S 823: Defines "model management group"; provides for the registration process for model management groups; provides for exemption from registration requirements for model management companies and groups.

  
  STATE OF NEW YORK ________________________________________________________________________ 823 2025-2026 Regular Sessions  IN SENATE (Prefiled) January 8, 2025 ___________ Introduced by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the labor law, in relation to model management companies and model management groups; and to amend 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, in relation to the effectiveness thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Sections 1031, 1032, 1033, 1034, 1035, 1037 and 1038 of the 2 labor law, as added by a chapter of the laws of 2024 amending the labor 3 law relating to enacting the New York state fashion workers act, as 4 proposed in legislative bills numbers S. 9832 and A. 5631-E, is amended 5 to read as follows: 6 § 1031. Definitions. As used in this article: 7 1. "Client" means a [retail store, a manufacturer, a clothing design- 8 er, an advertising agency, a photographer, a publishing company or any 9 other such] person or entity that [receives] contracts for and manages 10 the performance of modeling services from a model or model management 11 company, directly or through intermediaries. 12 2. "Model" means an individual[, regardless of the individual's status 13 as an independent contractor or employee,] who, in the course of such 14 individual's trade, occupation or profession, performs modeling services 15 [for a client and/or model management company or who provides showroom, 16 parts, or fit modeling services], regardless of the individual's status 17 as an employee or independent contractor. 18 3. (a) "Model management company" means any person or entity, other 19 than a person or entity licensed as an employment agency under article 20 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 
 S. 823 2 1 [(a)] (i) is in the business of managing models participating in 2 entertainments, exhibitions or performances; 3 [(b)] (ii) procures or attempts to procure, for a fee, employment or 4 engagements for persons seeking employment or engagements as models; or 5 [(c)] (iii) renders vocational guidance or counseling services to 6 models for a fee. 7 (b) Model managing shall not include direct engagement of a model who 8 is not represented by an agency or management company for use of models 9 in a campaign or shoot. 10 4. "Model management group" means two or more model management compa- 11 nies that are majority owned by the same ultimate parent, entity or 12 persons. A model management group may satisfy any reporting and finan- 13 cial requirements of this article on a consolidated basis. As a condi- 14 tion of registration as a model management group, each company that is a 15 member of the group shall guarantee payment of all financial obligations 16 of each other member. 17 5. "Modeling services" means the appearance by a model in photographic 18 sessions or the engagement of a model in live runway, live, filmed, or 19 taped performances, including on social media platforms, requiring the 20 model to pose, provide an example or standard of artistic expression or 21 to be a representation to show the construction or appearance of some 22 thing or place for purposes of display or advertising, including the 23 provisions of castings, fittings, photoshoots, showroom, parts or fit 24 modeling services. "Modeling services" includes the use of a digital 25 replica. 26 [5.] 6. "Exclusive representation" means an agreement, or a clause 27 contained in an agreement, entered into between a model management 28 company and a model that restricts such model from [performing work for] 29 being represented by another party not subject to such agreement for a 30 specified period of time or in a specified geographical area, that is 31 similar to such model's work for the model management company. 32 [6.] 7. "Deal memo" means a summary written in plain language which 33 identifies the key components of any employment, engagement, enter- 34 tainment, exhibition, or performance, including but not limited to the 35 scope of work, rate of pay, payment term, usages, incurred expenses, 36 including any expenses to be initially incurred by either the model 37 management company or the model and reimbursed by the client, and other 38 expectations of the model. A deal memo shall be provided in the language 39 requested by the model. 40 [7.] 8. "Digital replica" means a significant, computer-generated or 41 artificial intelligence-enhanced representation of a model's likeness, 42 including but not limited to, their face, body, or voice, which substan- 43 tially replicates or replaces the model's appearance or performance, 44 excluding routine photographic edits such as color correction, minor 45 retouching, or other standard post-production modifications. 46 § 1032. Registration required. [A] 1. Except as otherwise provided in 47 this section, a model management company or model management group shall 48 not engage in business in this state or enter into any arrangement with 49 a client or model for the purpose of providing model management company 50 or model management group services in this state unless the model 51 management company or model management group is registered under this 52 article. A model management company or model management group that does 53 not comply with the provisions of this article shall not be a registered 54 model management company or model management group in this state. 
