Assembly Bill No. 288–Assemblymen Atkinson, Oceguera, Ohrenschall, Koivisto, Knecht, Anderson, Andonov, Arberry, Buckley, Carpenter, Chowning, Claborn, Collins, Conklin, Giunchigliani, Goicoechea, Griffin, Hardy, Horne, Leslie, Manendo, McClain, McCleary, Parks, Perkins, Pierce, Sherer, Weber and Williams

 

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AN ACT relating to minors; providing for the judicial approval of certain contracts for the artistic, creative or athletic services or intellectual property of minors; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

    Section 1. Chapter 609 of NRS is hereby amended by adding

thereto the provisions set forth as sections 2 to 18, inclusive, of this

act.

    Sec. 2. As used in sections 2 to 18, inclusive, of this act,

unless the context otherwise requires, the words and terms defined

in sections 3 to 9, inclusive, of this act have the meanings ascribed

to them in those sections.

    Sec. 3.  1.  “Contract” means a proposed contract pursuant

to which:

    (a) A minor agrees to render artistic or creative services,

directly or through a third party.

    (b) A minor agrees to render services as a participant,

competitor or player in a sport.

    (c) A person agrees with a minor to purchase, sell, lease,

license, transfer, exchange or otherwise dispose of:

        (1) Literary, musical, artistic or dramatic properties, either

tangible or intangible;

        (2) The use of the name, voice, signature, photograph or

likeness of the minor; or

        (3) Radio broadcasting, television or motion picture rights

for the performance of the minor, or for the story of or incidents

in the life of the minor, either tangible or intangible.

    2.  As used in this section:

    (a) “Artistic or creative services” includes, without limitation,

services as an actor, actress, extra, background performer, dancer,

musician, comedian, singer, stunt person, voiceover artist,

songwriter, musical producer, musical arranger, writer, director,

producer, production executive, choreographer, composer,

conductor, designer or other performer or entertainer.

    (b) “Third party” includes, without limitation, a personal

services corporation or loan-out company.

    Sec. 4.  “Court” means:

    1.  In a judicial district that has established a business court

by court rule, the business court.

    2.  In a judicial district that has not established a business

court by court rule, the district court.

    Sec. 5.  “Interested party” includes:

    1.  A person who is a party to a contract; and

    2.  The parent, custodian or guardian of a minor who is a

party to a contract, if the parent, custodian or guardian is

authorized to act on behalf of the minor.

    Sec. 6.  “Minor” means a person who:

    1.  Is less than 18 years of age;

    2.  Has not been declared emancipated pursuant to NRS

129.080 to 129.140, inclusive; and

    3.  Resides in this state, or will be rendering services in this

state pursuant to a contract.

    Sec. 7.  “Net earnings” means the gross earnings received for

services rendered by a minor during the term of a contract, less:

    1.  All sums required by law to be paid as taxes to any federal,

state or local government with respect to or by reason of such

earnings;

    2.  Reasonable sums to be expended for the support, care,

education, training and professional management of the minor;

and

    3.  Reasonable fees and expenses to be paid in connection

with the contract and its performance.

    Sec. 8.  “Petition” means a petition for approval of a contract

filed pursuant to section 10 of this act.

    Sec. 9.  “Petitioner” means a person who files a petition for

approval of a contract pursuant to section 10 of this act.

    Sec. 10. 1.  An interested party may petition the court for

approval of a contract by filing a written petition for approval of

the contract in the court of the county in which:

    (a) The minor resides;

    (b) The minor will be rendering services pursuant to the

contract; or

    (c) A party to the contract has its principal office for the

transaction of business.

    2.  The petition must be verified by the petitioner and must

contain the following items:

    (a) The full name, date of birth, place of birth and physical

address of the minor.

    (b) The full name and physical address of any living parent of

the minor.

    (c) The full name and physical address of any person who has

care and custody of the minor.

    (d) Whether the minor has, at any time, had a guardian

appointed for him by a court in any jurisdiction or pursuant to a

will or deed.

    (e) If the minor is not a resident of this state, the location in

this state at which the minor will be rendering services pursuant to

the contract.

    (f) A summary of the nature and provisions of the contract.

    (g) A schedule showing the estimated:

        (1) Gross earnings of the minor pursuant to the contract;

        (2) Deductions from the earnings of the minor required by

law;

        (3) Reasonable fees and expenses to be paid in connection

with the contract and its performance;

        (4) Reasonable sums to be expended for the support, care,

education, training and professional management of the minor;

and

        (5) Net earnings of the minor pursuant to the contract.

    (h) Whether any person is entitled to receive any portion of the

earnings of the minor and a detailed description of the financial

circumstances of any such person.

    (i) A statement acknowledging that the minor and a parent,

custodian or guardian of the minor consent to an order of the

court setting aside a portion of the net earnings of the minor for

the benefit of the minor.

    (j) The relationship of the petitioner to the minor and the

interest of the petitioner in the contract or in the performance of

the minor pursuant to the contract, if any.

    (k) A statement acknowledging that the term of the contract

during which the minor is to render services, if applicable, may

not extend beyond 5 years from the date of approval of the

contract by the court.

    (l) A statement describing any other covenants or conditions

contained in the contract which extend beyond 5 years from the

date of approval of the contract by the court, or a statement

indicating that the contract contains no such covenants or

conditions.

    (m) Any other facts which demonstrate that the terms of the

contract are:

        (1) Objectively fair and reasonable;

        (2) Consistent with the standards of the industry to which

the object of the contract pertains;

        (3) Consistent and in compliance with the laws of this state,

including, without limitation, the laws governing the conduct and

employment of minors; and

        (4) In the best interests of the minor.

