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Academy Endorses New Legislation To Support Creators, Venues & Small Music Businesses

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Meet the two new bills music makers need to know – the RESTART Act and the Mixed Earner Pandemic Unemployment Assistance Act – and learn how you can help them pass
Nate Hertweck
Advocacy
Jul 22, 2020 - 3:34 pm

Four months into the COVID-19 pandemic shutdown, one thing is clear: its adverse effect on the music business is far from over. Especially now that many of the provisions contained in the $2 trillion CARES Act are set to expire, creators, studio professionals and venues are still in desperate need of additional financial assistance to overcome the lost wages due to the coronavirus crisis.

As the nation searches for answers, the music community must unite in order to advocate for necessary legislation. Fortunately, the Recording Academy has endorsed two solutions to do just that: the RESTART Act and the Mixed Earner Pandemic Unemployment Assistance Act. Here's a closer look at what they entail and how you can help them pass by registering as a District Advocate.

The RESTART Act

The next round of stimulus support simply must ensure that small businesses – including self-employed creators, music venues, and recording studios – survive the pandemic.  The bipartisan Reviving the Economy Sustainably Towards a Recovery in Twenty-twenty (RESTART) Act (S. 3814/H.R. 7481) responds to the urgent needs of hardest-hit small businesses, including self-employed creators, by establishing a loan program to help keep music creators afloat through the remainder of 2020 and provide loan forgiveness as a backstop against continuing economic challenges.

With live shows, studio sessions and tours likely dark for the remainder of the year – and into 2021 – the industry-wide financial fallout will only worsen without meaningful support. Congress must include this program to ensure that the industry survives and venues will not close forever. For this reason, the Academy’s endorsement of the RESTART Act was recently announced by U.S. Senators Michael Bennet (D-Colo.) and Todd Young (R-Ind.), who are among the bill's champions and co-sponsors.

"The livelihoods of music creators heavily depend on the survival of recording studios and live music venues," said Harvey Mason jr., Chair and Interim President/CEO of the Recording Academy in a recent. "With no certainty in sight as to when concerts will revive and normal operations will resume, these businesses struggle to persevere through the current economy. The RESTART Act provides long-term and flexible financial assistance that is more aligned with the reality of those within the music industry. The Recording Academy thanks Senators Bennet and Young for their leadership and support."

In short, The RESTART Act would support performers, songwriters, and studio professionals how and when they need it most.

The Mixed Earner Pandemic Unemployment Assistance Act

Many music makers earn their living by combining several sources of income, be it live performance or studio gigs, teaching, songwriting or performance royalties or otherwise. This resourcefulness adds a wrinkle to the stimulus process that simply must be ironed out – here's how…

First, the Pandemic Unemployment Assistance (PUA) program needs fixing so that gig workers can receive their full unemployment benefits. Because so many of the unemployment systems were unable to process mixed income streams, many gig workers did not receive their entire benefit during the program’s implementation under the CARES Act. This has cost countless unemployed creators thousands of dollars in lost benefits.

The Mixed Earner Pandemic Unemployment Assistance Act (H.R. 7961), introduced by Reps. Adam Schiff (D-Calif.) and Judy Chu (D-Calif.), is designed to fix this problem and to ensure that gig workers are not excluded from critical financial assistance.

"The Recording Academy thanks Representatives Adam Schiff and Judy Chu for their tireless efforts to ensure that all workers have equitable access to unemployment benefits as our creative community faces the long-term effects of this unprecedented crisis," he added.

How Can You Help?

These two new pieces of legislation are the next step toward securing much-needed support toward the survival of our music community. Want to help pass these policies? If you are an Academy member, make sure to register for District Advocate to let your representatives know first-hand why these issues matter – but hurry, registration closes this Friday, July 24.

Recording Academy Members: Register Now To Become A District Advocate

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District Advocate day is Aug. 12

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Countdown To District Advocate Day: What You Need To Know

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One week ahead of the largest virtual music grassroots activation of the year on Aug. 12, here's everything you need to make a difference for music makers
Nate Hertweck
Advocacy
Aug 7, 2020 - 9:31 am

Next week, nearly 2,000 registered Recording Academy members will participate in its seventh annual District Advocate day on Aug. 12. The momentous event marks the culmination of a seven-week "Summer of Advocacy" initiative, all aimed to help provide pandemic relief for music creators, support survival of music businesses and promote positive social change through legislation.

