BILL ANALYSIS
AB 402
Page 1
ASSEMBLY THIRD READING
AB 402 (Davis)
As Amended June 1, 2009
Majority vote
ARTS, ENTERTAINMENT, SPORTS 6-2 LABOR AND
EMPLOYMENT 5-1
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|Ayes:|Davis, Silva, |Ayes:|Monning, Bill Berryhill, |
| |Blumenfield, De Leon, | |Eng, Ma, Portantino |
| |Krekorian, Price | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Gaines, Audra Strickland |Nays:|Gaines |
| | | | |
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APPROPRIATIONS 12-5
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|Ayes:|De Leon, Ammiano, Charles | | |
| |Calderon, Davis, Fuentes, | | |
| |Hall, John A. Perez, | | |
| |Price, Skinner, Solorio, | | |
| |Torlakson, Krekorian | | |
| | | | |
|-----+---------------------------+---+--------------------------|
|Nays:|Nielsen, Duvall, Harkey, | | |
| |Miller, | | |
| |Audra Strickland | | |
| | | | |
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SUMMARY : Requires applicants for an Entertainment Work Permit
(EWP) for minors to pay a $50 fee, and directs the Labor
Commissioner to collect and deposit the money into a special
fund in the State Treasury for their use to administer and
enforce EWPs for minors, as provided. Specifically, this bill :
1)Requires that an applicant for a EWP pursuant to Section 11753
of Title 8 of the California Code of Regulations to submit to
the Labor Commissioner an application and an application fee
of $50.
AB 402
Page 2
2)Creates an EWP Fund in the State Treasury.
3)Directs the Labor Commissioner to deposit the fee collected
pursuant to 1) above, into the EWP Fund.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, the Division of Labor Standards Enforcement (DLSE)
currently processes about 60,000 EWPs 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 will
reduce WEP 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.
COMMENTS : According to the author, "One of the most important
protections we provide for professional performing 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 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 10 days. Surprisingly, no one
from the state of California ever follows up on this
requirement. This bill will remedy this situation, by requiring
that DLSE establish a method for tracking EWPs once issued.
This will prevent venue shopping by persons who have already
received a 10 day work permit. 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.
Background: The Coogan Act is enforced by studio teachers
through EWP review . The Coogan law was passed in 1938 in
response to Jackie Coogan's plight. Even though he earned
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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 of 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.
SB 1162 (Burton), Chapter 940, Statutes of 1999, overhauled the
Coogan law. The relevant section of that legislation added the
requirement that the Labor Commission's written consent for
performances of a minor under Labor Code Section 1308.5 be
limited to 10 days, unless a Coogan Trust Account has been
established.
The enforcement of this system is placed upon the studio
teachers, with whom the duty to check a child performer's
paperwork rests. A studio teacher is a certificated teacher who
holds both a California Elementary and a California Secondary
teaching credential, valid and current, certified by the Labor
Commissioner. A studio teacher, in addition to teaching, has the
responsibility for caring and attending to the health, safety,
and morals of minors less than 16 years of age. Studio teachers
are paid by the employer (i.e., Production Company or studio).
Appropriations Committee amendments . This bill was amended in
Appropriations Committee to strike the continuous appropriation.
Please see the policy committee analysis for full discussion of
this bill.
Analysis Prepared by : Dana Mitchell / A.,E.,S.,T. & I.M. /
(916) 319-3450
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