AB 983: Employee obligations: exclusivity options.
- Session Year: 2021-2022
- House: Assembly
- Latest Version Date: 2022-06-14
Existing law, except as specified, prohibits enforcement of a personal service contract beyond 7 years from the commencement of service under the contract. Under existing law, an employee who is a party to a contract to render personal services in the production of specified phonorecords is prohibited from invoking this provision without first giving written notice to the employer that the employee, from and after a specified date, will no longer render service under the contract by reason of the above provision. Existing law specifies that a party to a contract to render personal services in the production of specified phonorecords may still pursue an action for certain damages.
This bill would authorize any music talent who is a party to a contract to render personal services in the production of specified phonorecords to invoke that limitation by giving written notice and paying a third party any contractual advances actually paid by the third party, as specified. The bill would repeal the provisions related to damages.
This bill would prohibit a contract for the exclusive personal services of a music talent, as defined, from containing a term that includes option periods that extend more than 12 months after the initial commercial release of the applicable music product. The bill would authorize a music talent, if their option has not been formally exercised within that time period, to terminate at any time their personal services agreement by sending notice to the contracting party. The bill, if a music talent willingly renegotiates an existing recording contract with a record company, would deem a new 7-year period to commence on the execution date of such renegotiated recording contract, if it meets prescribed criteria.
This bill would prohibit the waiver of any of its provisions in an individual contract negotiation, a collective bargaining agreement, or other agreement. The bill would provide that it applies to existing and future recording agreements and employment contracts. The bill would provide that it voids any provision in a contract that would deprive an employee or music talent of its protections.
Existing law, except as specified, prohibits enforcement of a personal service contract beyond 7 years from the commencement of service under the contract. Under existing law, an employee who is a party to a contract to render personal services in the production of specified phonorecords is prohibited from invoking this provision without first giving written notice to the employer that the employee, from and after a specified date, will no longer render service under the contract by reason of the above provision. Existing law specifies that a party to a contract to render personal services in the production of specified phonorecords may still pursue an action for certain damages.
This bill would authorize any music talent who is a party to a contract to render personal services in the production of specified phonorecords to invoke that limitation by giving written notice and paying a third party any contractual advances actually paid by the third party, as specified. The bill would repeal the provisions related to damages.
This bill would prohibit a contract for the exclusive personal services of a music talent, as defined, from containing a term that includes option periods that extend more than 12 months after the initial commercial release of the applicable music product. The bill would authorize a music talent, if their option has not been formally exercised within that time period, to terminate at any time their personal services agreement by sending notice to the contracting party. The bill, if a music talent willingly renegotiates an existing recording contract with a record company, would deem a new 7-year period to commence on the execution date of such renegotiated recording contract, if it meets prescribed criteria.
This bill would prohibit the waiver of any of its provisions in an individual contract negotiation, a collective bargaining agreement, or other agreement. The bill would provide that it applies to existing and future recording agreements and employment contracts. The bill would provide that it voids any provision in a contract that would deprive an employee or music talent of its protections.
Existing law, the State Contract Act, governs state contracts for public works projects and, among other things, generally requires public notice of a project, the submission of bids, and the award of a contract to the lowest responsible bidder, as provided. Existing law authorizes a public entity to use, enter into, or require contractors to enter into, project labor agreements for construction projects if the agreement meets specified requirements. Existing law additionally authorizes a public entity to require a bidder, contractor, or other entity to use a skilled and trained workforce, as defined, to complete contracts or projects.Existing law requires the California Workforce Development Board to report to the Legislature on the need for workforce development resources, including the use of community workforce agreements, among other things, to help industry, workers, and communities transition to economic and labor-market changes related to statewide greenhouse gas emissions reduction goals.This bill would authorize a public entity to use, enter into, or require contractors to enter into, a community workforce agreement, as defined, for construction projects related to battery manufacturing and lithium-based technology in the Salton Sea geothermal resource area.Existing law, the State Contract Act, governs state contracts for public works projects and, among other things, generally requires public notice of a project, the submission of bids, and the award of a contract to the lowest responsible bidder, as provided. Existing law authorizes a public entity to use, enter into, or require contractors to enter into, project labor agreements for construction projects if the agreement meets specified requirements. Existing law additionally authorizes a public entity to require a bidder, contractor, or other entity to use a skilled and trained workforce, as defined, to complete contracts or projects.
Existing law requires the California Workforce Development Board to report to the Legislature on the need for workforce development resources, including the use of community workforce agreements, among other things, to help industry, workers, and communities transition to economic and labor-market changes related to statewide greenhouse gas emissions reduction goals.
