BILL ANALYSIS
AB 402
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Date of Hearing: May 6, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 402 (Davis) - As Introduced: February 23, 2009
Policy Committee: Arts Vote:6-2
Labor 5-1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill:
1.Requires applicants for an Entertainment Work Permit (EWP) for
minors to submit an application to the Labor Commissioner and
pay a $50 fee.
2.Directs fee revenues to the newly established EWP Fund and
continuously appropriates these monies to the Labor
Commissioner to pay for the costs of issuing EWP and enforcing
the use of EWPs.
FISCAL EFFECT
The Division of Labor Standards Enforcement (DLSE) currently
processes about 60,000 EWP permits annually at a cost of about
$1.1 million for 11 positions. Given this workload, the $50 fee
would result in $3 million in fee revenue annually. However,
the division expects establishment of the fee to reduce EWP
applications by an unknown but potentially significant amount.
Nevertheless, even if workload declined by one-third, fee
revenue would still total $2 million, which is more than would
be needed to administer a smaller program. The division could
therefore use any additional revenues to establish enforcement
activities, as called for in the bill.
The continuous appropriation provided in this bill is contrary
to the general policy of this committee.
COMMENTS
AB 402
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1.Purpose . The author notes that for several years the
administration has proposed eliminating the EWP program in
lieu of the school-administered work permit process. The
author believes that, with regard to the employment of minors
in the entertainment industry, "it became clear that what we
need is more protections for our working children, not less."
2.Background . According to the Department of Industrial
Relations' website, except in limited circumstances, all
minors under 18 years of age employed in the state must have a
permit to work, which they obtain through their school. In
addition to the work permit, minors age 15 days to 18 years
employed in the entertainment industry must have an EWP, and
employers must have a permit to employ, both permits being
issued by the Division of Labor Standards Enforcement.
The Labor Code further provides that if the Labor Commissioner
provides written consent pursuant to Labor Code Section 1308.5
for the employment of a minor, that consent shall be void
after 10 business days, unless it is attached to a correct
copy of the trustee's statement evidencing establishment on
behalf of the minor of a "Coogan Trust Account," in which case
the written consent shall be valid for a six-month period.
3.The Coogan law was passed in 1938 in response to Jackie
Coogan's plight. Even though he earned millions as a child
actor, Coogan was surprised to find out when he reached
adulthood that his entire earnings were depleted, because his
mother and stepfather spent all his money (legally) as the law
at the time considered his earnings to be his parents
property. The Coogan law was enacted to preserve a portion of
a minor's earnings under an employment contract for creative
or artistic services, for the minor's use when he or she turns
18 years of age or becomes legally emancipated.
4.EWP Fees in Other States . According to the Screen Actors
Guild, four states currently charge a fee for issuing EWPs.
New York and Massachusetts charge production companies to
employ minors. New York's initial registration fee is $350,
with a $200 renewal fee. This permit is valid for up to 3
years. Massachusetts charges $100, but their permit is only
valid for a single production. Nebraska and Wisconsin have a
fee of $10, and $5 respectively, which is paid by the actor.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081
AB 402
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