BILL ANALYSIS                                                                                                                                                                                                    Ó





          SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS
                             Senator Tony Mendoza, Chair
                                2015 - 2016  Regular 

          Bill No:               SB 702       Hearing Date:    January 13,  
          2016
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          |Author:    |McGuire                                              |
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          |Version:   |January 4, 2016                                      |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Gideon L. Baum                                       |
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            Subject:  Employment of minors:  agricultural packing plants


          KEY ISSUE
          
          Should the Legislature extend a Lake County-specific exemption  
          of child labor law that allows minors to work during the peak  
          agricultural season when school is not in session?

          ANALYSIS
          
          Existing law:
          
             1)   Prohibits any employer employing a minor 16 or 17 years  
               of age for more than 8 hours in one day or more than 48  
               hours in one week. (Labor Code §1391)
           
              2)   Allows the Labor Commissioner to issue exemptions for  
               agricultural packing plants to employ minors that are 16 or  
               17 years of age to work for up to 10 hours per day during  
               peak harvest season when school is not in session.  The  
               Labor Commissioner may require inspections of agricultural  
               packing plants prior to issuing the exemption. 
             (Labor Code §1393)

          Existing law also:








          SB 702 (McGuire)                                        Page 2  
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             1)   Allows the Labor Commissioner, upon receiving written  
               approval from the Lake County Board of Education, to issue  
               exemptions to agricultural packing plants to employ minors  
               enrolled in schools located in Lake County to work for up  
               to 10 hours per day and more than 48 hours, but not more  
               than 60 hours, per week during peak harvest season, when  
               school is not in session. This exemption will sunset on  
               January 1, 2017.

             2)   Requires the Labor Commissioner to inspect the affected  
               Lake County agricultural packing plants before issuing  
               exemptions, and also requires the affected agricultural  
               packing plants files a written report detailing the  
               previous year's payroll, including the age and number of  
               minors employed, as well as the hours they worked.  
           
              3)   Requires the that Labor Commissioner, on or before  
               November 1, 2016,  issues a written report to the  
               Legislature on the general working conditions of minors  
               employed in Lake County agricultural packing plants from  
               March 1, 2011 to October 1, 2016.  
            
              4)   Requires that the Lake County-specific exemption  
               described above sunsets on January 1, 2017. (Labor Code  
               §1393.5) 
            
           This bill would: 
          
             1)   Extend the operation of the exemption for agricultural  
               packing plants to employ the specified minors in Lake  
               County until January 1, 2027.

             2)   Require that Labor Commissioner, on or before November  
               1, 2025, issue a written report to the Legislature on the  
               general working conditions of minors employed in Lake  
               County agricultural packing plants from October 1, 2016 to  
               October 1, 2026.  

              3)   Make minor and technical changes.


          COMMENTS
          








          SB 702 (McGuire)                                        Page 3  
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          1. Need for this bill?

            The exemption for minors working in agricultural packing  
            plants in Lake County was originally enacted in 1996.   
            Proponents of the exemption have traditionally stated that it  
            reflects the unique industry and labor market requirements of  
            Lake County.

            This exemption has been characterized as necessary to help  
            deal with the labor shortage in Lake County's agricultural  
            industry during harvest time each year in August.  The  
            pear-packing season lasts only four to six weeks and coincides  
            with an increase in tourism, which is considered the other  
            large industry in Lake County.  With both tourism and  
            agriculture at peak activity, the available labor pool is  
            severely limited.  

            Therefore, it is argued that the employment of minors during  
            this time is necessary and mutually beneficial for both the  
            minors employed and growers.   Proponents contend that this  
            exemption has proved successful and the participation of youth  
            workers has now become an economic imperative for Lake County  
            agricultural employers.

          2.  2011 Labor Commissioner Report on Minors in Agricultural  
            Packing Plants in Lake County:  

            The most recent annual report on employment of minors in  
            agricultural packing plants was submitted on March 24, 2011.

            With respect to the number of minors employed in the industry,  
            the report stated the following:

            "According to records of the Lake County agricultural packing  
            plant employer operating with an approved exemption in 2010, a  
            total of 24 minors aged 16 and 17 years old were employed  
            during the 2010 peak packing season. Of those 24, one  
            individual turned 18 early in the season. Two minors aged 15  
            years old were employed on a schedule of no more than 8 hours  
            per day and/or 40 hours a week. 

            The seven additional packing operations with approved  
            exemptions statewide in 2010 were granted approval to employ  
            an additional 99 minors under the provisions of these  
            permits."







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            With respect to the number of exemptions denied due to  
            violations, the report stated following:

            "At the conclusion of the 2009 season, one employer who  
            historically held an approved exemption was found, upon  
            inspection, to be in violation of multiple wage and hour laws,  
            and was cited. This employer was told at the end of the 2009  
            season that it would not be eligible for an exemption for the  
            2010 season and did not apply."

          3.  Proponent Arguments  :
            
            According to the author's office, the deadline should be  
            extended to help deal with the labor shortages in Lake  
            County's agricultural industry during harvest time in August.   
            The pear-packing season lasts only four to six weeks and  
            coincides with the pick-up in tourism, the other large labor  
            industry in Lake County.  With both tourism and agriculture at  
            peak activity, the available labor pool is limited.  

            In 2007, the Lake County Employment Development Department  
            (EDD) branch office reports that the labor shortage last  
            season was "extreme", resulting in the loss of $2.5 million in  
            lost pears, and would have been exacerbated by an absence of  
            minors working in the agricultural packing plants.   The EDD  
            also reported that total summer wages were in excess of  
            $60,000 for the participating minors, allowing students to  
            focus on academic, rather than economic, issues during the  
            school year.  

          4.  Prior Legislation  :

            SB 1988 (Thompson), Chapter 1117, Statutes of 1996, created  
            the exemption for Lake County agricultural plants, and was  
            originally required to sunset on January 1, 1999.

            SB 912 (Chesbro), Chapter 345, Statutes of 2001, added the  
            inspection and reporting requirements to the Legislature for  
            the Labor Commissioner, the reporting requirement to the Labor  
            Commissioner by the agricultural packing plants, and extended  
            the sunset to January 1, 2005.

            SB 319 (Wiggins), Chapter 296, Statutes of 2007 extended the  
            sunset to January 1, 2012.







          SB 702 (McGuire)                                        Page 5  
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            AB 1398 (Chesbro), Chapter 489, Statutes of 2011, extended the  
            sunset to January 1, 2017.


          SUPPORT
          
          California Farm Bureau Federation
          California Fresh Fruit Association
          California Pear Growers
          California Women for Agriculture, Lake County Chapter
          County of Lake Board of Supervisors-Anthony W. Farrington
          Kelseyville High School
          Lake County Farm Bureau
          Lake County Office of Education

          OPPOSITION
          
          None on file.

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