TITLE 16.ECONOMIC REGULATION

Part 2. PUBLIC UTILITY COMMISSION OF TEXAS

Chapter 26. SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS

Subchapter F. REGULATION OF TELECOMMUNICATIONS SERVICE

16 TAC §26.127

The Public Utility Commission of Texas (commission) proposes an amendment to §26.127, relating to Abbreviated Dialing Codes. The proposed amendment will designate the use of the abbreviated dialing code "811" for "One Call" advanced notification and inquiry related to excavation activities and underground facilities. This proposed amendment implements Use of N11 Codes and Other Abbreviated Dialing Arrangements , Sixth Report and Order, CC Docket No. 92-105, FCC 05-59 (Mar. 14, 2005) (Order), in which the Federal Communications Commission (FCC) designated 811 for One Call purposes. The use of 811 is intended to replace a myriad of telephone numbers with a nationally uniform number to allow contractors and property owners to give advance notice of excavation plans and allow facility operators to mark underground facilities prior to excavation to prevent facilities damage and service outages. Project Number 32000 is assigned to this proceeding.

Janis Ervin, Senior Policy Specialist, Infrastructure Reliability Division, and Mark Hallmark, Attorney, Legal Division, have determined that for each year of the first five-year period the proposed amendment is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the amended section.

Ms. Ervin and Mr. Hallmark have determined that for each year of the first five years the proposed amendment is in effect, the public benefit anticipated as a result of enforcing the amended section will be the use of a uniform abbreviated dialing code that facilitates notice of excavation to facility operators and allows facility operators to protect underground facilities, thereby reducing the possibility of facilities damage and service disruptions. There will be no adverse economic effect on small businesses or micro-businesses as a result of enforcing this amended section. There is no anticipated economic cost to persons who are required to comply with the amendment as proposed. The Texas Underground Facility Notification Corporation (doing business as One Call Board of Texas) currently operates a toll free-number (1-800-545-6005) for "One Call" purposes. It is anticipated that calls to the current toll-free number will be gradually migrated to the abbreviated dialing code within the two-year timeframe envisioned by the FCC's Order.

Ms. Ervin and Mr. Hallmark have also determined that for each year of the first five years the proposed amendment is in effect there should be no effect on a local economy, and therefore no local employment impact statement is required under Texas Government Code §2001.022.

The commission staff will conduct a public hearing on this rulemaking, only if requested pursuant to the Texas Government Code §2001.029, at the commission's offices located in the William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701 on Tuesday, August 29, 2006 at 10:00 a.m. The request for a public hearing must be received within 30 days after publication.

Comments on the proposed amendment (16 copies) may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas 78711-3326, within 30 days after publication. Parties are also requested to e-mail an electronic copy of comments to janis.ervin@puc.state.tx.us, if possible. Comments should be organized in a manner consistent with the organization of the proposed amendment. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposal. The commission will consider the costs and benefits in deciding whether to adopt the amended section. All comments should refer to Project Number 32000.

This amendment is proposed under Use of N11 Codes and Other Abbreviated Dialing Arrangements , Sixth Report and Order, CC Docket No. 92-105, FCC 05-59 (Mar. 14, 2005) and Texas Utilities Code §14.002, which provides the Public Utility Commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction.

Cross Reference to Statutes: Texas Utilities Code §14.002, §251.001 et seq.

§26.127.Abbreviated Dialing Codes.

(a) Code assignments. The following abbreviated dialing codes may be used in Texas:

(1) - (6) (No change.)

(7) 811-- One Call Excavation Notification [ Business Office ]; and

(8) (No change.)

(b) - (e) (No change.)

(f) 811 service.

(1) Scope and purpose. This subsection applies to the assignment, provision, and termination of 811 service. Through this subsection, the commission implements the Federal Communications Commission's requirements in Use of N11 Codes and Other Abbreviated Dialing Arrangements , Sixth Report and Order, CC Docket No. 92-105, FCC 05-59 (Mar. 14, 2005), that designated 811 as the national abbreviated dialing code to be used by state One Call notification systems for providing advanced notice of excavation activities to underground facility operators in compliance with the Pipeline Safety Improvement Act of 2002. The commission intends to reduce the possibility of disruptions to underground facilities by implementing 811 service. Implementation of 811 service will facilitate advance notice by excavators of planned excavations to facility operators, allowing facility operators to mark and prepare their facilities before excavation.

(2) Authority. Authority for One Call Excavation Notification resides with the Texas Underground Facility Notification Corporation (doing business as One Call Board of Texas) pursuant to Section 251 of the Texas Utilities Code.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 29, 2006.

