BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 702


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          SENATE THIRD READING


          SB  
          702 (McGuire)


          As Amended  August 3, 2016


          Majority vote


          SENATE VOTE:  38-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Labor           |7-0  |Roger Hernández,      |                    |
          |                |     |Patterson, Chu,       |                    |
          |                |     |Linder, McCarty,      |                    |
          |                |     |O'Donnell, Thurmond   |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |18-1 |Bigelow, Bloom,       |Gonzalez            |
          |                |     |Bonilla, Bonta,       |                    |
          |                |     |Calderon, Daly,       |                    |
          |                |     |Eggman, Gallagher,    |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |Holden, Jones,        |                    |
          |                |     |Obernolte, Quirk,     |                    |
          |                |     |Santiago, Wagner,     |                    |
          |                |     |Weber, Wood, Chu      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |








                                                                     SB 702


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          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.


          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 eight hours in one day or more than 48 hours in  
            one week.  (Labor Code Section1391).


          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.   








                                                                     SB 702


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            (Labor Code Section1393).


          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  
            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 Assembly Appropriations  
          Committee, this bill will result in minor and absorbable costs  
          to the Department of Industrial Relations to implement the  
          reporting requirements of the bill.


          COMMENTS:  California's child labor laws generally prohibit any  
          employer employing a minor 16 or 17 years of age for more than  
          eight 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  








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          County.  Several bills over the years have extended the sunset  
          date on this exemption (generally by about five 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.


          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  
          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.


          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.  


          There is no known opposition on file. 




          Analysis Prepared by:                                             
                          Ben Ebbink / L. & E. / (916) 319-2091  FN:  
          0003873