveling sales crew member has been convicted of any crime.
The bill also requires a traveling sales crew member to carry at all times while
engaged in traveling sales crew activities the member's permit and an identification
card issued by a state or federal governmental agency that includes, at a minimum,
a photograph of the member.
Obligations of traveling sales crew operators to members
Disclosure statement. The substitute amendment requires a traveling sales
crew operator to provide a person who is recruited to work as a traveling sales crew
member with a written disclosure statement that includes all of the following
information:
1. The address of the principal place of business of the traveling sales crew
operator or of the agent for service of process.
2. The compensation to be paid.
3. The type or types of work that the person may be required to perform.
4. The frequency of wage payments to traveling sales crew members.
5. The period of engagement.
6. A description of the transportation, board, lodging, and other benefits to be
provided and any costs chargeable to the person for those benefits.
Records. The substitute amendment also requires a traveling sales crew
operator to keep records, with respect to each traveling sales crew member working
on behalf of the traveling sales crew operator, of all of the following information:
1. The basis on which compensation is paid.
2. The number of piecework units earned, if the traveling sales crew member
is paid on a piecework basis.
3. The number of hours worked.
4. The total earnings of the traveling sales crew member for a pay period.
5. The specific sums withheld from the traveling sales crew member's pay and
the purpose of each sum withheld.
6. The net pay of the traveling sales crew member for a pay period.
The traveling sales crew operator must provide that information to a traveling
sales crew member when compensation is paid.
Payment of compensation; deductions. In addition, the substitute
amendment does all of the following:
1. Requires a traveling sales crew operator to pay all compensation owed to a
traveling sales crew member promptly, when due, in U.S. currency or by a negotiable
instrument such as a bank check or draft.
