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The Honorable George Deukmejian

Governor of Cal i f orni a


State Capi tol
Sacramento, CA 95814
The Honorabl e David A. Roberti
Presi dent Pro TemDore
L
State Capi tol
sacramento, CA 95814
The Honorabl e Wi l l i e Brown, J r.
Speaker of the A s s e m b l y c
State Capi tol
Sacramento, CA 95814
Dear Governor Deukmejian and Messrs. Roberti and Brown:
Encl osed f or f i l i ng, pursuant to Labor Code Secti on 1
the Report of t he m
T hi s repor as prepared and i s submitted pursuant t o the
l egi sl ati ve man e of the statutes of 1982, Chapter 682, Labor
Code Secti ons 1701 through 1704, i ncl usi ve.
If you have any questi ons, pl ease advi se the undersigned.
Very trul y yours,
t
Cal i forni a Entertai nment Commission
enc.
cc: Darryl Whi te
Secretary of the Senate
J ames D. Dri scol l
Cl er k of t he Assembly
Honorabl e Wal ter Sti ern
Chai rman
J oi nt L egi sl ati ve
Budget Committee
Honorable Richard Floyd
Chairman
Assembly Committee on
Employment
Honorable Alfred A l qui st
Chairman
Senate Finance Committee
2
Honorable B i l l Greene
Chairman
Senate Industrial
Rel ati ons Committee
Honorable J ohn Vasconcellos
Chairman
Assembl y Ways and Means
Committee
Honorable Maxi ne Waters
Assembl y Ways and Means
Subcommittee on State
Government
CAL I FORNI A ENTERTAINMENT COMMISSION
T hi s report 1s submi tted by the Cal i f orni a Entertai nment
Commission ( herei naf ter ref erred to as the Commission) t o the
L egi sl ature and the Governor pursuant to Cal i f orni a Labor Code
Secti ons* 1701 t o 1704**. These secti ons mandate the Comml ssl on
t o recommend a model bi l l regardi ng t he l i censi ng of agents and
representati ves of ar t i st s i n the entertai nment I ndustry i n
general and the recordi ng i ndustry 3n parti cul ar.
L abor Code Secti on 1701, whi ch establ i shed the Commi ssi on,
provi des as fol l ows:
There i s hereby created i n State government
t he Cal i f orni a Entertal nment Commi ssi on
consi sti ng of 10 members. Three members of
t he commi ssi on shal l be appol nted by the
I___I_-
*Ref erence t o Sectl on 1s t o t he Cal i f orni a L abor Code, unl ess
otherwi se noted.
* * Cal i f orni a Statutes ( Stats) of 1982, Chapter (Ch.) 682.
Governor, three members by t he Speaker of the
Assembly, and three members by the Senate
Rul es Commi ttee. Each appoi nti ng power shal l
appoi nt a l l censed tal ent agent, a personal
manager of at l east thr ee arti sts, and an
ar t i st . The Labor Commissioner shal l al so be
a member of the commission.
Labor Code Sectl on 1702 di rects the Commission to rePOKt1 as
f ol l ows:
1702. The commi ssi on shal l study the laws and
practi ces of t h i s state, the State of New
Y ork, and other entertal nment capi tal s of the
Uni ted States rel ati ng to the l i censi ng of
agents and representati ves of ar ti sts i n the
entertai nment i ndustry i n general , and the
recordi ng i ndustry i n partl cul ar, so as t o
enabl e the commi ssi on t o recommend t o the
L egi sl ature a model blll regardi ng thi s
l i censi ng.
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b) Any acti on of t he Commissioner would requi re the
attendance of at l east two ar ti sts, two personal managers and two
tal ent agents, and would requi re the vote of a maj ori ty of t h e
Commission.
c) The Chai r would not be a voti ng member except t o break a
ti e.
Pursuant to statutory mandate, the Commi ssi on studi ed the
laws and practi ces of Cal i f orni a and of New York and other
entertainment capi tal s of the Uni ted States. I n the course of
i ts del i berati ons, l t anal yzed i n mi nute detai l the Tal ent
Agencies Act of Cal i f orni a.
