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5 FEDERAL COMMUNICATIONS COMMISSION

6 BROADCAST LOCALISM HEARING

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9 SOUTH DAKOTA SCHOOL OF MINES AND TECHNOLOGY

RAPID CITY, SOUTH DAKOTA

10 MAY 26, 2004

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1 (The hearing commenced at 5:45 p.m.)

2 COMMISSIONER ADELSTEIN: This hearing

3 of the Federal Communications Commission will

4 come to order. Good evening, everybody, and

5 welcome to the third hearing of the Federal

6 Communications Commission\'s Localism Task

7 Force.

8 My name is Jonathan Adelstein, and I\'m one

9 of the five Commissioners on the Federal

10 Communications Commission. Thanks to Senator

11 Daschle I\'m the first one ever from South Dakota

12 to serve on the FCC in the 75-year history of

13 the agency and the first one in fact to even

14 serve from any of the states in the upper Great

15 Plains. It\'s great to bring the FCC back home.

16 I\'m thrilled that Commissioner Mike Copps

17 came with us here to my hometown to this hearing.

18 Commissioner Copps has been a great national

19 leader in the effort to make media more

20 responsive to local concerns and in the struggle

21 against media consolidation.

22 I should explain to everyone that until last

23 week, our chairman, Chairman Powell, fully

24 planned to be here. Unfortunately, the

25 President and Congressional leaders asked him to

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1 participate in an event back in Washington, so

2 he had to return early this morning. But we

3 were so glad he came out yesterday and

4 participated in the series of events involving

5 our telecommunications future here in our

6 state. It's an honor he asked me to chair this

7 hearing in his absence. He has assured me that

8 as tonight\'s hearing is being recorded for the

9 record, that he will review the entire

10 transcript.

11 The focus of this evening is how well

12 broadcasters are serving their local

13 communities. The FCC has been here all week,

14 though, as I said, interacting with tribal

15 community leaders on telecommunication needs,

16 showcasing cutting edge technologies and

17 exploring the benefits of wireless broadband for

18 rural America. The Chairman attended many of

19 these events yesterday when he was here.

20 This level of involvement by the FCC in a

21 community like Rapid is unprecedented, and we\'re

22 so proud that the FCC would dedicate these kind

23 of resources to investigating what\'s happening

24 in our community and trying to find ways to make

25 our telecommunications and media systems even

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1 more responsive.

2 All this came about because of tonight\'s

3 hearing, which is really the focus of our visit.

4 I\'m proud to hold this historic hearing in my

5 hometown. Now, this is the third of only six

6 hearings that we\'re holding across the country.

7 The first hearing was in Charlotte, North

8 Carolina last October and the second was in San

9 Antonio, Texas earlier this year. And we\'ve got

10 about three more hearings to come.

11 But Rapid City is the smallest market that

12 we\'re going to visit, and that\'s going to serve

13 as an important case study of what\'s happening

14 in hundreds of communities across the country

15 that won\'t have the opportunity to have a visit

16 like this from the FCC.

17 So we hope to showcase our local flavor here

18 and give the world a sense of good things that

19 are happening here and maybe some things that

20 need work.

21 What I found as I\'ve gone to these different

22 events throughout the community is that we\'ve

23 had incredible levels of local press coverage.

24 We\'ve had cameras everywhere, we\'ve had the

25 Rapid City Journal covering extensively what

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1 we\'ve done before and during, and we\'re really

2 glad to see the kind of real localism. That\'s a

3 testament to the commitment of our broadcasters,

4 of what\'s happening in the community. We want

5 to hear about those efforts, and things people

6 might think need to happen in addition.

7 As I was preparing for tonight, I thought a

8 lot about the local flavor of the Black Hills

9 and how, for a change, major media companies

10 like HBO are actually catching on to Deadwood\'s

11 global appeal. It only took about 130 years.

12 Deadwood is actually a fascinating case, you

13 know, because we often hear criticism about big

14 national media companies that don\'t cover enough

15 local issues. But here we have a local

16 highlight being featured on the national scene,

17 and it seems to be adding quite a bit of, shall

18 we say, color to our culture. Given the show\'s

19 language, it\'s a good thing for HBO

20 that the FCC and decency rules don\'t yet cover

21 cable programming.

22 It\'s so important that we at the FCC get out

23 of Washington and hear directly from communities

24 like Rapid City. Last summer the FCC was

25 bombarded with really a ground swell of public

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1 concern about the growth of giant media

2 companies and how consolidation tends to

3 homogenize the programming and undercuts

4 coverage of local issues that are of concern to

5 local communities.

6 Nearly three million people contacted the

7 FCC to oppose the rules that were adopted, over

8 my objections, to how big media companies get

9 even bigger. We\'ve never seen anything like it.

10 I\'ve personally listened to thousands of

11 people across the country, as has Commissioner

12 Copps, in city halls and schools and churches and

13 meeting rooms all across this country. We

14 sensed a real frustration about the state of the

15 airwaves. And tonight it\'s your turn.

16 Chairman Powell created an initiative on

17 localism that this is a part of last August. A

18 critical part of that effort is to get out and

19 talk to Americans in their own communities about

20 their broadcasters.

21 So we\'re here tonight to hear directly about

22 your experiences with TV and radio. And we\'ll

23 stay all night if we have to to make sure that

24 each one of you who wants to speak is heard.

25 We really want to hear your perspective on

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1 how well broadcasters are meeting the needs of

2 your local community. We want to know are they

3 providing enough coverage of local issues that

4 concern you, including local elections? Do you

5 have enough different news sources? Are they

6 providing balanced coverage of every segment of

7 the community including the Native American

8 community that is so important here? Are they

9 providing enough family-friendly programs? Are

10 you hearing local artists played on the radio?

11 This is all about localism.

12 Broadcast radio and television are unique in

13 they are distinctly local forms of media in this

14 country. They are licensed to local communities

15 like Rapid City and by law they are required to

16 serve the public interest. This bedrock

17 principle embodies broadcasters\' bargain with

18 the government. In return for a valuable license

19 to use the public airwaves, broadcasters agree

20 to act as a trustee of the public interest.

21 Localism in our view is the responsiveness

22 of a broadcast station to the needs and

23 interests of the community of license. This is

24 what distinguishes broadcasters from say a cable

25 or satellite channel that has no local content

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1 and has no special public interest obligations.

2 Every community has local news, local

3 elections, local talent, and local culture. In

4 my view, localism doesn\'t mean just giving

5 promotional air time or fundraising

6 opportunities to local charitable organizations.

7 It means providing opportunities for local

8 self-expression. It means reaching out,

9 developing and promoting local talent, local

10 artists, local musicians.

11 It means being responsive to communities in

12 other ways such as dedicating the resources to

13 discover and address the needs of the community.

14 And there needs to be competition so all those

15 different angles are rooted out. It means being

16 accessible, sending reporters and cameras out to

17 all parts of the community. It means making

18 programming decisions that truly serve and

19 reflect the makeup of the community.

20 I\'m especially pleased tonight that we have

21 so many representatives of the Native American

22 community here, up on the panel and out in the

23 audience, and that we\'re going to get their

24 perspective on how the media coverage of Native

25 American issues and concerns of the tribes are

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1 covered.

2 I look forward to hearing whether the

3 mainstream media adequately covers issues of

4 concern to Native Americans so they don\'t have

5 to rely just on Native American broadcasters

6 like KILI radio, but can instead rely on all of

7 the outlets in this community.

8 Now, having grown up here in Rapid, I

9 personally know the dedication of many in our

10 local media. We have broadcasters here in

11 Rapid City that have a deep and abiding

12 commitment to our community. Just so happens

13 that they are locally owned in many cases.

14 Many of you have probably bumped into Bill

15 Duhamel over here around town. Clearly, given

16 his size, he\'s hard to miss. Some of you

17 probably have let him know what you thought

18 about his programming down at the local cafe.

19 KOTA is right there on the street so you can

20 walk right up to it. It\'s not always the case.

21 In big cities you often find the broadcasters

22 are isolated out somewhere. They don\'t want

23 people walking by and just in. That\'s one of

24 the tangible ways that local ownership touches

25 the community. It\'s one that should be

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1 cherished and it\'s one the FCC should promote.

2 In small markets like Rapid City, I get the

3 sense from just what we\'ve seen this week and

4 from my growing up here that there is a

5 different flavor here. A lot of business and

6 community leaders have told me directly that

7 they\'re pleased with the accessibility of the

8 radio and TV broadcasters in this market and with the

9 coverage of local issues. They perceive in

10 smaller markets like this the media really are a

11 sounding board for the community, and

12 broadcasters recognize their responsibility to

13 serve that function.

14 Part of what we\'re here tonight to learn is

15 whether this accessibility corresponds with

16 local ownership. Does the fact that we have

17 local ownership make a big difference \-- not being

18 owned by a big national conglomerate,

19 out-of-state, absentee owners or larger

20 corporations?

21 And if local ownership does matter, how can

22 we protect that way of life and how can we

23 possibly export that elsewhere? Are Rapid City

24 and other smaller markets represented by the

25 panelists a showcase of positive practices that

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1 can be sent around the country that we can talk

2 to in the larger markets and say why can\'t you

3 do that? That may be wishful thinking. The

4 nature of smaller markets maybe can\'t be

5 replicated.

6 But we should mine for any lessons that we

7 can draw from tonight\'s testimony, and we will.

8 So we want to hear about the positive aspects

9 of what\'s happening here, and also those issues

10 that people in the community feel need more

11 work. We want to learn how the FCC can

12 encourage all stations to put the needs of

13 the local community first.

14 Over the years the FCC has tried to promote

15 localism in many different ways. For a lot of

16 years, the FCC required broadcasters to air

17 certain kinds of programming. It imposed

18 obligations on broadcasters to interact with the

19 community and to conduct formal ascertainment

20 interviews with community leaders to learn of

21 the issues of concern to the community.

22 Over the years, most of these requirements

23 have been eroded or eliminated entirely. Still,

24 local broadcasters continue to be the primary

25 source of local news, weather, public affairs

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1 programming, and emergency information. They

2 play a key part in making our democracy function

3 at its best.

4 So through tonight\'s hearing we want to

5 determine the level of localism that

6 broadcasters are providing today. We\'ll

7 consider what rules the FCC might adopt to

8 improve the local service of broadcasters. This

9 hearing is an on-the-ground inspection of how

10 our broadcast system is working right here in

11 Rapid City.

12 The FCC has several specific objectives for

13 these hearings. First and foremost we want to

14 hear directly from you about what you think

15 about your local broadcasters. Second, we want

16 to hear from a variety of community leaders

17 about how broadcasters address issues of

18 importance to them and the groups they

19 represent. Third, we want to hear from

20 broadcasters themselves about their efforts on

21 localism. Broadcasters should be proud of the

22 coverage of local issues, and we need to hear

23 from them.

24 We also want to educate concerned citizens

25 about how you can participate at the FCC when a

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1 local station\'s license is up for renewal.

2 License renewals happen only every eight years,

3 and they shouldn\'t be just a postcard sent in to

4 the FCC by the broadcaster. That\'s the way it

5 works today.

6 License renewal proceedings are open to

7 anyone who has something to say about their

8 local station. Our staff has prepared a short

9 primer that we\'ve been giving out at the

10 hearings across the country on how to

11 participate in the license renewal process which

12 is available on the table outside, if you\'ve got

13 it, or at the FCC\'s Web site at

14 www.fcc.gov/localism.

15 I want to thank all of our panelists \-- we

16 have a great group of panelists here this

17 evening \-- for preparing testimony and joining

18 us here tonight. The participation of members

19 of the community and the local broadcasters

20 really makes these hearings very meaningful to

21 us. And I extend my thanks for your presence

22 here tonight.

23 I\'m particularly pleased that Park Owens

24 will offer his perspective on broadcasters\' role

25 in meeting critical homeland security and public

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1 safety needs. And I want to welcome all of you

2 who came here tonight. I know that each of you

3 will bring a unique perspective, if you care to

4 share it with us. Hearing directly from you is

5 critical to us as regulators because we have as

6 our main job your interest at stake. That\'s the

7 law, the public interest. We want to hear from you,

8 making sure the decisions we make are in your

9 interest.

10 I\'ve found in my time at the FCC it is just

11 too easy to lose touch. I think back to last

12 summer when the FCC did that dramatic weakening

13 of our media ownership rules. We worked out the

14 rules, but didn\'t put them out for public comment

15 before we put them out. And there was a huge

16 glitch in them that counted the smallest TV

17 markets as if they were among the largest in the

18 country because they didn\'t understand how we

19 counted our statewide public broadcasting

20 networks.

21 For example, these FCC rules now consider

22 Rapid City to be just as big as Baltimore, the

23 city of a million people, and the same rules

24 apply. And it looks like Sioux Falls is just as

25 big as Detroit. So now we can have just as much

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1 consolidation of ownership here in Rapid or in

2 Sioux Falls as you can in these major media

3 markets.

4 Being from here, it was second nature for me

5 to think about how these rules work in places

6 like Rapid City, and I found out about it right

7 away because I said, how is this really going to

8 fit? And I spotted this error and alerted my

9 colleagues. And I certainly hope it\'s the kind

10 of thing we can get fixed.

11 So tonight we\'re shining the spotlight on

12 South Dakota and on the upper Midwest. And I

13 especially want to thank Commissioner Copps for

14 coming to my hometown to get a feel for things

15 out here. Before I turn to him, I also want to

16 welcome representatives from Senator Daschle\'s

17 and Senator Johnson\'s offices who are later

18 going to say a few words.

19 Both Senators have been tireless leaders in

20 the Senate on insuring our media continues to

21 preserve competition, localism, and diversity.

22 I\'m pleased to welcome their statements here.

23 First I\'d like to recognize a few key people

24 in the audience. I see we have our mayor here,

25 Rapid City Mayor Jim Shaw, who will offer some

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1 remarks a little bit later this evening. I

2 especially want to thank Dr. Charles Ruch who

3 was recently inaugurated as the new president of

4 the School of Mines here, and he made this

5 hearing site available. We appreciate your

6 hospitality. Thank you very much.

7 Let me also acknowledge our Lieutenant

8 Governor, Dennis Daugaard, who\'s here. Thank you

9 for coming. We also have all the members of the

10 South Dakota Public Utilities Commission:

11 Chairman Bob Sahr, and Jim Burg, Gary Hanson.

12 Thank you for coming. We have my own dad here,

13 State Representative Stan Adelstein. Thanks for

14 coming. Jack Keegan, the Superintendent of

15 Schools in Sioux Falls. And of course we\'re

16 also joined this evening by our moderator who\'s

17 going to be working for us soon. Probably

18 a lot of you recognize Steve Hemmingsen who

19 anchored news at KELO in Sioux Falls before

20 retiring. He\'ll be moderating the public

21 participation portion of our evening later. So

22 welcome to everyone.

