(A) retain the required payment in a seg-
regated trust account; and 
(B) if the Fund Administrator is not able 
to identify such artist after a period determined 
reasonable by the Fund Administrator, deposit 
the payment back into the Fund. 
(b) RETENTION OF RECORDS.—The Fund Adminis-
trator shall— 
(1) keep books and records relating to— 
(A) amounts provided to the Fund Admin-
istrator under section 2(b)(2); and 
(B) amounts distributed from the Fund 
under subsection (a) of this section; and 
(2) retain any such book or record for a period 
of not less than 3 calendar years after the date on 
which such book or record is created. 
SEC. 4. SERVICE PROVIDER OBLIGATIONS. 
(a) LIVING WAGE ROYALTY FEE.—Beginning on a 
date determined appropriate by the Fund Administrator, 
service provider shall charge each person charged a sub-
scription fee by the provider an additional fee in an 
amount equal to 50 percent of the subscription fee charged 
by the service provider, except that such additional fee 
shall not be an amount less than $4 or more than $10. 
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(b) NOTICE OF ADDITIONAL FEE.—In each state-
ment or receipt a service provider provides for the charge 
of a subscription fee and the additional fee required by 
subsection (a), the service provider shall include a line 
item describing such additional fee. 
(c) TREATMENT OF ROYALTY.—A service provider 
may not include the amounts collected by the service pro-
vider from the living wage royalty fee in any calculation 
by the service provider of the total costs or revenue of con-
tent for the service provider. 
(d) RECORDS.— 
(1) RETENTION.—Beginning on the date on 
which the Fund administrator is designated— 
(A) each service provider shall keep books 
and records relating to activities carried out by 
the provider under this Act; and 
(B) retain such book and records for a pe-
riod of not less than 3 calendar years after the 
date on which such book or record is created. 
(2) REGULATIONS.—The Fund Administrator 
may— 
(A) require, by regulation, that service pro-
viders provide the Fund Administrator informa-
tion on— 
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(i) non-subscription revenue received 
by the service provider; 
(ii) revenue received by the service 
provider from subscription fee; 
(iii) the collection of the living wage 
royalty fee by the provider; and 
(iv) data of the service provider with 
respect to the number streams accrued by 
artists through such provider; and 
(B) audit the books and records of a serv-
ice provider to verify any information provided 
by that service provider under subparagraph 
(A). 
SEC. 5. ENFORCEMENT. 
The Fund Administrator may establish, by regula-
tion, penalties for— 
(1) a violation of a prohibition under this Act 
by a service provider; or 
(2) a failure to comply with a requirement 
under this Act by a service provider. 
SEC. 6. DEFINITIONS. 
In this Act: 
(1) ARTIST.—The term ‘‘artist’’— 
(A) means a human creator; and 
(B) does not include— 
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(i) corporate entities; or 
(ii) fully generative artificial intel-
ligence. 
(2) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a single non-profit entity that is— 
(i) established solely for the purpose 
of establishing and administering the 
Fund; 
(ii) governed by a Board of Directors 
that includes— 
(I) committees that are composed 
of a mix of voting and nonvoting 
members; and 
(II) 
artist 
representatives 
as 
members of the Board; and 
(iii) able to demonstrate to the Reg-
ister that, by the date described under sec-
tion 3(a)(2) the entity will have the admin-
istrative and technological capabilities to 
establish and administer the Fund in ac-
cordance with this Act; and 
(B) if no entity meets the criteria under 
subparagraph (A), an entity determined by the 
Register to most nearly fit such criteria. 
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(3) ELIGIBLE
FEATURED
ARTIST.—The term 
‘‘eligible featured artist’’ means a featured artist 
who— 
(A) registers with the Fund; and 
(B) provides the Fund Administrator with 
the information determined necessary by the 
Fund Administrator— 
(i) identify or locate such featured 
artist; and 
(ii) provide payment to such featured 
artist (or a person designated by such art-
ist to receive such payment on behalf of 
such artist). 
(4) ELIGIBLE
NON-FEATURED
ARTIST
DE-
FINED.—In this paragraph, the term ‘‘eligible non- 
featured artist’’ means a non-featured artist that 
provides the American Federation of Musicians and 
Screen Actors Guild and the American Federation of 
Television and Radio Artists Intellectual Property 
Rights Distribution Fund (or any successor Fund) 
with the information determined necessary by such 
Fund— 
(A) to identify or locate such non-featured 
artist; and 
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(B) provide payment to the non-featured 
artist (or a person designated by such artist to 
receive such payment on behalf of such artist). 
(5) END USER.—The term ‘‘end user’’ means a 
unique person that receives an offering from the 
service provider, including the following: 
(A) A person who pays no fee for receiving 
the offering. 
(B) A person who pays a subscription fee 
for receiving the offering. 
(6) FEATURED
ARTIST.—The term ‘‘featured 
artist’’ means an artist who is prominently featured 
on a sound recording made available through an of-
fering. 
(7) FUND.—The term ‘‘Fund’’ means the Art-
ist Compensation Royalty Fund established by the 
Fund Administrator under section 2(a). 
(8) FUND ADMINISTRATOR.—The term ‘‘Fund 
Administrator’’ means the eligible entity designated 
under section 2(a)(1). 
(9) LIVING
WAGE
ROYALTY
FEE.—The term 
‘‘living wage royalty fee’’ means the additional free 
required to be charged under section 4(a). 
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