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The Case of the $80 Royalty Check
Wall Street Journal ^ | March 5, 2009 | Sarah McBride

Posted on 03/05/2009 7:43:43 AM PST by reaganaut1

SACRAMENTO, Calif. -- Patty Milich, a state employee, spent five months trying to give $80 to painter Rick Stitch.

An unassuming arts administrator, Ms. Milich leads a double life as California's official art sleuth. The job tracking down abstract expressionists is an unintended consequence of a little-known 1977 law designed to cut artists in on the profits from the resale of their works.

When a work of art is resold in the state, or by a California resident, the seller must set aside 5% of the gross selling price to pay the artist. The law applies to any resale of $1,000 or more within 20 years of an artist's death, so long as the sale isn't between dealers.

In theory, the law is a boon for artists. In practice, it means Ms. Milich sometimes must spend months trying to deliver paltry sums to people who have faded into obscurity, moved abroad or simply don't want to be bothered.

...

The payments can run into the tens of thousands of dollars but usually are more modest, about $300 to $400, Ms. Milich says. Galleries and dealers who can't find the artists are supposed to send the cash to the Arts Council, which holds it in escrow while it tries to locate them. About $250,000 has come to the state agency to pass on to artists.

Millions more due artists may have leaked out of the system. Many buyers and sellers don't know about the law; others simply ignore it. Some sellers deliberately pick locations outside California to sell their works in order to avoid paying the royalty, arts lawyers say.

Many artists whose names Ms. Milich receives are tracked down after a quick database search. About one-third of the cases require work that can go on for months.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Culture/Society; Government; US: California
KEYWORDS:
This is crazy. How much taxpayer money was spent on her salary and benefits while she was trying to find the painter owed $80? No wonder the state is bankrupt.
1 posted on 03/05/2009 7:43:43 AM PST by reaganaut1
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To: reaganaut1
When a work of art is resold in the state, or by a California resident, the seller must set aside 5% of the gross selling price to pay the artist

Wow. Every time it's sold, the artist is supposed to get money.

I hope I'm correct when I say "Only in California government would this make sense."

2 posted on 03/05/2009 7:48:00 AM PST by Izzy Dunne (Hello, I'm a TAGLINE virus. Please help me spread by copying me into YOUR tag line.)
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To: reaganaut1
Doesn't California have a "Lost Funds Office"? After reasonable attempts to find the guy, just put the money in his name there and let him find it.

(It's generally a good idea to check your state Lost Funds office every year or thereabouts, just in case. I got $140 that had gotten lost in the mail and returned to the sender once.)

3 posted on 03/05/2009 7:48:30 AM PST by steve-b (Intelligent design is to evolutionary biology what socialism is to free-market economics.)
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To: reaganaut1
Why doesn't this apply to home builders, for example?

Every time it's sold, the original builder gets 5%.

How about auto makers?

Oh, crap, I'm giving them ideas...

4 posted on 03/05/2009 7:50:32 AM PST by Izzy Dunne (Hello, I'm a TAGLINE virus. Please help me spread by copying me into YOUR tag line.)
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To: reaganaut1; neverdem

Patty Milich is a state employee.

How many tax dollars is she really worth?
How many tax dollars is her WORK really worth?
How many tax dollars does she THINK she is really worth?

Do you notice the writer doesn’t even NOTICE the waste of time and tax dollars here?


5 posted on 03/05/2009 7:53:11 AM PST by Robert A Cook PE (I can only donate monthly, but socialists' ABBCNNBCBS continue to lie every day!)
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To: reaganaut1
Rick Stitch's abstract art? ........


6 posted on 03/05/2009 7:56:34 AM PST by Daffynition ("Beauty is in the sty of the beholder." ~ Joe 6-pack)
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To: Daffynition

As my friend Derek likes to point out, “Art today can be a booger with a hair in it!”


7 posted on 03/05/2009 7:59:46 AM PST by Dr. Bogus Pachysandra ( Ya can't pick up a turd by the clean end!)
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To: Dr. Bogus Pachysandra

HAHAHA! Priceless!


8 posted on 03/05/2009 8:03:52 AM PST by Daffynition ("Beauty is in the sty of the beholder." ~ Joe 6-pack)
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To: reaganaut1

In a truly free market when you buy something it is yours and you can do anything you want with it, if the artist wants more money from a painting then put a steep price on it to begin with and if it doesn’t sell, oh well.


9 posted on 03/05/2009 8:09:42 AM PST by tiki (True Christians will not deliberately slander or misrepresent others or their beliefs)
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To: reaganaut1
Whatever happened to the first sale doctrine? Other than the $1000 minimum sale price, is there anything which would prevent California from extending this to used CDs, DVDs and books in contradiction to US law?
10 posted on 03/05/2009 8:19:56 AM PST by KarlInOhio (Obama: removing the speed limit on the Road to Serfdom)
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To: reaganaut1
... the Arts Council, ...

This whole concept beggars the imagination for a response. Only the prissy, self-absorbed, sippers-of-life could possibly have dreamed up such a waste of time, talent and recourses.

I bet it makes them 'feel' good, though.

11 posted on 03/05/2009 8:22:28 AM PST by RobinOfKingston (Democrats, the party of evil. Republicans, the party of stupid.)
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To: KarlInOhio
Whatever happened to the first sale doctrine? Other than the $1000 minimum sale price, is there anything which would prevent California from extending this to used CDs, DVDs and books in contradiction to US law?

that was my first thought as well. 

CA is a screwy place.

12 posted on 03/05/2009 8:32:05 AM PST by zeugma (Will it be nukes or aliens? Time will tell.)
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To: zeugma
This prompted my little excercise in ferreting out stuff on the Internet this morning. Oh you may beat up on California but there are so many other states that spend more for the arts: See this press release from the NASSA

New York is spending over 10 times what California spends on its Art Council. Go there to see what your state spends on the arts.

And if that doesn't make your blood boil look at this: What the Stimulus holds for the Arts

13 posted on 03/05/2009 9:01:12 AM PST by BoneHead
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To: BoneHead

It’s not just spending on the “arts” that I question, though frankly I see little reason to fund “artists” who can’t compete in the free market. What I thought was strange was that this tax seemed to fly in the face of the “doctrine of first sale”. This has been fully adjudicated by the supreme court. I wonder how this tax passes muster.


14 posted on 03/05/2009 10:05:32 AM PST by zeugma (Will it be nukes or aliens? Time will tell.)
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