BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2396
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          ASSEMBLY THIRD READING
          AB 2396 (Arts, Entertainment, Sports, Tourism & Internet Media 
          Committee)
          As Introduced  February 24, 2012
          Majority vote 

           LABOR & EMPLOYMENT      5-1     ARTS, ENTERTAINMENT, SPORTS      
          8-1                 
           
           ----------------------------------------------------------------- 
          |Ayes:|Swanson, Alejo, Allen,    |Ayes:|Campos, Achadjian,        |
          |     |Furutani, Yamada          |     |Butler, Carter, Gatto,    |
          |     |                          |     |Mendoza, Monning, Silva   |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Morrell                   |Nays:|Beth Gaines               |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      13-3                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fuentes, Harkey,          |     |                          |
          |     |Blumenfield, Bradford,    |     |                          |
          |     |Charles Calderon, Campos, |     |                          |
          |     |Davis, Gatto, Hall, Hill, |     |                          |
          |     |Lara, Mitchell, Solorio   |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Donnelly, Nielsen, Norby  |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Clarifies that prior to obtaining a temporary work 
          permit for infants, a medical certification from a doctor must 
          first be obtained and verified and makes technical clean-up 
          changes.  

           EXISTING FEDERAL LAW  regulates the employment of minors in the 
          United States under the federal Fair Labor Standards Act (FLSA) 
          but the FLSA provides an exception for "any child employed as an 
          actor or performer in motion pictures or theatrical productions, 
          or in radio or television productions."  (29, United States Code 
          Section 212, et seq.)  

          EXISTING STATE LAW  :









                                                                  AB 2396
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          1)Requires the written consent of the Labor Commissioner (LC) 
            for the employment of a minor in the entertainment industry, 
            as specified. (Labor Code Section 1308.5)

          2)Requires an entertainment work permit to be obtained from the 
            LC for a minor in order for them to be employed in the 
            entertainment industry.

          3)States that all minors less than 18 years of age, with limited 
            exceptions, employed in the state of California must have a 
            permit to work and their employers must have a permit to 
            employ minors, as specified.

          4)Provides that employers must keep on file all Permits to 
            Employ and Work.  Records must be open at all times for 
            inspection by school authorities and officers of the Division 
            of Labor Standards Enforcement (DLSE).  (Labor Code Section 
            1299; Education Code Sections 49161, 49164, and 49181)

          5)Provides that failure to produce Permits to Work or to Employ 
            is prima facie evidence of the illegal employment of minors, 
            and subjects the employer to a fine.  (Labor Code Sections 
            1288 and 1304; Education Code Section 49181)

          6)Provides that once written consent is given by the LC, as 
            specified, that consent shall be void after the expiration of 
            10 business days from the date the written consent was granted 
            unless it is attached to a true and correct copy as evidence 
            that a "Coogan Trust Account" has been established on behalf 
            of the minor and enforcement shall be done by the LC.

          7)Establishes a program to be administered by the LC that would 
            enable a minor's parent or guardian to obtain a temporary 
            permit for the employment of a minor, under specified 
            conditions.  Also authorizes the LC to collect and deposit 
            money into the Entertainment Work Permit (EWP) Fund to use the 
            proceeds from the EWP Fund to pay the costs of administrating 
            the program, as specified.  (Labor Code Section 1308.10)

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, there will be no direct fiscal impact to the state 
          for this bill.

           COMMENTS  :  Last year the Assembly Labor and Employment Committee 








                                                                  AB 2396
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          heard AB 1401 (Arts, Entertainment, Sports, Tourism & Internet 
          Media Committee), Chapter 557, Statutes of 2011, which 
          established a program to be administered by the LC that would 
          enable a minor's parent or guardian to obtain a temporary permit 
          for the employment of a minor, under specified conditions.  AB 
          1401 also authorizes the LC to collect and deposit money into 
          the Entertainment Work Permit (EWP) Fund to use the proceeds 
          from the EWP Fund to pay the costs of administrating the 
          program, as specified. 

          This bill makes clarifying and technical clean-up changes to 
          correct a drafting error in the chaptered version of AB 1401, 
          which inadvertently combined the names of the Labor Enforcement 
          and Compliance Fund and the Entertainment Work Permit Fund used 
          to pay for startup costs incurred in the creation of the 
          program.  

          Additionally, this bill clarifies that prior to obtaining a 
          temporary work permit for infants, a medical certification from 
          a doctor must first be obtained and confirmed.  The 
          clarification is in alignment with the information currently 
          posted on the Department of Industrial Relations (DIR) Web site 
          regarding the 10 day Temporary Entertainment Work Permits.

           Prior and related legislation  :  
           
          AB 1401 (Arts, Entertainment, Sports, Tourism & Internet Media 
          Committee), Chapter 557, Statutes of 2011, established a program 
          to be administered by the LC that would enable a minor's parent 
          or guardian, prior to the first employment of a minor performer 
          to obtain a temporary permit for the employment of a minor to 
          work in the entertainment field. 

          AB 2032 (Davis) of 2009, which was vetoed by the Governor, would 
          have levied a fee to fund the administration of permits for 
          minors in the entertainment industry, as well as to fund 
          enforcement of working conditions for minors in the industry.

          AB 402 (Davis) of 2009, would have required a $50 fee be 
          submitted at the time when a minor applies for an EWP and 
          directed the LC to collect and deposit the money into a special 
          fund for the administration and enforcement of EWPs for minors, 
          as provided.  AB 402 was vetoed by the Governor.









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          SB 210 (Burton), Chapter 667, Statutes of 2004, added the 
          requirement that the LC's written consent for performances of a 
          minor be limited to 10 days, unless a Coogan Trust Account has 
          been established.

          SB 1162 (Burton), Chapter 940, Statutes of 1999, made 
          significant changes to the Coogan law.

           
          Analysis Prepared by  :    Lorie Alvarez / L. & E. / (916) 
          319-2091 


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