House File 498 - Introduced HOUSE FILE 498 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 180) A BILL FOR An Act relating to the practices of performing rights 1 societies. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2380HV (2) 89 jda/rn

H.F. 498 Section 1. Section 549.3, subsection 1, Code 2021, is 1 amended to read as follows: 2 1. A performing rights society shall not enter onto the 3 business premises of a proprietor for the purpose of discussing 4 a contract for the payment of royalties by the proprietor , 5 unless the performing rights society identifies itself to 6 the proprietor and describes to the proprietor the purpose 7 for entering onto the proprietor’s business premises the 8 performing rights society first makes an appointment to meet 9 with the proprietor at the business premises during normal 10 business hours . Upon entering onto the business premises, the 11 performing rights society shall clearly identify itself to 12 the proprietor and describe to the proprietor the purpose for 13 entering onto the business premises. 14 Sec. 2. Section 549.5, Code 2021, is amended to read as 15 follows: 16 549.5 Improper licensing practices. 17 A performing rights society shall not do any of the 18 following: 19 1. A performing rights society shall not collect, Collect 20 or attempt to collect , from a proprietor licensed by that 21 performing rights society, a royalty payment except as provided 22 in a contract executed pursuant to the provisions of this 23 chapter . 24 2. Make a misleading or threatening verbal or written 25 communication to a proprietor in connection with a contract for 26 the payment of royalties or an attempt to collect royalties. 27 3. State or imply in a verbal or written communication with 28 a proprietor that the performing rights society is an agent 29 or representative of a public body, regulatory agency, or law 30 enforcement agency. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill relates to the practices of performing rights 35 -1- LSB 2380HV (2) 89 jda/rn 1/ 2

H.F. 498 societies. 1 Current law prohibits a performing rights society from 2 entering onto the business premises of a proprietor for the 3 purpose of discussing a contract for the payment of royalties 4 unless the performing rights society identifies itself to the 5 proprietor and describes to the proprietor the purpose for 6 entering onto the business premises. The bill modifies this 7 prohibition by requiring the performing rights society to make 8 an appointment to meet with the proprietor at the business 9 premises during normal business hours before the performing 10 rights society may enter onto the business premises for the 11 purpose of discussing a contract for the payment of royalties. 12 The bill also requires the performing rights society, upon 13 entering the business premises, to clearly identify itself to 14 the proprietor and describe to the proprietor the purpose for 15 entering onto the premises. 16 The bill prohibits a performing rights society from making a 17 misleading or threatening verbal or written communication to 18 a proprietor in connection with a contract for the payment of 19 royalties or an attempt to collect royalties. The bill also 20 prohibits a performing rights society from stating or implying 21 in a communication with a proprietor that the performing 22 rights society is an agent or representative of a public body, 23 regulatory agency, or law enforcement agency. 24 Current law provides that a person who suffers a violation of 25 Code chapter 549 may bring an action to recover actual damages 26 and reasonable attorney fees. Current law also allows a person 27 to seek injunctive relief for a violation of Code chapter 549. 28 The remedies provided in Code chapter 549 are cumulative of any 29 other remedy afforded by common law, state law, or federal law. 30 -2- LSB 2380HV (2) 89 jda/rn 2/ 2