Senate Bill No. 47–Committee on Judiciary
Prefiled January 24, 2001
(On Behalf of Encouraging Businesses to
Organize and
Conduct Business in Nevada (SCR 19))
____________
Referred to Committee on Judiciary
SUMMARY—Provides for judicial approval of certain
contracts involving minors. (BDR 11‑260)
FISCAL NOTE: Effect on Local Government: No.
~
EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along
left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
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:
1-1 Section 1. Chapter 129
of NRS is hereby amended by adding thereto
1-2 the provisions set forth as
sections 2 to 17, inclusive, of this act.
1-3 Sec. 2. As used in sections 2 to 17, inclusive,
of this act, unless the
1-4 context otherwise requires, the words and terms defined in sections
3 to
1-5 8, inclusive, of this act have the meanings ascribed to them in
those
1-6 sections.
1-7 Sec. 3. “Contract” means a
proposed contract pursuant to which:
1-8 1. A minor agrees to render artistic or creative
services, directly or
1-9 through a third party. As used in this subsection:
1-10 (a) “Artistic or creative
services” includes, without limitation, services
1-11 as an actor, actress, extra, background performer, dancer,
musician,
1-12 comedian, singer, stunt person, voiceover artist, songwriter,
musical
1-13 producer, musical arranger, writer, director, producer, production
1-14 executive, choreographer, composer, conductor, designer or other
1-15 performer or entertainer.
1-16 (b) “Third party” includes,
without limitation, a personal services
1-17 corporation or loan-out company.
2-1 2. A minor agrees to render services as a
participant, competitor or
2-2 player in a sport.
2-3 3. A person agrees with a minor to purchase,
sell, lease, license,
2-4 transfer, exchange or otherwise dispose of:
2-5 (a) Literary, musical,
artistic or dramatic properties, either tangible or
2-6 intangible;
2-7 (b) The use of the name,
voice, signature, photograph or likeness of
2-8 the minor; or
2-9 (c) Radio broadcasting,
television or motion picture rights for the
2-10 performance of the minor, or for the story of or incidents in the
life of
2-11 the minor, either tangible or intangible.
2-12 Sec. 4. “Interested party”
includes:
2-13 1. A person who is a party to a contract; and
2-14 2. The parent, custodian or guardian of a minor
who is a party to a
2-15 contract, if the parent, custodian or guardian is authorized to act
on
2-16 behalf of the minor.
2-17 Sec. 5. “Minor” means a
person who:
2-18 1. Is less than 18 years of age;
2-19 2. Has not been declared emancipated pursuant to
NRS 129.080 to
2-20 129.140, inclusive; and
2-21 3. Resides in this state, or will be rendering
services in this state
2-22 pursuant to a contract.
2-23 Sec. 6. “Net earnings” means
the gross earnings received for
2-24 services rendered by a minor during the term of a contract, less:
2-25 (a) All sums required by law
to be paid as taxes to any federal, state or
2-26 local government with respect to or by reason of such earnings;
2-27 (b) Reasonable sums to be
expended for the support, care, education,
2-28 training and professional management of the minor; and
2-29 (c) Reasonable fees and
expenses to be paid in connection with the
2-30 contract and its performance.
2-31 Sec. 7. “Petition” means a
petition for approval of a contract filed
2-32 pursuant to section 9 of this act.
2-33 Sec. 8. “Petitioner” means a
person who files a petition for approval
2-34 of a contract pursuant to section 9 of this act.
2-35 Sec. 9. 1. An interested party may petition the district court for
2-36 approval of a contract by filing a written petition for approval of
the
2-37 contract in the district court of the county in which:
2-38 (a) The minor resides;
2-39 (b) The minor will be
rendering services pursuant to the contract; or
2-40 (c) A party to the contract
has its principal office for the transaction
2-41 of business.
2-42 2. The petition must be verified by the
petitioner and must contain
2-43 the following items:
2-44 (a) The full name, date of
birth, place of birth and physical address of
2-45 the minor.
2-46 (b) The full name and
physical address of any living parent of the
2-47 minor.
2-48 (c) The full name and
physical address of any person who has care
2-49 and custody of the minor.
3-1 (d) Whether the minor has,
at any time, had a guardian appointed for
3-2 him by a court in any jurisdiction or pursuant to a will or deed.
3-3 (e) If the minor is not a
resident of this state, the location in this state
3-4 at which the minor will be rendering services pursuant to the
contract.
3-5 (f) A summary of the nature
and provisions of the contract.
3-6 (g) A schedule showing the
estimated:
3-7 (1) Gross earnings of the
minor pursuant to the contract;
3-8 (2) Deductions from the
earnings of the minor required by law;
3-9 (3) Reasonable fees and
expenses to be paid in connection with the
3-10 contract and its performance;
3-11 (4) Reasonable sums to be
expended for the support, care,
3-12 education, training and professional management of the minor; and
3-13 (5) Net earnings of the
minor pursuant to the contract.
