Amended in Assembly April 18, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 533


Introduced by Assembly Member Ian Calderon

February 20, 2013


An act to amendbegin delete Sectionend deletebegin insert Sections 6752 andend insert 6753 of the Family Code, relating to minors.

LEGISLATIVE COUNSEL’S DIGEST

AB 533, as amended, 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 lawbegin insert requires the minor’s employer under one of these contracts to set aside 15% of the minor’s gross earnings, as specified, andend insert 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.begin delete 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.end delete

This bill wouldbegin delete 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.end deletebegin insert exempt an employer of a minor under a contract as described above for services as an extra, background performer, or in a similar capacity from the requirement that the employer set aside 15% of the minor’s gross earnings in trust for the benefit of the minor. The bill would also correct related obsolete cross-references.end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 6752 of the end insertbegin insertFamily Codeend insertbegin insert is amended to
2read:end insert

3

6752.  

(a) A parent or guardian entitled to the physical custody,
4care, and control of a minor who enters into a contract of a type
5described in Section 6750 shall provide a certified copy of the
6minor’s birth certificate indicating the minor’s minority to the
7other party or parties to the contract and in addition, in the case of
8a guardian, a certified copy of the court document appointing the
9person as the minor’s legal guardian.

10(b) (1) Notwithstanding any other statute, in an order approving
11a minor’s contract of a type described in Section 6750, the court
12shall require that 15 percent of the minor’s gross earnings pursuant
13to the contract be set aside by the minor’s employerbegin delete inend deletebegin insert, except an
14employer of a minor for services as an extra, background
15performer, or in a similar capacity, as described in paragraph (3)
16of subdivision (b) of Section 6750. These amounts shall be held inend insert

17 trust, in an account or other savings plan, and preserved for the
18benefit of the minor in accordance with Section 6753.

19(2) The court shall require that at least one parent or legal
20guardian, as the case may be, entitled to the physical custody, care,
21and control of the minor at the time the order is issued be appointed
22as trustee of the funds ordered to be set aside in trust for the benefit
23of the minor, unless the court shall determine that appointment of
24a different individual, individuals, entity, or entities as trustee or
25trustees is required in the best interest of the minor.

26(3) Within 10 business days after commencement of
27employment, the trustee or trustees of the funds ordered to be set
28aside in trust shall provide the minor’s employer with a true and
29accurate photocopy of the trustee’s statement pursuant to Section
306753. Upon presentation of the trustee’s statement offered pursuant
31to this subdivision, the employer shall provide the parent or
P3    1guardian with a writtenbegin delete acknowledgementend deletebegin insert acknowledgmentend insert of
2receipt of the statement.

3(4) The minor’s employer shall deposit or disburse the 15
4percent of the minor’s gross earnings pursuant to the contract
5within 15 business days after receiving a true and accurate copy
6of the trustee’s statement pursuant to subdivision (c) of Section
76753, a certified copy of the minor’s birth certificate, and, in the
8case of a guardian, a certified copy of the court document
9 appointing the person as the minor’s guardian. Notwithstanding
10any otherbegin delete provision ofend delete law, pending receipt of these documents,
11the minor’s employer shall hold, for the benefit of the minor, the
1215 percent of the minor’s gross earnings pursuant to the contract.
13begin insert This paragraph does not apply to an employer of a minor for
14services as an extra, background performer, or in a similar
15capacity, as described in paragraph (3) of subdivision (b) of
16Section 6750.end insert

17(5) When making the initial deposit of funds, the minor’s
18employer shall provide written notification to the financial
19institution or company that the funds are subject to Section 6753.
20Upon receipt of the court order, the minor’s employer shall provide
21the financial institution with a copy of the order.

22(6) Once the minor’s employer deposits the set aside funds
23pursuant to Section 6753, in trust, in an account or other savings
24plan, the minor’s employer shall have no further obligation or duty
25to monitor or account for the funds. The trustee or trustees of the
26trust shall be the only individual, individuals, entity, or entities
27with the obligation or duty to monitor and account for those funds
28once they have been deposited by the minor’s employer. The
29trustee or trustees shall do an annual accounting of the funds held
30in trust, in an account or other savings plan, in accordance with
31Sections 16062 and 16063 of the Probate Code.

