BILL NUMBER: AB 533	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Ian Calderon

                        FEBRUARY 20, 2013

   An act to amend Section 6753 of the Family Code, relating to
minors.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 533, as introduced, Ian Calderon. Artistic employment
contracts: minors.
   Existing law regulates certain contracts for artistic employment
between an unemancipated minor and 3rd parties, including employment
as an actor, dancer, musician, comedian, singer, stunt-person,
voice-over artist, or sports player. Existing law provides for the
establishment of a trust for the purpose of preserving for the minor
a portion of the minor's gross earnings, as defined. Existing law
prohibits a withdrawal from this trust account by the beneficiary or
any other individual or entity before the beneficiary attains 18
years of age or is emancipated without a court order, as specified.
   This bill would prohibit the financial institution or company that
holds the trust from withdrawing funds from the trust account for
the purpose of collecting fees or service charges assessed for
maintenance of the account prior to the date on which the beneficiary
of the trust attains 18 years of age or is emancipated without a
court order as specified.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 6753 of the Family Code is amended to read:
   6753.  (a) The trustee or trustees shall establish a trust
account, that shall be known as a Coogan Trust Account, pursuant to
this section at a bank, savings and loan institution, credit union,
brokerage firm, or company registered under the Investment Company
Act of 1940, that is located in the State of California, unless a
similar trust has been previously established, for the purpose of
preserving for the benefit of the minor the portion of the minor's
gross earnings pursuant to paragraph (1) of subdivision (b) of
Section 6752 or pursuant to paragraph (1) of subdivision (c) of
Section 6752. The trustee or trustees shall establish the trust
pursuant to this section within seven business days after the minor's
contract is signed by the minor, the third-party individual or
personal services corporation (loan-out company), and the employer.
   (b) Except as otherwise provided in this section, prior to the
date on which the beneficiary of the trust attains  the age
of  18 years  of age  or the issuance of a
declaration of emancipation of the minor under Section 7122, no
withdrawal by the beneficiary or any other individual, individuals,
entity, or entities  , including the financial institution or
company in which the trust is held, for purposes of collecting fees
or service charges assessed for maintenance of the trust,  may
be made of funds on deposit in trust without written order of the
superior court pursuant to paragraph (7) of subdivision (b) or
paragraph (5) of subdivision  (c)   (d)  of
Section 6752. Upon reaching  the age of  18 years
 of age  , the beneficiary may withdraw the funds on deposit
in trust only after providing a certified copy of the beneficiary's
birth certificate to the financial institution where the trust is
located.
   (c) The trustee or trustees shall, within 10 business days after
the minor's contract is signed by the minor, the third-party
individual or personal services corporation (loan-out company), and
the employer, prepare a written statement under penalty of perjury
that shall include the name, address, and telephone number of the
financial institution, the name of the account, the number of the
account, the name of the minor beneficiary, the name of the trustee
or trustees of the account, and any additional information needed by
the minor's employer to deposit into the account the portion of the
minor's gross earnings prescribed by paragraph (1) of subdivision (b)
or paragraph (1) of subdivision (c) of Section 6752. The trustee or
trustees shall attach to the written statement a true and accurate
photocopy of any information received from the financial institution
confirming the creation of the account, such as an account agreement,
account terms, passbook, or other similar writings.
   (d) The trust shall be established in California either with a
financial institution that is and remains insured at all times by the
Federal Deposit Insurance Corporation (FDIC), the Securities
Investor Protection Corporation (SIPC), or the National Credit Union
Share Insurance Fund (NCUSIF) or their respective successors, or with
a company that is and remains registered under the Investment
Company Act of 1940. The trustee or trustees of the trust shall be
the only individual, individuals, entity, or entities with the
obligation or duty to ensure that the funds remain in trust, in an
account or other savings plan insured in accordance with this
section, or with a company that is and remains registered under the
Investment Company Act of 1940 as authorized by this section.
   (e) Upon application by the trustee or trustees to the financial
institution or company in which the trust is held, the trust funds
shall be handled by the financial institution or company in one or
more of the following methods:
   (1) The financial institution or company may transfer funds to
another account or other savings plan at the same financial
institution or company, provided that the funds transferred shall
continue to be held in trust, and subject to this chapter.
   (2) The financial institution or company may transfer funds to
another financial institution or company, provided that the funds
transferred shall continue to be held in trust, and subject to this
chapter and that the transferring financial institution or company
has provided written notification to the financial institution or
company to which the funds will be transferred that the funds are
subject to this section and written notice of the requirements of
this chapter.
   (3) The financial institution or company may use all or a part of
the funds to purchase, in the name of and for the benefit of the
minor, (A) investment funds offered by a company registered under the
Investment Company Act of 1940, provided that if the underlying
investments are equity securities, the investment fund is a
broad-based index fund or invests broadly across the domestic or a
foreign regional economy, is not a sector fund, and has assets under
management of at least two hundred fifty million dollars
($250,000,000); or (B) government securities and bonds, certificates
of deposit, money market instruments, money market accounts, or
mutual funds investing solely in those government securities and
bonds, certificates, instruments, and accounts, that are available at
the financial institution where the trust fund or other savings plan
is held, provided that the funds shall continue to be held in trust
and subject to this chapter, those purchases shall have a maturity
date on or before the date upon which the minor will attain the age
of 18 years, and any proceeds accruing from those purchases shall be
redeposited into that account or accounts or used to further purchase
any of those or similar securities, bonds, certificates,
instruments, funds, or accounts.