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The FAIR Act to Repeal California’s ‘Seven-Year Statute’ Amendment Fails in the State Senate

The major record companies emerged victorious as the Free Artists From Industry Restrictions (FAIR) Act failed to pass out of the California State Senate’s Judiciary committee on Tuesday (June 28) in Sacramento. The Fair Act, also known as AB Bill 983, received four votes, two short of the six needed to reach a majority from the 11-member committee. The bill was the latest effort to repeal a 1987 amendment to California’s “Seven-Year Statute” (a.k.a. California Labor Code Section 2855). That amendment allows record labels to sue artists for damages (including potential lost revenue) if they leave after seven years but before delivering the required number of albums in their contract. Though the committee addressed the bill early in the afternoon, it took until the conclusion of the 13...

FAIR Act Bill to Repeal California’s ‘Seven-Year Statute’ Amendment Wins First Committee Vote

The Free Artists From Industry Restrictions (FAIR) Act passed out of the California State Assembly’s Labor & Employment Committee on Wednesday (March 30) after a 4-2 vote in favor of the legislation. The bill now moves to the Assembly’s Committee on Arts, Entertainment, Sports, Tourism and Internet Media for an April 19 hearing and vote. Introduced by Assemblymember Ash Kalra (D-San Jose) in February, the FAIR Act — also known as Assembly Bill 2926 — would repeal a 1987 amendment to California’s “Seven-Year Statue” (a.k.a. California Labor Code Section 2855) that allows record labels to sue artists for damages if they leave after seven years but before delivering the required number of albums in their contract. The Seven-Year Statute, which limits personal services contracts for state ...