BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Kevin Murray, Chairman

                                           2072 (Montanez)
          
          Hearing Date:  8/17/06          Amended: 6/26/06
          Consultant: Nora Lynn           Policy Vote: Labor & IR 5-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   

          AB 2072 generally prohibits those identified as sex offenders  
          subject to public disclosure on the Department of Justice's  
          (DOJ's) Megan's Law website from representing or providing  
          services to minors under the age of 16 in the entertainment  
          industry, with specified exceptions. 
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2006-07      2007-08       2008-09     Fund
           Fee revenue            ($19-$100) ($38-200)   ($38-$200)General

          Screening, administration         $220        $435       
          $435General

          Enforcement            $200       $400        $400      General

          Misdemeanor            Likely minor increase in  
          nonreimbursableLocal
                                 costs offset by fine revenues
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE

          AB 2072 requires those representing minors younger than 16 years  
          of age to submit an application and $25 fee to the Department of  
          Industrial Relations' Division of Labor Standards' Enforcement  
          (DLSE) every two years in order to screen the individuals to  
          determine if they are Megan's Law registrants. Licensed talent  
          agents, those who work with children who must by law be  
          accompanied by their parents or guardians, or those who have  
          only incidental contact with children are exempted. Willful  
          violation of these requirements is a misdemeanor, punishable by  
          up to a $10,000 fine, up to a year in county jail, or both.  










          Additionally, AB 2072 authorizes a person injured by a violation  
          of these requirements to recover up to three times the damages  
          incurred, to restrain or enjoin a violation, or both.

          DLSE has used census data to estimate as many as 12,015  
          businesses in California provide services that are involved in  
          the production, promotion or participation in live performances.  
          The division further identified 2,532 agents, managers for  
          artists, athletes, and other public figures. It's not known how  
          many of this number are already licensed as talent agents and  
          would therefore be exempted from this measure's requirements, or  
          would otherwise not be required to apply to DLSE under this  
          bill, but using these numbers, the division estimates a volume  
          of potential applicants ranging from 5,000 to 20,000. 
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          AB 2072 (Montanez)


          Of the $25 fee AB 2072 authorizes, DOJ would charge DLSE $5-$10  
          per Megan's Law search conducted, leaving DLSE a net fee revenue  
          of $75,000-$400,000 every two years to administer the screening  
          program - answer calls and attend meetings in DLSE field  
          offices, forward applications to DOJ, maintain files and follow  
          up on more complicated cases. While applications are filed every  
          two years, DLSE projects a significant and ongoing workload that  
          will require between four and six full-time staff to process  
          applications and field questions. Enforcement would require an  
          additional three positions and OE&E.

          STAFF NOTES the bill does not specify to where the application  
          funds are to be deposited or from where administration costs are  
          to be paid. The committee may wish to consider an alternate  
          location than the General Fund for these monies.