BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 702| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 702 Author: McGuire (D), et al. Amended: 8/3/16 Vote: 21 SENATE LABOR & IND. REL. COMMITTEE: 5-0, 1/13/16 AYES: Mendoza, Stone, Jackson, Leno, Mitchell SENATE APPROPRIATIONS COMMITTEE: 7-0, 1/21/16 AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen SENATE FLOOR: 38-0, 1/26/16 AYES: Allen, Anderson, Beall, Berryhill, Block, Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Runner, Stone, Vidak, Wieckowski NO VOTE RECORDED: Bates, Wolk ASSEMBLY FLOOR: 77-1, 8/18/16 - See last page for vote SUBJECT: Employment of minors: agricultural packing plants SOURCE: Author DIGEST: This bill extends 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. SB 702 Page 2 Assembly Amendments were minor and technical. 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) 3)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. 4)Requires the Labor Commissioner 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. 5)Requires the that Labor Commissioner, on or before November 1, 2016, issue a written report to the Legislature on the SB 702 Page 3 general working conditions of minors employed in Lake County agricultural packing plants from March 1, 2011 to October 1, 2016. 6)Requires that the Lake County-specific exemption described above sunsets on January 1, 2017. (Labor Code §1393.5) This bill: 1)Extends the operation of the exemption for agricultural packing plants to employ the specified minors in Lake County until January 1, 2022. 2)Requires that Labor Commissioner, on or before November 1, 2020, 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, 2020. 3)Makes minor and technical changes. Comments 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 SB 702 Page 4 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." 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." FISCAL EFFECT: Appropriation: No Fiscal SB 702 Page 5 Com.:YesLocal: No According to the Senate Appropriations Committee, the Department of Industrial Relations reports minor and absorbable costs to implement the reporting requirements of this bill. SUPPORT: (Verified8/18/16) 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: (Verified 8/18/16) None received ARGUMENTS IN SUPPORT: 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 reported 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 SB 702 Page 6 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. ASSEMBLY FLOOR: 77-1, 8/18/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gordon, Gray, Grove, Hadley, Harper, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Wilk, Williams, Wood, Rendon NOES: Gonzalez NO VOTE RECORDED: Roger Hernández, Weber Prepared by:Gideon L. Baum / L. & I.R. / (916) 651-1556 8/19/16 19:21:42 **** END ****