23 And I\'d like to turn now to Commissioner

24 Copps for any opening remarks that he had.

25 COMMISSIONER COPPS: Thank you, Mr.

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1 Chairman.

2 COMMISSIONER ADELSTEIN: I like the

3 sound of that.

4 COMMISSIONER COPPS: That has a nice

5 ring to it. Let me thank Commissioner

6 Adelstein, my friend, and your native son, for

7 everything he has done in getting us out here

8 today, and also for his splendid leadership at

9 the Commission across the whole gamut of issues

10 confronting us, particularly on the media issues

11 like localism, diversity, and competition that

12 are part of the media consolidation issue.

13 In fact, since our other Commission

14 colleagues are not with us tonight, this reminds

15 me very much of the hearings that Jonathan and I

16 did by ourselves around the country about a year

17 ago before the Commission voted, over our

18 strenuous objection, to let big media get even

19 bigger.

20 Anyhow, it\'s great meeting here with

21 Commissioner Adelstein on his home turf. He\'s

22 telling me all the time about how wonderful

23 folks are out here, how warm and gracious the

24 hospitality is. I\'ve only been here about 10

25 hours, but I\'m already experiencing that and

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1 enjoying that. So I\'m delighted to be here, and

2 thank you for having us.

3 I also want to thank your two United States

4 Senators, Tom Daschle and Tim Johnson, who have

5 been champions on so many issues important to

6 South Dakota including the localism, diversity,

7 and competition that we\'re going to be talking

8 about this evening.

9 Neither Jonathan nor I would be here without

10 the leadership and support of Senator Daschle.

11 And he and Tim Johnson bring real vision and

12 leadership from South Dakota to Washington.

13 Most of all, thank you to each and every

14 person in this audience tonight for giving up

15 your precious time and coming out here to share

16 your thoughts with us on the future of our

17 country\'s media.

18 The very first trip I took outside

19 Washington, D.C. as FCC Commissioner was to

20 attend a conference at the other end of

21 South Dakota over in Sioux Falls. And that had

22 to do with the needs of those with disabilities

23 and focused on the power of communications

24 technologies to bring communities together to

25 provide access to vital information and to

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1 foster jobs and economic opportunity.

2 Tonight we discuss many of those themes

3 right here as we continue a truly remarkable

4 grassroots dialogue about the future of our

5 media. Over the past year we have seen really

6 cascading national concern over what millions of

7 Americans, Jonathan and I included, see as a

8 disturbing and worrisome trend in our media.

9 Wherever we\'ve gone we have seen citizens of

10 every stripe, Republicans and Democrats,

11 conservative and liberal, Northern and Southern,

12 young and old, rural and urban. Everybody comes

13 together to express their concerns. More

14 accurately, I think, to express their alarm over

15 the rising tide of media consolidation, big

16 media companies controlling more and more of the

17 nation\'s airwaves.

18 For many months the discussion focused on

19 the decision by the FCC to relax our media

20 consolidation rules with people asking how many,

21 or maybe more accurately, how few companies

22 should control our media, for what purposes are

23 stations granted licenses, how does the

24 public interest fare in a more heavily

25 consolidated environment? That media

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1 consolidation dialogue continues in Congress, in

2 the courts, around the nation.

3 Tonight we talk about our core media values,

4 particularly localism, from a little different

5 perspective. But we should realize that this,

6 too, is part of the larger discussion about

7 protecting the people\'s interest and the

8 people\'s airwaves.

9 No one part of this grassroots dialogue can

10 be divorced from any other part. And media

11 ownership is just as germane to this discussion

12 as any other topic is. So we should begin at

13 the beginning, and that means reminding

14 ourselves that it is indeed we the people who

15 own the airwaves. No company, no station\...

16 (Applauding.)

17 No company, no station, no firm, no special

18 interest owns an airwave in the United States of

19 America. The people together own them all, and

20 corporations are given the privilege of using

21 this public asset and even to profit from it in

22 exchange for their commitment to serve the

23 public interest.

24 Broadcasters have been given very special

25 privileges and they have very special

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1 responsibilities to serve their local

2 communities. It\'s a different industry. It\'s a

3 special industry, and serving the public

4 interest is always supposed to be its lone star.

5 I\'m pleased that tonight we\'ll hear from

6 many local broadcasters with roots deep in their

7 communities, and I hope we will find that

8 localism, diversity, and competition are alive

9 and well here.

10 We need always to recognize and reaffirm the

11 proud heritage of local broadcasters, the vast

12 majority of whom are committed to serving their

13 communities and serving the public interest.

14 But it\'s going to take more than talk to insure

15 that the public interest remains paramount, even

16 here in South Dakota, because the increasing

17 media concentration being allowed by this

18 particular Commission threatens the very

19 survival of local broadcasting everywhere.

20 During the hearings on media consolidation

21 that Commissioner Adelstein and I held around

22 the country, we heard time and again from small,

23 independent, local broadcasters their fear about

24 the effects consolidation was having on them.

25 While most broadcasters try to serve the

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1 public interest, these days they face a

2 progressively steeper hill in doing so. Less

3 and less are they captains of their own fate,

4 and more and more are they captains to the

5 really unforgiving expectations of Wall Street

6 and Madison Avenue. And more and more are they

7 competing against well-heeled big media

8 companies, for whom the highest good is too often

9 selling products rather than meeting their

10 obligation to serve the public interest.

11 Some tell us that the answer is to rely more

12 and more on marketplace forces as a guarantor of

13 the public interest. These people trust that

14 the public interest will somehow magically trump

15 the urge to build power and profit, and that

16 localism will somehow survive and thrive.

17 That is a dangerous assumption to make. And

18 I\'m not willing to rely on magic, magic in the

19 marketplace or magic anywhere else, to safeguard

20 the public interest.

21 In fact, since the 1980s fundamental

22 protections of the public interest in

23 communications have weakened and withered. Not

24 just the controls on the numbers of stations one

25 company can own, but prohibitions on

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1 broadcasters from owning and producing the

2 programs they run.

3 The requirement for broadcasters to go out

4 and meet with members of the community to

5 determine the needs and interests of the local

6 audience, it\'s gone. So are teeing up

7 controversial issues for listeners and viewers

8 and encouraging antagonistic points of view.

9 And maybe that explains something about why we

10 so often get such slipshod election coverage and

11 why too few people actually go out and vote.

12 And those are just a few of the obligations that

13 we have frittered away.

14 Here\'s one more, and Jonathan already

15 alluded to it. We no longer have a credible

16 license renewal process. Not many years ago, when

17 your Federal Communications Commission looked at

18 license renewal time, which occurred every three

19 years, we looked at a very explicit list of how

20 a station is supposed to be meeting its public

21 interest obligations, and that was what we used

22 to make our judgment.

23 We don\'t do that anymore. Now we have a

24 process wherein broadcast companies need only

25 send us a short form, not every three years,

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1 excuse me, but once every eight years. And

2 their renewal applications are almost

3 automatically granted. We don\'t generally even

4 look at the public file that we require stations

5 to keep. So license renewal has become a slam

6 dunk, and it\'s not called postcard renewal for

7 nothing.

8 I believe that this erosion of public

9 interest protections comes at a high and

10 dangerous cost to the American people. Some may

11 call my concern excessive, but I feel in my

12 bones that few priorities that our country faces

13 match this one in terms of long-term importance

14 to our democracy.

15 After all, how we communicate with one

16 another, how we converse with one another,

17 that\'s what America is all about. The rules of

18 broadcast that determine what that conversation

19 is going to be are therefore obviously extremely

20 important.

21 So we are here tonight in Rapid City to talk

22 with members of this community and tap your

23 local expertise and let us know how you think

24 your stations are serving the public interest.

25 There\'s no other way for us to know this without

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1 coming out and talking to you. Are they

2 providing the kind of public issue coverage,

3 community news, local sports, election

4 campaigns, local entertainment, diversity, all

5 of that.

6 Maybe, hopefully, things are better here in

7 South Dakota. I think we need to look closely

8 before we rush to any conclusions. And I hope

9 we can focus particular concern, and I think we

10 will tonight, on tribal communities. Are

11 stations here covering events in Indian Country?

12 Are they providing the perspective of those both

13 on and off the reservations? And do Native

14 Americans have access to their airwaves?

15 And finally, an issue on which I have

16 focused attention since I came to the

17 Commission, are stations adhering to community

18 standards or are they airing excessive amounts

19 of violent and indecent programming?

20 If you leave here concerned about the future

21 of the media, your media, you should realize

22 that there are things you can do to help.

23 Jonathan has already explained the license

24 renewal process, and South Dakota is going to be

25 going through it for the next year in radio and

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1 the year after that in television.

2 There are many ways that you can have input

3 into that. You can be part of a formal petition

4 to deny an application. I don\'t recommend that

5 for anybody but the stout of heart, because the

6 law doesn\'t make it easy, and we don\'t make it

7 easy, and it\'s expensive and it\'s cumbersome.

8 But you can also simply register an informal

9 complaint which we are bound to look at. You

10 can send an e-mail, send a letter, send a

11 postcard. We want to hear from you.

12 Jonathan alluded also \-- something I want to

13 emphasize just a little bit more. We got a

14 little bit side-tracked, I think, in one or two

15 of the earlier hearings, and I hope we can avoid

16 that tonight. Some of our commenters and

17 panelists seem to confuse such things as

18 conducting blood drives and fundraising for

19 charities with the sum total of their public

20 interest obligation.

21 Now don\'t get me wrong, I think such

22 fundraising is wonderful and commendable and

23 deserving of very high praise. But they are

24 only part of a broadcaster\'s far broader

25 responsibilities to serve the community.

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1 It\'s as American as apple pie, I think, for

2 corporations, in every line of business, to

3 participate in this kind of community help. But

4 the questions on the table tonight go way beyond

5 that to how this very special industry is

6 meeting its very special obligations to serve

7 the public interest. So I hope we can focus on

8 that.

9 Thank you very much to all of our panelists

10 for being a part of this. Thank you to all the

11 commentators who will be speaking later. And

12 again, thank you to each and every one of you

13 and to the good people of Rapid City for hosting

14 this this evening. And I\'m looking very much

15 forward to the rest of the record.

16 COMMISSIONER ADELSTEIN: Thank you,

17 Commissioner Copps. Thank you, Commissioner

18 Copps for an eloquent statement.

19 As I look out over the audience, I see we\'re

20 fortunate to have many representatives from

21 several tribes here this evening including

22 Oglala Lakota, Rosebud Sioux, and Fort Peck.

23 And as I mentioned, we just spent the day going

24 over issues of concern to Native Americans and

25 telecommunications, another major area of our

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1 responsibility.

2 I spent the day with many of you, and I\'m

3 sure there\'s others here as well. So let me

4 just welcome all of the tribes represented here

5 tonight. We\'re so pleased to have you here.

6 And after all, a lot of this is about you. So

7 we\'re glad to have you here.

8 I\'d like to open with introducing our very

9 own Mayor, who\'s offering some welcoming

10 remarks. Mayor Jim Shaw knows a little

11 something about the media, and we thank you for

12 being here and welcoming us.

13 MAYOR SHAW: Thank you,

14 Mr. Commissioner. And welcome to all of the FCC

15 personnel who are here. We do greet you on

16 behalf of the City Council and the citizens of

17 Rapid City and are pleased to have you in town.

18 The official welcome from the City is from

19 the Mayor, but also as Commissioner Adelstein

20 just mentioned, I have a separate perspective, a

21 dual prospective, if you will; that's because I

22 made my living before becoming mayor for about

23 30 years in Rapid City in the broadcast media,

24 both radio and television.

25 And so I have that unique perspective both

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1 from having worked, but also now having served

2 as mayor for about five years and can see from

3 the other side how the various media cover not

4 just local politics but statewide and even

5 national on the local scene.

6 I do want to also stress to you that having

7 you here, from my perspective, is very

8 enlightening, it\'s very welcoming, very

9 friendly. But from my days in broadcasting, I

10 know at least in the past a visit from anyone

11 from the FCC brought fear and trepidation to the

12 broadcasters. And having two, or as it was

13 earlier, three Commissioners here, I\'m sure made

14 the broadcasters in the area pay attention.

15 But that being said, and I mean that in jest

16 because my experience in Rapid City, as both of

17 our Commissioners have alluded to, is that the

18 local broadcasters here in Rapid City do an

19 outstanding job of public service.

20 I\'ve been involved in broadcasting long

21 enough that I remember the times of the renewal

22 process that you spoke of, Chairman Copps, when

23 it was a much shorter time span and much more

24 thorough.

25 I believe that most broadcasters today still

30

1 operate as if those former rules were still in

2 place, and they go well above and beyond

3 whatever requirements might have been in those

4 days, not just with local news, not just a

5 rip-and-read kind of an affair, but having

6 actual people who are getting the actual news

7 stories, both radio, television, and for that

8 matter, in the newspaper.

9 Let me speak briefly to the matter of our

10 Native American friends who are represented here

11 and others from Western South Dakota. We have a

12 significant population in the Rapid City

13 community of Native American people, upwards of

14 20 percent, according to some estimates.

15 And I believe the local broadcasters do a

16 pretty good job of covering some of the issues.

17 Could we do more? Of course. Could we be more

18 thorough? The answer is always yes.

20 But the reason I offer that perspective is,

21 one of the efforts I have undertaken as mayor is

22 what I call the Undoing Racism Task Force, which

23 I think describes it pretty well. We recognize

24 there are instances of racism in our community.

25 It\'s not acceptable. Most people would like to

31

1 see it eliminated, and the best way to do that

2 is through communication.

3 We can do that in meetings. And we\'ve had

4 several large group meetings, and we\'ve had

5 several hundred people attend. But there are

6 60,000 people who live in Rapid City. So how do

7 the rest hear about the meetings and not just

8 hear about them in the sense of an announcement

9 that they are going on, but hear about the

10 substance of the discussion? Through the media.

11 And I have to say that the media has been

12 outstanding in their coverage over the last

13 several months, radio, television, long- and

14 short-form interviews, news stories, and such.

15 So I believe we are, when it comes to

16 localism, an example of how that type of

17 programming, that type of commitment to the

18 local community could be handled in larger

19 markets.

20 I understand competitive pressure certainly,

21 and I understand the cost constraints that have

22 to play into the operation of any broadcast

23 arrangement, whether it\'s a radio or television

24 or a combination AM/FM or TV/AM or whatever it

25 might be.

32

1 But there are broadcasters locally who do

2 care about the local community. Part of it, as

3 Commissioner Adelstein mentioned earlier, is

4 because they are here, they live in the

5 community. And I\'ve seen in the audience here

6 tonight several people who are involved in

7 ownership of broadcast outlets here in the

8 Rapid City area besides Mr. Duhamel. So they

9 are interested, they do the job.

