BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1319|
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                                 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





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          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.








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             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.








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                (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.







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             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.







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          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)








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          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  







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          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.    








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          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,  







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            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  ****