{"id":232850,"date":"2022-03-14T05:25:00","date_gmt":"2022-03-14T12:25:00","guid":{"rendered":"https:\/\/calmatters.org\/?p=232850"},"modified":"2022-03-13T13:58:48","modified_gmt":"2022-03-13T20:58:48","slug":"proposal-would-harm-californias-working-class-musicians","status":"publish","type":"post","link":"https:\/\/calmatters.org\/_zh\/commentary\/2022\/03\/proposal-would-harm-californias-working-class-musicians\/","title":{"rendered":"Proposal would harm California\u2019s working-class musicians"},"content":{"rendered":"\n
\"Profile<\/figure><\/div>

By Mike Montgomery, Special to CalMatters<\/h3>

<\/h5>

Mike Montgomery is the executive director at <\/em>CALinnovates<\/em><\/a>, a nonpartisan technology advocacy coalition.<\/em><\/p>

<\/div><\/div><\/div>\n\n\n\n

When hip hop legends performed at this year\u2019s Super Bowl, it\u2019s no surprise that much of the imagery of Los Angeles was iconic to viewers around the world. California has always been where the future gets made and the geography of groundbreaking music is etched into its landscape \u2013 from Malibu beaches to modern-day Hollywood TikTok collabs.<\/p>\n\n\n\n

But a proposal to rewrite the rules for recording contracts making the rounds in Sacramento could destroy that creative legacy, stacking the deck against new acts and voices, drying up the job market for working musicians and backing vocalists, and making it harder for risk-taking acts to get signed. All to fund even bigger paychecks for a handful of established superstars and wealthy managers and moguls. Say goodbye to California\u2019s rule breakers and musical pioneers.<\/p>\n\n\n\n

The proposed \u201cFAIR Act\u201d legislation, Assembly Bill 2926<\/a>, sounds good on the surface \u2013 sponsors claim it would free artists from unfair long-term record deals by limiting contracts to a maximum of seven years and setting new terms for any renegotiation of an artist\u2019s deal. With streaming in flux and big record labels earning more than ever, who could oppose new rules to help artists get their due?<\/p>\n\n\n\n

In reality, all that rhetoric simply isn\u2019t backed up by the actual terms of the bill itself. Its sponsors are writing a check they can\u2019t pay off, and working artists and diverse voices trying to get signed are the ones who will pay the price. (Not to mention the rest of us who simply want California to keep on breaking new ground.)<\/p>\n\n\n\n

The bill\u2019s sponsors claim it would give artists the protection of California\u2019s \u201cSeven Year Rule\u201d<\/a> which limits personal services contracts in the state to that length. But record deals signed in California are already covered by the Seven Year Rule \u2013 today, under existing law, no deal can run longer. The bill doesn\u2019t change that or give artists any new long-term protection.<\/p>\n\n\n\n

What it does instead is delete the portion of California\u2019s labor code that allows record companies to seek to recover their losses if artists fail to deliver recordings they agreed to make (and were paid for) during the statutory Seven-Year period.<\/p>\n\n\n\n

Multiple<\/a> experts<\/a> have found that the FAIR Act proposal would devalue all recording deals \u2013 driving down advance payments to artists, reducing the number of new acts that get signed, and making it harder for innovative new sounds and diverse new voices to get signed.<\/p>\n\n\n\n

Those conclusions make sense. If something is riskier, its price goes down and the market produces less of it. By one estimate, California\u2019s music economy could shrink as much as $600 million a year<\/a> if this terrible idea became law.<\/p>\n\n\n\n

The FAIR Act would hurt virtually all artists at every stage of their career \u2013 except the top 1% earners. Established superstars would gain major new leverage to threaten to withhold recordings promised under their existing contracts thanks to the bill\u2019s new limits on record companies\u2019 ability to recover losses.<\/p>\n\n\n\n

It\u2019s no surprise the bill is backed by backward-looking moguls like Irving Azoff who represent these stars. Indeed, when the Legislature considered a comparable proposal nearly 20 years ago, observers warned<\/a>, \u201cThis is Goliath in David\u2019s clothing: The superstar artists lending their celebrity to the [effort] are the ones who will benefit from it. In fact, they\u2019re the only ones.\u201d<\/p>\n\n\n\n

And that remains true today. If enacted, AB 2926, introduced by Assemblymember Ash Kalra<\/a>, a Democrat from San Jose, would harm California\u2019s working-class musicians the most. Good paying jobs \u201c20 Feet From Stardom\u201d<\/a> would flee the state or be destroyed altogether.<\/p>\n\n\n\n

California\u2019s Legislature wisely rejected this proposal at that time. And last session the Assembly declined to even give this bad idea<\/a> a hearing.<\/p>\n\n\n\n

It should do the same this time around. Public policy should be on the side of working artists, diverse voices and tomorrow\u2019s pioneers, not multimillionaires who already had (and made) their shot.<\/p>\n","protected":false},"excerpt":{"rendered":"

A bill to rewrite the rules for recording contracts could destroy California\u2019s creative legacy, stacking the deck against new acts and 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