    (n) A statement acknowledging that the minor and a parent,

custodian or guardian of the minor have had the opportunity to

consult with an attorney who is experienced in the laws and

practices pertaining to the applicable industry and consent to the

approval of the contract by the court.

    3.  A copy of the contract must be attached to the petition.

    4.  If a new petition is filed following the denial of a previous

petition pursuant to paragraph (c) of subsection 2 of section 12 of

this act, the following must be attached to the petition:

    (a) A copy of any previous petition that was denied by the court

and copies of any exhibits thereto; and

    (b) A certified copy of the transcribed record of any hearing

conducted concerning any previous petition that was denied by the

court.

    Sec. 11. 1.  Upon receipt of a petition, the court may

schedule a hearing to determine whether the petition should be

granted.

    2.  At any hearing concerning the petition:

    (a) The minor who is the subject of the petition shall

personally attend.

    (b) The court may hear and consider all competent, material

and relevant evidence helpful in determining whether the petition

should be granted, including, without limitation, oral and written

testimony and reports, and such evidence may be received by the

court and relied upon to the extent of its probative value.

    Sec. 12.  1.  In determining whether to grant a petition, the

court shall consider whether the terms, conditions and covenants

of the contract are:

    (a) Objectively fair and reasonable;

    (b) Consistent with the standards of the industry to which the

object of the contract pertains;

    (c) Consistent and in compliance with the laws of this state,

including, without limitation, the laws governing the conduct and

employment of minors; and

    (d) In the best interests of the minor.

    2.  After considering the petition, the court shall issue an

order:

    (a) Granting the petition.

    (b) Granting the petition upon the condition that the parties

modify the terms of the contract in the manner set forth in the

order. If the parties modify the terms of the contract in the manner

set forth in the order, the petition shall be deemed granted on the

date that the contract, as modified, is executed by the parties.

    (c) Denying the petition. If the court issues an order denying

the petition, an interested party may file a new petition for

approval of the contract if the parties modify the terms of the

contract.

    3.  The granting of a petition pursuant to this section:

    (a) Extends to the entire contract and all of its terms and

provisions, including, without limitation, any optional or

conditional provisions contained in the contract for extension,

prolongation or termination of the term of the contract.

    (b) Must not be construed to constitute an emancipation of the

minor.

    Sec. 13.  1.  If the court issues an order granting a petition,

the court shall immediately issue an order appointing a special

guardian to receive and hold the specified amount or percentage

of the net earnings of the minor to be set aside for the benefit of

the minor pursuant to section 14 of this act.

    2.  The petitioner or a parent, custodian or guardian of the

minor is not ineligible to be appointed as a special guardian

pursuant to this section solely because of his interest, so long as

that interest is fully disclosed to the court. A disclosure pursuant to

this subsection must include, without limitation, whether the

person has an interest:

    (a) In any part of the earnings of the minor pursuant to the

contract;

    (b) As a party to the contract; or

    (c) As an interested party to the contract or to the performance

of the minor pursuant to the contract.

    3.  The appointment of a special guardian pursuant to this

section expires on the earliest of the following dates:

    (a) The date on which the contract is terminated.

    (b) The date on which the minor is emancipated.

    (c) The date on which the minor reaches the age of majority.

    Sec. 14. 1.  At the time of issuing an order appointing a

special guardian pursuant to section 13 of this act, the court shall

fix and include in the order the amount or percentage of the net

earnings of the minor to be set aside for the benefit of the minor

that the court determines is in the best interests of the minor. The

amount or percentage of the net earnings to be set aside must not

be less than 15 percent or more than 50 percent of the net

earnings.

    2.  Any time following the issuance of an order fixing or

modifying the amount or percentage of the net earnings to be set

aside pursuant to this section:

    (a) Upon the request of the minor, the special guardian shall

move the court for an order modifying the amount or percentage

of the net earnings to be set aside.

    (b) Upon his own initiative, the special guardian may move the

court for an order modifying the amount or percentage of the net

earnings to be set aside.

    3.  The court may grant a motion and modify the amount or

percentage of the net earnings to be set aside if the court finds

that, because of changed circumstances, modification of the

amount or percentage of the net earnings to be set aside is in the

best interests of the minor.

    4.  Upon termination of a contract approved by the court

pursuant to sections 2 to 18, inclusive, of this act, the special

guardian shall immediately transfer all remaining money that has

been received and held for the benefit of the minor, together with

an accounting of all money that has been collected, disbursed and

expended, to:

    (a) The guardian of the property of the minor, if the minor has

not reached the age of majority and has not been emancipated.

    (b) The minor, if the minor has reached the age of majority or

has been emancipated.

    Sec. 15. (Deleted by amendment.)

    Sec. 16.  If a contract that is otherwise valid is approved by

the court by the granting of a petition, a minor may not, during his

minority, upon reaching the age of majority or upon his

emancipation:

    1.  Disaffirm the contract on the ground that the contract was

entered into during his minority;

    2.  Rescind, avoid or repudiate the contract because of his

minority;

    3.  Rescind, avoid or repudiate any exercise of a right or

privilege pursuant to the contract because of his minority; or

    4.  Assert that a parent, custodian or guardian lacked

authority to make the contract on his behalf.

    Sec. 17.  The determination of whether to grant or deny a

petition or to grant or deny a motion to modify the amount or

percentage of the net earnings of a minor to be set aside is a

matter solely within the discretion of the court and is not subject to

appeal.

    Sec. 18.  The provisions of sections 2 to 18, inclusive, of this

act do not:

    1.  Exempt any person from compliance with any other law

concerning licenses, consents or authorizations required for any

conduct, employment, use or exhibition of a minor in this state; or

    2.  Limit, in any manner, the discretion of a licensing

authority or other persons charged with the administration of

licensing requirements.

    Sec. 19.  (Deleted by amendment.)

 

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