BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
402 (Davis)
Hearing Date: 8/17/2009 Amended: 8/17/2009
Consultant: Bob Franzoia Policy Vote: L&IR 5-1
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BILL SUMMARY: AB 402 would require that a fee of $50 be
submitted at the time a minor applies to obtain an entertainment
work permit (EWP) from the Labor Commissioner. This bill would
specify that the fee shall be deposited into the Entertainment
Work Permit Fund and the revenue shall be available to the Labor
Commissioner for the costs of issuing the permit and enforcing
the EWP and administering the EWP program.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
EWP fee ($2,700) annually; $1,100 General
FundSpecial*
savings ongoing
* Entertainment Work Permit Fund
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STAFF COMMENTS: The Division of Labor Standards Enforcement
(DLSE) within the Department of Industrial Relations processes
an estimated 60,000 EWPs annually at a cost to the General Fund
of $1,100,000 for 11 positions. If it is assumed that the
application of a fee is likely to reduce the number of persons
who seek an EWP by ten percent, a fee of $50 would generate up
to $2,700,000 (56,000 x $50). Funding the EWP program with this
fee also provide a $1,100,000 General Fund savings.
As required by this bill, enforcement of the EWP, valid for six
months, would include making at least one unannounced site visit
per quarter to a randomly selected set or production facility
where one or more children are working under such permits.
Administering the program would include developing an Internet
Web site, developing and updating informational materials and
providing training to studio teachers regarding their role in
enforcing the applicable requirements and regulations. In part,
the enforcement of this program is placed upon studio teachers
who are responsible for checking a child performer's compliance
with the program. A studio teacher is a certificated teacher
who holds both a valid and current California Elementary and a
California Secondary teaching credential, which is certified by
the Labor Commissioner. Studio teachers, of which there are 170
to 200, are paid by the employer e.g., a production company or
studio.
At this time, annual enforcement costs are unknown. It is
possible the fee may generate more funding, approximately
$1,600,000 ($2,700,000 - $1,100,000), than is needed for
enforcement, DSLE staff often investigate and referee disputes
between studio teachers and employers. In order to avoid over
collecting fee revenue, staff recommends this bill be amended to
set the fee at $50 for two year and at a maximum of $50
thereafter, as determined by the Labor Commissioner, ongoing.