U.S. Senators Hollings, Dorgan and Lott Press Conference on FCC decision

Date: June 2, 2003
Location: Washington, DC

TRANSCRIPT: U.S. Sens. Hollings, Dorgan and Lott Press Conference on FCC decision

Hollings' Statements and Q & A with Reporters
June 2, 2003

OPENING STATEMENT

HOLLINGS: Let me clear the air with respect to the one hearing. The commissioners, specifically Adelstein and Copps, asked for hearings over the entire country, public hearings, and before the commission. And, yes, Chairman Powell agreed to that one hearing over in Richmond.

That's not to say they haven't had other hearings. Namely, the minority went out by traveling all over the country themselves. They didn't afford them any money from the commission to do it, but they went about it anyway to hold these hearings.

And I would really ask that you look at those minority opinions, because this isn't a commission decision. It's a 3-2 decision, and really force-fed, in a sense, by the chairman, Powell, himself.

I say that because the normal procedures is that you issue a rule for public comment - the 45 percent raising the 35 percent cap up to 45 percent. And they never issued that rule. And they never got to public comment. And therefore, they don't have the evidence or the record to sustain the 45 percent, in this individual's opinion. That goes right to the idea of the decision itself with respect to rules in the Fox case, whereby the Supreme Court sent it back and said, "You don't have insufficient evidence to sustain this rule. You might have had it. You might could produce it and you might go ahead and come with the same rule."

That's not to say what Chairman Powell has said in the morning news, whereby he said, "If we don't act right now, we just won't have any rule." That's nonsense. That's begging the question. And he's acting like he's helping out now in an emergency situation by force-feeding a vote without a vet.

Otherwise, Senator Stevens and myself, we could see these. We've been trying - 150 congressmen, senators, bipartisan, otherwise - have asked to hold up, let's have other hearings and everything else of that kind.
And we couldn't get a hearing. So we just put this bill in to retain the 35 percent cap. That's the Stevens-Hollings bill that's before the committee now.

And I'm convinced, just noodling around, that we can get a majority vote and report that bill out and get some action on the floor of the Senate.

Otherwise, we do have an appropriations bill. We never like to put those communications riders on, but this is such a disastrous proceeding and finding and rule by the commission itself this morning that I'm convinced that we've got to weigh-in in the Congress. The people, they want to be heard.

This concentration is absolutely in opposition to the interests of the public itself. And there's no ground for it, there's no reason for it other than greed.

I only make one little comment - I want to yield to a former leader here - with respect to the 35 percent. We had this debate in the '96 act itself. It took us four years to pass that '96 act. And in that we had had a 25 percent cap, and we only increased it to 35 percent at that particular time as trying to recognize the reality. Some had inched ahead of the 25 percent, had gotten up near the 35, so in order ? that was one of the holdups, a final passage, or rather submission to both houses. We just said, "All right, we recognize it."

But the urge then was to try to keep the 25 percent cap; not the 35 percent cap. And now without hearings, without public comment, whatever, the commission here has just force-fed and gone up to 45 percent, plus doing away with all the other cross-ownership rules.

Let me yield to Senator Lott.

SECOND STATEMENT

HOLLINGS: Let me emphasize one custom, and that is when any commissioner has ever asked for a 30-day extension to consider the proposal, that's automatically granted until this particular proceeding. Otherwise, the commissions have worked over the many years to have unanimous decisions. Senator Lott knows that and I know that, working for the years on this committee.

And this is really - it's unfortunate, given that hue of a political decision, the 3-2, Republican-Democrat, and that's why it's so important that you understand that it's totally bipartisan as far as the Congress and the people are concerned.
And you'll get the extremes from the National Rifle Association over to the women's organizations to this group, the conservative and most liberal and everything else of that kind.

I would commend Tom Shales' article in the morning Post to you. I mean, he covers the broad breadth of this particular issue.

Q & A WITH REPORTERS

QUESTION: Can you talk a little bit about the legislative process and what you have in mind in terms of the bill? Can you overturn this decision? And if so, how?

DORGAN: This is a process in the Congress that provides for a legislative veto. That's not the correct terminology. Emmett, what is the...

STAFF: It's a resolution of disapproval.

DORGAN: Yes. But it essentially was established some years ago, has been rarely used, but allows the Congress to respond negatively with respect to a rule coming from a federal agency if they believe the rule is counterproductive to what Congress intended when they passed the legislation.

