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A11270 Summary:

BILL NOA11270
 
SAME ASNo Same As
 
SPONSORValdez
 
COSPNSR
 
MLTSPNSR
 
Add Title L-1 Art 36 §§36.01 - 36.25, Arts & Cul L
 
Enacts the "advancing rights for talent, independence, services and tenure (ARTIST) act" in relation to personal services contracts between artists and companies.
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A11270 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          11270
 
                   IN ASSEMBLY
 
                                       May 4, 2026
                                       ___________
 
        Introduced by M. of A. VALDEZ -- read once and referred to the Committee
          on Tourism, Parks, Arts and Sports Development
 
        AN ACT to amend the arts and cultural affairs law, in relation to enact-
          ing  the  "advancing  rights  for  talent,  independence, services and
          tenure (ARTIST) act"
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "advancing rights for  talent,  independence,  services  and  tenure
     3  (ARTIST) act".
     4    § 2. Legislative findings. The legislature finds and declares that:
     5    (a)  New  York's music industry contributes nearly twenty-five billion
     6  dollars annually to the state's economy, supports tens of  thousands  of
     7  jobs  across  recording, publishing, live performance, and distribution,
     8  and ranks second among all states in music industry gross domestic prod-
     9  uct behind only California. New York is home  to  one  of  the  nation's
    10  largest concentrations of recording artists, songwriters, composers, and
    11  music producers. The companies that acquire, distribute, and commercial-
    12  ly  exploit  their  recordings  and  compositions depend entirely on the
    13  creative labor of those individuals  for  their  commercial  value.  Yet
    14  standard   recording  and  publishing  contracts  function  to  transfer
    15  substantially all long-term economic value to  companies  while  leaving
    16  artists to bear the full risk of commercial failure.
    17    (b)  The  state's arts and cultural affairs law already recognizes the
    18  need to protect artists from long-term exploitation, prohibiting indefi-
    19  nite personal services contracts for performers under the age  of  eigh-
    20  teen.    This  act extends those protections to adult artists, closing a
    21  gap in the existing law that has  left  New  York's  creative  workforce
    22  vulnerable to indefinite and one-sided contractual arrangements.
    23    (c)  The  mechanisms  through  which  this exploitation occurs include
    24  unilateral option periods that restrict  the  artist  at  the  company's
    25  discretion;  minimum  commitment  structures that condition the artist's
    26  right to leave on delivery requirements the company controls; and exclu-
    27  sivity provisions  that  prevent  artists  from  developing  alternative
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15397-03-6

        A. 11270                            2
 
     1  professional  relationships.  These  arrangements are not the product of
     2  arm's-length bargaining. A small number of entities control the distrib-
     3  ution infrastructure through which creative work  reaches  audiences  at
     4  scale.
     5    (d)  The legislature therefore finds it necessary to establish reason-
     6  able limits on the length of creative contracts and to  provide  artists
     7  with  fairer  terms  regarding compensation and ownership of their work.
     8  The purpose of this act is to modernize New  York's  arts  and  cultural
     9  affairs law, promote career mobility and strengthen the stability of the
    10  state's creative economy.
    11    §  3.  The  arts  and  cultural affairs law is amended by adding a new
    12  title L-1 to read as follows:
    13                                   TITLE L-1
    14       ADVANCING RIGHTS FOR TALENT, INDEPENDENCE, SERVICES AND TENURE
    15                                (ARTIST) ACT
    16                                 ARTICLE 36
    17       ADVANCING RIGHTS FOR TALENT, INDEPENDENCE, SERVICES AND TENURE
    18                                (ARTIST) ACT
    19  Section 36.01. Definitions.
    20          36.03. Exclusions.
    21          36.05. Anti-circumvention.
    22          36.07. Maximum duration.
    23          36.09. Post-termination rights.
    24          36.11. Change in ownership or leadership.
    25          36.13. Effect of noncompliant provisions.
    26          36.15. Administrative enforcement.
    27          36.17. Private right of action.
    28          36.19. Non-waiver.
    29          36.21. Relationship to federal law.
    30          36.23. Transitional provisions.
    31          36.25. Severability.
    32    § 36.01. Definitions. As used in this article:
    33    1. "Artist" means any natural person who renders personal services  as
    34  a  recording  artist, vocalist, musician, songwriter, composer, or music
    35  producer in connection with the creation, performance, or  recording  of
    36  musical  works or sound recordings, including original music created for
    37  distribution through streaming  services,  social  media  platforms,  or
    38  other  digital  channels,  and whose services are rendered primarily for
    39  the purpose of producing or contributing to such works.
    40    2. (a) "Personal services contract" means any agreement,  or  combina-
    41  tion of related agreements, under which an artist is obligated to render
    42  creative  or  performing services, or to exclusively make available such
    43  artist's creative or performing services, to or for the benefit  of  any
    44  other party, where:
    45    (i)  such services are non-delegable and are sought by the other party
    46  primarily because of the identity, reputation,  or  unique  creative  or
    47  performing attributes of such artist;
    48    (ii)  such  agreement  contains  any  provision  that  restricts  such
    49  artist's ability to render creative or performing services for any other
    50  party during the term; and
    51    (iii) the duration of such artist's obligations, including all unilat-
    52  eral options to extend, renew, or continue the agreement exercisable  by
    53  any  party  other  than  such artist, all provisions conditioning termi-
    54  nation on the delivery or completion of a defined body of work or number
    55  of recordings, and all provisions restricting such artist's  ability  to

