N.Y. Estates, Powers & Trusts Law § 7-7.1: Child performer trust account

§ 7-7.1 Child performer trust account

1. Scope. This section applies to contracts pursuant to which a child

performer:

(a) is employed or agrees to render artistic or creative services for

a fee, either directly or through a third-party individual or personal

services corporation (loan-out company), or through an agency or service

that provides artistic or creative services (casting agency); and

(b) agrees to purchase, or otherwise secure, sell, lease, 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

other 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.

2. Establishment of child performer trust account. (a) Employer.

Within thirty days following the final day of employment, except when

the performance contract is a period longer than thirty days, a child

performer's employer is required to transfer fifteen percent of gross

earnings to the custodian of the child performer's child performer trust

account. When the employment is longer than thirty days, the employer

shall make the required transfer every payroll period. Transfers must

conform with part six of this article. The use of an instrument to make

the transfer which substantially conforms with section 7-6.9 is

sufficient. If the child performer's employer has not been notified

within fifteen days of the commencement of employment of the existence

of a child performer trust account, or no such account has been

established, then the child performer's employer shall transfer such

monies together with the child performer's name and last known address

to the state comptroller for placement into the child performer's

holding fund established in section ninety-nine-k of the state finance

law and such monies shall be administered by the state comptroller. Once

transfers have been made to the child performer's trust account or the

child performer's holding fund, as required by this subdivision, the

child performer's employer has no further duty under this section.

(b) Custodian and guardian. Within fifteen days of the commencement of

employment the child performer's guardian or custodian must establish a

child performer trust account in accordance with part six of this

article, unless an account has previously been established. Once the

child performer trust account has been established the child performer's

guardian or custodian shall notify the child performer's employer of the

existence of the account and any additional information required to make

transfers. The custodian of the account shall promptly notify the child

performer's employer of any change in facts which affect the employer's

obligation to set aside funds under this section. Upon request of the

parent, legal guardian or the child performer's guardian ad litem, the

custodian may require the child performer's employer to transfer more

than fifteen percent of the gross earnings to the child performer trust

account. The child performer's parent or legal guardian may serve as

custodian. Once the child performer trust account balance reaches two

hundred fifty thousand dollars or more a trust company shall be

appointed as custodian of the account.

(c) Termination of child performer trust account. The child performer

may terminate the child performer trust account upon reaching the age of

eighteen.

3. Standard for child performer trust accounts. Custodian management

of funds which are required to be placed into a child performer trust

account shall be subject to part six of this article, in all respects

except as provided in this section.