TRD-200603526

Adriana A. Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: August 13, 2006

For further information, please call: (512) 936-7208


Part 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

Chapter 78. TALENT AGENCIES

The Texas Department of Licensing and Regulation ("Department") proposes amendments to existing rules at 16 Texas Administrative Code ("TAC"), §§78.1, 78.10, 78.20, 78.21, 78.30, 78.40, 78.70, 78.72, 78.75, 78.80, and 78.90 and proposes the repeal of existing rules at 16 Texas Administrative Code §§78.22, 78.71, 78.74, 78.82, and 78.100 regarding the talent agency program.

The proposed amendments and repeals arise as a result of the department's rule review process. On May 20, 2005, the department published a Notice of Intent to Review the talent agency rules in the Texas Register (30 TexReg 3040). The public comment period closed on June 20, 2005. The department received two written comments from individuals and/or organizations with suggested rule changes. The department determined that the reasons for initially adopting talent agency rules continued to exist and that the rules were essential to implementing Texas Occupations Code, Chapter 2105. The rule review was adopted on August 3, 2005 by the Commission of Licensing and Regulation. On August 30, 2005, the department hosted an external focus group to discuss the talent agency rules. Talent agencies, trade associations, and other interested parties attended the focus group meeting. Based on the two written comments received during the rule review process and the numerous oral comments received during the external focus group meeting, the department proposes amendments and repeals to the talent agency rules to clarify the statutory and rule requirements.

The proposed amendments and repeal are necessary to clarify registration requirements, such as out-of-state talent agency websites and advertisements in Texas and out-of-state talent agencies operating temporarily in Texas; to delete references within the chapter to "open model calls" and "personal agents" to emphasize that a talent agency is a person or entity under any name or title who is in the business of performing services described under the Act; to add registration requirements relating to a talent agency's change of ownership and change of location and to state initial and renewal application requirements; to remove certain exemptions from the chapter that are not statutorily based; to clarify surety bond requirements and add submission of proof of a surety bond in good standing for talent agency renewal registrations to improve compliance with the Act and to protect consumers; to remove an existing provision that allows out-of-state agencies to operate in Texas if hosted by a Texas-registered talent agency; to remove a requirement for talent agencies to file a schedule of commissions and fees with the department; to clarify the statutory prohibition against registration or advance fees in light of industry concerns for talent agencies' ability to charge artists fees for internet websites, photographs, and training sessions; to clarify the number of days in which a talent agency must deposit monies received from a client and the number of days in which to disburse those monies to the artist; to clarify the existing annual fee, without substantive change, and to reduce the fee for a talent agency to obtain a revised/duplicate certificate of registration; and to clarify sanctions against a talent agency when the talent agency holds a registration at more than one Texas location.

An amendment to §78.1, "Authority," deletes the reference to Chapter 53 of the Texas Occupations Code because Chapter 53 is not an authority under which the rules are promulgated. Occupations Code, Chapter 53 remains applicable by its terms and the department's rules under 16 TAC Chapter 60, to require the department to review criminal conviction backgrounds for license applicants.

Proposed new §78.10(1) adds a definition for "Act," for easier reference to Texas Occupations Code, Chapter 2105, the statute regulating talent agencies.

Proposed §78.10(2) updates the existing statutory citation to refer to the "Act" within the definition of "artist." There is no substantive change to this paragraph.

An amendment to existing §78.10(2) deletes the definition of "mother agency" in its entirety. A definition for this term is unnecessary because concurrently proposed rules delete the reference to this term within the chapter.

Proposed §78.10(3) adds a definition for "financial interest" because a concurrently proposed rule under §78.70(b) utilizes this phrase.

An amendment to existing §78.10(3) deletes the definition of "open model call" in its entirety. A definition for this term is unnecessary because concurrently proposed rules delete the reference to this term within the chapter.

Proposed §78.10(4) adds a definition for a talent agency owner because the term is used throughout the chapter. The proposed rule is based on §2105.052 of the Act.

Proposed §78.10(5) amends the definition of "talent agency location" for consistency with concurrently proposed rules under §78.20. Texas and out-of-state talent agencies must have a registration in accordance with §78.20.

An amendment to §78.20(a) deletes portions of existing subsection (a) in order to relocate and clarify those portions to concurrently proposed §78.20(b) and (c) for better understandability. An amendment to this subsection adds a phrase to emphasize that registration is required "for each talent agency location," as required under the Act. The proposed rule adds clarification that a Texas-registered talent agency may operate from a temporary location in Texas.

An amendment to existing §78.20(b) deletes this provision in its entirety in order to address a person's registration requirement based on concurrently proposed §78.20(b).

Proposed §78.20(b) and (c) seek to clarify language relocated from existing subsection (a) relating to the registration requirements under that section requiring a registration for talent agencies that have "a place of business in Texas," that "recruit artists from a temporary location in Texas," or that "advertise in Texas." Proposed §78.20(b) restates, without substantive change, existing language from subsection (a) requiring talent agencies that have a place of business or a temporary location in Texas to obtain a certificate of registration to operate the talent agency. Also, proposed §78.20(b) emphasizes that a talent agency is a person by any name or title who is in the business of performing the services described under the Act. This language is consistent with the Act and clarifies the references in existing §78.20(a) and (b) relating to "personal agents or any persons under any name or title" and "model call or casting call" whose actions fall within the scope of the Act.

