BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1319| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1319 Author: Krekorian (D) Amended: 8/27/09 in Senate Vote: 21 SENATE JUDICIARY COMMITTEE : 4-1, 6/23/09 AYES: Corbett, Harman, Florez, Leno NOES: Walters SENATE LABOR & INDUST. RELATIONS COMMITTEE : 4-1, 7/8/09 AYES: DeSaulnier, Wyland, Ducheny, Leno NOES: Hollingsworth NO VOTE RECORDED: Yee SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 58-21, 6/1/09 - See last page for vote SUBJECT : Talent services SOURCE : Better Business Bureau Office of the Los Angeles City Attorney Screen Actors Guild DIGEST : This bill prohibits advancefee talent services and revises provisions of existing law on fee-related talent services. Senate Floor Amendments of 8/27/09 amend the definition of "fee" and "advance-fee talent representation service," and CONTINUED AB 1319 Page 2 make clarifications in several other definitions in the bill. ANALYSIS : Existing law provides for the regulation and licensure of talent agencies, specifically defining talent agency as a person or corporation who engages in the occupation of procuring, offering, promising, or attempting to procure employment or engagements for an artist or artists, including career advice and development. Talent agencies involved with the music industry are exempted. Existing law defines "advance-fee talent services" as someone who does any of the following services: 1. Procuring or attempting to procure employment or an engagement as an artist. 2. Procuring or attempting to procure an audition for an artist. 3. Managing or directing the development of an artist's career. 4. Procuring or attempting to procure a talent agent or talent manager, including an associate, representative or designee thereof. Existing law also contains special requirements for individuals who provide advance-fee talent services, and requires specific contract language to distinguish advance-fee talent services from talent agencies. This bill repeals in its entirety the Labor Code chapter that addresses advance-fee talent services, and: 1. Prohibits a person from owning, acting in the capacity of, advertising for or soliciting for, or knowingly referring any person to an "advance-fee talent representation service" as defined above. This also includes a person that charges an artist a fee for any other product or service in order for the artist to obtain, from or through the person, any of the services listed above. AB 1319 Page 3 A. Defines "advance-fee talent representation service" as a person who provides or offers to provide, or advertises or represents itself as providing, an artist, directly or by referral to another person, with one or more of the following services described below, provided that the person charges or receives a fee from or on behalf of an artist for photographs, Internet Web sites, or other reproductions or other promotional materials as an artist; lessons, coaching, seminars, workshops, or similar training fro an artist; or for one or more of the following specified services. "Advance-fee talent representation service" also means a person who charges or receives a fee from, or on behalf of, an artist for any product or service required for the artist to obtain, from or through the person, any of the services set forth in this bill. 2. Creates four distinct Fee Related Talent Services: talent counseling, talent listing, talent training, and talent scout. A. Defines a "talent counseling service" as a person who is not otherwise any artist's talent manager and who, for a fee, provides or offers to provide, or advertises or represents itself as providing, that artist, directly or by referral to another person, with career counseling, career consulting, vocational guidance, aptitude testing, career evaluation, or career planning as an artist. B. Defines a "talent listing service" as a person who, for a fee, provides or offers to provide, or advertises or represents itself as providing, an artist, directly or by referral to another person, with any of the following: (1) A list of one or more auditions or employment opportunities. (2) A list of one or more talent agents or talent managers, including an associate, representative, or designee thereof. AB 1319 Page 4 (3) A search, or providing the artist with the ability to perform a self-directed search, of any database for an audition or employment opportunity, or a database of talent agents or talent managers, or an associate, representative, or designee thereof. (4) Storage or maintenance of any of the following for distribution or disclosure to a talent agent, talent manager, or an associate, representative, or designee thereof, or to a person represented as offering an audition or employment opportunity: the artist's name, photograph, Internet Web site, filmstrip, videotape, audition tape, demonstration reel, resume, portfolio, or other reproduction or promotional material of the artist, or an artist's schedule of availability for an audition or employment