I t i s t he j udgment of a maj ori ty of the Commission that the
Tal ent Agenci es Act of Cal i f orni a i s a sound and workable statute
and that the recommendations contalned i n thi s report w ~ l l , lf
enacted by the Cal i f orni a L egl sl ature, transf orm that statute
i nto a model statute of i ts ki nd i n the Uni ted States.
The recommendations of t he Commission submitted i n t hi s
repart were, i n al l cases, supported by the maj ori ty of the
members of the Commission. A few recommendations were approved
unani mousl y. Mi nori ty vi ews of members of the Commission on
speci f i c i ssues are appended.
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Regul atory control s over each of these categorl es of
empl oyment agenci es were establ i shed, i ncl udi ng l i censi ng
requi rements and other restri ctl ons on the operati ons of
such agenci es.
I n 1943, t he " ar t i st manager" was added to the Employment
Agenci es Act (1943, Stats. 1326, Ch. 329). The ar tl st manager
was def i ned as:
A person who engages l n the occupatl on of
advi si ng, counsel i ng, or di recti ng arti sts i n
t he development or advancement of thei r
prof essi onal careers and who procures, of f ers,
promi ses or attempts to procure employment or
engagements of an arti st onl y i n connecti on
wi th and as a part of the duti es and
obl i gati ons of such person under a contract
wi th such ar t i st by whi ch such person
contracts to render servi ces of the nature
above menti oned to such ar ti st.
I n 1959, those provi si ons of the Employment Agencies Act
pertaining t o t he " ar t i st manager" were removed from that Act and
were pl aced i n the L abor Code as a separate group of sectl ons
(1959, Stats. 2929, Ch. 888).
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These f our cat egor i es of agent s- - empl oyment agent , t heat r i cal
empl oyment agent , mot i on pi ct ur e empl oyment agent and t he
ar t i st s' manager - - exi st ed unt i l 1967. I n t he year , t he
Cal i f or ni a Legi sl at ur e r epeal ed t he Empl oyment Agenci es Act ,
abol i shed t he cat egor i es of t heat r i cal empl oyment agent and
mot i on pi ct ur e empl oyment agent , t r ansf er r ed t he pr ovi si ons
r el at i ng t o empl oyment agenci es t o t he Busi ness and Pr of essi ons
Code and pl aced such agenci es under t he j ur i sdi ct i on of t he
Depar t ment of Pr of essi onal and Vocat i onal St andar ds ( si nce 1971,
t he Depar t ment of Consumer Af f ai r s) . Regul at i on of ar t i st s'
manager r emai ned i n t he Labor Code i n t he Ar t i st s' Manager Act ,
and, f or pur poses of admi ni st r at i on, under the j ur i sdl ct i on of
t he Labor Commi ssi oner .
I n 1978, t he Act was r enamed t he Tal ent Agenci es Act (1978,
St at s. Ch. 1382) and t hat r emai ns t he name of t he st at ut e t oday.
( The Tal ent Agenci es Act will her ei naf t er be r ef er r ed t o as t he
Act . ) Al so by t he same enact ment , ar t i st s' manager s became
" t al ent agent s" , and t he def i ni t i on of an ar t i st s' manager , now a
t al ent agent , was changed t o r ead as follows:
A t al ent agency is her eby def i ned t o be a
per son or cor por at i on who engages i n t he
occupat i on of pr ocur i ng, of f er i ng, pr omi si ng,
or at t empt i ng t o pr ocur e empl oyment or
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engagements for an arti st or arti sts. Tal ent
agenci es may, i n addi ti on, counsel or di rect
ar ti sts ln the development of thei r
prof essi onal careers.
