John McCain’s lawyer Bob Bennett was on Today this morning and said that the New York Times left significant information out of its story on McCain’s dealings with lobbyist Vicki Iseman. “We provided the New York Times with approximately twelve instances…where Sen. McCain took positions adverse to this lobbyist’s clients and her firm’s clients,” Bennett said. Bennett said “approximately” because, he told Today, he didn’t have a precise number. He didn’t name any of the instances.
Meanwhile, the McCain campaign has released other information it says it provided to the Times explaining the various actions McCain took on issues of concern to Iseman’s clients. Here is McCain’s case on those:
The New York Times article states, “A champion of deregulation, Mr. McCain wrote letters in 1998 and 1999 to the Federal Communications Commission urging it to uphold marketing agreements allowing a television company to control two stations in the same city, a crucial issue for Glencairn Ltd., one of Iseman’s clients. He introduced a bill to create tax incentives for minority ownership of stations; Ms Iseman represented several businesses seeking such a program. And he twice tried to advance legislation that would permit a company to control television stations in overlapping markets, an important issue for Paxson.”
Local Marketing Agreements (Glencairn)
No representative of Glencairn or Alcalde and Fay, met with Senator McCain in 1998 to discuss the issue of local marketing agreements (LMAs). On July 20, 1999, Senator McCain met with Eddie Edwards, the head of Glencairn, regarding LMAs and minority media ownership issues. This meeting was several months after Senator McCain had weighed in at the Federal Communications Commission (FCC) regarding its expected December 1998 decision on media ownership rules. There were no other meetings in 1999 between any representative of Alcalde and Fay and Senator McCain regarding the issue of LMAs.
Senator McCain’s Commerce Committee staff recalls meeting at least once with representatives of Alcalde and Fay concerning the issue of LMAs. The staff also recalls meeting with many other representatives of media companies, as well as groups advocating for consumer and public interests, regarding the issue of LMAs during the time the FCC was considering the issue.
As to the December 1998 letters and the February 1999 letter, those letters were not written in support of any one party or in favor of a particular interest. Those letters were simply written by Senator McCain as the Chairman of the committee that oversees the FCC to express his opinion that the agency should not act in a manner contradictory to Congressional intent. In both his December 1, 1998 letter and his December 7, 1998 letter, Senator McCain makes clear that Section 202(h) of the 1996 Telecommunications Act unambiguously directs the FCC to review its media ownership rules every two years with an “eye to lessening them, not increasing them.” Additionally, the letters quote from the 1996 Telecommunications Act and its report language, as well as language from the 1997 Budget Reconciliation Act. The letters do not express an opinion on the merits of LMAs, but strongly encourages the FCC to recognize the “clear language” in the statute.
Hundreds of other interested individuals commented on the LMA proceeding, including over a dozen members of Congress from both parties during December 1998 who were also concerned that the FCC would circumvent Congress’ intent. In addition to Senator McCain, Chairman Tauzin of the House Energy and Commerce Committee also stated that the Commission’s failure to act in a manner consistent with the statutory language set forth in the Act would likely result in a review by Congress of the FCC’s function and structure.
Tax Certificates To Encourage Minority Ownership In Broadcasting
When Commissioner Michael Powell was appointed to the FCC in 1998, he spoke with Senator McCain, then Chairman of the Senate Commerce Committee, about establishing a program that would encourage minority ownership for communications companies, but prevent the rampant abuse that was found in a previous program that the Congress voted to terminate in 1995. McCain and Powell began working in 1999 with the National Association of Black Owned Broadcasters, the Minority Media and Telecommunication Council, and other minority groups.
That fall, Senator McCain introduced the “Telecommunications Ownership Diversification Act” and Commissioner Powell voiced his support. As the Senator explained in his introductory floor statement on October 8, 1999, he introduced this bill due to his concern that small businesses face “significant barriers in trying to enter the telecommunications industry … These barriers are even more formidable when the entrepreneur happens to be a woman or a member of a minority group, due to their historically more difficult job of obtaining needed financing.” The legislation was referred to the Senate Finance Committee because the bill amended the tax code.
