Assembly Bill A11270

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11270
 
                           I N  A S S E M B L Y
 
                                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:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "advancing rights for  talent,  independence,  services  and  tenure
 (ARTIST) act".
   § 2. Legislative findings. The legislature finds and declares that:
   (a)  New  York's music industry contributes nearly twenty-five billion
 dollars annually to the state's economy, supports tens of  thousands  of
 jobs  across  recording, publishing, live performance, and distribution,
 and ranks second among all states in music industry gross domestic prod-
 uct behind only California. New York is home  to  one  of  the  nation's
 largest concentrations of recording artists, songwriters, composers, and
 music producers. The companies that acquire, distribute, and commercial-
 ly  exploit  their  recordings  and  compositions depend entirely on the
 creative labor of those individuals  for  their  commercial  value.  Yet
 standard   recording  and  publishing  contracts  function  to  transfer
 substantially all long-term economic value to  companies  while  leaving
 artists to bear the full risk of commercial failure.
   (b)  The  state's arts and cultural affairs law already recognizes the
 need to protect artists from long-term exploitation, prohibiting indefi-
 nite personal services contracts for performers under the age  of  eigh-
 teen.    This  act extends those protections to adult artists, closing a
 gap in the existing law that has  left  New  York's  creative  workforce
 vulnerable to indefinite and one-sided contractual arrangements.
   (c)  The  mechanisms  through  which  this exploitation occurs include
 unilateral option periods that restrict  the  artist  at  the  company's
 discretion;  minimum  commitment  structures that condition the artist's
 right to leave on delivery requirements the company controls; and exclu-
 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
 
 professional  relationships.  These  arrangements are not the product of
 arm's-length bargaining. A small number of entities control the distrib-
 ution infrastructure through which creative work  reaches  audiences  at
 scale.
   (d)  The legislature therefore finds it necessary to establish reason-
 able limits on the length of creative contracts and to  provide  artists
 with  fairer  terms  regarding compensation and ownership of their work.
 The purpose of this act is to modernize New  York's  arts  and  cultural
 affairs law, promote career mobility and strengthen the stability of the
 state's creative economy.
   §  3.  The  arts  and  cultural affairs law is amended by adding a new
 title L-1 to read as follows:
                                  TITLE L-1
      ADVANCING RIGHTS FOR TALENT, INDEPENDENCE, SERVICES AND TENURE
                               (ARTIST) ACT
                                ARTICLE 36
      ADVANCING RIGHTS FOR TALENT, INDEPENDENCE, SERVICES AND TENURE
                               (ARTIST) ACT
 SECTION 36.01. DEFINITIONS.
         36.03. EXCLUSIONS.
         36.05. ANTI-CIRCUMVENTION.
         36.07. MAXIMUM DURATION.
         36.09. POST-TERMINATION RIGHTS.
         36.11. CHANGE IN OWNERSHIP OR LEADERSHIP.
         36.13. EFFECT OF NONCOMPLIANT PROVISIONS.
         36.15. ADMINISTRATIVE ENFORCEMENT.
         36.17. PRIVATE RIGHT OF ACTION.
         36.19. NON-WAIVER.
         36.21. RELATIONSHIP TO FEDERAL LAW.
         36.23. TRANSITIONAL PROVISIONS.
         36.25. SEVERABILITY.
   § 36.01. DEFINITIONS. AS USED IN THIS ARTICLE:
   1. "ARTIST" MEANS ANY NATURAL PERSON WHO RENDERS PERSONAL SERVICES  AS
 A  RECORDING  ARTIST, VOCALIST, MUSICIAN, SONGWRITER, COMPOSER, OR MUSIC
 PRODUCER IN CONNECTION WITH THE CREATION, PERFORMANCE, OR  RECORDING  OF
 MUSICAL  WORKS OR SOUND RECORDINGS, INCLUDING ORIGINAL MUSIC CREATED FOR
 DISTRIBUTION THROUGH STREAMING  SERVICES,  SOCIAL  MEDIA  PLATFORMS,  OR
 OTHER  DIGITAL  CHANNELS,  AND WHOSE SERVICES ARE RENDERED PRIMARILY FOR
 THE PURPOSE OF PRODUCING OR CONTRIBUTING TO SUCH WORKS.
   2. (A) "PERSONAL SERVICES CONTRACT" MEANS ANY AGREEMENT,  OR  COMBINA-
 TION OF RELATED AGREEMENTS, UNDER WHICH AN ARTIST IS OBLIGATED TO RENDER
 CREATIVE  OR  PERFORMING SERVICES, OR TO EXCLUSIVELY MAKE AVAILABLE SUCH
 ARTIST'S CREATIVE OR PERFORMING SERVICES, TO OR FOR THE BENEFIT  OF  ANY
 OTHER PARTY, WHERE:
   (I)  SUCH SERVICES ARE NON-DELEGABLE AND ARE SOUGHT BY THE OTHER PARTY
 PRIMARILY BECAUSE OF THE IDENTITY, REPUTATION,  OR  UNIQUE  CREATIVE  OR
 PERFORMING ATTRIBUTES OF SUCH ARTIST;
   (II)  SUCH  AGREEMENT  CONTAINS  ANY  PROVISION  THAT  RESTRICTS  SUCH
 ARTIST'S ABILITY TO RENDER CREATIVE OR PERFORMING SERVICES FOR ANY OTHER
 PARTY DURING THE TERM; AND
   (III) THE DURATION OF SUCH ARTIST'S OBLIGATIONS, INCLUDING ALL UNILAT-
 ERAL OPTIONS TO EXTEND, RENEW, OR CONTINUE THE AGREEMENT EXERCISABLE  BY
 ANY  PARTY  OTHER  THAN  SUCH ARTIST, ALL PROVISIONS CONDITIONING TERMI-
 NATION ON THE DELIVERY OR COMPLETION OF A DEFINED BODY OF WORK OR NUMBER
 OF RECORDINGS, AND ALL PROVISIONS RESTRICTING SUCH ARTIST'S  ABILITY  TO
 A. 11270                            3
 
 RENDER  SERVICES  FOR ANY OTHER PARTY FOLLOWING EXPIRATION OF THE STATED
 TERM, EXCEEDS OR MAY EXCEED ONE YEAR.
   (B)  TWO  OR  MORE  AGREEMENTS BETWEEN THE SAME PARTIES, OR BETWEEN AN
 ARTIST AND PARTIES ACTING IN  CONCERT,  THAT  TOGETHER  IMPOSE  ON  SUCH
 ARTIST  OBLIGATIONS  OR RESTRICTIONS EQUIVALENT TO THOSE DESCRIBED ABOVE
 SHALL BE TREATED AS A SINGLE PERSONAL SERVICES  CONTRACT.  AN  AGREEMENT
 SHALL NOT FAIL TO CONSTITUTE A PERSONAL SERVICES CONTRACT SOLELY BECAUSE
 THE  ARTIST  CONTRACTS THROUGH A CORPORATION, LIMITED LIABILITY COMPANY,
 OR OTHER ENTITY, PROVIDED THAT SUCH ARTIST IS THE SOLE OR PRIMARY  BENE-
 FICIAL OWNER OF SUCH ENTITY AND SUCH ENTITY WAS FORMED PRIMARILY FOR THE
 PURPOSE OF RENDERING SUCH ARTIST'S SERVICES.