I n 1982, AB 997 (Stats. , Ch. 682) made several
si gni f i cant changes i n the Act. Fi rst, it excl uded the procuri ng
of recordi ng contracts from the l i censure requi rements under the
Act. Sectl on 1700. 4 was amended by t he addi ti on of the f ol l owi ng
underl l ned l anguage:
1700. 4. (a) A tal ent agency i s hereby defi ned
t o be a person or corporaki on who engages i n
the occupati on of procuri ng, or attemptl ng to
procure employment or engagements f or an
arti st or arti sts, except that the acti vi ti es
of procuri nq, offeri ns, or Promi si ns to
procure recordi ns contracts f or an ar t i st or
arti sts shal l not of i tsel f subi ect a person
or corporati on to requl atl on and l i censi nq
under t hi s chapter. Tal ent agencl es may, i n
addi ti on, counsel or di rect arti sts i n the
development of thei r prof essi onal careers.
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T
ISSUES
The pr i nci pal issues addressed by t he Commission were as
follows:
1. Under what condi ti ons or ci rcumstances, i f any, shoul d a
personal manager or anyone other than a l i censed tal ent agent be
al l owed to procure, of f er, promi se or attempt to procure
empl oyment or engagements (hereaf ter thi s phrase, whi ch i s found
i n the statutor y def i ni ti on of "tal ent agency" w i l l be shortened
to "procure empl oyment") f or an arti st wl thout bei ng l i censed as
a tal ent agent?
2. What changes, i f anyl shoul d be made i n the provi si ons of
the Act exempti ng from the Act a person who procures recordi ng
contr acts f or an ar ti st?
3 , Shoul d the cri ml nal sancti ons of the Act, removed by AB
997, be rei nstated and, ~f so, i n what f orm?
4 . Shoul d the sunset provi si ons added t o the Act by AB 997
be del eted?
5. Shoul d t he ent i r e A c t be repeal ed and/or shoul d there be
a separate l i censi ng law f or personal managers?
6. What other changes, i f any, shoul d be made i n t he A ct ?
12
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t al ent agency i n t he negot i at i ons of an
empl oyment cont r act .
Recommendat i ons
The Commi ssi on r ecommends t hat , wi t h mi nor except l on, no
change be made i n t he pr esent l anguage of Sect i on 1700.44 of the
Act r egar di ng t hi s i ssue.
Di scussi on
As not ed above, a t al ent agent i s def i ned i n Sect i on 1700.4
of t he Act as f ol l ows:
1700.4. (a) A t al ent agency i s her eby def i ned
t o be a per son or cor por at i on who engages i n
t he occupat i on of pr ocur i ng, of f er i ng,
pr oml sl ng or at t empt i ng t o pr ocur e empl oyment
or engagement s f or an ar t i st or ar t i st s,
except t hat t he act i vi t i es of pr ocur i ng,
of f er i ng or pr omi si ng t o pr ocur e r ecor di ng
cont r act s f or an ar t i st or ar t i st s shal l not
of i t sel f s ub- ~ect a per son or cor por at i on t o
r egul at i on and l i censi ng under t hi s chapt er .
Tal ent agenci es may, i n addi t i on, counsel OX
14
dl r ect ar t i st s i n the devel opment of thel r
prof essl onal careers.
Sectl on 1700.5 provi des i n pertl nent part, as follows:
1700.5. No person shal l engage i n or carry on
the occupati on of a tal ent agency wi thout
f i r st pr ocur i ng a l i cense theref ore from the
Labor Commi ssl oner. Such l i cense shal l be
posted rn a conspi cuous pl ace i n the of f i ce of
the l i censes.
The maj or, and phi l osophi cal l y t he most di f f i cul t, i ssue
bef ore t h e Commi ssi on, t he di scussl on of whi ch consumed a
substanti al porti on of the time of most of the meeti ngs of t he
Commi ssi on, was t hi s f i r st i ssue: When, i f ever, may a personal
manager or, f or that matter, anyone other than a l i censed Tal ent
Agent, procure empl oyment f or an arti st wi thout obtai ni ng a
tal ent agent' s l i cense from t he Labor Commissioner?
