BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 402
                                                                  Page  1

          Date of Hearing:   April 22, 2009

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                              William W. Monning, Chair
                  AB 402 (Davis) - As Introduced:  February 23, 2009
          
          SUBJECT  :   Employment: entertainment work permits for minors.

           SUMMARY  :   Requires a $50 fee be submitted at the time when a  
          minor applies for an Entertainment Work Permit (EWP) and directs  
          the Labor Commissioner (LC) to collect and deposit the money  
          into a special fund for the administration and enforcement of  
          EWPs for minors, as provided.    Specifically,  this bill  :  

          1)Requires that an applicant for an EWP submit to the LC an  
            application fee of fifty dollars ($50) with their application.  


          2)Creates an Entertainment Work Permit Fund in the State  
            Treasury.

          3)Directs the LC to deposit the EWP fee collected into the  
            Entertainment Work Permit Fund. 

          4)Provides that, notwithstanding Government Code Section 13340,  
            the revenue in the Entertainment Work Permit Fund is  
            continuously appropriated to the LC to pay for the costs of  
            issuing entertainment work permits and for enforcing the  
            provisions of Labor Code Section 1308.5.

           EXISTING LAW  

          1)Requires the written consent of the LC for the employment of a  
            minor in the entertainment industry, as specified. (Labor Code  
            section 1308.5)

          2)Requires an entertainment work permit to be obtained from the  
            LC for a minor in order for them to be employed in the  
            entertainment industry.

          3)Provides that once written consent is given by the LC, as  
            specified, that consent shall be void after the expiration of  
            ten business days from the date the written consent was  
            granted unless it is attached to a true and correct copy as  
            evidence that a "Coogan Trust Account" has been established on  








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            behalf of the minor. 

           FISCAL EFFECT  :   Unknown

           1)COMMENTS  :  According to the author, "During the budget  
            negotiations earlier this year, a proposal came forward to do  
            away with the role the California State Industrial Relations  
            Division of Labor Standards Enforcement (DLSE) plays in  
            issuing EWPs for minors, as a cost saving measure.  It was  
            thought that simply having a work permit, which are currently  
            issued by school officials, was sufficient protection for our  
            children working in the field of entertainment.  While looking  
            into the issue of work permits for minors in the entertainment  
            field, it became clear that what we need is more protections  
            for our working children, not less.

            "One of the most important protections we provide for our  
            working children is protection of their assets from misuse,  
            through a provision in law known as the Coogan Act.  This Act  
            is named after the famous actor, Jackie Coogan, whose mother  
            and stepfather squandered over four million dollars that he  
            earned as a child television and movie star in the 1930's.  

            "While current law requires the DLSE to issue applicants a EWP  
            upon presentation of proof of school attendance, adequate  
            grades and health records, in order for the permit to be  
            accepted by an employer as valid, the EWP must have proof that  
            a Coogan Account exists for that child attached to it.   
            Without the Coogan Account, the permit expires in ten days.   
            Surprisingly, no one from the state of California ever follows  
            up on this requirement.  The entire state plan for protecting  
            the welfare of California's working child performers is  
            delegated to the employers.  While I believe the studio  
            teachers, who enforced the Coogan Act through EWP review, are  
            persons of integrity and great value, this situation places  
            them in a situation that appears to be a conflict of interest.  
             The state should provide minimal oversight at the least, in  
            order to adequately protect our working children and prevent  
            undue pressure on the Studio Teachers to be 'production  
            friendly.' 

            "Under the current statutory scheme, DLSE is supposed to help  
            enforce this important protection by mandating that a person  
            must wait six months before the DLSE will issue another  
            Entertainment Work Permit.  However, there is not any method  








                                                                  AB 402
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            established in the DLSE for tracking permits once issued.   
            Therefore, this protection is also illusory.  Finally, this  
            bill will provide a funding stream to offset the costs of  
            these protections, by adding a minimal fee to the application  
            for EWP, as other states have already done."

          The author's office states that it would like the bill to go  
          further by requiring that DLSE establish a method for tracking  
          EWPs once issued.  This will prevent venue shopping by persons  
          who have already received a ten day work permit.  This bill will  
          also have a provision to require DLSE to make unannounced visits  
          to the workplace of child performers, in order to ascertain  
          whether the performer's paperwork is in order - adding a second  
          level of protection.  

          The Screen Actors Guild, who supports this bill, believes under  
          the current structure there is an inadequate system to monitor  
          and track the work permits issued to minors in the entertainment  
          industry.  They state that by creating a "Work Permit Fund" to  
          enforce regulations that protect the young actors the bill will  
          be creating a safer more secure work environment.

          For more detailed background information please see the  
          Committee on Arts, Entertainment, Sports, Tourism and Internet  
          Media policy committee analysis.

           REGISTERED SUPPORT / OPPOSITION  :   

          Support 
           
          Screen Actors Guild

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Lorie Erickson / L. & E. / (916)  
          319-2091