Proposed §78.20(c) modifies the existing language relocated from existing §78.20(a) that requires persons who "advertise in Texas" to obtain a Texas certificate of registration. Proposed subsection (c) clarifies that the performance of a service under the Act at a place of business or temporary location in Texas is required to trigger the registration requirements. Specifically, advertisements in Texas and/or websites alone do not trigger the Texas talent agency registration requirements without the performance of any service described under the Act at a Texas location for Texas artists.

Proposed §78.20(d) clarifies registration requirements for persons who operate as a talent agency, as defined under the Act, from a temporary location in Texas. The proposed rule requires such persons to register their out-of-state principal place of business and submit the name, address, and telephone number of their registered agent.

Existing §78.20(d) is deleted in its entirety because an applicant's affirmation of reading and being familiar with Chapter 2105 is unnecessary; compliance with the law is required.

Proposed §78.20(e) clarifies the existing rule to state that a certificate of registration is not transferable to another person, adds a definition for "change of ownership" for clarification, and deletes the word "assignable" as duplicative of the existing language that prohibits the transfer of a certificate of registration.

Proposed §78.20(f) adds a provision clarifying that a talent agency that relocates to a new location must obtain a revised/duplicate registration prior to operating at the new location. This informs talent agencies of their obligations in registering each talent agency location and also clarifies that a location transfer is not a prohibited transfer of a certificate of registration.

Existing §78.20(f) is deleted in its entirety because it is unnecessary; compliance with the law is required.

Proposed §78.20(g) clarifies that applicants using an assumed name must comply with the Texas Business and Commerce Code, Chapter 36 as amended. The additional language clarifies license holders' on-going responsibilities under that law.

Existing §78.20(g) is deleted in its entirety. Providing copies to the department of a talent agency's registration with the Secretary of State and county clerks is unnecessary.

A proposed amendment to §78.21 re-titles this section to include "renewals" in accordance with a concurrently proposed repeal of §78.22, relating to renewal registrations.

Existing §78.21(a) is deleted in its entirety. The application form will require signature(s) of the talent agency owner(s).

Existing §78.21(b)(1) is deleted in its entirety. The application form will require identifying information of the talent agency owner(s).

Existing §78.21(b)(2) and (3) are deleted from registration requirements. The concept of disclosure of a talent agency owner's financial interest in video productions, photograph studios, and acting and modeling schools, etc. is relocated from the registration requirements and moved to consumer disclosure requirements, in concurrently proposed §78.70(b), relating to registrant responsibilities.

Existing §78.21(b)(4) is deleted because the requirement for talent agencies to file a schedule of commissions and fees with the department is concurrently proposed for repeal under §78.71.

Proposed §78.21(a) identifies the criteria to obtain an initial talent agency certificate of registration. The requirement to submit a business's assumed name documents is pursuant to existing §78.20(e) relating to compliance with the Assumed Business or Professional Name Act.

Proposed §78.21(b) creates a section to state the criteria to obtain a renewal certificate of registration. The proposed criteria for a renewal registration are to complete a department-approved renewal form, submit proof that the talent agency's bond is in good standing and has not been canceled, and submit a fee in accordance with §78.80. The requirement to submit proof of a bond in good standing ensures compliance with the existing surety bond requirements of the Act and the chapter.

Proposed §78.21(c) is language relocated from existing §78.74(a), relating to the requirement for a talent agency to submit a change of information within 30 days of the change. Also, the proposed rule adds references to specific types of information changes, such as a change of ownership and a change of location, which have different timelines within the chapter to submit changes of information.

Proposed §78.21(d) is language relocated without substantive change from existing §78.74(b), relating to the requirement for a talent agency to obtain a revised registration when information on the face of the registration changes.

Existing §78.22 is repealed. Renewal registration requirements are concurrently proposed under §78.21. The existing provision relating to submitting a change in information is relocated to concurrently proposed §78.21(b).

An amendment to existing §78.30(1) clarifies an exemption for a parent to provide talent agency services to the parent's own minor child without obtaining a talent agency registration. Unless otherwise provided by a court order, a parent is the lawful representative of the parent's minor child.

Existing §78.30(2) is deleted in its entirety. The Act does not authorize an exemption for labor unions. If a labor union, or any person under any name or title, is in the business of performing services of a talent agency as described under the Act, then a certificate of registration is required.

Proposed §78.30(2) deletes a reference to operating "a talent agency in conjunction with a person's own business" as duplicative to the existing language in that section for a business to obtain artists for the exclusive purpose of employment in that business.

