BILL ANALYSIS



S.B. 526
By: Lucio (Eiland)
05-08-95
Committee Report (Unamended)


BACKGROUND

Restaurants, retail shops, professional offices, and other palaces
open to the public are required by federal law to pay copyright
fees for playing music.  Music licensing organizations such as
Broadcast Music Inc. and the American Society of Composers, Authors
and Publishers act as intermediaries between the artists and those
establishments which broadcast public performances of their
members' works.  Background music, music used in television
broadcasts, karaoke, and music played on the telephone while
callers are on hold fall under the application of this federal
statute.

PURPOSE

S.B. 526 regulates royalty contracts between performing rights
societies and proprietors.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS

     SECTION 1.  SHORT TITLE.  Copyright Royalty Collection
Practices Act.

     SECTION 2.  DEFINITIONS.  Defines "copyright owner,"
"performing rights society," "proprietor," and "royalty" or
"royalties".

     SECTION 3.  LICENSING NEGOTIATIONS.  Prohibits a performing
rights society (society) from offering to enter into or entering
into a contract for royalty payments by a proprietor unless it
provides to the proprietor, in writing, between the time of the
offer and 72 hours prior to execution of the contract, schedules of
royalties; the opportunity to review the most current available
list of members of affiliates represented by the society; and
notice that it will make available at the written request and
expense of the proprietor, the most current available listing of
the copyrighted musical works in the society's repertory.  Requires
the notice to specify the means by which the information can be
secured.

     SECTION 4.  FORM OF CONTRACT.  Requires every royalties
payment contract between a society and a proprietor to be in
writing, be signed by the parties, and include certain provisions.

     SECTION 5.  IMPROPER LICENSING PRACTICES.  Prohibits a
society, agent , or employee thereof from collecting or attempting
to collect any royalty payment from a proprietor licensed by that
society except as provided in a contract executed pursuant to
provisions of this Act.

     SECTION 6.  CIVIL REMEDIES: INJUNCTION.  Authorizes any person
who suffers a violation of this chapter to bring an action to
recover actual damages and attorney's fees and seek an injunction
or any other remedy available at law or in equity.

     SECTION 7.  APPLICATION.  Prohibits this Act from applying to
contracts between societies and broadcasters licensed by the
Federal Communications Commission or to contracts with cable
operators, programmers, or other transmission services.  Provides
that this Act does not apply to any conduct engaged in for the
enforcement of the Section 35.94,  Business and Commerce Code, or
to the copyright owners of motion picture or audiovisual works.

     SECTION 8.  Severability clause.

     SECTION 9.  Establishes the date as September 1, 1995.

     SECTION 10.  Emergency clause.

SUMMARY OF COMMITTEE ACTION

S.B. 526 was considered by the Committee on Business and Industry
in a formal meeting on May 8, 1995.  S. B. 526 was reported
favorably, without amendment with the recommendation that it do
pass and be printed and be sent to the Committee on Local and
Consent Calendars, by a record vote of 8 (eight) ayes, 0 (zero)
nays, 0 (zero) present-not-voting, 1 (one) absent.