32(7) The court shall have continuing jurisdiction over the trust
33established pursuant to the order and may at any time, upon petition
34of the parent or legal guardian, the minor, through his or her
35guardian ad litem, or the trustee or trustees, on good cause shown,
36order that the trust be amended or terminated, notwithstanding the
37provisions of the declaration of trust. An order amending or
38terminating a trust may be made only after reasonable notice to
39the beneficiary and, if the beneficiary is then a minor, to the parent
P4    1or guardian, if any, and to the trustee or trustees of the funds with
2opportunity for all parties to appear and be heard.

3(8) A parent or guardian entitled to the physical custody, care,
4and control of the minor shall promptly notify the minor’s employer
5in writing of any change in facts that affect the employer’s
6obligation or ability to set aside the funds in accordance with the
7order, including, but not limited to, a change of financial institution
8or account number, or the existence of a new or amended order
9issued pursuant to paragraph (7) amending or terminating the
10employer’s obligations under this section. The written notification
11shall be accompanied by a true and accurate photocopy of the
12trustee’s statement pursuant to Section 6753 and, if applicable, a
13true and accurate photocopy of the new or amended order.

14(9) (A) If a parent, guardian, or trustee fails to provide the
15minor’s employer with a true and accurate photocopy of the
16trustee’s statement pursuant to Section 6753 within 180 days after
17the commencement of employment, the employer shall forward
18to The Actors’ Fund of America 15 percent of the minor’s gross
19earnings pursuant to the contract, together with the minor’s name
20and, if known, the minor’s social security number, birth date, last
21known address, telephone number, e-mail address, dates of
22employment, and title of the project on which the minor was
23employed, and shall notify the parent, guardian, or trustee of that
24transfer by certified mail to the last known address. Upon receipt
25of those forwarded funds, The Actors’ Fund of America shall
26become the trustee of those funds and the minor’s employer shall
27have no further obligation or duty to monitor or account for the
28funds.

29(B) The Actors’ Fund of America shall make its best efforts to
30notify the parent, guardian, or trustee of their responsibilities to
31provide a true and accurate photocopy of the trustee’s statement
32pursuant to Section 6753, and in the case of a guardian, a certified
33copy of the court document appointing the person as the minor’s
34legal guardian. Within 15 business days after receiving those
35documents, The Actors’ Fund of America shall deposit or disburse
36the funds as directed by the trustee’s statement. When making that
37deposit or disbursal of the funds, The Actors’ Fund of America
38shall provide to the financial institution notice that the funds are
39subject to Section 6753 and a copy of each applicable order, and
P5    1shall thereafter have no further obligation or duty to monitor or
2account for the funds.

3(c) The Actors’ Fund of America shall notify each beneficiary
4of his or her entitlement to the funds that it holds for the beneficiary
5within 60 days after the date on which its records indicated that
6the beneficiary has attained 18 years of age or the date on which
7it received notice that the minor has been emancipated, by sending
8that notice to the last known address for the beneficiary or, if it
9has no specific separate address for the beneficiary, to the
10beneficiary’s parent or guardian.

11(d) (1) Notwithstanding any other statute, for any minor’s
12contract of a type described in Section 6750 that is not being
13submitted for approval by the court pursuant to Section 6751, or
14for which the court has issued a final order denying approval, 15
15percent of the minor’s gross earnings pursuant to the contract shall
16be set aside by the minor’s employerbegin delete inend deletebegin insert, except an employer of a
17minor for services as an extra, background performer, or in a
18similar capacity, as described in paragraph (3) of subdivision (b)
19of Section 6750. These amounts shall be held inend insert
trust, in an account
20or other savings plan, and preserved for the benefit of the minor
21in accordance with Section 6753. At least one parent or legal
22guardian, as the case may be, entitled to the physical custody, care,
23and control of the minor, shall be the trustee of the funds set aside
24for the benefit of the minor, unless the court, upon petition by the
25parent or legal guardian, the minor, through his or her guardian ad
26litem, or the trustee or trustees of the trust, shall determine that
27appointment of a different individual, individuals, entity, or entities
28as trustee or trustees is required in the best interest of the minor.

