Bill Text: CA AB533 | 2013-2014 | Regular Session | Chaptered
Bill Title: Artistic employment contracts: minors.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2013-08-13 - Chaptered by Secretary of State - Chapter 102, Statutes of 2013. [AB533 Detail]
Download: California-2013-AB533-Chaptered.html
BILL NUMBER: AB 533 CHAPTERED
BILL TEXT
CHAPTER 102
FILED WITH SECRETARY OF STATE AUGUST 13, 2013
APPROVED BY GOVERNOR AUGUST 13, 2013
PASSED THE SENATE JUNE 24, 2013
PASSED THE ASSEMBLY JUNE 27, 2013
AMENDED IN SENATE JUNE 3, 2013
AMENDED IN ASSEMBLY APRIL 18, 2013
INTRODUCED BY Assembly Member Ian Calderon
FEBRUARY 20, 2013
An act to amend Section 6752 of the Family Code, relating to
minors.
LEGISLATIVE COUNSEL'S DIGEST
AB 533, Ian Calderon. Artistic employment contracts: minors.
Existing law regulates certain contracts for artistic employment
between an unemancipated minor and 3rd parties, including employment
as an actor, dancer, musician, comedian, singer, stunt-person,
voice-over artist, or sports player. Existing law requires the minor'
s employer under one of these contracts to set aside 15% of the minor'
s gross earnings, as specified, and provides for the establishment of
a trust for the purpose of preserving for the minor a portion of the
minor's gross earnings, as defined.
This bill would exempt an employer of a minor under a contract as
described above for services as an extra, background performer, or in
a similar capacity from the requirement that the employer set aside
15% of the minor's gross earnings in trust for the benefit of the
minor.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6752 of the Family Code is amended to read:
6752. (a) A parent or guardian entitled to the physical custody,
care, and control of a minor who enters into a contract of a type
described in Section 6750 shall provide a certified copy of the minor'
s birth certificate indicating the minor's minority to the other
party or parties to the contract and in addition, in the case of a
guardian, a certified copy of the court document appointing the
person as the minor's legal guardian.
(b) (1) Notwithstanding any other statute, in an order approving a
minor's contract of a type described in Section 6750, the court
shall require that 15 percent of the minor's gross earnings pursuant
to the contract be set aside by the minor's employer, except an
employer of a minor for services as an extra, background performer,
or in a similar capacity, as described in paragraph (3) of
subdivision (b) of Section 6750. These amounts shall be held in
trust, in an account or other savings plan, and preserved for the
benefit of the minor in accordance with Section 6753.
(2) The court shall require that at least one parent or legal
guardian, as the case may be, entitled to the physical custody, care,
and control of the minor at the time the order is issued be
appointed as trustee of the funds ordered to be set aside in trust
for the benefit of the minor, unless the court shall determine that
appointment of a different individual, individuals, entity, or
entities as trustee or trustees is required in the best interest of
the minor.
(3) Within 10 business days after commencement of employment, the
trustee or trustees of the funds ordered to be set aside in trust
shall provide the minor's employer with a true and accurate photocopy
of the trustee's statement pursuant to Section 6753. Upon
presentation of the trustee's statement offered pursuant to this
subdivision, the employer shall provide the parent or guardian with a
written acknowledgment of receipt of the statement.
(4) The minor's employer shall deposit or disburse the 15 percent
of the minor's gross earnings pursuant to the contract within 15
business days after receiving a true and accurate copy of the trustee'
s statement pursuant to subdivision (c) of Section 6753, a certified
copy of the minor's birth certificate, and, in the case of a
guardian, a certified copy of the court document appointing the
person as the minor's guardian. Notwithstanding any other law,
pending receipt of these documents, the minor's employer shall hold,
for the benefit of the minor, the 15 percent of the minor's gross
earnings pursuant to the contract. This paragraph does not apply to
an employer of a minor for services as an extra, background
performer, or in a similar capacity, as described in paragraph (3) of
subdivision (b) of Section 6750.
(5) When making the initial deposit of funds, the minor's employer
shall provide written notification to the financial institution or
company that the funds are subject to Section 6753. Upon receipt of
the court order, the minor's employer shall provide the financial
institution with a copy of the order.