        A. 11270                            3
 
     1  render  services  for any other party following expiration of the stated
     2  term, exceeds or may exceed one year.
     3    (b)  Two  or  more  agreements between the same parties, or between an
     4  artist and parties acting in  concert,  that  together  impose  on  such
     5  artist  obligations  or restrictions equivalent to those described above
     6  shall be treated as a single personal services  contract.  An  agreement
     7  shall not fail to constitute a personal services contract solely because
     8  the  artist  contracts through a corporation, limited liability company,
     9  or other entity, provided that such artist is the sole or primary  bene-
    10  ficial owner of such entity and such entity was formed primarily for the
    11  purpose of rendering such artist's services.
    12    3.  "Company"  means  any  person other than a natural person, and any
    13  natural person acting in  a  commercial  capacity  in  the  business  of
    14  acquiring,  producing,  distributing,  licensing, managing, or otherwise
    15  commercially  exploiting  recordings,  compositions,  or  other  musical
    16  works,  that  is  a  party  to or the beneficiary of a personal services
    17  contract with an artist, and includes:
    18    (a) any entity that directly or indirectly controls, is controlled by,
    19  or is under common control with the contracting party,  where  "control"
    20  means  the  power to direct or cause the direction of the management and
    21  policies of an entity, whether through voting securities,  contract,  or
    22  the  power  to  appoint  a  majority of the governing body. All personal
    23  services contracts between an artist and affiliated  entities  shall  be
    24  treated as a single personal services contract with a single company for
    25  purposes of calculating duration under this article;
    26    (b)  any  entity  to  which a company assigns, transfers, or otherwise
    27  conveys its rights or obligations under a  personal  services  contract,
    28  whether  voluntarily  or  by  operation of law. No such conveyance shall
    29  extend the permissible duration of the artist's obligations  beyond  the
    30  limits established by this article;
    31    (c)  any entity or natural person that, although not a formal party to
    32  the personal services contract, directly receives, exploits, or  commer-
    33  cially benefits from the artist's services, where the formal contracting
    34  party  is  acting  primarily  as an agent, intermediary, or pass-through
    35  vehicle for the benefit of such entity or person. In determining whether
    36  an entity is a beneficial  counterparty,  a  court  shall  consider  the
    37  degree  to  which the entity controls the material terms of the artist's
    38  engagement; whether the  entity  has  practical  authority  to  approve,
    39  reject,  or  withhold release of the artist's work product; the economic
    40  relationship between the formal contracting party and  the  entity;  and
    41  any course of dealing between the parties; and
    42    (d)  any entity that enters into a joint venture, co-production agree-
    43  ment, co-publishing arrangement,  or  similar  collaborative  commercial
    44  structure  with  the  contracting  party, to the extent that such entity
    45  acquires rights in or  derives  commercial  benefit  from  the  artist's
    46  services rendered under the personal services contract.
    47    4.  "Commercial  neglect" means the occurrence of any of the following
    48  for a continuous period of twelve consecutive  months  with  respect  to
    49  recordings  or  compositions  created  by  the artist under the personal
    50  services contract, other than by reason of a legal dispute  between  the
    51  artist  and  the  company  directly  concerning the affected works, or a
    52  force majeure event that generally prevented commercial  music  distrib-
    53  ution during the relevant period:
    54    (a)  any  recording  by  the  artist  that  has  been delivered to and
    55  accepted by the company as satisfying the applicable contractual  deliv-
    56  ery standard remains commercially unreleased; or