   3.  "COMPANY"  MEANS  ANY  PERSON OTHER THAN A NATURAL PERSON, AND ANY
 NATURAL PERSON ACTING IN  A  COMMERCIAL  CAPACITY  IN  THE  BUSINESS  OF
 ACQUIRING,  PRODUCING,  DISTRIBUTING,  LICENSING, MANAGING, OR OTHERWISE
 COMMERCIALLY  EXPLOITING  RECORDINGS,  COMPOSITIONS,  OR  OTHER  MUSICAL
 WORKS,  THAT  IS  A  PARTY  TO OR THE BENEFICIARY OF A PERSONAL SERVICES
 CONTRACT WITH AN ARTIST, AND INCLUDES:
   (A) ANY ENTITY THAT DIRECTLY OR INDIRECTLY CONTROLS, IS CONTROLLED BY,
 OR IS UNDER COMMON CONTROL WITH THE CONTRACTING PARTY,  WHERE  "CONTROL"
 MEANS  THE  POWER TO DIRECT OR CAUSE THE DIRECTION OF THE MANAGEMENT AND
 POLICIES OF AN ENTITY, WHETHER THROUGH VOTING SECURITIES,  CONTRACT,  OR
 THE  POWER  TO  APPOINT  A  MAJORITY OF THE GOVERNING BODY. ALL PERSONAL
 SERVICES CONTRACTS BETWEEN AN ARTIST AND AFFILIATED  ENTITIES  SHALL  BE
 TREATED AS A SINGLE PERSONAL SERVICES CONTRACT WITH A SINGLE COMPANY FOR
 PURPOSES OF CALCULATING DURATION UNDER THIS ARTICLE;
   (B)  ANY  ENTITY  TO  WHICH A COMPANY ASSIGNS, TRANSFERS, OR OTHERWISE
 CONVEYS ITS RIGHTS OR OBLIGATIONS UNDER A  PERSONAL  SERVICES  CONTRACT,
 WHETHER  VOLUNTARILY  OR  BY  OPERATION OF LAW. NO SUCH CONVEYANCE SHALL
 EXTEND THE PERMISSIBLE DURATION OF THE ARTIST'S OBLIGATIONS  BEYOND  THE
 LIMITS ESTABLISHED BY THIS ARTICLE;
   (C)  ANY ENTITY OR NATURAL PERSON THAT, ALTHOUGH NOT A FORMAL PARTY TO
 THE PERSONAL SERVICES CONTRACT, DIRECTLY RECEIVES, EXPLOITS, OR  COMMER-
 CIALLY BENEFITS FROM THE ARTIST'S SERVICES, WHERE THE FORMAL CONTRACTING
 PARTY  IS  ACTING  PRIMARILY  AS AN AGENT, INTERMEDIARY, OR PASS-THROUGH
 VEHICLE FOR THE BENEFIT OF SUCH ENTITY OR PERSON. IN DETERMINING WHETHER
 AN ENTITY IS A BENEFICIAL  COUNTERPARTY,  A  COURT  SHALL  CONSIDER  THE
 DEGREE  TO  WHICH THE ENTITY CONTROLS THE MATERIAL TERMS OF THE ARTIST'S
 ENGAGEMENT; WHETHER THE  ENTITY  HAS  PRACTICAL  AUTHORITY  TO  APPROVE,
 REJECT,  OR  WITHHOLD RELEASE OF THE ARTIST'S WORK PRODUCT; THE ECONOMIC
 RELATIONSHIP BETWEEN THE FORMAL CONTRACTING PARTY AND  THE  ENTITY;  AND
 ANY COURSE OF DEALING BETWEEN THE PARTIES; AND
   (D)  ANY ENTITY THAT ENTERS INTO A JOINT VENTURE, CO-PRODUCTION AGREE-
 MENT, CO-PUBLISHING ARRANGEMENT,  OR  SIMILAR  COLLABORATIVE  COMMERCIAL
 STRUCTURE  WITH  THE  CONTRACTING  PARTY, TO THE EXTENT THAT SUCH ENTITY
 ACQUIRES RIGHTS IN OR  DERIVES  COMMERCIAL  BENEFIT  FROM  THE  ARTIST'S
 SERVICES RENDERED UNDER THE PERSONAL SERVICES CONTRACT.
   4.  "COMMERCIAL  NEGLECT" MEANS THE OCCURRENCE OF ANY OF THE FOLLOWING
 FOR A CONTINUOUS PERIOD OF TWELVE CONSECUTIVE  MONTHS  WITH  RESPECT  TO
 RECORDINGS  OR  COMPOSITIONS  CREATED  BY  THE ARTIST UNDER THE PERSONAL
 SERVICES CONTRACT, OTHER THAN BY REASON OF A LEGAL DISPUTE  BETWEEN  THE
 ARTIST  AND  THE  COMPANY  DIRECTLY  CONCERNING THE AFFECTED WORKS, OR A
 FORCE MAJEURE EVENT THAT GENERALLY PREVENTED COMMERCIAL  MUSIC  DISTRIB-
 UTION DURING THE RELEVANT PERIOD:
   (A)  ANY  RECORDING  BY  THE  ARTIST  THAT  HAS  BEEN DELIVERED TO AND
 ACCEPTED BY THE COMPANY AS SATISFYING THE APPLICABLE CONTRACTUAL  DELIV-
 ERY STANDARD REMAINS COMMERCIALLY UNRELEASED; OR
 A. 11270                            4
 
   (B)  THE  COMPANY'S  TOTAL  EXPENDITURE  ON  PROMOTION, MARKETING, AND
 DISTRIBUTION OF THE ARTIST'S RECORDINGS DURING THE  TWELVE-MONTH  PERIOD
 FALLS  BELOW FIFTY PERCENT OF THE AVERAGE ANNUAL PROMOTIONAL EXPENDITURE
 MADE BY THE COMPANY ON BEHALF OF THE SAME ARTIST DURING  THE  TWO  YEARS
 IMMEDIATELY  PRECEDING  THE  PERIOD  IN  QUESTION,  AS DOCUMENTED IN THE
 COMPANY'S FINANCIAL RECORDS. WHERE THE PERSONAL  SERVICES  CONTRACT  HAS
 BEEN  IN  EFFECT FOR LESS THAN TWO YEARS AT THE TIME THE RELEVANT PERIOD
 BEGINS, THE BASELINE SHALL BE THE AVERAGE ANNUAL PROMOTIONAL EXPENDITURE
 DURING THE ENTIRE PERIOD THE CONTRACT HAS BEEN IN EFFECT. THE BURDEN  OF
 PRODUCING  EVIDENCE OF PROMOTIONAL EXPENDITURE LEVELS FOR BOTH THE RELE-
 VANT PERIOD AND THE BASELINE PERIOD SHALL REST WITH THE COMPANY.
