1. What is the New Coogan Law, or SB 210?

    2. California SB 210, introduced by Senator John Burton on April 21, 2003 , and signed by Governor Gray Davis on October 3, 2003 , amends Sections 6750, 6752, and 6753 of California 's Family Code and adds Section 1308.9 to California's Labor Code. The bill:

    1. Defines a minor's gross earnings as it relates to the establishment of a minor's set aside trust, i.e. Coogan Trust Account;

    2. Requires employers to forward funds set aside for the minor to The Actors' Fund of America if the employer or guardian fails to provide proper documents for such accounts;

    3. Specifies the rights and duties of The Actors' Fund, including:
      1. The Actors' Fund is named as custodian (trustee) of unclaimed Coogan funds;
      2. The Actor's Fund is assigned the right to collect management, administrative and investment expenses;
      3. The Actors' Fund is provided exemption from the Unclaimed Property Law with respect to unclaimed Coogan funds;
      4. The Actors' Fund is assigned the responsibility for the disbursement of unclaimed funds to a minor beneficiary, a beneficiary who has reached the age of 18, or the estate of a deceased beneficiary.

    4. Required proof of the establishment of a Coogan Trust account for the issuance of certain work permits.
  2. What is the Purpose of SB 210?

    3. On January 1, 2000 , SB 1162 became law. This law requires that 15% of the earnings of an unemancipated minor rendering artistic or creative services be transferred to a set aside trust. In “the business” this has become known as a Coogan Account. A year after the law was passed, employers were still holding some set-aside funds, awaiting trust information from parents/guardians. Both SAG and the MPAA wanted to find a way to ensure these funds were transferred to their rightful owners, and to have the money protected until that time. SAG and the MPAA asked The Actors' Fund if they would accept the role of custodian of unclaimed funds. This role would include becoming the trustee of these funds; transferring funds to Coogan Accounts after receiving proper documentation; paying funds to beneficiaries who reach the age of maturity or became emancipated; and paying funds to the estates of beneficiaries. The Actors' Fund agreed to partner in this endeavor, and all three parties worked with Senator John Burton's offices and the California legislature to craft SB 210.

  3. When and How Will The Actors Fund Obtain Unclaimed Funds?

    4. The law has provisions for two categories of unclaimed funds: those that employers have been holding prior to January 1, 2004 , and those that are earned after the January 1 implementation date. Employers have 180 days after January 1, 2004 to transfer unclaimed funds earned prior to January 1, 2004 to The Actors Fund. Beginning January 1, 2004 , 180 days after commencement of employment, if a parent/guardian fails to provide a “true and accurate photocopy of the trustee's statement” the employer will forward the unclaimed funds to The Actors'Fund.

  4. What Information Will the Employer Provide About the Young Performer and the Unclaimed Funds?

    5. SB 210 requires that when the funds are transferred from the employer to The Actors Fund, the employer include the name of the young performer, and if known, the young performer's Social Security number, birth date, last known address, telephone number, e-mail address, dates of employment, and title of the project on which the minor was employed. The employer is required to notify the parent, guardian or trustee of the transfer by certified mail to the last known address.

  5. How Else Can One Find Out If The Actors Fund is Holding a Young Performers Set-aside Funds?

    6. The Actors Fund has created a website www.unclaimedcoogan.org. One can go directly to this Website, or find its link through The Actors Fund's website (www.actorsfund.org) or the SAG (www.sag.org) or AFTRA (www.aftra.com) websites. Unclaimedcoogan.org will have a list of the names of all individuals for whom The Actors' Fund is the custodian/trustee of the set-aside funds. The site will also have both instructions and an application for claiming funds.

  6. If unclaimedcoogan.org Lists a Young Performer's Name, How Does the Parent or Guardian Go About Claiming these Funds and When Will the Funds be Transferred to the Young Performer's Coogan Account?

    The Actors Fund will review the application. Included with the application. A certified copy of the beneficiary's birth certificate or passport, or any other government official document, and “a true and accurate photocopy of the trustee statement”, i.e. a copy of the Coogan Account information are required to be included with the application. The Actors Fund has 15 business days after obtaining an accurately completed application to transfer funds to the Coogan Account.

  7. How Will People Know To Look at the Website? Besides the Initial Notification of the Transfer of Funds from the Employer, Will Parents/Guardians be Notified?

    SB 210 requires The Actors Fund to make best efforts to notify beneficiaries. Ads will be placed in California newspapers, and linkages will be made to both the SAG and AFTRA websites. The SAG/AFTRA Young Performer's Committee and employers will also be provided with information to distribute. Since The Actors Fund is the trustee, and not the owner of the money, a 1099 will be mailed to each beneficiary once a year.

  8. What if the Beneficiary is an Emancipated Minor or is over 18?

    The Actors Fund will notify each beneficiary within 60 days of the date that the records indicate that the beneficiary has attained 18 years of age, or the date that The Actors Fund receives notice that the minor has been emancipated, by sending notice to the last known address. Beneficiaries who are over 18 or emancipated minors will be required to (1) provide proof of identity (such as a driver's license) and (2) a certified copy of a birth certificate or passport. If the beneficiary is an emancipated minor, proof of emancipation is also required.

  9. What if the Beneficiary is Deceased?

    10. After receiving appropriate documentation evidencing the death of the beneficiary (i.e. a certified death certificate) and the claimant's authority to collect the funds (i.e. probate court order) funds will be disbursed to the estate of the beneficiary.

  10. Will Interest be Paid on Unclaimed Coogan Money?

    Yes. The amount paid will be principal plus imputed interest for the entire period during which The Actors Fund is the trustee of the money. Imputed interest is defined as a rate equal to the lesser of the Federal Reserve rate in effect the last business day of the prior calendar quarter or the national average money market rate as published by the New York Times on the last Sunday of the prior calendar quarter, adjusted quarterly.

  11. Will The Actors Fund Invest the Money? If So, how?

    The Actors Fund is required to manage and administer funds in the same manner as a trustee under the California Probate Code. This means that funds must be invested in conservative instruments.

  12. What Happens if When Funds Are Claimed the Account is Worth More Than Principal Plus Interest? What if the Account is Worth Less?

    13. SB 210 requires The Actors Fund to pay principal plus imputed interest, regardless of whether the account is worth less or more than that amount.

  13. What Happens to the Rest of the Money?

    14. After 12/31/04 , SB 210 allows The Actors Fund to use the difference between earned income and imputed interest to administer the funds. There are a number of expenses that include but are not limited to bank charges, Website administration, and advertising.

  14. What if There is Still Money Left Over?

    15. It is both the belief and intention of The Actors Fund to get the funds to their rightful owners as quickly as possible. Further, at present, it is not likely that the difference between earned income and imputed interest will cover the administrative costs. If, in the future, there is an excess of earned income, SB 210 allows these excess funds to be used to run programs that will benefit young performers. In this case, funds will be used to support The Actors Fund's Looking Ahead Program.

    Click here for more information regarding Looking Ahead, or call (323) 933-9244.

We hope we have answered all of your questions. Should you have additional questions please call
(323) 933-9266 x 40.