2009 California Family Code - Section 6750-6753 :: Chapter 3. Contracts In Art, Entertainment, And Professional Sports

6750.  (a) This chapter applies to the following contracts entered
into between an unemancipated minor and any third party or parties on
or after January 1, 2000:
   (1) A contract pursuant to which a minor is employed or agrees to
render artistic or creative services, either directly or through a
third party, including, but not limited to, a personal services
corporation (loan-out company), or through a casting agency.
"Artistic or creative services" includes, but is not limited to,
services as an actor, actress, dancer, musician, comedian, singer,
stunt-person, voice-over artist, or other performer or entertainer,
or as a songwriter, musical producer or arranger, writer, director,
producer, production executive, choreographer, composer, conductor,
or designer.
   (2) A contract pursuant to which a minor agrees to purchase, or
otherwise secure, sell, lease, license, or otherwise dispose of
literary, musical, or dramatic properties, or use of a person's
likeness, voice recording, performance, or story of or incidents in
his or her life, either tangible or intangible, or any rights therein
for use in motion pictures, television, the production of sound
recordings in any format now known or hereafter devised, the
legitimate or living stage, or otherwise in the entertainment field.
   (3) A contract pursuant to which a minor is employed or agrees to
render services as a participant or player in a sport.
   (b) (1) If a minor is employed or agrees to render services
directly for any person or entity, that person or entity shall be
considered the minor's employer for purposes of this chapter.
   (2) If a minor's services are being rendered through a third-party
individual or personal services corporation (loan-out company), the
person to whom or entity to which that third party is providing the
minor's services shall be considered the minor's employer for
purposes of this chapter.
   (3) If a minor renders services as an extra, background performer,
or in a similar capacity through an agency or service that provides
one or more of those performers for a fee (casting agency), the
agency or service shall be considered the minor's employer for the
purposes of this chapter.
   (c) (1) For purposes of this chapter, the minor's "gross earnings"
shall mean the total compensation payable to the minor under the
contract or, if the minor's services are being rendered through a
third-party individual or personal services corporation (loan-out
company), the total compensation payable to that third party for the
services of the minor.
   (2) Notwithstanding paragraph (1), with respect to contracts
pursuant to which a minor is employed or agrees to render services as
a musician, singer, songwriter, musical producer, or arranger only,
for purposes of this chapter, the minor's "gross earnings" shall mean
the total amount paid to the minor pursuant to the contract,
including the payment of any advances to the minor pursuant to the
contract, but excluding deductions to offset those advances or other
expenses incurred by the employer pursuant to the contract, or, if
the minor's services are being rendered through a third-party
individual or personal services corporation (loan-out company), the
total amount payable to that third party for the services of the
minor.

6751.  (a) A contract, otherwise valid, of a type described in
Section 6750, entered into during minority, cannot be disaffirmed on
that ground either during the minority of the person entering into
the contract, or at any time thereafter, if the contract has been
approved by the superior court in any county in which the minor
resides or is employed or in which any party to the contract has its
principal office in this state for the transaction of business.
   (b) Approval of the court may be given on petition of any party to
the contract, after such reasonable notice to all other parties to
the contract as is fixed by the court, with opportunity to such other
parties to appear and be heard.
   (c) Approval of the court given under this section extends to the
whole of the contract and all of its terms and provisions, including,
but not limited to, any optional or conditional provisions contained
in the contract for extension, prolongation, or termination of the
term of the contract.
   (d) For the purposes of any proceeding under this chapter, a
parent or legal guardian, as the case may be, entitled to the
physical custody, care, and control of the minor at the time of the
proceeding shall be considered the minor's guardian ad litem for the
proceeding, unless the court shall determine that appointment of a
different individual as guardian ad litem is required in the best
interests of the minor.

