California Rejects Bill Tying Lyrics To Investments

A California Assembly committee yesterday rejected a bill designed to
force the state's retirement pension system to divest itself of stock in
entertainment companies that distribute music that is judged to promote
crime, domestic violence, drug use, degradation of women, or racism.
California Public Employees Retirement System (CalPERS) has millions
of dollars invested in such companies as Warner Bros. and Disney. Says
Recording Industry Assn. of America president/CEO Hilary Rosen, "This
is a very important state to have a victory in, since it has such a large
pension fund and such a large presence in the music community."

The bill, called the "California Protection Act," was sponsored
by California state Assemblyman Keith Olberg, R-Victorville. The bill's
failure, Olberg says, suggests that "people have decided that profits
are more important than public safety."

Olberg's was the latest in a series of lyric bills. A Texas court threw
out a similar law last week (Bulletin, April 17), and bills are pending
in Wisconsin and Tennessee. "These lyric bills are kind of like viruses,"
says Rosen. "They come and go, but you have to nurse every one of
them."

-Craig Rosen, L.A.


McGraw, Hill Top ACMs

Tim McGraw and Faith Hill were the big winners last night at the 33rd
annual Academy of Country Music Awards, nabbing four awards for their duet
"It's Your Love," for single, song, video, and top vocal event.

Garth Brooks, who picked up a special achievement award and entertainer
of the year honors, was another multiple winner, as was George Strait,
who garnered wins for album ("Carrying Your Love With Me") and
male vocalist. Rounding out the winners were Trisha Yearwood, for female
vocalist; Brooks & Dunn, vocal duet or group; Kenny Chesney, new male
vocalist; Lee Ann Womack, new female vocalist; and the Kinleys, new vocal
duet or group.

-Eileen Fitzpatrick, L.A.


Enclave Moves To Mercury

Less than a year after his label was shuttered as part of EMI's restructuring,
Enclave head Tom Zutaut has brought the label to the Mercury Records Group.
The first Enclave/Mercury album, due June 9, is "Horror Wrestling"
by Swedish act Drain STH. It is a reissue, with three additional tracks,
of the band's previous Enclave release. Zutaut has also signed for U.S.
release Ian Brown, former lead singer of the Stone Roses.

-Melinda Newman, N.Y.


Two Veteran Capitol Executives Add Duties

Capitol Records executives Phil Costello and Perry Watts-Russell have
been promoted and given additional responsibilities, sources say. Costello,
formerly senior VP of promotion, is now senior VP of promotion & marketing.
The label's marketing department, which previously reported to senior VP/GM
Lou Mann-who remains at the label-will now report to Costello. Watts-Russell,
formerly a VP of A&R, has been named senior VP of A&R, giving him
a broader role in the department and the label.

-Craig Rosen, L.A.


Arista Latin To Close

Arista Latin will close its doors May 1. Label acts La Diferenzia and
Ruben Gomez will release future recordings through BMG U.S. Latin; the
remaining Arista Latin artists-Nydia Rojas, Fidel Hernandez, and Angelica-are
said to be evaluating new label deals. Arista Latin, along with Arista
Austin, was part of the Arista Texas label group for the last five years.
Arista Austin-whose roster includes Abra Moore, Sister 7, and Radney Foster-will
continue to operate.

-Carla Hay, N.Y.


Germany 1997: Sales Up, Revenues Flat

The retail value of record sales in Germany rose just 1.6% last year
to $2.728 billion, according to the Federal Assn. of the Phonographic Industry
(BPW), whose members represent 91% of the market. Album shipments in all
formats, at 218.8 million units, were 1.7% up from 1996, with CD albums
posting a rise of 3.5% to 191 million units. Singles saw a 1.9% rise in
shipments to 49.4 million units. "Although units sales were up, there's
no hiding the fact that inflation-adjusted revenues were stagnant,"
says Thomas Stein, president of the BPW and of BMG Entertainment International
G/S/A. There is some good news: Domestic repertoire accounted for 48.2%
of chart entries, a rise on last year's already high level of 42.1%.

-Wolfgang Spahr, Hamburg


Hole Album Delayed

Hole's new album has been pushed back from June 2 until late August
or early September. Though the album is expected to be finished in May,
Hole front woman Courtney Love will not be available to promote the Geffen/DGC
album because of film commitments.

