BILL ANALYSIS
AB 2032
Page 1
Date of Hearing: April 21, 2010
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Sandre Swanson, Chair
AB 2032 (Davis) - As Introduced: February 17, 2010
SUBJECT : Employment of minors: entertainment work permits.
SUMMARY : Requires applicants for an Entertainment Work Permit
(EWP) for minors to pay a $50 dollar 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. Specifically, this
bill :
1)Requires that an applicant for an 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, which
shall be fifty dollars ($50), until January 1, 2012, after
which time the fee shall be set by the LC, but shall not
exceed fifty dollars ($50).
2)Creates an EWP Fund in the State Treasury.
3)Directs the LC to deposit the fee collected, as specified,
into the EWP Fund.
4)Provides 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 minors are working under EWPs.
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.
EXISTING LAW :
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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
behalf of the minor.
FISCAL EFFECT : Unknown
COMMENTS : The author states, that during the budget
negotiations last year, a proposal came forward to eliminate the
role the 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, the author contends that it became clear that what we
needed are more protections for our working children, not less.
The author believes 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 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 presentment 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
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employers. While the author believes the Studio Teachers 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 EWP.
However, there is not any method established in the DLSE for
tracking permits once issued.
The author argues this bill will remedy this situation, by
requiring that DLSE establish a method for tracking EWP's once
issued. This will prevent venue shopping by persons who have
already received a ten-day work permit hoping to avoid opening
up a Coogan Trust Account. 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.
Finally, the author states, AB 2032 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. He points out that the fee is tax deductible.
A similar bill, AB 402 (Davis) was vetoed last year; the author
responds : The Governor vetoed AB 402 (Davis), which was similar
to this bill, saying,
"There have been previous proposals to move issuance of EWPs
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."
In response, the author offers his opinion that this bill does
not create new duties, as the DIR is already responsible for
issuing EWPs, and is already responsible for child worker safety
in the work place. "AB 2032 simply provides DIR with a funding
stream to do the work they are charged with under current law."
The author also questions how schools can issue work permits to
preschool age children, as actors begin their careers literally
at birth; or whether overburdened schools are best suited to
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issue EWPs to those child actors who attend Charter schools,
private schools, home schools, or reside in other states.
Finally, the author states that he is working with the
Governor's staff to address any lingering concerns they may
have.
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 refer to the Assembly
Arts, Entertainment, Sports, Tourism & Internet Media policy
committee analysis.
PRIOR LEGISLATION :
AB 402 (Davis) of 2009, similar to this bill, would have
required a $50 fee be submitted at the time when a minor applies
for an Entertainment Work Permit (EWP) and directed the LC to
collect and deposit the money into a special fund for the
administration and enforcement of EWPs for minors, as
provided. AB 402 was vetoed by the Governor.
SB 210 (Burton) Chapter 667, Statutes of 2004, added the
requirement that the LC's written consent for performances of a
minor under Labor Code Section 1308.5 be limited to ten days,
unless a Coogan Trust Account has been established.
SB 1162 (Burton) Chapter 940, Statutes of 1999, overhauled the
Coogan Act. Applicable to both court-approved and
non-court-approved minors' contracts for creative or artistic
employment, SB 1162 requires 15% of a minor's earnings to be set
aside and deposited into a "Coogan Trust Account", invested in
low-risk financial vehicles, and blocked from use until the
minor is emancipated or reaches age 18. To enforce the
set-aside, SB 1162 imposes a duty on the employer to make the
deposit directly into the minor's Coogan Trust Account, which a
parent or guardian is required to open at an insured financial
institution and to invest in a manner consistent with that of a
trustee. Annual accounting is required, and court supervision
of trust accounts for minors with court-approved contracts
continues until the minor turns 18.
AB 2032
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REGISTERED SUPPORT / OPPOSITION :
Support
Screen Actors Guild
Opposition
None on file.
Analysis Prepared by : Lorie Erickson / L. & E. / (916)
319-2091