BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1398|
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                                 THIRD READING


          Bill No:  AB 1398
          Author:   Chesbro (D)
          Amended:  7/7/11 in Senate
          Vote:     21

           
           SENATE LABOR & INDUSTRIAL RELATIONS COMM.  :  6-0, 6/8/11
          AYES:  Lieu, Wyland, DeSaulnier, Leno, Runner, Yee
          NO VOTE RECORDED:  Padilla

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  75-0, 5/26/11 - See last page for vote


           SUBJECT  :    Employment of minors:  agricultural packing 
          plants

           SOURCE  :     California Grape and Tree Fruit League


           DIGEST  :    This bill (1) extends, from January 1, 2012 to 
          January 2017, the authority of the Labor Commissioner to 
          allow minors 16 or 17 years of age who reside in Lake 
          County to work in agricultural packing plants up to 60 
          hours per week during peak harvest season, (2) changes the 
          written reporting requirement s of affected employers to 
          require a written report regarding payroll to be filed 
          annually without a specific reporting date, (3) changes the 
          requirements for the Labor Commission to issue instead of 
          annual report, a single written report on the working 
          conditions of minors employed in the agricultural packing 
          industry, which is to be filed by November 1, 2016, and 
                                                           CONTINUED





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          cover the previous five-and one-half year period from March 
          1, 2011 to October 1, 2016.

           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:

          1. Extends, from January 1, 2012 to January 2017, the 
             authority of the Labor Commissioner to allow minors 16 
             or 17 years of age who reside in Lake County to work in 
             agricultural packing plants up to 60 hours per week 
             during peak harvest season.

          2. Changes the written reporting requirement s of affected 







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             employers to require a written report regarding payroll 
             to be filed annually without a specific reporting date.

          3. Changes the requirements for the Labor Commission to 
             issue instead of annual report, a single written report 
             on the working conditions of minors employed in the 
             agricultural packing industry, which is to be filed by 
             November 1, 2016, and cover the previous five-and 
             one-half year period from March 1, 2011 to October 1, 
             2016.

           Background
           
          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.  

          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.

           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 







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             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.

           Prior Legislation  :

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

          SB 912 (Chesbro), Chapter 345, Statutes of 2001, adds 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), Chapter 296, Statutes of 2007, extends 
          the sunset to January 1, 2012.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (Verified  7/8/11)

          California Grape and Tree Fruit League (source)







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           ARGUMENTS IN SUPPORT  :    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.

          ASSEMBLY FLOOR  :
          AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill 
            Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Carter, 
            Chesbro, Conway, Cook, Dickinson, Donnelly, Eng, Feuer, 
            Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, 
            Garrick, Gatto, Gordon, Grove, Hagman, Halderman, Hall, 
            Harkey, Hayashi, Roger Hern�ndez, Hill, Huber, Hueso, 
            Huffman, Jeffries, Knight, Lara, Logue, Bonnie Lowenthal, 
            Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, 
            Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel 
            P�rez, Portantino, Silva, Skinner, Smyth, Solorio, 
            Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, 
            Yamada, John A. P�rez
          NO VOTE RECORDED: Campos, Cedillo, Davis, Gorell, Jones


          PQ:do  7/8/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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