   § 36.03. EXCLUSIONS. THE PROVISIONS OF THIS ARTICLE  SHALL  NOT  APPLY
 TO:
   1.  ANY  AGREEMENT  THAT  CREATES  AN  AT-WILL EMPLOYMENT RELATIONSHIP
 TERMINABLE  BY  EITHER  PARTY  WITHOUT  CAUSE  UPON  REASONABLE  NOTICE,
 PROVIDED THAT NO PROVISION OF THE AGREEMENT RESTRICTS THE ARTIST'S ABIL-
 ITY  TO  RENDER  CREATIVE  OR  PERFORMING  SERVICES  FOR ANY OTHER PARTY
 FOLLOWING TERMINATION;
   2. ANY TERM OR CONDITION OF  EMPLOYMENT  SPECIFICALLY  GOVERNED  BY  A
 COLLECTIVE  BARGAINING  AGREEMENT  BETWEEN  AN  EMPLOYER AND A BONA FIDE
 LABOR ORGANIZATION REPRESENTING ARTISTS.  NOTHING  IN  THIS  SUBDIVISION
 SHALL  PRECLUDE  AN  INDIVIDUAL  ARTIST FROM INVOKING THE PROTECTIONS OF
 THIS ARTICLE WITH RESPECT TO ANY  TERM  OR  CONDITION  NOT  SPECIFICALLY
 ADDRESSED  BY  THE APPLICABLE COLLECTIVE BARGAINING AGREEMENT. WHERE THE
 APPLICABILITY OF A COLLECTIVE BARGAINING AGREEMENT TO A  SPECIFIC  CLAIM
 UNDER THIS ARTICLE IS GENUINELY DISPUTED, PROCEEDINGS UNDER THIS ARTICLE
 SHALL BE STAYED ONLY PENDING RESOLUTION OF THAT QUESTION, AND ONLY WHERE
 THE  COMPANY DEMONSTRATES THAT RESOLUTION IS NECESSARY TO ADJUDICATE THE
 CLAIM;
   3. ANY AGREEMENT BETWEEN AN ARTIST AND  A  LICENSED  TALENT  AGENT  OR
 ARTIST MANAGER, PROVIDED THAT:
   (A)  SUCH  AGREEMENT DOES NOT REQUIRE THE ARTIST TO RENDER CREATIVE OR
 PERFORMING SERVICES DIRECTLY TO OR FOR  THE  BENEFIT  OF  THE  AGENT  OR
 MANAGER;
   (B)  THE AGENT OR MANAGER'S COMPENSATION IS LIMITED TO A PERCENTAGE OF
 THE ARTIST'S EARNINGS FROM THIRD-PARTY ENGAGEMENTS; AND
   (C) SUCH AGREEMENT DOES NOT ASSIGN, TRANSFER, OR  EXCLUSIVELY  LICENSE
 TO THE AGENT OR MANAGER ANY INTELLECTUAL PROPERTY RIGHTS IN THE ARTIST'S
 CREATIVE WORKS, WHETHER EXISTING OR TO BE CREATED;
   4.  AN AGREEMENT SOLELY BETWEEN AN ARTIST AND SUCH ARTIST'S OWN WHOLLY
 OWNED PERSONAL SERVICES  ENTITY,  ENTERED  INTO  FOR  TAX  OR  LIABILITY
 PURPOSES,  WHICH  SHALL  NOT CONSTITUTE A PERSONAL SERVICES CONTRACT FOR
 PURPOSES OF THIS ARTICLE. AN  AGREEMENT  BETWEEN  AN  ARTIST'S  PERSONAL
 SERVICES ENTITY AND A THIRD-PARTY COMPANY SHALL NOT BE EXCLUDED FROM THE
 PROTECTIONS OF THIS ARTICLE SOLELY BY REASON OF THE ARTIST'S USE OF SUCH
 AN ENTITY;
   5.  ANY  AGREEMENT  BETWEEN  AN  ARTIST  AND  A UNIT OF STATE OR LOCAL
 GOVERNMENT, PUBLIC BENEFIT CORPORATION, OR PUBLIC  EDUCATIONAL  INSTITU-
 TION  FOR  THE  PERFORMANCE OF A SPECIFIC PUBLIC ENGAGEMENT OR SERIES OF
 ENGAGEMENTS,  PROVIDED  THAT  THE  AGREEMENT  CONTAINS  NO   EXCLUSIVITY
 PROVISION  RESTRICTING  THE  ARTIST'S ABILITY TO RENDER SERVICES FOR ANY
 OTHER PARTY; OR
   6. ANY AGREEMENT BETWEEN TWO OR MORE ARTISTS FOR THE PURPOSE OF CREAT-
 ING, PERFORMING, OR PRODUCING A COLLABORATIVE WORK,  INCLUDING  PARTNER-
 SHIP  AGREEMENTS,  BAND  AGREEMENTS, AND CO-WRITING AGREEMENTS, PROVIDED
 A. 11270                            5
 
 THAT NO PARTY IS PRIMARILY IN THE BUSINESS OF ACQUIRING, EXPLOITING,  OR
 COMMERCIALLY DISTRIBUTING THE CREATIVE OUTPUT OF OTHERS.
   §  36.05.  ANTI-CIRCUMVENTION.  NO ARRANGEMENT, STRUCTURE OR SERIES OF
 TRANSACTIONS SHALL BE GIVEN EFFECT FOR PURPOSES OF THIS ARTICLE  IF  THE
 PRIMARY PURPOSE OF SUCH ARRANGEMENT, STRUCTURE OR SERIES OF TRANSACTIONS
 IS  TO  EVADE  THE  PROTECTIONS OF THIS ARTICLE, INCLUDING THE DISAGGRE-
 GATION OF A SINGLE COMMERCIAL RELATIONSHIP INTO MULTIPLE CONTRACTS  WITH
 MULTIPLE  FORMALLY  DISTINCT  ENTITIES  TO  AVOID THE DURATION LIMITS OR
 REVERSION RIGHTS ESTABLISHED IN THIS ARTICLE.
   § 36.07. MAXIMUM DURATION. 1. NO COMPANY SHALL ENFORCE, AND  NO  COURT
 SHALL  GIVE  EFFECT  TO,  ANY  OBLIGATION  OF AN ARTIST UNDER A PERSONAL
 SERVICES CONTRACT, OR  ANY  COMBINATION  OF  RELATED  PERSONAL  SERVICES
 CONTRACTS TREATED AS A SINGLE AGREEMENT UNDER THIS ARTICLE, FOR A PERIOD
 EXCEEDING  SEVEN  YEARS FROM THE DATE ON WHICH SUCH ARTIST FIRST RENDERS
 SERVICES.