So we do have an opportunity to force a vote in the Senate and the House on this issue, and some of us are taking a look at that.

There are other approaches. Senator Hollings just mentioned one. Senator Lott as well. I'm a cosponsor of the bill that would establish the 35 percent.

But there are so many issues there: cross-ownership, the issue of newspapers owning the broadcast stations. One newspaper announced this weekend, "Look, we want to buy a television station in every market where we have a newspaper."

And, you know, there clearly now is going to be an orgy of mergers and acquisitions. It's going to happen quickly. This opens the floodgates.

And there was a story this weekend again about one of the major companies that's already—they already have their targets, they've already lined up what they want to do, where they want to go, who they want to buy.

I think this is a horrible decision.

LOTT: Let me just comment, too, on one thing that Senator Hollings said.

I've been urged not to do this, but I can't resist.

I don't recommend you to the Tom Shales article. After reading that I started to wondering if maybe I was on the wrong position here, because he almost convinced me to go back and think again about the position I was taking. He inferred it was partisan, number one. I thought his language with regard to a particular owner was inappropriate.

QUESTION: Can I follow up real quickly? Given what you say is already in the process that's just started, to use your word, "an orgy of mergers and acquisitions," two questions: Legislatively or practically, can you stand in front of this train?

DORGAN: I hope those that are engaged now in trying to find a new deal in the next 24 or 48 hours will understand that the FCC's decision today is not the final word. You heard from Senator Hollings and Senator Lott and myself and others in Congress who will be very intent on trying to legislate in this area. So I think people should be aware of that.

QUESTION: Senator McCain said yesterday that he opposed the legislation to keep the cap at 35 percent. He said so on the talk shows. He said he didn't think it would pass right now. How do you...

HOLLINGS: I disagree. I think it will pass.

QUESTION: Out of committee?

HOLLINGS: Out of committee. And he said he would give us a chance to vote on it, as I understood, in that same program. I wasn't here, but that's what I understand.

LOTT: And also, as he knows and as Senator Hollings can certainly tell you, there's more than one way to address an issue like this. It doesn't necessarily just have to be a bill out of the committee. Although, obviously, that would be preferred. It could be an amendment. Or, you know, if worse comes to worse, there's always the appropriations bills which get to be, you know, an opportunity for a lot of things. And Senator Hollings knows how to do that, I must say.

And let me say about Senator McCain. I've watched what our friend, Senator McCain, has said in this area. And he has said, you know, "Yes, probably there should be a cap" - I believe that's what he said - "but the question is what is the level?"

If you listen closely to his questioning, that seemed to be - and again, I don't want to put words in his mouth - maybe he feels that, you know, that's why we have the FCC to make these decisions. But that's why we have a Congress and the courts to review decisions, too, or to reverse them sometime if they don't act in the best interest of the American people.

I think most people feel like some sort of cap is needed. The question is what is the level? And I think 45 percent is too much. I thought 35 percent was about right when we did it and I still think it's right.

QUESTION: Yes, I'd like to ask anyone, I'd like to know how Univision, a large Spanish TV, is going to return to original owner, because they voted last year NBC. The programs are so bad. I don't see an integrity, honesty, usually I used to see it. So I came to asking the question, what's going to happen because nationwide they have (INAUDIBLE) it's going possible to be returning the owner spanish.

DORGAN: You know, I don't think any of us want to today talk about a specific proposal that's out there. I mean, that proposal has had some discussion and has had some controversy. But I think what we would like to do is talk about the decision by the FCC today rather than address specific proposals.

QUESTION: Senator Hollings, what about this proposal Senator Lott just raved about, using the appropriations process?

HOLLINGS: It's very possible. I'd like to do it the legislative way and have it considered, but I think everybody's on notice now that we're in trouble and the Congress tried to react. We communicated very forcefully with Chairman Powell. It was ignored and certainly ignored within the decision now that's come out this morning.

So if need be, yes, there could be a rider on the appropriations bill that no money should be expended by the FCC to administer the Powell rule. That's clear, isn't it? (LAUGHTER)

Let the contributions begin.

(LAUGHTER)

DORGAN: Any other questions this morning? If not, thank you very much.

HOLLINGS: Thank you.

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