BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2032 (Davis)
          
          Hearing Date:  7/15/2010        Amended: 5/28/2010
          Consultant:  Bob Franzoia       Policy Vote: L&IR 4-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 2032 would require a fee 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, which would be set by the Labor Commissioner in an  
          amount not to exceed $50, 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 administering the EWP program.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           EWP fee                Unknown, potentially up to ($2,700)  
          Special*
                                 annually   

                                 $767 to $1,100 savings one time  General
                                                        
          * Entertainment Work Permit Fund
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: Estimates suggest 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 $767,000 to $1,100,000.  The number of  
          positions associated with EWP oversight is unknown at this time.  
           If it is assumed that the application of a fee is likely to  
          reduce the number of persons who seek EWPs, which are valid for  
          six months pursuant to subdivision (b) of Section 11753 of Title  
          8 of the California Code of Regulations, by ten percent, a fee  
          of $50 would generate up to $2,700,000 (27,000 minors x $50 x 2)  
          annually and would eliminate the need for any General Fund  
          support.

          As required by this bill, enforcement of the EWP 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, for example, a production  
          company or studio.  DSLE staff investigates and referees  
          disputes between studio teachers and employers.  


          Page 2
          AB 2032 (Davis)

          This bill is nearly identical to AB 402 (Davis) 2009 which was  
          vetoed by the Governor with the following message:

          This bill would require than 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 create 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.