Regulate Model Management Companies

Section 1. Sections 1031, 1032, 1033, 1034, 1035, 1037 and 1038 of the labor law, as added by a chapter of the laws of 2024 amending the labor law relating to enacting the New York state fashion workers act, as proposed in legislative bills numbers S. 9832 and A. 5631-E, is amended to read as follows:

§ 1031. Definitions. As used in this article:

1. "Client" means a [retail store, a manufacturer, a clothing designer, an advertising agency, a photographer, a publishing company or any other such] person or entity that [receives] contracts for and manages the performance of modeling services from a model or model management company, directly or through intermediaries.

2. "Model" means an individual[, regardless of the individual's status as an independent contractor or employee,] who, in the course of such individual's trade, occupation or profession, performs modeling services [for a client and/or model management company or who provides showroom, parts, or fit modeling services], regardless of the individual's status as an employee or independent contractor.

3. (a) "Model management company" means any person or entity, other than a person or entity licensed as an employment agency under article eleven of the general business law, that:

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD02897-01-5

[(a)] (i) is in the business of managing models participating in entertainments, exhibitions or performances;

[(b)] (ii) procures or attempts to procure, for a fee, employment or engagements for persons seeking employment or engagements as models; or

[(c)] (iii) renders vocational guidance or counseling services to models for a fee.

(b) Model managing shall not include direct engagement of a model who is not represented by an agency or management company for use of models in a campaign or shoot.

4. "Model management group" means two or more model management companies that are majority owned by the same ultimate parent, entity or persons. A model management group may satisfy any reporting and financial requirements of this article on a consolidated basis. As a condition of registration as a model management group, each company that is a member of the group shall guarantee payment of all financial obligations of each other member.

5. "Modeling services" means the appearance by a model in photographic sessions or the engagement of a model in live runway, live, filmed, or taped performances, including on social media platforms, requiring the model to pose, provide an example or standard of artistic expression or to be a representation to show the construction or appearance of some thing or place for purposes of display or advertising, including the provisions of castings, fittings, photoshoots, showroom, parts or fit modeling services. "Modeling services" includes the use of a digital replica.

[5.] 6. "Exclusive representation" means an agreement, or a clause contained in an agreement, entered into between a model management company and a model that restricts such model from [performing work for] being represented by another party not subject to such agreement for a specified period of time or in a specified geographical area, that is similar to such model's work for the model management company.

[6.] 7. "Deal memo" means a summary written in plain language which identifies the key components of any employment, engagement, entertainment, exhibition, or performance, including but not limited to the scope of work, rate of pay, payment term, usages, incurred expenses, including any expenses to be initially incurred by either the model management company or the model and reimbursed by the client, and other expectations of the model. A deal memo shall be provided in the language requested by the model.

[7.] 8. "Digital replica" means a significant, computer-generated or artificial intelligence-enhanced representation of a model's likeness, including but not limited to, their face, body, or voice, which substantially replicates or replaces the model's appearance or performance, excluding routine photographic edits such as color correction, minor retouching, or other standard post-production modifications.

§ 1032. Registration required. [A] 1. Except as otherwise provided in this section, a model management company or model management group shall not engage in business in this state or enter into any arrangement with a client or model for the purpose of providing model management company or model management group services in this state unless the model management company or model management group is registered under this article. A model management company or model management group that does not comply with the provisions of this article shall not be a registered model management company or model management group in this state.

2. A model management company or model management group shall be exempt from the registration requirements specified in this section if such model management company or model management group:

(a) submits a properly executed request for an exemption from registration to the department;

(b) is domiciled outside this state and is licensed or registered as a model management company in another state that has requirements at least as strict as this article; and

(c) does not maintain an office in this state or solicit in any manner clients located or domiciled within this state.

§ 1033. Registration process. 1. Except as otherwise provided in this section, a model management company or model management group required to be registered under this article shall provide the department with information required by the department on forms that the department specifies.