No cl ear l egi sl ati ve i nt ent can be di scerned to assi st i n
answeri ng t hi s cr i t i cal and f undamental questl on.
When t he ar t i st s' manager provi si ons of the Employment
Agenci es Act were removed from that Act i n 1959 (see above), the
personal manager prof essi on was sti l l i n i ts i nf ancy.
15
The Tal ent Agenci es Act of 1978, or i gi nal l y i nt r oduced as AB
2535, woul d have r equi r ed a separ at e per sonal manager l i cense f or
al l per sonal manager s, whet her or not t hey pr ocur ed empl oyment
f or an ar t i st at any t i me. However , t hat por t i on of t he bi l l
r el at i ng t o per sonal manager s was del et ed.
The cont r over sy over t hl s i ssue IS l ong st andi ng i n t he
ent er t ai nment i ndust r y.
The posi t i on of t he t al ent agent s i s t hat anyone who per f or ms
t he same f unct i on as t hey i n pr ocur i ng empl oyment f or an ar t i st
shoul d be subl ect t o t he same st at ut or y and r egul at or y
obl i gat i ons as t hey ar e- - not hi ng mor e and not hi ng l ess. Those
obl i gat i ons i ncl ude r egul at i on of cont r act t er ms and f ees by t he
Labor Comml ssi oner and t he r equi r ement s of f r anchi se agr eement s
wi t h uni ons r epr esent i ng t he ar t l st s. Tal ent agent s i ncr easi ngl y
f i nd t hemsel ves i n compet i t i on wi t h per sonal manager s and ot her s
i n seeki ng empl oyment f or cl i ent s. I n t he opi ni on of t he t al ent
agent s, t he i ssue i s si mpl y one of f ai r ness: al l who seek
empl oyment f or an ar t i st shoul d be l i censed or none shoul d be
1 i censed.
Per sonal manager s cont end t hat t he r eal i t y of t he
ent er t al nment i ndust r y r equi r es t hat , i n t he nor mal cour se of t he
conduct of t hei r pr of essi on, t hey must engage i n l i mi t ed
16
actl vl tl es whlch could be construed as procuri ng employment.
Such acti vi ty i s onl y a mi nor and i nci dental part of thei r
servi ces to the arti st. The essence of thei r servi ce, whi ch is
counsel i ng the arti st i n t he development of hi s/her professi onal
career, i s not t he ki nd of acti vi ty whi ch can feasi bl y or
l egl ti matel y be made t he sub~ect of l i censure. They argue that
I f they are requl red to be l i censed, they w i l l not onl y be
requi red to procure employment f or thei r cl i ents, which i s not
the essence of thei r servi ce to cl i ents, but thei r f ees, t he
l ength of the contracts, and other aspects of thei r servi ce will
be control l ed by the Labor Commlssioner and t he uni ons. The f ees
f or personal managers are i ntri nsi cal l y di f f erent from f ees f or
procuri ng empl oyment and refl ect not onl y the val ue of an
I ntangi bl e servi ce but t he greater ri sk whi ch i s assumed by t he
personal manager i n the eventual arti sti c success of thei r
cl i ents.
The Commission attempted over many hours and by di l i gent
expl orati on and anal ysi s of al ternati ves t o f i nd a common ground
of compromise on whi ch an answer to t hi s f i rst i ssue coul d be
formul ated, but wi thout success.
The Commission consi dered, and rej ected, al ternati ves whi ch
would have al l owed:
17
The personal manager to engage i n "casual
conversati ons" concernl ng t he sui tabl l l ty of
an ar ti st f or a r ol e or part, subj ect,
however, to t he other restri cti ons of
1700.44(d) above. ( A t present, even a "casual
conversatl on" whi ch l ead dl rectl y or
i ndi r ectl y to employment: can be construed as
i l l egal unl i censed acti vi ty. )
The tal ent agent or the ar t i st , wi th or
wi thout t he consent of the tal ent agent, t o
cal l a personal manager i nto t he negoti ati ons
of an empl oyment contract. ( A t present, a
personal manager can become i nvol ved i n the
negoti atl ons of an empl oyment contract onl y at
t he request of a dul y l i censed and f ranchi sed
tal ent agent- - see Secti on 1700.4, above.);
The personal manager to act i n conj uncti on
wi th the tal ent agent i n the negoti ati on of an
empl oyment contract whether or not requested
to do so by the tal ent agent.