10 And in Rapid City I think we can be an

11 example for how that localism can be inserted

12 well beyond the blood drives and the

13 fundraisers. Those are all important, and you

14 hear about that. And there are many examples of

15 how well that\'s done in the Rapid City

16 community.

17 But getting to deeper issues, whether it\'s

18 covering local elections, not just the outcome

19 but beforehand, spotlighting who the candidates

20 are, some of the issues, giving in-depth

21 information to voters, covering Native American

22 issues, and covering the whole gamut of keeping

23 people well-informed, especially in a relatively

24 sparsely populated state like South Dakota where

25 the communication industry, radio and

33

1 television, are especially important.

2 But I think you\'ll hear tonight from a lot

3 of people, there are challenges. Can we do a

4 better job? Yes, we can always do more. But I

5 think you\'ll also find that here in the Rapid

6 City area our broadcasters, yeah, they

7 understood what localism is about, and they are

8 trying their best to do a good job in that

9 regard, and with the suggestions they\'ll hear tonight

10 they\'ll probably continue to do more.

11 So again, on behalf of the City, we welcome

12 you. And on a personal note, I welcome you

13 here, too, tonight. I\'m anxious to hear the

14 discussion. Thank you for holding this hearing

15 in Rapid City.

16 COMMISSIONER ADELSTEIN: Thank you,

17 Mr. Mayor. We are in part here to try to

18 restore some of that fear so that broadcasters

19 know that we have the people mind at heart and

20 that we\'re lions in protection of the public

21 interest.

22 Yesterday we spent some time with Chairman

23 Michael Powell, our Chairman, and the Governor

24 of the state, Mike Rounds, talking about

25 broadband and its availability in rural parts

34

1 of the state, how wireless can get it there.

2 He really gets it when it comes to

3 technology and is a real leader in that field.

4 I\'m so honored that tonight we\'re joined by

5 Lieutenant Governor Dennis Daugaard, who\'s going

6 to offer us some opening remarks as well. Thank

7 you, Lieutenant Governor.

8 LIEUTENANT GOVERNOR DAUGAARD: Thank

9 you, Mr. Chairman. I\'d like to echo the Mayor\'s

10 remarks as he welcomed the Commissioners to

11 Rapid City and to South Dakota. Over the last

12 decade I\'ve gotten to know your father quite

13 well, Mr. Adelstein, and he\'s become a friend of

14 mine. In speaking with him earlier tonight, I

15 know he\'s very happy that you\'re here in

16 South Dakota. I know that your mom is very

17 happy that you\'re here in South Dakota. And

18 Commissioner Copps, I haven\'t talked to your mom

19 and dad yet. But I\'m sure if I did, they\'d be

20 glad you\'re in South Dakota just as I am.

21 Broadcasting impacts people more than we

22 sometimes realize. My wife is a school

23 librarian in Dell Rapids, South Dakota, a very

24 small town near Sioux Falls. And as one of her

25 duties she will read to a kindergarten class at

35

1 least once a week, oftentimes more than that.

2 And I happened to come upon her reading to

3 one such group of kindergartners one day, and

4 she was reading a book called, There Was an Old

5 Lady Who Swallowed a Fly. And I\'m sure many of

6 you have heard of that book.

7 And of course after she got done reading the

8 first page, she leaned over to her students who

9 were just rapt with attention and she whispered,

10 \"Do you think she\'ll die?\" And one little girl

11 raised her hand and said, \"No. I saw that last

12 night on Fear Factor. She won\'t die.\" So even

13 kindergartners it seems are impacted by

14 broadcasting, and broadcasting does impact

15 people.

16 South Dakota is a sparsely populated state.

17 And in that respect, many consider the entire

18 state to be local. And from that perspective,

19 I\'d like to say thank you to the broadcasters of

20 this state for their localism in supporting the

21 Governor last winter when all the local

22 broadcasters preempted about 30 minutes of air

23 time \-- and I don\'t know of any broadcaster who

24 did not \-- and aired 30 minutes of the Governor

25 talking about his vision for South Dakota for

36

1 the next six years. And if that isn\'t an

2 attention to local needs and local issues, I

3 don\'t know what is.

4 So from that perspective and from my role as

5 Lieutenant Governor and on behalf of the State,

6 I want to say thank you to those broadcasters,

7 to all the broadcasters who did that.

8 And just lastly I want to say thank you to

9 the FCC, to the Chairman who was here earlier

10 this week, to the two Commissioners,

11 Commissioners Adelstein and Copps, who are here

12 yet again tomorrow, and for the time you\'ve

13 spent in South Dakota. We\'re glad you\'re here.

14 We are glad you are giving your time and

15 interest to our needs and our concerns, and we

16 welcome you to South Dakota. Thank you.

17 COMMISSIONER ADELSTEIN: Thank you very

18 much. We did talk about the 2010 Initiative

19 yesterday because it involves a lot of our

20 jurisdiction at the FCC in terms of a vision for

21 having South Dakota covered with broadband

22 service and the latest, most advanced

23 technology.

24 I noted that as we did this forum that the

25 Governor and I, and Chairman Powell \--

37

1 Commissioner Copps hadn\'t yet arrived \-- had a

2 series of meetings with four different

3 television outlets. We went from camera to

4 camera to camera because each one of them wanted

5 to cover what it was we were talking about,

6 which is an issue of such concern for the future

7 economic development of the state. And that was

8 a good example of exactly what it is you\'re

9 talking about.

10 So we\'re now going to commence the panel.

11 I\'d like to turn to our secretary to announce

12 the hearing agenda. Madame Secretary.

13 SECRETARY DORTCH: Thank you, Commissioner

14 Adelstein, Commissioner Copps. Good evening to

15 you panelists, special guests, and citizens.

16 This evening\'s hearing will consist of two

17 segments separated by a break.

18 The first segment features panel

19 presentations by eight speakers. Each will have

20 four minutes to make opening remarks. We will

21 use a time machine located on the stage in front

22 of Commissioner Adelstein and color-coded cards

23 to maintain these time limits.

24 A yellow card and light will be displayed

25 when there is one minute remaining for

38

1 presentation, and each panelist should begin to

2 sum up at that time. A red card and light will

3 be displayed when a panelist\'s time has expired,

4 and each panelist must conclude his or her

5 remarks.

6 After all panelists have presented their

7 opening remarks, there will be a brief period

8 for the Commissioners to ask panelists questions

9 and for panelists to respond.

10 A 15-minute break will follow the

11 question-and-answer period. After the break we

12 will begin the second segment of the hearing.

13 Steve Hemmingsen will moderate that session and

14 will provide details about the format and

15 procedures after the break.

16 Finally, we would like to remind you to turn

17 off your cell phones and pagers. We will now

18 begin the first segment of the hearing, the

19 panel presentations.

20 In order of presentation, the panelists are:

21 Bill Duhamel, President of Duhamel Broadcasting,

22 Licensee of KOTA (ABC), Rapid City; Eleanor St.

23 John, Owner and Managing Partner, White Eagle

24 Partners, Licensee of KQEG UPN 23, La Crosse,

25 Wisconson; Park Owens, Director of Emergency

39

1 Management, Rapid City and Pennington County;

2 Alan Harris, President, Wagonwheel

3 Communications, Green River, Wyoming; Thomas

4 Short Bull, President, Oglala Lakota College,

5 Kyle, South Dakota; Maynard Meyer, President and

6 General Manager KLPQ FM, Madison, Minnesota; Tim

7 Sughrue, Chief Operating Officer, Rapid City

8 Regional Hospital; and Melanie Janis, General

9 Manager, KILI, Porcupine, South Dakota. Thank

10 you, Commissioner Adelstein.

11 COMMISSIONER ADELSTEIN: Thank you.

12 Just before we get started with our panel I

13 wanted to also note that we have here with us

14 representatives from Senator Daschle\'s office

15 and Senator Johnson\'s office, and they wanted

16 to, I believe, read a welcome greeting from them

17 as well.

18 My former colleague as one of Daschle\'s

19 staff, Ace Crawford, who I believe is here. Oh,

20 there\'s Ace. We used to work together in

21 Senator Daschle\'s office for many years, and

22 she\'s the West River Field Director for Senator

23 Daschle. Thank you for being here.

24 MS. CRAWFORD: Thank you, Jonathan.

25 As a former colleague, it is an honor for me to

40

1 be here tonight and address you not only as

2 Commissioner Adelstein but also Mr. Chairman.

3 As Jonathan mentioned, we worked together in

4 Senator Daschle\'s Washington, D.C. office for

5 seven years, and for a time Jonathan and I sat

6 across from each other, our cubicles were across

7 from each other. And I have several stories I

8 could share, and Jonathan should probably thank

9 me afterwards that I\'m not, so\...

10 COMMISSIONER ADELSTEIN: I\'ll remind

11 you I have a gavel here.

12 MS. CRAWFORD: But I can also attest

13 to the fact, I guess, more importantly what a

14 tireless and dedicated worker he is. And to

15 those of us that have worked with him, it\'s no

16 surprise that he received this appointment to

17 the FCC Commission. So welcome home, Jonathan.

18 Commissioner Copps, welcome to South Dakota.

19 To the rest of the distinguished members on the

20 panel, I do have the following remarks on behalf

21 of Senator Daschle. Commissioner, you do have a

22 full text of his prepared remarks. And after

23 you see them, I think you\'ll appreciate the fact

24 that I\'m delivering an abbreviated version of

25 those.

41

1 So I am pleased that the Federal

2 Communications Commission has chosen to come to

3 Rapid City for a field hearing of its Localism

4 Task Force. Localism is so important to rural

5 states like ours. I know Commissioner Adelstein

6 has made rural issues a priority for his work on

7 the Commission.

8 I recommended that the President name

9 Jonathan to the FCC in part because I knew his

10 presence would give rural America and

11 South Dakota a strong voice on the Commission.

12 I didn\'t know that it would lead to an FCC

13 hearing right here in Rapid City.

14 I\'m glad the Commissioners chose to come

15 here as part of their series of localism field

16 hearings and am pleased to welcome you to

17 South Dakota. Rapid City is the smallest and

18 most rural market in which the Commission is

19 holding a field hearing, and I think the

20 Commission has made an excellent choice.

21 There\'s a place and a need for national

22 programming. It can help create bonds of common

23 experience across the country, and national

24 operations will be able to devote more resources

25 to national and international news.

42

1 But residents of Rapid City and those of the

2 many small towns of South Dakota also need to be

3 able to find news, weather, and other

4 programming designed to meet local needs and

5 appeal to the local audience.

6 A programmer in New York simply won\'t

7 appreciate how important agricultural news or a

8 weather report can be to rural residents. I

9 applaud the FCC for acknowledging this need and

10 holding this important series of localism

11 hearings.

12 Localism is a central concern in the ongoing

13 debate over the changes that the FCC proposed

14 last year in its media ownership rules. I

15 strongly opposed the Commission\'s decision to

16 relax the rules and allow greater consolidation

17 of media ownership. A primary reason is the

18 relaxed rules and negative impact on localism.

19 Nevertheless, I am pleased that all the

20 Commissioners have stated their intent to

21 promote localism. The Commission will have to

22 revisit these rules at some point. Sooner, if

23 the courts overturn the new rules, or later as

24 part of its regular periodic review process. I

25 hope the input the Commissioners receive tonight

43

1 will be helpful in that process.

2 Local broadcasting has been under pressure

3 in recent years with consolidation increasing in

4 the industry as both regional and national

5 chains purchased independent television and

6 radio stations. The consolidation has been

7 particularly severe in radio.

8 The FCC recognizes development in the new

9 rules, which take a different track for radio

10 than for television. Radio is critically

11 important to rural states, where the large

12 distances and sparse population densities limit

13 the viability of broadcast television.

14 In many of South Dakota\'s counties, radio is

15 the only option for local broadcast news and

16 often the most effective way to warn of a local

17 danger.

18 One area I\'d like to note is the importance

19 of radio on Indian reservations. It\'s a

20 critical source of information and news for

21 Native Americans. National and regional

22 broadcasters are likely to ignore this audience

23 and programming targeted to them. Radio offers

24 native listeners news about their reservation

25 and cultural programming in English and in

44

1 native language.

2 While they are in South Dakota, the

3 Commissioners have scheduled several tribal

4 telecommunication events. I applaud this effort

5 to reach out to Indian country and want to

6 underscore the reservations offer a case study

7 why localism in broadcasting is so critical.

8 Tonight\'s hearing will help the

9 Commissioners in their ongoing evaluation of

10 what\'s happened in local radio over the past

11 decade. I hope they will also look at that

12 experience as a cautionary note about television

13 broadcasting as ownership continues to become

14 more concentrated in that medium as well.

15 I believe all the FCC Commissioners

16 recognize the importance of localism in

17 broadcasting. I look forward to reviewing what

18 they have to say and what they hear and learn

19 from the many South Dakotans who are here

20 tonight to share their experiences, concerns,

21 and views. Sincerely, Tom Daschle. Thank you,

22 Commissioner.

23 COMMISSIONER ADELSTEIN: Thank you,

24 Ace. The full letter will be made part of the

25 official record. We also have joining with us

45

1 tonight my other former Senate staff colleague.

2 I wasn\'t in the same office, but Darrell

3 Shoemaker, who is the West Field Director for

4 Senator Tim Johnson, is here. Thank you, Darrell,

5 for sharing words from Senator Johnson.

6 MR. SHOEMAKER: Commissioner Adelstein,

7 also on behalf of Senator Johnson I want to

8 welcome you back home. Obviously like Ace

9 indicated, from a staff perspective, obviously

10 we\'re overjoyed to have you where you are and

11 certainly have fond memories of working

12 alongside you on several different fronts.

13 On behalf of Senator Johnson I wanted to

14 welcome Commissioner Adelstein and Commissioner

15 Copps to Western South Dakota. We had hoped

16 that the full Commission could be here, and

17 we\'re certainly disappointed that Chairman

18 Powell was unable to stay with us for some very

19 unique testimony on some unique concerns, unique

20 issues affecting the providers, the consumers,

21 the residents of Western South Dakota and the

22 midwest region here.

23 I would like to present the following brief

24 remarks from Senator Tim Johnson for the record.

25 I want to thank you for your invitation to

46

1 attend tonight\'s meetings on the FCC Localism

2 Task Force. I regret that I am unable to attend

3 today, but I know you are in good hands with

4 Commissioner Jonathan Adelstein presiding over

5 the meeting.

6 I was pleased when Senator Daschle put

7 Jonathan\'s name forward for an appointment to

8 the FCC. It is so important we now have a

9 Commissioner who knows and understands the

10 unique telecommunication needs of rural America,

11 including South Dakota\'s Indian reservations.

