Letter From Patric Verrone: Fair Market Value Bill
To My Fellow Members, With the 2007 negotiation behind us, and writers returning to writing
and creating entertainment, I’m pleased to deliver good news in my first post-contract ratification e-mail. As many of you know, the WGAW is one of the sponsors of a very important
bill in the California legislature. The bill, authored by State Senator Sheila Kuehl, is SB 1765, called
the “Fair Market Value Bill.” It
is designed to end the tenacious practice among Hollywood
conglomerates who resell movies and TV shows among sister subsidiaries
and, accordingly, diminish the residuals paid to above-the-line talent,
moneys
payable to profit participants, and benefits paid into below-the-line
pension and health plans. The bill
requires that these sales be valued at a “fair market” rate, as if they had been made as an arms-length transaction. On Tuesday, I was joined by eight of our fellow writers (all of whom had
been victimized by this practice in the calculation of their residuals on M*A*S*H) in testifying before the state Senate Judiciary Committee
in Sacramento. Despite
an onslaught of opposition from no fewer than a dozen witnesses
representing most
of the studios and the Motion Pictures Association, the Committee voted
by three to one to pass the bill on to the full State Senate where a
vote will
likely occur in May. If it passes, the bill will head to the State Assembly for a similar series of
votes. This
success was an important step, and we are grateful to the support
we received from the Teamsters, the California State Labor Federation,
and members of SAG, but there is much work to be done to see this
process to a
positive conclusion. The studios will be throwing great weight and energies into defeating this bill and
we need all the help we can get. Writers
who have worked on TV shows and films that have had residuals
or profit participation diminished or eliminated thanks to corporate
self-dealing should come forward so that we can “put a face” on this
issue and continue to impress upon legislators the need to be involved
in making Hollywood accounting accountable. I look forward to writing again soon with more news and ways to
capitalize on the unprecedented engagement and activation of our membership. Best, Patric M. Verrone President, WGAW




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