GOVERNOR SIGNS CALIFORNIA BILL SETTING OUT RECORDING ARTISTS’ RIGHT TO AUDIT RECORD LABELS

Los Angeles, July 19, 2004 – On Thursday, July 15 California Governor Arnold Schwarzenegger signed the "Recording Industry Accounting Practices Act" (SB 1034) into law. The bill – championed by the American Federation of Television and Radio Artists (AFTRA) - provides recording artists under royalty contracts the statutory right to confirm, through audits, proper payment for their work, and conduct such audits - or have such audits conducted by their chosen representatives - individually or in groups. The bill also codifies the ability to hire auditors on a contingency fee basis, which, combined with the ability to audit in groups, should increase the probability that artists will actually pursue audits.

AFTRA Assistant National Executive Director Rebecca Rhine stated, "This bill represents a crucial first step in a long-range plan to curtail problematic accounting practices in this industry through legislation, collective bargaining and contract enforcement. AFTRA is under no illusion that the problem has been solved, but the industry has been put on notice and we intend to hold them accountable. AFTRA, its members and our allies in advocating on behalf of recording artists are united in this struggle.""We thank the legislature, the Governor and Senator Murray for their commitment to securing artist’s rights in this arena."

AFTRA has for many years worked on legislation to safeguard the rights of recording artists. The 80,000-member union also represents actors, news anchors and reporters, announcers, talk show hosts and other professional performers and broadcasters in television, radio, commercials, non-broadcast industrial programming and new technologies such as digital, interactive programming and CD ROMs.

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