12 I want to welcome Commissioner Copps and

13 members of the FCC staff also to South Dakota.

14 I hope you will have the opportunity to meet

15 with many of my constituents and will take what

16 you hear from them back to Washington when you

17 are considering communications policies that

18 have a real impact on South Dakotans.

19 Rural America offers unique challenges and

20 opportunities for communications policies, and I

21 appreciate the many individuals and groups from

22 the Black Hills in South Dakota that are

23 providing important insight and information

24 through their testimony this evening.

25 While I differed with the majority of the

47

1 Commission on its media ownership rules from

2 last year, I am pleased the Commissioners were

3 willing to come to the Heartland and hear from

4 the public including consumers, industries,

5 civic organizations, broadcasters and others on

6 the importance of localism in broadcasting.

7 I want to thank all of you for participating

8 in tonight\'s meeting. This is civic

9 participation at its very best. Best wishes.

10 Sincerely, Senator Tim Johnson. Thank you,

11 Commissioner.

12 COMMISSIONER ADELSTEIN: Thank you,

13 very much, Darrell. Thank you, Senator Johnson,

14 for that statement. Now to begin with our

15 panel. We\'ll start with our very own Bill

16 Duhamel.

17 MR. DUHAMEL: One clarification. I was

18 told we had five minutes in the written things

19 that I received rather than four. That caught

20 me.

21 COMMISSIONER ADELSTEIN: We\'ll spot you

22 a minute.

23 MR. DUHAMEL: Okay. This times out at

24 four and a half.

25 COMMISSIONER ADELSTEIN: Let\'s move the

48

1 thing back to five minutes.

2 MR. DUHAMEL: Okay. Good evening,

3 Commissioners, and once again, welcome to

4 Rapid City. I\'m the President of Duhamel

5 Broadcasting which operates KOTA TV and three

6 full-powered satellite TV stations.

7 Our stations define the Rapid City DMA. We

8 serve an area equivalent to that from

9 Washington, D.C. to Boston to Buffalo, but

10 which only includes about 90,000 television

11 households. We also operate four local radio

12 stations in the market.

13 Our company is all about local broadcasting.

14 In 1955, my mother built the first television

15 station in Western South Dakota and the second

16 station in the state. Today times are tough for

17 local broadcasting in medium and small markets

18 which face the challenges posed by declining

19 network compensation, increasing competition,

20 and the costs of the digital transition.

21 Another major challenge is DBS. We do not

22 have local into local service. Our experience

23 is similar to many TV stations in the West. We

24 have lost a large number of our viewers to

25 distant DBS signals. Since this is a hearing on

49

1 broadcasters\' local service, please keep in mind

2 that when DBS subscribers receive distant

3 network signals, we lose them as part of our

4 audience and they lose access to all of our

5 local service.

6 Let me turn to some of the other aspects of

7 our record. One of our foremost obligations is

8 to keep our viewers informed. Nearly 40 percent

9 of each weekday schedule on our TV stations is

10 devoted to news and public affairs. We carry

11 about two and a half hours each weekday of local

12 news and public affairs, including at noon a

13 full half-hour of public affairs interview

14 program. Making sure viewers are influenced or

15 informed about elections is also a key part of

16 our localism.

17 Duhamel Broadcasting has produced and

18 carried debates for every federal and every

19 gubernatorial race since at least 1968.

20 Tomorrow night we, along with KSFY in

21 Sioux Falls, will produce the sixth TV debate

22 between the candidates in the June 1st special

23 election for South Dakota\'s lone U.S. House

24 seat.

25 This year South Dakota passed legislation

50

1 that requires voters to present a photo ID at

2 the polls. One concern is that there are many

3 residents of the Indian reservations who do not

4 have a picture ID. We produced and are airing a

5 series of PSAs about the need for an ID in order

6 to vote.

7 One of the PSAs we run was produced by

8 Native Americans specifically to address voting

9 rights on the reservations.

10 In times of disasters, the importance of

11 local broadcasting is emphasized. The worst

12 disaster ever to befall Rapid City was the flash

13 flood of 1972 that killed 239 people. We were

14 commercial-free for at least a week and a half.

15 One of the biggest problems was locating

16 missing persons. We literally read thousands of

17 names on the air to help people determine

18 whether their loved ones were dead or alive.

19 More recently the Black Hills area has been

20 ravaged by forest fires. During the Deadwood

21 fire two years ago, two of our KDDX announcers

22 remained in Deadwood on the air after the cities

23 were evacuated.

24 Also in 19 \-- or 2002 a freight train

25 derailment spilled benzene near our Scottsbluff

51

1 TV station. A large area including our studio

2 was evacuated. But two of our employees stayed

3 behind to provide news to people in shelters.

4 Duhamel Broadcasting is active in helping

5 charities and other community groups. In 1985

6 we founded the KOTA Care and Share Food Drive

7 which has collected nearly six million pounds of

8 food. We\'ve partnered with the Boy Scouts to

9 deliver and collect food bags. The National Boy

10 Scouts have adopted this partnership throughout

11 the country.

12 The primary beneficiaries of the many

13 charities we assist are the economically

14 disadvantaged. Unfortunately, the reality is the

15 majority of our needs in our area are among the

16 Native American community. Duhamel Broadcasting

17 has succeeded by focusing on our community\'s

18 needs.

19 When I was on the Gore Commission, someone

20 commented, \"Bill, you were a good broadcaster.

21 We have to worry about all the others.\" I

22 disagree. I have come to know broadcasters both

23 here in South Dakota and across the nation. I

24 know there are outstanding local broadcasters in

25 every locality who serve their communities as we

52

1 do. It\'s good business for broadcasters and it

2 is the great tradition of American broadcasting.

3 Thank you for the opportunity to speak with you

4 tonight.

5 COMMISSIONER ADELSTEIN: Thank you,

6 Mr. Duhamel. Now we turn to Eleanor St. John

7 from KQEG TV in La Crosse, Wisconson.

8 MS. ST. JOHN: Thank you. Thank you,

9 Commissioner Adelstein and Commissioner Copps

10 and all of you from the FCC. I thank you so

11 much for giving me the opportunity to speak this

12 evening.

13 I\'m Eleanor St. John, Majority Owner and

14 General Manager of the Class A television

15 station KQEG-CA, LaCrescent, Minnesota. We\'re a

16 UPN affiliate serving the southern part of the

17 La Crosse-Eau Claire, Wisconsin DMA. And I

18 helped build this station from scratch in 1994.

19 I\'m currently building another station in

20 Chippewa Falls to serve the northern part of my

21 DMA. I own 51 percent of an FM station that I

22 operated for 13 years and sold in 2002.

23 The EEO initiatives made me aware of my

24 opportunities. I\'m an enrolled member of the

25 Winnebago Tribe, a member of the Eagle Clan.

53

1 I\'m involved in community affairs every day.

2 I not only manage my station but I also

3 personally host a half-hour daily public affairs

4 program, a public forum, if you will. I operate

5 cameras, I keep the books, I prepare the

6 station\'s program schedule. I\'ve also been a

7 member of the Board of Directors of the

8 Community Broadcasters Association since 1999.

9 CBA represents Class A and low-power

10 television stations. We don\'t have the

11 resources of the NAB, but we do our best to tell

12 our local stories to all those that will listen.

13 We are the FCC home of small businesses, of

14 women, minorities, and local service in the

15 broadcast industry. We hire people locally in

16 our hometowns, and we serve our hometowns.

17 Class A stations are the only broadcast

18 stations of any kind that have a legal

19 requirement to broadcast local programming. We

20 are required by statute to broadcast three hours

21 a week. That\'s quite a job, but I love it. I\'m

22 up for that challenge. Our own community

23 involvement helps us keep in touch with local

24 issues and to carry what my viewers truly want

25 to see, like high school sports and real area

54

1 community events.

2 It\'s great that the FCC is increasing its

3 recognition of the value of local programming in

4 a media world that keeps consolidating and

5 centralizing. Maybe Class A and LPTV stations

6 are running counter to today\'s trend, but we

7 think we\'re the ones that are doing a real job

8 of communicating with our communities.

9 There are some things though that you can do

10 to help make it easier for Class A stations to

11 provide local service. We have to keep a main

12 studio in our service area, and that\'s good to

13 provide a point of contact to the public. But

14 we\'re overburdened when we have to comply with

15 the full power rule that our main studio be

16 staffed by two persons during all regular

17 business hours including a manager.

18 Class A stations are small economic units

19 where it\'s wasteful for any staff member not to

20 be active all the time whenever that person is

21 needed. And it should be okay for the manager

22 to be on call and be able to come to the studio

23 within an hour or two because we\'re working out

24 there, too. We don\'t try to bar the doors to

25 the public, but we do have to limit the staff

55

1 and make them more efficient.

2 It also doesn\'t make good sense to say that

3 programming is local only if it\'s produced

4 within our Grade B contour. Our DMA is our

5 economic area of interest, and it\'s bigger than

6 the Grade B contour. We should get credit for

7 programming produced elsewhere, especially if

8 the subject is really local, like interviewing

9 our Congressmen in Washington or if the subject

10 is really something pertinent to the community,

11 relevant to the community, like an away sports

12 game that we bring back to the home team

13 audience. We need to be able to count it all as

14 local.

15 It would also be helpful if the three-hour

16 weekly local programming requirement could be

17 averaged over a month so that we don\'t have to

18 provide filler local material just to meet the

19 law.

20 Thank you for listening to me. I\'m proud of

21 my station and its community service. Class A

22 LPTV stations don\'t get a whole lot of attention

23 in Washington circles, but we\'re here everywhere

24 throughout the country doing our local thing and

25 trying to make a difference.

56

1 We welcome your support to help do the best

2 job we can. We are the FCC\'s true local

3 connection. I would say (speaking in native

4 language). In my language that means thank you.

5 I have challenged my staff to be more

6 involved in the community through affiliations

7 and associations more than just a lunch or a

8 breakfast meeting. And in a local experience

9 that I had in preparing to come on this trip, I

10 went to the bank to get some money and ran into

11 some of those identity theft things, so that was

12 a new topic for the show. Thank you so much.

13 COMMISSIONER ADELSTEIN: Thank you.

14 Next we\'ll hear from Park Owens, Director of

15 Emergency Management here in Rapid City and

16 Pennington County.

17 MR. OWENS: Thank you, Commissioner

18 Adelstein. We in emergency management have a

19 little different perspective to localism. We

20 deal in two commodities. We deal in regular

21 information for upcoming events and

22 preparedness. We also deal in emergency public

23 information. It absolutely positively has to be

24 there, not overnight, but right now. And that\'s

25 the support that we receive.

57

1 In our routine information, the broadcasters

2 here in our area from an emergency management

3 perspective, have been very, very supportive.

4 They support our initiatives in severe weather

5 campaigns.

6 In fact, there\'s an ongoing one right now,

7 the West Nile Virus Preparedness campaign. Each

8 broadcast outlet has received both radio and TV

9 spots. I haven\'t heard them run yet, but I\'m

10 sure they\'ll go back and find those and they\'ll

11 support the West Nile Virus campaign also.

12 They\'ve also made their studios available to

13 us in emergency management to record PSAs and

14 help us distribute them to their other outlets

15 in town.

16 The local broadcasters interview emergency

17 management staff. As I look out tonight, I see

18 shooters, I see reporters, I see news directors,

19 I see engineers. I see my partners, and that\'s

20 how we look at it. It\'s a collaborative

21 process. It\'s a partnership. We cooperate for

22 the local good.

23 When we have emergency public information,

24 they know, no kidding, this is important, it

25 goes on right now. How do we do that? We\'ve

58

1 worked with the broadcasters to establish

2 several systems to get that information to them

3 when they need it, group e-mail, group fax,

4 meetings, visits. Let them see who we are

5 before you-know-what hits the fan, before we

6 actually have a need for emergency public

7 information.

8 The local broadcasters know they can call

9 our office also. We\'ll make every effort to

10 accommodate their questions, their requests for

11 an interview. We\'ve been in their studios,

12 we\'ve been on their programs. They\'ve been in

13 the offices, we\'ve been on the creeks for flash

14 floods, we\'ve been outside with them.

15 My background in broadcasting journalism

16 makes me less reluctant to talk to the media

17 than many of my fellow responders might in local

18 government. But probably one of the proudest

19 initiatives, the initiatives that we\'re proud of

20 is our ability here in Rapid City, Pennington

21 County, the only one of its kind in the entire

22 state of South Dakota, is that we can originate

23 EAS message traffic.

24 Let me say that again. That\'s normally

25 someone else\'s province, but we can originate.

59

1 Actually the broadcasters are allowing us to

2 take back those public airwaves momentarily. We

3 don\'t abuse that privilege because advertising

4 dollars and their programming is at stake, too.

5 But that initiative was brought forward by,

6 to be perfectly honest, a collaboration by Mayor

7 Shaw with Monty Loos, who has since retired from

8 KOTA, with Bill\'s support.

9 Because they bought the equipment to allow

10 them to receive our message from the Emergency

11 Operations Center. So when we program a message

12 either for a live broadcast or for playback it

13 takes those airwaves just like the National

14 Weather Service does on the radio or on the EAS.

15 I see our \-- my favorite programmer is in

16 the \-- I\'m not a rocket scientist, by the way,

17 if that \-- anybody is ever worried about that.

18 But I see my favorite programmer, Gary, sitting

19 in the audience.

20 We also have broadcast outlets that have

21 made their engineers available to us to help in

22 programming the equipment. We\'re also the

23 backup to the National Weather Service. We have

24 all of their weather events programmed in the

25 Emergency Alert System.

60

1 But what made this all possible was phone

2 access equipment. I can call up the equipment

3 from the Mayor\'s office if we need to put out a

4 civil emergency message.

5 So what does it all come down to in our

6 market right here in Rapid City and Pennington

7 County is that the broadcasters do in fact

8 support the emergency managers in this area,

9 particularly always with emergency public

10 information and every time they can with routine

11 preparedness type information. Thank you very

12 much.

13 COMMISSIONER ADELSTEIN: Next we\'ll

14 hear from Alan Harris, who\'s the president of an

15 AM station in Green River, Wyoming.

16 MR. HARRIS: Thank you. Four or five?

17 COMMISSIONER ADELSTEIN: Five, right.

18 Give you five minutes.

19 MR. HARRIS: Good evening,

20 Commissioners. I am a life-long broadcaster

21 from Wyoming. My wife and I own and operate

22 three radio stations in Sweetwater County, two

23 FMs and an AM. Sweetwater County is

24 geographically slightly larger than New Jersey.

25 We have a population of about 42,000. In

61

1 addition to operating our company, The Radio

2 Network, I\'m a member of the Radio Board of the

3 National Association of Broadcasters.

4 Before getting into the specifics of our

5 station\'s service to the community I\'d like to

6 address the issue of localism in broader terms.