   2. FOR PURPOSES OF CALCULATING SUCH SEVEN-YEAR PERIOD:
   (A) THE  PERIOD  COMMENCES  ON  THE  DATE  THE  ARTIST  FIRST  RENDERS
 SERVICES, REGARDLESS OF THE DATE OF EXECUTION;
   (B)   PERIODS  DURING  WHICH  THE  ARTIST'S  OBLIGATIONS  ARE  TOLLED,
 SUSPENDED, OR EXTENDED BY ANY FORCE MAJEURE CLAUSE,  SUSPENSION  CLAUSE,
 CURE  PERIOD,  OR SIMILAR PROVISION SHALL BE INCLUDED IN THE CALCULATION
 AND SHALL NOT EXTEND THE PERMISSIBLE DURATION BEYOND SEVEN YEARS, EXCEPT
 WHERE SUCH TOLLING OR SUSPENSION IS AT THE ELECTION OF THE ARTIST;
   (C) ALL UNILATERAL OPTION PERIODS EXERCISABLE BY ANY PARTY OTHER  THAN
 THE  ARTIST,  AND  ALL  PERIODS  DURING  WHICH  THE ARTIST'S OBLIGATIONS
 CONTINUE BY VIRTUE OF A MINIMUM COMMITMENT OR DELIVERY REQUIREMENT  THAT
 HAS NOT BEEN SATISFIED, SHALL BE INCLUDED, PROVIDED THAT WHERE A COMPANY
 WITHHOLDS  APPROVAL  OF  DELIVERY  IN  BAD FAITH OR WITHOUT COMMERCIALLY
 REASONABLE JUSTIFICATION, THE PERIOD OF  SUCH  WITHHOLDING  SHALL  COUNT
 AGAINST  THE  SEVEN-YEAR LIMIT REGARDLESS OF WHETHER THE MINIMUM COMMIT-
 MENT HAS BEEN FORMALLY SATISFIED. ONCE  AN  ARTIST  ESTABLISHES  THAT  A
 DELIVERED RECORDING SATISFIES THE APPLICABLE CONTRACTUAL DELIVERY STAND-
 ARD,  THE  BURDEN SHALL SHIFT TO THE COMPANY TO DEMONSTRATE BY A PREPON-
 DERANCE OF THE EVIDENCE THAT ANY WITHHOLDING OF  APPROVAL  WAS  MADE  IN
 GOOD  FAITH AND FOR COMMERCIALLY REASONABLE REASONS DOCUMENTED CONTEMPO-
 RANEOUSLY WITH THE REJECTION; AND
   (D) WHERE THE CONTRACT CONDITIONS THE ARTIST'S RIGHT TO  TERMINATE  ON
 COMPLETION  OF  A  DEFINED BODY OF WORK, THE SEVEN-YEAR PERIOD RUNS FROM
 THE DATE SERVICES FIRST COMMENCED, AND THE ARTIST'S  OBLIGATIONS  TERMI-
 NATE  UPON THE EARLIER OF FULFILLMENT OF THE MINIMUM COMMITMENT OR EXPI-
 RATION OF THE SEVEN-YEAR PERIOD.
   3. NOTHING IN THIS SECTION REQUIRES A COMPANY TO EXERCISE  ANY  OPTION
 OR  EXTEND  ANY  AGREEMENT, OR ENTITLES AN ARTIST TO COMPENSATION BEYOND
 THAT PROVIDED IN THE CONTRACT FOR SERVICES ACTUALLY RENDERED.
   § 36.09. POST-TERMINATION RIGHTS. 1. NOTICE OF ASSIGNMENT.  A  COMPANY
 SHALL  PROVIDE AN ARTIST WITH WRITTEN NOTICE OF ANY ASSIGNMENT OR TRANS-
 FER OF SUCH COMPANY'S RIGHTS IN WORKS CREATED UNDER A PERSONAL  SERVICES
 CONTRACT  NO  LATER  THAN  THIRTY  DAYS AFTER THE EVENT. SUCH OBLIGATION
 SURVIVES TERMINATION OF THE PERSONAL SERVICES CONTRACT FOR  AS  LONG  AS
 SUCH  COMPANY  OR  ANY SUCCESSOR HOLDS RIGHTS IN SUCH ARTIST'S WORK, AND
 APPLIES EQUALLY TO ANY SUCCESSOR OR ASSIGN OF SUCH COMPANY.
   2. REVERSION UPON COMMERCIAL NEGLECT. UPON COMMERCIAL NEGLECT  OF  ANY
 CREATIVE  WORK CREATED UNDER A PERSONAL SERVICES CONTRACT, AN ARTIST MAY
 NOTIFY A COMPANY IN WRITING DEMANDING  THAT  SUCH  COMPANY  EITHER:  (A)
 RECOMMENCE ACTIVE COMMERCIAL EXPLOITATION OF THE WORK WITHIN NINETY DAYS
 BY  SATISFYING  AT  LEAST ONE OF THE BENCHMARKS SET FORTH IN SUBDIVISION
 A. 11270                            6
 
 FOUR OF SECTION 36.01 OF THIS ARTICLE; OR (B) TRANSFER  TO  SUCH  ARTIST
 ALL  RIGHTS  IN  THE WORK HELD BY SUCH COMPANY. IF SUCH COMPANY FAILS TO
 REMEDY THE COMMERCIAL NEGLECT WITHIN NINETY DAYS, ALL RIGHTS IN THE WORK
 SHALL  REVERT  AUTOMATICALLY  TO  SUCH  ARTIST WITHOUT FURTHER ACTION OR
 CONSIDERATION. SUCH RIGHT  OF  REVERSION  IS  EXERCISABLE  AT  ANY  TIME
 FOLLOWING  THE  OCCURRENCE  OF COMMERCIAL NEGLECT, REGARDLESS OF WHETHER
 THE PERSONAL SERVICES CONTRACT HAS TERMINATED, AND  APPLIES  EQUALLY  TO
 ANY SUCCESSOR OR ASSIGN OF SUCH COMPANY.
   3. MINIMUM STANDARDS. THE RIGHTS ESTABLISHED BY THIS SECTION ARE MINI-
 MUM  STANDARDS. A PERSONAL SERVICES CONTRACT MAY PROVIDE FOR POST-TERMI-
 NATION RIGHTS MORE FAVORABLE TO AN ARTIST THAN THOSE ESTABLISHED HEREIN,
 BUT NO PERSONAL SERVICES CONTRACT MAY REDUCE, LIMIT, CONDITION, OR ELIM-
 INATE ANY RIGHT ESTABLISHED BY THIS SECTION.
   § 36.11. CHANGE  IN  OWNERSHIP  OR  LEADERSHIP.  1.  DEFINITIONS.  FOR
 PURPOSES  OF  THIS  SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   (A) "CHANGE OF CONTROL" MEANS ANY TRANSACTION  OR  SERIES  OF  RELATED
 TRANSACTIONS  RESULTING IN: (I) THE ACQUISITION BY ANY PERSON OR ENTITY,
 OR GROUP OF PERSONS OR ENTITIES ACTING IN CONCERT, OF  MORE  THAN  FIFTY
 PERCENT  OF THE VOTING SECURITIES OR OWNERSHIP INTERESTS OF THE COMPANY;
 (II) THE SALE, TRANSFER, OR OTHER DISPOSITION OF  ALL  OR  SUBSTANTIALLY
 ALL  OF THE ASSETS OF THE COMPANY TO A THIRD PARTY; OR (III) THE MERGER,
 CONSOLIDATION, OR REORGANIZATION OF THE COMPANY  WITH  OR  INTO  ANOTHER
 ENTITY  SUCH  THAT  THE EXISTING EQUITY HOLDERS OF THE COMPANY HOLD LESS
 THAN FIFTY PERCENT OF THE VOTING SECURITIES OF THE SURVIVING ENTITY.