29(2) Within 10 business days of commencement after
30employment, a parent or guardian, as the case may be, entitled to
31the physical custody, care, and control of the minor shall provide
32the minor’s employer with a true and accurate photocopy of the
33trustee’s statement pursuant to Section 6753 and in addition, in
34the case of a guardian, a certified copy of the court document
35appointing the person as the minor’s legal guardian. Upon
36presentation of the trustee’s statement offered pursuant to this
37subdivision, the employer shall provide the parent or guardian with
38a writtenbegin delete acknowledgementend deletebegin insert acknowledgmentend insert of receipt of the
39statement.

P6    1(3) The minor’s employer shall deposit 15 percent of the minor’s
2gross earnings pursuant to the contract within 15 business days of
3receiving the trustee’s statement pursuant to Section 6753, or if
4the court denies approval of the contract, within 15 business days
5of receiving a final order denying approval of the contract.
6Notwithstanding any other statute, pending receipt of the trustee’s
7statement or the final court order, the minor’s employer shall hold
8for the benefit of the minor the 15 percent of the minor’s gross
9earnings pursuant to the contract. When making the initial deposit
10of funds, the minor’s employer shall provide written notification
11to the financial institution or company that the funds are subject
12to Section 6753.begin insert This paragraph does not apply to an employer
13of a minor for services as an extra, background performer, or in
14a similar capacity, as described in paragraph (3) of subdivision
15(b) of Section 6750.end insert

16(4) Once the minor’s employer deposits the set aside funds in
17trust, in an account or other savings plan pursuant to Section 6753,
18the minor’s employer shall have no further obligation or duty to
19monitor or account for the funds. The trustee or trustees of the
20trust shall be the only individual, individuals, entity, or entities
21with the obligation or duty to monitor and account for those funds
22once they have been deposited by the minor’s employer. The
23trustee or trustees shall do an annual accounting of the funds held
24in trust, in an account or other savings plan, in accordance with
25Sections 16062 and 16063 of the Probate Code.

26(5) Upon petition of the parent or legal guardian, the minor,
27through his or her guardian ad litem, or the trustee or trustees of
28the trust, to the superior court in any county in which the minor
29resides or in which the trust is established, the court may at any
30time, on good cause shown, order that the trust be amended or
31terminated, notwithstanding the provisions of the declaration of
32trust. An order amending or terminating a trust may be made only
33after reasonable notice to the beneficiary and, if the beneficiary is
34then a minor, to the parent or guardian, if any, and to the trustee
35or trustees of the funds with opportunity for all parties to appear
36and be heard.

37(6) A parent or guardian entitled to the physical custody, care,
38and control of the minor shall promptly notify the minor’s employer
39in writing of any change in facts that affect the employer’s
40obligation or ability to set aside funds for the benefit of the minor
P7    1in accordance with this section, including, but not limited to, a
2change of financial institution or account number, or the existence
3of a new or amended order issued pursuant to paragraph (5)
4amending or terminating the employer’s obligations under this
5section. The written notification shall be accompanied by a true
6and accurate photocopy of the trustee’s statement and attachments
7pursuant to Section 6753 and, if applicable, a true and accurate
8photocopy of the new or amended order.

9(7) (A) If a parent, guardian, or trustee fails to provide the
10minor’s employer with a true and accurate photocopy of the
11 trustee’s statement pursuant to Section 6753, within 180 days after
12commencement of employment, the employer shall forward to
13The Actors’ Fund of America the 15 percent of the minor’s gross
14earnings pursuant to the contract, together with the minor’s name
15and, if known, the minor’s social security number, birth date, last
16known address, telephone number, e-mail address, dates of
17employment, and the title of the project on which the minor was
18employed, and shall notify the parent, guardian, or trustee of that
19transfer by certified mail to the last known address. Upon receipt
20of those forwarded funds, The Actors’ Fund of America shall
21become the trustee of those funds and the minor’s employer shall
22have no further obligation or duty to monitor or account for the
23funds.

