BILL ANALYSIS
AB 2032
Page 1
ASSEMBLY THIRD READING
AB 2032 (Davis)
As Amended May 28, 2010
Majority vote
ARTS, ENTERTAINMENT, SPORTS 5-2 LABOR &
EMPLOYMENT 6-1
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|Ayes:|Davis, Blumenfield, |Ayes:|Swanson, Bill Berryhill, |
| |Charles Calderon, De | |Furutani, Monning, |
| |Leon, Monning | |Yamada, Ma |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Silva, Gaines |Nays:|Gaines |
| | | | |
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APPROPRIATIONS 12-5
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|Ayes:|Fuentes, Ammiano, | | |
| |Bradford, | | |
| |Charles Calderon, Coto, | | |
| |Davis, Monning, Ruskin, | | |
| |Skinner, Solorio, | | |
| |Torlakson, Torrico | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Conway, Harkey, Miller, | | |
| |Nielsen, Norby | | |
| | | | |
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SUMMARY : Provides authorization for the Labor Commissioner (LC)
to collect and deposit any money from an application fee for an
Entertainment Work Permit (EWP) 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 an applicant for a EWP pursuant to the California
Code of Regulations Section 11753 of Title 8 to submit to the
LC an application and authorizes the LC to assess an
application fee, in an amount which shall be set by the LC,
not to exceed $50.
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2)Creates an EWP Fund in the State Treasury.
3)Directs the LC to deposit the fee collected pursuant to 1)
above, 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 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.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, 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)
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.
If the new fee were set at the $50 limit, annual revenue would
be $3 million. Establishment of the fee would probably reduce
EWP applications by an unknown amount. It is likely that the fee
would initially be set at some level below $50, however.
COMMENTS : According to the author, 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
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the Coogan Act. While current law requires the California State
Industrial Relations Division of Labor Standards Enforcement
(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 10 days. Surprisingly, no one from the state of California
ever follows up on this requirement.
AB 2032 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. 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, 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.
Background: the Coogan Act is enforced by studio teachers
through EWP review: The Coogan Act was passed in 1938 in
response to Jackie 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.
The Coogan Act 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 reaches the age of
majority.
SB 1162 (Burton) Chapter 940, Statutes of 1999, overhauls the
Coogan Act. To further strengthen enforcement of the Coogan
Act, the Legislature adopted, and the Governor signed, SB 210
(Burton) Chapter 667, Statutes of 2004, which adds the
requirement that the LC'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
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holds both a California Elementary and a California Secondary
teaching credential, valid and current, certified by the LC.
Studio teacher are paid by the employer.
Appropriations Committee amendments: This bill was amended in
Appropriations Committee to strike the $50 EWP application fee,
and instead authorize the LC to collect a fee not to exceed $50.
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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