minors; artistic performers; contracts; trust

HB2390 - 572R - I Ver

REFERENCE TITLE:
minors; artistic performers; contracts; trust

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2390

Introduced by

Representatives
Gutierrez: Abeytia, Austin, Blattman, Cavero, Connolly, Contreras P, Crews,
De Los Santos, Garcia, Liguori, Mathis, Simacek, Travers, Villegas

AN
ACT

amending title 23, chapter 2, Arizona
Revised Statutes, by adding article 6.2; relating to employment.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 23, chapter 2, Arizona Revised
Statutes, is amended by adding article 6.2, to read:

ARTICLE 6.2. EMPLOYMENT
CONTRACTS FOR MINORS

START_STATUTE
23-345.

Definitions

In this article, unless the context otherwise
requires:

1. "Artistic or creative
services":

(
a
) Includes
services:

(
i
) As an
actor, actress, dancer, musician, comedian, singer, stunt person, voice-over
artist or other performer or entertainer.

(
ii
) As a
songwriter, musical producer or arranger, writer, director, producer,
production executive, choreographer, composer, conductor or designer.

(
iii
) Provided
on an online platform.� For the purposes of this item, "Online
platform" means any public facing internet website, web application or
digital application, including social media platforms, advertising networks,
mobile applications, mobile operating systems, search engines, email services
and internet access services.

(
b
) Does not
include services as an extra, a background performer or temporary work in a
similar capacity.

2. "Financial institution":

(
a
) Means a
financial entity that is insured by the federal deposit insurance corporation.

(
b
) Includes:

(
i
) A state
bank.

(
ii
) A federal
bank.

(
iii
) A credit
union.

(
iv
) A savings
and loan association.

(
v
) A Trust
company.

(
vi
) A savings
bank.

3. "Gross earnings" means
the total compensation payable to the minor under the contract or, if the
minor's services are being provided through a third party, the total
compensation payable to that third party for the services of the minor.

4. "Guardian":

(
a
) Means an
individual who is appointed or qualified by a court as a guardian of the minor.

(
b
) Includes a
limited guardian.

(
c
) Does not
include a guardian ad litem.

5. "Guardian ad litem"
means a neutral person the court appoints to investigate what solutions would
be in the best interests of the child.

6. "Parent" means the
natural or adoptive mother or father of the child unless parental rights were
terminated by court order.

7. "Third party" means a
third-party individual, a business entity or a casting agency.
END_STATUTE

START_STATUTE
23-345.01.

Court approval; contract; minor; order

A. On or after January 1, 2027, a
contract entered into between an unemancipated minor and another party cannot
be disaffirmed on the ground that a minor entered into the contract if the
contract was approved by the superior court in a county:

1. In which the minor resides or is
employed.

2. That is the location of any
party's principal place of business.

B. On petition from any party to a
contract, the court shall set a hearing date and time to provide the parties
reasonable notice and an opportunity to be heard.

C. The court's approval of the
contract extends to the entirety of the contract.

D. For the purposes of any proceeding
under this section, a parent or guardian is considered the minor's guardian ad
litem for the court proceeding, unless the court orders on a showing of good
cause that a different individual should be appointed as a guardian ad litem in
the best interests of the minor.
END_STATUTE

START_STATUTE
23-345.02.

Minor's birth certificate; percentage gross earnings; trust;
trustee

A. A parent or guardian who enters
into a contract on behalf of a minor shall provide a certified copy of the
minor's birth certificate that indicates the minor's minority to any other
party to the contract. If a guardian has been appointed by the
court, the guardian must provide a certified copy of a court document that
appoints the individual as the minor's guardian.

B. At the time the court order is
issued approving the minor's contract as prescribed in section 23-345.01,
the court shall have jurisdiction over the trust and shall require both of the
following:

1. That fifteen percent of the
minor's gross earnings pursuant to the contract be set aside by the minor's
employer to be held in a trust account for the benefit of the minor in
accordance with this article. The minor's employer shall deposit
these monies into the trust account within fifteen business days After
receiving both a true and accurate copy of the trustee's statement pursuant to
subsection C of this section and a certified copy of the minor's birth
certificate pursuant to subsection A of this section.

2. That at least one parent or
guardian be appointed as the trustee of the trust, unless the court finds that
in the best interest of the child another guardian or entity shall serve as the
trustee of the trust.

C. Before the minor receives an
initial payment pursuant to the terms of the employment contract, the trustee
of the trust shall provide the minor's employer with a true and accurate copy
of the trustee's written statement pursuant to section 23-345.03 and, on
receipt of the trustee's written statement, the employer shall provide the
parent or guardian with a written acknowledgment of receipt of the trustee's
written statement. All documentation shall be provided and
maintained in compliance with this article, even if the same individual serves
in any of the following capacities:

1. The trustee of the trust.

2. The minor's employer.

3. The minor's parent or guardian.

D. When making the initial deposit of
monies pursuant to subsection B, paragraph 1 of this section, the minor's
employer shall provide written notification to the financial institution that
the monies are subject to this article.

