BILL ANALYSIS Ó AB 2396 Page 1 Date of Hearing: March 28, 2012 ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT Sandre Swanson, Chair AB 2396 (Arts, Entertainment, Sports Committee) - As Introduced: February 24, 2012 SUBJECT : Employment of infants: entertainment industry. SUMMARY : Clarifies that prior to obtaining a temporary work permit for infants a medical certification from a doctor must first be obtained and verified and makes technical clean-up changes, also. EXISTING FEDERAL LAW : 1)Regulates the employment of minors in the United States under the federal Fair Labor Standards Act (FLSA) but the FLSA provides an exception for "any child employed as an actor or performer in motion pictures or theatrical productions, or in radio or television productions." (29, U.S.C. Section 212, et seq). EXISTING STATE LAW : 1)Requires the written consent of the Labor Commissioner (LC) for the employment of a minor in the entertainment industry, as specified. (Labor Code section 1308.5) 2)Requires an entertainment work permit to be obtained from the LC for a minor in order for them to be employed in the entertainment industry. 3)States that all minors less than 18 years of age, with limited exceptions, employed in the state of California must have a permit to work and their employers must have a permit to employ minors, as specified. 4)Provides that employers must keep on file all Permits to Employ and Work. Records must be open at all times for inspection by school authorities and officers of the Division of Labor Standards Enforcement (DLSE). (Labor Code Section 1299; Education Code Sections 49161, 49164, and 49181). 5)Provides that failure to produce Permits to Work or to Employ AB 2396 Page 2 is prima facie evidence of the illegal employment of minors, and subjects the employer to a fine. (Labor Code Sections 1288 and 1304; Education Code Section 49181). 6)Provides that once written consent is given by the LC, as specified, that consent shall be void after the expiration of ten business days from the date the written consent was granted unless it is attached to a true and correct copy as evidence that a "Coogan Trust Account" has been established on behalf of the minor and enforcement shall be done by the LC. 7)Establishes a program to be administered by the LC that would enable a minor's parent or guardian to obtain a temporary permit for the employment of a minor, under specified conditions. Also authorizes the LC to collect and deposit money into the Entertainment Work Permit (EWP) Fund to use the proceeds from the EWP Fund to pay the costs of administrating the program, as specified (Labor Code section 1308.10) FISCAL EFFECT : Unknown COMMENTS : Last year this Committee heard AB 1401 (Arts, Entertainment, Sports, Tourism & Internet Media) which established a program to be administered by the LC that would enable a minor's parent or guardian to obtain a temporary permit for the employment of a minor, under specified conditions. AB 1401 also authorizes the LC to collect and deposit money into the Entertainment Work Permit (EWP) Fund to use the proceeds from the EWP Fund to pay the costs of administrating the program, as specified. This bill makes clarifying and technical clean-up changes to correct a drafting error in the Chaptered version of AB 1401, which inadvertently combined the names of the Labor Enforcement and Compliance Fund and the Entertainment Work Permit Fund used to pay for startup costs incurred in the creation of the program. Additionally, this bill clarifies that prior to obtaining a temporary work permit for infants a medical certification from a doctor must first be obtained and confirmed. The clarification is in alignment with the information currently posted on the Department of Industrial Relations (DIR) website regarding 10 day Temporary Entertainment Work Permits. AB 2396 Page 3 This bill is double referred to the Arts, Entertainment, Sports, Tourism & Internet Media Committee. PRIOR AND RELATED LEGISLATION : AB 1401 (Arts Committee), Chapter 557, Statutes of 2011, established a program to be administered by the Labor Commissioner that would enable a minor's parent or guardian, prior to the first employment of a minor performer to obtain a temporary permit for the employment of a minor to work in the entertainment field. AB 2032 (Davis) of 2009, which was vetoed by the Governor, would have levied a fee to fund the administration of permits for minors in the entertainment industry, as well as to fund enforcement of working conditions for minors in the industry. AB 402 (Davis) of 2009 would have required a $50 fee be submitted at the time when a minor applies for an Entertainment Work Permit (EWP) and directed the LC to collect and deposit the money into a special fund for the administration and enforcement of EWPs for minors, as provided. AB 402 was vetoed by the Governor. SB 210 (Burton), Chapter 667, Statutes of 2004, which was discussed earlier, added the requirement that the LC's written consent for performances of a minor be limited to TEN days, unless a Coogan Trust Account has been established. SB 1162 (Burton), Chapter 940, Statutes of 1999, made significant changes to the Coogan law. REGISTERED SUPPORT / OPPOSITION : Support None on file. Opposition None on file. AB 2396 Page 4 Analysis Prepared by : Lorie Alvarez / L. & E. / (916) 319-2091