7 Radio programming presents the same challenges

8 and opportunities regardless of market size or

9 the operator. The coverage of our signals

10 define who we can serve. And in a world of

11 countless sources for entertainment and

12 information, we\'re required to attract an

13 audience from that local community.

14 Now, that means we have to offer a

15 compelling reason for a local listener to listen

16 to a local station. We\'re required by law to

17 broadcast in the public interest, but we are

18 required by an even higher authority, our local

19 listeners, to broadcast in their interest.

20 The truth is, we serve at the pleasure of

21 the people in our market and under the constant

22 threat that if they are not pleased, we are

23 silenced at the flick of a switch. And in that

24 light you can be assured that radio is and

25 always will be a local medium, with service to

62

1 local communities at its core, or we shall

2 surely perish.

3 That said, I do believe broadcasters are

4 pretty special people because of this very

5 intimate connection with their communities.

6 We\'re professional communicators, but perhaps we

7 haven\'t spent enough effort communicating on our

8 own behalf, and consequently have poorly told

9 you what we do.

10 So let me begin to tell you about who we are

11 at The Radio Network by sharing an announcement

12 that we recently aired. I was recently asked,

13 What is The Radio Network? The simple answer is

14 three radio stations. However, The Radio

15 Network is much more. The Radio Network is a

16 volunteer firefighter, a school board member, a

17 member of Cowboys Against Cancer, a church

18 leader, a hospital board member, a Little League

19 coach, a member of the Chamber, National

20 Association of Broadcasters board member, bank

21 board member, water board member, Junior

22 National Babe Ruth baseball, committee member of

23 Ducks Unlimited, the Rocky Mountain Elk

24 Foundation, Mule Deer Foundation, United Way,

25 Relay for Life, a fair board member, youth

63

1 basketball coach, member of the Sportscasters

2 and Sportswriters Association.

3 You see, we at The Radio Network are more

4 than just three radio stations. We\'re part of

5 the community, and we take pride in our resume\'.

6 Thanks for listening and thanks for letting us

7 be a part of your community.

8 Now, there was more, but that\'s all we could

9 get into 60 seconds, and that\'s the local

10 involvement of just 12 people, our entire staff.

11 Let me talk about what we do on the air. We

12 broadcast 72 local newscasts every week. We air

13 41 sportscasts. We have a daily public affairs

14 interview program. We ask every candidate in

15 every election to be a guest on that program and

16 share their views on the issues. We provide

17 live coverage from the county courthouse for

18 election returns.

19 Since 1976 we have aired six hours every

20 week of Spanish language programming. It\'s the

21 only local source of Hispanic programming in the

22 area. We provide live play-by-play coverage of

23 all high school football and basketball games.

24 We cover wrestling matches. We have

25 play-by-play coverage on the Little League game

64

1 of the week.

2 On Saturday mornings we air the Sean Maxwell

3 show, a local show providing an opportunity for

4 local artists to perform on the air. Two guests

5 each week showcase their talents. And like most

6 stations, we provide road and travel

7 information, announce school closings and

8 meeting cancellations due to the weather.

9 Now what is unusual is that we also

10 interrupt our programming every time the fire

11 department is summoned. Volunteers know to

12 listen to our station to find out where the fire

13 is.

14 We aid organizations in our community.

15 After 9/11 we teamed with the Green River Fire

16 Department to raise money for victims\' families

17 and in just two days collected over \$9,000 in a

18 community with just over 11,000 people.

19 Nine years ago The Radio Network launched

20 our Coats for Kids campaign. We\'ve been able to

21 purchase over a thousand new coats with the

22 money contributed by local residents and by our

23 radio stations to Coats for Kids.

24 In an average week last year we aired 120

25 PSAs, 75 percent of which were about local

65

1 issues. The topics covered, alcohol abuse,

2 domestic violence, smoking, drug use, hunger,

3 breast cancer.

4 Commissioners, this gives you a flavor of

5 our local service. We are part and parcel of

6 our community, and this kind of involvement is

7 what hometown radio is all about. And little,

8 if any, of this is required by law or FCC rules.

9 It\'s what our listeners require. It\'s what we

10 do in Green River. It\'s what local broadcasters

11 do all across this country. Thank you for your

12 attention. Be pleased to answer any questions.

13 COMMISSIONER ADELSTEIN: Thank you, Mr.

14 Harris. Next we turn to Thomas Short Bull, the

15 President of Oglala Lakota College in Kyle.

16 MR. SHORTBULL: Commissioner Adelstein

17 and Commissioner Copps, I want to first thank

18 you for the opportunity to make remarks on

19 behalf of Indian people in this state. I want

20 to talk to you about the obligation that I feel

21 that the broadcast media has to minorities in

22 this country. And I think one of the most

23 important obligations that the broadcast media

24 has is to improve the image of Indian people to

25 counter the false and negative stereotypes that

66

1 by and large exist in our non-Indian community.

2 In talking about positive role models, I

3 want to give you the story about when Korczak

4 Ziolkowski was asked to build the monument in

5 the Black Hills. And the tribal elder came to

6 him and said, \"You know, your heroes are not our

7 heroes.\"

8 And the thing that we\'ve got to have as

9 Indian people is not just heroes from the past,

10 but also contemporary heroes. And who knows

11 about those contemporary people that are doing

12 good work in the Indian community? Who\'s going

13 to tell that to our young Indian people unless

14 the broadcast media does more of that for us as

15 Indian people.

16 And I think the concern that I have and many

17 of us as Indian people have is that the

18 broadcast media is concerned too much with

19 reporting the negative aspects that occur among

20 our people. The reports about sensationalized

21 crimes that occur in the city of Rapid City,

22 rather than reporting on the hard work that are

23 done by Indian people in this community and on

24 our reservations.

25 I\'d like to give you some examples. Who

67

1 knows of Evelyna Murphy who\'s a nurse

2 practitioner at the Sioux San Hospital, and the

3 other nurses that work there? Who gets \-- how

4 do people get to know them? How do people get

5 to know about our Indian teachers on the

6 reservation, our Indian college instructors, our

7 tribal program directors on the reservation.

8 You know, who are going to be our positive

9 role models unless the broadcast media reports

10 more about this rather than reporting on the

11 sensationalized crimes that occur among Indian

12 people.

13 The other issue as I see it is the negative

14 perception that the non-Indian community has

15 about Indians. That the most common perception

16 is that, \"Indians are drunks and

17 good-for-nothing people.\" This perception is

18 reinforced when the only time they see Indians

19 is when they see drunks on the streets or

20 sleeping or passed out in the city parks.

21 Although the number of Indian people who are

22 inebriated are only a small percentage of the

23 total Indian population, many of the non-Indian

24 people nonetheless believe that all Indian

25 people are like this.

68

1 The other problem is that when much of the

2 news reports are about crimes committed by

3 Indian people, this also reinforces the negative

4 perception about Indian people.

5 Again, I say that there are a number of us

6 that complain about the over reporting of bad

7 news about Indians and not enough about the

8 positive news. As a result of this situation,

9 much of the non-Indian population is unaware

10 that there are many hardworking and respected

11 Indian people in Rapid City and on our

12 surrounding Indian reservations.

13 When there are positive stories on the

14 reservation, there has been a reluctance on the

15 part of the broadcast media to come to our

16 reservation because it just takes too much of

17 the day to come out to the reservation.

18 On numerous occasions I\'ve had directors at

19 television stations say, \"Well, we\'d go down to

20 the reservation but by the time we get back, we

21 can\'t report on other things.\"

22 An example of this is that Oglala Lakota

23 College has annually sent out a press release on

24 its graduation. I know of only one time that

25 the broadcast media came down to cover our

69

1 graduation. Oglala Lakota College has been much

2 more successful when it has had press

3 conferences in Rapid City. And I want to thank

4 the broadcast media for this coverage.

5 In closing I want to say as a means of

6 portraying a more positive image of Indian

7 people, I would like to suggest to the broadcast

8 media and to the print media that once a week

9 there be a series, held weekly, that would

10 highlight individual Indian people who are

11 hardworking and respected Indian people.

12 This series would go a long ways in helping

13 to improve the image of Indian people and also

14 producing positive role models for our young

15 people. Thank you.

16 COMMISSIONER ADELSTEIN: Next we have

17 Maynard Meyer, the President and General Manager

18 of an FM station in Madison, Minnesota.

19 MR. MEYER: Thank you. We\'re almost in

20 South Dakota. It\'s 15 miles across the border

21 into southwest Minnesota. Localism in radio I

22 don\'t think is dead, but it\'s in dire need of

23 resuscitation in many areas. Before I talk

24 about what I believe went wrong and what can be

25 done to restore some semblance of localism, I\'d

70

1 like to tell you a little bit about my

2 experience in local radio.

3 I have been involved in announcing, sales,

4 engineering, and management for about 36 years,

5 now followed by experience in communities of

6 5,000 people or less. At the present time I\'m

7 the President, General Manager, and co-owner of

8 KLQP FM radio, a 25,000-watt station in Madison,

9 Minnesota, population 1,767.

10 A boyhood friend and I put the station on

11 the air in 1983, and we reached a potential

12 audience of 30,000 people in about a five-county

13 area. We\'re on the air 24 hours a day with

14 staff of three full-time people, including my

15 partner, myself, and about six part-time people.

16 We\'re an independently owned mom-and-pop radio

17 station.

18 If you listen to Q-92, as it\'s called,

19 you\'ll hear six local newscasts daily, all of

20 which include the local obituaries. If you lose

21 your dog, your cat, or car keys, you can give us

22 a call. We\'ll put it on and help you find them.

23 If you\'re having a bake sale, bridal shower, or

24 a meeting of your organization, we\'ll put it on

25 the air for you.

71

1 Once or twice a week you\'ll hear a broadcast

2 of local high school sporting events. If you\'ve

3 found something in your attic you\'d like to buy

4 or sell, we\'ll put it on our \"Rummage Report\"

5 free. If you are the local police chief or

6 public health nurse, you have something

7 important to say, come on in, we\'ll put you on

8 the air right away in short order. No

9 appointment needed.

10 Last year we helped the local veterans

11 organization raise several thousand dollars

12 during a very emotional on-the-air phonathon in

13 which Veterans appeared live on the radio, told

14 their experiences about the various wars and

15 conflicts. And many of them hadn\'t talked about

16 these experiences before.

17 That, ladies and gentlemen, is local radio

18 as I think local radio is meant to be. We run a

19 completely accessible station which has become

20 the heart and soul of the area when it comes to

21 daily local media service. We have no daily

22 newspapers. We work and personally live in the

23 community we serve, so we know the issues, we

24 address them in our programming and we\'ve done

25 that for the past 21 years.

72

1 A few years ago many stations operated that

2 way, but much of that has changed for what I

3 think are a variety of reasons. I think the

4 beginning of the end of local broadcast service

5 became \-- it was about the 1980s when the FCC

6 approved Docket 80-90 which reduced the

7 separation between stations and mileage and

8 allowed for the creation of hundreds of new FM

9 stations across the country.

10 The intent was to open up several new local

11 radio markets and that was, in turn, supposed to

12 increase local service to communities. In

13 theory, not a bad idea. But the Commission also

14 relaxed the rules regarding operation from

15 within a station\'s actual city of license. As a

16 result, many small communities were assigned

17 frequencies, licenses were granted, but the

18 residents of those communities don\'t even know

19 they have radio stations.

20 On paper, Paynesville, Minnesota has a

21 station. All programming originates from St.

22 Cloud, 30 miles away. Clear Lake, South Dakota

23 has a radio station and license. All

24 programming originates from Brookings, 34 miles

25 away.

73

1 I helped some people in Pelican Rapids put a

2 station on a few years ago. Once they had a

3 studio. It\'s been sold and all programming now

4 originates from Detroit Lakes, 20 miles away.

5 The people in these communities don\'t even know

6 they have a station.

7 I don\'t think that\'s the best way to promote

8 local radio service. What I\'ve seen from my

9 personal experience, as soon as a hometown

10 studio is closed and relocated, the local

11 service is relocated as well.

12 Some of my counterparts argue that

13 centralization allows for increased efficiency

14 and the ability to provide better local service,

15 but I haven\'t seen that happen. Generally

16 centralization is for the purpose of saving a

17 buck or two with little of those savings being

18 reinvested in local service.

19 I\'d like to see changes in the main studio

20 rule, requiring at least some minimal program

21 origination from the city of license. I think

22 there should be a requirement for a physical

23 presence in the form of an actual studio or

24 office in the city of license and at least a minimal

25 staff with predictable office hours.

74

1 The Commission believes that formalized

2 procedures to ascertain community needs are

3 unduly burdensome and unnecessary, and I

4 disagree. When we worked on the license

5 application for our station, we were required to

6 conduct an ascertainment of the community needs

7 by personally interviewing representatives from

8 city government, service organizations, youth

9 groups, religious organizations and others.

10 This was a very rewarding experience and

11 allowed us to get a real handle on the type of

12 community service that\'s really needed out

13 there. Perhaps this could replace the \"Issues

14 and Programs List\" requirement and could be done

15 every couple years. That way we could be sure

16 the licensee has actually set foot in the city

17 of license. I\'m not so sure some licensees

18 these days can even find that city, let alone

19 know what its needs are.

20 Finally, the system of auctioning off

21 frequencies to the highest bidder must come to

22 an end. Since when did the applicant with the

23 deepest pockets become the most suitable

24 applicant for serving the public interest.

25 If that system had been in place 21 years

75

1 ago, our station, KLQP-FM would not exist today

2 because we would never have been able to compete

3 monetarily. However, I have no doubt that we

4 were and still are the applicants best able to

5 serve the public. Some form of comparative

6 hearings for determining applicants needs to be

7 restored. Thanks for the opportunity to

8 participate in the hearings, and I look forward to

9 future discussions on the topic.

10 COMMISSIONER ADELSTEIN: Thank you,

11 Maynard. Next, we hear from Tim Sughrue, who\'s the

12 Chief Operating Officer of the Rapid City

13 Regional Hospital.

14 MR. SUGHRUE: Commissioners,

15 distinguished guests, members of the press,

16 citizens of Rapid City and South Dakota and

17 surrounding states. My name is Tim Sughrue.

18 I\'m the Chief Operating Officer for Rapid City

19 Regional Hospital. I welcome the opportunity to

20 share with you my thoughts concerning the

21 Federal Communications Commission's role in

22 preserving localism in broadcasting.

23 By way of reference, Rapid City Regional

24 Hospital is a not-for-profit, community-based

25 organization committed to preserving and

76

1 strengthening health care for people in this

2 region. The organization is led by a board of

3 trustees who serves without commission \--

4 without compensation.