   (B) "EXECUTIVE DEPARTURE" MEANS THE DEPARTURE, REMOVAL,  OR  REASSIGN-
 MENT OF ANY OFFICER OF THE COMPANY AT THE LEVEL OF CHIEF EXECUTIVE OFFI-
 CER,  PRESIDENT,  CHIEF OPERATING OFFICER, OR EQUIVALENT, OR ANY OFFICER
 AT THE LEVEL OF EXECUTIVE VICE PRESIDENT OR ABOVE, WHO HELD  DIRECT  AND
 FINAL   DECISION-MAKING  AUTHORITY  OVER  THE  RELEASE,  PROMOTION,  AND
 DISTRIBUTION OF THE ARTIST'S  RECORDINGS  UNDER  THE  PERSONAL  SERVICES
 CONTRACT.  AN INDIVIDUAL HOLDS DIRECT AND FINAL DECISION-MAKING AUTHORI-
 TY FOR PURPOSES OF THIS DEFINITION ONLY IF SUCH INDIVIDUAL HAD THE POWER
 TO  APPROVE  OR VETO COMMERCIAL RELEASE DECISIONS AFFECTING THE ARTIST'S
 RECORDINGS WITHOUT OBTAINING APPROVAL FROM A SUPERIOR WITHIN THE  COMPA-
 NY.  THE DEPARTURE OF AN INDIVIDUAL WHOSE AUTHORITY WAS SUBJECT TO OVER-
 RIDE,  WHOSE  ROLE WAS PRIMARILY SUPERVISORY, ADVISORY, OR COORDINATIVE,
 OR WHO SERVED PRIMARILY AS A POINT OF CONTACT BETWEEN THE ARTIST AND THE
 COMPANY, SHALL NOT CONSTITUTE AN EXECUTIVE DEPARTURE.
   (C) "COMMERCIAL NEGLECT FOLLOWING A TRIGGERING EVENT" MEANS THE OCCUR-
 RENCE OF COMMERCIAL NEGLECT AS DEFINED IN SUBDIVISION  FOUR  OF  SECTION
 36.01  OF THIS ARTICLE DURING THE TWELVE-MONTH PERIOD FOLLOWING A CHANGE
 OF CONTROL OR EXECUTIVE DEPARTURE. UPON  THE  OCCURRENCE  OF  COMMERCIAL
 NEGLECT FOLLOWING A TRIGGERING EVENT, THE COMPANY SHALL HAVE NINETY DAYS
 FROM  WRITTEN  NOTICE  BY THE ARTIST TO REMEDY THE COMMERCIAL NEGLECT BY
 SATISFYING AT LEAST ONE OF THE BENCHMARKS SET FORTH IN SUBDIVISION  FOUR
 OF  SECTION  36.01  OF  THIS  ARTICLE BEFORE THE ARTIST MAY EXERCISE THE
 RIGHT OF ELECTION UNDER SUBDIVISION TWO OF THIS SECTION.
   2. ARTIST'S RIGHT OF ELECTION. UPON THE  OCCURRENCE  OF  A  CHANGE  OF
 CONTROL  OR  EXECUTIVE  DEPARTURE  THAT  RESULTS  IN  COMMERCIAL NEGLECT
 FOLLOWING A TRIGGERING EVENT, THE ARTIST MAY, BY WRITTEN NOTICE  TO  THE
 COMPANY  DELIVERED  NO  LATER THAN NINETY DAYS AFTER SUCH ARTIST KNEW OR
 REASONABLY SHOULD HAVE KNOWN OF  SUCH  COMMERCIAL  NEGLECT  FOLLOWING  A
 TRIGGERING EVENT, ELECT ONE OF THE FOLLOWING:
   (A)  THE  ARTIST MAY ELECT TO TERMINATE THE PERSONAL SERVICES CONTRACT
 EFFECTIVE THIRTY DAYS AFTER DELIVERY OF THE  NOTICE.  TERMINATION  UNDER
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 THIS  PARAGRAPH  SHALL  NOT  CONSTITUTE  A BREACH OF CONTRACT, SHALL NOT
 TRIGGER ANY PENALTY,  CLAWBACK,  ACCELERATED  REPAYMENT,  OR  FORFEITURE
 PROVISION  IN THE CONTRACT.  FOLLOWING TERMINATION UNDER THIS PARAGRAPH,
 THE  COMPANY'S  RIGHT  TO RECOUP ANY UNRECOUPED ADVANCE BALANCE SHALL BE
 LIMITED TO ROYALTIES ACCRUING  FROM  RECORDINGS  CREATED  AND  DELIVERED
 DURING  THE ACTIVE TERM OF THE PERSONAL SERVICES CONTRACT; NO ROYALTIES,
 EARNINGS, OR OTHER COMPENSATION DERIVED FROM ANY OTHER SOURCE  SHALL  BE
 APPLIED TO ANY UNRECOUPED BALANCE ARISING UNDER THE TERMINATED CONTRACT.
 ALL  OTHER  POST-TERMINATION  RIGHTS UNDER SECTION 36.09 OF THIS ARTICLE
 APPLY ACCORDINGLY; OR
   (B) THE ARTIST MAY ELECT TO INITIATE NEGOTIATION WITH THE COMPANY  FOR
 TRANSFER  TO  SUCH  ARTIST  OF  ALL OR SPECIFIED RIGHTS IN WORKS CREATED
 UNDER THE PERSONAL SERVICES CONTRACT. UPON SUCH ARTIST'S ELECTION  UNDER
 THIS  PARAGRAPH,  THE PARTIES SHALL NEGOTIATE IN GOOD FAITH FOR A PERIOD
 OF SIXTY DAYS. IF THE PARTIES DO NOT REACH AGREEMENT WITHIN SIXTY  DAYS,
 SUCH ARTIST MAY, WITHIN THIRTY DAYS OF THE EXPIRATION OF THE NEGOTIATION
 PERIOD, CONVERT THE ELECTION TO AN EARLY TERMINATION UNDER PARAGRAPH (A)
 OF THIS SUBDIVISION, WITH THE EFFECTIVE DATE OF TERMINATION BEING THIRTY
 DAYS AFTER SUCH CONVERSION NOTICE.
   3.  PRESERVATION  OF  ACCRUED RIGHTS. AN EARLY TERMINATION UNDER PARA-
 GRAPH (A) OF SUBDIVISION TWO OF THIS SECTION SHALL NOT AFFECT:  (A)  THE
 ARTIST'S  RIGHT TO RECEIVE ROYALTIES AND OTHER COMPENSATION ACCRUED FROM
 WORKS CREATED DURING THE ACTIVE TERM OF THE CONTRACT; (B) THE  COMPANY'S
 RIGHT  TO  CONTINUE EXPLOITING WORKS ALREADY COMMERCIALLY RELEASED PRIOR
 TO THE EFFECTIVE DATE OF TERMINATION, SUBJECT TO  THE  CONTINUING  OBLI-
 GATION  TO  ACCOUNT  AND PAY ROYALTIES; OR (C) ANY REVERSION RIGHT UNDER
 SECTION 36.09 OF THIS ARTICLE THAT HAS ACCRUED OR THAT ACCRUES FOLLOWING
 TERMINATION.
