1-1 By: Thompson (Senate Sponsor - West) H.B. No. 539 1-2 (In the Senate - Received from the House May 9, 2001; 1-3 May 10, 2001, read first time and referred to Committee on 1-4 Jurisprudence; May 11, 2001, reported favorably by the following 1-5 vote: Yeas 5, Nays 0; May 11, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to arts, entertainment, advertisement, and sports 1-9 contracts entered into by minors. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Part 5, Chapter XIII, Texas Probate Code, is 1-12 amended by adding Subpart H to read as follows: 1-13 SUBPART H. CONTRACTS IN ARTS, ENTERTAINMENT, 1-14 ADVERTISEMENT, AND SPORTS 1-15 Sec. 901. DEFINITIONS. In this subpart: 1-16 (1) "Advertise" means to solicit or induce, through 1-17 print or electronic media, including radio, television, computer, 1-18 or direct mail, to purchase consumer goods or services. 1-19 (2) "Advertisement contract" means a contract under 1-20 which a person is employed or agrees to advertise consumer goods or 1-21 services. 1-22 (3) "Artist" means: 1-23 (A) an actor who performs in a motion picture, 1-24 theatrical, radio, television, or other entertainment production; 1-25 (B) a musician or musical director; 1-26 (C) a director or producer of a motion picture, 1-27 theatrical, radio, television, or other entertainment production; 1-28 (D) a writer; 1-29 (E) a cinematographer; 1-30 (F) a composer, lyricist, or arranger of musical 1-31 compositions; 1-32 (G) a dancer or choreographer of musical 1-33 productions; 1-34 (H) a model; or 1-35 (I) any other individual who renders analogous 1-36 professional services in a motion picture, theatrical, radio, 1-37 television, or other entertainment production. 1-38 (4) "Arts and entertainment contract" means a contract 1-39 under which: 1-40 (A) an artist is employed or agrees to render 1-41 services in a motion picture, theatrical, radio, television, or 1-42 other entertainment production; or 1-43 (B) a person agrees to purchase, secure, sell, 1-44 lease, license, or otherwise dispose of literary, musical, or 1-45 dramatic tangible or intangible property or any rights in that 1-46 property for use in the field of entertainment, including a motion 1-47 picture, television, the production of phonograph records, or 1-48 theater. 1-49 (5) "Consumer goods" means goods that are used or 1-50 bought for use primarily for personal, family, or household 1-51 purposes. 1-52 (6) "Sports contract" means a contract under which an 1-53 athlete is employed or agrees to participate, compete, or engage in 1-54 a sports or athletic activity at a professional or amateur sports 1-55 event or athletic event. 1-56 Sec. 902. CONSTRUCTION. This subpart may not be construed to 1-57 authorize the making of a contract that binds a minor beyond the 1-58 seventh anniversary of the date of the contract. 1-59 Sec. 903. APPROVAL OF CERTAIN CONTRACTS OF MINORS; NOT 1-60 VOIDABLE. (a) A court, on petition of the guardian of the estate 1-61 of the minor, may enter an order approving for purposes of this 1-62 subpart an arts and entertainment contract, advertisement contract, 1-63 or sports contract that is entered into by a minor. The court may 1-64 approve the contract only after the guardian of the minor's estate 2-1 provides to the other party to the contract notice of the petition 2-2 and an opportunity to request a hearing in the manner provided by 2-3 the court. 2-4 (b) The approval of a contract under this section extends to 2-5 the contract as a whole and any of the terms and provisions of the 2-6 contract, including any optional or conditional provision in the 2-7 contract relating to the extension or termination of its term. 2-8 (c) A court may withhold approval of a contract under which 2-9 part of the minor's net earnings under the contract will be set 2-10 aside as provided by Section 904 of this code until the guardian of 2-11 the minor's estate executes and files with the court written 2-12 consent to the making of the order. 2-13 (d) An otherwise valid contract approved under this section 2-14 may not be voidable solely on the ground that it was entered into 2-15 by a person during the age of minority. 2-16 (e) Each parent of the minor is a necessary party to a 2-17 proceeding brought under this section. 2-18 Sec. 904. NET EARNINGS OF MINOR; SET ASIDE AND PRESERVATION. 2-19 (a) In this section, "net earnings" means the total amount to be 2-20 received for the services of the minor under the contract less: 2-21 (1) the sum required by law to be paid as taxes to any 2-22 government or governmental agency; 2-23 (2) a reasonable sum to be expended for the support, 2-24 care, maintenance, education, and training of the minor; 2-25 (3) fees and expenses paid in connection with 2-26 procuring the contract or maintaining employment of the minor; and 2-27 (4) attorney's fees for services rendered in 2-28 connection with the contract or any other business of the minor. 2-29 (b) Notwithstanding any other law, the court may require in 2-30 an order approving a contract under Section 903 of this code that a 2-31 portion of the net earnings of the minor under the contract be set 2-32 aside and preserved for the benefit of the minor in a trust created 2-33 under Section 867 of this code or a similar trust created under the 2-34 laws of another state. The amount to be set aside under this 2-35 subsection must be a reasonable amount as determined by the court. 2-36 Sec. 905. GUARDIAN AD LITEM. The court may appoint a 2-37 guardian ad litem for a minor who has entered into an arts and 2-38 entertainment contract, advertisement contract, or sports contract 2-39 if the court finds that appointment of the ad litem would be in the 2-40 best interest of the minor. 2-41 SECTION 2. This Act takes effect September 1, 2001. 2-42 * * * * *