Minnesota Session Laws - 1984, Regular Session

  

                         Laws of Minnesota 1984 

                        CHAPTER 587-H.F.No. 1257 
           An act relating to occupations and professions; 
          regulating entertainment agencies; providing 
          penalties; proposing new law coded as Minnesota 
          Statutes, chapter 184A. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [184A.01] [DEFINITIONS.] 
    Subdivision 1.  [TERMS DEFINED.] For the purposes of 
sections 2 to 20 and unless the language or context clearly 
indicates that a different meaning is intended, the following 
words, terms, and phrases have the meanings given them in this 
section.  
    Subd. 2.  [ARTIST.] "Artist" refers to musical artists, 
musical organizations, musical directors, composers, lyricists, 
and arrangers.  
    Subd. 3.  [DEPARTMENT.] "Department" means the department 
of labor and industry.  
    Subd. 4.  [ENGAGEMENT.] "Engagement" means an engagement or 
employment of a person as a musician or musical artist.  
    Subd. 5.  [ENTERTAINMENT AGENCY.] "Entertainment agency" 
means a person or persons who engage in the occupation of 
procuring, offering, promising, or attempting to procure 
employment or engagements under written contract for three or 
more artists or groups of artists at any one time, or who have a 
written contract or continuing verbal agreement with an 
establishment or an individual to provide artists or groups of 
artists for one or more engagements.  Entertainment agencies 
may, in addition, counsel or direct artists in the development 
of their professional careers.  
    Subd. 6.  [FEE.] "Fee" means money or other valuable 
consideration paid or promised to be paid for services rendered 
or to be rendered by a person conducting the business of an 
entertainment agency under this act.  
    Subd. 7.  [LICENSE.] "License" means a license issued by 
the department of labor and industry to carry on the business of 
an entertainment agency under this act.  
     Subd. 8.  [LICENSEE.] "Licensee" means an entertainment 
agency which holds a valid, unrevoked, and unforfeited license 
under this act.  
    Subd. 9.  [PERSON.] "Person" includes an individual, firm, 
corporation, partnership, or association.  
    Sec. 2.  [184A.02] [LICENSE REQUIREMENT.] 
    No person shall engage in or carry on the occupation of an 
entertainment agency without procuring a license from the 
department of labor and industry for each agency location.  This 
license shall be posted in a conspicuous place in the office of 
the licensee.  
    Sec. 3.  [184A.03] [EXISTING AGENCIES.] 
    Entertainment agents who are actually engaged in or acting 
as entertainment agents or counselors and members, shareholders, 
officers, and directors of a firm, partnership, association, or 
corporation actively engaged in the business of an entertainment 
agency on the effective date of this act shall be deemed to 
comply with its provisions provided they shall obtain a license 
as provided by sections 4 to 10 within a period of six months 
from the effective date of this act.  
    Sec. 4.  [184A.04] [LICENSE APPLICATIONS.] 
    Subdivision 1.  [CONTENTS.] Applicants for an entertainment 
agent's license or renewal shall file with the department a 
written application in a form prescribed by the department 
stating:  
     (a) the name and address of the applicant;  
    (b) the street and number of the building or place where 
the business of the entertainment agency is to be conducted;  
    (c) the name of the person who is to have the general 
management of the office;  
    (d) the name under which the business of the office is to 
be carried on;  
    (e) whether or not the applicant has a financial interest 
in another business of a similar nature and, if so, where;  
    (f) the business or occupation of the applicant for at 
least two years immediately preceding the date of application;  
     (g) if the applicant is other than a corporation, the names 
and addresses of all persons, except bona fide employees on 
stated salaries, financially interested, either as partners, 
associates, or profit sharers, in the operation of the 
entertainment agency in question, together with the amount of 
their respective interests; and 
     (h) if the applicant is a corporation, the corporate name, 
the names, residential addresses, and telephone numbers of 
officers of the corporation, and the names and addresses of 
persons having a financial interest of ten percent or more in 
the business, and the percentage of financial interest owned by 
these persons.  