The Commi ssi on al so revl ewed proposal s that would have
exempted from the Act:
18
Anyone who does not charge a f ee or commi ssi on
or other f orm of compensati on f or procuri ng
empl oyment f or an arti st; and
,
Anyone who i s a bona f i de empl oyer of the
ar t i st who does not represent t he arti st i n
procuri ng empl oyment,
As noted, all of these al ternati ves were rej ected by t h e
Commission.
T hus, l n searchi ng f or t he permi ssi bl e limits to acti vi ti es
l n whi ch an unl i censed personal manager or anyone coul d engage
i n procuri ng empl oyment f or an arti st wi thout bei ng l i censed as a
tal ent agent, t he Commi ssi on concl uded that there i s no such
acti vi ty, that there are no such permissible limits, and t hat the
prohi bi ti ons of t he Act over the acti vi ti es of anyone procuri ng
employment f or an arti st wi thout bei ng l i censed as a tal ent agent
must remai n, as they are today, total . Excepti ons i n t he nature
of i nci dental , occasronal or i nf requent acti vi ti es rel ati ng i n
any way to procuri ng empl oyment f or an arti st cannot be
permi tted: one ei ther is, or IS not, l i censed as a tal ent agent,
and, i f not so l i censed, one cannot expect to engage, wi th
i mpuni ty, i n any acti vi ty rel ati ng t o the servi ce whi ch a tal ent
l9
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The acti vi ti es of procuri ng, of f eri ng, or
promi si ng to procure recordi ng contracts f or
an ar t i st or arti sts shal l not of i tsel f
subj ect a person or corporatl on to regul ati on
and licensing under t hi s chapter.
A recordi ng contract i s not, In essence, a contract of
empl oyment. I t i s a contract to produce a permanent and
repayabl e showcase of the tal ents of t he ar ti st. I n t he
recordl ng i ndustry, many successf ul artl sts retai n personal
managers to act as thei r i ntermedi ari es, and the negoti ati on of a
recordi ng contract is commonly done by a personal manager, not a
tal ent agent. Personal managers f requentl y contri bute f i nanci al
support f or t he l i vi ng and busi ness expenses of entertai ners.
They may act as a condui t between the arti st and the recordi ng
company, of f eri ng suggestl ons about the use of the ar ti st or the
l evel of ef f ort whi ch the recordi ng company i s expendi ng on
behal f of t he ar t i st . The personal manager may become i nvol ved
i n travel arrangements on behal f of t he arti st, someti mes
accompanyi ng the artl st to oversee arrangements f or pl anes and
hotel s.
However, t he probl ems of attempti ng to l i cense or otherwi se
regul ate thi s acti vi ty ari se f rom the ambi gui ti es, i ntangi bl es
and t he i mpreci si ons of the acti vi ty, and i ts suscepti bl l i ty of
bei ng i nterpreted as an empl oyment acti vi ty, whi ch i t i s not.
22
The ma-~ority of the Commission concl uded that the industry
would be best served by resolving these ambiguities on the side
of preservi ng the exemption of t hi s activity from the
requirements of l i censure.
23
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The Commi ssi on t hen consl der ed t he f ol l owi ng:
Any pr ovi sl on of any law or pr ovi si on i n t he
St at e of Cal i f or ni a t o t he cont r ar y
not wl t hst andi ng, any per son who vi ol at es any
pr ovi si ons of t hi s chapt er 1s gui l t y of a
mi sdemeanor puni shabl e by a f i ne not t o exceed
$1, 000 f or t he f i r st of f ense, $5, 000 f or t he
second of f ense and $10,000 f ox t he t hi r d and
each succeedi ng of f ense, or by i mpr i sonment
f or a per i od of not more t han si x mont hs, or
bot h, except t hat vi ol at i on of Sect i on 1700.5
of t hi s Act shal l be consi der ed an i nf r act i on,
puni shabl e onl y by a f i ne i n t he above
amount s.