2. [Two or more model management companies that are majority owned by the same ultimate parent, entity or persons may be registered as a model management group. A model management group may satisfy any reporting and financial requirements of this article on a consolidated basis. As a condition of registration as a model management group, each company that is a member of the group shall guarantee payment of all financial obligations of each other member.] At a minimum, a model management company or model management group shall provide the following information:

(a) all names under which it conducts business;

(b) the address of the principal place of business of the model management company or model management group and the address of each office it maintains in New York state;

(c) the model management company or model management group's taxpayer or employer identification number;

(d) a list by jurisdiction of each name under which the model management company or model management group has operated in the preceding five years, including any alternative names, names of predecessors and, if known, successor business entities; and

(e) in the event the model management company or the ultimate parent of a model management group is a privately or closely held company, the model management company or model management group shall file a list of all persons or entities that beneficially own a five percent or greater interest in the model management company at the time of application and a list of persons who formerly beneficially owned a five percent or greater interest in the model management company or its predecessors in the preceding five years. In the event the model management company or the ultimate parent of a model management group is a publicly traded company, the model management company or model management group shall file a list of all persons or entities that beneficially own a fifty percent or greater interest in the model management company or the ultimate parent of the model management group at the time of application.

3. Each model management company or model management group operating within this state shall [complete] submit its initial registration to the department within one year after the effective date of this article.

4. Upon application for registration, a model management company or model management group with more than five employees that either work from a location in this state or perform work relating to models in this state shall deposit with the department a surety bond in the sum of fifty thousand dollars.

5. Every model management company or model management group registered pursuant to the provisions of this article shall pay to the commissioner a registration fee before the certificate of registration is issued. The registration fee for a model management company or model management group operating with five or less employees shall be five hundred dollars, and for a model management company or model management group operating with more than five employees, the registration fee shall be seven hundred dollars. If the application for registration is denied or withdrawn, one-half of the registration fee provided herein shall be returned to the applicant.

6. [A model management company shall be exempt from the registration requirements specified in this section if such model management company:

(a) submits a properly executed request for an exemption from registration on a form provided by the department;

(b) is domiciled outside this state and is licensed or registered as a model management company in another state that has the same or greater requirements as this article; and

(c) does not maintain an office in this state or solicit in any manner clients located or domiciled within this state.

7. The] A registration or exemption from registration of a model management company or model management group shall be valid for two calendar years[; the department shall also establish a registration renewal process] from the date of registration or exemption. Registrations or exemptions may be renewed not less than ninety days before the expiration date of the immediately preceding registration.

[8.] 7. The department shall maintain a list of model management companies and model management groups registered under this article and shall issue a certificate of registration or a certificate of exemption to each model management company or model management group duly registered.

[9.] 8. The department shall prescribe forms necessary to promote the efficient administration of this section.

§ 1034. Duties of model management companies. A model management company shall:

1. be deemed to have a fiduciary duty to the models they represent and shall be required to act in good faith, with the utmost honesty and integrity, in the best interests of the models. This fiduciary duty shall encompass all aspects of the model management company's representation, including, but not limited to, negotiations, contracts, financial management, and the protection of the models' legal and financial rights;

2. conduct due diligence to ensure that any employment or engagement procured through the model management company does not pose an unreasonable risk of danger to the model. An unreasonable risk of danger shall include, but not be limited to, failing to establish and communicate a [zero tolerance] company policy [for] that equals or exceeds the minimum standards provided for by existing laws that address abuse, harassment, or any other form of inappropriate behavior towards models represented by the model management company or model management group;

3. use its best efforts to procure employment, engagements, entertainments, exhibitions or performances for remuneration for the models signed to the model management company or model management group;

4. ensure that any employment, engagement, entertainment, exhibition or performance which requires nudity or other sexually explicit material shall comply with the requirements of subdivision three of section fifty-two-c of the civil rights law, as added by chapter three hundred four of the laws of two thousand twenty;

5. provide models with written physical or digital copies of [the final agreements the model management company has negotiated with clients and any]: (a) a deal [memos] memo memorializing [such] agreements [at least twenty-four hours], which includes the remuneration and compensation such model shall be owed upon conclusion of services that the model accepts, as soon as reasonably practical prior to the commencement of a model's services [pertaining to each agreement], and (b) the final agreement negotiated with clients in relation to such booking in the language requested by the model making best efforts to sign the contract ahead of booking, provided that the final agreement shall be provided to the model within seven calendar days of the conclusion of the model's services;