5 The hospital has grown to a network of

6 communities within a 250-mile radius of

7 Rapid City, which includes more than 40 health

8 care facilities in western South Dakota, eastern

9 Wyoming, and northern Nebraska.

10 In Western South Dakota we\'re fortunate to

11 have three local television stations and

12 numerous radio stations. Local ownership has,

13 in my opinion, fostered a true commitment to the

14 community. In Rapid City there is an emphasis

15 on localizing health care news.

16 The Regional Hospital family of health care

17 facilities has had a positive experience with

18 the local news media. When we call the

19 broadcast media to attend our news conferences

20 they usually make concerted attempts to attend

21 such events.

22 When we send them news releases about

23 pressing health care issues or new technology at

24 our facilities they tend to report on such

25 subjects. Overall it is my assessment localism

77

1 is still alive in Rapid City and in our region.

2 Our stations should be commended for their

3 commitment to the community.

4 There are, however, concerns about the

5 trajectory of the broadcast industry. The

6 fulcrum of which broadcasting localism turns

7 seems to be a complex confluence of competing

8 needs and interests.

9 The fundamental issues appear to be control

10 of a scarce and potentially profitable resource;

11 concentration of media ownership in various

12 markets; inelasticity of supply; economic

13 efficiencies; barriers to entry; redistributive

14 effects; and an informed citizenry and public

15 good.

16 Time does not permit a full discussion of

17 all of these core issues. What can be said,

18 however, is that economic efficiency in

19 production requires station managers and owners

20 and media conglomerates to use knowledge of

21 managerial productivity of their inputs to

22 produce outputs at a minimal cost.

23 Cost minimization in itself is desirable

24 both for the producer and the consumer. Cost

25 minimization and profit maximization behavior

78

1 predicts the electronic media will increase

2 their prices if demand increases or becomes more

3 inelastic or if the prices of their input

4 increases. It would seem the price of input has

5 become less as media outlets, particularly radio

6 stations for economic efficiency, increasingly

7 rely on a more standardized information. This

8 increase in economic efficiency could be at the

9 expense of localism.

10 Furthermore, with barriers of entry

11 established by the licensing process, increasing

12 market concentration and program control, there

13 is the prospect of increasing advertisement

14 costs, which are ultimately borne by the consumer

15 and do not necessarily reflect the cost of

16 production with a reasonable profit margin.

17 There is also the distinct possibility of

18 demand creation whereby media conglomerates have

19 a financial stake in influencing many aspects of

20 the entertainment industry. The issue of

21 redistributive effects could also be detrimental

22 to a community or region\'s wealth because local

23 radio stations and television stations impact

24 upon their local economies.

25 The counter argument to these concerns is

79

1 the degree of substitute available to consumers.

2 Which is to say, the ultimate success of a

3 broadcaster hinges on the ability of the media

4 outlet to attract and retain market share. It

5 is for this reason that broadcasters must

6 carefully calculate the value of economic

7 efficiency versus risk of abandoning or

8 minimizing local coverage.

9 In conclusion, the broadcast industry is

10 more than a marketplace commodity. While

11 meeting specific economic goals, it is hoped

12 that all radio and television stations remain

13 dedicated to addressing local issues with the

14 intent of maintaining an informed citizenry that

15 can actively participate in establishing public

16 policy and societal objectives. Thank you.

17 COMMISSIONER ADELSTEIN: For our final

18 witness, Melanie Janis from KILI radio could not

19 make it, but we are very fortunate to have with

20 us Tom Casey, who\'s the program director at KILI

21 Radio. Thank you for coming.

22 MR. CASEY: Thank you very much. I

23 thank you very much, Commissioners, for

24 coming to Rapid City. We welcome you to Western

25 South Dakota. My name is Tom Casey. I\'m a

80

1 single parent with three children. I\'ve lived

2 on Pine Ridge Reservation since 1970.

3 In February of 1985 I had the opportunity to

4 start a radio show, On the Road with Oglala

5 Lakota College. It aired Sunday nights from

6 8:00 to midnight. In addition to the weekly

7 show, I became a volunteer at KILI doing

8 interviews, covering elections, broadcasting

9 sports events. And in 1989 I became a full-time

10 employee of KILI after working at Oglala Lakota

11 College for 14 years.

12 Over the last 15 years I\'ve worked at KILI

13 serving in different times as development

14 director, station manager, DJ, sports

15 broadcaster, business manager, and all-around

16 utility.

17 This past February, KILI radio celebrated

18 their 21st anniversary. That anniversary marked

19 its 21 years as the voice of the Lakota Nation.

20 KILI is an independent 100,000-watt FM public

21 noncommercial radio station located on Porcupine

22 Butte on Pine Ridge Reservation.

23 The station is really a community radio

24 station with the community spread over

25 Pine Ridge, Rosebud, Cheyenne River Reservation,

81

1 the panhandle of Nebraska, the Southern Black

2 Hills, and Rapid City, the second largest city

3 in South Dakota.

4 KILI\'s community is roughly made up of about

5 150,000 people spread out over 30,000 square

6 miles in western South Dakota and northwestern

7 Nebraska. KILI\'s programming includes news and

8 information, cultural celebrations, sports,

9 public affairs, and a variety of music programs

10 including traditional Lakota, other tribal

11 music, Indian contemporary, country, rock, blues

12 and jazz, and some hip-hop and rap.

13 A group of community people and members of

14 the American Indian Movement came together in

15 the fall of 1979 to work on the lack of

16 communication on Pine Ridge Reservation.

17 Pine Ridge was 100 miles by 50 miles. There was

18 no local newspaper covering this area as their

19 community. There was no radio station or

20 television station covering Pine Ridge as their

21 community.

22 The people came together. It took three and

23 a half years, but the result was an independent

24 FM radio station broadcasting 18 hours a day,

25 seven days a week.

82

1 No one took this group seriously. Not at all.

2 No one really thought that they could get it

3 done. And in fact, the tribal official advised,

4 maybe you ought to work on something like a gas

5 station, not a radio station.

6 When the reservation was first established

7 in the late 1800s, there was a concerted effort

8 to assimilate Lakota people into the mainstream

9 of American society as rapidly as possible. The

10 federal government, working in conjunction with

11 schools and churches, worked to basically

12 eradicate the Lakota language.

13 In 1983 when KILI radio first went on the

14 air, the first DJ, Calvin Two Lance spoke in

15 both the Lakota language and in English. It was

16 historic. It was monumental. It was beautiful.

17 KILI has continued to celebrate the Lakota

18 culture each day through language, music,

19 stories and history of the Lakota people. KILI

20 promotes itself as a voice of the Lakota Nation.

21 That voice though is made up of a thousand

22 voices that have gone on the radio over the past

23 21 years.

24 KILI is staffed by five full-time employees

25 and 15 to 25 volunteers from the community who

83

1 help with programming and add their voices to

2 the mix. Other voices include the elderly who

3 come on each week for the Gray Eagle show, high

4 school students from four local high schools who

5 do weekly shows, and the men and women who do

6 weekly shows on parenting, health education,

7 treaty rights, land and water issues, children,

8 traditional government, alcohol and drug abuse,

9 education, diabetes, youth opportunities,

10 domestic violence, Lakota language, and

11 business.

12 KILI, in trying to meet the needs of the

13 community, does a variety of public affairs

14 programming including live broadcasts of the

15 Oglala Sioux Tribal Council meetings, public

16 meetings on treaty rights, social issues, land

17 and water issues, and a variety of public field

18 hearings, including tonight. This hearing of the

19 Federal Communications Commission is being

20 broadcast live on KILI radio 88.3 here in

21 Rapid City and 90.1 FM across Pine Ridge

22 Reservation and our other broadcast areas. I

23 guess my time is up.

24 KILI is one of 30 native stations across

25 this country that struggle for enough resources.

84

1 There are only three community radio stations in

2 South Dakota, just three: One on Pine Ridge,

3 one on Standing Rock, and one on Rosebud.

4 Why are there only three community radio

5 stations and where is there such a struggle for

6 community stations to rub two nickels together

7 every week to keep going, keep broadcasting,

8 keep trained personnel, and stay on the air.

9 I thank you very much for your time. It is

10 really good to be here.

11 COMMISSIONER ADELSTEIN: Well, thank

12 you all. This has been an excellent, excellent

13 panel. One of the issues in the FCC that we\'ve

14 struggled with so much this last year has been

15 the media ownership rules, whether or not we

16 should allow additional concentration of

17 ownership.

18 One of the questions I\'ve always had is what

19 effect would that have on smaller communities

20 like Rapid City. What would be the effect on

21 localism? There\'s arguments on both sides

22 whether or not it would or wouldn\'t affect

23 localism. But what\'s so interesting about a lot

24 of panelists that we heard from today is that

25 you are owners who live in the communities you

85

1 serve to a person.

2 The question I have for you, if you could

3 just answer briefly, would be \-- and to all the

4 broadcasters and the others who can comment on

5 what their impression would be, do you think if

6 your broadcast outlets were sold off to a major

7 national media conglomerate from far away, out

8 of the state, do you think there would be the

9 same level of localism, the same level of

10 commitment to issues that you have? And to

11 those of you who are \-- who are also talking

12 about whether or not your issues are getting

13 covered, and to the extent they are, whether

14 they would be covered as well or not as well as

15 they are being covered today.

16 MS. ST. JOHN: No, I don\'t think so.

17 Because when I sold my FM station, I was \--

18 there was several larger media groups that came

19 after me and were continually offering, making

20 offers and so.

21 And I ended up selling it to a smaller group

22 locally owned in my market that did promise to

23 maintain the level of localism that I had

24 achieved and set the mark for.

25 Because I was one of those 80-90 Dockets. I

86

1 was a female, minority, Native American. And I

2 acquired a license as they were being given out

3 for that purpose, to allow minorities to enter

4 broadcasting. And I \-- so I acquired one.

5 And in three years \-- in three months, first

6 of all, I was in the black. I was able to

7 outprogram my competitors who had been in it for

8 years. Then three years later I was recognized

9 as the only station still in the La Crosse

10 market that acquired a National Association of

11 Broadcasters Crystal Award for localism. And I

12 could have done it sooner but I wanted to get

13 all the proper documentation.

14 COMMISSIONER ADELSTEIN: Bill?

15 MR. DUHAMEL: Jonathan, I believe that

16 we have examples right here in South Dakota of

17 broadcast stations that are owned by out of

18 state. KELO, Mark Antonitis is here. KELO has

19 always been owned, majority owned even when

20 MidContinent owned it was owned in Minnesota.

21 Right now it\'s Young Broadcasting out of New

22 York.

23 The president of Young Broadcasting grew up

24 in Brookings. Mark Antonitis is here, and

25 hopefully he\'ll have an opportunity to comment.

87

1 But he\'s lived in the community, he\'s deeply

2 involved in the community. KEVN, Cindy McNeill

3 is here. She grew up in Sioux Falls. She\'s the

4 manager. That\'s owned out of California.

5 So I mean, I don\'t think the ownership is

6 the question. It\'s whether they have management

7 that are in the community, involved in the

8 community on a daily basis. And there\'s

9 examples right here in South Dakota.

10 MR. MEYER: I agree. I\'ve seen it go

11 both ways, and stations that have been sold in

12 our area, there are some that have been

13 purchased and they\'re run totally outside the

14 community with no local management. Ones that

15 have left the local management, local people in

16 place, left the local people running it are

17 still fine even though they are owned by someone

18 else. But it can go either way, depending on

19 the road they choose to travel.

20 MR. DUHAMEL: That\'s true.

21 MR. HARRIS: Commissioner, if you\'re

22 asking me whether somebody else can come into my

23 community and do a better job than me? Of

24 course not. Seriously. The folks sitting out

25 there are the ones that make the decision. It\'s

88

1 not where the owner happens to be from.

2 And if an absentee owner came into our

3 community and didn\'t provide the service to that

4 community, those people there, with their nods

5 and their ears would see to it that they fail.

6 If they come in there and do the localism job

7 they are supposed to do, they are going to be as

8 successful as the local stations in providing

9 what they are supposed to.

10 I\'m not sure that I need to make that

11 decision because these are the people I serve.

12 I\'m not sure that anybody else needs to make the

13 decision, because obviously these are the people

14 you serve. I think these folks are very good at

15 deciding who stays and who goes based on the

16 kind of service they get.

17 MR. SUGHRUE: That\'s assuming there\'s a

18 choice.

19 MR. SHORT BULL: I guess I\'d like to

20 make a comment and that is, you know, I travel,

21 so I don\'t think it would make a difference

22 whether or not who owns the stations. The

23 concern I have is just lazy reporting. In

24 regards to when I go to D.C., I turn on the

25 television, invariably there\'s a reporting about

89

1 someone being shot in the black community. If

2 you go to the Southwest, Hispanic person

3 shooting someone or a crime committed. And it\'s

4 easier to report those type of crimes rather

5 than to do the hard work, to do positive reports

6 about minorities. And so unless that changes, I

7 don\'t see where it would make a difference in

8 ownership in this country.

9 MR. CASEY: I asked the question

10 earlier, there are three community stations in

11 South Dakota. Why are there not more?

12 Rapid City is a beautiful community. It doesn\'t

13 have a community station. South Dakota Public

14 Radio covers the entire state. Are there

15 opportunities for groups, whether additional

16 tribal groups or community groups, to have

17 access to the media and access to the airwaves?

18 COMMISSIONER ADELSTEIN: Seems, Bill,

19 do you want to get back in there?

20 MR. DUHAMEL: Well, actually I\'ve lost

21 my train of thought. It was something I was

22 going to agree with or disagree with there, but

23 I can\'t remember.

24 COMMISSIONER ADELSTEIN: Do you have

25 another \-- you were going to get back in there.

90

1 MS. ST. JOHN: There \-- it does take

2 effort to find the positives in a community,

3 especially when you\'re thinking about situations

4 in northern Illinois right now. They have some

5 crisis going on that is affecting the real

6 community. But I don\'t think we\'re going to

7 find a half-hour dedicated to the crew that is

8 filling the sandbags and people feeding them,

9 and all of that reporting is not going to come

10 out until later on, two years from now in a

11 documentary.

12 MR. DUHAMEL: Okay. But Tom had

13 mentioned about lazy reporters and

14 sensationalism. In South Dakota there are very

15 few murders. There really \-- I mean, we do not

16 have bad news because there isn\'t a lot of bad

17 news going on. There\'s economic news that is

18 poor. But I\'m telling you that most of the

19 things that we\'re talking about are not murders

20 and crimes. And that\'s not just us, it\'s all

21 the stations. This is just \-- it is not

22 Washington, D.C.

23 COMMISSIONER ADELSTEIN: One of the

24 other issues that we wanted to highlight in

25 today\'s hearing was the state of the Emergency

91

1 Alert System in this country. We found in

2 Washington, in our homeland security efforts at

3 the FCC that it\'s in a shambles in many parts of

4 the country. And broadcasters are doing what

5 they can to bring it back into better shape, but

6 this maybe is an issue for Park Owens. It\'s one

7 of those models that we talked about in this

8 community.