This bill would authorize a public entity to use, enter into, or require contractors to enter into, a community workforce agreement, as defined, for construction projects related to battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.
Existing law, the State Contract Act, governs state contracts for public works projects and, among other things, generally requires public notice of a project, the submission of bids, and the award of a contract to the lowest responsible bidder, as provided. Existing law authorizes a public entity to use, enter into, or require contractors to enter into, project labor agreements for construction projects if the agreement meets specified requirements. Existing law additionally authorizes a public entity to require a bidder, contractor, or other entity to use a skilled and trained workforce, as defined, to complete contracts or projects.
Existing law requires the California Workforce Development Board to report to the Legislature on the need for workforce development resources, including the use of community workforce agreements, among other things, to help industry, workers, and communities transition to economic and labor-market changes related to statewide greenhouse gas emissions reduction goals.
This bill would authorize a public entity to use, enter into, or require contractors to enter into, a community workforce agreement agreement, as defined, for specified construction projects, including projects related to renewable energy and installation of emission controls in refineries. projects related to battery manufacturing and lithium-based technology.
Existing law, the State Contract Act, governs state contracts for public works projects and, among other things, generally requires public notice of a project, the submission of bids, and the award of a contract to the lowest responsible bidder, as provided. Existing law authorizes a public entity to use, enter into, or require contractors to enter into, project labor agreements for construction projects if the agreement meets specified requirements. Existing law additionally authorizes a public entity to require a bidder, contractor, or other entity to use a skilled and trained workforce, as defined, to complete contracts or projects.
Existing law requires the California Workforce Development Board to report to the Legislature on the need for workforce development resources, including the use of community workforce agreements, among other things, to help industry, workers, and communities transition to economic and labor-market changes related to statewide greenhouse gas emissions reduction goals.
This bill would authorize a public entity to use, enter into, or require contractors to enter into, a community workforce agreement for specified construction projects, including projects related to renewable energy and installation of emission controls in refineries.
(a)For purposes of this section:
(1)Music product means a phonorecord or sound recording, as defined in Section 101 of Title 17 of the United States Code.
(2)Music talent means a person engaged in the creation of music product.
(3)Separate royalty account means a new royalty account which is in no way connected or cross-collateralized with the music talents existing royalty account.(b)Except as otherwise provided, a contract to render personal service, other than a contract of apprenticeship as provided in Chapter 4 (commencing with Section 3070), shall not be enforced against the employee beyond seven years from the commencement of service under it. Any contract, otherwise valid, to perform or render service of a special, unique, unusual, extraordinary, or intellectual character, which gives it peculiar value and the loss of which cannot be reasonably or adequately compensated in damages in an action at law, may nevertheless be enforced against the person contracting to render the service, for a term not to exceed seven years from the commencement of service under the contract. If the employee voluntarily continues to serve under the contract beyond that time, the contract may be referred to as affording a presumptive measure of the compensation.
(c)Notwithstanding subdivision (b), any music talent who is a party to a contract to render personal service in the production of phonorecords in which sounds are first fixed, as defined in Section 101 of Title 17 of the United States Code, may invoke the provisions of subdivision (b) by doing both of the following:
(1)Giving written notice to the party to whom such personal services are rendered that the music talent will no longer render service under the contract by reason of subdivision (b).
(2)Paying the third party an amount equal to the contractual advances actually paid by the third party to the music talent that are directly and solely related to phonorecords that have not been received by the third party, provided that the amount shall be credited to the music talents existing royalty account.
(d)(1)A contract for the exclusive personal services of a music talent shall not contain a term that includes option periods that extend more than 12 months after the initial commercial release of the applicable music product.
(2)If a music talents option has not been formally exercised within the time period specified in paragraph (1), a music talent, at any time, may terminate their personal services agreement by sending notice to the contracting party.
(e)If a music talent willingly renegotiates an existing recording contract with a record company, a new seven-year period, as described in subdivision (b), shall be deemed to commence on the execution date of such renegotiated recording contract, if the renegotiated contract meets the following criteria:(1)The renegotiated contract provides for a separate royalty account for the music product delivered by the music talent during the term of the renegotiated contract.(2)The renegotiated contract, both financial and otherwise, provides a material improvement from the existing recording contract. (f)(e)No part of this section may be waived in an individual contract negotiation, a collective bargaining agreement, or other agreement.
(g)This section shall apply to existing and future recording agreements and employment contracts. (h)(f)Any provision in a contract that would deprive an employee or music talent of the protections of this section shall be void.
