Hawaii has enacted a new law designed to protect the earnings of child actors and entertainers, ensuring a secure financial future for young performers. This legislation follows similar initiatives in other states, such as California's Coogan Act, which aims to prevent financial mismanagement of child actors' earnings. The new law will likely require a percentage of a child's earnings to be placed in a trust until they reach adulthood.
The move is expected to have significant implications for the entertainment industry in Hawaii, which could experience increased parental interest in opportunities for their children. According to a report by the Honolulu Star-Advertiser, the intent is to ensure that a portion of earnings is preserved until the child reaches adulthood. Eric Nemoto, founder of The Actors Group Theatre, supports the bill, suggesting the funds can be used for the child's benefit, which would include private schooling or tutoring.
This legislation, often inspired by the Coogan Act in California, which was the first state to pass such a law in 1939, and has since been extended to cover children generating content online. CitizenPortal.ai notes that the law mandates trust accounts and requires that employers deposit at least 15% of gross earnings into these accounts, managed by an independent third-party trustee.
Similar measures are being proposed and implemented across the United States. Utah lawmakers are looking to safeguard earnings of child actors and influencers, as reported by The Salt Lake Tribune, and other states have already enacted similar protections. Such measures are a response to cases of parental mismanagement and financial exploitation of young performers, mirroring concerns first brought to light by child star Jackie Coogan in the early 20th century.
