BILL ANALYSIS
AB 2032
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Date of Hearing: May 5, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2032 (Davis) - As Introduced: February 17, 2010
Policy Committee: Arts Vote:5-2
Labor 6-1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes a fee for Entertainment Work Permits
(EWPs) for minors and places new program duties on the
Department of Industrial Relations (DIR).
1.Requires applicants for an EWP to submit an application to the
Labor Commissioner and pay a $50 fee. After January 1, 2012,
the fee is to be set by the Labor Commissioner at a level
sufficient to carry out the department's statutory
responsibilities regarding EWPs.
2.Directs fee revenues to the newly established EWP Fund to the
Labor Commissioner to pay for the costs of issuing EWP and
enforcing the use of EWPs, including the following specified
duties:
a. Making at least one unannounced visit per quarter to
randomly selected locations where one or more children
are working under EWPs.
b. Developing and enhancing an internet website,
training materials, and providing training to studio
teachers.
FISCAL EFFECT
The DIR indicates that the additional enforcement and other
program duties specified in this bill would require four
additional positions, and increase costs by $400,000.
The department's Division of Labor Standards Enforcement (DLSE)
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current workload includes processing about 60,000 EWP permits at
an annual cost of about $800,000 for 11 positions. As part of
the 2010-11 Budget Act, General Fund support for the division
was removed and replaced with funding from the newly-created
Labor Enforcement and Compliance Fund, which is financed by a
surcharge on employers.
The new $50 fee would result in $3 million in fee revenue
annually. However, establishment of the fee would probably
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 the expanded program.
It is likely that the fee would be reduced in 2012 pursuant to
the bill's provisions.
COMMENTS
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
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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.EWPs 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.
5.Prior Legislation . This bill is substantially similar to AB
402 (Davis) of 2009, which was vetoed. The governor argued
that, "?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 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."
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081