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.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Part 5, Chapter XIII, Texas Probate Code, is
1-6 amended by adding Subpart H to read as follows:
1-7 SUBPART H. CONTRACTS IN ARTS, ENTERTAINMENT,
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.
3-3 Sec. 903. APPROVAL OF CERTAIN CONTRACTS OF MINORS; NOT
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.
4-8 Sec. 904. NET EARNINGS OF MINOR; SET ASIDE AND PRESERVATION.
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.