A bill that would have the effect of barring studios from selling movies to their sibling TV or cable networks for less than their fair market value was approved by a California senate committee on Tuesday and now moves on for consideration by the senate as a whole. Senator Sheila Kuehl, who authored the bill, said, "Studios should not be allowed to undervalue their products in sweetheart deals with their own parent company and cost creative talent and crew members their rightful share in residuals and contributions to health and welfare funds." The bill was applauded by Writers Guild of America President Patric Verrone, who said that it would end a "Hollywood accounting technique" that has hurt the talent community. However, the MPAA called passage of the bill "regrettable," saying it would upend "successful business practices that have made the entertainment industry a vital engine in the California State economy."
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