; or (C) whose work of visual art is first created in the United States or in a country that provides a royalty for the resale of a copy of a work of visual art; or (2) the successor as copyright owner of an author described in paragraph (1). (h) Regulations The Register of Copyrights shall issue regulations governing visual artists’ copyright collecting societies described in this section, including regulations that— (1) establish a process by which a person is determined to be and designated as a visual artists’ copyright collecting society, which process shall— (A) require a visual artists’ copyright collecting society authorized to administer royalty collections and distributions under this title to— (i) have prior experience in licensing the copyrights of authors of works of visual art in the United States; or (ii) have been authorized by not fewer than 500 authors of works of visual art, either directly or through reciprocal agreements with foreign collecting societies, to license the rights granted under section 106; and (B) provide that a person shall no longer be designated as a visual artists’ copyright collecting society if, during a period of not less than 5 years that begins after the date on which the person is designated as a visual artists’ copyright collecting society, the person does not distribute directly to each author, or to the successor as copyright owner of each author, the amount of the royalties required to be distributed under subsection (d); (2) determine a reasonable amount of administrative expenses that a visual artists’ copyright collecting society may deduct from the royalties payable to an author of a work of visual art under subsection (d)(2); and (3) establish a process by which— (A) not less frequently than annually, a visual artists’ copyright collecting society may obtain from any person that conducts auctions a list of each copy of a work of visual art sold in those auctions that is by an author represented by the collecting society