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March 8, 2005

McCain's Own Loophole, & His Takeover of Local Reporting


John McCain, like far too many politicians, enjoys telling others what to do. And as his efforts to promote "campaign finance reform" show, he also enjoys telling others what they may, or may not, say, and how they may say it. That's because he wants to control the flow of money into politics to benefit causes with which he agrees -- that would be, mostly, John McCain -- and to the detriment of causes he finds threatening to the old guard's hold on power. That would be, as last week's news from FEC Commissioner Bradley Smith demonstrated, the Internet and other open spaces where speech is unregulated and unfettered. There's more, of course: McCain has launched what would amount to a federal takeover of local television stations' ability to gather and deliver local news as they see fit. More about that in a minute.

McCain, again like too many politicians, wants to have it both ways. What's good for the goose is decidedly not always good for the gander. So while the Senator is happy, indeed even eager, to pile on regulations that limit the ability of the rest of us to influence politics, he's found a way to do an end run around both principal and the law. It's called the Reform Institute, he runs it, it raises money to promote him and his ideas, and it's all perfectly legal. Why? Because, of course, he has hot shot lawyers at his disposal who can craft loopholes into the laws they write for McCain himself.

This morning's New York Times runs a page one story on this organization, which is McCain's pet nonprofit 501 (c) (3). He is chairman of the advisory committee. Here's a bit of what the Times says about this little-known cash cow:

The institute has drawn little notice, but it offers a telling glimpse into how Mr. McCain operates. In the four years since its creation, it has accelerated its fund-raising, collecting about $1.3 million last year, double what it raised in 2003, a sizable sum for a group that exists to curb the influence of money in politics.

Mr. McCain, the institute's most prominent spokesman, defended the large donations as a necessary part of advocacy work, and drew a distinction between the progressive agenda of the Reform Institute and political efforts to which campaign finance laws apply. The institute is different, he said, "because it is nonpartisan and issue-oriented."

"You have to have some sort of funding if you want to do things," Mr. McCain said. [emphasis added] The senator, who has championed limits on large contributions for candidates and organizations, is to testify Tuesday on his plan to limit unregulated advocacy groups that spent millions of dollars on advertising in the 2004 campaign.

Well, yes you do. And it helps if you don't have to worry about those damnable campaign laws advocated and put into place by people like -- John McCain, the man whose attack dogs spent a few hours last week smearing the reputation of FEC Commissioner Bradley Smith. The man who tried to prevent Smith from gaining his seat on the FEC after Bill Clinton, following precedent, nominated Smith on the recommendation of Trent Lott.

Of course, not everyone is fooled:

"It's screaming hypocrisy, isn't it?" said Roy Schotland, a professor at the Georgetown University Law Center and a critic of Mr. McCain's campaign finance legislation. "What he's doing is what he and his side are always screaming about, violating at least the spirit of the campaign finance laws."

Indeed. But what matters to men like McCain and his allies isn't so much that the playing field is leveled, or that mammon is banned before it corrupts another innocent soul. No, what matters is that he continues to receive press accolades from the chattering classes for whom the status quo is as heaven. Inasmuch as these "reformers" can make fundraising more difficult for their erstwhile competition, they further secure their own holds on office. And if they can extend their "reform" efforts to those pesky bloggers who refuse to play by the rules, well, it's time to break out the champagne. As long as others are paying for it, of course.

How odd it is that, given its ties to the man who would reign in freewheeling political debate, the Reform Institute lists as its first role:

The Institute is a unique voice focusing on the need to restore democracy by breaking down barriers that hinder civic participation in the political process and free the political system from the influences of special interests. We reach out to organizations and coalitions interested in reducing corruption in politics and educate the public on these issues.

They're for "breaking down barriers that hinder civic participation in the political process and free the political system from the influences of special interests." Really? What could be more civic in nature, in the Burkean sense of "little platoons," than independent bloggers employing new technology to voice their opinions and do their own investigative work? And where would you find any group of people who have fewer ties to those dreaded "special interests"?

Not at the Reform Institute, that's for sure. Again, the Times:

The trouble is not the mission of such nonprofit groups or the motivations of their founders, Mr. Cohen said. The problem, he said, lies in the close and unregulated relationship between the nonprofit groups and politicians.

"The nominal function of the Reform Institute is quite positive," Mr. Cohen said. "But it is hard to believe there are not some donors on the public list of donors less because they support the political reform concerns and more because they want their names to be seen showing their support."