6752.  (a) A parent or guardian entitled to the physical custody,
care, and control of a minor who enters into a contract of a type
described in Section 6750 shall provide a certified copy of the minor'
s birth certificate indicating the minor's minority to the other
party or parties to the contract and in addition, in the case of a
guardian, a certified copy of the court document appointing the
person as the minor's legal guardian.
   (b) (1) Notwithstanding any other statute, in an order approving a
minor's contract of a type described in Section 6750, the court
shall require that 15 percent of the minor's gross earnings pursuant
to the contract be set aside by the minor's employer in trust, in an
account or other savings plan, and preserved for the benefit of the
minor in accordance with Section 6753.
   (2) The court shall require that at least one parent or legal
guardian, as the case may be, entitled to the physical custody, care,
and control of the minor at the time the order is issued be
appointed as trustee of the funds ordered to be set aside in trust
for the benefit of the minor, unless the court shall determine that
appointment of a different individual, individuals, entity, or
entities as trustee or trustees is required in the best interest of
the minor.
   (3) Within 10 business days after commencement of employment, the
trustee or trustees of the funds ordered to be set aside in trust
shall provide the minor's employer with a true and accurate photocopy
of the trustee's statement pursuant to Section 6753. Upon
presentation of the trustee's statement offered pursuant to this
subdivision, the employer shall provide the parent or guardian with a
written acknowledgement of receipt of the statement.
   (4) The minor's employer shall deposit or disburse the 15 percent
of the minor's gross earnings pursuant to the contract within 15
business days after receiving a true and accurate copy of the trustee'
s statement pursuant to subdivision (c) of Section 6753, a certified
copy of the minor's birth certificate, and, in the case of a
guardian, a certified copy of the court document appointing the
person as the minor's guardian. Notwithstanding any other provision
of law, pending receipt of these documents, the minor's employer
shall hold, for the benefit of the minor, the 15 percent of the minor'
s gross earnings pursuant to the contract.
   (5) When making the initial deposit of funds, the minor's employer
shall provide written notification to the financial institution or
company that the funds are subject to Section 6753. Upon receipt of
the court order, the minor's employer shall provide the financial
institution with a copy of the order.
   (6) Once the minor's employer deposits the set aside funds
pursuant to Section 6753, in trust, in an account or other savings
plan, the minor's employer shall have no further obligation or duty
to monitor or account for the funds. The trustee or trustees of the
trust shall be the only individual, individuals, entity, or entities
with the obligation or duty to monitor and account for those funds
once they have been deposited by the minor's employer. The trustee or
trustees shall do an annual accounting of the funds held in trust,
in an account or other savings plan, in accordance with Sections
16062 and 16063 of the Probate Code.
   (7) The court shall have continuing jurisdiction over the trust
established pursuant to the order and may at any time, upon petition
of the parent or legal guardian, the minor, through his or her
guardian ad litem, or the trustee or trustees, on good cause shown,
order that the trust be amended or terminated, notwithstanding the
provisions of the declaration of trust. An order amending or
terminating a trust may be made only after reasonable notice to the
beneficiary and, if the beneficiary is then a minor, to the parent or
guardian, if any, and to the trustee or trustees of the funds with
opportunity for all parties to appear and be heard.
   (8) A parent or guardian entitled to the physical custody, care,
and control of the minor shall promptly notify the minor's employer
in writing of any change in facts that affect the employer's
obligation or ability to set aside the funds in accordance with the
order, including, but not limited to, a change of financial
institution or account number, or the existence of a new or amended
order issued pursuant to paragraph (7) amending or terminating the
employer's obligations under this section. The written notification
shall be accompanied by a true and accurate photocopy of the trustee'
s statement pursuant to Section 6753 and, if applicable, a true and
accurate photocopy of the new or amended order.