3-14 (h) Whether any person is
entitled to receive any portion of the
3-15 earnings of the minor and a detailed description of the financial
3-16 circumstances of any such person.
3-17 (i) A statement
acknowledging that the minor and a parent, custodian
3-18 or guardian of the minor consent to an order of the court setting
aside a
3-19 portion of the net earnings of the minor for the benefit of the
minor.
3-20 (j) The relationship of the
petitioner to the minor and the interest of
3-21 the petitioner in the contract or in the performance of the minor
3-22 pursuant to the contract, if any.
3-23 (k) A statement
acknowledging that the term of the contract during
3-24 which the minor is to render services, if applicable, may not
extend
3-25 beyond 5 years from the date of approval of the contract by the
court.
3-26 (l) A statement describing
any other covenants or conditions
3-27 contained in the contract which extend beyond 5 years from the date
of
3-28 approval of the contract by the court, or a statement indicating
that the
3-29 contract contains no such covenants or conditions.
3-30 (m) Any other facts which
demonstrate that the terms of the contract
3-31 are:
3-32 (1) Objectively fair and
reasonable;
3-33 (2) Consistent with the
standards of the industry to which the object
3-34 of the contract pertains;
3-35 (3) Consistent and in
compliance with the laws of this state,
3-36 including, without limitation, the laws governing the conduct and
3-37 employment of minors; and
3-38 (4) In the best interests
of the minor.
3-39 (n) A statement
acknowledging that the minor and a parent, custodian
3-40 or guardian of the minor have had the opportunity to consult with
an
3-41 attorney who is experienced in the laws and practices pertaining to
the
3-42 applicable industry and consent to the approval of the contract by
the
3-43 court.
3-44 3. A copy of the contract must be attached to
the petition.
3-45 4. If a new petition is filed following the
denial of a previous petition
3-46 pursuant to paragraph (c) of subsection 2 of section 11 of this
act, the
3-47 following must be attached to the petition:
3-48 (a) A copy of any previous
petition that was denied by the court and
3-49 copies of any exhibits thereto; and
4-1 (b) A certified copy of the
transcribed record of any hearing
4-2 conducted concerning any previous petition that was denied by the
court.
4-3 Sec. 10. 1. Upon receipt of a petition, the court shall schedule a
4-4 hearing to determine whether the petition should be granted.
4-5 2. At any hearing concerning the petition:
4-6 (a) The minor who is the
subject of the petition shall personally
4-7 attend.
4-8 (b) The court may hear and
consider all competent, material and
4-9 relevant evidence helpful in determining whether the petition
should be
4-10 granted, including, without limitation, oral and written testimony
and
4-11 reports, and such evidence may be received by the court and relied
upon
4-12 to the extent of its probative value.
4-13 Sec. 11. 1. In determining whether to grant a petition,
the court
4-14 shall consider whether the terms, conditions and covenants of the
4-15 contract are:
4-16 (a) Objectively fair and
reasonable;
4-17 (b) Consistent with the
standards of the industry to which the object of
4-18 the contract pertains;
4-19 (c) Consistent and in
compliance with the laws of this state, including,
4-20 without limitation, the laws governing the conduct and employment
of
4-21 minors; and
4-22 (d) In the best interests of
the minor.
4-23 2. After considering the petition, the court
shall issue an order:
4-24 (a) Granting the petition.
4-25 (b) Granting the petition
upon the condition that the parties modify
4-26 the terms of the contract in the manner set forth in the order. If
the
4-27 parties modify the terms of the contract in the manner set forth in
the
4-28 order, the petition shall be deemed granted on the date that the
contract,
4-29 as modified, is executed by the parties.
4-30 (c) Denying the petition. If
the court issues an order denying the
4-31 petition, an interested party may file a new petition for approval
of the
4-32 contract if the parties modify the terms of the contract.
4-33 3. The granting of a petition pursuant to this
section:
4-34 (a) Extends to the entire
contract and all of its terms and provisions,
4-35 including, without limitation, any optional or conditional
provisions
4-36 contained in the contract for extension, prolongation or
termination of
4-37 the term of the contract.
4-38 (b) Must not be construed to
constitute an emancipation of the minor.
4-39 Sec. 12. 1. If the court issues an order granting a
petition, the
4-40 court shall immediately issue an order appointing a special
guardian to
4-41 receive and hold the specified amount or percentage of the net
earnings
4-42 of the minor to be set aside for the benefit of the minor pursuant
to
4-43 section 13 of this act.
4-44 2. The petitioner or a parent, custodian or
guardian of the minor is
4-45 not ineligible to be appointed as a special guardian pursuant to
this
4-46 section solely because of his interest, so long as that interest is
fully
4-47 disclosed to the court. A disclosure pursuant to this subsection
must
4-48 include, without limitation, whether the person has an interest:
4-49 (a) In any part of the
earnings of the minor pursuant to the contract;
5-1 (b) As a party to the
contract; or
5-2 (c) As an interested party
to the contract or to the performance of the
5-3 minor pursuant to the contract.