Existing §78.30(4) is deleted in its entirety. The Act does not authorize an exemption for attorneys. If the attorney, or any person under any name or title, is in the business of performing services of a talent agency as described under the Act, then a certificate of registration is required.

A proposed amendment to §78.40 re-titles this section to state "financial" security requirements, without substantive change.

Proposed §78.40(a) clarifies the existing term "continuous" to specifically state that a bond must be effective for the entire time period of the registration and for a period of two years from the date the talent agency ceases to hold a valid and active registration. This language is a restatement of §2105.052(c) and §2105.106 of the Act.

Proposed §78.40(c) imposes a duty on valid and active talent agency certificate holders to, prior to the date the agency ceases to hold a valid and active registration, submit proof a surety bond is effective for two years after to the date that the talent agency will cease to hold a valid and active registration.

Existing §78.40(c) is deleted in its entirety. The Act does not allow an applicant to submit a cash performance alternative in lieu of a surety bond.

Proposed §78.40(d) reorganizes the enforcement provision for failing to maintain a bond, without substantive change.

Proposed §78.70(a) substitutes the word "and" for the existing word "or" in requiring talent agency publications "and" advertisements to state the talent agency's registered name, address, and registration number.

Existing §78.70(b) is deleted in its entirety. Proposed §78.20 state the registration requirements for out-of-state talent agencies. Specifically, an out-of-state talent agency that performs services described under the Act from a place of business or temporary location in Texas must obtain a Texas certificate of registration, in accordance with the Act and chapter.

Proposed §78.70(b) clarifies that a talent agency may charge for a product or service so long as the fee is not a condition of registration or representation. Pursuant to §2105.201(b)(1) of the Act, a talent agency may not charge, as a condition of registering an applicant or representing an artist a registration or advance fee. The proposed subsection (b) clarifies that so long as the charge is not a condition of registration or representation, then a talent agency may charge a fee for a service or product. Also, proposed subsection (b) relocates from existing §78.21(b)(1) to this section, a talent agency's financial interest disclosure requirement and provides information to artists under §2105.201 and §2105.202 of the Act.

Proposed §78.70(c) adds a disclosure requirement for talent agencies to disclose on every contract with an artist, the name, address and telephone number of the department with a statement that the talent agency is regulated by the department. This informs artists that talent agencies are regulated in Texas.

Proposed §78.70(d) is relocated language from existing §78.71(d) requiring talent agencies to provide to artists the amounts of commissions and fees to be charged to an artist. Proposed §78.70(d) adds that a talent agency's commissions and fees must be stated within an artist's contract and a concurrent proposed repeal of §78.71 removes the requirement for talent agencies to file a schedule of commissions and fees with the department.

Section 78.71 is proposed for repeal in its entirety. This proposal means that talent agencies would no longer be required to file a schedule of commissions and fees with the department. Concurrently proposed §78.70(d) requires a talent agency to disclose the commissions and fees a talent agency charges an artist in the artist's contract. Existing §78.71(e), requiring an artist to be provided a copy of the signed contract is also included in concurrently proposed §78.70(d). Existing §78.71(f) is relocated to proposed §78.72(c) and clarified.

A proposed amendment to the title of §78.72 is a grammatical change to add the word "the."

Proposed §78.72(a) clarifies the number of days in which a talent agency must deposit monies received from a client on behalf of an artist to proposed language of 7 calendar days because calendar days are easier to count than the existing "banking" days.

Proposed §78.72(b) deletes the phrase "unless a written contract to the contrary exists" because §2105.105 of the Act requires the department to determine by rule the disbursements of funds. Also, proposed §78.72(b) clarifies the number of days in which a talent agency must disburse monies owed to an artist to proposed language of 14 calendar days because calendar days are easier to count than the existing "banking" days. Also, the proposed amendment includes relocated language from existing §78.75(d) requiring that a talent agency's disbursement of monies shall include a written statement of the specific nature and amount charged to the artist.

Proposed §78.72(c) is relocated language from existing §78.71(f) that is clarified to require a talent agency's disclosure of the terms of agreement(s) between the talent agency and client(s), pertaining to the artist, within 48 hours of the artist's request.

Section 78.74 is proposed for repeal in its entirety because the responsibilities existing in this section are concurrently proposed in §78.21(b) and (c), without substantive change. This repeal and the concurrently proposed rule organizes the registration requirements for better understandability.

Existing §78.75(a) is deleted in its entirety. Concurrently proposed §78.75(a) conforms to statutory language under §2105.201(b)(1) of the Act and adds examples that are pertinent to the industry. The examples given mirror the statutory standard under §2105.201(b)(1).

Existing §78.75(b) is deleted in its entirety. The topic of splitting or sharing fees is concurrently addressed in proposed §78.75(b) and clarifies the language to conform to statutory language under §2105.201(b)(2) of the Act.

Existing §78.75(c) is deleted in its entirety. The Act and concurrently proposed rules in this chapter address a talent agency's collection of monies from an artist.

