BILL ANALYSIS                                                                                                                                                                                                    �






                 Senate Committee on Labor and Industrial Relations
                                 Ted W. Lieu, Chair

          Date of Hearing: June 8, 2011                2011-2012 Regular 
          Session                              
          Consultant: Gideon L. Baum                   Fiscal:Yes
                                                       Urgency: No
          
                                  Bill No: AB 1398
                                   Author: Chesbro
                         Version: As Amended March 31, 2011
          

                                       SUBJECT
          
                 Employment of minors: agricultural packing plants.


                                      KEY ISSUE

          Should the Legislature extend the sunset on a Lake 
          County-specific exemption on minors working in agricultural 
          packing plants?
          

                                       PURPOSE
          
          To extend a Lake County-specific exemption of child labor law 
          that allows minors to work during the peak agricultural season 
          when school is not in session.


                                      ANALYSIS
          
           Existing law  prohibits any employer employing a minor 16 or 17 
          years of age for more than 8 hours in one day or more than 48 
          hours in one week.
           
          Existing law  allows the Labor Commissioner to issue exemptions 
          for agricultural packing plants to employ minors that are 16 or 
          17 years of age to work for  up to 10 hours per day  during peak 
          harvest season when school is not in session.  The Labor 
          Commissioner may require inspections of agricultural packing 
          plants prior to issuing the exemption.

           Existing law  , which sunsets January 1, 2012, allows the Labor 









          Commissioner, upon receiving written approval from the Lake 
          County Board of Education, to issue exemptions to agricultural 
          packing plants to employ minors enrolled in schools located in 
          Lake County to work  for up to 10 hours per day and more than 48 
          hours  , but not more than 60 hours, per week during peak harvest 
          season, when school is not in session.   

           Existing law  requires the Labor Commissioner to inspect the 
          affected agricultural packing plants before issuing exemptions, 
          and the affected agricultural packing plants must file a written 
          report detailing the previous year's payroll, including the age 
          and number of minors employed, as well as the hours they worked. 
           
           
          Existing law  requires the Labor Commissioner to issue an annual 
          written report to the Legislature on the general working 
          conditions of minors employed in agricultural packing plants. 
           
          This bill  would extend the operation of the exemption for 
          agricultural packing plants to employ the specified minors in 
          Lake County until January 1, 2017.  



                                      COMMENTS
          
          1.  Need for this bill?

            The exemption for minors working in agricultural packing 
            plants in Lake County was originally enacted in 1996.  
            Proponents of the exemption have traditionally stated that it 
            reflects the unique industry and labor market requirements of 
            Lake County.

            This exemption has been characterized as necessary to help 
            deal with the labor shortage in Lake County's agricultural 
            industry during harvest time each year in August.  The 
            pear-packing season lasts only four to six weeks and coincides 
            with an increase in tourism, which is considered the other 
            large industry in Lake County.  With both tourism and 
            agriculture at peak activity, the available labor pool is 
            severely limited.  
          Hearing Date:  June 8, 2011                              AB 1398  
          Consultant: Gideon L. Baum                               Page 2

          Senate Committee on Labor and Industrial Relations 
          









            Therefore, it is argued that the employment of minors during 
            this time is necessary and mutually beneficial for both the 
            minors employed and growers.   Proponents contend that this 
            exemption has proved successful and the participation of youth 
            workers has now become an economic imperative for Lake County 
            agricultural employers.

          2.  2011 Labor Commissioner Report on Minors in Agricultural 
            Packing Plants in Lake County:  

            The most recent annual report on employment of minors in 
            agricultural packing plants was submitted on March 24, 2011.

            With respect to the number of minors employed in the industry, 
            the report stated the following:

            "According to records of the Lake County agricultural packing 
            plant employer operating with an approved exemption in 2010, a 
            total of 24 minors aged 16 and 17 years old were employed 
            during the 2010 peak packing season. Of those 24, one 
            individual turned 18 early in the season. Two minors aged 15 
            years old were employed on a schedule of no more than 8 hours 
            per day and/or 40 hours a week. 

            The seven additional packing operations with approved 
            exemptions statewide in 2010 were granted approval to employ 
            an additional 99 minors under the provisions of these 
            permits."

                    
            With respect to the number of exemptions denied due to 
            violations, the report stated following:

            "At the conclusion of the 2009 season, one employer who 
            historically held an approved exemption was found, upon 
            inspection, to be in violation of multiple wage and hour laws, 
            and was cited. This employer was told at the end of the 2009 
            season that it would not be eligible for an exemption for the 
            2010 season and did not apply."

          3.  Proponent Arguments  :
          Hearing Date:  June 8, 2011                              AB 1398  
          Consultant: Gideon L. Baum                               Page 3

          Senate Committee on Labor and Industrial Relations 
          








            
            According to the author's office, the deadline should be 
            extended to help deal with the labor shortages in Lake 
            County's agricultural industry during harvest time in August.  
            The pear-packing season lasts only four to six weeks and 
            coincides with the pick-up in tourism, the other large labor 
            industry in Lake County.  With both tourism and agriculture at 
            peak activity, the available labor pool is limited.  

            In 2007, the Lake County Employment Development Department 
            (EDD) branch office reports that the labor shortage last 
            season was "extreme", resulting in the loss of $2.5 million in 
            lost pears, and would have been exacerbated by an absence of 
            minors working in the agricultural packing plants.   The EDD 
            also reported that total summer wages were in excess of 
            $60,000 for the participating minors, allowing students to 
            focus on academic, rather than economic, issues during the 
            school year.  

          4.  Prior Legislation  :

            SB 1988 (Thompson), Statutes of 1996, Chapter 1117, created 
            the exemption for Lake County agricultural plants, and was 
            originally to sunset January 1, 1999.

            SB 912 (Chesbro), Statutes of 2001, Chapter 345, added the 
            inspection and reporting requirements to the Legislature for 
            the Labor Commissioner, the reporting requirement to the Labor 
            Commissioner by the agricultural packing plants, and extended 
            the sunset to January 1, 2005.

            SB 319 (Wiggins), Statutes of 2007, Chapter 296, extended the 
            sunset to January 1, 2012.


                                       SUPPORT
          
          California Grape and Tree Fruit League (Sponsor)
          

                                     OPPOSITION
          
          Hearing Date:  June 8, 2011                              AB 1398  
          Consultant: Gideon L. Baum                               Page 4

          Senate Committee on Labor and Industrial Relations 
          








          None on file.








































          Hearing Date:  June 8, 2011                              AB 1398  
          Consultant: Gideon L. Baum                               Page 5

          Senate Committee on Labor and Industrial Relations