opportunity. C. Defines a "talent training service" as a person who, for a fee, provides or offers to provide, or advertises or represents itself as providing, an artist, directly or by referral to another person, with lessons, coaching, seminars, workshops or similar training as an artist. D. Defines a "talent scout" as an individual employed, appointed, or authorized by a talent service, who solicits or attempts to solicit an artist for the purpose of becoming a client of the service. E. Establishes a definition for fee-related "talent services" as either a "talent counseling service," a "talent listing service," or a "talent training service." This bill also: 1. Exempts from the requirements of this bill the following organizations: A. A public educational institution. AB 1319 Page 5 B. A nonprofit corporation, as defined. C. A labor organization. D. A newspaper, bona fide newsletter, magazine, trade or professional journal, or other publication of general circulation, whether in print or on the Internet, that has as its main purpose the dissemination of news, reports, trade or professional information. E. A public institution. 2. Prohibits a "talent service," its directors, officer, agents, and employees from engaging in a number of specified activities, including false advertisement, charge certain additional fees, and referring an artist to a service where the directors, officer, agents, and employees have either a direct or indirect financial interest. 3. Prohibits a "talent training service" and a "talent counseling service," and its officers, directors, agents, and employees from operating or having a direct or indirect financial interest in a talent listing service. 4. Provides that a "talent listing service," and its officers, directors, agents, and employees shall not do either of the following: A. Own, operate, or have a direct or indirect financial interest in a "talent training service" or a "talent counseling service". B. Provide a listing of an audition, job, or employment opportunity without written permission for the listing. A talent listing service would have to keep and maintain a copy of all original listings; the name, business address, and business telephone number of the person granting permission to the talent listing service to use the listing; and the date the permission was granted. AB 1319 Page 6 5. Revises requirements related to language and other provisions for contracts between artists and talent services. 6. Prohibits a contract for fee-related talent services from having a term of more than one year and being automatically renewed, as well as amend procedures related to the cancellation of contracts and refunds. 7. Revises and expands existing recordkeeping requirements, including: A. The name and address of each artist contracting with the talent service. B. The amount of the fees paid by or for the artist during the term of the contract with the talent service. C. The amount of fees reimbursed and proof they were not an advance for a third party. D. The original contract issued between the talent service and the artist. E. Documented proof of certain advertisement claims. 8. Increases a bond requirement for talent services from $10,000 to $50,000. 9. Provides that a person, including an officer, director agent, or employee who willfully violates these provisions is guilty of a misdemeanor. 10.Provides that damages for violations shall be no less than three times the amount paid by the artist to the talent service. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes SUPPORT : (Verified 8/28/09) AB 1319 Page 7 Better Business Bureau (co-source) Office of the Los Angeles City Attorney (co-source) Screen Actors Guild (co-source) - Billy DaMota Casting - BizParentz Foundation - California District Attorney's Association - Marin County District Attorney Edward Berberian - Orange County District Attorney Tony Rackauckas - San Diego City Attorney, Jan I. Goldsmith - San Francisco District Attorney Kamala Harris - The Walt Disney Company - The Motion Picture Association of America, Inc. (includes Walt Disney Studios Motion Pictures, Paramount Pictures Corporation, Sony Pictures Entertainment, Inc., Twentieth Century Fox Film Corp., Universal Studios LLLP, Warner Bros. Entertainment Inc.) OPPOSITION : (Verified 8/28/09) Association of Talent and Modeling Agencies ARGUMENTS IN SUPPORT : According to the Los Angeles City Attorney's Office and the Better Business Bureau of the Southland, complaints about acting and modeling scams have doubled every year since 2006, and are expected to do so again in 2009. During that time, in Southern California alone, there have been approximately 1,000 complaints and an additional 143,000 inquiries. The Orange County District Attorney's Office has communicated similar concerns and their support for this bill. Proponents note that this bill will address a growing trend of fraud and abuse that has double every year since 2006. Proponents argue that with the unprecedented popularity of "American Idol" and