    Subd. 2.  [SIGNATURES.] The application shall be signed and 
sworn to before a notary public by the applicant or, if a 
partnership, by all of the partners or, if a corporation, by the 
president and secretary.  
    Subd. 3.  [AFFIDAVITS.] The application must be accompanied 
by affidavits of at least two reputable persons, neither of whom 
is related to the applicant.  
     Sec. 5.  [184A.05] [FEE SCHEDULES.] 
    Applicants for a license to engage in the business of an 
entertainment agent shall, at the time of making application, 
file with the department a schedule of fees to be charged and 
collected in the conduct of this occupation, together with rules 
and regulations that may affect the fees charged or to be 
charged for service.  Changes in the schedule may be made from 
time to time, but no change shall become effective until seven 
days after the date of its filing with the department.  It shall 
be unlawful for an entertainment agency to charge, demand, 
collect, or receive a greater compensation for service performed 
than is specified in the schedule filed with the department.  
    Sec. 6.  [184A.06] [CONTRACT FORM.] 
    Subdivision 1.  [DEPARTMENT APPROVAL.] Entertainment 
agencies shall submit to the department a form or forms of 
contract to be utilized in entering into written contracts with 
artists for the employment of the services of the entertainment 
agency by the artists and the contract to be utilized for 
employment engagements secured by the agency for the artist. 
Approval by the department of the proposed contract form shall 
not be withheld unless the contract is unfair, unjust, or 
oppressive to the artist.  
    Subd. 2.  [ARBITRATION.] Contract forms shall contain a 
provision setting forth a procedure for resolution of disputes 
before an arbitrator mutually agreed upon by the parties.  The 
arbitrator's decision shall be final and binding upon the 
parties.  
    Subd. 3.  [NOTIFICATION OF LICENSE.] There shall be printed 
on the face of the contract in prominent type the following: 
"This entertainment agency is licensed by the department of 
labor and industry of the state of Minnesota."  
     Sec. 7.  [184A.07] [INVESTIGATION.] 
     Upon receipt of an application for a license, the 
department may cause an investigation to be made as to the 
character and responsibility of the applicant, and of the 
premises designated in the application as the place in which it 
is proposed to conduct the business of the entertainment agency. 
     Sec. 8.  [184A.08] [TERM OF LICENSE; EXPIRATION.] 
     The license when first issued shall run to the next 
birthday of the applicant.  The license shall then be renewed 
within the 30 days preceding the licensee's birthday and shall 
run from birthday to birthday.  In case the applicant is a 
partnership, the license shall be renewed within the 30 days 
preceding the birthday of the oldest partner.  If the applicant 
is a corporation, the license shall be renewed within the 30 
days preceding the anniversary of the date the corporation was 
lawfully formed.  Renewal shall require the filing of an 
application for renewal, a renewal bond, and the payment of the 
annual license fee, but the department may require that a new 
application or a new bond be submitted.  
    Sec. 9.  [184A.09] [LICENSE FEES.] 
     Before a license shall be granted to an applicant, the 
applicant shall pay a filing fee of $25 and a license fee of 
$200.  
     An application for consent to transfer or assign a license 
shall be accompanied by a $25 filing fee.  
     Sec. 10.  [184A.10] [BONDS.] 
     Applications for an entertainment agency license shall be 
accompanied by a bond in the penal sum of $10,000 with one or 
more sureties or a duly authorized surety company to be approved 
by the department and filed in the office of the secretary of 
state, conditioned that the entertainment agency and each 
member, shareholder, director, or officer of a firm, 
partnership, corporation, or association operating as an 
entertainment agency will conform to and not violate sections 2 
to 19 or violate the covenants of a contract made by an 
entertainment agent in the conduct of business.  Action on this 
bond may be brought by, and prosecuted in the name of, a person 
damaged by a breach of a condition of the bond.  Successive 
actions may be maintained.  
    The secretary of state shall be paid a filing fee of $5 per 
bond in addition to the fees outlined in section 9.  
    Sec. 11.  [184A.11] [TRANSFER.] 