 S. 823 3 1 2. A model management company or model management group shall be 2 exempt from the registration requirements specified in this section if 3 such model management company or model management group: 4 (a) submits a properly executed request for an exemption from regis- 5 tration to the department; 6 (b) is domiciled outside this state and is licensed or registered as a 7 model management company in another state that has requirements at least 8 as strict as this article; and 9 (c) does not maintain an office in this state or solicit in any manner 10 clients located or domiciled within this state. 11 § 1033. Registration process. 1. Except as otherwise provided in this 12 section, a model management company or model management group required 13 to be registered under this article shall provide the department with 14 information required by the department on forms that the department 15 specifies. 16 2. [Two or more model management companies that are majority owned by 17 the same ultimate parent, entity or persons may be registered as a model 18 management group. A model management group may satisfy any reporting and 19 financial requirements of this article on a consolidated basis. As a 20 condition of registration as a model management group, each company that 21 is a member of the group shall guarantee payment of all financial obli- 22 gations of each other member.] At a minimum, a model management company 23 or model management group shall provide the following information: 24 (a) all names under which it conducts business; 25 (b) the address of the principal place of business of the model 26 management company or model management group and the address of each 27 office it maintains in New York state; 28 (c) the model management company or model management group's taxpayer 29 or employer identification number; 30 (d) a list by jurisdiction of each name under which the model manage- 31 ment company or model management group has operated in the preceding 32 five years, including any alternative names, names of predecessors and, 33 if known, successor business entities; and 34 (e) in the event the model management company or the ultimate parent 35 of a model management group is a privately or closely held company, the 36 model management company or model management group shall file a list of 37 all persons or entities that beneficially own a five percent or greater 38 interest in the model management company at the time of application and 39 a list of persons who formerly beneficially owned a five percent or 40 greater interest in the model management company or its predecessors in 41 the preceding five years. In the event the model management company or 42 the ultimate parent of a model management group is a publicly traded 43 company, the model management company or model management group shall 44 file a list of all persons or entities that beneficially own a fifty 45 percent or greater interest in the model management company or the ulti- 46 mate parent of the model management group at the time of application. 47 3. Each model management company or model management group operating 48 within this state shall [complete] submit its initial registration to 49 the department within one year after the effective date of this article. 50 4. Upon application for registration, a model management company or 51 model management group with more than five employees that either work 52 from a location in this state or perform work relating to models in this 53 state shall deposit with the department a surety bond in the sum of 54 fifty thousand dollars. 55 5. Every model management company or model management group registered 56 pursuant to the provisions of this article shall pay to the commissioner 
 S. 823 4 1 a registration fee before the certificate of registration is issued. The 2 registration fee for a model management company or model management 3 group operating with five or less employees shall be five hundred 4 dollars, and for a model management company or model management group 5 operating with more than five employees, the registration fee shall be 6 seven hundred dollars. If the application for registration is denied or 7 withdrawn, one-half of the registration fee provided herein shall be 8 returned to the applicant. 9 6. [A model management company shall be exempt from the registration 10 requirements specified in this section if such model management company: 11 (a) submits a properly executed request for an exemption from regis- 12 tration on a form provided by the department; 13 (b) is domiciled outside this state and is licensed or registered as a 14 model management company in another state that has the same or greater 15 requirements as this article; and 16 (c) does not maintain an office in this state or solicit in any manner 17 clients located or domiciled within this state. 18 7. The] A registration or exemption from registration of a model 19 management company or model management group shall be valid for two 20 calendar years[; the department shall also establish a registration 21 renewal process] from the date of registration or exemption. Registra- 22 tions or exemptions may be renewed not less than ninety days before the 23 expiration date of the immediately preceding registration. 24 [8.] 7. The department shall maintain a list of model management 25 companies and model management groups registered under this article and 26 shall issue a certificate of registration or a certificate of exemption 27 to each model management company or model management group duly regis- 28 tered. 29 [9.] 