Academy members will meet with their local lawmakers to urge them to consider the challenges creators face in today's economy in light of how music has helped us through the hard times. If music makers and music businesses are going to be able to continue to bring music into the world and into our lives, they need support.

From supporting the newly introduced HITS Act to fixing unemployment benefits to passing the RESTART Act, here are a few key issues on the table for discussion at next week's historic District Advocate day.

Survival Tools For Music Makers

Indie artists need a break, and in times of need, a small tax break could make a big difference. By supporting the Help Independent Tracks Succeed (HITS) Act (H.R. 7886), lawmakers can harmonize the tax treatment of music production with other already existing provisions to get artists back in the studio.

Many music makers are self-employed and rely on a variety of income streams for their livelihoods. The CARES Act provided unemployment to self-employed workers like music creators, but an unintended consequence in the new program prevented "mixed earners" with both traditional and freelance income from getting their fair share. Congress can correct this and fix unemployment for gig workers by passing the Mixed Earner Pandemic Unemployment Assistance Act.

Additionally, now is the time for Congress to extend enhanced unemployment benefits provided by the FPUC program. The program adds $600 to the weekly unemployment benefit, which has been a lifeline in these unprecedented times. With so much of the music industry still on pause in the pandemic, extending these benefits is the right thing to do.

Support Music & Minority-Owned Businesses

As COVID relief enters the next phase, the recording studios, live venues and minority-owned businesses that have been hit particularly hard need to be considered top priorities.

Inexcusably, minority-owned businesses were overlooked by the Paycheck Protection Program and other Small Business Administration programs. Black music is a cornerstone of the music industry, and Congress must ensure that minority-owned businesses, including studios, venues and labels, can get the support they need. Dedicated funding for Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) will help fix this inequity. Find out more and voice your support for these programs here.

For small and medium-sized businesses struggling to survive through the pandemic, passing the RESTART Act (H.R. 7481/S. 3814) is a must. The bill is essential and will provide a boost to music venues and other music businesses that remain closed with no reopening date in sight.

District Advocate provides a unique opportunity for Academy members to connect with lawmakers about urgent issues and policies affecting music creators and make a difference during such a difficult time. Want to add your voice to the chorus? Take action today, and get for the largest virtual music grassroots activation of the year on Aug. 12, District Advocate day.

Take Action Today: Learn About The Key Issues Facing Creators And How You Can Help

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Summer Of Advocacy: 5 Reasons To Register As A District Advocate Today

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Summer Of Advocacy: 5 Reasons To Register As A District Advocate Today

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Here's how to use your experience in music to make an important difference in how creators are compensated and protected… But hurry, registration closes July 24!
Nate Hertweck
Advocacy
Jul 15, 2020 - 4:22 pm

Are you a Recording Academy member looking for new ways to engage with your community, put your experience in music to work and support the best interests of all creators? Registering as a District Advocate is the best way to make a huge difference this summer.

Recording Academy Members: Register Now To Become A District Advocate

So why should you register to be a District Advocate? On Aug. 12, the Recording Academy will host its seventh annual District Advocate, the largest grassroots music advocacy movement of the year. Registering by the July 24 deadline provides you this unique opportunity to connect with your lawmaker to discuss the urgent issues and policies affecting music creators.

In addition to sharing your perspective, stories and talents with local lawmakers, as a District Advocate, you'll have the chance to call on your Members of Congress to tackle these five key areas:

1. COVID-19 Relief For All Creators Now

In a year wrought with financial uncertainty, it's time for lawmakers to ensure that COVID-19 aid is distributed equitably and reaches all workers and businesses in need. As a District Advocate, your voice can help ensure that underserved Black communities can fully participate in critical relief programs. The convergence of the crippling economic impact of the pandemic and the fight to end systemic racism call for all advocates to acknowledge the need for fair distribution of relief – this is your chance.

2. Extend COVID-19 relief programs

While many music makers have turned to initial relief programs to weather the pandemic, it is clear that Congress must now extend these programs beyond the current expiration date and expand their resources to assist the creative professionals who need it most. As a District Advocate, you'll have the opportunity to tell your representatives first-hand how the pandemic continues to affect the music community and why this relief is so crucial.