other reality television programming, the false promise of instant stardom has increasingly become a fertile ground for talent peddlers to scam the public, victimizing children and young adults in particular. The proponents argue that this fraud is accomplished through deceptive newspaper, Internet and radio advertisements and by phony "talent scouts," that invite individuals to an "audition" which turns out to be a "bait and switch" attempt to sell photographs, classes and AB 1319 Page 8 listing services. The proponents also note that this bill would require that each contract contain a clause allowing the artist to request removal of his/her information and/or photographs from a talent service's Internet website, protecting the rights of the artist. Proponents contend that talent services should not be advertising artist success stories unless they can prove the artists actually utilized their services. Finally, the proponents note that the additional bond requirements will ensure that funds area available if an individual or family is victimized by a talent service provider. Proponents argue that it is not difficult to post a bond, nor it is required to post $50,000 in order to obtain one. According to the proponents, a talent service would only be required to pay between 1.5 percent and five percent of the bond amount per year ($500 to $2,500), depending on the service's credit score. ARGUMENTS IN OPPOSITION : The Association of Talent and Modeling Agencies argues that certain provisions within this bill are unreasonable, unnecessary, and extremely burdensome to law-abiding talent and modeling service agencies. First, the Association is concerned that the definition of "advance-fee talent representation service" may be interpreted to cover talent conventions/ competitions, such as those hosted by International Modeling and Talent Association (IMTA) and the International Presentation of Performers (iPOP). According to the Association, acting and modeling schools offer their students an opportunity to go to these talent conventions/competitions for a fee, which includes the cost of transportation, hotel, tickets to the convention, and the cost of the tickets to the awards banquet. The Association is concerned that if this bill prohibits referring artists to these conventions, iPOP, IMTA, and other convention hosts will move to other venues. The Association suggests amending the bill to permit that advance-fee services be provided to students already enrolled with a modeling or talent service. AB 1319 Page 9 Second, the Association is concerned with the bill's requirement that a talent service remove information about, or photographs of, an artist displayed on the talent service's Internet website within 10 days of a request from the artist. The Association asserts that this would allow an artist to unilaterally breach a negotiated agreement with an acting or modeling school where the school offers to train the artist for a fee and the right to use their name and likeness as someone who has attended the school. Further, the Association is concerned that talent services would not be permitted to advertise artist success stories unless they have a written contract for that artist. The Association states that some talent training services, such as John Robert Powers, were established at a time when written contracts were either not issued or maintained and thus do not have actual signed contracts with many of their pre-1960 artist. The Association asserts that these talent service providers should not be precluded from continuing to advertise those artists. The Association suggests amending the bill to allow for an exception if the artist and talent training service have a valid contract where the artist agrees to allow the use his/her name and likeness by the talent training service. Third, the Association states that the increased bond requirement from $10,000 to $50,000 is excessive and unreasonable. It suggests maintaining the $10,000 bond requirement for companies with a physical presence in California, and requiring a $50,000 bond for those companies who do not have a physical presence in the state. ASSEMBLY FLOOR : AYES: Ammiano, Arambula, Beall, Bill Berryhill, Blumenfield, Brownley, Buchanan, Caballero, Charles Calderon, Carter, Chesbro, Cook, Coto, Davis, De La Torre, De Leon, Emmerson, Eng, Evans, Feuer, Fong, Fuentes, Furutani, Galgiani, Hall, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman, Jones, Krekorian, Lieu, Bonnie Lowenthal, Ma, Mendoza, Monning, Nava, Nestande, John A. Perez, V. Manuel Perez, Portantino, Price, Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio, Swanson, Torlakson, Torres, Torrico, Tran, Yamada, Bass NOES: Adams, Anderson, Tom Berryhill, Blakeslee, Conway, DeVore, Duvall, Fletcher, Fuller, Gaines, Garrick, AB 1319 Page 10 Gilmore, Hagman, Jeffries, Knight, Logue, Miller, Niello, Nielsen, Audra Strickland, Villines NO VOTE RECORDED: Block RJG:mw 8/28/09 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****