BILL ANALYSIS �
SENATE JUDICIARY COMMITTEE
Senator Noreen Evans, Chair
2011-2012 Regular Session
AB 1401 (Committee on Arts, Entertainment, Sports, Tourism &
Internet Media)
As Introduced
Hearing Date: June 21, 2011
Fiscal: Yes
Urgency: No
TW
SUBJECT
Employment: Minors
DESCRIPTION
This bill would establish an Internet Web site permit process to
be administered by the Division of Labor Standards Enforcement
for the issuance of temporary work permits for minors working in
the entertainment industry. The temporary work permit issued
under this bill would enable a parent or guardian of a minor to
establish a Coogan Trust Account for the benefit of the minor.
This bill would require the Labor Commissioner to place fees
received for a temporary minor's entertainment work permit into
an Entertainment Work Permit Fund, which funds would pay for the
costs of administration of the Internet Web site created under
this bill.
BACKGROUND
In 1975, the California Labor and Education Codes were
overhauled to provide for child labor protections. (AB 436
(McCarthy, Ch. 436, Stats. 1975).) At that time, provisions
were enacted for the employment of children in the entertainment
industry, including the requirement of obtaining the written
consent of the Labor Commissioner in advance of entertainment
industry employment. (Lab. Code Sec. 1308.5.) Since 1975, this
Labor Code provision has not been substantively amended.
Children entering into contracts to provide professional
entertainment services are subject to the permit requirement.
Work permits issued by the Labor Commissioner related to
(more)
AB 1401
(Committee on Arts, Entertainment, Sports, Tourism & Internet
Media)
Page 2 of ?
contracted services are valid for ten days, unless the permit is
attached to a trustee's statement evidencing the establishment
of a Coogan Trust Account. (Lab. Code Sec. 1308.9.)
Coogan Trust Accounts were established under the Coogan Law in
1938 in response to child star Jackie Coogan's plight. Even
though he earned millions as a child, Coogan was surprised to
find out when he reached adulthood that he was flat broke,
because his mother and stepfather spent all of his money -
legally. Community property laws in California made all
earnings of individual members of a family the property of the
family, and a child had no control over his or her earnings.
Thus, the Coogan Law was passed in order to preserve a portion
of the minor's earnings for the minor's use when he or she
reaches the age of majority. In 1999 and 2003, the Coogan Law
was amended to provide enhanced protections for a minor's
earnings. (SB 1162 (Burton, Ch. 940, Stats. 1999); SB 210
(Burton, Ch. 667, Stats. 2003).)
This bill, sponsored by the Screen Actors Guild, would update
the current minor's entertainment temporary work permit
application process by establishing an Internet Web site
administered by the Division of Labor Standards Enforcement for
same-day processing of the temporary work permit. This bill
would require the Labor Commissioner to place fees received for
a temporary minor's entertainment work permit into an
Entertainment Work Permit Fund, which funds would pay for the
costs of administration of the Internet Web site created under
this bill.
CHANGES TO EXISTING LAW
Existing law requires written consent of the Labor Commissioner
for the employment of a minor in the entertainment industry, as
specified. (Lab. Code Sec. 1308.5.)
Existing law provides that the written consent of the Labor
Commissioner expires after ten days unless a Coogan Trust
Account or similar trust account (collectively, Coogan Trust
Account) has been established for the benefit of the minor. If
a trustee's statement evidencing the establishment of a Coogan
Trust Account is attached to the written consent, then the
written consent is valid for six months. (Lab. Code Sec.
1308.9.)
Existing law defines a Coogan Trust Account to mean a trust
AB 1401
(Committee on Arts, Entertainment, Sports, Tourism & Internet
Media)
Page 3 of ?
account established for the purpose of preserving for the
benefit of a minor the portion of the minor's gross earnings.
(Fam. Code Sec. 6753.)
This bill would authorize, prior to the employment of a minor
under 16 years of age, the Labor Commissioner to issue a
temporary permit to enable the parent or guardian of the minor
to apply for written consent for entertainment industry
employment of the minor and to establish a Coogan Trust Account,
or similar trust account for the benefit of the minor, as
follows:
a temporary permit shall be valid for ten days from the date of
issuance;
the temporary permit shall not be issued for the employment of a
minor if the minor's parent or guardian has previously applied
for or been issued a permit by the Labor Commissioner for
employment of the minor;
the Division of Labor Standards Enforcement (DLSE) shall prepare
and make available on its Internet Web site the application form
for a temporary permit, which must be completed by the applicant
and submitted online with the appropriate fee; and
upon receipt of the completed application and fee, the DLSE shall
immediately issue a temporary permit.