Proposed §78.75(c) is a restatement of §2105.202 of the Act, added to the chapter for emphasis in stating a talent agency's prohibited acts.

Existing §78.75(d) is deleted in its entirety because the topic is relocated to concurrently proposed §78.72(b).

Existing §78.75(e) is deleted in its entirety. The Act and concurrently proposed rules in this chapter address a talent agency's collection of monies from an artist.

Proposed §78.80(a) restates a talent agency's annual certificate of registration requirement. Under existing §78.80(a) and (b), the amounts of $100 and $300, respectively, are currently charged for a talent agency's filing fee and annual certificate of registration. Proposed §78.80(a) groups these fees together for a single fee of $400, without substantive change.

Also, without change, proposed §78.80(b) adds clarification that renewal registrations are $400. This is not a change from the previously imposed amount for the "annual" registration.

Proposed §78.80(c) reduces the fee for updating certificates of registrations and obtaining a duplicate registration. Under existing §78.82(a) and (b), concurrently proposed for repeal, the charge for filing an updated registration is $100 and the change for printing a duplicate registration is $25, respectively. Proposed §78.80(c) simplifies this process to one fee and reduces the fee to $25 for a "revised/duplicate" registration. The remainder of the section is relettered accordingly without substantive change.

Section 78.82 is proposed for repeal in its entirety because updated and duplicate registrations are addressed in concurrently proposed in §78.80(c). This repeal and the concurrently proposed rule under §78.80(c) reorganize the fee requirements for better understandability.

Proposed §78.90(a) is clarified without substantive change.

Proposed §78.90(b) adds that a talent agency that holds two or more certificates of registration for multiple talent agency locations may have all talent agency location registrations included within a proceeding to impose administrative sanctions and/or penalties. This proposed rule provides notice to talent agencies that the talent agency owner's violations arising from acts from one of the owner's talent agency locations may effect the talent agency owner's ability to hold a certificate of registration at other locations in Texas.

Section 78.100 is proposed for repeal in its entirety because explanations of the parties' contractual rights are more fully addressed under the Act and contract law.

William H. Kuntz, Jr., Executive Director, has determined that for the first five-year period the proposed amendments and repeal are in effect there will be no cost to state or local government as a result of enforcing or administering the proposal.

Mr. Kuntz also has determined that for each year of the first five-year period the proposed amendments and repeal are in effect, the public benefit will be rules that will clarify registration requirements under the Act for both in-state and out-of-state persons operating a talent agency in Texas; to improve existing talent agency disclosures to artists; to clarify prohibited registration and advance fees under the Act; and to generally clarify the rules for better readability and compliance.

Mr. Kuntz has determined that there will be an incidental economic effect on large, small, or micro-businesses as a result of the proposed amendments and repeal. There is an incidental increase in costs to talent agencies to modify their existing talent agency contracts to comply with the proposed amendments and repeal. There may be an incidental loss to talent agencies that host open model calls for out-of-state talent agencies under existing §78.70(b) by requiring a person who acts as a talent agency in Texas, including an out-of-state talent agency, to obtain a Texas registration. There may be an incidental reduction in costs for talent agencies to no longer file a commission and fee schedule. There is a reduction in cost for talent agencies to obtain a revised or duplicate registration.

Comments on the proposal may be submitted to Tamala Fletcher, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, or facsimile (512) 475-3032, or electronically: tamala.fletcher@license.state.tx.us. The deadline for comments is 30 days after publication in the Texas Register .

16 TAC §§78.1, 78.10, 78.20, 78.21, 78.30, 78.40, 78.70, 78.72, 78.75, 78.80, 78.90

The amendments are proposed under Texas Occupations Code, Chapter 2105, which authorizes the Department to adopt rules as necessary to implement this chapter and to set application and registration fees in amounts that are reasonable and necessary to defray the costs of administering this chapter.

The statutory provisions affected by the proposal are those set forth in Texas Occupations Code, Chapters 51 and 2105. No other statutes, articles, or codes are affected by the proposal.

§78.1.Authority.

These rules are promulgated under the authority of the Texas Occupations Code, Chapters [ Chapter ] 51 and 2105[ , and the Texas Occupations Code, Chapters 51 and 53 ].

§78.10.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Act--Texas Occupations Code, Chapter 2105.

(2) [ (1) ] Artist-- An [ an ] actor or a model, as they are defined in the Act [ Texas Occupations Code, Chapter 2105 ].

(3) Financial interest--Either an equity ownership in or receiving compensation from a business enterprise.

(4) Owner--A sole proprietor or each person who directly or indirectly owns or controls 10 percent or more of the partnership or the outstanding shares of stock.

[(2) Mother agency--a talent agency that enters into an agreement with an artist to try to find employment or representation in markets other than the state of Texas, and also enters into an agreement with an out-of-state agency to find artists for it. The mother agency collects a fee from the artist only when the artist performs work booked by the mother agency. The out-of-state agency pays the mother agency a share of the commission withheld from the artist's fees for all work performed through the out-of-state agency.]

