BILL ANALYSIS
AB 402
Page 1
GOVERNOR'S VETO
AB 402 (Davis)
As Amended August 31, 2009
2/3 vote
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|ASSEMBLY: |50-28|(June 3, 2009) |SENATE: |24-13|(September 3, |
| | | | | |2009) |
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|ASSEMBLY: |49-27|(September 9, | | | |
| | |2009) | | | |
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Original Committee Reference: A.,E.,S.,T. & I.M.
SUMMARY : Requires applicants for an Entertainment Work Permit
(EWP) for minors to pay a $50 fee, and directs the Labor
Commissioner (LC) 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.
The Senate amendments :
1)Provide that revenue in the EWP Fund shall be available to the
LC, upon appropriation by the Legislature, to pay for:
a) Issuing EWPs;
b) Enforcing the provisions of Labor Code Section 1308.5,
including 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 EWPs; and,
c) Administering the EWP program, including developing and
enhancing an Internet Web site, developing and updating
informational materials, and providing training to studio
teachers regarding their role in enforcing the requirements
of Labor Code Section 1308.5 and the regulations adopted
pursuant thereto.
AB 402
Page 2
2)Provide that the fee to be submitted to the LC would be $50
until January 1, 2012, and, on and after January 1, 2012, the
fee would be set by the LC in an amount, not to exceed $50.
FISCAL EFFECT : According to the Senate Appropriations
Committee, 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
(GF) of $1.1 million 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 10%, a fee of $50 would generate up
to $2.7 million (56,000 x $50). Funding the EWP program with
this fee also provide a $1.1 million GF savings.
AS PASSED BY THE ASSEMBLY , this bill:
1)Required that an applicant for a EWP pursuant to Section 11753
of Title 8 of the California Code of Regulations to submit to
the LC an application and an application fee of $50.
2)Created a EWP Fund in the State Treasury.
3)Directed the LC to deposit the fee collected pursuant to 1)
above, into the EWP Fund.
COMMENTS : The Senate amendments expound on the policy adopted
in the Assembly by making express the number of set visits the
DLSE must make each year, and authorize the LC to develop and
enhance their training and informational materials and online
presence relating to issuance of EWPs. The Senate also placed a
two-year limitation on the $50 fee level, and established that
amount as a cap on the fee amount in the years following 2012,
at the discretion of the LC. This amendment recognizes that a
variation in the number of permits sought may occur once a fee
is placed upon obtaining EWPs, and thus gives the LC the ability
to react accordingly.
GOVERNOR'S VETO MESSAGE :
AB 402
Page 3
"This bill would require that an application fee of $50 be
submitted at the time a minor applies for a child labor
entertainment work permit.
"There have been previous proposals to move issuance of
entertainment work permits to the local school districts which
already issue work permits. Rather than creating a new fee and
duties for the Department of Industrial Relations, it is
important to administer this program in the most efficient
manner by transferring this function to the schools."
Analysis Prepared by : Dana Mitchell / A.,E.,S.,T. & I.M. /
(916) 319-3450
FN: 0003401