VSDA v. Schwarzenegger appeal pending

Entertainment Merchants Assn. legislative update for February

-- Video Business, 3/3/2008 5:08:00 PM

MARCH 3 | The following summarizes key government affairs activities during January of the Entertainment Merchants Assn.

• VSDA v. Schwarzenegger: All the briefs have been filed in the appeal of last year’s decision that permanently enjoined enforcement of the videogame restriction law enacted by the state of California in 2005. The appeal is pending in the U.S. Court of Appeals for the Ninth Circuit. In addition to the briefs of the state and of EMA and the Entertainment Software Assn., a brief supporting EMA and ESA was filed by the Media Coalition.

• New Mexico Video Game Tax Bill:The proposed 1% excise tax on sales of videogames, videogame equipment and TVs in the state of New Mexico (House Bill 583) died when the legislature adjourned for the year. EMA opposed the measure.

• Massachusetts Video Game Hearing: A hearing will be held in Boston on March 18 on a proposed Massachusetts videogame restriction bill (House Bill 1423). EMA will be present at the hearing to voice opposition to the measure.

• Secondhand Goods Bills: A pending Hawaii bill (House Bill 2553) would require daily electronic reporting of used goods acquired by pawnbrokers and secondhand dealers. EMA recommended that, if electronic reporting is to be required, the holding period for secondhand goods acquired be reduced from 15 to no more than 5 days.

A bill to require recordkeeping for purchases of used videogames has been introduced in New York (Assembly Bill 10057).

In Utah, a bill has been introduced to make some technical and clarifying corrections in the secondhand goods law enacted by the state last year. The 2007 law, which applies to all businesses that engage in the “purchase, exchange, or sale of used or secondhand merchandise,” imposes recordkeeping, holding and licensing requirements on the businesses. EMA raised concerns about its application to the sale of excess copies of previously viewed rental product and to DVDs and videogames traded-in for store credit. This year’s bill (House Bill 192) will set up an administrative procedure for exempting certain types of goods (such as previously viewed product) from the scope of the law. EMA is seeking to have the measure amended to allow an exemption for trade-in transactions as well.

Virginia House Bill 604 would establish licensing, recordkeeping, reporting and holding requirements for secondhand goods dealers in Virginia. Notably, excess rental inventory, merchandise acquired from another secondhand goods dealer, and merchandise acquired as a trade-in for other merchandise would be excluded from the definition of “secondhand goods.” To address cash purchases, EMA recommended that the measure be amended to exempt used DVDs and videogames from the definition of “secondhand goods,” just as used books are exempted, or alternatively, to establish a numerical threshold for triggering the recordkeeping, reporting and holding requirements.