[(3) Open model call--a model call that is advertised to the public, inviting both models and anyone desiring to become a model, and that is no limited to the models currently under contract to a talent agency.]

(5) [ (4) ] Talent agency location-- A person's place(s) of business in Texas from which services described under the Act are performed or, for an out-of-state talent agency that performs services described under the Act from a temporary location in Texas, the out-of-state principal place of business. [ an office or other physical location from which the talent agency operates all aspects of its operations. A location within the municipality or metropolitan area in which the talent agency is licensed which is used no more than two consecutive days during a six month period to hold a model call is not considered a talent agency location for purposes of registration under Texas Occupations Code, Chapter 2105. ]

§78.20.Registration Requirements--General.

(a) Unless exempted [ in §78.30 of this title (relating to Exemptions) ], all talent agencies as defined by the Act [ that have a place of business in Texas, or advertise in Texas, and obtain or attempt to obtain employment for artists in Texas, or recruit artists from a temporary location in Texas, ] must obtain a certificate of registration for each talent agency location. A Texas registrered talent agency may operate from a temporary location in Texas. [ in order to operate a talent agency. "Personal agents", or any persons under any name or title, who perform the services described in Texas Occupations Code, Chapter 2105, as any part of the services they provide, are talent agents under Texas Occupations Code, Chapter 2105. ]

(b) A talent agency is a person by any name or title who is in the business of performing the services described under the Act and performs those services from a place of business or a temporary location in Texas.

(c) Advertisements placed in Texas and/or websites do not trigger the Texas talent agency registration requirements without the performance of a service described under the Act at a place of business or temporary location in Texas.

(d) A person located outside of Texas that performs services described under the Act from a temporary location in Texas shall register their out-of-state principal place of business and shall submit the name, address, and telephone number of their registered agent.

[(b) Unless exempted by §78.30 of these rules, any person, partnership, corporation, or association that advertises a model call or casting call, or implies in any advertisement that employment as an artist or representation by an agent might be obtained by responding to such advertisement is a talent agency and must be registered under the provisions of Texas Occupations Code, Chapter 2105.]

(e) [ (c) ] A certificate of registration is not [ assignable or ] transferable to another person. If a talent agency changes ownership, the new owner must apply for a new certificate of registration and comply with the requirements of the Act and this chapter prior to operating the talent agency. Change of ownership is defined as: [ . ]

(1) For a sole proprietorship, the licensee no longer owns and/or operates the talent agency.

(2) For a partnership, the partnership is dissolved.

(3) For a corporation, the corporation is sold to another person or entity. A change of ownership does not include corporate officer or stockholder restructuring.

(4) Legal incompetence or death.

[(d) All applications shall include a statement that all owners, partners, members of associations, trustees, or fiduciaries, have read and are familiar with the provisions of Texas Occupations Code, Chapter 2105.]

(f) A talent agency that relocates, without a change in ownership, must obtain a revised/duplicate certificate of registration and pay a fee in accordance with §78.80 of this chapter prior to operating the talent agency at the new location.

(g) [ (e) ] Any talent agency using an assumed name(s) must comply with the Assumed Business or Professional Name Act, Texas Business and Commerce Code, Chapter 36 as amended .

[(f) Any incorporated talent agency must comply with the Texas Business Corporation Act, Article 2.05.]

[(g) The talent agency must furnish a copy of all registrations filed with the clerk of the county in which the talent agency is located, or the registration filed with the Secretary of State. A copy of any changed or revised registrations must be furnished to the department within 30 days of filing.]

§78.21.Registration and Renewal Requirements--[ New ] Certificates of Registration .

(a) To obtain an initial talent agency certificate of registration, an applicant must:

(1) submit a completed application on a department-approved form;

(2) submit a surety bond in accordance with the Act and this chapter;

(3) if using an assumed name, submit documents under the Assumed Business or Professional Name Act, Texas Business and Commerce Code, Chapter 36; and

(4) pay the fee required under §78.80 of this chapter.

(b) To obtain a renewal talent agency certificate of registration, an applicant must:

(1) submit a completed application on a department-approved form;

(2) submit proof that the talent agency had a surety bond continuously in effect for the preceding registration period by providing a letter directly from the bonding company to the department that states the initial issuance date of the talent agency's surety bond with a statement that the bond is in good standing and has been in good standing continuously since the bond's initial issuance; and

(3) pay the fee required under §78.80 of this chapter.

(c) Unless relating to a change of ownership, a change of location, or otherwise provided in this chapter, any change of information must be furnished to the department within 30 days of the change or revision.

(d) If any information that appears on the face of the certificate of registration changes, the talent agency must obtain a revised/duplicate certificate of registration by returning the outdated certificate and paying the fee required under §78.80 of this chapter.

