1-1  By:  Lucio                                             S.B. No. 526
    1-2        (In the Senate - Filed February 10, 1995; February 14, 1995,
    1-3  read first time and referred to Committee on Economic Development;
    1-4  April 12, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 10, Nays 0; April 12, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 526                    By:  Lucio
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to certain business practices used in the collection of
   1-11  copyright royalties; providing penalties.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  SHORT TITLE.  This Act may be cited as the
   1-14  Copyright Royalty Collection Practices Act.
   1-15        SECTION 2.  DEFINITIONS.  In this Act:
   1-16              (1)  "Copyright owner" means the owner of a copyright
   1-17  of a nondramatic musical work recognized and enforceable under the
   1-18  copyright laws of the United States pursuant to Title 17 of the
   1-19  United States Code, Pub. L. 94-554 (17 U.S.C. Section 101 et seq.).
   1-20              (2)  "Performing rights society" means an association
   1-21  or corporation that licenses the public performance of nondramatic
   1-22  musical works on behalf of copyright owners, such as the American
   1-23  Society of Composers, Authors and Publishers (ASCAP); Broadcast
   1-24  Music, Inc. (BMI); and SESAC, Inc. (SESAC).
   1-25              (3)  "Proprietor" means the owner or operator of a
   1-26  retail establishment, restaurant, inn, bar, tavern, or other
   1-27  similar place of business located in this state in which the public
   1-28  may assemble and in which nondramatic musical works may be
   1-29  performed, broadcast, or otherwise transmitted.
   1-30              (4)  "Royalty" or "royalties" means the fees payable to
   1-31  a performing rights society for public performance rights.
   1-32        SECTION 3.  LICENSING NEGOTIATIONS.  No performing rights
   1-33  society shall offer to enter into or enter into a contract for the
   1-34  payment of royalties by a proprietor unless, at the time of the
   1-35  offer, or any time thereafter, but no later than 72 hours prior to
   1-36  the execution of that contract, it provides to the proprietor, in
   1-37  writing, the following:
   1-38              (1)  a schedule of the rates and terms of royalties
   1-39  under the contract;
   1-40              (2)  at the request of the proprietor, the opportunity
   1-41  to review the most current available list of the members or
   1-42  affiliates represented by the society;
   1-43              (3)  notice that it will make available, on written
   1-44  request of any proprietor, at the sole expense of the proprietor,
   1-45  the most current available listing of the copyrighted musical works
   1-46  in the performing rights society's repertory, provided that the
   1-47  notice specifies the means by which such information can be
   1-48  secured.
   1-49        SECTION 4.  FORM OF CONTRACT.  Every contract between a
   1-50  performing rights society and proprietor for the payment of
   1-51  royalties executed in this state shall:
   1-52              (1)  be in writing;
   1-53              (2)  be signed by the parties;
   1-54              (3)  include at least the following information:
   1-55                    (A)  the proprietor's name and business address
   1-56  and the name and location of each place of business to which the
   1-57  contract applies;
   1-58                    (B)  the name and address of the performing
   1-59  rights society;
   1-60                    (C)  the duration of the contract; and
   1-61                    (D)  the schedule of rates and terms of the
   1-62  royalties to be collected under the contract, including any sliding
   1-63  scale or schedule for any increase or decrease of those rates for
   1-64  the duration of that contract.
   1-65        SECTION 5.  IMPROPER LICENSING PRACTICES.  No performing
   1-66  rights society, or any agent or employee thereof shall collect or
   1-67  attempt to collect from a proprietor licensed by that performing
   1-68  rights society a royalty payment except as provided in a contract
    2-1  executed pursuant to the provisions of this Act.
    2-2        SECTION 6.  CIVIL REMEDIES:  INJUNCTION.  Any person who
    2-3  suffers a violation of this Act may bring an action to recover
    2-4  actual damages and reasonable attorney's fees and seek an
    2-5  injunction or any other remedy available at law or in equity.
    2-6        SECTION 7.  APPLICATION.  This Act shall not apply to
    2-7  contracts between performing rights societies and broadcasters
    2-8  licensed by the Federal Communications Commission, or to contracts
    2-9  with cable operators, programmers, or other transmission services.
   2-10  This Act does not apply to any conduct engaged in for the
   2-11  enforcement of Section 35.94, Business & Commerce Code, or to the
   2-12  copyright owners of motion picture or audiovisual works.
   2-13        SECTION 8.  SEVERABILITY.  If any provision of this Act or
   2-14  its application to any person or circumstance is held invalid, the
   2-15  invalidity does not affect other provisions or applications of this
   2-16  Act that can be given effect without the invalid provision or
   2-17  application, and to this end the provisions of this Act are
   2-18  declared to be severable.
   2-19        SECTION 9.  EFFECTIVE DATE.  This Act takes effect September
   2-20  1, 1995.
   2-21        SECTION 10.  EMERGENCY.  The importance of this legislation
   2-22  and the crowded condition of the calendars in both houses create an
   2-23  emergency and an imperative public necessity that the
   2-24  constitutional rule requiring bills to be read on three several
   2-25  days in each house be suspended, and this rule is hereby suspended.
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