   (9) (A) If a parent, guardian, or trustee fails to provide the
minor's employer with a true and accurate photocopy of the trustee's
statement pursuant to Section 6753 within 180 days after the
commencement of employment, the employer shall forward to The Actors'
Fund of America 15 percent of the minor's gross earnings pursuant to
the contract, together with the minor's name and, if known, the
minor's social security number, birth date, last known address,
telephone number, e-mail address, dates of employment, and title of
the project on which the minor was employed, and shall notify the
parent, guardian, or trustee of that transfer by certified mail to
the last known address. Upon receipt of those forwarded funds, The
Actors' Fund of America shall become the trustee of those funds and
the minor's employer shall have no further obligation or duty to
monitor or account for the funds.
   (B) The Actors' Fund of America shall make its best efforts to
notify the parent, guardian, or trustee of their responsibilities to
provide a true and accurate photocopy of the trustee's statement
pursuant to Section 6753, and in the case of a guardian, a certified
copy of the court document appointing the person as the minor's legal
guardian. Within 15 business days after receiving those documents,
The Actors' Fund of America shall deposit or disburse the funds as
directed by the trustee's statement. When making that deposit or
disbursal of the funds, The Actors' Fund of America shall provide to
the financial institution notice that the funds are subject to
Section 6753 and a copy of each applicable order, and shall
thereafter have no further obligation or duty to monitor or account
for the funds.
   (c) The Actors' Fund of America shall notify each beneficiary of
his or her entitlement to the funds that it holds for the beneficiary
within 60 days after the date on which its records indicated that
the beneficiary has attained 18 years of age or the date on which it
received notice that the minor has been emancipated, by sending that
notice to the last known address for the beneficiary or, if it has no
specific separate address for the beneficiary, to the beneficiary's
parent or guardian.
   (d) (1) Notwithstanding any other statute, for any minor's
contract of a type described in Section 6750 that is not being
submitted for approval by the court pursuant to Section 6751, or for
which the court has issued a final order denying approval, 15 percent
of the minor's gross earnings pursuant to the contract shall be set
aside by the minor's employer in trust, in an account or other
savings plan, and preserved for the benefit of the minor in
accordance with Section 6753. At least one parent or legal guardian,
as the case may be, entitled to the physical custody, care, and
control of the minor, shall be the trustee of the funds set aside for
the benefit of the minor, unless the court, upon petition by the
parent or legal guardian, the minor, through his or her guardian ad
litem, or the trustee or trustees of the trust, shall determine that
appointment of a different individual, individuals, entity, or
entities as trustee or trustees is required in the best interest of
the minor.
   (2) Within 10 business days of commencement after employment, a
parent or guardian, as the case may be, entitled to the physical
custody, care, and control of the minor shall provide the minor's
employer with a true and accurate photocopy of the trustee's
statement pursuant to Section 6753 and in addition, in the case of a
guardian, a certified copy of the court document appointing the
person as the minor's legal guardian. Upon presentation of the
trustee's statement offered pursuant to this subdivision, the
employer shall provide the parent or guardian with a written
acknowledgement of receipt of the statement.
   (3) The minor's employer shall deposit 15 percent of the minor's
gross earnings pursuant to the contract within 15 business days of
receiving the trustee's statement pursuant to Section 6753, or if the
court denies approval of the contract, within 15 business days of
receiving a final order denying approval of the contract.
Notwithstanding any other statute, pending receipt of the trustee's
statement or the final court order, the minor's employer shall hold
for the benefit of the minor the 15 percent of the minor's gross
earnings pursuant to the contract. When making the initial deposit of
funds, the minor's employer shall provide written notification to
the financial institution or company that the funds are subject to
Section 6753.
   (4) Once the minor's employer deposits the set aside funds in
trust, in an account or other savings plan pursuant to Section 6753,
the minor's employer shall have no further obligation or duty to
monitor or account for the funds. The trustee or trustees of the
trust shall be the only individual, individuals, entity, or entities
with the obligation or duty to monitor and account for those funds
once they have been deposited by the minor's employer. The trustee or
trustees shall do an annual accounting of the funds held in trust,
in an account or other savings plan, in accordance with Sections
16062 and 16063 of the Probate Code.
