NATIONAL ASSOCIATION OF THEATRE OWNERS OF MICHIGAN, INC. 121 W. Allegan Street, Lansing, MI 48933 / 517.482.9806 / Fax 517.482.9934 TO: NATO of Michigan Members OFFICERS AND DIRECTORS FROM: Jack Schick President and National Delegate Date: December 27, 2006 Mark Henning Neighborhood Cinema Group RE: Year End Report Vice President Charlie Murray Phoenix Theatres It has been another busy year for NATO of Michigan. The minimum wage legislation, Annual NATO of Michigan Legislative Reception, Michigan Association of Theatre Owners Treasurer PAC, NATO of Michigan Scholarship, and exploring a new NATO of Michigan insurance Rusty Belcher National Amusements services program were some of the highlights for 2006. All in all, it was a very successful year for NATO of Michigan, and we look forward to building on those successes in the Secretary coming year. Joe Chabot Moore Theatres As for the Michigan Legislature, the 93rd legislative session has just concluded it’s two-year Directors session. There was much activity impacting NATO of Michigan members during this two- Terrell Falk year session. There was legislation to ban violent video games with harsh penalties for Cinemark USA, Inc. violators, which was expanded to include motion pictures. We were successful in amending Paul Glantz motion pictures out of the legislation before it went to the Governor for her signature. Then Emagine Entertainment, Inc. there was the Governor’s proposed 6% Film Rental Tax which NATO of Michigan vigorously opposed. We countered with a summer long ad campaign in our theaters Bob Goodrich Goodrich Quality Theaters throughout the state and when the state budget was finally completed the film rental tax was not included. A major victory for NATO of Michigan! Then, as we thought possibly things Nancy Hagan Loeks Theatres, Inc. would settle down for movie exhibition in the Legislature for 2006, the minimum wage issue & Celebration! Cinemas suddenly took center state in Michigan. Driven by 2006 election politics, Republicans hastily passed a dramatic increase in the minimum wage, the first phase of which would be effective Bob Sloan MJR Theatres October 1, 2006, one month prior to the November elections. In their haste, a federal overtime exemption for numerous employees in the state was deleted. Included in those Gary Geiger employers were movie theater owners. Again, after a summer long lobbying campaign, Neighborhood Cinema Group NATO of Michigan was successful in not only retaining the federal overtime exemption, but Cory Jacobson also convinced the Legislature to enact a new youth wage for those under 18 years of age at a Phoenix Theatres substantially reduced rate of pay. Through NATO of Michigan’s efforts we were able to mitigate the negative effects of this onerous wage hike on Michigan’s employers. John Loeks, Jr. Loeks Theatres, Inc. & Celebration! Cinemas Also in 2006, our Annual NATO of Michigan Legislative Reception was held in Lansing in Carol Moore the fall, with another terrific turnout by both our membership and members of the Legislature Moore Theatres and their staff. We look forward to an even better turnout in 2007! Joseph Pudussery Regal Entertainment Group The Michigan Association of Theatre Owners PAC was active in its first election, supporting numerous friends in the Legislature on both sides of the aisle who have supported movie Barb Zanetti exhibition in the past. All but one of those candidates was successful in the November Uptown Entertainment election. We look forward to working with them when the new Legislature convenes in January. Thanks go out again to all those who supported the PAC and have indicated an Executive Director Jack Schick ongoing commitment to support our friends in the Legislature in the future. Lansing, MI (517) 482-9806 CINEMARK USA, EMAGINE ENTERTAINMENT, INC., GOODRICH QUALITY THEATERS, LOEKS THEATRES, INC. & CELEBRATION! CINEMAS MJR THEATRES, MOORE THEATRES, NATIONAL AMUSEMENTS, NATO of WISCONSIN – UPPER MICHIGAN NEIGHBORHOOD CINEMA GROUP, PHOENIX THEATRES, REGAL ENTERTAINMENT GROUP, UPTOWN ENTERTAINMENT www.natoofmi.org NATO of Michigan also gave out three $1,000 scholarships to worthy employees of our members in 2006. We will be looking for three more outstanding individuals to be awarded scholarships in June 2007. You will be receiving the 2007 scholarship application in the near future to distribute to your employees. Finally, NATO of Michigan has been exploring an insurance program to offer to all NATO of Michigan members. We currently have three vendors preparing proposals to offer the highest quality insurance products and service for the lowest cost. Look for more information on this subject in a separate mailing in January. I want to personally thank all of you for your continued confidence and support of our organization. I look forward to working with you to meet the challenges that will arise in 2007 and look to continue the successes we have enjoyed this past year. Wishing all of you a happy, healthy, and prosperous New Year! .