[(a) The application must be signed by the applicant. The application must be signed by each officer if a corporation, each partner if a partnership, each member if an association, or each trustee or fiduciary as applicable.]

[(b) An initial application must contain:]

[(1) the complete names, social security numbers, dates of birth, addresses, and phone numbers of all persons owning at least 10 percent of the talent agency. If the talent agency is a partnership, the names of all partners must be included. If the talent agency is a limited partnership, the names of all general and limited partners must be included, along with the name and address of the registered agent. If the talent agency is a corporation, the names of the corporate president, vice president, secretary and treasurer must be included. The percent ownership interest must be stated in all cases;]

[(2) the names of any talent agency owners who have a financial interest in any company involved in the casting, production or distribution of motion pictures or television motion pictures, independent video production companies, recording studios, photography studios, or any other companies or firms which would hire artists from time to time. This disclosure shall include the company or companies in which he has a financial interest, and the percent of ownership in each company listed. Such an interest shall not, in and of itself, be grounds for registration denial, suspension or revocation;]

[(3) the names of any talent agency owners who have a financial interest in any school or course of instruction which is primarily intended for the professional study of acting or modeling. This disclosure shall include the school or course name and the percent of ownership held. Any person owning and/or operating a modeling or acting school must comply with the provisions of Texas Education Code, Chapter 132, and the Texas Workforce Commission Rules for proprietary schools as they appear in 40 Texas Administrative Code, Chapter 807; and]

[(4) a schedule of commissions and/or fees charged.]

§78.30.Exemptions.

The term "talent agency" does not apply to:

(1) a person who obtains or attempts to obtain employment for himself or herself or the person's minor child .

[(2) an organized labor union that represents artists and whose efforts to obtain or attempt to obtain employment for its members is incidental to representing its members.]

(2) [ (3) ] [ a person who, without assessing a fee, operates a talent agency in conjunction with the person's own business, or as the authorized representative for ] a bona fide employer, for the exclusive purpose of employing artists for use [ in or for that business, or ] by that employer.

[(4) attorneys licensed to practice who represent artists, strictly as legal advisors and not as managers.]

§78.40. Financial Security Requirements.

(a) Surety bonds furnished in compliance with the Act [ Texas Occupations Code, Chapter 2105 ] shall be effective for the entire time period of the registration [ continuous ] and for a period of two years from the date the talent agency ceases to hold a valid and active registration. The bond shall provide for the issuing company to give the department 30 days written notice of cancellation.

(b) The surety bond shall be issued by a company authorized to do business in the State of Texas, conform to the Texas Insurance Code, and be on a form provided by the department.

(c) Prior to the date that a talent agency ceases to hold a valid and active registration, a talent agency must submit proof of a surety bond in the amount of $10,000 payable to the State of Texas to be effective for a period of two years from the date the talent agency ceases to hold an valid and active registration.

[(c) An owner may deposit a cash performance alternative of $10,000 in lieu of the bond. The cash performance alternative shall be an irrevocable assignment of security issued by a national or state bank, or savings and loan association, subject to the express approval of the executive director. Each assignment or cash deposit shall remain in effect for a period of three (3) years, beginning with the date of issuance of the certificate of registration. Forms for filing an assignment of security shall be provided by the department upon request.]

(d) Failure to maintain the bond [ or assignment ] for the entire time period required by this section and the Act [ Texas Occupations Code, Chapter 2105 ] will be cause for the executive director to institute action to impose administrative and/or civil sanctions and penalties [ request an administrative hearing to suspend or revoke the talent agency's certificate of registration ].

§78.70.Responsibilities of the Registrant--General.

(a) All talent agency publications and [ or ] advertisements, including but not limited to, circulars, newspapers, periodicals, yellow page ads, brochures, business cards, contracts and receipts shall state [ contain ] the registered name, address and registration number of the talent agency.

(b) A talent agency that offers a service or product that is not a condition of registration or representation shall disclose, in a written contract signed by both the talent agency and the artist, that such purchase is not required for the talent agency's registration or representation of the artist. The agreement must also disclose each talent agency owner's financial interest in a person providing the product or service, if different from the talent agency's owners.

(c) A talent agency's contract for an artist's purchase of a product or service offered by the talent agency shall include the following information: "Regulated by the Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, 1-800-803-9202, 512-463-6599; website: www.license.state.tx.us/complaints."

(d) The talent agency shall provide an artist who uses the services of a talent agency a copy of the signed contract that includes a statement of the commissions and/or fees that will be charged to the artist.

[(b) Any talent agency acting as host for an open model call for an out-of-state agency in expectation of signing either regular or "mother" agency contracts with artists, may only do so for a single out of state agency at a time. The talent agency registered in Texas shall be responsible for:]

[(1) publishing both the Texas registration number and the out-of-state registration number, if applicable, in all advertisements;]

[(2) providing a commission or fee schedule of the out-of-state agency to the department at least five days before the open model call is held; and]

[(3) adherence to all provisions of Texas Occupations Code, Chapter 2105 and rules by the out-of-state agency for the open model call.]

