BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 702


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          Date of Hearing:  June 22, 2016


                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT


                               Roger Hernández, Chair


          SB  
          702 (McGuire) - As Proposed to be Amended June 22, 2016


          SENATE VOTE:  38-0


          SUBJECT:  Employment of minors:  agricultural packing plants


          SUMMARY:  Extends the sunset date by five years on an exemption  
          from child labor laws that allows minors to work additional  
          hours in agricultural packing plants during peak harvest season  
          in Lake County.  Specifically, this bill:  


          1)Extends an exemption for specified agricultural packing plants  
            in Lake County to employ minors that are 16 or 17 years of age  
            to work for up to 10 hours per day and more than 48 hours (but  
            not more than 60 hours) per week during harvest season when  
            school is not in session to January 1, 2022.


          2)Requires the Labor Commissioner (LC), on or before November 1,  
            2020, to issue a written report to the Legislature on the  
            general working conditions of minors employed in the  
            agricultural packing industry from October 1, 2016 to October  
            1, 2020.










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          3)Makes other minor and technical changes.


          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 LC 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 LC may require inspections of  
            agricultural packing plants prior to issuing the exemption. 


          (Labor Code §1393).
          3)Allows the LC, 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. 


          4)Sunsets this exemption on January 1, 2017.


          5)Requires the LC to inspect the affected Lake County  
            agricultural packing plants before issuing exemptions, and  
            also requires the affected agricultural packing plants file a  
            written report detailing the previous year's payroll,  
            including the age and number of minors employed, as well as  
            the hours they worked.


          6)Requires the LC, on or before November 1, 2016, to issue a  








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            written report to the Legislature on the general working  
            conditions of minors employed in the agricultural packing  
            industry from March 1, 2011 to October 1, 2016.


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, the Department of Industrial Relations indicates that  
          costs to produce the report on working conditions in the Lake  
          County packing industry would be minor and absorbable.





          COMMENTS:  California's child labor laws generally prohibit 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.  However,  
          for the past two decades California law has contained a special  
          exemption for agricultural packing plants in Lake County.   
          Several bills over the years have extended the sunset date on  
          this exemption (generally by about 5 years) and required various  
          reporting requirements of the LC.  This bill proposes to extend  
          the sunset date on the exemption by five years, or until January  
          1, 2022.


          Background on the Lake County Packing Plant Exemption


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


          This exemption has been characterized by supporters 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  








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          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.  Supporters contend that this  
          exemption has proved successful and the participation of youth  
          workers has now become an economic imperative for Lake County  
          agricultural employers.


          Most Recent Labor Commissioner Report


          As mentioned above, prior legislation to extend the sunset date  
          on this exemption has generally required the LC to issue a  
          report on the general working conditions of minors employed in  
          the agricultural packing industry.  


          The most recent report from the LC was issued on March 24, 2011.  
           With respect to the number of minors employed in the  
          agricultural packing industry, the report stated:


            "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  








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            an additional 99 minors under the provisions of these  
            permits."          








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


            "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."


          Existing law requires the LC to issue a report on or before  
          November 1, 2016 that describes the general working conditions  
          of minors employed in the agricultural packing industry during  
          the period on March 1, 2011 to October 1, 2016.


          Arguments in Support


          According to the author, the exemption for minors working in  
          agricultural packing plants in Lake County was originally  
          established to help labor shortages during August's pear picking  
          season. The sunset has been extended three times with no  
          opposition since its original creation.  Existing law allows the  
          LC, upon approval from the Lake County Board of Education, to  
          permit agricultural packing plants to employ minors enrolled in  
          Lake County schools when they are not in session.








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          The author states that this exemption does not affect any  
          California overtime laws.  Existing state law also requires the  
          LC to issue a written report to the Legislature on the general  
          working conditions of minors employed in agricultural packing  
          plants by November 2016.  The most recent legislative report has  
          shown no systematic issues.


          Supporters similarly note that Lake County's late summer pear  
          season typically coincides with peak seasons of other labor  
          intensive industries like tourism, resulting in packing plant  
          worker shortages.  They state that the packing work exemption  
          for minors in Lake County has relieved this shortage and  
          provided significant economic benefits to teens and families.  


          No known opposition on file. 


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Farm Bureau Federation


          California Fresh Fruit Association


          California Pear Growers








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          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.




          Analysis Prepared by:Ben Ebbink / L. & E. / (916)  
          319-2091