        A. 11270                            4
 
     1    (b)  the  company's  total  expenditure  on  promotion, marketing, and
     2  distribution of the artist's recordings during the  twelve-month  period
     3  falls  below fifty percent of the average annual promotional expenditure
     4  made by the company on behalf of the same artist during  the  two  years
     5  immediately  preceding  the  period  in  question,  as documented in the
     6  company's financial records. Where the personal  services  contract  has
     7  been  in  effect for less than two years at the time the relevant period
     8  begins, the baseline shall be the average annual promotional expenditure
     9  during the entire period the contract has been in effect. The burden  of
    10  producing  evidence of promotional expenditure levels for both the rele-
    11  vant period and the baseline period shall rest with the company.
    12    § 36.03. Exclusions. The provisions of this article  shall  not  apply
    13  to:
    14    1.  Any  agreement  that  creates  an  at-will employment relationship
    15  terminable  by  either  party  without  cause  upon  reasonable  notice,
    16  provided that no provision of the agreement restricts the artist's abil-
    17  ity  to  render  creative  or  performing  services  for any other party
    18  following termination;
    19    2. Any term or condition of  employment  specifically  governed  by  a
    20  collective  bargaining  agreement  between  an  employer and a bona fide
    21  labor organization representing artists.  Nothing  in  this  subdivision
    22  shall  preclude  an  individual  artist from invoking the protections of
    23  this article with respect to any  term  or  condition  not  specifically
    24  addressed  by  the applicable collective bargaining agreement. Where the
    25  applicability of a collective bargaining agreement to a  specific  claim
    26  under this article is genuinely disputed, proceedings under this article
    27  shall be stayed only pending resolution of that question, and only where
    28  the  company demonstrates that resolution is necessary to adjudicate the
    29  claim;
    30    3. Any agreement between an artist and  a  licensed  talent  agent  or
    31  artist manager, provided that:
    32    (a)  such  agreement does not require the artist to render creative or
    33  performing services directly to or for  the  benefit  of  the  agent  or
    34  manager;
    35    (b)  the agent or manager's compensation is limited to a percentage of
    36  the artist's earnings from third-party engagements; and
    37    (c) such agreement does not assign, transfer, or  exclusively  license
    38  to the agent or manager any intellectual property rights in the artist's
    39  creative works, whether existing or to be created;
    40    4.  An agreement solely between an artist and such artist's own wholly
    41  owned personal services  entity,  entered  into  for  tax  or  liability
    42  purposes,  which  shall  not constitute a personal services contract for
    43  purposes of this article. An  agreement  between  an  artist's  personal
    44  services entity and a third-party company shall not be excluded from the
    45  protections of this article solely by reason of the artist's use of such
    46  an entity;
    47    5.  Any  agreement  between  an  artist  and  a unit of state or local
    48  government, public benefit corporation, or public  educational  institu-
    49  tion  for  the  performance of a specific public engagement or series of
    50  engagements,  provided  that  the  agreement  contains  no   exclusivity
    51  provision  restricting  the  artist's ability to render services for any
    52  other party; or
    53    6. Any agreement between two or more artists for the purpose of creat-
    54  ing, performing, or producing a collaborative work,  including  partner-
    55  ship  agreements,  band  agreements, and co-writing agreements, provided

