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A BILL TO BE ENTITLED
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AN ACT
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relating to the exhibition of first-run movies in movie theaters. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 2, Business & Commerce Code, is amended by |
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adding Chapter 18 to read as follows: |
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CHAPTER 18. BUSINESS PRACTICES REGARDING EXHIBITION OF MOTION |
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PICTURES |
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Sec. 18.001. DEFINITIONS. In this chapter: |
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(1) "Distributor" means a person who is in the |
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business of renting, selling, or licensing motion pictures to |
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exhibitors. |
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(2) "Exhibitor" means a person who is in the business |
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of operating one or more movie theaters in this state. |
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(3) "Feature motion picture" means a motion picture |
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that exceeds 60 minutes in duration. |
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(4) "First-run movie" means a feature motion picture |
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that is released to exhibitors for an initial showing to the public. |
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(5) "Independent exhibitor" means an exhibitor that |
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operates only one movie theater or that operates more than one movie |
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theater each of which is located within the market area of a single |
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one of those theaters. |
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(6) "Motion picture license agreement" means a |
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contract or other agreement between a distributor and an exhibitor |
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relating to the exhibition of a motion picture by the exhibitor. |
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(7) "Market area," with respect to a movie theater, |
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means the area consisting of: |
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(A) the territory of the county and any |
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municipality in which the movie theater is located; and |
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(B) any other territory in this state located |
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within a radius of 10 miles of the theater. |
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Sec. 18.002. CERTAIN CLEARANCE PROVISIONS IN AGREEMENTS |
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PROHIBITED. (a) A motion picture license agreement may not contain |
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a provision that precludes, authorizes a party to the agreement to |
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preclude, or has the effect of precluding an independent exhibitor |
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that operates a movie theater located within the market area of a |
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movie theater operated by the exhibitor who is a party to the |
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agreement from showing a first-run movie at the theater operated by |
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the independent exhibitor during the same period the movie is shown |
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at the theater operated by the exhibitor. |
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(b) A provision that violates Subsection (a) is void. |
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SECTION 2. Chapter 18, Business & Commerce Code, as added by |
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this Act, applies only to an agreement entered into or renewed on or |
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after the effective date of this Act. An agreement entered into or |
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renewed before the effective date of this Act is governed by the law |
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in effect on the date the agreement was entered into or renewed, and |
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the former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |