BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1398
                                                                  Page  1

          Date of Hearing:   May 4, 2011

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                                Sandre Swanson, Chair
                   AB 1398 (Chesbro) - As Amended:  March 31, 2011
           
          SUBJECT  :   Employment of minors: agricultural packing plants.

          SUMMARY  :   Extends the sunset date on an exemption for the 
          employment of minors in Lake County agricultural packing plants 
          until January 1, 2017.

           EXISTING LAW  :

          1)Generally limits the hours of employment of minors in the 
            state.

          2)Allows the Labor Commissioner (LC) to grant an exemption to 
            agricultural packing plants employing minors 16 or 17 years of 
            age, allowing them to work up to 10 hours per day when school 
            is not in session during peak harvest season.

          3)In addition, allows the LC to grant an exemption during the 
            peak harvest season in Lake County, authorizing the employment 
            of minors 16 or 17 years of age to work up to 10 hours per day 
            and 60 hours per week, during days when school is not in 
            session.

          4)Specifies that the exemption requires prior written approval 
            of the Lake County Office of Education.

          5)Requires the LC to inspect the affected agricultural packing 
            plant prior to issuing or renewing an exemption.

          6)Requires the employer to file an annual report with the LC 
            containing specified employment information.

          7)Requires the LC to submit an annual report to the Legislature 
            that describes the general working conditions of minors 
            employed in the agricultural packing industry during the 
            previous year.

          8)Contains a January 1, 2012 sunset date.

           FISCAL EFFECT  :   Unknown








                                                                  AB 1398
                                                                  Page  2


           COMMENTS  : This bill is sponsored by the California Grape and 
          Tree Fruit League.   








           General Background on the Exemption for Lake County Packing 
          Plants  

          The exemption for minors working in agricultural packing plants 
          in Lake County was originally enacted in 1996.  Proponents of 
          the exemption have traditionally stated that it reflects the 
          unique industry and labor market requirements of Lake County.

          This exemption has been characterized as necessary to help deal 
          with the labor shortage in Lake County's agricultural industry 
          during harvest time each year in August.  The pear-packing 
          season lasts only four to six weeks and coincides with an 
          increase in tourism, which is considered the other large 
          industry in Lake County.  With both tourism and agriculture at 
          peak activity, the available labor pool is severely limited .  
          Therefore, it is argued that the employment of minors during 
          this time is necessary and mutually beneficial for both the 
          minors employed and growers.   Proponents contend that this 
          exemption has proved successful and the participation of youth 
          workers has now become an economic imperative for Lake County 
          agricultural employers.
           
           The Labor Commissioner's Annual Report for 2010

           The most recent annual report on employment of minors in 
          agricultural packing plants was submitted on March 24, 2011.

          With respect to the number of minors employed in the industry, 
          the report stated the following:

               "According to records of the Lake County agricultural 
               packing plant employer operating with an approved exemption 
               in 2010, a total of 24 minors aged 16 and 17 years old were 
               employed during the 2010 peak packing season. Of those 24, 








                                                                  AB 1398
                                                                  Page  3

               one individual turned 18 early in the season. Two minors 
               aged 15 years old were employed on a schedule of no more 
               than 8 hours per day and/or 40 hours a week. 

               The seven additional packing operations with approved 
               exemptions statewide in 2010 were granted approval to 
               employ an additional 99 minors under the provisions of 
               these permits."

          With respect to the number of exemptions issued, renewed or 
          denied, the report stated the following:

               "In 2010, pursuant to Labor Code §1393.5, an application 
               was submitted by one Lake County employer operating in two 
               locations for exemption to authorize employment of minors 
               for more than 48 hours but not to exceed 60 hours in any 
               one week. The Labor Commissioner issued the exemption to 
               the employer for both locations. The employer held a valid 
               exemption in 2009. At the conclusion of the 2009 season, 
               one employer who historically held an approved exemption 
               was found, upon inspection, to be in violation of multiple 
               wage and hour laws, and was cited. This employer was told 
               at the end of the 2009 season that it would not be eligible 
               for an exemption for the 2010 season and did not apply. 

               In addition to the Lake County employer, seven packing 
               operations outside of Lake County applied for exemption. 
               All seven were approved and permits issued."  
           

          PRIOR LEGISLATION  :

          AB 1900 (Freidman), also known as the Omnibus Child Labor Reform 
          Act of 1993, became effective on January 1, 1995. Among other 
          provisions, the bill authorized the LC to grant exemptions to 
          the limitation of the number of hours that 16- and 17-year-old 
          minors may work in a day at an agricultural packing plant during 
          peak harvest season when school is not in session. The law 
          authorized the Labor Commissioner to grant an exemption to allow 
          minors to work up to ten hours per day, rather than eight hours, 
          if the additional work hours did not materially affect the 
          safety and welfare of the minor. 

          SB 1988 (Thompson) of 1996 authorized the Lake County Board of 
          Education to permit the employment of 16- and 17-year-old minors 








                                                                  AB 1398
                                                                  Page  4

          for up to sixty hours per week when school was not in session 
          during the peak harvest season. This law contained a sunset date 
          of January 1, 1999.

          SB 2054 (Thompson) of 1998 extended the sunset date to January 
          1, 2002.

          SB 912 (Chesbro) of 2001 amended the law to require the LC to 
          annually inspect Lake County agricultural packing plants that 
          apply for an exemption or renewal of an exemption authorized by 
          the section. The bill also required agricultural packing plants 
          that receive such an exemption to submit to the LC an annual 
          report on the number, ages, and working hours of minors that 
          were employed during the preceding year. In addition, the LC was 
          required to report to the Legislature on the working conditions 
          of minors employed in the plants during the preceding year. SB 
          912 extended the sunset date to January 1, 2005. 

          SB 1134 (Chesbro) of 2004 extended the sunset date to January 1, 
          2008.
           
          SB 319 (Wiggins) of 2007 extended the sunset date to January 1, 
          2012. The bill further revised the provisions relating to Lake 
          County by limiting the hours of work exemption to the employment 
          of minors, 16 or 17 years of age, who reside in Lake County upon 
          prior written approval of the Lake County Office of Education. 
          SB 319 also deleted the requirement that a minor be enrolled in 
          school in Lake County for the exemption to apply.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Grape and Tree Fruit League

           Opposition 
           
          None on file.
           

          Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091 












                                                                  AB 1398
                                                                  Page  5