   (5) Upon petition of the parent or legal guardian, the minor,
through his or her guardian ad litem, or the trustee or trustees of
the trust, to the superior court in any county in which the minor
resides or in which the trust is established, the court may at any
time, on good cause shown, order that the trust be amended or
terminated, notwithstanding the provisions of the declaration of
trust. An order amending or terminating a trust may be made only
after reasonable notice to the beneficiary and, if the beneficiary is
then a minor, to the parent or guardian, if any, and to the trustee
or trustees of the funds with opportunity for all parties to appear
and be heard.
   (6) A parent or guardian entitled to the physical custody, care,
and control of the minor shall promptly notify the minor's employer
in writing of any change in facts that affect the employer's
obligation or ability to set aside funds for the benefit of the minor
in accordance with this section, including, but not limited to, a
change of financial institution or account number, or the existence
of a new or amended order issued pursuant to paragraph (5) amending
or terminating the employer's obligations under this section. The
written notification shall be accompanied by a true and accurate
photocopy of the trustee's statement and attachments pursuant to
Section 6753 and, if applicable, a true and accurate photocopy of the
new or amended order.
   (7) (A) If a parent, guardian, or trustee fails to provide the
minor's employer with a true and accurate photocopy of the trustee's
statement pursuant to Section 6753, within 180 days after
commencement of employment, the employer shall forward to The Actors'
Fund of America the 15 percent of the minor's gross earnings
pursuant to the contract, together with the minor's name and, if
known, the minor's social security number, birth date, last known
address, telephone number, e-mail address, dates of employment, and
the title of the project on which the minor was employed, and shall
notify the parent, guardian, or trustee of that transfer by certified
mail to the last known address. Upon receipt of those forwarded
funds, The Actors' Fund of America shall become the trustee of those
funds and the minor's employer shall have no further obligation or
duty to monitor or account for the funds.
   (B) The Actors' Fund of America shall make best efforts to notify
the parent, guardian, or trustee of their responsibilities to provide
a true and accurate photocopy of the trustee's statement pursuant to
Section 6753 and in the case of a guardian, a certified copy of the
court document appointing the person as the minor's legal guardian.
After receiving those documents, The Actors' Fund of America shall
deposit or disburse the funds as directed by the trustee's statement,
and in accordance with Section 6753, within 15 business days. When
making that deposit or disbursal of the funds, The Actors' Fund of
America shall provide notice to the financial institution that the
funds are subject to Section 6753, and shall thereafter have no
further obligation or duty to monitor or account for the funds.
   (C) The Actors' Fund of America shall notify each beneficiary of
his or her entitlement to the funds that it holds for the
beneficiary, within 60 days after the date on which its records
indicate that the beneficiary has attained 18 years of age or the
date on which it received notice that the minor has been emancipated,
by sending that notice to the last known address that it has for the
beneficiary, or to the beneficiary's parent or guardian, where it
has no specific separate address for the beneficiary.
   (e) Where a parent or guardian is entitled to the physical
custody, care, and control of a minor who enters into a contract of a
type described in Section 6750, the relationship between the parent
or guardian and the minor is a fiduciary relationship that is
governed by the law of trusts, whether or not a court has issued a
formal order to that effect. The parent or guardian acting in his or
her fiduciary relationship, shall, with the earnings and
accumulations of the minor under the contract, pay all liabilities
incurred by the minor under the contract, including, but not limited
to, payments for taxes on all earnings, including taxes on the
amounts set aside under subdivisions (b) and (c) of this section, and
payments for personal or professional services rendered to the minor
or the business related to the contract. Nothing in this subdivision
shall be construed to alter any other existing responsibilities of a
parent or legal guardian to provide for the support of a minor
child.
   (f) (1) Except as otherwise provided in this subdivision, The
Actors' Fund of America, as trustee of unclaimed set-aside funds,
shall manage and administer those funds in the same manner as a
trustee under the Probate Code. Notwithstanding the foregoing, The
Actors' Fund of America is not required to open separate, segregated
individual trust accounts for each beneficiary but may hold the
set-aside funds in a single, segregated master account for all
beneficiaries, provided it maintains accounting records for each
beneficiary's interest in the master account.