The bill was supported by many broadcasters, and for this reason a group of over 30 companies formed a coalition to lobby on behalf of the bill, which included several of Alcalde and Fay’s clients. The coalition included the major broadcast networks, ABC, CBS, FOX and NBC, as well as the National Associations of Broadcasters. Other members included the Minority Media and Telecommunication Council, National Asian American Telecommunications Association, National Coalition of Hispanic Organizations, National Council of Churches, National Association of Black Owned Broadcasters, National Hispanic Media Coalition, National Indian Telecommunications Institute and National Urban League.
Senator McCain reintroduced the bill in the 106th, 107th and 108th Congressional sessions, but it has never been considered by the Finance Committee. It should also be noted that Senator McCain along with Senator Gordon Smith have been working to reintroduce this legislation during the 110th Congressional session, as Senator Smith announced during a Senate Commerce hearing.
Additionally, Senator McCain has continued to introduce a bill to promote more small community radio broadcasters, some of which may be minorities. Senator McCain has introduced some form of the legislation promoting the expansion of low power FM radio stations in the 106th, 107th, 108th, 109th and 110th Congressional sessions to show his continued support of media ownership diversity.
Facts With Respect To Letters To The FCC (November 17 And December 10, 1999)
No representative of Paxson or Alcalde and Fay discussed with Senator McCain the Federal Communications Commission (FCC) proceeding regarding the transfer of Pittsburgh public television station (WQED) to Cornerstone Broadcasting and Cornerstone Broadcasting’s television station (WPCB) to Paxson. No representative of Paxson or Alcalde and Fay personally asked Senator McCain to send a letter to the FCC regarding this proceeding.
Senator McCain was actively engaged in a presidential campaign in 1999-2000, and according his calendar, the last day he conducted business in the Senate was November 8, 1999, and was frequently absent from the Senate prior to that date. He returned to the Senate the night of November 19, 1999 for one hour to participate in a budget vote, and the Senate adjourned shortly thereafter on November 22, 1999. Between November 22, 1999 and Christmas, the Senator did not return to the Senate for any substantive meetings as he was involved in a national book tour and a presidential campaign.
Senator McCain’s Commerce Committee staff recalls meeting with representatives of Alcalde and Fay concerning the FCC’s failure to act on the transfer application. Staff also met with public broadcasting activists from the Pittsburgh area about the transfer application. While the two parties differed in their desired outcome from the FCC, both parties expressed to staff members their frustration that the proceeding had been before the FCC for over two years. Both parties asked the staff to contact the FCC regarding the proceeding. Senator McCain’s personal staff did not meet with any parties regarding this transfer.
While neither the Senator nor his Staff agreed to take, nor did they ever take, a position on the proposed transfer, Committee Staff did agree to draft a letter from Senator McCain to FCC Chairman Bill Kennard, dated November 17, 1999 that began, “I write today to express my concern about the Commission’s continuing failure to act on the pending applications for assignment of the licenses of WQEX(TV) and WPCB(TV), Pittsburg, Pennsylvania.” The letter did not call for the Commission to resolve the matter in favor of either party, and specifically stated, “This letter is not written to secure a favorable resolution for any party on any substantive issue pending before the Commission. Please treat this letter in full compliance with all applicable, legal, ethical, and procedural rules.” Clearly, the purpose of the letter was to request action on the transfer application, not to promote a resolution favorable to a particular applicant.
When the Senator received no response from Chairman Kennard, the Senator’s Committee Staff drafted and sent a letter on December 10, 1999 to the other four members of the Commission and attached the original letter Senator McCain sent to Chairman Kennard. Senator McCain explained to the four Commissioners that he had received no response from Kennard’s office and therefore he was bringing the matter to the attention of the remaining four Commissioners. The letter stated, “The sole purpose of this request is to secure final action on a matter that has now been pending for over two years. I emphasize that my purpose is not to suggest in any way how you should vote – merely that you vote.” (Italics used in original letter.)
During this time, the average time for the FCC to decide a broadcast license transfer was 418 days. Senator McCain wrote the Commission after the parties had waited over 800 days for a decision and again, did not request the FCC to decide the transfer in favor of Paxson or any party. Several other legislators were interested in this proceeding, especially Congressmen Oxley, Stearns, Pickering and Largent who also wrote the FCC regarding the proceeding. Additionally, the FCC’s Memorandum Opinion and Order (FCC 99-393) for this proceeding states that some Congressmen had threatened to offer legislation regarding the transfer application.