CHAPTER 372

FORMERLY

SENATE BILL NO. 404

AN ACT TO AMEND TITLE 28 OF THE DELAWARE CODE RELATING TO SPONSORS AND PROMOTERS OF CERTAIN ENTERTAINMENT EVENTS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 9, Title 2B of the Delaware Code by adding thereto a new subchapter, designated as subchapter III, which new subchapter shall read as follows:

"Subchapter III. Regulation of Sponsors and Promoters of Public Entertainment Events other than Boxing, Wrestling, Racing, and Outdoor Music Festivals.

§929. Definitions

The following words, terms, and phrases, when used in this subchapter, shall have the meanings inscribed to them in this section except where the context clearly indicates a different meaning.

(a) 'Promoter' shall mean any person who, privately or as a business agent for a professional enterprise, offers his/her services to another person or organization - in return for the use of that person's/organization's name as sponsor, and a fee, commission or profit share - acquires, advertises and conducts a paid entertainment event for the general public.

(b) 'Entertainment Event' shall mean any form of circus or carnival; stage play; variety show; concert; magic, puppet or mime show, pageant, musical or similar types of public entertainment programs other than boxing, wrestling, racing and outdoor music festivals.

(c) 'Sponsor' shall mean any person or organization who agrees, verbally or in writing, to authorize the use of their name as an endorsement for, and supporter of, a paid public entertainment event promoted by another individual or business enterprise.

(d) 'Contract' shall mean a written agreement between the 'Promoter' and the 'Sponsor' which sets forth the authority, responsibility, and liability of each party and, most specifically, the financial details of the agreement.

§930. Sponsors' Responsibilities

(a) Each sponsor shall demand that any promoter, offering fund-raising services in the form of entertainment events, exhibit said promoter's current year occupational license required by Section 2301(a) or (b) of Title 30.

(1) If a sponsor enters into an agreement with a promoter, without having first verified said promoter's credentials and occupational license status, the sponsor assumes joint liability with the promoter for any failures of service promised by the promoter to the consumer public.

(b) Sponsors may, if they so desire, charge the promoter a fee for the use of their name (individual or organization) in promotional material concerning the entertainment event. Such fee, shall not be less than $500.00 and shall be specifically stated in the contractual agreement between sponsor and promoter.

§931. Promoters' Responsibilities

(a) Each promoter (individual and/or firm) shall acquire a Delaware annual occupational license and pay such other fees as are established in Section 2301 of Title 30.

(b) Promoters shall comply with Section 901(b) of this Title by obtaining any licenses or permits which may be required by the local jurisdiction where an entertainment event is to be presented.

(c) Each promoter shall fully reimburse the sponsor for any sponsor's advance expense payments or loans, before any other expenses, commissions or fees are paid from the proceeds of the event.

§932. Contracts

(a) All contractual agreements between promoters and sponsors shall be written in clear text, plain language.

(b) The contractual agreement shall contain in an appropriate location, the promoter's current Delaware occupational license number.

(c) Distribution of the profits of the venture shall be stated specifically as a percentage for the sponsor and the promoter or as a specific dollar share for the sponsor.

(d) Any fees or commissions agreed to for the promoter shall be considered as a part of the promoter's share of the profits and not an operating expense of preparing for, and conducting, the event."

Section 2. Severability Clause.

The provisions of this Bill are severable. The invalidity or unenforceability of any section, subsection, paragraph, sentence, clause, phrase or word shall not affect the validity or enforceability of the remaining sections, subsections, paragraphs, sentences, clauses, phrases or words.

Approved July 17, 1990.