Upon f ur t her del i ber at i on, t he Commi ssi on t ook no act i on on
t h i s pr oposed addi t i on. I nst ead i t concl uded t hat t he i ndust r y
woul d be bet t er ser ved by havl ng no cr i mi nal sanct i ons at t ached
t o t he Act .
The maj or i t y of t he Commi ssi on bel i eves t hat exi st i ng ci vi l
r emedi es, whi ch ar e avai l abl e by l egal act i on i n t he ci vi l
cour t s, t o anyone who has been i nj ur ed by br each of t he Act , ar e
suf f i ci ent to ser ve t he pur poses of det er r i ng vi ol at i ons of the
26
Act and puni shi ng br eaches. These r emedi es i ncl ude act i ons f or
br eaches of cont r act , f r aud and mi sr epr esent at i on, br each of
f i duci ar y dut y, i nt er f er ence wi t h busi ness oppor t uni t y,
def amat i on, i nf l l ct i on of er not l onal di st r ess and t he l i ke.
Per haps t he most ef f ect i ve weapon f or assur i ng compl i ance wi t h
t he Act 1s t he power of t he Labor Commi ssi oner , at a hear i ng on a
Pet i t i on t o Det er ml ne Cont r over sy, t o f i nd t hat a per sonal
manager or anyone has act ed as an unl i censed t al ent agent and,
havl ng so f ound, decl ar e t he cont r act vol d f r omt he i ncept i on and
or der t he r est l t ut i on t o t he ar t i st of al l f ees pai d by t he
ar t i st and t he f or f ei t ur e of al l expenses advanced t o t he ar t i st .
These ci vi l and admi ni st r at i ve r emedi es cont i nue t o be
avai l abl e.
27
I ssue 4
Shoul d the sunset provi si ons added t o the Act by
AB 997 be del eted?
Conclusion
The sunset pr ovl si ons of the Act should be del
Recommendations
eted.
The fol l owi ng secti on of the Act shoul d be del eted:
1700.4(b). T hi s secti on shal l remain i n
ef f ect onl y unt i l J anuary 1, 1985, and as of
that date i s repeal ed, unl ess a l ater enacted
statute, which i s chaptered before J anuary 1,
1985, del etes or extends t hat date.
1700.44: T hi s secti on shal l rernaln i n ef f ect
onl y u n t i l J anuary 1, 1985, and as of that
date i s repeal ed, unl ess a l ater enacted
statute, whlch i s chaptered before J anuary 1,
1985, del etes or extends that date.
28
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stri ps, vi deo tapes or other reproducti ons of
the appl i cant; ( 4 ) f or costumes for the
appl i cant; or (5) any charge of a l i ke nature
made, or attempted to be made to the
appl i cant .
Reason: "Regi strati on f ee" is not presentl y defl ned l n the
A c t and must be defi ned because i t i s l ater proposed that the
col l ecti on of a regi strati on f ee be prohi bi ted. The prohi bi tl on
agai nst the regi strati on f ee has been added t o Secti on 1700.40.
2 . Add t o that paragraph of Secti on 1700.4(a) whi ch defi nes
"arti sts" the word "model s" as f ol l ows:
The word "arti sts" as used herei n refers to
actors and actresses renderi ng servi ces on the
l egi ti mate stage and i n the producti on of
moti on pi ctures; radi o arti sts; musi cal
arti sts; musl cal organi zati ons; di rectors of
l egi ti mate stage, moti on pl cture and radi o
producti ons; musi cal di rectors; wri ters;
ci nematographers; composers; l yri ci sts;
arrangers; model s and other entertal nment
enterpri ses.