24(B) The Actors’ Fund of America shall make best efforts to
25notify the parent, guardian, or trustee of their responsibilities to
26provide a true and accurate photocopy of the trustee’s statement
27pursuant to Section 6753 and in the case of a guardian, a certified
28copy of the court document appointing the person as the minor’s
29legal guardian. After receiving those documents, The Actors’ Fund
30of America shall deposit or disburse the funds as directed by the
31trustee’s statement, and in accordance with Section 6753, within
3215 business days. When making that deposit or disbursal of the
33funds, The Actors’ Fund of America shall provide notice to the
34financial institution that the funds are subject to Section 6753, and
35shall thereafter have no further obligation or duty to monitor or
36account for the funds.

37(C) The Actors’ Fund of America shall notify each beneficiary
38of his or her entitlement to the funds that it holds for the
39beneficiary, within 60 days after the date on which its records
40indicate that the beneficiary has attained 18 years of age or the
P8    1date on which it received notice that the minor has been
2emancipated, by sending that notice to the last known address that
3it has for the beneficiary, or to the beneficiary’s parent or guardian,
4where it has no specific separate address for the beneficiary.

5(e) Where a parent or guardian is entitled to the physical custody,
6care, and control of a minor who enters into a contract of a type
7described in Section 6750, the relationship between the parent or
8guardian and the minor is a fiduciary relationship that is governed
9by the law of trusts, whether or not a court has issued a formal
10order to that effect. The parent or guardian acting in his or her
11fiduciary relationship, shall, with the earnings and accumulations
12of the minor under the contract, pay all liabilities incurred by the
13minor under the contract, including, but not limited to, payments
14for taxes on all earnings, including taxes on the amounts set aside
15under subdivisions (b) and (c) of this section, and payments for
16personal or professional services rendered to the minor or the
17business related to the contract. Nothing in this subdivision shall
18be construed to alter any other existing responsibilities of a parent
19or legal guardian to provide for the support of a minor child.

20(f) (1) Except as otherwise provided in this subdivision, The
21Actors’ Fund of America, as trustee of unclaimed set-aside funds,
22shall manage and administer those funds in the same manner as a
23trustee under the Probate Code. Notwithstanding the foregoing,
24The Actors’ Fund of America is not required to open separate,
25segregated individual trust accounts for each beneficiary but may
26hold the set-aside funds in a single, segregated master account for
27all beneficiaries, provided it maintains accounting records for each
28beneficiary’s interest in the master account.

29(2) The Actors’ Fund of America shall have the right to transfer
30funds from the master account, or from a beneficiary’s segregated
31account to its general account in an amount equal to the
32beneficiary’s balance. The Actors’ Fund of America shall have
33the right to use those funds transferred to its general account to
34provide programs and services for young performers. This use of
35the funds does not limit or alter The Actors’ Fund of America’s
36obligation to disburse the set-aside funds to the beneficiary, or the
37beneficiary’s parent, guardian, trustee, or estate pursuant to this
38chapter.

39(3) (A) Upon receiving a certified copy of the beneficiary’s
40birth certificate, or United States passport, and a true and accurate
P9    1photocopy of the trustee’s statement pursuant to Section 6753, The
2Actors’ Fund of America shall transfer the beneficiary’s balance
3to the trust account established for the beneficiary.

4(B) The Actors’ Fund of America shall disburse the set-aside
5funds to a beneficiary who has attained 18 years of age, after
6receiving proof of the beneficiary’s identity and a certified copy
7of the beneficiary’s birth certificate or United States passport, or
8to a beneficiary who has been emancipated, after receiving proof
9of the beneficiary’s identity and appropriate documentation
10evidencing the beneficiary’s emancipation.

