74R10074 T By Eiland H.B. No. 1530 Substitute the following for H.B. No. 1530: By Corte C.S.H.B. No. 1530 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to certain business practices used in the collection of 1-3 copyright royalties, providing penalties. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. SHORT TITLE. This Act may be cited as the 1-6 Copyright Royalty Collection Practices Act. 1-7 SECTION 2. DEFINITIONS. As used in this act: 1-8 (a) "Copyright owner" means the owner of a copyright of a 1-9 nondramatic musical work recognized and enforceable under the 1-10 copyright laws of the United States pursuant to Title 17 of the 1-11 United States Code, Pub. L. 94-554 (17 U.S.C. 101 et seq.). 1-12 (b) "Performing rights society" means an association or 1-13 corporation that licenses the public performance of nondramatic 1-14 musical works on behalf of copyright owners, such as the American 1-15 Society of Composers, Authors and Publishers (ASCAP), Broadcast 1-16 Music, Inc. (BMI), and SESAC, Inc. (SESAC). 1-17 (c) "Proprietor" means the owner or operator of a retail 1-18 establishment, restaurant, inn, bar, tavern or other similar place 1-19 of business located in this State in which the public may assemble 1-20 and in which nondramatic musical works may be performed, broadcast, 1-21 or otherwise transmitted. 1-22 (d) "Royalty" or "royalties" means the fees payable to a 1-23 performing rights society for public performance rights. 2-1 SECTION 3. LICENSING NEGOTIATIONS. No performing rights 2-2 society shall offer to enter into, or enter into, a contract for 2-3 the payment of royalties by a proprietor unless, at the time of the 2-4 offer, or any time thereafter, but no later than seventy-two hours 2-5 prior to the execution of that contract, it provides to the 2-6 proprietor, in writing, the following: 2-7 (a) a schedule of the rates and terms of royalties under the 2-8 contract; 2-9 (b) upon the request of the proprietor, the opportunity to 2-10 review the most current available list of the members or affiliates 2-11 represented by the society; 2-12 (c) notice that it will make available, upon written request 2-13 of any proprietor, at the sole expense of the proprietor, the most 2-14 current available listing of the copyrighted musical works in such 2-15 performing rights society's repertory, provided that such notice 2-16 shall specify the means by which such information can be secured. 2-17 SECTION 4. FORM OF CONTRACT. Every contract between a 2-18 performing rights society and proprietor for the payment of 2-19 royalties executed in this State shall: 2-20 (a) be in writing; 2-21 (b) be signed by the parties; 2-22 (c) include at least the following information: 2-23 (1) the proprietor's name and business address and the 2-24 name and location of each place of business to which the contract 2-25 applies; 3-1 (2) the name and address of the performing rights 3-2 society; 3-3 (3) the duration of the contract; and 3-4 (4) the schedule of rates and terms of the royalties 3-5 to be collected under the contract, including any sliding scale or 3-6 schedule for any increase or decrease of those rates for the 3-7 duration of that contract. 3-8 SECTION 5. IMPROPER LICENSING PRACTICES. No performing 3-9 rights society, or any agent or employee thereof shall: 3-10 (a) collect, or attempt to collect, from a proprietor 3-11 licensed by that performing rights society a royalty payment except 3-12 as provided in a contract executed pursuant to the provisions of 3-13 this act. 3-14 SECTION 6. CIVIL REMEDIES: INJUNCTION. Any person who 3-15 suffers a violation of this chapter may bring an action to recover 3-16 actual damages and reasonable attorney's fees and seek an 3-17 injunction or any other remedy available at law or in equity. 3-18 SECTION 7. APPLICATION. This act shall not apply to 3-19 contracts between performing rights societies and broadcasters 3-20 licensed by the Federal Communications Commission, or to contracts 3-21 with cable operators, programmers or other transmission services. 3-22 This act does not apply to any conduct engaged in for the 3-23 enforcement of Texas Business and Commerce Code Sec. 35.94 or to 3-24 the copyright owners of motion picture or audiovisual works. 3-25 SECTION 8. SEVERABILITY. If any provision of this Act or 4-1 its application to any person or circumstance is held invalid, the 4-2 invalidity does not affect other provisions or applications of this 4-3 Act that can be given effect without the invalid provision or 4-4 application, and to this end the provisions of this act are 4-5 declared to be severable. 4-6 SECTION 9. This Act takes effect September 1, 1995. 4-7 SECTION 10. The importance of this legislation and the 4-8 crowded condition of the calendars in both houses create an 4-9 emergency and an imperative public necessity that the 4-10 constitutional rule requiring bills to be read on three several 4-11 days in each house be suspended, and this rule is hereby suspended.