BILL ANALYSIS
AB 1319
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1319 (Krekorian)
As Amended August 27, 2009
Majority vote
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|ASSEMBLY: |58-21|(June 1, 2009) |SENATE: |24-10|(September 2, |
| | | | | |2009) |
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Original Committee Reference: L. & E.
SUMMARY : Recasts and revises provisions of existing law regulating
advance-fee talent services.
The Senate amendments :
1 Require that specified contracts and agreements between an artist
and a talent service must also include the fax number, e-mail
address, and Internet Web site address of the talent service.
2)Specify that "fees" do not include appearances, marketing or
similar activities by an artist rendered in the context of
promoting the artist's career, or royalties or profit
participation from work or services as an artist payable under a
bond fide contract.
3)Revise the definitions of "talent counseling service," "talent
listing service," and "talent training services," as specified.
4)Revise the definition of "advance-fee talent representation
service," as specified.
5)Require the contract to also state that a dispute arising out of
the performance of the contract by the talent service that is not
resolved should be referred to a local consumer affairs department
or local law enforcement, as appropriate.
6)Specify that a contract between an artist and a talent service
shall have a term of not more than one year and shall not be
renewed automatically.
7)Prohibit a talent service from failing to remove information
about, or photographs of, the artist displayed on the talent
service's Internet Web site or a Web site that the service has the
authority to design or alter within 10 days of a request.
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8)Prohibit a talent listing service from making or causing to be
made an advertisement or representation that includes the
trademark, logo, name, word, or phrase of a company or other
organization (as specified) in any manner that falsely or
misleadingly suggests the endorsement, sponsorship, approval, or
affiliation of a talent service.
9)Restore the requirement that a violation must be "willful" to
constitute a misdemeanor.
10)Specify that the remedies provided in statute are not exclusive
and shall be in addition to any other remedies or procedures
provided in any other law, including Business and Professions Code
Section 17500.
11)Specify that nothing in the bill is intended to prohibit
legitimate contractual business relationships between artists and
bona fide record companies or to excuse a person from complying
with specified requirements of existing law.
12)Make other technical changes.
AS PASSED BY THE ASSEMBLY , this bill:
1 Established a definition for an "advance-fee talent representation
service" and prohibited a person from owning, acting in the
capacity of, advertising for or soliciting for, or knowingly
referring any person to such services.
2)Established a definition for fee-related "talent services" as
either a "talent counseling service," a "talent listing service,"
or a "talent training service."
3)Defined a "talent counseling service" as a person who is not
otherwise an artist's talent manager and who, for a fee, provides
or offers to provide, holds themselves out as providing, or
represents it will make a referral to another person who will
provide an artist with career counseling, career consulting,
vocational guidance, aptitude testing, career evaluation, or
career planning as an artist.
4)Defined a "talent listing service" as a person who, for a fee,
provides or offers to provide, holds themselves out as providing,
or represents it will make a referral to another person who will
provide an artist with any of the following:
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a) A list of one or more auditions or employment opportunities;
b) A list of one or more talent agents or talent managers,
including an associate, representative or designee thereof;
c) 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; and,
d) 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.
5)Defined a "talent training service" as a person who, for a fee,
provides or offers to provide, holds themselves out as providing,
or represents it will make a referral to another person who will
provide an artist with lessons, coaching, seminars, workshops, or
similar training as an artist.
6)Established a number of specified exemptions from the requirements
of this bill for various entities or individuals that meet certain
conditions.
7)Prohibited a "talent service," its directors, officer, agents and
employees from engaging in a number of specified activities.
8)Prohibited 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.
9)Provided 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
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service;" or,
b) Provide a listing of an audition, job, or employment
opportunity without written permission for the listing. A
talent listing service shall 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.
1)Revised requirements related to language and other provisions for
contracts between artists and talent services.
2)Prohibited a contract for fee-related talent services from being
automatically renewed.
3)Amended procedures related to the cancellation of contracts and
refunds.
4)Revised recordkeeping requirements.
5)Increased a bond requirement for talent services from $10,000 to
$50,000.
6)Provided that a person, including an officer, director agent or
employee who violates these provisions is guilty of a misdemeanor
and eliminates a requirement that violation be "willful" to
constitute a misdemeanor.
7)Provided that damages for violations shall be no less than three
times the amount paid by the artist to the talent service.
FISCAL EFFECT : According to the Senate Appropriations Committee,
pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : This bill proposes to revamp and recast the provisions of
law regulating advance-fee talent services, adding several new
definitions and imposing new requirements, responsibilities or
prohibitions on providers of those services. In general, this bill
proposes to distinguish "advance-fee representation services" (which
are prohibited by the bill) from other types of "fee-related talent
services," which are subject to specific regulation as set forth by
the bill.
This measure is co-sponsored by Los Angeles City Attorney Rocky
Delgadillo, the Screen Actors Guild (SAG), and the Better Business
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Bureau - Southland.
According to the author's office:
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. This fraud is
accomplished through deceptive newspaper, Internet and
radio advertisements and by phony 'talent scouts', who
descend upon parents at shopping malls and community
fairs, offer the unsolicited opinion that their child has
star potential, and invite them to an 'audition'- which
turns out to be a 'bait and switch' attempt to sell
photographs, classes and listing services.
While the number of consumers swindled multiplies, talent
scams run rampant because our current laws do not address
the types of fraud they employ and do not provide law
enforcement with the tools to address the problem.
According to statistics from 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, revealing
a massive public interest in businesses that promote
instant stardom. Since the amount of loss to an
individual victim frequently amounts to $1,000 or more,
this is a crime that results in millions of dollars in
loss.
Aside from causing substantial monetary loss - usually to
persons who can least afford it - talent scams cause
severe emotional harm to victims, who go from the initial
feeling of elation after learning they have passed the
'audition,' to extreme disappointment when it is revealed
that the audition and promise of acting jobs was a lie to
sell them photos, classes or websites. Obviously, this
has even a greater impact upon children. Even when a
parent chooses not to pay for the service, the resentment
of their children strains relationships.
Another byproduct of the talent scam is that offenders
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obtain personal information about their clients which can
lead to identity theft.
Plus, there is a genuine concern expressed by parent's
groups that the failure to adequately regulate this
industry allows pedophiles and other unscrupulous persons
a means to gain access to minors.
[This bill] is a comprehensive solution to the problem of
abusive business practices and fraud that permeates the
advance-fee talent industry. It provides law enforcement
with the tools necessary to protect the public and
children in particular.
Existing law makes it a misdemeanor offense, punishable by
jail, for talent representation services (agents, manager,
career counselors) to charge potential actors and models
fees for classes, photos or registration, or to follow
other requirements, including using written contracts
containing a 10-day right of cancellation, maintaining
records and posting a $10,000 bond with the State Labor
Commissioner.
At present, there are no laws which regulate talent
training service or talent listing services, the avenues
which have been exploited by talent scammers.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
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