11(C) The Actors’ Fund of America shall disburse the set-aside
12funds to the estate of a deceased beneficiary after receiving
13appropriate documentation evidencing the death of the beneficiary
14and the claimant’s authority to collect those funds on behalf of the
15beneficiary.

16(g) (1) The beneficiary of an account held by The Actors’ Fund
17of America pursuant to this section shall be entitled to receive
18imputed interest on the balance in his or her account for the entire
19period during which the account is held at a rate equal to the lesser
20of the federal reserve rate in effect on the last business day of the
21prior calendar quarter or the national average money market rate
22as published in the New York Times on the last Sunday of the
23prior calendar quarter, adjusted quarterly.

24(2) The Actors’ Fund of America may assess and deduct from
25the balance in the beneficiary’s account reasonable management,
26administrative, and investment expenses, including
27beneficiary-specific fees for initial set up, account notifications
28and account disbursements, and a reasonably allocable share of
29management, administrative, and investment expenses of the master
30account. No fees may be charged to any beneficiary’s account
31during the first year that the account is held by The Actors’ Fund
32of America.

33(3) Notwithstanding paragraph (2), the amount paid on any
34claim made by a beneficiary or the beneficiary’s parent or guardian
35after The Actors’ Fund of America receives and holds funds
36pursuant to this section may not be less than the amount of the
37funds received plus the imputed interest.

38(h) Notwithstanding any provision of this chapter to the contrary,
39any minor’s employer holding set-aside funds under this chapter,
40which funds remain unclaimed 180 days after the effective date
P10   1hereof, shall forward those unclaimed funds to The Actors’ Fund
2of America, along with the minor’s name and, if known, the
3minor’s social security number, birth date, last known address,
4telephone number, e-mail address, dates of employment, and the
5title of the project on which the minor was employed, and shall
6notify the parent, guardian, or trustee of that transfer by certified
7mail to the last known address. Upon receipt of those forwarded
8funds by The Actors’ Fund of America, the minor’s employer shall
9have no further obligation or duty to monitor or account for the
10funds.

11(i) All funds received by The Actors’ Fund of America pursuant
12to this section shall be exempt from the application of the
13Unclaimed Property Law (Title 10 (commencing with Section
141300) of Part 3 of the Code of Civil Procedure), including, but not
15limited to, Section 1510 of the Code of Civil Procedure.

16begin insert

begin insertSEC. end insertbegin insert2.end insert  

end insert

begin insertSection 6753 of the end insertbegin insertFamily Codeend insertbegin insert is amended to read:end insert

17

6753.  

(a) The trustee or trustees shall establish a trust account,
18that shall be known as a Coogan Trust Account, pursuant to this
19section at a bank, savings and loan institution, credit union,
20brokerage firm, or company registered under the Investment
21Company Act of 1940, that is located in the State of California,
22unless a similar trust has been previously established, for the
23purpose of preserving for the benefit of the minor the portion of
24the minor’s gross earnings pursuant to paragraph (1) of subdivision
25(b) of Section 6752 or pursuant to paragraph (1) of subdivisionbegin delete (c)end delete
26begin insert (d)end insert of Section 6752. The trustee or trustees shall establish the trust
27pursuant to this section within seven business days after the minor’s
28contract is signed by the minor, the third-party individual or
29personal services corporation (loan-out company), and the
30employer.

31(b) Except as otherwise provided in this section, prior to the
32date on which the beneficiary of the trust attains the age of 18
33years or the issuance of a declaration of emancipation of the minor
34under Section 7122, no withdrawal by the beneficiary or any other
35individual, individuals, entity, or entities may be made of funds
36on deposit in trust without written order of the superior court
37pursuant to paragraph (7) of subdivision (b) or paragraph (5) of
38subdivisionbegin delete (c)end deletebegin insert (d)end insert of Section 6752. Upon reaching the age of 18
39years, the beneficiary may withdraw the funds on deposit in trust
P11   1only after providing a certified copy of the beneficiary’s birth
2certificate to the financial institution where the trust is located.