E. Once the
minor's employer deposits the monies into the trust, the minor's employer shall
have no further obligation or duty to monitor or account for the
monies. The trustee of the trust shall be the only individual or
entity with the obligation or duty to monitor and account for the monies once
the monies have been deposited by the minor's employer.� The trustee of the
trust shall conduct an annual accounting of the monies held in trust in
accordance with generally recognized professional accounting and auditing
principles.

F. At any
time, a parent, a guardian, the trustee or the minor, through the minor's
guardian ad litem, on a showing of good cause may request that the court amend
or terminate the trust, notwithstanding any provision in the declaration of
trust. The court may only amend or terminate the trust after the
court provides the parties with reasonable notice and an opportunity to be
heard.

G. A parent or guardian shall
promptly notify the minor's employer, in writing, of any change in facts that
affect the employer's obligation or ability to set aside the monies in
accordance with the order, including a change of financial institution or
account number or the existence of a new or amended court order.� The written
notification shall include a true and accurate copy of the trustee's written
statement pursuant to section 23-345.03 and a certified copy of any new
or amended order, as applicable.

H. For a minor's contract to perform
artistic or creative services that is not submitted to the court for approval
pursuant to section 23-345.01 or if the court denied approval, all of the
following apply:

1. The employer shall set aside and
deposit fifteen percent of the minor's gross earnings pursuant to the contract
in a trust account for the benefit of the minor.

2. At least one parent or guardian
shall serve as the trustee of the trust account.� A parent, guardian or trustee
or the minor through the minor's guardian ad litem may petition a court of
competent jurisdiction to appoint another individual or entity to serve as
trustee of the trust.� The court may appoint another individual or entity to
serve as the trustee of the trust if the court believes it is in the best
interests of the child.

3. The minor's employer shall provide
written notification to the financial institution that the monies are subject
to this article.

I. The relationship between the
parent or guardian and the minor is a fiduciary relationship pursuant to title
14, irrespective of whether a court has issued a formal order to that
effect. The parent or guardian serving in a fiduciary relationship
shall pay all liabilities incurred by the minor under the contract with the
earnings of the minor, which includes:

1. Taxes.

2. Payments for personal services
rendered to the minor.

3. Payments for professional services
rendered to the minor.

4. Other reasonable business-related
expenses.

J. This section does not alter any
other existing responsibility of a parent or legal guardian to provide for the
support of a minor child.
END_STATUTE

START_STATUTE
23-345.03.

Trust account; withdrawals; trustee's written statement;
notification; requirements

A. The trustee shall establish a
trust account pursuant to this section at a financial institution that is
located in this state within seven business days after the minor's contract is
executed.

B. Withdrawals from the trust are
prohibited unless:

1. The beneficiary attains eighteen
years of age and submits a certified copy of the minor's birth certificate to
the financial institution where the trust is located.

2. The minor beneficiary is
emancipated by the court and submits a certified copy of the court's
emancipation order to the financial institution where the trust is located.

3. Ordered by the court.

C. Within ten business days after the
minor's contract is executed, the trustee shall prepare a written statement
under the penalty of perjury and provide a copy to the parent, guardian,
guardian ad litem, the minor's employer and the court, as applicable, and that
includes the following account information:

1. The name.

2. The address.

3. The telephone number.

4. The name of the account.

5. The account number.

6. The name of the minor beneficiary.

7. The name of the trustee of the account.

8. Any related information needed by
the minor's employer to deposit monies into the account.

9. A true and accurate copy of the
documents that created the trust, which may include a declaration of trust,
deed of settlement, account agreement, passbook or similar documentation.

D. On application by the trustee to
the financial institution, the financial institution may handle the monies in
one or more of the following methods:

1. Transfer monies to another account
at the same financial institution, if the monies transferred shall continue to
be held in trust.

2. Transfer monies to another
financial institution if the monies transferred continue to be held in trust
and the transferring financial institution has provided written notification to
the financial institution to which the monies will be transferred.

3. Use all or part of the monies to
purchase and hold in trust for the benefit of the minor the following:

(
a
) Investment
funds offered by a company registered under the investment company act of 1940
(54 Stat. 789) if:

(
i
) The
underlying investments are equity securities.

(
ii
) The
investment fund is a broad-based index fund.

(
iii
) The
investment fund invests broadly across the domestic or a foreign regional
economy, is not a sector fund and has assets under management of at least
$250,000,000.

(
b
) Government
securities and bonds, certificates of deposit, money market instruments, money
market accounts or mutual funds investing solely in those government securities
and bonds, certificates, instruments and accounts that are available at the
financial institution where the trust fund is held.

E. The purchases made pursuant to
this section shall have the maturity date on or before the beneficiary attains
eighteen years of age.

F. Any proceeds generated from the
trust account shall be redeposited into the account or used to make further
investment purchases.
END_STATUTE

Sec. 2.
Applicability

This act applies to contracts that are
entered into between an unemancipated minor and any party or third party on or
after January 1, 2027.