        A. 11270                            5
 
     1  that no party is primarily in the business of acquiring, exploiting,  or
     2  commercially distributing the creative output of others.
     3    §  36.05.  Anti-circumvention.  No arrangement, structure or series of
     4  transactions shall be given effect for purposes of this article  if  the
     5  primary purpose of such arrangement, structure or series of transactions
     6  is  to  evade  the  protections of this article, including the disaggre-
     7  gation of a single commercial relationship into multiple contracts  with
     8  multiple  formally  distinct  entities  to  avoid the duration limits or
     9  reversion rights established in this article.
    10    § 36.07. Maximum duration. 1. No company shall enforce, and  no  court
    11  shall  give  effect  to,  any  obligation  of an artist under a personal
    12  services contract, or  any  combination  of  related  personal  services
    13  contracts treated as a single agreement under this article, for a period
    14  exceeding  seven  years from the date on which such artist first renders
    15  services.
    16    2. For purposes of calculating such seven-year period:
    17    (a) the  period  commences  on  the  date  the  artist  first  renders
    18  services, regardless of the date of execution;
    19    (b)   periods  during  which  the  artist's  obligations  are  tolled,
    20  suspended, or extended by any force majeure clause,  suspension  clause,
    21  cure  period,  or similar provision shall be included in the calculation
    22  and shall not extend the permissible duration beyond seven years, except
    23  where such tolling or suspension is at the election of the artist;
    24    (c) all unilateral option periods exercisable by any party other  than
    25  the  artist,  and  all  periods  during  which  the artist's obligations
    26  continue by virtue of a minimum commitment or delivery requirement  that
    27  has not been satisfied, shall be included, provided that where a company
    28  withholds  approval  of  delivery  in  bad faith or without commercially
    29  reasonable justification, the period of  such  withholding  shall  count
    30  against  the  seven-year limit regardless of whether the minimum commit-
    31  ment has been formally satisfied. Once  an  artist  establishes  that  a
    32  delivered recording satisfies the applicable contractual delivery stand-
    33  ard,  the  burden shall shift to the company to demonstrate by a prepon-
    34  derance of the evidence that any withholding of  approval  was  made  in
    35  good  faith and for commercially reasonable reasons documented contempo-
    36  raneously with the rejection; and
    37    (d) where the contract conditions the artist's right to  terminate  on
    38  completion  of  a  defined body of work, the seven-year period runs from
    39  the date services first commenced, and the artist's  obligations  termi-
    40  nate  upon the earlier of fulfillment of the minimum commitment or expi-
    41  ration of the seven-year period.
    42    3. Nothing in this section requires a company to exercise  any  option
    43  or  extend  any  agreement, or entitles an artist to compensation beyond
    44  that provided in the contract for services actually rendered.
    45    § 36.09. Post-termination rights. 1. Notice of assignment.  A  company
    46  shall  provide an artist with written notice of any assignment or trans-
    47  fer of such company's rights in works created under a personal  services
    48  contract  no  later  than  thirty  days after the event. Such obligation
    49  survives termination of the personal services contract for  as  long  as
    50  such  company  or  any successor holds rights in such artist's work, and
    51  applies equally to any successor or assign of such company.
    52    2. Reversion upon commercial neglect. Upon commercial neglect  of  any
    53  creative  work created under a personal services contract, an artist may
    54  notify a company in writing demanding  that  such  company  either:  (a)
    55  recommence active commercial exploitation of the work within ninety days
    56  by  satisfying  at  least one of the benchmarks set forth in subdivision