9 We had, of course, the hard experience of

10 the flood in 1972 that made us think really hard

11 about how we need to make sure that we have an

12 Emergency Alert System second to none. But we

13 think about here in this area, many of you might

14 have heard this story about Minot, North Dakota

15 where there was a derailment of a train which

16 was carrying toxic fertilizer.

17 When it derailed this cloud moved towards

18 the city, a toxic cloud. And they tried to

19 contact the broadcasters. The sheriff was there

20 on the spot, almost immediately tried to contact

21 the broadcasters.

22 The Emergency Alert System failed on both

23 ends. They called the broadcasters. It turned

24 out that most of the stations, I think six of

25 the seven, were owned by one company, Clear

92

1 Channel, out of state, and there was nobody

2 there to answer the phone at night.

3 So for quite a period of time, the public

4 wasn\'t alerted to the presence of this cloud.

5 There was a siren that went off. Everybody

6 turned on their radio to try to hear what was

7 going on, and there was nothing on the radio but

8 oldies or country music. Nothing about what was

9 happening, the threat that was coming to their

10 community.

11 We have exactly the same kind of cargo going

12 right through our own city here. And I think

13 that as a result of your efforts and the

14 collaboration, the partnership you talked about

15 with broadcasters, that wouldn\'t happen here.

16 I wanted to know, first of all, do you think

17 we are prepared for something like that much

18 better than Minot was? And secondly, could that

19 kind of collaboration that you talked about

20 happen in a larger market? Could this be a

21 model for others.

22 Because I\'ve heard that it\'s very difficult

23 to get that kind of easy collaboration in a

24 larger market that might not want to give the

25 power to somebody like an emergency response

93

1 personnel like you to shut off their station in

2 the middle of lucrative broadcasting time.

3 MR. OWENS: Since one of my bosses is

4 sitting in the audience, absolutely it couldn\'t

5 happen here. You know, we have plans. In fact,

6 I was fortunate enough to represent the

7 emergency management community along with the

8 State Association of Broadcasters and the

9 National Weather Service in drafting the EAS

10 plan which turned out sort of as the local plan,

11 and then is the model that has been accepted by

12 the FCC as the state plan as far as an Emergency

13 Alert System plan.

14 But the impetus for us to have the equipment

15 that we have now came out of the \'72 flood and

16 some of Mayor Shaw\'s experience there and other

17 leaders\' experiences in their inability to

18 communicate with people, again, our customers.

19 The emergency public information absolutely

20 has to be there right now. You can\'t call and

21 get an unmanned station. You can\'t call and get

22 an automated station.

23 We have some here, but our automated

24 stations are programmed to automatically accept

25 certain codes from the EAS system so there is no

94

1 delay, including CEM. So that type of

2 information that we would broadcast from the EOC

3 would go out along with the National Weather

4 Service information.

5 COMMISSIONER ADELSTEIN: And people

6 might not realize that\'s not required by

7 broadcasters.

8 MR. OWENS: No. The only requirement

9 is they carry presidential directives. You

10 know, but we have not had \-- in fact, our cable

11 companies do the same thing. We\'ve not had them

12 not agree that it is in the public interest to

13 warn people in the community of a flash flood,

14 of a tornado, of a hazardous material spill, or

15 some other civil emergency message, wildfire

16 that might require their action on their part.

17 Because we\'ve trained the public well. Turn

18 on your radio and television. If you get a

19 NOAA weather alert radio tone, if you hear a

20 siren, whatever it may be, turn on. We want

21 something there and they want something there

22 when we direct them to do that.

23 COMMISSIONER ADELSTEIN: You think that

24 kind of cooperation could happen in a larger

25 media market?

95

1 MR. OWENS: Yes. I don\'t say that

2 without complete reservation. I think they have

3 to work on it a little bit. I think in a larger

4 media market they have other competing concerns.

5 And we\'re blessed here because, you know, we\'re

6 not competing with a lot of other folks for the

7 airwaves.

8 We\'re also a judicious user. We don\'t

9 willy-nilly transmit CAMs and take the airwaves

10 away from local broadcasters. But yes, I think

11 it could in fact work if they would purchase the

12 equipment, become collaborative, form that

13 partnership, you know, meet with the

14 broadcasters so they know who they are and they

15 know who the emergency management folks are.

16 COMMISSIONER ADELSTEIN: Well, this is

17 a model that we\'re going to encourage at the FCC

18 in small and large communities across the

19 country.

20 MR. OWENS: And the equipment is not

21 that expensive to be able to do that kind of

22 thing. Now, I \-- and Bill went out of his way

23 and authorized \-- or his bookkeeper did. They

24 had to buy the equipment to receive my signal

25 from the EOC. They had a spare cavity in their

96

1 safety equipment for their EAS, put in the

2 receive card and it goes out just like it was a

3 NOAA weather radio card or LP1 card or whatever

4 it happened to be that they are monitoring at

5 that time. Comes in their equipment, we

6 transmit it on their carrier waves.

7 COMMISSIONER ADELSTEIN: We appreciate

8 your leadership on this and the cooperation of

9 the broadcasters in this community to protect

10 their citizens.

11 MR. OWENS: I\'d like to take full

12 credit, but it\'s my bosses and the partners in

13 the broadcast community that have made all this

14 possible.

15 MR. DUHAMEL: One of the things we did

16 learn was the tragic \'72 flood. Because in the

17 \'72 flood, you know, we\'ve found some things

18 that did break down, and we learned a lot about

19 emergency preparation and that\'s carried over in

20 this community.

21 I know there were several years I went

22 around to the radio and television news director

23 annual meetings, and explained to them the

24 things that we learned that we didn\'t know until

25 after you have an emergency.

97

1 But so, we\'re benefiting a little bit from

2 that tragedy, from the lessons learned. But,

3 you know, I think I agree with Park. With some

4 reservations, I think it could work in bigger

5 communities. But they\'ve got to be convinced

6 that, you know, when a tragedy occurs, you need

7 to be there.

8 COMMISSIONER ADELSTEIN: They can learn

9 something from what happened here. They need to

10 do that before the emergency happens, before the

11 tragedy. Commissioner Copps.

12 COMMISSIONER COPPS: Thank you to all

13 the panelists for your statements. Thank you,

14 too, to those stations who are carrying this

15 hearing. I think it\'s a real public service.

16 We\'ve heard a lot of good things about local

17 coverage, local news.

18 But I was reading something the other day

19 and maybe you could comment on this. Last

20 October the Alliance For Better Campaigns

21 released a study that showed that local news

22 coverage, local information wasn\'t faring very

23 well.

24 And they went specifically to the six

25 cities, including Rapid City, where the FCC was

98

1 planning to hold these localism hearings, and

2 examined programming in 45 local stations for

3 the week of October 5th through October 11th and

4 they found there was a near blackout of local

5 public affairs.

6 They found really that there were more reruns

7 of Seinfeld than there were of local news

8 broadcasts. Of the 7550 hours of programming

9 analyzed, less than one half of one percent, 13

10 hours, were devoted to local public affairs

11 shows.

12 It breaks down \-- breaks down these cities.

13 And I was looking at the local news, Rapid City

14 actually came out worse than any of the other

15 five with 4.3 percent. We had drama number one,

16 14 percent; sports number two, 12 percent; talk

17 radio, talk shows, 11 percent, number three;

18 reality shows, 10.4 percent; comedy number five,

19 8 percent; local news was way down there at 4.3

20 percent.

21 Is this study misguided or where is the

22 truth on how we\'re doing on local news? Bill,

23 maybe you could comment on that.

24 MR. DUHAMEL: I\'ve not seen the report.

25 So I would like to see the report, then I could

99

1 comment in greater detail. But right now we\'re

2 carrying 10 percent of our daily broadcast \--

3 weekdays. Now, on the weekend we don\'t do as

4 much. I\'ll concede that. On the weekdays we\'re

5 carrying 10 percent local news and public

6 affairs.

7 So I don\'t know where those figures are

8 coming from. And I suspect that they\'ve gotten

9 some cable channels mixed in there. I really

10 do. That\'s why I\'d have to see the report.

11 COMMISSIONER COPPS: Well, they have

12 KCLO, KEVN, KHSD, KIVV, KNBN and KOTA TV.

13 MR. DUHAMEL: Those are satellites,

14 some of them are. But I\'d have to see the

15 report because I can\'t comment on them.

16 COMMISSIONER COPPS: I\'d like that.

17 I\'ll make sure you get a copy of the report.

18 MR. DUHAMEL: I\'d appreciate that.

19 COMMISSIONER COPPS: I want to follow

20 up on that. I wanted to commend Thomas Short

21 Bull for that statement on diversity coverage.

22 You know, this is really a huge problem across

23 this country right now. If this country of ours

24 is about anything, it is about diversity.

25 Diversity is not a problem to be overcome

100

1 for the United States of America, it is an

2 opportunity to be developed. And I think our

3 media has a responsibility to reflect this

4 diversity and to nurture this diversity. But I

5 think we really have to be pushy about it. And

6 I applaud the idea of maybe having a program

7 once a week highlighting it.

8 But you know, I think ownership does matter.

9 And I think career opportunities for diversity

10 groups in an industry matter. All the

11 statistics show that minority ownership is not

12 faring very well.

13 Take African Americans, one of the larger

14 minority groups, I think own maybe 1.4 percent

15 of all the media assets in the United States of

16 America.

17 How we going to expect their interests to be

18 reflected? Their news interests, their

19 information interests, even advertising they

20 might want to see, where is that going to come

21 from in those stations unless there\'s some

22 ownership or some control or some input.

23 So I would hope that all the diversity

24 communities could really, really band together

25 and push on this because it\'s so important. Do

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1 you want to say anything \-- anything else on

2 that?

3 MR. SHORT BULL: Well, I guess you

4 know, in regards to, you know, political

5 campaigns and just an example of the travesty

6 that occurs that where we get a black eye in the

7 non-Indian community is we recently had an issue

8 in this state in regards to supposed voter

9 fraud.

10 And you know, it was just a few people that

11 were improperly registered. But what I see

12 occurred there, it was a way in which the

13 Republican Party could send out a signal to

14 their constituents in this state to say

15 basically, you know, the Indians are going to

16 get out there and vote. So there\'s always these

17 horror stories that come out around election

18 time.

19 When McGovern ran against Pressler, there

20 was this whole issue that the Indians were

21 providing dinners after the election. And you

22 know, it\'s all of this type of things that, it\'s

23 to me, to wake up the Republican people so that

24 they will get out and vote against the

25 Democratic candidate. Not to base their vote on

102

1 who the actual candidate is, but on the basis

2 that, you know, those Indians are trying to

3 steal an election. And I think that was a real

4 travesty that occurred in this state.

5 And that both the print and the broadcast

6 media were basically pawns of the Republican

7 Party in what happened. This was a minor, minor

8 thing, but it was blown out of proportion.

9 The legislature passed, so that now we as

10 Indian people have to show up with a voter ID.

11 You know, it\'s ridiculous. I mean, this country

12 is based on the principle that we all have a

13 right to get out and vote for people, and yet

14 here we\'re almost bringing back, you know, the

15 practices that happened in the South.

16 And now we as minorities are going to have

17 to show up with photo IDs. I think it\'s just a

18 clear travesty that happened in this state and

19 should have never happened.

20 But it\'s part of this propaganda that occurs

21 every election year to paint the issue of the

22 Indians wanting to get out and vote and that we

23 have to stop the Indians trying to steal an

24 election.

25 MS. ST. JOHN: Commissioner.

103

1 Commissioner Copps, you have some good comments

2 and they are very worthwhile. I was introduced

3 to broadcasting because of the EEO initiative,

4 and I know that\'s where it came from, and I had

5 the interest prior to that but I didn\'t have the

6 opportunity. So I appreciate your comments.

7 COMMISSIONER COPPS: I guess the only

8 comment I\'d offer is on the basis of what I\'ve

9 heard. I think things appear to be relatively

10 better in this media market than some of the

11 others. I don\'t know if it\'s as good as

12 everything we heard, but relatively better I

13 will accept.

14 But I was \-- I would just warn against being

15 complacent about it. There is a rising tide of

16 consolidation across this country. I\'ve been in

17 too many places not to know that, and I\'ve seen

18 the results where newsrooms get closed down,

19 where people get fired, where national \-- the

20 music play list takes over the local musicians

21 and the local talent.

22 And I try to go out and talk to a lot of

23 broadcaster groups. And I was with one last

24 week and I said well, y\'all may feel real good

25 about where you are right now. But I remember

104

1 my first day of college, I went in, the

2 professor said look to your left, look to the

3 right. One of you three people isn\'t going to

4 be here at the end of the semester.

5 I told the broadcasters, too, two, three

6 years from now in a particular state, some of

7 you people aren\'t going to be here. I think

8 it\'s something that even if we think diversity

9 and localism and competitive environment exists,

10 don\'t take it for granted.

11 COMMISSIONER ADELSTEIN: Thank you,

12 Commissioner Copps. That concludes our panel

13 segment. We are running a little bit behind.

14 Imagine that, a government operation running not

15 like clockwork. We\'d like to shorten the break

16 a little bit. Instead of a 15-minute break,

17 just take a quick five-minute break and we will

18 reconvene in five minutes.

19 (A brief recess was taken.)

20 COMMISSIONER ADELSTEIN: We\'re going to

21 come back to order. The next portion of our

22 experience here is going to be moderated by

23 Steve Hemmingsen, who\'s an experienced mediator

24 of this, and begin with community perspectives

25 from the list you have in your program here.

105

1 And then we\'re going to open the microphone to

2 everybody that wants to speak. And all of it

3 will go on the record. So we\'ll be here as long

4 as it takes. Steve.

5 MR. HEMMINGSEN: Thank you,

6 Commissioner. I\'m Steve Hemmingsen. I anchored

7 the news at KELO in Sioux Falls before retiring

8 for, I don\'t know, 25 years, something like

9 that. I\'ve been asked to moderate the public

10 participation segment of tonight\'s hearing.

11 This segment consists of two parts. First,

12 we\'ll hear briefly from a small group of

13 additional community leaders, organizational

14 representatives, and broadcasters. Now each

15 speaker will have two minutes to deliver their

16 prepared remarks. We use the light signal and

17 the cards, just as we did in the first segment

18 of the hearing, to maintain these time limits.

19 Now I may interact with a speaker from time to

20 time to clarify or develop or further their

21 remarks.