Other McCain critics see another purpose for the institute: keeping some of the senator's advisers busy in the months before any formal presidential campaign operation would be established. According to the institute's public tax records, Mr. Davis, its president, received a $110,000 consulting fee from the group in 2003. Mr. Davis said he was making the same amount this year.

Gosh, Senator McCain, sure sounds like a loophole to me.

But the Institute has important goals, such as telling local broadcast networks how to fill their hours on the air. Are you unsatisfied with the content of your local station? Worry not: Senator McCain is going to take it over, after a fashion, by forcing it to conform to his vision of what a station should be, what it should report, how it should report it.

How do you do this in America? Simple: threaten to deny the station its broadcast license unless it conforms to government demands. Here's what the Reform Institute's web site says about it:

ALEXANDRIA,VA – The Reform Institute, a nonpartisan government reform organization whose Advisory Board is chaired by Senator John McCain, today commented on the release of the Lear Center Study on broadcasters' coverage of the 2004 election cycle and the introduction of the “Localism in Broadcasting Reform Act of 2005."

The study analyzed more than 4,000 local newscasts in eleven of the nation’s largest markets in the four weeks before the election. While more than half of these broadcasts featured a report on the presidential race, only 8 percent reported on a local race.

"Last summer Senator McCain issued a challenge to broadcasters calling on them to fulfill their public interest obligations within their local communities — this study proves that the broadcasters have not met this challenge. It is clear that the industry is unwilling to regulate itself," said Rick Davis, President of The Reform Institute.

In response to the broadcasters dismal local coverage, Senator John McCain introduced the "Localism in Broadcasting Reform Act of 2005." The legislation reduces the renewal period for broadcasters from eight years to three years, obligates the full Federal Communications Commission to review 5 percent of all license and renewal applications, and requires stations to detail their commitment to local public affairs programming.

Cecilia Martinez, Executive Director of The Reform Institute added, "Most Americans get their news from local TV. The Reform Institute applauds the introduction of the 'Localism in Broadcasting Reform Act of 2005' by Sen. McCain, which will establish more rigorous standards for broadcaster’s licensure renewal ensuring that the minimal, local public interests are being served."

Here's some of what McCain said about his act at a press conference last month:

“Thank you, Dean Kaplan for your work analyzing another year’s local news coverage of local elections. It is incredible that since you began studying local news coverage in 1988, broadcasters have yet to show marked improvement.

“One of the most startling statistics from the study is the ratio of political advertisements to candidate news stories aired during a half-hour news cast. Reduced news coverage led candidates to spend over $1.6 billion on television ads in 2004 to introduce themselves to voters, double the amount spent in 2000.

“Another interesting finding was that eight times more news coverage went to stories about accidental injuries than local elections. From what I can gather, if a local candidate wants to be on television, and cannot afford to advertise, his only hope may be to have a freak accident.

“Last summer, after hearing similar data, FCC Chairman Michael Powell and I challenged all local broadcast television and radio stations to provide their local communities with significant information on the local political issues facing communities, the local candidates’ campaign platforms, and the local candidate debates during the 2004 election.

“In response to the challenge, many broadcasters sent volumes of material detailing their extensive election coverage and committing to increase their coverage in 2004. To those broadcasters, thank you for serving your viewers.

“To those broadcasters whose dismal performance is captured in this study or whose performance was as dismal as the broadcasters in the study, I question how you are meeting your obligation to use the Nation’s spectrum to serve the “public interest.”

“Therefore, I feel it is now time to introduce legislation to bring local back into local broadcasting. Later today, I will introduce the “Localism in Broadcasting Reform Act of 2005,” which would reduce the license term for broadcasters from eight years to three years, thereby requiring broadcasters to provide the FCC with information every three years on why their license should be renewed.

Since the Senator now "feels" it's time for a federal takeover of local broadcast news stations. Make no mistake: this would be the effect of this legislation. Do Americans really want Washington telling their local broadcast stations what they may or may not broadcast as news? Do we need to have the content of our our airwaves devoted to news dictated by a man who smears his opponents, rigs the system in his own favor, and then exploits custom loopholes for his own advancement?

More:

“Additionally, the bill would require the full Commission to review five percent of all license and renewal applications, and would command [emphasis added] broadcasters to post on their Internet sites information detailing their commitment to local public affairs programming. The bill also calls for the FCC to complete its open proceeding on whether public interest obligations should apply to broadcasters in the digital era.

