BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 702|
          |Office of Senate Floor Analyses   |                              |
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                                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.












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          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  








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            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  








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            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  








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          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  








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          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


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