8. The department shall prescribe forms necessary to promote the 30 efficient administration of this section. 31 § 1034. Duties of model management companies. A model management 32 company shall: 33 1. be deemed to have a fiduciary duty to the models they represent and 34 shall be required to act in good faith, with the utmost honesty and 35 integrity, in the best interests of the models. This fiduciary duty 36 shall encompass all aspects of the model management company's represen- 37 tation, including, but not limited to, negotiations, contracts, finan- 38 cial management, and the protection of the models' legal and financial 39 rights; 40 2. conduct due diligence to ensure that any employment or engagement 41 procured through the model management company does not pose an unreason- 42 able risk of danger to the model. An unreasonable risk of danger shall 43 include, but not be limited to, failing to establish and communicate a 44 [zero tolerance] company policy [for] that equals or exceeds the minimum 45 standards provided for by existing laws that address abuse, harassment, 46 or any other form of inappropriate behavior towards models represented 47 by the model management company or model management group; 48 3. use its best efforts to procure employment, engagements, enter- 49 tainments, exhibitions or performances for remuneration for the models 50 signed to the model management company or model management group; 51 4. ensure that any employment, engagement, entertainment, exhibition 52 or performance which requires nudity or other sexually explicit material 53 shall comply with the requirements of subdivision three of section 54 fifty-two-c of the civil rights law, as added by chapter three hundred 55 four of the laws of two thousand twenty; 
 S. 823 5 1 5. provide models with written physical or digital copies of [the 2 final agreements the model management company has negotiated with 3 clients and any]: (a) a deal [memos] memo memorializing [such] agree- 4 ments [at least twenty-four hours], which includes the remuneration and 5 compensation such model shall be owed upon conclusion of services that 6 the model accepts, as soon as reasonably practical prior to the 7 commencement of a model's services [pertaining to each agreement], and 8 (b) the final agreement negotiated with clients in relation to such 9 booking in the language requested by the model making best efforts to 10 sign the contract ahead of booking, provided that the final agreement 11 shall be provided to the model within seven calendar days of the conclu- 12 sion of the model's services; 13 6. clearly specify and seek prior written approval from the model of 14 all items that may be initially paid for by the model management company 15 but will ultimately be deducted from the compensation due to the model 16 at the time of payment or settlement, together with an itemized recita- 17 tion as to how each item is to be computed, provided such charges are 18 not otherwise prohibited by this article. On a quarterly basis, a model 19 shall also be given copies of any and all documentation held by or 20 available to the model management company necessary to determine the 21 validity of each charge; 22 7. disclose any financial relationship, contractual or otherwise, 23 that may exist between the model management company and the client, 24 other than the agreement relating specifically to modeling services; 25 8. notify former models in writing, including electronic notification, 26 if the model management company collects royalties due to a model whom 27 the management company no longer represents; 28 9. post a physical copy of the model management company's certificate 29 of registration in a conspicuous place in the office of the model 30 management company and a digital copy on the model management company's 31 website; 32 10. include, in clear and legible type, the registration number of the 33 model management company in any advertisement, including social media 34 profiles for the model management company, for the purpose of the solic- 35 itation of models for the model management company and in any contract 36 with a model or client; and 37 11. obtain clear written consent from the model for [the] any creation 38 or use of a model's digital replica, detailing the scope, purpose, rate 39 of pay, and duration of such use. This consent must be obtained sepa- 40 rately from the representation agreement. 41 § 1035. Prohibitions on model management companies. A model management 42 company shall not: 43 1. require or collect any fee or deposit from a model upon the signing 44 of, or as a condition to entering into, any contract or agreement 45 between the model management company and the model; 46 2. procure any accommodation for which payment shall be provided or 47 reimbursed by the model in any way, without providing a written disclo- 48 sure of the rate charged for the accommodation to the model in advance 49 of such model's stay at the accommodation; 50 3. deduct or offset from a model's payment or compensation any fee or 51 expense, including interest, other than the agreed upon commission as 52 set forth in the contract and any items advanced pursuant to subdivision 53 six of section one thousand thirty-four of this article[. Such prohib- 54 ited fees and expenses include but are not limited to website fees, 55 accommodation fees, delivery fees, and interest on payment of the 56 model's earnings]; 
