And the Grammy? Hail the Runner-Up!

The National Academy of Recording Arts and Sciences was correct in demanding back the Grammy it awarded Milli Vanilli this year.

But the difficult part is still ahead. What do you do now with the award for best new artist of 1989?

Here are the options facing an academy subcommittee that will meet on Dec. 5 in New York:

* Declare no new winner, which would leave a blank space in future Grammy programs as a reminder of the deception in the Milli Vanilli case.

* Present the award to the artist that finished second in the balloting. The other four nominees: Neneh Cherry, Indigo Girls, Soul II Soul and Tone Loc.

* Conduct a new election placing the four nominees on a special ballot or include them on next year’s Grammy ballot.

* Follow the wishes of Milli Vanilli’s Robert Pilatus and Fabrice Morvan and give the Grammy to the real singers on the “Girl You Know It’s True” album: Johnny Davis, Charles Shaw and Brad Howell.

Only the first two options seem viable.

To conduct second balloting would violate the spirit of the best new artist award, because members would be voting based on new information, including the progress or lack of it in the careers of the nominees, rather than strictly on the promise of the acts at the time of the voting in January.

The worst idea is to give the award to the real singers. The vocals on the album itself--a mediocre collection of lightweight dance-pop--were only part of what led the academy voters to honor Milli Vanilli. The rest of it was the visual impact, especially of videos, which may never have been established if the real singers had been out front instead of Pilatus and Morvan.

Of the remaining choices, the first is tempting, but probably unnecessary because the lesson of Milli Vanilli isn’t likely to be forgotten by academy members and record companies.

That leaves the second option. While some might argue that the runner-up might not have emerged on top if a fifth nominee had been involved, the tradition in competitions is to award the prize to the runner-up when the winner is declared ineligible.

It seems only fair to follow that tradition in this case. The award could be presented either in a special ceremony or during the regular Grammy program next February in New York. By presenting the award to the runner-up, the academy could also take advantage of the national television audience to reassert academy president Mike Greene’s clear warning Monday against similar deception as he stripped Milli Vanilli of the Grammy.