Rep. Waxman (Cal.), ranking Democrat on House Govt. Reform Committee, asked Commerce Dept.’s Inspector Gen. last week to open investigation on contributions that industry lobbyists made to Oct. 2001 party for NTIA Dir. Nancy Victory. Waxman’s Thurs. letter to Inspector Gen. Johnnie Frazier cited press accounts that lobbyists for Motorola, Cingular and SBC had helped pay for reception, which was attended by others in telecom industry. Waxman said Victory initially stated that 3 lobbyists had hosted party out of personal friendship for her and that they had paid for it out of their own pockets. “Subsequently, it was revealed that SBC wrote a check for approximately $480 from corporate funds to pay for the party,” Waxman said. He also noted that 10 days after reception, Victory wrote to FCC, urging repeal of what was then 45 MHz spectrum cap. “Ms. Victory did not report the reception as a gift on her financial disclosure form,” Waxman said, noting that eventually Office of Govt. Ethics provided updated advice on what should have been reported. “The Inspector General’s office has the authority to determine whether Ms. Victory acted appropriately and whether any steps need to be taken to prevent such a situation from occurring in the future,” Waxman said. He asked for Commerce IG to investigate “this matter thoroughly” and report back to committee. Victory last month submitted updated financial disclosure form for 2001 to Office of Govt. Ethics. She decided to report contributions that industry lobbyists made to party for her in response to new advice provided by OGE on how to calculate what hosts paid for party as gift, which changed outcome for what she reported (CD Jan 23 p6).
Bill designed to spur new women and minority entrants into telecom industries was introduced by Senate Commerce Committee Chmn. McCain (R-Ariz.), but questions about support remained. Support rolled in from several industry leaders, and FCC Chmn. Powell was quick to endorse it.
Clear Channel Communications Chmn. Lowry Mays defended size and influence of his company to Senate Commerce Committee as those concerned about consolidation of radio stations accused Clear Channel of engaging in anticompetitive practices. Mays’s defense included debate with Senate Commerce Committee Chmn. McCain (R-Ariz.) on how much market share his company held. Since Telecom Act of 1996, which relaxed radio ownership rules, Clear Channel has grown to 1,200 stations from 60. Mays also defended Clear Channel on accusations that ownership of concert promotions dictated which acts got more air time.
Broadband deployment remains key priority for the Commerce Dept. (DoC) Technology Administration(TA) this year, officials said at Wed. media roundtable. TA will continue to focus on demand-side factors, such as showing businesses and consumers what broadband can do for them, and leave the regulatory battles to others, said Bruce Mehlman, asst. secy.-technology policy. That includes more discussion on digital copyright issues, he said. While there’s been some movement in that area, Mehlman said, there’s still long way to go. Other technology priorities, he said, include: (1) Technology transfer efforts to ensure that U.S. innovation and policies are as globally competitive as possible. (2) Technology-led economic development. (3) Efforts to beef up the U.S. information technology (IT) work force by convincing more young people to study math and science. TA also continues to be involved in a national nanotechnology initiative, said Philip Bond, undersecy. of commerce for technology. Agency expects to unveil IT-related legislation in next couple of weeks, he said, but he declined to elaborate. Bond said, the TA also would devote more energy to IT and information and communications technology (ICT) standards, which increasingly are becoming battlegrounds.
NTIA Dir. Nancy Victory submitted updated financial disclosure form for 2001 Fri. to Office of Govt. Ethics, Commerce Dept. spokeswoman said. Victory had said earlier in week, through spokeswoman, that she would report as gift contributions that industry lobbyists made to Oct. 2001 party for her. Move was response to new advice provided by OGE on how to calculate what hosts paid for party as gift, which changed outcome for what she reported as gift (CD Jan 23 p6). News reports last week focused on Oct. 2001 party at her Great Falls, Va., home by 6 lobbyists that Victory said she counted as personal friends. Commerce Dept.’s ethics officials originally ruled contributions to party by co-hosts were gifts that didn’t qualify as reportable. OGE asked Commerce Dept. by midweek to re-interpret calculation it used to arrive at that conclusion, leading to decision by Victory to report contributions in amended financial disclosure statement.