3. Small Business & Unemployment Status

"Music is the original gig economy," as Recording Academy Chairman and Interim CEO Harvey Mason jr. put it. District Advocates will underscore the importance of fixing small business and unemployment programs to better reflect the needs of freelance music creators, many of whom operate as small businesses and/or have found themselves unemployed in the wake of the pandemic.

4. Emergency Arts Funding

As so many income streams across the music industry continue to run dry, Congress needs to hear from the music community just how important it is they expand emergency arts funding. Vital organizations and individuals are at risk of not being able to recover from the severe economic impact caused by COVID-19, and this is your chance to let them know why emergency arts funding is a must.

5. Tax Relief & Fair Royalties

Finally, as a District Advocate representing the music community, you’ll champion ways to increase revenues for music makers through targeted tax relief and fairer royalties for music makers.

Best of all, you won't have to wait until Aug. 12 to get started. This year, the Recording Academy will be holding the "Summer of Advocacy," an ongoing initiative aimed to help provide pandemic relief for music creators and music businesses and to promote positive social change through legislation. After registering, you can start your advocacy immediately by taking action here.

Right now, more than ever, we need to come together as the music community in order to create change and push creator-friendly policies forward. Register today and no later than July 24 to play your part in 2020's largest grassroots music advocacy movement. Your fellow music makers for generations to come will thank you!

Recording Academy Members: Register Today To Become A District Advocate

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Recording Academy Launches "CARES Act Helpline" To Aid Creators In Need

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Find out how creators can get the assistance they need in navigating the $2 trillion stimulus act, plus hear the good news for California creators regarding Assembly Bill 5…
Nate Hertweck
Advocacy
Apr 23, 2020 - 9:17 am

Music creators working for themselves are the smallest of small businesses, yet many have not yet fully benefitted from the promising $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law by President Trump late last month. But since its passage, many Federal and State agencies have struggled to consistently implement these newly funded programs. 

For instance, the Small Business Administration’s Paycheck Protection Program – where musicians, engineers, mixers and other creative professionals engaged in an independent contractor capacity could apply to receive loans and grants – quickly ran out of money last week after distributing $349 billion in emergency loans. On Tuesday, the Senate approved an additional $484 billion relief package to restart the PPP and other necessary programs that also needed more financial support—the House is expected to follow suit before the end of the week, and President Trump has already signaled he will sign the new funding into law. Music makers now have an additional tool to  help understand and apply for these programs aimed at easing the financial burden of COVID-19…

CARES Act Hotline

The Recording Academy announced its "CARES Act Hotline" to provide aid to creators in need. In coordination with Greenberg Traurig law firm, the Academy is opening the line to provide music makers with the tools to navigate the ever-changing landscape of COVID-19 related programs. Everyone’s situation is unique, and accessing government benefits and new programs can be challenging, but the Academy is here to help get creators the aid that they need.

If you are a Recording Academy member in need of assistance, please fill out our helpline and continue to monitor our social channels for any new updates.

Additionally, the Academy will be holding regular webinars during the pandemic to answer some of your questions.

The new Recording Academy CARES Act Hotline is the latest in the organization’s ongoing efforts to keep creators informed during the pandemic. Each day, the Academy posts Questions & Answers on Twitter, and creators can always find information regarding the CARES Act and its funding at MusicCovidRelief.com.

CA Assembly Bill 5 Amended

Good news for the music community arrived from the West Coast late last week, as the California Assembly has announced that it will be updating Assembly Bill 5 in order to better protect music creators. Originally intended to add protections for gig workers, the bill would’ve fundamentally changed the landscape for music creators in California, requiring them to be treated as employees and threatening to create barriers for studios, production companies and venues to hire them.

In a time where many music creators are in desperate need for financial relief and assistance, this change will allow musicians to quickly get back to work once normalcy returns after the COVID-19 crisis.

Giving Back & Seeking Help

To further support music makers during these difficult and uncertain times, the Recording Academy and MusiCares recently established the COVID-19 Relief Fund.

If you are an artist or music professional who has been impacted by this unprecedented circumstance and are in need of assistance, please visit our MusiCares page to learn more about the financial, medical and personal emergencies services and resources offered by the Recording Academy.

