Talent Agents, Part 3
The Present State of Affairs

©1987, 1996 Green & Green and Beverly Robin Green All Rights Reserved

The 1984 trial amendments were renewed by further amendment in 1984 and then terminated automatically by their own sunset provisions, effective January 1, 1986, which brings us back to the latest amendments to the Talent Agency Act. The current version of the Talent Agency Act is the product of AB 3649. Although this bill was enacted on July 24, 1986, the most controversial amendments (Section 1700.4 (a) and 1700.44 (c) and (d)) were made retroactive to January 1, 1986, the same date the sunset provisions on the earlier versions of these amendments had expired. From January 1, 1986 until July 24, 1986, the law was in limbo as to who could legally procure record contracts for artists in California. Although the reenacted provisions were made retroactive to January 1, 1986.

So, to clarify the legislative intent not to let the provisions lapse, between January 1, 1986, when the provisions did lapse, and July 24, 1986, when the activity of procuring recording contracts was once again deregulated, could it be assumed that only licensed "talent agencies" could legally procure recording contracts for artists? What of unlicensed managers who sent artists away for record deals, only to find out in July that they could have legally procured such a deal? Could an artist, one of the protected class under the Act, seek to void an agreement with an unlicensed manager who procured a record contract for the artist during the first half of 1986? Could the artist argue that the unlicensed manager acted willfully against the expired statute? Could the manager argue that he relied on word that the bill would be signed retroactively? Would the unlicensed manager who, relying on the letter of the law in the interim period, obtained a license, bond, office acceptable to the Labor Commissioner, and otherwise subjected himself to licensing and regulation under the Act, have a claim for these now unnecessary expenses, when he only wanted to legally procure a record contract for an artist?

These and other questions were created by the legislative limbo in 1986. This flip-flopping of the legislature caused confusion and anxiety in the entertainment industry among personal managers (and lawyers) who, relying on the text of the Talent Agency Act as it read on January 1, 1986, had to decide whether to subject themselves to licensing and regulation under the Act or avoid involvement with the negotiation of recording contracts for artists with whose careers they were so personally involved.

CALIFORNIA ENTERTAINMENT COMMISSION. One might wonder why the legislature and governor of the great State of California allowed the experimental amendments to expire before reenacting them as retroactive permanent provisions of the Talent Agency Act. As a leader in the entertainment industry, California must be and remain clear in its legislative intent. In the 1982 amendments the California legislature also enacted sunset provisions establishing the California Entertainment Commission which was to study the 1982 amendments and to prepare a report containing recommended changes to the governor. This was to be completed by January 1, 1986, which does not seem to have allowed time for the legislature to react to the Commission's Report before the amendments were to lapse.

TODAY the law is that a talent agent is defined as: "§ 1700.4....a person or corporation who engages in the occupation of procuring, offering, promising, or attempting to procure employment or engagements for an artist or artists, except that the activities of procuring, offering, or promising to procure recording contracts for an artist or artists shall not of itself subject a person or corporation to regulation and licensing under this chapter. Talent agencies may, in addition, counsel or direct artists in the development of their professional careers.
(b) "Artists" means actors and actresses rendering services on the legitimate stage and in the production of motion pictures, radio artists, musical artists, musical organizations, directors of legitimate stage, motion picture and radio productions, musical directors, writers, cinematographers, composers, lyricists, arrangers, models, and other artists and persons rendering professional services in motion picture, theatrical, radio, television and other entertainment enterprises."
Stats 1986 ch 488 §2.

A curious way of defining such an important representative. See How to Become a Talent Agent.