In response to new advice late Tues. by Office of Govt. Ethics (OGE), NTIA Dir. Nancy Victory plans to report as gift contributions that industry lobbyists made to Oct. 2001 party for her, officials said. Her plan to report what hosts paid for party as gift represents change from earlier this week (CD Jan 22 p1). After AP reported party, hosted at her Great Falls, Va., home by 6 lobbyists she counts as personal friends, Victory said Commerce Dept.’s Ethics Office had ruled “benefit” didn’t qualify as reportable gift. Commerce Dept. spokeswoman said Wed. that OGE subsequently asked department to re-interpret calculation used to make original assessment whether gift had to be reported. Based on that math, Victory now will report party as gift in amendment to her financial disclosure form for 2001, spokeswoman said. Gen. Counsel’s office at Commerce Dept. initially had interpreted federal ethics standards based on Victory’s portion of party, spokeswoman said. What has changed in latest calculation is that she had suggested list of some people to be invited to party, spokeswoman said. Dollar threshold for what had to be reported as acceptable gifts in 2001 was $260 under federal guidelines, officials said Tues. “The pro rata shares of the invitees moves that above the $260 limit,” spokeswoman said. Original ruling examined only Victory’s share of party costs, spokeswoman said. Updated advice late Tues. from OGE came after Victory asked Gen. Counsel’s office to take another look at how it reached conclusion on whether gift had to be reported. “What she had done at the beginning was exactly what she was supposed to do,” spokeswoman said, noting that she had asked Gen. Counsel’s office to vet party in advance: “A few days ago she asked them to take a look at it again.” Hosts of party listed on invitation were lobbyists for Cingular, CTIA, Motorola, SBC and partner at Wiley, Rein & Fielding. Motorola Vp Richard Barth, not his company, was co-host of party, spokesman said. “It was his initiative motivated by personal friendship,” Motorola spokesman said. “He has said he doesn’t remember if he later got reimbursed for it.”
NTIA Dir. Nancy Victory said through spokesman Tues. that lobbyists who hosted party at her home in Oct. 2001 were “long-time personal friends” who paid for event out of their own pockets. Victory vetted party plans through Office of Gen. Counsel at Commerce Dept., which cleared “benefit” as gift that didn’t need to be reported, spokesman said. Several sources familiar with federal govt. ethics guidelines said that in virtually all instances, gifts involving corporate money must be reported.
NEW ORLEANS -- Digital transition, antitrust compliance and FCC’s alleged failure to follow congressional directive in enforcing 1996 Telecom Act were principal topics of House Commerce Committee Chmn. Tauzin (R-La.) at NATPE convention here Tues. “We wrote a new law in ‘96 and it’s not implemented yet” by FCC, he told reporters. If Commission had reacted properly to bill’s provisions, he said, “most of these software companies that have failed would have had a chance.”
Timed to coincide with celebration of Martin Luther King’s birthday, Sen. Allen (R-Va.) introduced bill that would give $250 million in technology grants to minority schools. His proposed Digital & Wireless Network Technology Program Act (S-196) comes with notable co-sponsors, including Commerce Committee Chmn. McCain (R-Ariz.), Appropriations Committee Chmn. Stevens (R-Alaska), Commerce Committee ranking Democrat Hollings (S.C.) and Sen. Miller (D-Ga.). In effort to bridge “economic digital divide,” grants would be administered through National Science Foundation and would target historically black colleges and Hispanic-serving institutions, Allen’s office said. Grants could be used for such things as equipment and infrastructure upgrades, wireless technology development, software purchases and training. Allen highlighted recent study by Commerce Dept. and National Assn. for Equal Opportunity in Higher Education that showed most historically black colleges didn’t have high-speed Internet access and that only 3% of those colleges had financial aid to help students close “computer ownership gap.” In comments at Va. Union U. in Richmond, Allen said minority-serving colleges were facing dwindling resources from states and few had private foundations that could provide funds for their network infrastructure. “The best jobs in the future will go to those who are the best prepared. However, I am increasingly concerned that when it comes to high-technology jobs, which pay higher wages, this country runs the risk of economically limiting many college students in our society,” Allen said.
Minn. Dept. of Commerce plans statewide consumer education campaign this spring to inform low-income residents of Lifeline subsidies for monthly bills and Link Up subsidies for service connection costs. Funding for $450,000 program will come from $900,000 fine Qwest paid to state last year in settlement of service quality complaints from 1998 and 1999. Commerce Dept. estimated fewer than 20% of eligible low- income households were enrolled in universal service programs. Outreach program will use print and broadcast ads to reach estimated 100,000 eligible but unenrolled Minn. households to make them aware subsidies are available. Subsidies are funded by federal and state universal service surcharges on phone bills, but don’t cover large-scale outreach efforts such as one Minn. Commerce Dept. is beginning.