If enacted, HCR13 would solidify the current practice where local radio stations are not required to pay performance fees for playing music. This could prevent significant economic challenges for local stations, which might otherwise need to redirect revenues to cover new charges. The resolution stresses the importance of local radio stations in providing essential services, including local news and emergency information, which would be jeopardized by the imposition of performance fees.
Summary
HCR13 is a concurrent resolution that supports the Local Radio Freedom Act and advocates against the imposition of a new performance fee, tax, or royalty on local radio stations for broadcasting sound recordings. The resolution emphasizes the longstanding relationship between local radio stations and the recording industry, highlighting the mutual benefits that have existed for nearly a century. It argues that local radio plays a crucial role in promoting music and artists, providing free publicity through airplay, interviews, and concert promotions.
Contention
Notable points of contention surrounding HCR13 include the balance between compensating artists and protecting local broadcasters. Supporters argue that imposing performance fees could lead to financial strain on small businesses that play music, such as bars and restaurants, potentially harming the local economy. Opponents may argue for the need for fair compensation for artists, suggesting that local radio should contribute to the revenue generated by their performances.