WASHINGTON, DC - Montana's Congressman, Denny Rehberg, this week signed onto legislation opposing new proposed fees on the radio industry. Owners and industry experts across the country have said the fees could potentially force many small market radio stations out of business.
"Montana’s rural communities rely heavily on the information and entertainment that local radio stations provide," said Rehberg, a member of the House Appropriations Committee. "Whether it’s news, weather, or local announcements, these stations provide an important service that’s hard to replace."
Introduced by Rep. Mike Conway (R-TX), and Rep. Gene Green (D-TX), the Local Radio Freedom Act, (H. Con. Res. 244) declares congressional opposition to performance fees charged by record companies on radio stations. A coalition of recording industry and performers’ associations is lobbying congressional members to introduce legislation to do away with broadcast royalty exemptions for small commercial stations, noncommercial stations, and college stations.
"The record companies are attempting to put another layer of financial burden on local radio which is already paying to play and promote recording artists at no charge," said Greg MacDonald, President and CEO of the Montana Broadcasters Association. "We strongly oppose these new taxes, and greatly appreciate Denny backing this measure."
The resolution acknowledges the many public contributions of local radio stations and states that radio provides free promotion of artists and performers through air-play, creating the most prolific broadcasting, music, and sound recording industry in the world. It also recognizes the affect the new performance fee would have on America’s small radio markets.
"Local radio is a critical public communication tool especially in states like Montana," said Rehberg. "It’s essential we ensure we aren’t putting this service in jeopardy."