(6) Once the minor's employer deposits the set-aside funds
pursuant to Section 6753, in trust, in an account or other savings
plan, the minor's employer shall have no further obligation or duty
to monitor or account for the funds. The trustee or trustees of the
trust shall be the only individual, individuals, entity, or entities
with the obligation or duty to monitor and account for those funds
once they have been deposited by the minor's employer. The trustee or
trustees shall do an annual accounting of the funds held in trust,
in an account or other savings plan, in accordance with Sections
16062 and 16063 of the Probate Code.
(7) The court shall have continuing jurisdiction over the trust
established pursuant to the order and may at any time, upon petition
of the parent or legal guardian, the minor, through his or her
guardian ad litem, or the trustee or trustees, on good cause shown,
order that the trust be amended or terminated, notwithstanding the
provisions of the declaration of trust. An order amending or
terminating a trust may be made only after reasonable notice to the
beneficiary and, if the beneficiary is then a minor, to the parent or
guardian, if any, and to the trustee or trustees of the funds with
opportunity for all parties to appear and be heard.
(8) A parent or guardian entitled to the physical custody, care,
and control of the minor shall promptly notify the minor's employer
in writing of any change in facts that affect the employer's
obligation or ability to set aside the funds in accordance with the
order, including, but not limited to, a change of financial
institution or account number, or the existence of a new or amended
order issued pursuant to paragraph (7) amending or terminating the
employer's obligations under this section. The written notification
shall be accompanied by a true and accurate photocopy of the trustee'
s statement pursuant to Section 6753 and, if applicable, a true and
accurate photocopy of the new or amended order.
(9) (A) If a parent, guardian, or trustee fails to provide the
minor's employer with a true and accurate photocopy of the trustee's
statement pursuant to Section 6753 within 180 days after the
commencement of employment, the employer shall forward to The Actors'
Fund of America 15 percent of the minor's gross earnings pursuant to
the contract, together with the minor's name and, if known, the
minor's social security number, birth date, last known address,
telephone number, email address, dates of employment, and title of
the project on which the minor was employed, and shall notify the
parent, guardian, or trustee of that transfer by certified mail to
the last known address. Upon receipt of those forwarded funds, The
Actors' Fund of America shall become the trustee of those funds and
the minor's employer shall have no further obligation or duty to
monitor or account for the funds.
(B) The Actors' Fund of America shall make its best efforts to
notify the parent, guardian, or trustee of their responsibilities to
provide a true and accurate photocopy of the trustee's statement
pursuant to Section 6753, and in the case of a guardian, a certified
copy of the court document appointing the person as the minor's legal
guardian. Within 15 business days after receiving those documents,
The Actors' Fund of America shall deposit or disburse the funds as
directed by the trustee's statement. When making that deposit or
disbursal of the funds, The Actors' Fund of America shall provide to
the financial institution notice that the funds are subject to
Section 6753 and a copy of each applicable order, and shall
thereafter have no further obligation or duty to monitor or account
for the funds.
(C) The Actors' Fund of America shall notify each beneficiary of
his or her entitlement to the funds that it holds for the beneficiary
within 60 days after the date on which its records indicated that
the beneficiary has attained 18 years of age or the date on which it
received notice that the minor has been emancipated, by sending that
notice to the last known address for the beneficiary or, if it has no
specific separate address for the beneficiary, to the beneficiary's
parent or guardian.
(c) (1) Notwithstanding any other statute, for any minor's
contract of a type described in Section 6750 that is not being
submitted for approval by the court pursuant to Section 6751, or for
which the court has issued a final order denying approval, 15 percent
of the minor's gross earnings pursuant to the contract shall be set
aside by the minor's employer, except an employer of a minor for
services as an extra, background performer, or in a similar capacity,
as described in paragraph (3) of subdivision (b) of Section 6750.
These amounts shall be held in trust, in an account or other savings
plan, and preserved for the benefit of the minor in accordance with
Section 6753. At least one parent or legal guardian, as the case may
be, entitled to the physical custody, care, and control of the minor,
shall be the trustee of the funds set aside for the benefit of the
minor, unless the court, upon petition by the parent or legal
guardian, the minor, through his or her guardian ad litem, or the
trustee or trustees of the trust, shall determine that appointment of
a different individual, individuals, entity, or entities as trustee
or trustees is required in the best interest of the minor.
(2) Within 10 business days of commencement after employment, a
parent or guardian, as the case may be, entitled to the physical
custody, care, and control of the minor shall provide the minor's
employer with a true and accurate photocopy of the trustee's
statement pursuant to Section 6753 and in addition, in the case of a
guardian, a certified copy of the court document appointing the
person as the minor's legal guardian. Upon presentation of the
trustee's statement offered pursuant to this subdivision, the
employer shall provide the parent or guardian with a written
acknowledgment of receipt of the statement.