        A. 11270                            6
 
     1  four of section 36.01 of this article; or (b) transfer  to  such  artist
     2  all  rights  in  the work held by such company. If such company fails to
     3  remedy the commercial neglect within ninety days, all rights in the work
     4  shall  revert  automatically  to  such  artist without further action or
     5  consideration. Such right  of  reversion  is  exercisable  at  any  time
     6  following  the  occurrence  of commercial neglect, regardless of whether
     7  the personal services contract has terminated, and  applies  equally  to
     8  any successor or assign of such company.
     9    3. Minimum standards. The rights established by this section are mini-
    10  mum  standards. A personal services contract may provide for post-termi-
    11  nation rights more favorable to an artist than those established herein,
    12  but no personal services contract may reduce, limit, condition, or elim-
    13  inate any right established by this section.
    14    § 36.11. Change  in  ownership  or  leadership.  1.  Definitions.  For
    15  purposes  of  this  section the following terms shall have the following
    16  meanings:
    17    (a) "Change of control" means any transaction  or  series  of  related
    18  transactions  resulting in: (i) the acquisition by any person or entity,
    19  or group of persons or entities acting in concert, of  more  than  fifty
    20  percent  of the voting securities or ownership interests of the company;
    21  (ii) the sale, transfer, or other disposition of  all  or  substantially
    22  all  of the assets of the company to a third party; or (iii) the merger,
    23  consolidation, or reorganization of the company  with  or  into  another
    24  entity  such  that  the existing equity holders of the company hold less
    25  than fifty percent of the voting securities of the surviving entity.
    26    (b) "Executive departure" means the departure, removal,  or  reassign-
    27  ment of any officer of the company at the level of chief executive offi-
    28  cer,  president,  chief operating officer, or equivalent, or any officer
    29  at the level of executive vice president or above, who held  direct  and
    30  final   decision-making  authority  over  the  release,  promotion,  and
    31  distribution of the artist's  recordings  under  the  personal  services
    32  contract.  An individual holds direct and final decision-making authori-
    33  ty for purposes of this definition only if such individual had the power
    34  to  approve  or veto commercial release decisions affecting the artist's
    35  recordings without obtaining approval from a superior within the  compa-
    36  ny.  The departure of an individual whose authority was subject to over-
    37  ride,  whose  role was primarily supervisory, advisory, or coordinative,
    38  or who served primarily as a point of contact between the artist and the
    39  company, shall not constitute an executive departure.
    40    (c) "Commercial neglect following a triggering event" means the occur-
    41  rence of commercial neglect as defined in subdivision  four  of  section
    42  36.01  of this article during the twelve-month period following a change
    43  of control or executive departure. Upon  the  occurrence  of  commercial
    44  neglect following a triggering event, the company shall have ninety days
    45  from  written  notice  by the artist to remedy the commercial neglect by
    46  satisfying at least one of the benchmarks set forth in subdivision  four
    47  of  section  36.01  of  this  article before the artist may exercise the
    48  right of election under subdivision two of this section.
    49    2. Artist's right of election. Upon the  occurrence  of  a  change  of
    50  control  or  executive  departure  that  results  in  commercial neglect
    51  following a triggering event, the artist may, by written notice  to  the
    52  company  delivered  no  later than ninety days after such artist knew or
    53  reasonably should have known of  such  commercial  neglect  following  a
    54  triggering event, elect one of the following:
    55    (a)  The  artist may elect to terminate the personal services contract
    56  effective thirty days after delivery of the  notice.  Termination  under

