BILL ANALYSIS


                                                     C.S.S.B. 526
                                                        By: Lucio
                                             Economic Development
                                                         04-12-95
                                   Committee Report (Substituted)
BACKGROUND

Restaurants, retail shops, professional offices, and other places
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

As proposed, C.S.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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

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 or 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. Effective date: September 1, 1995.

SECTION 10.    Emergency clause.