John McCain is a power-hungry man who is happy to destroy those who oppose him, and who finds free speech threatening. Even leaving aside the antiquated notions of the public airwaves and their uses -- cable television, the Internet, and other forms of media long ago reduced the percentage of Americans who rely solely on broadcast news to stay informed to a tiny percentage of the population -- this is regulatory overkill that should be resisted. The airwaves, the Internet, campaign financing -- this man's ambitions to control what we can see, read, and hear know no bounds. It's time to call him out and defeat these nefarious regulations before they further erode our rights.

Update: Via Michelle Malkin, Captain Ed has been researching the story, and what he finds makes McCain look even worse than anything the Times dug up. Ed also links to a new AP story on McCain and the Reform Institute.

Among the donors to the Reform Institute: McCain's RI is funded by: George Soros's OSI; Teresa Heinz Kerry's favorite, the Tides Foundation; NARAL; and the Proteus Fund, which promotes gay marriage.

Think about this: McCain runs in Arizona as a conservative (if, as the media love to say, "maverick") Republican. He's pro-life, pro-NRA, and socially conservative. Yet he takes money, it seems, from anyone with a need to buy influence in Washington through a wonderful little loophole he himself designed as part of his eponymous campaign finance reform legislation. There's a word for such people, but I'll refrain from stating it.

See the AP article, in particular, for condemnations from McCain's allies in campaign finance reform efforts, including Larry Noble of the Center for Responsive Politics, and Kent Cooper, who runs the Political Money Line.

Update II: Guess where you can read the full text of Senator McCain's statement to the Senate to introduce the Localism in Broadcasting Reform Act of 2005 back on February 15? Try the Campaign Legal Center, run by Trevor Potter, McCain's former general counsel and the same folks who smeared Bradley Smith in last week's press release.

Can you say "nest of vipers"?

Update III: Michelle now reports, via National Journal's Technology Daily (subscription required) that Sen. Feingold's website has the following text:

Statement of Senators John McCain and Russ Feingold On Internet Communications

March 8, 2005

As the primary Senate authors of the Bipartisan Campaign Reform Act of 2002, we have spent years fighting to clean up elections and ensure that powerful monied interests do not drown out the voices of everyday Americans in our political system. Those interests don't want to give up any of their power, and their main tactic has been to try to whip up fears, however unfounded and unrealistic, about reform.

The latest misinformation from the anti-reform crowd is the suggestion that our bill will require regulation of blogs and other Internet communications. A recent federal court decision requires the Federal Election Commission to open a new rulemaking on Internet communications. The FEC will be looking at whether and how paid advertising on the Internet should be treated, i.e., should it be treated differently than paid advertising on television or radio. This is an important issue -- since BCRA outlawed soft money, we need to make sure that the FEC doesn't try once again to subvert the law by creating loopholes. So far, the FEC has not even proposed new regulations. When it does so, there will be ample opportunity for comment and debate about whatever proposal the FEC makes.

This issue has nothing to with private citizens communicating on the Internet. There is simply no reason - none - to think that the FEC should or intends to regulate blogs or other Internet communications by private citizens. Suggestions to the contrary are simply the latest attempt by opponents of reform to whip up baseless fears. BCRA was intended to empower ordinary citizens, and it has been successful in doing so. We will continue to fight for that goal.

This assurance echoes that of Ellen Weintraub (above), stating that nothing has been decided yet, and that there will be "ample opportunity for comment and debate."

We've seen this morning how Sen. McCain has worked the loopholes of his own legislation to raise money, keep his staff active, and promote his causes, and that he'll gladly accept any check that doesn't bounce, regardless of the source. Given all that we've learned about him and his crew, ask yourself how it stacks up against the warnings of Bradley Smith and other critics of FEC regulation of political speech.

The question is not now, nor has it ever been, one of "reform." It's a question of control -- of power -- pure and simple. Control the flow of money, and you control the ability of citizens to voice their support for, or opposition to, a candidate through their checkbooks. Toss in, by the way, McCain's grab for control of how much time local news networks must spend on "local" stories (see above in this post), and you see that a pattern has emerged. And it isn't the type that anyone who cares about free speech should find comforting.

Winfield Myers | Mar. 8, 2005 | 10:01 AM