        A. 11270                            7
 
     1  this  paragraph  shall  not  constitute  a breach of contract, shall not
     2  trigger any penalty,  clawback,  accelerated  repayment,  or  forfeiture
     3  provision  in the contract.  Following termination under this paragraph,
     4  the  company's  right  to recoup any unrecouped advance balance shall be
     5  limited to royalties accruing  from  recordings  created  and  delivered
     6  during  the active term of the personal services contract; no royalties,
     7  earnings, or other compensation derived from any other source  shall  be
     8  applied to any unrecouped balance arising under the terminated contract.
     9  All  other  post-termination  rights under section 36.09 of this article
    10  apply accordingly; or
    11    (b) The artist may elect to initiate negotiation with the company  for
    12  transfer  to  such  artist  of  all or specified rights in works created
    13  under the personal services contract. Upon such artist's election  under
    14  this  paragraph,  the parties shall negotiate in good faith for a period
    15  of sixty days. If the parties do not reach agreement within sixty  days,
    16  such artist may, within thirty days of the expiration of the negotiation
    17  period, convert the election to an early termination under paragraph (a)
    18  of this subdivision, with the effective date of termination being thirty
    19  days after such conversion notice.
    20    3.  Preservation  of  accrued rights. An early termination under para-
    21  graph (a) of subdivision two of this section shall not affect:  (a)  the
    22  artist's  right to receive royalties and other compensation accrued from
    23  works created during the active term of the contract; (b) the  company's
    24  right  to  continue exploiting works already commercially released prior
    25  to the effective date of termination, subject to  the  continuing  obli-
    26  gation  to  account  and pay royalties; or (c) any reversion right under
    27  section 36.09 of this article that has accrued or that accrues following
    28  termination.
    29    4. Non-waiver. The rights established  by  this  section  may  not  be
    30  waived  or conditioned by any provision of a personal services contract,
    31  including any provision requiring the artist to consent  in  advance  to
    32  any  change  of control or executive departure. An artist's consent to a
    33  specific transaction, given in writing after such  artist  has  received
    34  notice of the specific terms of such transaction, shall not constitute a
    35  waiver  of  rights  with  respect to any subsequent change of control or
    36  executive departure.
    37    § 36.13. Effect of noncompliant provisions.  1.  Any  provision  of  a
    38  personal  services  contract  that  purports  to bind an artist to obli-
    39  gations extending beyond the seven-year period established by this arti-
    40  cle, or that purports to waive, limit, or condition such artist's  right
    41  to  terminate  such obligations after expiration of such period, is void
    42  and unenforceable as against such artist to the extent  of  such  excess
    43  and shall be severed from the remainder of such contract.
    44    2.  Any  provision  that purports to penalize an artist for exercising
    45  rights under this  article,  including  provisions  imposing  liquidated
    46  damages,  clawback  obligations,  accelerated  repayment  of advances or
    47  forfeiture of accrued royalties, is void and unenforceable.
    48    3. Any assignment or transfer of  rights  under  a  personal  services
    49  contract  that  purports  to  extend  an artist's obligations beyond the
    50  seven-year period, whether by  resetting  the  duration  calculation  or
    51  otherwise,  is  void  and  unenforceable  as  against such artist to the
    52  extent of such extension.
    53    4. (a) Upon termination of a personal  services  contract  under  this
    54  article,  whether  by  expiration  of the seven-year period, exercise of
    55  reversion rights under section 36.09 of this article, early  termination
    56  under paragraph (a) of subdivision two of section 36.11 of this article,

        A. 11270                            8
 
     1  or any other means, the company's right to recoup any unrecouped advance
     2  balance  shall,  following  the  termination  date, be limited solely to
     3  royalties accruing from recordings created and delivered by  the  artist
     4  during  the active term of the terminated personal services contract. No
     5  royalties, earnings,  or  other  compensation  derived  from  any  other
     6  source,   including  recordings  created  after  the  termination  date,
     7  contracts with any other party, or any other  professional  activity  of
     8  the  artist,  shall  be applied, withheld, redirected, or offset against
     9  any unrecouped advance balance arising  under  the  terminated  personal
    10  services contract.  Royalties accruing from in-term recordings after the
    11  termination  date shall continue to be applied to any unrecouped balance
    12  only until such balance reaches zero, at which point all such  royalties
    13  shall  be paid to the artist without deduction. The artist may expressly
    14  authorize continued recoupment from other sources in a written agreement
    15  entered into after the termination date and not as a  condition  of  any
    16  new contractual relationship.
    17    (b)  Within  sixty  days  of  the  termination date, the company shall
    18  provide the artist with a written itemized statement of account  setting
    19  forth:  (i)  the  total amount of advances paid to such artist under the
    20  personal services contract; (ii) the total amount  recouped  as  of  the
    21  termination  date; (iii) the outstanding unrecouped balance, if any; and
    22  (iv) an itemized accounting of all deductions applied to  such  artist's
    23  account during the term of the contract, including the contractual basis
    24  for each category of deduction. Failure to provide such statement within
    25  sixty  days  shall  create  a rebuttable presumption that the unrecouped
    26  balance as of the termination date is zero.
    27    (c) Any provision of a personal services  contract,  or  any  separate
    28  agreement entered into as a condition of a new contractual relationship,
    29  purporting  to authorize the application of post-termination earnings to
    30  a pre-termination unrecouped balance in contravention of  paragraph  (a)
    31  of this subdivision is void and unenforceable.
    32    5. This article shall be construed liberally in favor of artists.
    33    §  36.15.  Administrative enforcement. 1. The commissioner of labor is
    34  authorized and directed to enforce the provisions of  this  article  and
    35  shall have the authority to:
    36    (a)   receive   and   investigate  complaints  from  artists  alleging
    37  violations;
    38    (b) conduct investigations on such commissioner's own initiative;
    39    (c) issue subpoenas requiring attendance of witnesses  and  production
    40  of books and records;
    41    (d)  issue  compliance  orders requiring companies to cease violations
    42  and take affirmative remedial action;
    43    (e) impose civil penalties of up to ten thousand dollars per violation
    44  per affected artist, and up to twenty-five thousand dollars for repeated
    45  or willful violations; and
    46    (f) bring civil actions on behalf of one or more  artists  to  enforce
    47  this article or recover amounts due.
    48    2.  The commissioner of labor shall adopt rules and regulations neces-
    49  sary to implement this article and shall publish  an  annual  report  on
    50  enforcement,  including  number  of  complaints  received, outcomes, and
    51  amounts recovered.
    52    3. The commissioner of labor's exercise or non-exercise of enforcement
    53  authority shall not be a precondition to any  private  right  of  action
    54  under section 36.17 of this article.
    55    4.  An  artist  who  files  a  complaint  under  this article shall be
    56  protected from retaliation.  Any  adverse  action  taken  by  a  company