-Craig Rosen, L.A.


Levin Lo Back To Universal As GM Of Hong Kong Unit

Levin Lo is returning to Universal Music Asia as GM of its Hong Kong
affiliate. He was the label's regional marketing manager before joining
MTV Asia, where he served as talent and artist relations manager. Lo replaces
Francis Chan, who left the company in January. "The plan, at least
in the starting phase, is a boutique-style label giving one or two artists
the utmost priority," says Lo. He adds that in addition to locally
promoting international acts, such as Aqua, there will be a focus on building
a domestic roster. Universal has had limited success in the territory with
local signings such as Cantopop singer Ivan Wong and hard rock band Anodize.

-Geoff Burpee, Hong Kong


Malaysia Considers Royalty Hike On Music In Malls

Shopping malls in Malaysia are silent following a row over royalty rates
between retailers and collection body Phonographic Performance Malaysia
(PPM). The Malaysian Retailers Assn. (MRA) and PPM met Monday with Parliamentary
Secretary Tan Chai Hoe after the MRA asked the government to intervene.
PPM wants to raise royalty rates paid by retailers to bring them in line
with those applied to karaoke lounges and hotels. It initially proposed
a rate of six sen (1.6 cents) per square foot, compared to the 2.8 sen
(.75 cents) in force for the last 10 years. The MRA, arguing that music
usage is "incidental" to retailers, decided April 15 to "cease
all further public performances of sound recordings within their premises."
Monday's meeting produced a new PPM proposal of 4 sen (1.1 cents); the
MRA now seeks a rate of 3.2 sen (.86 cents).

-Alexandra Nuvich, Kuala Lumpur


Online Auction For Charity

Items up for bid at this year's Celebrity AuctiOnline, benefitting the
T.J. Martell Foundation, include a VIP package to meet the 3 Tenors in
Paris, a Hanson "roadie for a day" trip, a Gianni Versace suit
worn by Elton John, an autographed harmonica from Stevie Wonder, and memorabilia
from Eric Clapton, Whitney Houston, Fleetwood Mac, and Bruce Springsteen.
The auction starts today and runs through May 7 at http://auctionline.tjmartellfoundation.org.
Last year's auction raised $183,000 for the foundation, which funds leukemia,
cancer, and AIDS research.


London Records Veteran Herb Goldfarb Dies

Herb Goldfarb, a veteran of the music and home video industries, died
Monday of a heart attack at his home in Plainview, N.Y. He was in his early
70s.

Goldfarb was associated for more than 25 years with London Records,
starting when it was an indie in the early '50s. A Boston native, he was
tapped for the label's New York branch by GM Lee Hartstone. After the sale
of London to PolyGram, Goldfarb entered the home video business as a distributor.
In addition to his business activities, Goldfarb was a past president of
the music unit of B'nai B'rith. He is survived by his second wife, Bernice;
two children from his first marriage; and two stepchildren.

-Irv Lichtman, N.Y.


Hot Acts In Triple Bill

Capitol acts Everclear and Marcy Playground and Hollywood act Fastball
will tour together beginning May 19 in San Francisco.


Musicland Posts Record 1st Quarter

Musicland Stores Corp. posted record cash flow in the first quarter
of $11.7 million. Last year's first quarter saw a loss of $3.5 million.
The chain's comp-store sales were also up, by 8.9%, and revenues rose 4.3%
to $392.4 million. Net loss was $3.6 million, vs. a loss of $21 million
for first-quarter 1997. The chain closed 13 stores in the quarter, leaving
a total of 1,350.

Musicland's stock closed yesterday up 3/16. The stock has risen steadily
from about $1 per share in April 1997 to a 12-month high yesterday of 121/8.

-Carolyn Horwitz, N.Y.


Doobie Brothers Sign To Pyramid

The Doobie Brothers have signed to WEA-distributed Pyramid Records,
recording home of Joe Walsh and Earth, Wind & Fire. The Doobies will
release an album by the end of the year or the first quarter of 1999. Miami-based
Pyramid has also announced plans to open an office in Los Angeles.

-Carrie Bell, L.A.