   4. NON-WAIVER. THE RIGHTS ESTABLISHED  BY  THIS  SECTION  MAY  NOT  BE
 WAIVED  OR CONDITIONED BY ANY PROVISION OF A PERSONAL SERVICES CONTRACT,
 INCLUDING ANY PROVISION REQUIRING THE ARTIST TO CONSENT  IN  ADVANCE  TO
 ANY  CHANGE  OF CONTROL OR EXECUTIVE DEPARTURE. AN ARTIST'S CONSENT TO A
 SPECIFIC TRANSACTION, GIVEN IN WRITING AFTER SUCH  ARTIST  HAS  RECEIVED
 NOTICE OF THE SPECIFIC TERMS OF SUCH TRANSACTION, SHALL NOT CONSTITUTE A
 WAIVER  OF  RIGHTS  WITH  RESPECT TO ANY SUBSEQUENT CHANGE OF CONTROL OR
 EXECUTIVE DEPARTURE.
   § 36.13. EFFECT OF NONCOMPLIANT PROVISIONS.  1.  ANY  PROVISION  OF  A
 PERSONAL  SERVICES  CONTRACT  THAT  PURPORTS  TO BIND AN ARTIST TO OBLI-
 GATIONS EXTENDING BEYOND THE SEVEN-YEAR PERIOD ESTABLISHED BY THIS ARTI-
 CLE, OR THAT PURPORTS TO WAIVE, LIMIT, OR CONDITION SUCH ARTIST'S  RIGHT
 TO  TERMINATE  SUCH OBLIGATIONS AFTER EXPIRATION OF SUCH PERIOD, IS VOID
 AND UNENFORCEABLE AS AGAINST SUCH ARTIST TO THE EXTENT  OF  SUCH  EXCESS
 AND SHALL BE SEVERED FROM THE REMAINDER OF SUCH CONTRACT.
   2.  ANY  PROVISION  THAT PURPORTS TO PENALIZE AN ARTIST FOR EXERCISING
 RIGHTS UNDER THIS  ARTICLE,  INCLUDING  PROVISIONS  IMPOSING  LIQUIDATED
 DAMAGES,  CLAWBACK  OBLIGATIONS,  ACCELERATED  REPAYMENT  OF ADVANCES OR
 FORFEITURE OF ACCRUED ROYALTIES, IS VOID AND UNENFORCEABLE.
   3. ANY ASSIGNMENT OR TRANSFER OF  RIGHTS  UNDER  A  PERSONAL  SERVICES
 CONTRACT  THAT  PURPORTS  TO  EXTEND  AN ARTIST'S OBLIGATIONS BEYOND THE
 SEVEN-YEAR PERIOD, WHETHER BY  RESETTING  THE  DURATION  CALCULATION  OR
 OTHERWISE,  IS  VOID  AND  UNENFORCEABLE  AS  AGAINST SUCH ARTIST TO THE
 EXTENT OF SUCH EXTENSION.
   4. (A) UPON TERMINATION OF A PERSONAL  SERVICES  CONTRACT  UNDER  THIS
 ARTICLE,  WHETHER  BY  EXPIRATION  OF THE SEVEN-YEAR PERIOD, EXERCISE OF
 REVERSION RIGHTS UNDER SECTION 36.09 OF THIS ARTICLE, EARLY  TERMINATION
 UNDER PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION 36.11 OF THIS ARTICLE,
 A. 11270                            8
 
 OR ANY OTHER MEANS, THE COMPANY'S RIGHT TO RECOUP ANY UNRECOUPED ADVANCE
 BALANCE  SHALL,  FOLLOWING  THE  TERMINATION  DATE, BE LIMITED SOLELY TO
 ROYALTIES ACCRUING FROM RECORDINGS CREATED AND DELIVERED BY  THE  ARTIST
 DURING  THE ACTIVE TERM OF THE TERMINATED PERSONAL SERVICES CONTRACT. NO
 ROYALTIES, EARNINGS,  OR  OTHER  COMPENSATION  DERIVED  FROM  ANY  OTHER
 SOURCE,   INCLUDING  RECORDINGS  CREATED  AFTER  THE  TERMINATION  DATE,
 CONTRACTS WITH ANY OTHER PARTY, OR ANY OTHER  PROFESSIONAL  ACTIVITY  OF
 THE  ARTIST,  SHALL  BE APPLIED, WITHHELD, REDIRECTED, OR OFFSET AGAINST
 ANY UNRECOUPED ADVANCE BALANCE ARISING  UNDER  THE  TERMINATED  PERSONAL
 SERVICES CONTRACT.  ROYALTIES ACCRUING FROM IN-TERM RECORDINGS AFTER THE
 TERMINATION  DATE SHALL CONTINUE TO BE APPLIED TO ANY UNRECOUPED BALANCE
 ONLY UNTIL SUCH BALANCE REACHES ZERO, AT WHICH POINT ALL SUCH  ROYALTIES
 SHALL  BE PAID TO THE ARTIST WITHOUT DEDUCTION. THE ARTIST MAY EXPRESSLY
 AUTHORIZE CONTINUED RECOUPMENT FROM OTHER SOURCES IN A WRITTEN AGREEMENT
 ENTERED INTO AFTER THE TERMINATION DATE AND NOT AS A  CONDITION  OF  ANY
 NEW CONTRACTUAL RELATIONSHIP.
   (B)  WITHIN  SIXTY  DAYS  OF  THE  TERMINATION DATE, THE COMPANY SHALL
 PROVIDE THE ARTIST WITH A WRITTEN ITEMIZED STATEMENT OF ACCOUNT  SETTING
 FORTH:  (I)  THE  TOTAL AMOUNT OF ADVANCES PAID TO SUCH ARTIST UNDER THE
 PERSONAL SERVICES CONTRACT; (II) THE TOTAL AMOUNT  RECOUPED  AS  OF  THE
 TERMINATION  DATE; (III) THE OUTSTANDING UNRECOUPED BALANCE, IF ANY; AND
 (IV) AN ITEMIZED ACCOUNTING OF ALL DEDUCTIONS APPLIED TO  SUCH  ARTIST'S
 ACCOUNT DURING THE TERM OF THE CONTRACT, INCLUDING THE CONTRACTUAL BASIS
 FOR EACH CATEGORY OF DEDUCTION. FAILURE TO PROVIDE SUCH STATEMENT WITHIN
 SIXTY  DAYS  SHALL  CREATE  A REBUTTABLE PRESUMPTION THAT THE UNRECOUPED
 BALANCE AS OF THE TERMINATION DATE IS ZERO.
   (C) ANY PROVISION OF A PERSONAL SERVICES  CONTRACT,  OR  ANY  SEPARATE
 AGREEMENT ENTERED INTO AS A CONDITION OF A NEW CONTRACTUAL RELATIONSHIP,
 PURPORTING  TO AUTHORIZE THE APPLICATION OF POST-TERMINATION EARNINGS TO
 A PRE-TERMINATION UNRECOUPED BALANCE IN CONTRAVENTION OF  PARAGRAPH  (A)
 OF THIS SUBDIVISION IS VOID AND UNENFORCEABLE.