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     1  against an artist within one year of the filing of a complaint creates a
     2  rebuttable  presumption  of retaliation. A company found to have retali-
     3  ated shall be liable for treble damages and attorneys' fees.
     4    § 36.17. Private right of action. 1. An artist whose rights under this
     5  article  have  been violated, or who is threatened with enforcement of a
     6  personal services contract in violation of this  article,  may  bring  a
     7  civil action for:
     8    (a)  a declaratory judgment that such artist's obligations have termi-
     9  nated or are unenforceable under this article, or that reversion  rights
    10  have accrued under section 36.09 of this article;
    11    (b)  injunctive  relief, including relief prohibiting the company from
    12  initiating or continuing any legal proceeding to  compel  such  artist's
    13  performance  under  an agreement that has terminated under this article,
    14  from exploiting works as to which reversion rights have accrued, or from
    15  retaliating against such artist for exercising rights under  this  arti-
    16  cle;
    17    (c)  compensatory  damages,  including  damages  for lost professional
    18  opportunities, coerced renegotiation, the value  of  rights  surrendered
    19  under duress, and the value of services rendered after expiration of the
    20  seven-year period;
    21    (d)  disgorgement  of  profits  derived  from  such  artist's services
    22  rendered after expiration of the seven-year period, or from exploitation
    23  of works as to which reversion rights have accrued under  section  36.09
    24  of this article; and
    25    (e)  attorneys'  fees  and  costs, calculated at the prevailing market
    26  rate for comparable legal services without reduction on account  of  the
    27  ratio  of  fees to damages recovered, without presumption against a full
    28  lodestar award, and with consideration of the contingent nature  of  the
    29  representation where applicable.
    30    2.  In  any action brought by a company to enforce a personal services
    31  contract, the artist may assert this article as a  complete  defense  to
    32  any  claim for specific performance, injunctive relief, or other equita-
    33  ble remedy compelling such artist's continued service.
    34    3. The remedies provided by this article are cumulative and shall  not
    35  limit  any other remedy available to an artist under any other provision
    36  of law.
    37    4. An action under this article shall be commenced within  five  years
    38  of  the  date  the  artist  knew  or reasonably should have known of the
    39  violation. The limitations period shall be tolled: (a)  for  any  period
    40  during  which  the  company's  conduct,  including  litigation  threats,
    41  induced the artist to refrain from asserting rights under this  article;
    42  and  (b) for any period during which a non-disclosure or confidentiality
    43  obligation prevented the artist from disclosing the facts giving rise to
    44  the claim.
    45    5. No provision of a personal services contract purporting to  shorten
    46  the limitations period for claims under this article or to apply the law
    47  of any jurisdiction other than New York to such claims shall be enforce-
    48  able  against  an artist domiciled in or rendering a substantial portion
    49  of services in this state.   The  commissioner  of  labor,  when  acting
    50  pursuant  to  section 36.15 of this article, is not subject to any arbi-
    51  tration clause contained in a personal services contract and  may  bring
    52  enforcement actions in any court of competent jurisdiction regardless of
    53  any such clause.
    54    § 36.19. Non-waiver. 1. The rights and protections established by this
    55  article   are  non-waivable.  No  provision  of  any  personal  services
    56  contract, and no  separate  agreement,  release,  or  covenant,  whether