(a)Except For purposes of this section:
(1)Music product means a phonorecord or sound recording, as defined in Section 101 of Title 17 of the United States Code.
(2)Music talent means a person engaged in the creation of music product.
(3)Separate royalty account means a new royalty account which is in no way connected or cross-collateralized with the music talents existing royalty account.
(b)Except as otherwise provided in subdivision (b), provided, a contract to render personal service, other than a contract of apprenticeship as provided in Chapter 4 (commencing with Section 3070), may shall not be enforced against the employee beyond seven years from the commencement of service under it. Any contract, otherwise valid, to perform or render service of a special, unique, unusual, extraordinary, or intellectual character, which gives it peculiar value and the loss of which cannot be reasonably or adequately compensated in damages in an action at law, may nevertheless be enforced against the person contracting to render the service, for a term not to exceed seven years from the commencement of service under it. the contract. If the employee voluntarily continues to serve under it the contract beyond that time, the contract may be referred to as affording a presumptive measure of the compensation.
(b)Notwithstanding subdivision (a):(1)Any employee who is a party to a contract to render personal service in the production of phonorecords in which sounds are first fixed, as defined in Section 101 of Title 17 of the United States Code, may not invoke the provisions of subdivision (a) without first giving written notice to the employer in accordance with Section 1020 of the Code of Civil Procedure, specifying that the employee from and after a future date certain specified in the notice will no longer render service under the contract by reason of subdivision (a).(2)Any party to a contract described in paragraph (1) shall have the right to recover damages for a breach of the contract occurring during its term in an action commenced during or after its term, but within the applicable period prescribed by law.(3)If a party to a contract described in paragraph (1) is, or could contractually be, required to render personal service in the production of a specified quantity of the phonorecords and fails to render all of the required service prior to the date specified in the notice provided in paragraph (1), the party damaged by the failure shall have the right to recover damages for each phonorecord as to which that party has failed to render service in an action that, notwithstanding paragraph (2), shall be commenced within 45 days after the date specified in the notice.(c)Notwithstanding subdivision (b), any music talent who is a party to a contract to render personal service in the production of phonorecords in which sounds are first fixed, as defined in Section 101 of Title 17 of the United States Code, may invoke the provisions of subdivision (b) by doing both of the following:
(1)Giving written notice to the party to whom such personal services are rendered that the music talent will no longer render service under the contract by reason of subdivision (b).
(2)Paying the third party an amount equal to the contractual advances actually paid by the third party to the music talent that are directly and solely related to phonorecords that have not been received by the third party, provided that the amount shall be credited to the music talents existing royalty account.
(d)(1)A contract for the exclusive personal services of a music talent shall not contain a term that includes option periods that extend more than 12 months after the initial commercial release of the applicable music product.
(2)If a music talents option has not been formally exercised within the time period specified in paragraph (1), a music talent, at any time, may terminate their personal services agreement by sending notice to the contracting party.
(e)If a music talent willingly renegotiates an existing recording contract with a record company, a new seven-year period, as described in subdivision (b), shall be deemed to commence on the execution date of such renegotiated recording contract, if the renegotiated contract meets the following criteria:
(1)The renegotiated contract provides for a separate royalty account for the music product delivered by the music talent during the term of the renegotiated contract.
(2)The renegotiated contract, both financial and otherwise, provides a material improvement from the existing recording contract.
(f)No part of this section may be waived in an individual contract negotiation, a collective bargaining agreement, or other agreement.
(g)This section shall apply to existing and future recording agreements and employment contracts.
(h)Any provision in a contract that would deprive an employee or music talent of the protections of this section shall be void.