3(c) The trustee or trustees shall, within 10 business days after
4the minor’s contract is signed by the minor, the third-party
5individual or personal services corporation (loan-out company),
6and the employer, prepare a written statement under penalty of
7perjury that shall include the name, address, and telephone number
8of the financial institution, the name of the account, the number
9of the account, the name of the minor beneficiary, the name of the
10trustee or trustees of the account, and any additional information
11needed by the minor’s employer to deposit into the account the
12portion of the minor’s gross earnings prescribed by paragraph (1)
13of subdivision (b) or paragraph (1) of subdivisionbegin delete (c)end deletebegin insert (d)end insert of Section
146752. The trustee or trustees shall attach to the written statement
15a true and accurate photocopy of any information received from
16the financial institution confirming the creation of the account,
17such as an account agreement, account terms, passbook, or other
18similar writings.

19(d) The trust shall be established in California either with a
20financial institution that is and remains insured at all times by the
21Federal Deposit Insurance Corporation (FDIC), the Securities
22Investor Protection Corporation (SIPC), or the National Credit
23Union Share Insurance Fund (NCUSIF) or their respective
24successors, or with a company that is and remains registered under
25the Investment Company Act of 1940. The trustee or trustees of
26the trust shall be the only individual, individuals, entity, or entities
27with the obligation or duty to ensure that the funds remain in trust,
28in an account or other savings plan insured in accordance with this
29section, or with a company that is and remains registered under
30the Investment Company Act of 1940 as authorized by this section.

31(e) Upon application by the trustee or trustees to the financial
32institution or company in which the trust is held, the trust funds
33shall be handled by the financial institution or company in one or
34more of the following methods:

35(1) The financial institution or company may transfer funds to
36another account or other savings plan at the same financial
37institution or company, provided that the funds transferred shall
38continue to be held in trust, and subject to this chapter.

39(2) The financial institution or company may transfer funds to
40another financial institution or company, provided that the funds
P12   1transferred shall continue to be held in trust, and subject to this
2chapter and that the transferring financial institution or company
3has provided written notification to the financial institution or
4company to which the funds will be transferred that the funds are
5subject to this section and written notice of the requirements of
6this chapter.

7(3) The financial institution or company may use all or a part
8of the funds to purchase, in the name of and for the benefit of the
9minor, (A) investment funds offered by a company registered under
10the Investment Company Act of 1940, provided that if the
11underlying investments are equity securities, the investment fund
12is a broad-based index fund or invests broadly across the domestic
13or a foreign regional economy, is not a sector fund, and has assets
14under management of at least two hundred fifty million dollars
15($250,000,000); or (B) government securities and bonds,
16certificates of deposit, money market instruments, money market
17accounts, or mutual funds investing solely in those government
18securities and bonds, certificates, instruments, and accounts, that
19are available at the financial institution where the trust fund or
20other savings plan is held, provided that the funds shall continue
21to be held in trust and subject to this chapter, those purchases shall
22have a maturity date on or before the date upon which the minor
23will attain the age of 18 years, and any proceeds accruing from
24those purchases shall be redeposited into that account or accounts
25or used to further purchase any of those or similar securities, bonds,
26certificates, instruments, funds, or accounts.

begin delete
27

SECTION 1.  

Section 6753 of the Family Code is amended to
28read:

29

6753.  

(a) The trustee or trustees shall establish a trust account,
30that shall be known as a Coogan Trust Account, pursuant to this
31section at a bank, savings and loan institution, credit union,
32brokerage firm, or company registered under the Investment
33Company Act of 1940, that is located in the State of California,
34unless a similar trust has been previously established, for the
35purpose of preserving for the benefit of the minor the portion of
36the minor’s gross earnings pursuant to paragraph (1) of subdivision
37(b) of Section 6752 or pursuant to paragraph (1) of subdivision (c)
38of Section 6752. The trustee or trustees shall establish the trust
39pursuant to this section within seven business days after the minor’s
40contract is signed by the minor, the third-party individual or
P13   1personal services corporation (loan-out company), and the
2employer.