 S. 823 6 1 4. advance the cost of travel or visa-related costs without informed 2 written consent from the model; 3 5. require a model to sign a model management company contract that 4 contains a term greater than three years; 5 6. require a model to sign a model management company contract that 6 renews without the model's affirmative written consent; 7 7. impose a commission fee greater than twenty percent of the model's 8 payment or compensation; 9 8. [take any retaliatory action against any model who files or 10 attempts to file a complaint pursuant to this article or declines or 11 discontinues participation in any casting or booking on account of 12 reasonable, good faith concerns regarding an actual or potential 13 violation of this article; 14 9.] engage in discrimination or harassment of any kind against a model 15 because of any protected status covered under paragraph (a) of subdivi- 16 sion one of section two hundred ninety-six of the executive law; or 17 10. create, alter, or manipulate a model's digital replica using arti- 18 ficial intelligence without clear, conspicuous and separate written 19 consent from the model. 20 § 1037. Duties of clients. A client shall: 21 1. compensate models at an hourly rate at least fifty percent higher 22 than the contracted hourly rate for any employment, engagement, enter- 23 tainment, exhibition or performance that exceeds eight hours in any 24 twenty-four hour period; 25 2. provide at least one thirty minute meal break for any employment, 26 engagement, entertainment, exhibition or performance that exceeds eight 27 hours in any twenty-four hour period; 28 3. only offer an employment or engagement to a model that does not 29 pose an unreasonable risk of danger to the model. An unreasonable risk 30 of danger shall include, but not be limited to, failure to establish and 31 communicate a [zero tolerance] company policy [for] that equals or 32 exceeds the minimum standards provided for by existing law that 33 addresses abuse, harassment, or any other form of inappropriate behav- 34 ior; 35 4. ensure that any employment, engagement, entertainment, exhibition 36 or performance which requires nudity or other sexually explicit material 37 shall comply with the requirements of subdivision three of section 38 fifty-two-c of the civil rights law, as added by chapter three hundred 39 four of the laws of two thousand twenty; 40 5. allow the model to be accompanied by their agent, manager, chaper- 41 one, or other representative to any employment, engagement, enter- 42 tainment, exhibition or performance; 43 6. provide [adequate levels of] liability insurance to cover and safe- 44 guard the health and safety of models; and 45 7. obtain clear and conspicuous prior written consent from the model 46 for any creation or use of a model's digital replica, detailing the 47 scope, purpose, rate of pay, and duration of such use. 48 § 1038. Violations, penalties and procedures. 1. Any model management 49 company or model management group that has failed to comply with the 50 registration requirements of section one thousand thirty-two of this 51 article shall be deemed to have violated this article. 52 2. Any model management company or model management group that has 53 failed to comply within the time specified by law with an order issued 54 by the commissioner to comply with the registration requirements of 55 section one thousand thirty-two of this article shall be deemed to have 56 violated this article. 
 S. 823 7 1 3. (a) The commissioner may impose a civil penalty upon a model 2 management company, model management group, or client that has been 3 deemed to have violated this article, for [no more than] three thousand 4 dollars for the initial violation, and for [no more than] five thousand 5 dollars for a second or subsequent violation. 6 (b) The order imposing such civil penalty may be served personally or 7 by certified mail [at the last known mailing address of the person being 8 served] in accordance with section thirty-three of this chapter. Such 9 order shall be in writing and shall describe the nature of the 10 violation, including reference to the provisions of subdivisions one, 11 two and three of this section alleged to have been violated. 12 4. An order issued under this section shall be final and not subject 13 to review by any court or agency unless a review is had pursuant to 14 section one hundred one of this chapter. Provided that no proceeding for 15 administrative or judicial review as provided in this chapter shall then 16 be pending and the time for initiation of such proceeding shall have 17 expired, the commissioner may file with the county clerk of the county 18 where the person against whom the penalty has been imposed has a place 19 of business the order of the commissioner or the decision of the indus- 20 trial board of appeals containing the amount of the civil penalty. The 21 filing of such order or decision shall have the full force and effect of 22 a judgment duly docketed in the office of such clerk. The order or deci- 23 sion may be enforced by and in the name of the commissioner in the same 24 manner, and with like effect, as that prescribed by the civil practice 25 law and rules for the enforcement of a money judgment. 26 5. If any model management company has failed to comply within twenty 27 days of an order by the commissioner to register or renew registration, 28 the commissioner may seek to enjoin such unlawful activity, pursuant to 29 the civil practice law and rules. 30 6. The attorney general may bring and maintain an action in a court of 31 competent jurisdiction to enforce the provisions of this article when 32 the attorney general has determined there is reasonable cause to believe 33 that a model management company, model management group, or client has 34 engaged in repeated fraudulent or illegal acts or otherwise demonstrates 35 persistent fraud or illegality in the carrying on, conducting, or trans- 36 acting of business. 