Volume IV No. 2

A publication of the National Association of Theatre Owners

Advertise in In Focus

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Camcording, Wages, Overtime, Health Plans
108th Congress Considers Many Exhib-Related Issues
by Jonathan Yarowsky
NATO Washington Counsel

Now that the 108th Congress has moved into its second session, it may be useful to do a quick “roundup” of the high priority issues we are tracking for NATO.

Anti-Camcordering Legislation. With a steep decline of record sales in the past several years and increasing fears that films will be next to suffer from online piracy, Congress took time in 2003 to begin consideration of proposals to protect intellectual property against such piracy. While bills have been introduced in both the House and the Senate to address this growing problem, an important new element has entered the debate: anti-camcordering provisions. Bipartisan legislation is now pending in both chambers that would make it a federal offense to camcord a motion picture in a movie theatre. In the House, the ranking member of the Judiciary Committee, Rep. John Conyers (D-Mich.), has introduced the “Author, Consumer, and Computer Owner Protection and Security Act of 2003” (H.R. 2572), which includes anti-camcording provisions. This legislation is expected to be incorporated into a second bill pending in the House Judiciary Committee.

In the meantime, Senate Judiciary Committee members Dianne Feinstein (D-Calif.) and John Cornyn (R-Texas) have introduced the “Artists’ Rights and Theft Prevention Act” (S. 1932). This legislation would also make it a felony to attempt to camcord a motion picture in a theatre. NATO has voiced its general support for such legislation, but we continue to work with the sponsors of the bills and the MPAA to ensure that theatre owners’ interests will be protected in any final legislation.

Although the House has approved association health plan legislation, the Senate has yet to act on the companion bill (S. 545) that is pending before the Senate Health, Education, Labor and Pensions (HELP) Committee. One encouraging note is that the chairman of the Senate HELP Committee, Judd Gregg (R-N.H.), has pledged to make health insurance accessibility a top priority issue in 2004.

Minimum Wage. Sen. Edward M. Kennedy (D-Mass.) continues to serve as the lead Congres-sional supporter of federal legislation to increase the minimum wage. While other labor issues took center stage in the first session of the 108th Congress, Kennedy and others will likely use the presidential election year to press forward with attempts to increase the minimum wage, which has remained at $5.15 an hour since 1997. With a minimum-wage hike blocked in Congress for the past several years, proponents have turned with considerable success to obtaining “living wage” requirements in states and municipalities. Since 1997, the number of states setting a higher minimum wage rose from six (plus the District of Columbia) to 12. In addition, more than 100 local governments have living-wage provisions, most affecting their own workers or employees of firms with contracts with the cities, towns and counties. We expect that the federal minimum wage issue will remain an important policy issue in 2004.

Overtime Rules. In March 2003, the Department of Labor proposed new regulations governing overtime pay, the first sweeping proposal to change these rules in more than 60 years. Specifically, the Labor Department proposal would raise the weekly salary level below which eligible workers will be automatically entitled to overtime; but at the same time, it would create and expand new exemptions for excluding certain categories of workers from overtime pay. The rules remain in the proposal stage, with the Labor Department currently reviewing the more than 75,000 sets of comments that it has received.

Enactment of the proposed rules would not affect NATO members because motion picture theatre employees are expressly exempt from federal overtime requirements under the Fair Labor Standards Act (FLSA) of 1938, as amended, 29 U.S.C. §201. Specifically, the FLSA provides an exemption so that federal overtime provisions do not apply to “any employee employed by an establishment which is a motion picture theatre,” 29 U.S.C. §213(a)(27). However, the new labor rules are indicative of the larger political debate brewing between labor organizations and the Bush administration, a debate that is expected to heat up as the 2004 presidential election draws closer. In fact, the Labor Department’s proposed rules were the center of controversy at the end of the last session, when efforts were made to add such provisions to the fiscal year 2004 Labor Department-Health and Human Services Department appropriations bill that would have prohibited the Department of Labor from implementing any new overtime rules to current application. When the administration vowed to veto any bill that would undermine the proposed new rules, it was subsequently eliminated from the final appropriations package.

Another bill affecting working conditions of U.S. workers may also receive attention in the new session. The Family Time Flexibility Act (H.R. 1119), introduced in the first session of the 108th Congress, would permit private sector employees to offer their employees the option of receiving overtime pay in the form of paid compensatory time in lieu of cash wages. No action has yet been scheduled in the House on the measure, but we anticipate that it may be brought up for consideration later this year.

Association Health Plans. Last June, the House passed the Small Business Health Fairness Act (H.R. 660). This legislation would allow for the creation of association health plans (AHPs) so that business owners can band together across state lines through their membership in a bona fide trade or professional association, such as NATO, to purchase health coverage for their employees and families. In turn, this group of business owners would be able to pool their purchasing power and take advantage of volume discounts and administrative efficiencies.

NATO continues to be a strong supporter of this measure. Although the House has approved AHP legislation, the Senate has yet to act on the companion bill (S. 545) that is pending before the Senate Health, Education, Labor and Pensions (HELP) Committee. One encouraging note is that the chairman of the Senate HELP Committee, Judd Gregg (R-N.H.), has pledged to make health insurance accessibility a top priority issue in 2004. President Bush has voiced strong support for AHPs as well. NATO, working as part of a broad coalition, will continue to support this legislation and work toward its swift passage into law.

At NATO’s last board and membership meeting in November, the request was made for member letters in support of this important legislation. Obviously, grassroots efforts can make a critical difference. If you would wish to write a letter to your senators, please contact the NATO offices for a target list and important background information.

 

 

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