(3) The minor's employer shall deposit 15 percent of the minor's
gross earnings pursuant to the contract within 15 business days of
receiving the trustee's statement pursuant to Section 6753, or if the
court denies approval of the contract, within 15 business days of
receiving a final order denying approval of the contract.
Notwithstanding any other statute, pending receipt of the trustee's
statement or the final court order, the minor's employer shall hold
for the benefit of the minor the 15 percent of the minor's gross
earnings pursuant to the contract. When making the initial deposit of
funds, the minor's employer shall provide written notification to
the financial institution or company that the funds are subject to
Section 6753. This paragraph does not apply to an employer of a minor
for services as an extra, background performer, or in a similar
capacity, as described in paragraph (3) of subdivision (b) of Section
6750.
(4) Once the minor's employer deposits the set-aside funds in
trust, in an account or other savings plan pursuant to Section 6753,
the minor's employer shall have no further obligation or duty to
monitor or account for the funds. The trustee or trustees of the
trust shall be the only individual, individuals, entity, or entities
with the obligation or duty to monitor and account for those funds
once they have been deposited by the minor's employer. The trustee or
trustees shall do an annual accounting of the funds held in trust,
in an account or other savings plan, in accordance with Sections
16062 and 16063 of the Probate Code.
(5) Upon petition of the parent or legal guardian, the minor,
through his or her guardian ad litem, or the trustee or trustees of
the trust, to the superior court in any county in which the minor
resides or in which the trust is established, the court may at any
time, on good cause shown, order that the trust be amended or
terminated, notwithstanding the provisions of the declaration of
trust. An order amending or terminating a trust may be made only
after reasonable notice to the beneficiary and, if the beneficiary is
then a minor, to the parent or guardian, if any, and to the trustee
or trustees of the funds with opportunity for all parties to appear
and be heard.
(6) A parent or guardian entitled to the physical custody, care,
and control of the minor shall promptly notify the minor's employer
in writing of any change in facts that affect the employer's
obligation or ability to set aside funds for the benefit of the minor
in accordance with this section, including, but not limited to, a
change of financial institution or account number, or the existence
of a new or amended order issued pursuant to paragraph (5) amending
or terminating the employer's obligations under this section. The
written notification shall be accompanied by a true and accurate
photocopy of the trustee's statement and attachments pursuant to
Section 6753 and, if applicable, a true and accurate photocopy of the
new or amended order.
(7) (A) If a parent, guardian, or trustee fails to provide the
minor's employer with a true and accurate photocopy of the trustee's
statement pursuant to Section 6753, within 180 days after
commencement of employment, the employer shall forward to The Actors'
Fund of America the 15 percent of the minor's gross earnings
pursuant to the contract, together with the minor's name and, if
known, the minor's social security number, birth date, last known
address, telephone number, email address, dates of employment, and
the title of the project on which the minor was employed, and shall
notify the parent, guardian, or trustee of that transfer by certified
mail to the last known address. Upon receipt of those forwarded
funds, The Actors' Fund of America shall become the trustee of those
funds and the minor's employer shall have no further obligation or
duty to monitor or account for the funds.
(B) The Actors' Fund of America shall make best efforts to notify
the parent, guardian, or trustee of their responsibilities to provide
a true and accurate photocopy of the trustee's statement pursuant to
Section 6753 and in the case of a guardian, a certified copy of the
court document appointing the person as the minor's legal guardian.
After receiving those documents, The Actors' Fund of America shall
deposit or disburse the funds as directed by the trustee's statement,
and in accordance with Section 6753, within 15 business days. When
making that deposit or disbursal of the funds, The Actors' Fund of
America shall provide notice to the financial institution that the
funds are subject to Section 6753, and shall thereafter have no
further obligation or duty to monitor or account for the funds.
(C) The Actors' Fund of America shall notify each beneficiary of
his or her entitlement to the funds that it holds for the
beneficiary, within 60 days after the date on which its records
indicate that the beneficiary has attained 18 years of age or the
date on which it received notice that the minor has been emancipated,
by sending that notice to the last known address that it has for the
beneficiary, or to the beneficiary's parent or guardian, where it
has no specific separate address for the beneficiary.