Reason: As persons who functi on as an i ntegral and
33
si gnl f i cant part of the entertai nment i ndustry, model s shoul d be
i ncl uded wi thi n the def i ni ti on of ar ti st.
3. Add t o Secti on 1700.6 (d) the requi rement f or f l ngerpri nti ng
as a part of the appl i cati on f or a l i cense as a tal ent agent, and
make other mi nor changes as f ol l ows:
The appl i catl on must be accompani ed by two
sets of f i ngerpri nts and af f i davi ts of at
l east two reputabl e resi dents of the ci ty or
county i n whi ch the busi ness of the tal ent
agency i s to be conducted who have known, or
been associ ated wi th, t he appl i cant f or two
years, that the appl i cant i s a person of good
moral character orl i n t he case of a
corporati on, has a reputati on f or f ai r
dea 1 i ng.
Reason: Fi ngerpri nts are necessary and shoul d be requi red as
a part of background checki ng f or tal ent agents. The other
changes are f or cl ari f i cati on onl y.
4 . Change Secti on 1700.9 to read as follows:
1700.9 No l i cense shal l be granted t o conduct
34
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(c) The condl tl ons under whi ch the l i cense
was i ssued have changed or no l onger exi st, or
(dl L i censee has made any materi al
mi srepresentati on or f al se statement l n hi s
appl l catl on f or a l i cense.
Reason: To gi ve added protecti on to the arti st agai nst
mi srepresentati on or f al sl t y by the appl i cant.
8. Change Secti on 1700.24 as follows:
Every p c ~ s a n - e n g a g c d - i n - t ~ e - e e e ~ ~ ~ t ~ a ~ - e f - a
tal ent agency shal l f i l e wi th the L abor
Commi ssi oner a schedul e of fees to be charged
and col l ected i n the conduct of such
occupati on, and shal l al so keep a copy of such
schedul e posted i n a conspi cuous pl ace i n t he
of f i ce of such tal ent agency. Changes i n t he
schedul e may be made from ti me t o tlme, but no
f ee or change of f ee shal l become ef f ecti ve
unt i l seven days af ter the date of f i l i ng
thereof wi th the Labor Commi ssi oner and unti l
posted for not l ess than seven days i n a
conspi cuous pl ace i n the of f i ce of such tal ent
agency
37
cl ar l f l cat i on.
9. Del ete Sect i on 1 7 0 0 . 2 5 as unnecessar y and burdensome and add
t he f ol l owi ng new sect i on:
A l l censee who r ecei ves any payment (on behal f
of an ar t i st ) shal l i mmedi at el y deposi t same
i n a trust f und account mai nt ai ned by him i n a
bank or other r ecogni zed deposi t or y.
Sai d f und, l ess l i censee' s commission, shall
be di sbur sed t o the ar t i st wi t hi n 15 days
af t er r ecei pt .
A separ at e r ecor d shal l be mai nt ai ned of al l
moni es r ecei ved subj ect t o t hi s sect i on and
s a i d record shall f ur t her i ndi cat e t he
di sposi t i on t her eof .
Reason: To pr ovi de addi t i onal pr ot ect i on t o moni es due and
owl ng to an ar t i st whl ch ar e pai d t o t he t al ent agent ,
38
t
7
10. Delete the following l anguage from Secti on 1700.26:
Every talent agency shal l keep records
approved by the Labor Commi ssi oner, i n which
shal l be entered: (1) the name and address of
each ar t l st employing such tal ent agency; ( 2)
t he amount of fee recei ved from such artist:
(3) the employments secured by such ar ti st
duri ng the term of the contract between the
arti st and the tal ent agency, and the amount
of compensation recei ved by the art i s t s
pursuant thereto; and ( 4 ) other i nf ormati on
whi ch the Labor Commissioner requires,
No tal ent agency, its agent or employeesr
shall make any false entry in any such
records.
Reason: The del eted l anguage is redundant, unnecessary and
burdensome.
