BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 344
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          Date of Hearing:   April 10, 2013

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                               Roger Hernández, Chair
                  AB 344 (Ian Calderon) - As Amended:  April 8, 2013
           
          SUBJECT  :   Minors entertainment work permit:  fee.

           SUMMARY :   Allows the Labor Commissioner (LC) to collect a fee  
          for the issuance of a minors entertainment work permit (EWP) to  
          offset costs.  Specifically,  this bill  :  

          1)Authorizes the LC to impose a fee, not exceeding $50 dollars,  
            for the issuance of an EWP,  required by this section, to  
            offset costs.

          2)Requires the LC to deposit the fees collected into the  
            Entertainment Work Permit Fund (Fund).

          3)Makes the funds available to the LC upon appropriation from  
            the Legislature to pay for the costs associated with issuance  
            of the EWP.

           EXISTING LAW  : 

          1)Requires written consent from the LC, in the form of an EWP,  
            for the employment of a minor in the entertainment industry,  
            as specified.   

          2)Provides that the written consent of the LC expires after ten  
            days unless a Coogan Trust Account (Account) has been  
            established for the minor.  If evidence of the established  
            Account is attached to the written consent, then the written  
            consent is valid for six months.  

          3)Defines a "Coogan Trust Account" to mean a trust account  
            established for the purpose of preserving for the benefit of a  
            minor the portion of the minor's gross earnings. 

          4)Authorizes, prior to the employment of a minor under 16 years  
            of age, the LC to issue a ten day temporary EWP enabling the  
            parent or guardian of the minor to apply for written consent  
            and to establish a Coogan Trust Account, or similar trust  
            account, for the benefit of the minor. 









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          5)Establishes the EWP Fund (Fund) in the State Treasury and  
            requires the LC to deposit all fees received for ten day  
            temporary EWP's into the Fund.  The monies deposited in the  
            Fund are available to the LC, upon appropriation by the  
            Legislature, to pay for the costs of administering the online  
            ten day temporary EWP program.  
          
          6)Authorizes the LC to set the fee, not to exceed $50, for the  
            minor's ten day temporary EWP in an amount sufficient to pay  
            for the costs associated with the Internet Web site.  


           FISCAL EFFECT  :   Unknown

           COMMENTS  :   Under current law, child performers under 18 years  
          of age are required to have a standard six month EWP issued by  
          the LC in order to work in the entertainment industry in  
          California. There is no fee for this service.  This EWP is in  
          addition to work permits required from schools for minors.   
          Until recently, applicants either mailed in or dropped off the  
          EWP to the Division of Labor Standards Enforcement (DLSE) along  
          with any other required documents to obtain the written consent.  
           

          According to the author, this process may take up to two weeks  
          for an EWP to be issued.  Therefore, parents and guardians of  
          child performers often obtained an EWP "just in case".  This has  
          resulted in an inefficient costly work load for the LC's office  
          which issues over 60,000 EWP's annually a number much larger  
          than the pool of minors working in the entertainment industry.  

          Last session, this Committee heard and passed AB 1401 (AEST&IM  
          Committee) which, among other things, required DLSE to make  
          available on its Internet Web site the application form for a  
          ten day temporary EWP, as specified. The temporary EWP is issued  
          the same day and available on a one-time basis and subject to a  
          fee of no more than $50 to pay for the costs of the temporary  
          EWP.  The online system has recently been expanded to include  
          the standard EWP and renewal EWP application forms.

          The author states this bill is necessary to provide the LC with  
          the needed resources for the administration and enforcement of  
          the EWP program.  He states that he is working closely with the  
          LC and the Administration on this bill and asserts that despite  
          recent legislation which created the same-day ten day temporary  








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          EWP system online additional resources are necessary for the  
          existing paper based EWP program.

           PRIOR LEGISLATION  :

          AB 1401 (AEST&IM Committee) Chapter 557, Statutes of 2011,  
          established an Internet Web site permit fee up to $50 and  
          process for online EWP's to be administered by the DLSE for the  
          immediate issuance of temporary EWP's for minors employed in the  
          entertainment industry, among other things.

          AB 2032 (Davis) of 2010, would have created a fund for the  
          enforcement of existing law for minors in the entertainment  
          industry, which, with Legislative appropriation, would finance  
          the issuance of EWPs and the enforcement of working conditions  
          for minors in the entertainment industry.  AB 2032 was vetoed.

          AB 402 (Davis) of 2009, was substantially similar in content to  
          AB 2032 (Davis).   AB 402 was vetoed.

          SB 210 (Burton) Chapter 667, Statutes of 2004, 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.


           



          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Federation of State, County and Municipal Employees
          BizParentz Foundation

           Opposition 
           
          None on file.

           
          Analysis Prepared by  :    Lorie Alvarez / L. & E. / (916)  
          319-2091 









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