By Thompson                                            H.B. No. 539
         77R248 CLG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to arts, entertainment, advertisement, and sports
 1-3     contracts entered into by minors.
 1-5           SECTION 1.  Part 5, Chapter XIII, Texas Probate Code, is
 1-6     amended by adding Subpart H to read as follows:
 1-8                          ADVERTISEMENT, AND SPORTS
 1-9           Sec. 901.  DEFINITIONS.  In this subpart:
1-10                 (1)  "Advertise" means to solicit or induce, through
1-11     print or electronic media, including radio, television, computer,
1-12     or direct mail, to purchase consumer goods or services.
1-13                 (2)  "Advertisement contract" means a contract under
1-14     which a person is employed or agrees to advertise consumer goods or
1-15     services.
1-16                 (3)  "Artist" means:
1-17                       (A)  an actor who performs in a motion picture,
1-18     theatrical, radio, television, or other entertainment production;
1-19                       (B)  a musician or musical director;
1-20                       (C)  a director or producer of a motion picture,
1-21     theatrical, radio, television, or other entertainment production;
1-22                       (D)  a writer;
1-23                       (E)  a cinematographer;
1-24                       (F)  a composer, lyricist, or arranger of musical
 2-1     compositions;
 2-2                       (G)  a dancer or choreographer of musical
 2-3     productions;
 2-4                       (H)  a model; or
 2-5                       (I)  any other individual who renders analogous
 2-6     professional services in a motion picture, theatrical, radio,
 2-7     television, or other entertainment production.
 2-8                 (4)  "Arts and entertainment contract" means a contract
 2-9     under which:
2-10                       (A)  an artist is employed or agrees to render
2-11     services in a motion picture, theatrical, radio, television, or
2-12     other entertainment production; or
2-13                       (B)  a person agrees to purchase, secure, sell,
2-14     lease, license, or otherwise dispose of literary, musical, or
2-15     dramatic tangible or intangible property or any rights in that
2-16     property for use in the field of  entertainment, including a motion
2-17     picture, television, the production of phonograph records, or
2-18     theater.
2-19                 (5)  "Consumer goods" means goods that are used or
2-20     bought for use primarily for personal, family, or household
2-21     purposes.
2-22                 (6)  "Sports contract" means a contract under which an
2-23     athlete is employed or agrees to participate, compete, or engage in
2-24     a sports or athletic activity at a professional or amateur sports
2-25     event or athletic event.
2-26           Sec. 902.  CONSTRUCTION. This subpart may not be construed to
2-27     authorize the making of a contract that binds a minor beyond the
 3-1     minor's 18th birthday or the date on which the minor's disabilities
 3-2     of minority are removed for general purposes, whichever is earlier.
 3-4     VOIDABLE.  (a)  A court, on petition of a party to the contract,
 3-5     may enter an order approving for purposes of this subpart an arts
 3-6     and entertainment contract, advertisement contract, or sports
 3-7     contract that is entered into by a minor.  The court may approve
 3-8     the contract only after the party requesting the petition provides
 3-9     to the other party to the contract notice of the petition and an
3-10     opportunity to request a hearing in the manner provided by the
3-11     court.
3-12           (b)  A proceeding under this section may be brought in the
3-13     county in which:
3-14                 (1)  the minor resides;
3-15                 (2)  the minor is employed; or
3-16                 (3)  a party to the contract has its principal office
3-17     in this state for the transaction of business if the minor does not
3-18     reside and is not employed in this state.
3-19           (c)  The approval of a contract under this section extends to
3-20     the contract as a whole and any of the terms and provisions of the
3-21     contract, including any optional or conditional provision in the
3-22     contract relating to the extension or termination of its term.
3-23           (d)  A court may withhold approval of a contract under which
3-24     part of the minor's net earnings under the contract will be set
3-25     aside as provided by Section 904 of this code until the guardian of
3-26     the minor executes and files with the court written consent to the
3-27     making of the order.
 4-1           (e)  An otherwise valid contract approved under this section
 4-2     may not be voidable solely on the ground that it was entered into
 4-3     by a person during the age of minority.
 4-4           (f)  Each parent of the minor, if a managing conservator or
 4-5     guardian has not been appointed for the minor, or the
 4-6     court-appointed managing conservator or guardian of the minor, is a
 4-7     necessary party to a proceeding brought under this section.
 4-9     (a)  In this section, "net earnings" means the total amount to be
4-10     received for the services of the minor under the contract less:
4-11                 (1)  the sum required by law to be paid as taxes to any
4-12     government or governmental agency;
4-13                 (2)  a reasonable sum to be expended for the support,
4-14     care, maintenance, education, and training of the minor;
4-15                 (3)  fees and expenses paid in connection with
4-16     procuring the contract or maintaining employment of the minor; and
4-17                 (4)  attorney's fees  for services rendered in
4-18     connection with the contract or any other business of the minor.
4-19           (b)  Notwithstanding any other law, the court may require in
4-20     an order approving a contract under Section 903 of this code that a
4-21     portion of the net earnings of the minor under the contract be set
4-22     aside and preserved for the benefit of the minor in a trust created
4-23     under Section 867 of this code or a similar trust created under the
4-24     laws of another state.  The amount to be set aside under this
4-25     subsection must be a reasonable amount as determined by the court. 
4-26           Sec. 905.  GUARDIAN AD LITEM.  The court may appoint a
4-27     guardian ad litem for a minor who has entered into an arts and
 5-1     entertainment contract, advertisement contract, or sports contract
 5-2     if the court finds that appointment of the ad litem would be in the
 5-3     best interest of the minor.
 5-4           SECTION 2.  This Act takes effect September 1, 2001.