Service Provider Obligations

(a) Living wage royalty fee Beginning on a date determined appropriate by the Fund Administrator, the service provider shall charge each person charged a subscription fee by the service 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. (b) Notice of additional fee In each statement 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 provider from the living wage royalty fee in any calculation by the service provider of the total costs or revenue of content 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 service provider under this Act; and (B) retain such book and records for a period 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 providers provide the Fund Administrator information on— (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 service provider; and (iv) data of the service provider with respect to the number streams accrued by artists through such service provider; and (B) audit the books and records of a service provider to verify any information provided by that service provider under subparagraph (A).