3(b) Except as otherwise provided in this section, prior to the
4date on which the beneficiary of the trust attains 18 years of age
5or the issuance of a declaration of emancipation of the minor under
6Section 7122, no withdrawal by the beneficiary or any other
7individual, individuals, entity, or entities, including the financial
8institution or company in which the trust is held, for purposes of
9collecting fees or service charges assessed for maintenance of the
10trust, may be made of funds on deposit in trust without written
11order of the superior court pursuant to paragraph (7) of subdivision
12 (b) or paragraph (5) of subdivision (d) of Section 6752. Upon
13reaching 18 years of age, the beneficiary may withdraw the funds
14on deposit in trust only after providing a certified copy of the
15beneficiary’s birth certificate to the financial institution where the
16trust is located.

17(c) The trustee or trustees shall, within 10 business days after
18the minor’s contract is signed by the minor, the third-party
19individual or personal services corporation (loan-out company),
20and the employer, prepare a written statement under penalty of
21perjury that shall include the name, address, and telephone number
22of the financial institution, the name of the account, the number
23of the account, the name of the minor beneficiary, the name of the
24trustee or trustees of the account, and any additional information
25needed by the minor’s employer to deposit into the account the
26portion of the minor’s gross earnings prescribed by paragraph (1)
27of subdivision (b) or paragraph (1) of subdivision (c) of Section
286752. The trustee or trustees shall attach to the written statement
29a true and accurate photocopy of any information received from
30the financial institution confirming the creation of the account,
31such as an account agreement, account terms, passbook, or other
32similar writings.

33(d) The trust shall be established in California either with a
34financial institution that is and remains insured at all times by the
35Federal Deposit Insurance Corporation (FDIC), the Securities
36Investor Protection Corporation (SIPC), or the National Credit
37Union Share Insurance Fund (NCUSIF) or their respective
38successors, or with a company that is and remains registered under
39the Investment Company Act of 1940. The trustee or trustees of
40the trust shall be the only individual, individuals, entity, or entities
P14   1with the obligation or duty to ensure that the funds remain in trust,
2in an account or other savings plan insured in accordance with this
3section, or with a company that is and remains registered under
4the Investment Company Act of 1940 as authorized by this section.

5(e) Upon application by the trustee or trustees to the financial
6institution or company in which the trust is held, the trust funds
7shall be handled by the financial institution or company in one or
8more of the following methods:

9(1) The financial institution or company may transfer funds to
10another account or other savings plan at the same financial
11institution or company, provided that the funds transferred shall
12continue to be held in trust, and subject to this chapter.

13(2) The financial institution or company may transfer funds to
14another financial institution or company, provided that the funds
15transferred shall continue to be held in trust, and subject to this
16chapter and that the transferring financial institution or company
17has provided written notification to the financial institution or
18company to which the funds will be transferred that the funds are
19subject to this section and written notice of the requirements of
20this chapter.

21(3) The financial institution or company may use all or a part
22of the funds to purchase, in the name of and for the benefit of the
23minor, (A) investment funds offered by a company registered under
24the Investment Company Act of 1940, provided that if the
25underlying investments are equity securities, the investment fund
26is a broad-based index fund or invests broadly across the domestic
27or a foreign regional economy, is not a sector fund, and has assets
28under management of at least two hundred fifty million dollars
29($250,000,000); or (B) government securities and bonds,
30certificates of deposit, money market instruments, money market
31accounts, or mutual funds investing solely in those government
32securities and bonds, certificates, instruments, and accounts, that
33are available at the financial institution where the trust fund or
34other savings plan is held, provided that the funds shall continue
35to be held in trust and subject to this chapter, those purchases shall
36have a maturity date on or before the date upon which the minor
37will attain the age of 18 years, and any proceeds accruing from
38those purchases shall be redeposited into that account or accounts
39or used to further purchase any of those or similar securities, bonds,
40certificates, instruments, funds, or accounts.

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