   5. THIS ARTICLE SHALL BE CONSTRUED LIBERALLY IN FAVOR OF ARTISTS.
   §  36.15.  ADMINISTRATIVE ENFORCEMENT. 1. THE COMMISSIONER OF LABOR IS
 AUTHORIZED AND DIRECTED TO ENFORCE THE PROVISIONS OF  THIS  ARTICLE  AND
 SHALL HAVE THE AUTHORITY TO:
   (A)   RECEIVE   AND   INVESTIGATE  COMPLAINTS  FROM  ARTISTS  ALLEGING
 VIOLATIONS;
   (B) CONDUCT INVESTIGATIONS ON SUCH COMMISSIONER'S OWN INITIATIVE;
   (C) ISSUE SUBPOENAS REQUIRING ATTENDANCE OF WITNESSES  AND  PRODUCTION
 OF BOOKS AND RECORDS;
   (D)  ISSUE  COMPLIANCE  ORDERS REQUIRING COMPANIES TO CEASE VIOLATIONS
 AND TAKE AFFIRMATIVE REMEDIAL ACTION;
   (E) IMPOSE CIVIL PENALTIES OF UP TO TEN THOUSAND DOLLARS PER VIOLATION
 PER AFFECTED ARTIST, AND UP TO TWENTY-FIVE THOUSAND DOLLARS FOR REPEATED
 OR WILLFUL VIOLATIONS; AND
   (F) BRING CIVIL ACTIONS ON BEHALF OF ONE OR MORE  ARTISTS  TO  ENFORCE
 THIS ARTICLE OR RECOVER AMOUNTS DUE.
   2.  THE COMMISSIONER OF LABOR SHALL ADOPT RULES AND REGULATIONS NECES-
 SARY TO IMPLEMENT THIS ARTICLE AND SHALL PUBLISH  AN  ANNUAL  REPORT  ON
 ENFORCEMENT,  INCLUDING  NUMBER  OF  COMPLAINTS  RECEIVED, OUTCOMES, AND
 AMOUNTS RECOVERED.
   3. THE COMMISSIONER OF LABOR'S EXERCISE OR NON-EXERCISE OF ENFORCEMENT
 AUTHORITY SHALL NOT BE A PRECONDITION TO ANY  PRIVATE  RIGHT  OF  ACTION
 UNDER SECTION 36.17 OF THIS ARTICLE.
   4.  AN  ARTIST  WHO  FILES  A  COMPLAINT  UNDER  THIS ARTICLE SHALL BE
 PROTECTED FROM RETALIATION.  ANY  ADVERSE  ACTION  TAKEN  BY  A  COMPANY
 A. 11270                            9
 
 AGAINST AN ARTIST WITHIN ONE YEAR OF THE FILING OF A COMPLAINT CREATES A
 REBUTTABLE  PRESUMPTION  OF RETALIATION. A COMPANY FOUND TO HAVE RETALI-
 ATED SHALL BE LIABLE FOR TREBLE DAMAGES AND ATTORNEYS' FEES.
   § 36.17. PRIVATE RIGHT OF ACTION. 1. AN ARTIST WHOSE RIGHTS UNDER THIS
 ARTICLE  HAVE  BEEN VIOLATED, OR WHO IS THREATENED WITH ENFORCEMENT OF A
 PERSONAL SERVICES CONTRACT IN VIOLATION OF THIS  ARTICLE,  MAY  BRING  A
 CIVIL ACTION FOR:
   (A)  A DECLARATORY JUDGMENT THAT SUCH ARTIST'S OBLIGATIONS HAVE TERMI-
 NATED OR ARE UNENFORCEABLE UNDER THIS ARTICLE, OR THAT REVERSION  RIGHTS
 HAVE ACCRUED UNDER SECTION 36.09 OF THIS ARTICLE;
   (B)  INJUNCTIVE  RELIEF, INCLUDING RELIEF PROHIBITING THE COMPANY FROM
 INITIATING OR CONTINUING ANY LEGAL PROCEEDING TO  COMPEL  SUCH  ARTIST'S
 PERFORMANCE  UNDER  AN AGREEMENT THAT HAS TERMINATED UNDER THIS ARTICLE,
 FROM EXPLOITING WORKS AS TO WHICH REVERSION RIGHTS HAVE ACCRUED, OR FROM
 RETALIATING AGAINST SUCH ARTIST FOR EXERCISING RIGHTS UNDER  THIS  ARTI-
 CLE;
   (C)  COMPENSATORY  DAMAGES,  INCLUDING  DAMAGES  FOR LOST PROFESSIONAL
 OPPORTUNITIES, COERCED RENEGOTIATION, THE VALUE  OF  RIGHTS  SURRENDERED
 UNDER DURESS, AND THE VALUE OF SERVICES RENDERED AFTER EXPIRATION OF THE
 SEVEN-YEAR PERIOD;
   (D)  DISGORGEMENT  OF  PROFITS  DERIVED  FROM  SUCH  ARTIST'S SERVICES
 RENDERED AFTER EXPIRATION OF THE SEVEN-YEAR PERIOD, OR FROM EXPLOITATION
 OF WORKS AS TO WHICH REVERSION RIGHTS HAVE ACCRUED UNDER  SECTION  36.09
 OF THIS ARTICLE; AND
   (E)  ATTORNEYS'  FEES  AND  COSTS, CALCULATED AT THE PREVAILING MARKET
 RATE FOR COMPARABLE LEGAL SERVICES WITHOUT REDUCTION ON ACCOUNT  OF  THE
 RATIO  OF  FEES TO DAMAGES RECOVERED, WITHOUT PRESUMPTION AGAINST A FULL
 LODESTAR AWARD, AND WITH CONSIDERATION OF THE CONTINGENT NATURE  OF  THE
 REPRESENTATION WHERE APPLICABLE.
   2.  IN  ANY ACTION BROUGHT BY A COMPANY TO ENFORCE A PERSONAL SERVICES
 CONTRACT, THE ARTIST MAY ASSERT THIS ARTICLE AS A  COMPLETE  DEFENSE  TO
 ANY  CLAIM FOR SPECIFIC PERFORMANCE, INJUNCTIVE RELIEF, OR OTHER EQUITA-
 BLE REMEDY COMPELLING SUCH ARTIST'S CONTINUED SERVICE.
   3. THE REMEDIES PROVIDED BY THIS ARTICLE ARE CUMULATIVE AND SHALL  NOT
 LIMIT  ANY OTHER REMEDY AVAILABLE TO AN ARTIST UNDER ANY OTHER PROVISION
 OF LAW.
   4. AN ACTION UNDER THIS ARTICLE SHALL BE COMMENCED WITHIN  FIVE  YEARS
 OF  THE  DATE  THE  ARTIST  KNEW  OR REASONABLY SHOULD HAVE KNOWN OF THE
 VIOLATION. THE LIMITATIONS PERIOD SHALL BE TOLLED: (A)  FOR  ANY  PERIOD
 DURING  WHICH  THE  COMPANY'S  CONDUCT,  INCLUDING  LITIGATION  THREATS,
 INDUCED THE ARTIST TO REFRAIN FROM ASSERTING RIGHTS UNDER THIS  ARTICLE;
 AND  (B) FOR ANY PERIOD DURING WHICH A NON-DISCLOSURE OR CONFIDENTIALITY
 OBLIGATION PREVENTED THE ARTIST FROM DISCLOSING THE FACTS GIVING RISE TO
 THE CLAIM.
