Section 1700.25 Of Article 3. Operation And Management From California Labor Code >> Division 2. >> Part 6. >> Chapter 4. >> Article 3.
1700.25
. (a) A licensee who receives any payment of funds on behalf
of an artist shall immediately deposit that amount in a trust fund
account maintained by him or her in a bank or other recognized
depository. The funds, less the licensee's commission, shall be
disbursed to the artist within 30 days after receipt. However,
notwithstanding the preceding sentence, the licensee may retain the
funds beyond 30 days of receipt in either of the following
circumstances:
(1) To the extent necessary to offset an obligation of the artist
to the talent agency that is then due and owing.
(2) When the funds are the subject of a controversy pending before
the Labor Commissioner under Section 1700.44 concerning a fee
alleged to be owed by the artist to the licensee.
(b) A separate record shall be maintained of all funds received on
behalf of an artist and the record shall further indicate the
disposition of the funds.
(c) If disputed by the artist and the dispute is referred to the
Labor Commissioner, the failure of a licensee to disburse funds to an
artist within 30 days of receipt shall constitute a "controversy"
within the meaning of Section 1700.44.
(d) Any funds specified in subdivision (a) that are the subject of
a controversy pending before the Labor Commissioner under Section
1700.44 shall be retained in the trust fund account specified in
subdivision (a) and shall not be used by the licensee for any purpose
until the controversy is determined by the Labor Commissioner or
settled by the parties.
(e) If the Labor Commissioner finds, in proceedings under Section
1700.44, that the licensee's failure to disburse funds to an artist
within the time required by subdivision (a) was a willful violation,
the Labor Commissioner may, in addition to other relief under Section
1700.44, order the following:
(1) Award reasonable attorney's fees to the prevailing artist.
(2) Award interest to the prevailing artist on the funds
wrongfully withheld at the rate of 10 percent per annum during the
period of the violation.
(f) Nothing in subdivision (c), (d), or (e) shall be deemed to
supersede Section 1700.45 or to affect the enforceability of a
contractual arbitration provision meeting the criteria of Section
1700.45.