BILL ANALYSIS Ó AB 2539 Page 1 Date of Hearing: April 20, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2539 (Levine) - As Amended March 30, 2016 ----------------------------------------------------------------- |Policy |Labor and Employment |Vote:|5 - 1 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the Occupational Safety and Health Standards Board (Standards Board) to adopt an occupational safety and health standard for models and sets forth other workplace requirements for models and modeling agencies. Specifically, AB 2539 Page 2 this bill: 1)Prohibits a person from engaging in or carrying on the occupation of a modeling agency without first obtaining a license under existing law related to talent agencies. 2)Classifies a model as an employee of the person for whom the model's services are directly provided. 3)Requires the Standards Board, in consultation with accredited specialists in the prevention and treatment of eating disorders, to adopt an occupational safety and health standard for models no later than December 1, 2017. Requires this standard to be operative September 1, 2018 and fully complied with by December 31, 2018. 4)Requires the standard to address issues including, but not limited to: (1) protection of the model's rights to health care privacy under federal law and all other provisions of law; (2) workplace safety, especially for minors, including protection from sexual exploitation and sexual predators; and (3) prevention and treatment of eating disorders. 5)Provides that this bill shall not apply to persons covered under certain wage orders regulating the broadcasting industry and the motion picture industry. 6)Defines "model" to mean an artist covered under Wage Order 4 of the Industrial Welfare Commission (IWC) who, in the course of his or her occupation, performs modeling services for, or who consents to the transfer of his or her legal right to the use of his or her name, portrait, picture or image for advertising purposes of trade directly to, a retail store, a AB 2539 Page 3 manufacturer, an advertising agency, a photographer, a publishing company, or a modeling agency. 7)Defines "modeling services" to mean the appearance by a model in photographic sessions or the engagement of model in runway, live, filmed, or taped performances requiring him or her to pose, provide an example or standard of artistic expression, or to be a representation to show the construction or appearance of some thing or place for purposes of display or advertising. 8)Defines a "modeling agency" as a person that facilitates an employment opportunity for a model and that holds a valid license under existing law related to talent agencies FISCAL EFFECT: Administrative costs of approximately $420,000 to $450,000 (Labor Enforcement and Compliance Fund) for the Division of Labor Standards Enforcement (DLSE) and Cal/OSHA to develop health and safety standards and to process additional wage claims. These estimates reflect anticipated workload for the first two years of implementation. Ongoing costs for DLSE are estimated to be approximately $112,000 annually. COMMENTS: 1)Purpose. According to the author, this bill protects the health and well-being of models and will also change the messages the fashion industry sends to society about health and beauty. This bill provides that models are employees and receive all worker protections of employees. The bill also requires the adoption of health guidelines for models. AB 2539 Page 4 2)Support. According to the Model Alliance, supporters of the bill, eating disorders are widespread in the fashion industry and are too often dismissed or overlooked. The bill requires the OSHA Standards Board, in consultation with accredited specialists in the prevention and treatment of eating disorders, to adopt an occupational safety and health standard for models. The supporters of this bill also state that many (but not all) modeling agencies are licensed as talent agencies under existing law, affording models the protections that apply to talent agencies, such as registration with the Labor Commissioner and other requirements. This bill would prohibit a person from engaging in or carrying on the occupation of a modeling agency without first procuring a license under the existing law related to talent agencies. Supporters believe that requiring modeling agencies to be licensed and regulated as talent agencies increases the level of financial transparency and accountability in the modeling industry, and protect models from sexual and financial exploitation. 3)Opposition. The Association of Talent Agents (ATA) opposes this bill and state it is unworkable. They state the bill is redundant because it seeks to require what is already required - that modeling agencies engaged in the occupation of procuring or attempting to procure employment for "artists" services (including models) be licensed by the Labor Commissioner. They note that the Labor Commissioner has issued rulings on the fact that models are artists covered under the Talent Agents Act (TAA), and therefore the bill serves no discernable purpose. The ATA also raises concerns over statutorily mandating models as employees. They argue that the law is clear that the AB 2539 Page 5 classification of a worker as either an employee or an independent contractor depends, among other things, on the circumstances of the work performed and the degree of control over the worker. Because the bill requires models to be classified as employees in every case regardless of the circumstances of the particular job, ATA argues the bill does not reflect the realities of the work environment and unfairly prejudices models who exhibit control over their work and structure their business as independent contractors. The ATA also opposes the proposed development of an OSHA workplace health and safety standard for models. They are concerned that the bill provides no definition for what constitutes "healthy" and discourages diversity among body shapes within the industry, with respect to both slender and plus-size models. ATA also expresses concern that the development of such a standard would impose duties upon the modeling agencies, such as making sure that each model it represents has met the standard and is healthy to perform modeling services. Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081