SECTION 1.Chapter 2.6 (commencing with Section 2100) is added to Part 1 of Division 2 of the Public Contract Code, to read:2.6.Community Workforce Agreements2100.The Legislature finds and declares all of the following:(a)World demand for lithium is expected to grow as much as tenfold in the next decade, but virtually none is produced in the United States. Almost all of the global lithium supply is currently mined in Argentina, Australia, Chile, and China.(b)The Salton Sea geothermal resource area, Lithium Valley is well-positioned to become a competitive source of lithium supply that could satisfy more than one-third of todays worldwide lithium demand.(c)Establishing a sustainable domestic battery manufacturing ecosystem, embedded in Lithium Valley, will not only support the transition to electrified transportation, but help California meet its climate goals, and serve as a vital source for critical minerals essential to economic and national security. (d)Executive Order N-79-20 (2020) states that a sustainable and inclusive economic future for California will require retaining and creating high-road, high-quality jobs through sustained engagement with communities, workers and industries in changing and growing industries.(e)Community Workforce Agreements (CWAs) have a proven track record of ensuring job quality and job access, and securing robust training pathways in the construction trades.(f)CWAs are currently used in the construction of utility-scale renewable energy projects, public transit and high-speed rail infrastructure, and several large-scale construction projects funded by the Greenhouse Gas Reduction Fund. (g)It is the intent of the Legislature to expand the use of CWAs on climate investments involving battery manufacturing and lithium-based technology in the Salton Sea geothermal resource area.2101.(a)A public entity may use, enter into, or require contractors to enter into, a community workforce agreement for a construction project related to battery manufacturing and lithium-based technology in the Salton Sea geothermal resource area.(b)For purposes of this chapter, public entity means a public entity as defined in Section 1100.(c)For purposes of this chapter, community workforce agreement means an agreement that meets the requirements of Section 2500 and includes all of the following:(1)A linguistically and technically accessible participatory process by which local area residents identify provisions to promote social investments, employment, and career opportunities for economically disadvantaged communities. (2)Mechanisms to involve members of the impacted communities throughout the implementation and monitoring process of the agreement.(3)Pathways for individuals of minority and low-income groups to access apprenticeships and employment opportunities.(d)This chapter shall apply only to the extent permissible under state and federal law.The Legislature finds and declares all of the following:
(a)World demand for lithium is expected to grow as much as tenfold in the next decade, but virtually none is produced in the United States. Almost all of the global lithium supply is currently mined in Argentina, Australia, Chile, and China.
(b)The Salton Sea geothermal resource area, Lithium Valley is well-positioned to become a competitive source of lithium supply that could satisfy more than one-third of todays worldwide lithium demand.
(c)Establishing a sustainable domestic battery manufacturing ecosystem, embedded in Lithium Valley, will not only support the transition to electrified transportation, but help California meet its climate goals, and serve as a vital source for critical minerals essential to economic and national security.
(d)Executive Order N-79-20 (2020) states that a sustainable and inclusive economic future for California will require retaining and creating high-road, high-quality jobs through sustained engagement with communities, workers and industries in changing and growing industries.
(e)Community Workforce Agreements (CWAs) have a proven track record of ensuring job quality and job access, and securing robust training pathways in the construction trades.
(f)CWAs are currently used in the construction of utility-scale renewable energy projects, public transit and high-speed rail infrastructure, and several large-scale construction projects funded by the Greenhouse Gas Reduction Fund.
(g)It is the intent of the Legislature to expand the use of CWAs on climate investments involving battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.
2101.(a)A public entity may use, enter into, or require contractors to enter into, a community workforce agreement for a construction project related to battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.
(b)For purposes of this chapter, public entity means a public entity as defined in Section 1100.
(c)For purposes of this chapter, community workforce agreement means an agreement that meets the requirements of Section 2500 and includes a all of the following:
(1)A linguistically and technically accessible participatory process by which local area residents identify provisions to promote social investments, employment, and career opportunities for economically disadvantaged communities.
(2)Mechanisms to involve members of the impacted communities throughout the implementation and monitoring process of the agreement.
(3)Pathways for individuals of minority and low-income groups to access apprenticeships and employment opportunities.
(d)This chapter shall apply only to the extent permissible under state and federal law.
The Legislature finds and declares all of the following:
(a)World demand for lithium is expected to grow as much as tenfold in the next decade, but virtually none is produced in the United States. Almost all of the global lithium supply is currently mined in Argentina, Australia, Chile, and China.
(b)The Salton Sea geothermal resource area, Lithium Valley is well-positioned to become a competitive source of lithium supply that could satisfy more than one-third of todays worldwide lithium demand.
(c)Establishing a sustainable domestic battery manufacturing ecosystem, embedded in Lithium Valley, will not only support the transition to electrified transportation, but help California meet its climate goals, and serve as a vital source for critical minerals essential to economic and national security.
(a)(d)Executive Order N-79-20 (2020) states that a sustainable and inclusive economic future for California will require retaining and creating high-road, high-quality jobs through sustained engagement with communities, workers and industries in changing and growing industries.
(b)(e)Community Workforce Agreements (CWAs) have a proven track record of ensuring job quality and job access, and securing robust training pathways in the construction trades.
(c)(f)CWAs are currently used in the construction of utility-scale renewable energy projects, public transit and high-speed rail infrastructure, and several large-scale construction projects funded by the Greenhouse Gas Reduction Fund.
