Legislation Needed to Loosen Finance Rules

Any loosening of industry rules to allow talent agents to solicit investments from producers and other investors would require legislation first, State Sen. John Burton (D-San Francisco) said in an interview.

Burton’s comment follows a written opinion by legislative counsel Bion M. Gregory that throws into doubt the ongoing push by agents to gain the kind of flexibility they want to expand into other businesses and attract capital.

The dispute stems from a stalemate between the Assn. of Talent Agents trade group and the Screen Actors Guild over revamping their “franchise agreement” that governs the relationship between the two groups and which expires in January. The financial interest issue has proved the stickiest issue in the negotiations.

Agents, who are regulated by the state labor commissioner, argue that they should be allowed to raise capital from new sources. But the Screen Actors Guild has opposed the loosening of rules, arguing that it could lead to conflicts of interest if an agent shares financial interests with producers who hire actors.