An Act To Ensure,Royalties to Visual Artists
Maine Legislature, Session 124, LD 1196
Committee: Education and Cultural Affairs
Sponsors: ALFOND, WEBSTER, BLISS, GERZOFSKY, BUTTERFIELD, CAIN, HASKELL

Legislative Document 
No. 1196 
S.P.444· 
In Senate, March 25,2009 
An Act To Ensure,Royalties to Visual Artists 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
Presented by Senator ALFOND of Cumberland. 
Cosponsored by Representative WEBSTER of Freeport and, 
9tg(J~ 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: BLISS of Cumberland, GERZOFSKY of Cumberland, Representatives: 
BUTTERFIELD of Bangor, CAIN of Orono, HASKELL of Portland, MacDONALD of 
Boothbay, NELSON ofFalmo~th.' 
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Printed on recycled pilper 
Be it enacted by the People ofthe State of Maine as follows: 
Sec. 1. 10 MRSA c. 208-C is enacted to read: 
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CHAPTER 208-C 
VISUAL ARTIST ROYALTIES 
§1299-A. Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1. Art dealer. "Art dealer" means a person who is actively and principally engaging 
. in or conducting the business of selling works of firie art for which business the person 
validly holds a sales tax registration certificate issued by the Department of 
Administrative and Financial Services, Bureau of Revenue Services . 
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2. Artist. "Artist" means a person who creates a work of fine art and who, at the 
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time of resale of the work of fine art, is a citizen of the United States or has been ·a 
resident of the State for at least the previous 2 years. 
3. Fund. "Fund" means the Maine Arts Commission· Visual Artists Fund established 
in section 1299-C. 
4. Worlc of fine art. "Work 'of fine art" means an original painting, sculpture or 
drawing or an original work of art in glass. 
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§1299-B. Establishment of required royalties 
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1. Royalty. Except as provided in section 1299-E, when a work of fine art is sold 
and the seller resides in this State or the sale takes place in this State, the seller' or the 
. seller's agent shall pay to the artist of that work of fine art or to that artist's agent a royalty 
payment that is 5% of the amount of the sale. 
2. Waiver. The right of the artist to receive a royalty payment in an amount equal to 
5% of the amountorthe sale may be waived only by a written contract providing for an 
amount in excess of5% of the amount ofthe sale. 
3. Assignment. 
An artist may assign the right to collect the royalty ,payment 
provided by this section to another individual or entity. An assignment does not have the 
effect of creating a waiver unless it meets the requirements of subsection 2. 
. 4. Multiple artists. If 2 or more artists are the principal creators of a work of fine 
art, then the royalties must be divided among them equally, rounded down to the nearest 
one cent. 
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§1299-C. Maine Arts Commission Visual Artists Fund 
The Maine Arts Commission shall create and oversee the Maine Arts Commission 
Visual Artists Fund, for the purpose of holding and distributing funds for artists who ar~ 
owed royalties under this chapter and have not received those owed royalties. 
§1299-D. Operation 
1. Withholding of royalties. When a work of fine art is sold at an auction or by a 
gallery, broker, museum or other person acting as the agent for the seller, the agent shall: 
A. Withhold 5% Of the amount of the sale as a royalty; 
B. Locate the artist; and 
C. Pay the royalty to the artist. 
2. Payment of royalties. If the seller or agent is unable to locate and pay the artist 
under subsection 1 within 90 days ofthe sale of a work of fine art, the amount equal to 
5% of the amounf of sale must be transferred to the fund on the 91 st day. 
3. Right to pursue damages. If a seller or agent is unable to locate and pay an artist 
the royalty in the amount equal to 5% of the sale of a work of fine art by the artist or fails 
to transfer that royalty amount to the fund, the artist may bring an action for damages 
within 3 years after the date of the sale. or one year after the discovery of the sale, 
whichever is longer. The prevailing party in any action brought under this section is 
entitled to reasonable attorney's fees in an amount determined by the court .. 
4. Claiming funds from the fund. The Maine Arts Commission shall attempt to 
locate an artist for whom money is received pursuant to this section. If the commission is 
unable to locate the artist and the artist does not file a written claim for the money 
received by the fund within 7 years of the date of the sale of work of fine art that gives 
rise to the royalty, the right of the artis·t to claim the royalty terminates, and the money 
must be transferred to a grant program under the auspices of the Maine Arts Commission 
that funds school-based arts education projects. 
5. Creditor exemption. Any amount of money held by the seller Or agent for the 
payment of royalties to an artist pursuant to this section is exempt from enforcement of a 
money judgment by the creditors of the seller or agent. 
6. Royalties after the death of an artist. Upon the death of an artist, the rights and 
duties created under this section inure to the artist's heirs, legatees or personal 
representative, until the 20th anniversary of the death of the artist. The provisions of this 
subsection apply only with respect to an artist who dies after July 1, 2009. 
§1299-E. Exemptions 
The following transactions are exempt from the payment or collection of royalties 
under this chapter: 
2. 
1. Initial sale. The initial sale of a work of fine art if the artisrhas legal title to the 
work at the time of the initial sale; . 
2. Resale of less than $1,000. Theresale of a work of fine art for a gross sales price 
ofless than $1,000; 
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3. Death of the artist. Except as provided in section 1299-D, subsection 6, the 
resale after the death of the artist; 
4. No profit. The resale of the work of fine art for a gross sales price less than or 
equal to the purchase price paid by the seller; 
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5. Trade of art. The transfer of a work of fine art that is exchanged for one or more 
works of fine art, or for a combination of cash, and other property and one or more works 
of fine art when the fair market value of the property exchanged is less than $1,000; 
6. Art dealers. The resale of a work of fine art by an art dealer to a purchaser within 
years of the initial sale of the work of fine art by the artist to an art dealer only if each 
intervening resale is between art dealers; and 
. 7. Permanent fixture of stained glass art. A sale of work of stained glass art where 
the work has been permanently attached to real property and is sold as part of the real 
property to which it is attached.' 
§1299-F. Scope of applicability 
This chapter applies to works of fine art created before and after its effective date and 
to sales of fine art occurring on or after its effective date. 
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SUMMARY 
This bill requires that an artist receive a minimum 5% royalty on the resale of a work 
of fine art sold for more than $1,000. It guarantees the right to attempt to pursue damages 
for the failure to pay royalties. This bill also establishes the Maine Arts Commission 
Visual. Artists Fund for the purpose of holding royalties owed to artists that have not 
received those royalties yet. 
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