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     1  entered  into  before or after commencement of services, shall be effec-
     2  tive to waive, limit, diminish, or condition  any  right  or  protection
     3  afforded to an artist under this article.
     4    2.  No choice-of-law provision shall be effective to deprive an artist
     5  domiciled in this  state,  or  who  renders  a  substantial  portion  of
     6  services in this state, of the protections of this article.
     7    3. Nothing in this article prohibits the arbitration of claims arising
     8  under  this  article.  Any  arbitration  clause  in  a personal services
     9  contract is subject to New York's general law  of  unconscionability.  A
    10  company's   material   financial  interest  in,  or  ongoing  commercial
    11  relationship with, a designated arbitration  forum  constitutes  evident
    12  partiality  within  the  meaning  of  9 U.S.C. § 10(a)(2), and any award
    13  issued by such a forum shall be subject to vacatur on that ground.
    14    4. The fact that an artist received legal counsel or  was  represented
    15  by  an agent, manager, or attorney in connection with the negotiation of
    16  a personal services contract is not a waiver of  any  right  under  this
    17  article and is not a defense to any action brought under this article.
    18    §  36.21.  Relationship  to federal law. 1. Copyright preemption. This
    19  article governs the commercial relationship between artists  and  compa-
    20  nies as a matter of labor and contract law and does not create any right
    21  equivalent to the exclusive rights within the general scope of copyright
    22  as  specified  in  17  U.S.C.  §  106.  Where a claim under this article
    23  requires resolution of a question of copyright  ownership  or  infringe-
    24  ment,  such  question  shall  be  resolved in accordance with applicable
    25  federal copyright law, and the state law claim shall proceed only to the
    26  extent it raises rights qualitatively different from those protected  by
    27  the copyright act.
    28    2. Federal labor law. Where a claim under this article is preempted by
    29  the  national labor relations act, the affected claim shall be stayed or
    30  dismissed without prejudice to renewal in the appropriate federal forum.
    31  The determination of whether a claim is preempted shall be made  by  the
    32  court  before  which the action is pending, without presumption in favor
    33  of preemption.
    34    § 36.23. Transitional provisions. 1. Any renewal  or  extension  of  a
    35  personal  services  contract occurring on or after the effective date of
    36  this article shall be  treated  as  a  new  personal  services  contract
    37  subject  to  the  provisions  of  this  article  regardless  of when the
    38  original personal services contract was entered into, and the seven-year
    39  period under section 36.07 of this article shall be calculated from  the
    40  date the artist first renders services under such renewal or extension.
    41    2. Nothing in this section shall be construed to revive any obligation
    42  under  a  personal  services  contract  that terminated by its own terms
    43  prior to the effective date of this article.
    44    § 36.25. Severability. If any provision of this article, or the appli-
    45  cation thereof to any person or circumstance, is held invalid or  uncon-
    46  stitutional,  such  invalidity  or  unconstitutionality shall not affect
    47  other provisions or applications of  this  article  that  can  be  given
    48  effect without the invalid or unconstitutional provision or application,
    49  and to such end the provisions of this article shall be severable.
    50    §  4. This act shall take effect on the first of January next succeed-
    51  ing the date on which it shall have become a law and shall apply to  all
    52  personal  services  contracts  entered  into,  renewed or extended on or
    53  after such date.
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