For more information and developments related to the coronavirus, visit the World Health Organization and Centers for Disease Control and Prevention for ongoing news and updates.

Learn More About What The CARES Act Means For Music Makers

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Streaming Is Down, Festivals Are Dark: How Music Is Coping With COVID-19

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The Recording Academy is offering daily Q&A, an online informative information hub, in-depth webinars and more to keep music creators going
Nate Hertweck
Advocacy
Apr 15, 2020 - 3:59 pm

One month since many Americans began to live life altogether differently, COVID-19 continues to devastate the music world. From taking the lives of such pillars of its community as John Prine, Hal Willner and Adam Schlesinger, to the financial fallout created from mass cancellation of all tours, festivals and events, music creators have been hit hard and fast by the pandemic. Even the relief plan passed to provide critical aid to music makers has encountered issues, as creators struggle to navigate the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

An Industry Hit Hard

Making matters worse, new data shows that streaming is down, contrary to widespread hopes that more time at home during the era of social distancing would result in a listening boom. Sadly, music streaming was down 7.6 percent for the week of March 13 with digital album sales also down 12.4 percent. Even physical sales took a big hit, dropping 27.6 percent, according to Rolling Stone's Alpha Data.

On the live event side of the business, Forbes reports over 300 festivals have announced cancellations or postponements, affecting 90 percent of workers in the festival industry. To put the festival falloff in perspective, Coachella, which boasted a $700 million economic impact in 2016, was supposed to start this past weekend.

Cities that usually thrive on live music, like New Orleans, are most susceptible to the crisis. The Big Easy has 38,000 "cultural workers" with jobs in music venues and restaurants, nearly 10 percent of its entire population, and musicians make an average of just $17,800 a year according to the Washington Post.

As the industry reels from the ongoing effects of COVID-19, the Recording Academy has made it a priority to work with lawmakers to ensure that the nation’s recovery efforts are inclusive of music makers and the industry. The CARES Act established many new parameters that should help the struggling artists, songwriters, studio professionals, and other industry workers who are out of work, underworked, or simply unable to work.

Valuable Resources

With so many challenges facing music creators, many of whom were already struggling to make a livable wage, it is important to know what support resources are available to the music community. The Recording Academy has joined other groups in the music community by helping to launch the Music COVID Relief website, which contains the latest updates on the Federal Government’s response to the coronavirus.

Also, if you missed last week’s CARES Act webinar, a detailed discussion of how the new law affects music creators, you can watch it here. Additional webinars and programming will be announced soon to further dive into these new benefits.

The Academy has also started posting “COVID-19 Relief for Music Creators: Question of the Day” on its social feed. The daily Q&A has already provided insight on how songwriters can file for "gig" employment status, how and where independent contractors should file for unemployment, and more.

If you have a question regarding the CARES Act, what aid is available, or how it impacts you, please feel free to submit questions to the Recording Academy’s CARES Act Helpline here. A team of legal and policy experts will get back to you with answers.

Making The Stimulus Work For You

Even with a $2 trillion stimulus already passed into law, the fight for relief is far from over. The Recording Academy continues to raise the voices of the music community, letting officials around the country know how critical this time and their support is for creators.

Along with other members of the music community, the Academy sent letters to several Governors and State Labor agencies, and to US Secretary of Labor Scalia, regarding the CARES Act. The letters address implementation of the Pandemic Unemployment Assistance (PUA) program for self-employed individuals, including the need for clear guidance on how to file for unemployment, a full accounting of annual income when calculating the weekly benefit amount for self-employed individuals, and retroactive payments under the PUA program.

Looking ahead, Congressional talks regarding additional COVID-19 relief funding have stalled. To stay informed on the latest developments, visit the Music Covid Relief website.

To further support music makers during these difficult and uncertain times, the Recording Academy and MusiCares recently established the COVID-19 Relief Fund.

If you are an artist or music professional who has been impacted by this unprecedented circumstance and are in need of assistance, please visit our MusiCares page to learn more about the financial, medical and personal emergencies services and resources offered by the Recording Academy.

For more information and developments related to the coronavirus, visit the World Health Organization and Centers for Disease Control and Prevention for ongoing news and updates.

Learn More About What The CARES Act Means For Music Makers