11. Change Secti on 1700.30 as follows:
NO talent agency shal l sel l , transf er, or gi ve
away to anv person other than a di rector,
officerJ manaqer, employee or sharehol der of
the tal ent aqencv any i nterest i n or the r i ght
39
to par tl ci pate i n the pr of i ts of the tal ent
agency without the wri tten ConSent Of the
Labor Commi ssi oner.
Reason: The proposed excepti ons are requi red to avoi d the
necessi ty of havi ng t he Labor Commissioner act as an approvi ng
authori ty on such matters as stock issues, bonuses, compensati on
pl ans and testamentary i nstruments. The Labor Commissioner has
no regul atory j uri sdi cti on as t o such matters.
12. Change Secti on 1700.33 to read as follows:
NO tal ent agency shal l send or cause to be
sent, any - neman- er - mi nar - as - an- er n~~0y ee- t e- a~~
~ause-af-i~~-famc~-te-~ny-~euse-er-p~eee-ef
a m a s e m c n t - f a r - i m m e r a ~ - p ~ r p ~ ~ e s ~ - t ~ - p ~ a e e ~
r e s a r t c d - t ~ - f a r - t h c - p u ~ ~ e s e ~ - ~ f - ~ r e ~ t ~ t u t ~ ~ n ~
ar ti st to any pl ace where the heal th, s af e t vL
or wel fare of the artl st coul d be adversel y
af f ected, t he character of whi ch pl aces the
tal ent agency coul d have ascertai ned upon
reasonabl e i nqui ry.
Reason: To broaden the protecti ons of the ar ti st ln terms of
pl aces of permi ssi bl e empl oyment.
4 0
13. Add to Secti on 1700.40 the f ol l owi ng f i rst sentence:
NO tal ent agent shal l col l ect a regi strati on
f ee.
Reason: To prohi bi t the col l ecti on of a regi strati on f ee
whi ch i s unnecessary, burdensome and of ten subj ect t o abuse.
14. Change the thi rd paragraph of Secti on 1700.44 as fol l ows:
NO acti on or proceedi ng may be pr oet eut c d
brouqht under thi s chapter wi t h respect t o
any vi ol ati on occurri ng or al l eged to have
occurred more than one year pri or t o
commencement of the acti on or proceedi ng.
Reason: A l anguage change t o cl ar i f y the commencement of the
statutory peri od wi thi n whi ch an acti on f or al l eged vi ol ati on of
* the Act must be i nsti tuted.
15. Change Secti on 1700.45 by addi ng the f ol l owi ng underl i ned
words to subsecti ons (a) and (b) thereof :
Notwi thstandi ng Secti on 1700.44, a provi si on
i n a contract provi di ng f or the deci si on by
41
ar bi t r at l on of
any CO
cont r act or as t o i t s
nt r over sy under t he
exi st ence, val i di t y,
const r uct i on, per f or mance, non- per f or mance,
br each, oper at i on, cont i nuance, or
t er mi nat l on, shal l be val i d:
( a) If t he pr ovl si on i s cont ai ned i n a
cont r act bet ween a t al ent agency and a per son
f or whomsuch t al ent agency under t he cont r act
under t akes t o endeavor t o secur e empl oyment ,
or
(b) If t he pr ovi si on i s i nser t ed i n t he
cont r act pur suant t o any rule, r egul at i on, or
cont r act of a bona f i de l abor uni on r egul at i ng
t he r el at i ons of i t s member s t o a t al ent
agency, @
( c) I f t he cont r act pr ovi des f or r easonabl e
not i ce t o t he Labor Commi ssi oner of t he t i me
and pl ace of al l ar bi t r at l on hear i ngs and,
(a) I f t he cont r act pr ovi des t hat t he Labor
Commi ssi oner or hi s aut hor l zed r epr esent at i ve
has t he r i ght t o at t end al l ar bi t r at i on
hear i ngs.
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Reason: To cl ar i f y t he appl i cat i on of t he enumer at ed
condi t i ons whi ch must be met f or a pr ovi si on ar bi t r at i on to be
42
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