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.
1-11           SECTION 1.  Part 5, Chapter XIII, Texas Probate Code, is
1-12     amended by adding Subpart H to read as follows:
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.
1-60     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.
2-19     (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                                  * * * * *