5-4 3. The appointment of a special guardian
pursuant to this section
5-5 expires on the earliest of the following dates:
5-6 (a) The date on which the
contract is terminated.
5-7 (b) The date on which the
minor is emancipated.
5-8 (c) The date on which the
minor reaches the age of majority.
5-9 Sec. 13. 1. At the time of issuing an order appointing a special
5-10 guardian pursuant to section 12 of this act, the court shall fix
and
5-11 include in the order the amount or percentage of the net earnings
of the
5-12 minor to be set aside for the benefit of the minor that the court
5-13 determines is in the best interests of the minor. The amount or
5-14 percentage of the net earnings to be set aside must not be less
than 15
5-15 percent or more than 50 percent of the net earnings.
5-16 2. Any time following the issuance of an order
fixing or modifying
5-17 the amount or percentage of the net earnings to be set aside
pursuant to
5-18 this section:
5-19 (a) Upon the request of the
minor, the special guardian shall move the
5-20 court for an order modifying the amount or percentage of the net
5-21 earnings to be set aside.
5-22 (b) Upon his own initiative,
the special guardian may move the court
5-23 for an order modifying the amount or percentage of the net earnings
to
5-24 be set aside.
5-25 3. The court may grant a motion and modify the
amount or
5-26 percentage of the net earnings to be set aside if the court finds
that,
5-27 because of changed circumstances, modification of the amount or
5-28 percentage of the net earnings to be set aside is in the best
interests of the
5-29 minor.
5-30 4. Upon termination of a contract approved by
the court pursuant to
5-31 sections 2 to 17, inclusive, of this act, the special guardian
shall
5-32 immediately transfer all remaining money that has been received and
5-33 held for the benefit of the minor, together with an accounting of
all
5-34 money that has been collected, disbursed and expended, to:
5-35 (a) The guardian of the
property of the minor, if the minor has not
5-36 reached the age of majority and has not been emancipated.
5-37 (b) The minor, if the minor
has reached the age of majority or has
5-38 been emancipated.
5-39 Sec. 14. 1. During the term of the contract, or during the term of
5-40 any other covenant or condition of the contract, the court that
approved a
5-41 contract pursuant to sections 2 to 17, inclusive, of this act may,
upon its
5-42 own motion or the motion of an interested party and upon finding
that
5-43 the mental, physical or emotional health, safety, morals or
well-being of
5-44 the minor is being impaired by the performance of the contract:
5-45 (a) Revoke its granting of
the petition; or
5-46 (b) Declare its granting of
the petition revoked unless a modification
5-47 of the terms of the contract, which the court finds to be
appropriate
5-48 under the circumstances, is agreed upon by the parties and approved
by
5-49 an order of the court.
6-1 2. An interested party or a guardian ad litem
appointed for the
6-2 purpose by the court may apply for an order of revocation pursuant
to
6-3 this section.
6-4 3. The revocation of the granting of a petition
pursuant to this
6-5 section does not affect any right of action existing on the date of
the
6-6 revocation, except that the court may determine that a refusal to
perform
6-7 on the ground of impairment of the mental, physical or emotional
health,
6-8 safety, morals or well-being of the minor was justified.
6-9 4. The provisions of this section do not create
an exemption to the
6-10 requirements of NRS 41.200.
6-11 Sec. 15. Unless the granting
of a petition has been revoked pursuant
6-12 to section 14 of this act, if a contract that is otherwise valid is
approved
6-13 by the district court by the granting of a petition, a minor may
not,
6-14 during his minority, upon reaching the age of majority or upon his
6-15 emancipation:
6-16 1. Disaffirm the contract on the ground that the
contract was entered
6-17 into during his minority;
6-18 2. Rescind, avoid or repudiate the contract
because of his minority;
6-19 3. Rescind, avoid or repudiate any exercise of a
right or privilege
6-20 pursuant to the contract because of his minority; or
6-21 4. Assert that a parent, custodian or guardian
lacked authority to
6-22 make the contract on his behalf.
6-23 Sec. 16. The determination of
whether to grant or deny a petition, to
6-24 grant or deny a motion to modify the amount or percentage of the net
6-25 earnings of a minor to be set aside, or to grant or deny a motion
for
6-26 revocation of a petition is a matter solely within the discretion
of the
6-27 court and is not subject to appeal.
6-28 Sec. 17. The provisions of
sections 2 to 17, inclusive, of this act do
6-29 not:
6-30 1. Exempt any person from compliance with any
other law
6-31 concerning licenses, consents or authorizations required for any
6-32 conduct, employment, use or exhibition of a minor in this state; or
6-33 2. Limit, in any manner, the discretion of a
licensing authority or
6-34 other persons charged with the administration of licensing
requirements.
~