NRB Worries Senate Hearing Could Amplify Bid to Tie Radio Royalties to AM Vehicle Mandate
National Religious Broadcasters (NRB) voiced concerns about a planned Senate Intellectual Property Subcommittee hearing Tuesday on whether to levy a performance royalty on stations playing music on terrestrial radio, saying Thursday that the meeting “could be used to conflate” that issue and expected congressional action on the AM Radio for Every Vehicle Act (HR-979/S-315). Congressional leaders scrapped a bid to attach a previous version of the measure to a continuing resolution to extend federal appropriations last year after House Minority Leader Hakeem Jeffries, D-N.Y., pressed to simultaneously add the American Music Fairness Act, which would institute a terrestrial performance right (see 2412180033).
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“Some opponents of [HR-979/S-315] have recently begun attempting to link the AM bill with the performance tax debate [again,] raising concern among advocates that next week’s hearing could be used to conflate the two issues,” NRB said. “Our industry warns that such linkage could complicate or delay progress on the AM bill, which is otherwise positioned for congressional action.”
HR-979/S-326 would require the Department of Transportation to mandate that future automobiles include AM radio technology, mostly affecting electric vehicles. NRB President Troy Miller and HR-979's lead sponsor, Rep. Gus Bilirakis, R-Fla., previously told us that they expected the House would bring up the bill in early December for a fast-track vote under suspension of the rules (see 2511260058). The legislation wasn’t included in an initial House schedule for next week that chamber leaders posted Wednesday night.
Miller warned in a recent interview that even if HR-979/S-315 passes, “that doesn't mean this fight is by any means over.” Tesla recently “announced that they will no longer also have FM in some of their entry-level models on the radio,” while General Motors isn’t including Apple CarPlay or Android Auto, he said. That “just tells you that this is not about antiquated AM technology. This is about who is going to control access to information in the car, whether it's going to be all subscriber-based or if there will still be an option for free, over-the-air broadcast in cars down the road.”
NRB on Thursday cited the American Music Fairness Act (HR-861/S-326) specifically as looming over Tuesday's Senate IP hearing, which will begin at 3 p.m. in 226 Dirksen. Subpanel Chairman Thom Tillis, R-N.C., “has historically aligned with music industry organizations on royalty issues,” NRB said. The group noted that S-326's lead sponsor, Sen. Marsha Blackburn, R-Tenn., is also a Senate IP member and a co-sponsor of S-315. “The scheduled witnesses highlight the enduring rift between broadcasters and the music industry,” NRB said, pointing to SoundExchange CEO Mike Huppe and Kiss co-founder Gene Simmons. Inner Banks Media President Henry Hinton will also testify.
“A new federal performance royalty -- layered on top of existing obligations -- would divert resources away from ministry, outreach, local engagement, and programming that serves the spiritual needs of listeners,” NRB said. “Even the smallest stations deemed ‘protected’ [under HR-861/S-326] would still owe $500 annually in new royalties, with no cap on future increases. The bill includes no religious exemption, and its eligibility thresholds exclude many NRB members entirely.”