   (2) The Actors' Fund of America shall have the right to transfer
funds from the master account, or from a beneficiary's segregated
account to its general account in an amount equal to the beneficiary'
s balance. The Actors' Fund of America shall have the right to use
those funds transferred to its general account to provide programs
and services for young performers. This use of the funds does not
limit or alter The Actors' Fund of America's obligation to disburse
the set-aside funds to the beneficiary, or the beneficiary's parent,
guardian, trustee, or estate pursuant to this chapter.
   (3) (A) Upon receiving a certified copy of the beneficiary's birth
certificate, or United States passport, and a true and accurate
photocopy of the trustee's statement pursuant to Section 6753, The
Actors' Fund of America shall transfer the beneficiary's balance to
the trust account established for the beneficiary.
   (B) The Actors' Fund of America shall disburse the set-aside funds
to a beneficiary who has attained 18 years of age, after receiving
proof of the beneficiary's identity and a certified copy of the
beneficiary's birth certificate or United States passport, or to a
beneficiary who has been emancipated, after receiving proof of the
beneficiary's identity and appropriate documentation evidencing the
beneficiary's emancipation.
   (C) The Actors' Fund of America shall disburse the set-aside funds
to the estate of a deceased beneficiary after receiving appropriate
documentation evidencing the death of the beneficiary and the
claimant's authority to collect those funds on behalf of the
beneficiary.
   (g) (1) The beneficiary of an account held by The Actors' Fund of
America pursuant to this section shall be entitled to receive imputed
interest on the balance in his or her account for the entire period
during which the account is held at a rate equal to the lesser of the
federal reserve rate in effect on the last business day of the prior
calendar quarter or the national average money market rate as
published in the New York Times on the last Sunday of the prior
calendar quarter, adjusted quarterly.
   (2) The Actors' Fund of America may assess and deduct from the
balance in the beneficiary's account reasonable management,
administrative, and investment expenses, including
beneficiary-specific fees for initial set up, account notifications
and account disbursements, and a reasonably allocable share of
management, administrative, and investment expenses of the master
account. No fees may be charged to any beneficiary's account during
the first year that the account is held by The Actors' Fund of
America.
   (3) Notwithstanding paragraph (2), the amount paid on any claim
made by a beneficiary or the beneficiary's parent or guardian after
The Actors' Fund of America receives and holds funds pursuant to this
section may not be less than the amount of the funds received plus
the imputed interest.
   (h) Notwithstanding any provision of this chapter to the contrary,
any minor's employer holding set-aside funds under this chapter,
which funds remain unclaimed 180 days after the effective date
hereof, shall forward those unclaimed funds to The Actors' Fund of
America, along with the minor's name and, if known, the minor's
social security number, birth date, last known address, telephone
number, e-mail address, dates of employment, and the title of the
project on which the minor was employed, and shall notify the parent,
guardian, or trustee of that transfer by certified mail to the last
known address. Upon receipt of those forwarded funds by The Actors'
Fund of America, the minor's employer shall have no further
obligation or duty to monitor or account for the funds.
   (i) All funds received by The Actors' Fund of America pursuant to
this section shall be exempt from the application of the Unclaimed
Property Law (Title 10 (commencing with Section 1300) of Part 3 of
the Code of Civil Procedure), including, but not limited to, Section
1510 of the Code of Civil Procedure.

6753.  (a) The trustee or trustees shall establish a trust account,
that shall be known as a Coogan Trust Account, pursuant to this
section at a bank, savings and loan institution, credit union,
brokerage firm, or company registered under the Investment Company
Act of 1940, that is located in the State of California, unless a
similar trust has been previously established, for the purpose of
preserving for the benefit of the minor the portion of the minor's
gross earnings pursuant to paragraph (1) of subdivision (b) of
Section 6752 or pursuant to paragraph (1) of subdivision (c) of
Section 6752. The trustee or trustees shall establish the trust
pursuant to this section within seven business days after the minor's
contract is signed by the minor, the third-party individual or
personal services corporation (loan-out company), and the employer.