   5. NO PROVISION OF A PERSONAL SERVICES CONTRACT PURPORTING TO  SHORTEN
 THE LIMITATIONS PERIOD FOR CLAIMS UNDER THIS ARTICLE OR TO APPLY THE LAW
 OF ANY JURISDICTION OTHER THAN NEW YORK TO SUCH CLAIMS SHALL BE ENFORCE-
 ABLE  AGAINST  AN ARTIST DOMICILED IN OR RENDERING A SUBSTANTIAL PORTION
 OF SERVICES IN THIS STATE.   THE  COMMISSIONER  OF  LABOR,  WHEN  ACTING
 PURSUANT  TO  SECTION 36.15 OF THIS ARTICLE, IS NOT SUBJECT TO ANY ARBI-
 TRATION CLAUSE CONTAINED IN A PERSONAL SERVICES CONTRACT AND  MAY  BRING
 ENFORCEMENT ACTIONS IN ANY COURT OF COMPETENT JURISDICTION REGARDLESS OF
 ANY SUCH CLAUSE.
   § 36.19. NON-WAIVER. 1. THE RIGHTS AND PROTECTIONS ESTABLISHED BY THIS
 ARTICLE   ARE  NON-WAIVABLE.  NO  PROVISION  OF  ANY  PERSONAL  SERVICES
 CONTRACT, AND NO  SEPARATE  AGREEMENT,  RELEASE,  OR  COVENANT,  WHETHER
 A. 11270                           10
 
 ENTERED  INTO  BEFORE OR AFTER COMMENCEMENT OF SERVICES, SHALL BE EFFEC-
 TIVE TO WAIVE, LIMIT, DIMINISH, OR CONDITION  ANY  RIGHT  OR  PROTECTION
 AFFORDED TO AN ARTIST UNDER THIS ARTICLE.
   2.  NO CHOICE-OF-LAW PROVISION SHALL BE EFFECTIVE TO DEPRIVE AN ARTIST
 DOMICILED IN THIS  STATE,  OR  WHO  RENDERS  A  SUBSTANTIAL  PORTION  OF
 SERVICES IN THIS STATE, OF THE PROTECTIONS OF THIS ARTICLE.
   3. NOTHING IN THIS ARTICLE PROHIBITS THE ARBITRATION OF CLAIMS ARISING
 UNDER  THIS  ARTICLE.  ANY  ARBITRATION  CLAUSE  IN  A PERSONAL SERVICES
 CONTRACT IS SUBJECT TO NEW YORK'S GENERAL LAW  OF  UNCONSCIONABILITY.  A
 COMPANY'S   MATERIAL   FINANCIAL  INTEREST  IN,  OR  ONGOING  COMMERCIAL
 RELATIONSHIP WITH, A DESIGNATED ARBITRATION  FORUM  CONSTITUTES  EVIDENT
 PARTIALITY  WITHIN  THE  MEANING  OF  9 U.S.C. § 10(A)(2), AND ANY AWARD
 ISSUED BY SUCH A FORUM SHALL BE SUBJECT TO VACATUR ON THAT GROUND.
   4. THE FACT THAT AN ARTIST RECEIVED LEGAL COUNSEL OR  WAS  REPRESENTED
 BY  AN AGENT, MANAGER, OR ATTORNEY IN CONNECTION WITH THE NEGOTIATION OF
 A PERSONAL SERVICES CONTRACT IS NOT A WAIVER OF  ANY  RIGHT  UNDER  THIS
 ARTICLE AND IS NOT A DEFENSE TO ANY ACTION BROUGHT UNDER THIS ARTICLE.
   §  36.21.  RELATIONSHIP  TO FEDERAL LAW. 1. COPYRIGHT PREEMPTION. THIS
 ARTICLE GOVERNS THE COMMERCIAL RELATIONSHIP BETWEEN ARTISTS  AND  COMPA-
 NIES AS A MATTER OF LABOR AND CONTRACT LAW AND DOES NOT CREATE ANY RIGHT
 EQUIVALENT TO THE EXCLUSIVE RIGHTS WITHIN THE GENERAL SCOPE OF COPYRIGHT
 AS  SPECIFIED  IN  17  U.S.C.  §  106.  WHERE A CLAIM UNDER THIS ARTICLE
 REQUIRES RESOLUTION OF A QUESTION OF COPYRIGHT  OWNERSHIP  OR  INFRINGE-
 MENT,  SUCH  QUESTION  SHALL  BE  RESOLVED IN ACCORDANCE WITH APPLICABLE
 FEDERAL COPYRIGHT LAW, AND THE STATE LAW CLAIM SHALL PROCEED ONLY TO THE
 EXTENT IT RAISES RIGHTS QUALITATIVELY DIFFERENT FROM THOSE PROTECTED  BY
 THE COPYRIGHT ACT.
   2. FEDERAL LABOR LAW. WHERE A CLAIM UNDER THIS ARTICLE IS PREEMPTED BY
 THE  NATIONAL LABOR RELATIONS ACT, THE AFFECTED CLAIM SHALL BE STAYED OR
 DISMISSED WITHOUT PREJUDICE TO RENEWAL IN THE APPROPRIATE FEDERAL FORUM.
 THE DETERMINATION OF WHETHER A CLAIM IS PREEMPTED SHALL BE MADE  BY  THE
 COURT  BEFORE  WHICH THE ACTION IS PENDING, WITHOUT PRESUMPTION IN FAVOR
 OF PREEMPTION.
   § 36.23. TRANSITIONAL PROVISIONS. 1. ANY RENEWAL  OR  EXTENSION  OF  A
 PERSONAL  SERVICES  CONTRACT OCCURRING ON OR AFTER THE EFFECTIVE DATE OF
 THIS ARTICLE SHALL BE  TREATED  AS  A  NEW  PERSONAL  SERVICES  CONTRACT
 SUBJECT  TO  THE  PROVISIONS  OF  THIS  ARTICLE  REGARDLESS  OF WHEN THE
 ORIGINAL PERSONAL SERVICES CONTRACT WAS ENTERED INTO, AND THE SEVEN-YEAR
 PERIOD UNDER SECTION 36.07 OF THIS ARTICLE SHALL BE CALCULATED FROM  THE
 DATE THE ARTIST FIRST RENDERS SERVICES UNDER SUCH RENEWAL OR EXTENSION.
   2. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO REVIVE ANY OBLIGATION
 UNDER  A  PERSONAL  SERVICES  CONTRACT  THAT TERMINATED BY ITS OWN TERMS
 PRIOR TO THE EFFECTIVE DATE OF THIS ARTICLE.
   § 36.25. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE, OR THE APPLI-
 CATION THEREOF TO ANY PERSON OR CIRCUMSTANCE, IS HELD INVALID OR  UNCON-
 STITUTIONAL,  SUCH  INVALIDITY  OR  UNCONSTITUTIONALITY SHALL NOT AFFECT
 OTHER PROVISIONS OR APPLICATIONS OF  THIS  ARTICLE  THAT  CAN  BE  GIVEN
 EFFECT WITHOUT THE INVALID OR UNCONSTITUTIONAL PROVISION OR APPLICATION,
 AND TO SUCH END THE PROVISIONS OF THIS ARTICLE SHALL BE SEVERABLE.
   §  4. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law and shall apply to  all
 personal  services  contracts  entered  into,  renewed or extended on or
 after such date.