     No licensee shall sell, transfer, or give away an interest 
in, or the right to participate in the profits of, the 
entertainment agency without the written consent of the 
department.  Consent may be withheld for any reason for which an 
original application for a license might have been rejected if 
the person in question had been mentioned in it.  
     Sec. 12.  [184A.12] [ISSUANCE; REFUSAL; REVOCATION; 
SUSPENSION.] 
    The department shall issue a license as an entertainment 
agent, to a person who qualifies for the license under the terms 
of sections 4 to 10.  The department may refuse to issue an 
entertainment agency license when, after due investigation, the 
department finds that the character of the applicant makes him 
unfit to be an entertainment agent, or when the premises for 
conducting the business of an entertainment agent is found upon 
investigation to be unfit for this use.  No agency license shall 
be issued to a person, firm, corporation, or association that 
has, within the past three years, been convicted of fraud or 
felony.  No license shall be issued to an attorney whose license 
to practice law has been suspended or revoked, for a period of 
three years after the date of the suspension or revocation.  The 
department may refuse to issue a license to a person or may 
suspend or revoke the license of a entertainment agent when it 
finds that any of the following conditions exist:  
     (a) the entertainment agent has violated a condition of the 
bond required by section 10;  
     (b) the person or entertainment agent has personally 
engaged in a fraudulent, deceptive, or dishonest practice;  
     (c) the person or entertainment agent has violated any 
provisions of sections 2 to 19; or 
    (d) the person or entertainment agent has been legally 
adjudicated incompetent and has not been restored to capacity.  
    This section shall not be construed to relieve a person 
from civil liability or from criminal prosecution under the laws 
of this state.  A violation of this section shall be treated as 
a violation of section 325F.69.  
    Sec. 13.  [184A.13] [PROCEDURE FOR SUSPENSION OR 
REVOCATION.] 
    Subdivision 1.  [INCOMPETENCY.] Upon an adjudication of 
incompetency, revocation shall be automatic and shall be 
permanent except that in the event of restoration to capacity a 
license may be reissued to such person on payment of all fees.  
    Subd. 2.  [OTHER CASES.] In all other cases the department 
may not refuse to issue a license or suspend or revoke a license 
unless it furnishes the person or entertainment agent with a 
written statement of the charges against him and affords him an 
opportunity to be heard on the charges.  He shall be given at 
least ten days' written notice of the date and time of the 
hearing.  The notice shall be sent by certified mail to the 
address of the person as shown on his application for license or 
it may be served in the manner in which a summons is served in 
civil cases commenced in the district court.  
     Subd. 3.  [HEARING.] At the hearing, the person or 
entertainment agent whose license application or continuance is 
in question shall have the right to appear personally and be 
represented by counsel and to cross-examine witnesses against 
him and to produce evidence and witnesses in his defense, and 
shall have the right to have witnesses subpoenaed, which 
subpoena shall be issued by the commissioner.  
     Sec. 14.  [184A.14] [APPEAL TO DISTRICT COURT.] 
    If the department refuses to grant a license, or suspends 
or revokes a license that has been granted, the applicant shall 
have the right of appeal to the district court of the county of 
the applicant's residence.  If the applicant is not a resident 
of the state, he may appeal to the district court for Ramsey 
county.  The court shall advance cases on their calendars for 
early disposition.  In counties having continuous sessions of 
court, the cases shall be heard within 20 days after appeal is 
perfected.  Appeal shall be perfected by the service of a 
written notice of appeal upon the commissioner of labor and 
industry within 60 days after notice to the applicant of the 
department's action.  
     Sec. 15.  [184A.15] [RECORDS.] 
     Subdivision 1.  [DEPARTMENT RECORDS.] The department shall 
keep a record of its proceedings which shall be open to the 
public for inspection at reasonable times, and a register of 
applicants for licenses.  Records shall include the name and 
address of the applicants, the date of application, place of 
business, place of residence, whether the applicant was rejected 
or a license granted, and the date the license was granted.  