   (b) Except as otherwise provided in this section, prior to the
date on which the beneficiary of the trust attains the age of 18
years or the issuance of a declaration of emancipation of the minor
under Section 7122, no withdrawal by the beneficiary or any other
individual, individuals, entity, or entities may be made of funds on
deposit in trust without written order of the superior court pursuant
to paragraph (7) of subdivision (b) or paragraph (5) of subdivision
(c) of Section 6752. Upon reaching the age of 18 years, the
beneficiary may withdraw the funds on deposit in trust only after
providing a certified copy of the beneficiary's birth certificate to
the financial institution where the trust is located.
   (c) The trustee or trustees shall, within 10 business days after
the minor's contract is signed by the minor, the third-party
individual or personal services corporation (loan-out company), and
the employer, prepare a written statement under penalty of perjury
that shall include the name, address, and telephone number of the
financial institution, the name of the account, the number of the
account, the name of the minor beneficiary, the name of the trustee
or trustees of the account, and any additional information needed by
the minor's employer to deposit into the account the portion of the
minor's gross earnings prescribed by paragraph (1) of subdivision (b)
or paragraph (1) of subdivision (c) of Section 6752. The trustee or
trustees shall attach to the written statement a true and accurate
photocopy of any information received from the financial institution
confirming the creation of the account, such as an account agreement,
account terms, passbook, or other similar writings.
   (d) The trust shall be established in California either with a
financial institution that is and remains insured at all times by the
Federal Deposit Insurance Corporation (FDIC), the Securities
Investor Protection Corporation (SIPC), or the National Credit Union
Share Insurance Fund (NCUSIF) or their respective successors, or with
a company that is and remains registered under the Investment
Company Act of 1940. The trustee or trustees of the trust shall be
the only individual, individuals, entity, or entities with the
obligation or duty to ensure that the funds remain in trust, in an
account or other savings plan insured in accordance with this
section, or with a company that is and remains registered under the
Investment Company Act of 1940 as authorized by this section.
   (e) Upon application by the trustee or trustees to the financial
institution or company in which the trust is held, the trust funds
shall be handled by the financial institution or company in one or
more of the following methods:
   (1) The financial institution or company may transfer funds to
another account or other savings plan at the same financial
institution or company, provided that the funds transferred shall
continue to be held in trust, and subject to this chapter.
   (2) The financial institution or company may transfer funds to
another financial institution or company, provided that the funds
transferred shall continue to be held in trust, and subject to this
chapter and that the transferring financial institution or company
has provided written notification to the financial institution or
company to which the funds will be transferred that the funds are
subject to this section and written notice of the requirements of
this chapter.
   (3) The financial institution or company may use all or a part of
the funds to purchase, in the name of and for the benefit of the
minor, (A) investment funds offered by a company registered under the
Investment Company Act of 1940, provided that if the underlying
investments are equity securities, the investment fund is a
broad-based index fund or invests broadly across the domestic or a
foreign regional economy, is not a sector fund, and has assets under
management of at least two hundred fifty million dollars
($250,000,000); or (B) government securities and bonds, certificates
of deposit, money market instruments, money market accounts, or
mutual funds investing solely in those government securities and
bonds, certificates, instruments, and accounts, that are available at
the financial institution where the trust fund or other savings plan
is held, provided that the funds shall continue to be held in trust
and subject to this chapter, those purchases shall have a maturity
date on or before the date upon which the minor will attain the age
of 18 years, and any proceeds accruing from those purchases shall be
redeposited into that account or accounts or used to further purchase
any of those or similar securities, bonds, certificates,
instruments, funds, or accounts.