Last year at this time, I reported to you that our newly created Leadership Council (LC) had finally put real teeth into the DGA's lobbying efforts in Washington. I am happy to report that in 2003 our efforts to promote the DGA's Legislative Agenda have continued to meet with ever-growing success:
Our DGA staff have worked closely with several states to pass tax incentive legislation that will encourage film production to return to the U.S. We have also fought to protect embattled film commissions that were about to lose their funding. To date we have worked on both these efforts in: Louisiana, New Mexico (legislation in both passed in late 2002), Minnesota, New York, New Jersey, Florida, Illinois, Pennsylvania and Oregon. Already in early January 2004 we have been asked for our help and expertise from Utah, Georgia, Hawaii, Tennessee and Indiana. In addition, we are currently working closely with the Senior Advisor to Governor Schwarzenegger whose legislative portfolio includes a major focus on runaway production.
I can report firsthand on the success of the new tax incentive legislation in Louisiana, because I shot my most recent film,
Unchain My Heart, there last spring. We saved approximately $4 million. Other films quickly moved their locations to Louisiana to take advantage of this windfall, and Louisiana Film Commissioner Mark Smith recently reported that film production in that state has risen from $20 million a year to $200 million a year. Many of these films were scheduled to shoot overseas but returned to the U.S. because of these subsidies.
Now, for the first time in seven years, we have an opportunity to see Tax Incentive Legislation passed on a federal level. Because of an adverse ruling by the World Trade Organization, Congress must repeal existing rules governing export subsidies and replace them with new legislation. The DGA has been lobbying for months to make sure that this new legislation contains a runaway production provision. By no means is this going to be a slam-dunk ... there are many powerful interests vying for a place at the table ... but I can assure you that we will be fighting diligently to make sure that our runaway provision is included when a House-Senate Conference writes the final bill this spring.
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COPYRIGHT PROTECTION AND PIRACY:
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Since our DGA Pension Plan is primarily funded by residuals, Piracy and Copyright Infringement are crucial issues that vitally affect all of our livelihoods. Your DGA is currently working on both state and federal levels to fight this mammoth problem. In 2003, we collaborated with the MPAA to secure the passage of The California Anti-Camcorder Bill (SB 1032), and we are currently working with Senators John Cornyn (R-TX) and Diane Feinstein (D-CA) to ensure the passage of their bill "Artists Rights and Theft Prevention Act" which is modeled on this California legislation.
This law would make it a felony to use a camcorder to record a motion picture in a theater and will make it easier to prosecute people who illegally distribute copyrighted material before its legitimate release.
Media Consolidation has become a growing reality in our lives. The "Employer Pool" is shrinking, especially with regards to Network Prime Time Program Ownership. (Please see the graphs on this page.)
In 2003, the DGA, as part of The Coalition for Program Diversity, submitted extensive filings with the Federal Communications Commission calling for a 25% Independent Producer Rule, to address the reality that vertical integration has resulted in the almost total loss of truly independent producers in television. Along with others in the creative community, the DGA had a number of conversations and meetings with Senator John McCain, Chairman of the Senate Commerce Committee, on how this problem might be addressed. We will be continuing to pursue this issue in 2004.
Again, I'd like to thank my co-chair of the Leadership Council, Paris Barclay, for his tireless work and inspired advice. Because of the war in Iraq, we did not even begin our 2003 fundraising campaign until June, but the Leadership Council continued to expand and make its voice heard:
- The Leadership Council raised $148,534 (114 members of the Leadership Council contributed $127,200 during the second six months of 2003).
- The Leadership Council added 24 new director members and two new AD/UPM members.
- The Leadership Council held nine events with legislative leaders who serve on vital Congressional Committees that are key to the DGA's legislative agenda: Senate Finance, Congressional and Senate Judiciary, Commerce, Health, Education, Labor and Pensions committees. These events have allowed us to build cordial relationships with these powerful legislators, and hopefully, they have become much more aware of and sympathetic to our DGA Legislative Agenda.
I hope that you'll make it a priority to read this DGA PAC page in each issue. It's often difficult to make our complex legislative agenda easily understandable. Therefore, we try to "thumbnail" in this space vital bits of information so they can be digested. We are also adding a regular graphics feature like the one seen in this issue which can help you visualize how our industry is so swiftly changing. Any members who would like more detailed analysis of specific pieces of legislation should feel free to contact the DGA Legislative Affairs Office, and our staff will inundate you with data.
Increasingly, it seems that our creative and economic rights are being impinged on by governmental actions, both legislative and administrative. It is vital for every DGA member to understand that we must either engage in the political process to protect our rights or lose them. Your DGA and its DGA PAC are the voice of creative leadership in Washington and State Capitols throughout the U.S. We are working for you.