Page:Hatch-Goodlatte Act.pdf/17

Rh :::::“(gg) expenses that are more than 10 percent of the annual mechanical licensing collective budget; and
 * “(hh) the efforts of the collective to locate and identify copyright owners of unmatched musical works (and shares of works).
 * “(II) —On the date on which the mechanical licensing collective posts each report required under subclause (I), the collective shall provide a copy of the report to the Register of Copyrights.
 * “(viii) —An individual serving as an officer of the mechanical licensing collective may not, at the same time, also be an employee or agent of any member of the board of directors of the collective or any entity represented by a member of the board of directors, as described in clause (i).
 * “(ix) —
 * “(I) —The mechanical licensing collective shall—
 * “(aa) ensure that the policies and practices of the collective are transparent and accountable;
 * “(bb) identify a point of contact for publisher inquiries and complaints with timely redress; and
 * “(cc) establish an anti-comingling policy for funds not collected under this section and royalties collected under this section.
 * “(II) —
 * “(aa) —Beginning in the fourth full calendar year that begins after the initial designation of the mechanical licensing collective by the Register of Copyrights under subparagraph (B)(i), and in every fifth calendar year thereafter, the collective shall retain a qualified auditor that shall—
 * “(AA) examine the books, records, and operations of the collective;
 * “(BB) prepare a report for the board of directors of the collective with respect to the matters described in item (bb); and
 * “(CC) not later than December 31 of the year in which the qualified auditor is retained, deliver the report described in subitem (BB) to the board of directors of the collective.
 * “(bb) —Each report prepared under item (aa) shall address the implementation and efficacy of procedures of the mechanical licensing collective—
 * “(AA) for the receipt, handling, and distribution of royalty funds, including any amounts held as unclaimed royalties;
 * “(BB) to guard against fraud, abuse, waste, and the unreasonable use of funds; and