    Subd. 2.  [ENTERTAINMENT AGENCY RECORDS.] Entertainment 
agencies shall keep records approved by the department in which 
shall be entered:  
     (a) the name and address of each artist employing the 
agency;  
    (b) the amount of fee received from the artist;  
    (c) the employment in which the artist is engaged at the 
time of employing the agency, and the amount of the artist's 
compensation in the employment, if any; and 
    (d) the employments subsequently secured by the artist 
during the term of the contract between the artist and the 
entertainment agency, and the amount of compensation received by 
the artist.  
     Sec. 16.  [184A.16] [POWERS AND DUTIES OF THE DEPARTMENT.] 
     It is the duty of the department to administer the 
provisions of this act.  The department shall have the power to 
compel the attendance of witnesses by the issuance of subpoenas, 
to administer oaths, and to take testimony and proofs concerning 
matters within its jurisdiction.  The department shall affix an 
official seal to certificates or licenses granted and shall make 
rules not inconsistent with law needed to perform its duties.  
    Sec. 17.  [184A.17] [SUPERVISORY AND INVESTIGATIVE 
AUTHORITY.] 
    The department shall have supervisory and investigative 
authority over entertainment agents.  The department shall have 
the right to examine only those records required to be kept by 
this act.  
    Sec. 18.  [184A.18] [AGENCY CONDUCT.] 
    Subdivision 1.  [UNLAWFUL EMPLOYMENT.] No entertainment 
agent shall place or assist in placing a person in unlawful 
employment.  
    Subd. 2.  [STRIKE OR LOCKOUT.] No entertainment agent shall 
fail to state in an advertisement, proposal, or contract for 
employment, that there is a strike or lockout at the place of 
proposed employment if he has knowledge that this condition 
exists.  
    Subd. 3.  [REPAYMENT.] In the event that an entertainment 
agency shall collect from an artist a fee or expenses for 
obtaining employment for the artist, and the artist shall fail 
to procure the employment, or the artist shall fail to be paid 
for the employment, the entertainment agency shall, upon demand, 
repay to the artist the full amount of the fee and expenses 
actually collected.  
    Subd. 4.  [ACTIONS.] Actions brought in any court against a 
licensee may be brought in the name of the person damaged upon 
the bond deposited with the state by the licensee, and may be 
transferred and assigned as other claims for damages.  The 
amount of damages claimed by plaintiff, and not the penalty 
named in the bond, determines the jurisdiction of the court in 
which the action is brought.  
    Subd. 5.  [SERVICE ON DEPARTED LICENSEE.] When a licensee 
has departed from the state with intent to defraud creditors or 
to avoid service of summons in an action brought under this act, 
service shall be made upon the surety as prescribed in the rules 
of civil procedure.  A copy of the summons shall be mailed to 
the licensee at the last known post office address of his 
residence and also at the place where the business of the 
entertainment agency was conducted as shown by the records of 
the department. Service is complete as to the licensee, after 
mailing, at the expiration of the time prescribed by the rules 
of civil procedure for service of summons in the particular 
court in which suit is brought.  
    Sec. 19.  [184A.19] [ARBITRATION PURSUANT TO CONTRACT 
CLAUSE.] 
    A provision in a contract providing for the decision by 
arbitration of a controversy under the contract or as to its 
existence, validity, construction, performance, nonperformance, 
breach, operation, continuance, or termination, shall be valid 
if the provision is contained in a contract between an 
entertainment agency and a person for whom the agency under the 
contract undertakes to endeavor to secure employment.  
    Sec. 20.  [184A.20] [PENALTY.] 
     A person, agent, or officer of an agent, who violates any 
provision of this act is guilty of a misdemeanor, punishable by 
a fine of not less than $25 nor more than $250 or imprisonment 
for a period of not more than 60 days, or both.  
    A person, firm, or corporation who shall split, divide, or 
share, directly or indirectly, a fee, charge, or compensation 
received from an employee with an employer, or person in any way 
connected with the business, shall be punished by a fine of not 
less than $500, and not more than $1,000, or, on failure to pay 
the fine, by imprisonment for a period not to exceed one year, 
or both, at the discretion of the court.  
    Approved April 26, 1984