(d)Executive Order N-79-20 (2020) requires the Labor and Workforce Development Agency and the Office of Planning and Research to, by July 15, 2021, develop and implement a Just Transition Roadmap that is consistent with the recommendations in the report Putting California on the High Road: A Jobs and Climate Action Plan for 2030, developed pursuant to Chapter 135 of the Statutes of 2017. (e)(g)It is the intent of the Legislature to expand the use of CWAs on climate investments involving large-scale construction projects. battery manufacturing and lithium-based technology.
2101.(a)A public entity may use, enter into, or require contractors to enter into, a community workforce agreement for a construction project related to any of the following: battery manufacturing and lithium-based technology.
(1)Renewable energy.(2)Energy efficiency retrofits.(3)Electric vehicle charging infrastructure and transit infrastructure projects.(4)Installation of emission controls in refineries.(5)Leakage abatement in oil and gas distribution.(6)Waste and water infrastructure.(b)For purposes of this chapter, public entity means a public entity as defined in Section 1100.
(c)For purposes of this chapter, community workforce agreement means an agreement that meets the requirements of Section 2500 and includes a linguistically and technically accessible participatory process by which local area residents identify provisions to promote social investments, employment, and career opportunities for economically disadvantaged communities.
(c)(d)This chapter shall apply only to the extent permissible under state and federal law.
The Legislature finds and declares all of the following:
(a)Executive Order N-79-20 (2020) states that a sustainable and inclusive economic future for California will require retaining and creating high-road, high-quality jobs through sustained engagement with communities, workers and industries in changing and growing industries.
(b)Community Workforce Agreements (CWAs) have a proven track record of ensuring job quality and job access, and securing robust training pathways in the construction trades.
(c)CWAs are currently used in the construction of utility-scale renewable energy projects, public transit and high-speed rail infrastructure, and several large-scale construction projects funded by the Greenhouse Gas Reduction Fund.
(d)Executive Order N-79-20 (2020) requires the Labor and Workforce Development Agency and the Office of Planning and Research to, by July 15, 2021, develop and implement a Just Transition Roadmap that is consistent with the recommendations in the report Putting California on the High Road: A Jobs and Climate Action Plan for 2030, developed pursuant to Chapter 135 of the Statutes of 2017.
(e)It is the intent of the Legislature to expand the use of CWAs on climate investments involving large-scale construction projects.
2101.(a)A public entity may use, enter into, or require contractors to enter into, a community workforce agreement for a construction project related to any of the following:
(1)Renewable energy.
(2)Energy efficiency retrofits.
(3)Electric vehicle charging infrastructure and transit infrastructure projects.
(4)Installation of emission controls in refineries.
(5)Leakage abatement in oil and gas distribution.
(6)Waste and water infrastructure.
(b)For purposes of this chapter, public entity means a public entity as defined in Section 1100.
(c)This chapter shall apply only to the extent permissible under state and federal law.
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Date
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Status
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| Jun 23, 2022 | From committee: Do pass and re-refer to Com. on JUD. (Ayes 3. Noes 1.) (June 22). Re-referred to Com. on JUD. |
| Jun 14, 2022 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L., P.E. & R. |
| May 18, 2022 | Re-referred to Coms. on L., P.E. & R. and JUD. |
| May 9, 2022 | Re-referred to Com. on RLS. |
| May 5, 2022 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on GOV. & F. |
| Jun 30, 2021 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Jun 22, 2021 | From committee: Do pass and re-refer to Com. on GOV. & F. (Ayes 11. Noes 3.) (June 22). Re-referred to Com. on GOV. & F. |
| Jun 15, 2021 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on G.O. |
| May 27, 2021 | Referred to Coms. on G.O. and GOV. & F. |
| May 13, 2021 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 13, 2021 | Read third time. Passed. Ordered to the Senate. (Ayes 57. Noes 13. Page 1401.) |
| May 6, 2021 | Read second time. Ordered to third reading. |
| May 5, 2021 | From committee: Do pass. (Ayes 12. Noes 3.) (May 5). |
| Apr 26, 2021 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 1.) (April 22). Re-referred to Com. on APPR. |
| Apr 13, 2021 | Re-referred to Com. on L. & E. |
| Apr 12, 2021 | From committee chair, with author's amendments: Amend, and re-refer to Com. on L. & E. Read second time and amended. |
| Mar 4, 2021 | Referred to Com. on L. & E. |
| Feb 19, 2021 | From printer. May be heard in committee March 21. |
| Feb 18, 2021 | Read first time. To print. |
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Date
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Description
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Location
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Votes
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| May 13, 2021 | AB 983 Eduardo Garcia Assembly Third Reading | Assembly Floor |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
Bill Co-Author(s):