(d) Where a parent or guardian is entitled to the physical
custody, care, and control of a minor who enters into a contract of a
type described in Section 6750, the relationship between the parent
or guardian and the minor is a fiduciary relationship that is
governed by the law of trusts, whether or not a court has issued a
formal order to that effect. The parent or guardian acting in his or
her fiduciary relationship, shall, with the earnings and
accumulations of the minor under the contract, pay all liabilities
incurred by the minor under the contract, including, but not limited
to, payments for taxes on all earnings, including taxes on the
amounts set aside under subdivisions (b) and (c) of this section, and
payments for personal or professional services rendered to the minor
or the business related to the contract. Nothing in this subdivision
shall be construed to alter any other existing responsibilities of a
parent or legal guardian to provide for the support of a minor
child.
(e) (1) Except as otherwise provided in this subdivision, The
Actors' Fund of America, as trustee of unclaimed set-aside funds,
shall manage and administer those funds in the same manner as a
trustee under the Probate Code. Notwithstanding the foregoing, The
Actors' Fund of America is not required to open separate, segregated
individual trust accounts for each beneficiary but may hold the
set-aside funds in a single, segregated master account for all
beneficiaries, provided it maintains accounting records for each
beneficiary's interest in the master account.
(2) The Actors' Fund of America shall have the right to transfer
funds from the master account, or from a beneficiary's segregated
account to its general account in an amount equal to the beneficiary'
s balance. The Actors' Fund of America shall have the right to use
those funds transferred to its general account to provide programs
and services for young performers. This use of the funds does not
limit or alter The Actors' Fund of America's obligation to disburse
the set-aside funds to the beneficiary, or the beneficiary's parent,
guardian, trustee, or estate pursuant to this chapter.
(3) (A) Upon receiving a certified copy of the beneficiary's birth
certificate, or United States passport, and a true and accurate
photocopy of the trustee's statement pursuant to Section 6753, The
Actors' Fund of America shall transfer the beneficiary's balance to
the trust account established for the beneficiary.
(B) The Actors' Fund of America shall disburse the set-aside funds
to a beneficiary who has attained 18 years of age, after receiving
proof of the beneficiary's identity and a certified copy of the
beneficiary's birth certificate or United States passport, or to a
beneficiary who has been emancipated, after receiving proof of the
beneficiary's identity and appropriate documentation evidencing the
beneficiary's emancipation.
(C) The Actors' Fund of America shall disburse the set-aside funds
to the estate of a deceased beneficiary after receiving appropriate
documentation evidencing the death of the beneficiary and the
claimant's authority to collect those funds on behalf of the
beneficiary.
(f) (1) The beneficiary of an account held by The Actors' Fund of
America pursuant to this section shall be entitled to receive imputed
interest on the balance in his or her account for the entire period
during which the account is held at a rate equal to the lesser of the
federal reserve rate in effect on the last business day of the prior
calendar quarter or the national average money market rate as
published in the New York Times on the last Sunday of the prior
calendar quarter, adjusted quarterly.
(2) The Actors' Fund of America may assess and deduct from the
balance in the beneficiary's account reasonable management,
administrative, and investment expenses, including
beneficiary-specific fees for initial setup, account notifications
and account disbursements, and a reasonably allocable share of
management, administrative, and investment expenses of the master
account. No fees may be charged to any beneficiary's account during
the first year that the account is held by The Actors' Fund of
America.
(3) Notwithstanding paragraph (2), the amount paid on any claim
made by a beneficiary or the beneficiary's parent or guardian after
The Actors' Fund of America receives and holds funds pursuant to this
section may not be less than the amount of the funds received plus
the imputed interest.
(g) Notwithstanding any provision of this chapter to the contrary,
any minor's employer holding set-aside funds under this chapter,
which funds remain unclaimed 180 days after the effective date
hereof, shall forward those unclaimed funds to The Actors' Fund of
America, along with the minor's name and, if known, the minor's
social security number, birth date, last known address, telephone
number, email address, dates of employment, and the title of the
project on which the minor was employed, and shall notify the parent,
guardian, or trustee of that transfer by certified mail to the last
known address. Upon receipt of those forwarded funds by The Actors'
Fund of America, the minor's employer shall have no further
obligation or duty to monitor or account for the funds.
(h) All funds received by The Actors' Fund of America pursuant to
this section shall be exempt from the application of the Unclaimed
Property Law (Title 10 (commencing with Section 1300) of Part 3 of
the Code of Civil Procedure), including, but not limited to, Section
1510 of the Code of Civil Procedure.
