CJS APPROPRIATIONS BILL SCHEDULED FOR SENATE FLOOR TODAY

The Senate is scheduled to take up the Commerce Justice State (CJS) Appropriations Bill today (Mon.) at 1 p.m., leading to floor discussion on media ownership, Northpoint and other communications issues. Despite the fact that Senate Appropriations Chmn. Stevens (R-Alaska) got his wish to move the bill to the floor, sources said it still was very possible that the bill could be rolled into an omnibus appropriations measure, which they said would make clandestine removal of the 35% broadcast ownership cap provision much easier.

The bill (S-1585) was amended to incorporate several controversial communications items. Most notably, an amendment to retain the 35% cap was added as part of the manager’s amendment. The amendment would prevent the FCC from spending any funds to implement its controversial rule change to raise the cap to 45%. The bill also includes an amendment that would allow Multichannel Video Distribution & Data Services (MVDDS) to receive use of the 12.2-12.7 GHz without going through FCC auction. This so-called “Northpoint amendment” -- which critics said primarily would benefit Northpoint Technology -- was introduced by Sens. Landrieu (D-La.) and Hutchinson (R-Tex.) and was supported by Stevens. However, Senate Commerce Committee Chmn. McCain (R- Ariz.) and Committee ranking Democrat Hollings (S.C.) strongly oppose it.

Sources monitoring the bill said several controversial amendments involving the Justice Dept., State Dept. and U.S. Trade Representative also are in the bill. That, along with a tight deadline for consideration of the bill, was making many wonder whether the CJS bill wasn’t destined for the omnibus process.

Sources on the Hill and in industry told us they expected “hundreds” of proposed amendments -- a Hill source said perhaps 200 amendments and an industry source said Democrats, upset with the prospect of a 30-hour marathon session on judicial nominations, would stall the CJS process with a flurry of amendments. An industry source said Democrats might use the CJS bill in an attempt to force votes on many controversial issues.

Senate leadership imposed a Nov. 12 deadline for considering all free-standing appropriations bills. Leaders have said the Senate will meet on Veterans Day (Tues.) to consider legislation and sources said they might not allow votes after 4 p.m. Mon., making Veterans Day consideration of the CJS bill more likely. Majority Leader Frist reportedly aims to bring the Veterans Administration-Housing & Urban Development (VA-HUD) bill to the floor Wed.

It was unclear what amendments would be introduced, but representatives of both McCain and Sen. Dorgan (D-N.D.) said they were considering offering some. McCain has said he wanted the 35% cap provision removed and has called the appropriations bill inappropriate since it was legislating policy in an area already approved by the authorizing Commerce Committee (S-1046). In the Appropriations CJS Subcommittee debate on the bill, Dorgan said he probably would offer a floor amendment that would roll back the FCC’s new rules on cross-ownership.

An industry source said that while McCain might talk about the 35% cap on the floor, he was not likely actually to introduce such an amendment for fear it would be soundly beaten. The Senate voted 55-40 in Sept. to undo all the FCC rules, and sources said any amendments to preserve those rules probably would be defeated. Some industry sources said that while McCain might be inclined to support Dorgan on cross-ownership or require some divestiture of large radio chains, he also could back off from such proposals because of his own stated aversion to legislating on appropriations bills. McCain was hit by a press report that said he pushed for a “pork” project in the military spending bill, industry sources said, and that negative attention might prevent him from adding other measures to the appropriations bill.

Should the CJS bill end up being wrapped into an omnibus appropriations measure, several sources said it would be much easier for Senate and House leaders, and the White House, to remove the controversial 35% cap amendment. Republican leaders in both chambers, particularly House Majority Leader DeLay (R-Tex.), have supported the FCC’s rule changes. Industry sources said that a House-Senate conference on an omnibus appropriations bill could allow the 35% cap to be removed without any members having to take responsibility. One industry source said the White House would surely be represented at such a conference. The White House already has issued a Statement of Administrative Policy (SAP) opposing any loosening of the FCC’s ownership rules. However, sources said that should a 35% cap remain in the omnibus appropriations measure sent to the President, Bush would be unlikely to veto it.

Should the CJS bill pass as a standalone CJS appropriations bill, industry sources said the 35% cap would be more likely to remain. The House bill, which already has passed, also included a 35% broadcast cap amendment. A conference on just the CJS bill would include many more subcommittee members from both chambers, several of whom support the 35% cap. Notably, House Appropriations CJS Subcommittee Chmn. Wolf (R-Va.) and Senate Appropriations CJS Subcommittee Chmn. Gregg (R-N.H.) both support a 35% broadcast ownership cap. Hollings, Stevens and House Appropriations ranking Democrat Obey (Wis.) -- all of whom support a 35% cap -- also would have a larger role in a CJS conference.

The Senate CJS bill includes other communications- related provisions. It would prevent the FCC from accessing a trust fund for which it pays for its auction program, a provision that FCC Chmn. Powell told McCain must be restored. The bill would cut funding for the Commerce Dept.’s Technology Administration.