§78.72.Responsibilities of the Registrant--Treatment of Monies.

(a) A talent agency that receives any payment of monies from a client on behalf of an artist shall, within seven calendar [ five banking ] days, deposit that amount in an account maintained by the talent agency in a federally insured financial institution. This subsection does not prohibit the practice of "check swapping" as that term is commonly used in the talent agency industry.

(b) All [ Unless a written contract to the contrary exists, all ] monies received from a client that are owed to [ on behalf of ] an artist must be disbursed to that artist no later than fourteen calendar [ ten banking ] days after receipt by the talent agency , including a written statement of the specific nature and amount charged to the artist .

(c) Within 48 hours of an artist's request, a talent agency shall disclose to the artist, in writing, the terms of all agreements between the talent agency and a client that relate to the artist's employment with the client, including the nature and amount of all monies received from the client.

§78.75.Responsibilities of the Registrant--Prohibited Acts.

(a) A talent agency may not charge, as a condition of registering an applicant or representing an artist, a registration or advance fee. Fees for websites, photographs, training workshops, and other similar products and/or services may not be charged to an artist as a condition of registering with or obtaining representation by a talent agency.

(b) A talent agency may not split or share fees with any person who is not registered under the Act.

(c) A talent agency may not require an applicant to subscribe to or use a specific publication, video or audio tape, postcard service, advertisement service, resume service, photographer, or acting or modeling school or workshop.

[(a) Regardless of its refund policy, a talent agency may not charge an artist any fee. or charge, other than reimbursement of amounts actually paid by the talent agency on behalf of the artist, before the artist has accepted an offer of employment obtained through a referral made by the talent agency.]

[(b) A talent agency may not split or share fees with any person who is required to be but is not registered under Texas Occupations Code, Chapter 2105 as a talent agency.]

[(c) A talent agency may require an artist to reimburse it for legitimate expenses owed to third parties if:]

[(1) the expenses were incurred as a result of efforts made on the behalf of the artist by the talent agency; and]

[(2) the talent agency has obtained, in advance, in writing the express permission of the artist to incur such expenses.]

[(d) When the talent agency bills the artist it must provide the artist an itemized statement of the nature of the charges and a copy of the invoice or receipt.]

[(e) Expenses such as utility costs, local telephone service, and other similar indirect costs shall not be recovered from the artist.]

§78.80.Fees[ --Original Registration and Renewal ].

(a) Initial [ Annual ] certificate of registration application [ filing ] fee-- $400 [ $100. ]

(b) Renewal [ Annual ] certificate of registration application fee-- $400 [ $300. ]

(c) Revised/duplicate certificate of registration--$25

(d) [ (c) ] All fees are non-refundable.

(e) [ (d) ] Late renewal fees for certificates issued under this chapter are provided for under §60.83 of this title (relating to Late Renewal Fees).

§78.90.Sanctions--Administrative Sanctions/Penalties.

(a) If a person violates the Act [ Texas Occupations Code, Chapter 2105 ], or a rule or order adopted or issued by the commission or executive director [ commissioner ] relating to the Act [ Texas Occupations Code, Chapter 2105 ], the executive director may institute proceedings to impose administrative sanctions and/or recommend administrative penalties in accordance with Government Code, Chapter 2001, Texas Occupations Code, Chapter 51, and Chapter 60 of this title [ (relating to Texas Commission of Licensing and Regulation) ].

(b) When a talent agency holds two or more certificates of registration for multiple talent agency locations, a proceeding to impose sanctions and/or recommend administrative penalties may include all talent agency locations owned by that talent agency.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 30, 2006.

TRD-200603569

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Earliest possible date of adoption: August 13, 2006

For further information, please call: (512) 463-6208


16 TAC §§78.22, 78.71, 78.74, 78.82, 78.100

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Department of Licensing and Regulation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under Texas Occupations Code, Chapter 2105, which authorizes the Department to adopt rules as necessary to implement this chapter and to set application and registration fees in amounts that are reasonable and necessary to defray the costs of administering this chapter.

The statutory provisions affected by the repeal are those set forth in Texas Occupations Code, Chapters 51 and 2105. No other statutes, articles, or codes are affected by the proposed repeal.

§78.22.Registration Requirements--Renewal.

§78.71.Responsibilities of the Registrant--Schedules of Commissions and Fees.

§78.74.Responsibilities of the Registrant--Registration Statement.

§78.82.Fees--Updated or Duplicate Registration.

§78.100.Technical Requirements.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 30, 2006.

TRD-200603570

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Earliest possible date of adoption: August 13, 2006

For further information, please call: (512) 463-6208