This bill would create the Entertainment Work Permit Fund (Fund)
in the State Treasury and require the Labor Commissioner to
deposit all fees received for temporary entertainment work
permits into the Fund. The funds deposited in the Fund shall be
available to the Labor Commissioner, upon appropriation by the
Legislature, to pay for the costs of administration of the
online minor's temporary entertainment work permit program.
This bill would authorize the Labor Commissioner to set the fee,
not to exceed $50, for the minor's temporary entertainment work
permit in an amount sufficient to pay for the costs associated
with the Internet Web site.
COMMENT
1. Stated need for the bill
The author writes:
Parents of child performers often will obtain an entertainment
work permit prior to even auditioning their child for a job.
This results in an inefficient and expensive work volume for
the Labor Commissioner's office - who issues over 60,000
AB 1401
(Committee on Arts, Entertainment, Sports, Tourism & Internet
Media)
Page 4 of ?
entertainment work permits for minors annually - which is
vastly larger than the pool of actual children working in the
industry in need of a permit.
�U]nder the current system, there is no way to obtain a same
day work permit. Instead, a paper application must be
presented to the Labor Commissioner's office, and a work
permit is mailed back to the applicant. This process takes up
to two weeks to complete. The delay in obtaining a permit can
deny some child performers the ability to work.
Under AB 1401 parents would be able to apply for their child's
first permit online for a temporary permit that will be
granted immediately. This will allow parents to wait to apply
for a permit until their child actually has a job - and save
the Labor Commissioner many hours of work. The temporary
permit is only valid for 10 days - time to allow the parents
to submit the required documentation with their permit renewal
application, including . . . �e]stablishing a Coogan blocked
trust bank account.
2. This bill would maintain existing trust account protections
This bill, sponsored by the Screen Actors Guild, would update
the current minor's temporary entertainment work permit
application process by establishing an Internet Web site
administered by the Division of Labor Standards Enforcement for
same-day processing of the temporary work permit. Existing law,
in order for a minor to work in the entertainment industry,
requires a permit to be issued by the Labor Commissioner prior
to the minor's hiring. (Lab. Code Sec. 1308.5) Existing law
provides that if a child enters into an entertainment services
contract, a Coogan Trust Account must be established into which
the child's earnings would be placed for the child's benefit.
(Fam. Code Sec. 6750 et seq.) In order for the temporary work
permit to be valid longer than ten days, the trustee (who, in
most cases, is the child's parent or guardian) of the Coogan
Trust Account must provide a statement that a Coogan Trust
Account has been established for the child's benefit. (Lab.
Code Sec. 1308.9.) A temporary work permit that is attached to
a trustee's statement regarding the Coogan Trust Account is then
valid for six months.
The author reports that the antiquated method of applying by
mail for the temporary work permit can take up to two weeks. In
the meantime, the minor would not be able to provide proof of a
AB 1401
(Committee on Arts, Entertainment, Sports, Tourism & Internet
Media)
Page 5 of ?
valid work permit and would not be hired. Because of this
undesirable result, many parents and guardians are applying for
the temporary work permits before the child even auditions for
the entertainment job. Accordingly, the Labor Commissioner is
processing far more temporary work permits than are actually
needed because the child may or may not be hired after each
audition.
Importantly, this bill would not modify the current requirement
for establishment of a Coogan Trust Account. Once the child
enters into an entertainment services contract, the parent or
guardian would still be required to open a Coogan Trust Account
within ten days of signing the contract. Further, the parent or
guardian would still be required to attach the temporary work
permit to the trustee's statement of Coogan Trust Account in
order for the child to continue working for the entertainment
entity for six months. The current safeguards contained in
Family Code Section 6752 protecting the minor's earnings also
remain in place under this bill. In order for the child to
receive payment for services rendered, the Coogan Trust Account
must be established so that the employer, pursuant to statute,
can deposit the minor's earnings into the account. If the
account has not been established, the employer forwards the
funds to the Actor's Fund of America (Fund) until the Fund
receives proof that the minor's trust account has been
established.
Support : None Known
Opposition : None Known
HISTORY
Source : Screen Actors Guild
Related Pending Legislation : None Known
Prior Legislation :
AB 436 (McCarthy, Ch. 436, Stats. 1975) See Background.
SB 1162 (Burton, Ch. 940, Stats. 1999) See Background.
SB 210 (Burton, Ch. 667, Stats. 2003) See Background.
Prior Vote :
AB 1401
(Committee on Arts, Entertainment, Sports, Tourism & Internet
Media)
Page 6 of ?
Senate Labor and Industrial Relations Committee (Ayes 4, Noes 1)
Assembly Floor (Ayes 52, Noes 24)
Assembly Appropriations Committee (Ayes 12, Noes 5)
Assembly Labor and Employment Committee (Ayes 5, Noes 1)
Assembly Arts, Entertainment, Sports, Tourism, and Internet
Media Committee (Ayes 7, Noes 1)
**************