37 7. (a) A model who is aggrieved by a violation of this article may 38 file a complaint with the commissioner within six years after the acts 39 alleged to have violated this article occurred. The commissioner shall 40 prescribe the form of the complaint, which shall include, at a minimum: 41 (i) the name and mailing address of the model and of the person or 42 entity alleged to have violated this article; 43 (ii) a statement detailing the terms of the model's contract, includ- 44 ing a copy of such contract if available; 45 (iii) the model's occupation; 46 (iv) a statement detailing the alleged violations of this article; and 47 (v) a signed affirmation that all facts alleged in the complaint are 48 true. 49 (b) (i) [Within twenty days of] Upon receiving a complaint alleging a 50 violation of this article, the commissioner shall send the person or 51 entity named in the complaint a written notice of complaint. The 52 commissioner shall send such notice by certified mail in accordance with 53 section thirty-three of the labor law and shall bear the cost of sending 54 such notice. 55 (ii) Notice shall include: 56 (1) a copy of the complaint; 
 S. 823 8 1 (2) materials of remedies available to the model for the violations of 2 said article by the person or entity named in the complaint; 3 (3) materials informing the person or entity that twenty days after 4 receiving the notice of complaint, the person or entity identified in 5 the complaint must answer; and 6 (4) materials informing the person or entity that failure to respond 7 to the complaint will create a rebuttable presumption in any civil 8 action commenced pursuant to this article that such person or entity 9 committed the violations alleged in the complaint. 10 (c) The response shall include: 11 (i) a written statement that the model has been paid in full and proof 12 of such payment; [or] 13 (ii) a written statement that the model has not been paid in full and 14 the reasons for the failure to provide such payment; or 15 (iii) a written statement and any proof responding to the violations 16 alleged in the complaint. 17 (d) (i) [Within twenty days of] Upon receiving the written response, 18 the commissioner shall send the model a copy of: 19 (1) the response; 20 (2) any enclosures submitted to the commissioner with the response; 21 and 22 (3) any other information about the status of the complaint. 23 (ii) If the commissioner receives no response from the person or enti- 24 ty alleged to have violated this article to the notice of complaint 25 within the time provided by this subdivision, then there shall be a 26 [rebuttable presumption] determination that such person or entity 27 committed the violations alleged in the complaint. The commissioner 28 shall mail a notice of non-response to both the model and the person or 29 entity named in the complaint by regular mail and shall include with 30 such notice proof that the commissioner previously mailed the notice of 31 complaint to the person or entity named in the complaint by certified 32 mail. 33 8. An aggrieved model may bring and maintain an action in a court of 34 competent jurisdiction to enforce the provisions of sections one thou- 35 sand thirty-four and one thousand thirty-five of this article. A model 36 management company or model management group that violates these 37 sections shall be liable for actual damages to any model that has 38 suffered damages due to such violation, reasonable attorneys' fees and 39 costs, and, unless the [employer] model management company or group 40 proves a good faith basis to believe that its actions were in compliance 41 with the law, an additional amount as liquidated damages in an amount of 42 no more than one hundred percent of the total amount of actual damages, 43 except such liquidated damages may be up to three hundred percent if 44 found that the actions were willful. 45 9. No client, model management company, or model management group 46 shall be permitted to retaliate against a model for exercising any of 47 such model's rights under this article, including the right to raise 48 complaints with the client, model management company, model management 49 group, commissioner, or attorney general. Any violation of this section 50 shall be subject to enforcement in the same manner as prescribed in 51 section two hundred fifteen of this chapter. 52 § 2. Section 2 of a chapter of the laws of 2024 amending the labor law 53 relating to enacting the New York state fashion workers act, as proposed 54 in legislative bills numbers S. 9832 and A. 5631-E, is amended to read 55 as follows: 
 S. 823 9 1 § 2. This act shall take effect on the one hundred eightieth day after 2 it shall have become a law; provided, however, that section 1032 of the 3 labor law as added by section one of this act shall take effect one year 4 after such effective date. Effective immediately, the addition, amend- 5 ment and/or repeal of any rule or regulation necessary for the implemen- 6 tation of this act on its effective date are authorized to be made and 7 completed on or before such effective date. 8 § 3. This act shall take effect immediately; provided, however, that 9 section one of this act shall take effect on the same date and in the 10 same manner as a chapter of the laws of 2024 amending the labor law 11 relating to enacting the New York state fashion workers act, as proposed 12 in legislative bills numbers S. 9832 and A. 5631-E, takes effect.