22 Second, we\'ll hear from citizens directly

23 about how their broadcasters serve them. The

24 FCC has devoted substantial time to the open

25 microphone session because it\'s critically

106

1 important to this hearing. It allows the FCC to

2 hear from the citizens directly about how their

3 broadcasters are serving them. I\'ll provide

4 more details about the format and procedures for

5 that session when it begins.

6 And in the meantime, I would like to

7 emphasize to everybody involved, since we would

8 all like to see our wives and families again,

9 let\'s please stick to the two minutes, if you

10 would. We\'re entirely for free speech as long

11 as you keep it within two minutes.

12 All right. Let\'s start with the comments

13 from our additional speakers this evening. And

14 first let\'s hear from the Honorable Jim Shaw,

15 the Mayor of Rapid City.

16 MAYOR SHAW: Once again, thank you,

17 Commissioners, and thanks to all of you who are

18 here from the FCC and elsewhere for coming to

19 our community. Just wanted to reiterate on

20 three key items that from my perspective not

21 only as an elected official but also as a

22 long-time broadcaster in the Rapid City

23 community I think need to be emphasized.

24 One is the Emergency Broadcast System and

25 the manner in which it is operated, as Park

107

1 Owens indicated and to follow-up on the comment

2 and question from Commissioner Adelstein.

3 I believe this could be replicated

4 elsewhere. The cost is relatively

5 insignificant. If it\'s used judiciously, which

6 it is here, it is not a major inconvenience at

7 all to the broadcasters. In fact, they should

8 be welcoming it.

9 It\'s an opportunity, as we discovered here

10 in Rapid City, long after the Rapid City flood,

11 we learned that if there would be an emergency

12 of that sort, it would be nearly impossible for

13 fast communication to happen from a mayor,

14 police chief, a fire chief. They\'d have to go

15 through a lot of contortions to be able to get

16 the message on the air and even then maybe

17 couldn\'t get the same message on all media.

18 So this system is, although we have not had

19 to use it in an emergency situation such as the

20 flood, nevertheless is very valuable to know

21 it\'s there. And the broadcasters have been very

22 welcoming to have that system in place.

23 Secondly, from the perspective I have as an

24 elected official, I know how important it is to

25 get the information out to the community about

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1 the election, not just when the election occurs

2 but beforehand. The broadcasters, again, have

3 done an outstanding job of providing time in our

4 community both on radio and TV to make those

5 issues as well as candidates\' positions

6 well-known.

7 Thirdly, on the issue of undoing racism that

8 I spoke of before, it\'s a very important issue

9 in the Rapid City community. And again, the

10 media has been, in Rapid City as well as the

11 native stations, have covered this extensively.

12 And it is a way to broadcast that information to

13 a much wider forum than just those who would

14 appear in person.

15 So again, localism, I believe, especially on

16 those three perspectives that I have, is not

17 only alive and well but is flourishing here in

18 the Rapid City market. Thank you.

19 MR. HEMMINGSEN: Thank you, Mayor Shaw.

20 Next we call on Phil Bravin. He\'s the

21 Technology Research and Development Officer,

22 Communication Service for the Deaf in Sioux

23 Falls. Mr. Bravin.

24 MR. BRAVIN: (Through interpreter.) Good

25 evening. Commissioner Adelstein, welcome home.

109

1 Commissioner Copps, welcome back. First of all,

2 I would like to represent the deaf and hard of

3 hearing community here in South Dakota. First

4 and foremost of importance is to realize that

5 deaf people do not have access to the radio at

6 all. Our only access is to the television

7 stations.

8 Our local stations are making an effort to

9 try and communicate information to us, but it is

10 not perfected as of yet. The best they can do

11 is with some time \-- realtime captioning. Other

12 times they have scrawls, crawls, which are very

13 useful until it happens five minutes before the

14 tornado hits. Then until that five minutes

15 before the tornado hits, that information is

16 simply not enough.

17 And we don\'t know exactly where the tornado

18 is. All we see is a weather map. And they

19 expect us to read those crawls without having

20 access to the voice overtones. Now, those

21 things can be corrected with realtime

22 captioning.

23 Another time a chemical explosion happened a

24 few months ago in Sioux Falls. That information

25 was not captioned. So my wife was baby sitting

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1 my granddaughter and was completely unaware of

2 what had happened because the voice-overs were

3 telling people stay inside, do not go outside to

4 play, do not go outside until the chemical is

5 out of the air.

6 This is not a fault of the broadcasters.

7 Sioux Falls and Rapid City are in very small

8 areas. They are not able to charge the high

9 advertising dollars that the big cities are able

10 to. So therefore, they do not have the

11 mechanisms in place to provide the access

12 to deaf and hard of hearing people.

13 We also do not have information to the

14 public issues such as the political debates, the

15 political addresses. Most of those are not

16 realtime captioned.

17 So the suggestion is that the FCC looks at

18 some sort of USF information, the utilities

19 communication commission, so that they can have

20 the broadcasting to think about that. And thank

21 you. I know my time is out. Thank you for the

22 opportunity.

23 MR. HEMMINGSEN: Thank you, Mr. Bravin.

24 Next on the agenda is Mark Antonitis, the

25 President and General Manager of KELO television

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1 in Sioux Falls, the owner of my soul. Take all

2 the time you want, as long as you keep it within

3 two minutes.

4 MR. ANTONITIS: Thank you very much,

5 Steve. As Steve said, I am Mark Antonitis. I\'m

6 the President and General Manager of KELO TV. I

7 have extensive written remarks that we\'ve given

8 to the secretary.

9 We cover a huge area that we call KELO Land.

10 Now, you could watch our 5:00 p.m. newscast in

11 Sioux Falls, turn off your TV, drive four and a

12 half hours, turn on the TV in Rapid City, and

13 you could see our 10 o\'clock newscast. Localism

14 for us is a very different thing than it is for

15 a station in New York.

16 I work for Young Broadcasting. It\'s a

17 publicly traded company located in New York.

18 But like our managers and employees, I\'m a

19 South Dakotan and we live local.

20 Only one South Dakota television station has

21 ever been awarded a national Emmy, and that was

22 KELO TV in 2000. And that Emmy was for public

23 service. We have great broadcasters here and

24 part of what we do best is we are local and we

25 live it.

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1 KELO TV does many things we view as serving

2 the community\'s needs including 24 and a half

3 hours of local news. Commissioner Copps, I

4 don\'t know where they got those figures, but 24

5 and a half hours is one-seventh of our

6 broadcasting. Live local sports, a monthly

7 program about South Dakota politics that runs at

8 6:30 p.m., hour-long prime time debates for

9 federal offices and gubernatorial offices, ad

10 watches on campaign ads, and many other efforts.

11 But since I\'ve got less than a minute left,

12 let me talk to you about one weather incident.

13 In this area, weather is critical to the safety

14 and well-being of our viewers. Because of that

15 we invested over \$2 million in a Doppler Radar

16 System. Now, we also have weather sensors,

17 realtime sensors spread out over the entire

18 viewing area. Our weather warning systems have

19 provided \-- have proved to be truly life-saving

20 technology.

21 Now, six years ago a massive tornado

22 devastated the small rural town of Spencer,

23 South Dakota. Spencer is located just over 40

24 miles west of Sioux Falls. Six people were

25 killed, 150 people injured, and 90 percent of

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1 the town destroyed.

2 Our live Doppler radar helped us warn

3 Spencer viewers of the impending storm 20

4 minutes before impact. We also preempted three

5 and a half hours of prime time live programming

6 to present a telethon to rebuild the town. We

7 raised three-quarters of a million dollars.

8 Thank you, Steve.

9 MR. HEMMINGSEN: (Gavel banging.) I

10 always wanted to do that.

11 MR. ANTONITIS: Commissioners, we love

12 what we do. We\'re passionate about television.

13 All the broadcasters here are.

14 MR. HEMMINGSEN: (Gavel banging.)

15 Which part of that didn\'t he get? By the way,

16 don\'t leave for home without me.

17 MR. ANTONITIS: Thank you. Give them

18 these letters later, Steve.

19 COMMISSIONER ADELSTEIN: We\'ll put

20 these in the record.

21 MR. HEMMINGSEN: Okay. Let\'s move on

22 to Carole Anne Heart, the Executive Director of

23 the Aberdeen Area Tribal Chairmen\'s Health

24 Board. Carole Anne Heart.

25 MS. HEART: Good evening. I\'m a fast

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1 talker. I\'d like to say (speaking in native

2 language.) Welcome, all of you to the sacred

3 Black Hills which is the homeland to the Lakota

4 Nations, and it is the heart of everything that

5 is to us.

6 And what I would like to speak to, I have

7 submitted testimony that they are in receipt of,

8 but I would like to emphasize a couple things

9 that are very important to us. I know I would

10 like to also agree with Tom Short Bull on a lot

11 of his comments that he made.

12 But I would also like to add that I live

13 here in Rapid City now, and I moved here from

14 the exciting town of Aberdeen, South Dakota.

15 And while moving here we moved a whole program

16 of 60 people that serve the needs of Indian

17 people in the states of North Dakota,

18 South Dakota, Nebraska, and Iowa. We serve

19 200,000 native people in these four states.

20 And we thought that was pretty big news that

21 a business this large serving the Indian people

22 of that many moved to the town of Rapid City.

23 And yet this was not covered by any news media

24 station other than KOTA. So I would like to

25 thank them for that.

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1 And I think that the reason that they were

2 able to do this is because they have a native

3 news reporter working at their station. And I

4 think if all the stations would hire a native

5 news reporter that we would get more news

6 coverage on all fronts, on a lot of different

7 topics. So I encourage every station to do

8 that, to hire a native news reporter or someone

9 that works in your office so that you have a

10 link to the communities that you serve. And I

11 think that\'s a very important thing.

12 (Applause.) Is that part of my minutes?

13 MR. HEMMINGSEN: You\'ll know when the

14 party is over.

15 MS. HEART: I would like to also

16 dethrone a couple myths that exist in the media,

17 which is that casinos are the answer to

18 everything. And the question I would like to

19 ask all of you is, what is the difference

20 between praying in church and praying at the

21 casino? At the casino you really mean it.

22 MR. HEMMINGSEN: That was the end.

23 That was it. Thank you, Carole.

24 MS. HEART: And so what \-- I just want

25 to say that I hope you conduct a market study on

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1 the populations that are served by native people

2 in the states of North Dakota, South Dakota, and

3 Nebraska, to find a true picture of the

4 broadcast of the coverage in this area. Thank

5 you very much.

6 MR. HEMMINGSEN: Your time is up.

7 Thank you very much. All right. Where is

8 Dennis King, Vice Chairman of the Oglala Sioux

9 Tribe? Dennis? I have him on my agenda. Here

10 he comes, I believe.

11 MR. DUHAMEL: I don\'t know Dennis King.

12 MR. KING: Oh, I hope my two minutes

13 didn\'t start when I was walking up. First of

14 all, (speaking in native language.) First of

15 all, let me translate what I just said in

16 Czechoslovakian because that\'s what I am.

17 No, in Sioux. I said: This is Sioux

18 territory, and I want to welcome all of you

19 here. This is the first time we have something

20 like this, news, newspaper, and news media.

21 There\'s a lot of things that I want you guys to

22 enjoy, for you people coming from far away.

23 Enjoy the Black Hills. The treaty, it still

24 belongs to the Lakota Nation. Rapid City is

25 still sitting in Indian country. But the thing

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1 I\'d like to say is that there\'s a man from the

2 Fifth Office that came with me, and he\'s going

3 to read a written statement. He\'s a fast

4 talker. Harvey White Woman.

5 And one of things that I think he wants to

6 cover is that part of is the race relations that

7 I think Mr. Shaw talked about. We need to

8 improve that greatly.

9 MR. HEMMINGSEN: Will you be able to do this

10 in a minute?

11 MR. WHITE WOMAN: Commissioner, honored

12 guests. First of all, I do want to reiterate

13 again, you have a representative of the tribal

14 government here, and you gave \-- you afforded

15 the state government, the city government time

16 to make an opening statement and they were

17 afforded that time earlier. So I feel as a

18 federal trust responsibility, the tribal

19 government should be afforded the same amount of

20 time.

21 COMMISSIONER ADELSTEIN: Let\'s start

22 the clock over at two minutes.

23 MR. WHITE WOMAN: Okay. Thank you.

24 First of all, I\'d like to go ahead again and

25 welcome you to Lakota country, which we still

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1 consider very sacred under the treaties and

2 supreme law of this land under Article VI. I do

3 want to read the statement of the Fifth Member

4 of the Oglala Sioux Tribe, which also is a

5 statement of the tribe itself, the Oglala Sioux

6 Tribe.

7 Testimony from the treaty perspective on the

8 Federal Communications Commission Localism

9 Hearing. I quote: Set apart for the

10 undisturbed use and occupation of the Indians

11 herein named, Article II, 1868 Fort Laramie

12 Treaty. From time immemorial the Oglala Band of

13 the great Titonwan Lakota Nation have held that

14 treaty territory promised and pledged by the

15 United States would be used solely for the

16 building of a sovereign nation that our children

17 and the coming generations would be proud to

18 call Lakota country; a territory which would

19 embrace traditional laws of custom to which to

20 govern themselves and develop a sustained

21 economy based upon the usage of the vast

22 resources held in common for the Lakota people

23 by the Lakota people.

24 History of this nation has proven otherwise

25 to the extent that the Oglala Band have become

119

1 enslaved to a system that to this day remains

2 totally foreign and goes against traditional

3 teachings of our ancestors.

4 Although we have been able to adapt to a way

5 of life that was thrust on our ancestors years

6 ago, we continue to see the constant use and

7 depredation of our treaty territory to benefit

8 economies of non-native communities instead of

9 the rightful owners of this area by supreme law.

10 The Federal Communications Commission is

11 gathered here to listen and possibly learn from

12 common people who share one goal in mind:

13 Diversity in the airwaves. Today we see the use

14 of the airwaves and who controls that use of

15 airwaves can also control how people perceive

16 other cultures.

17 For years the Native Americans have been

18 viewed by the media and television in

19 South Dakota as second class citizens whose

20 only purpose is to draw people to this area in

21 its tourist seasons and are perceived that all

22 Indians wear orange jumpsuits.

23 Non-Indians have been in control of how we

24 are seen from the days of watching Indians

25 surround the wagon trains in the television

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1 western shows to the takeover of the Bureau of

2 Indian Affairs building in Washington, D.C. All

3 very stereotypical in showing that the Indian is

4 nothing but a heathen savage and radical that

5 requires total ignorance on the part of

6 mainstream America.

7 This is what has been shown throughout the

8 years in front of our children who we try to

9 raise to be proud of their Lakota heritage.

10 The similarities between the Lakota and

11 Muslim people is not a coincidence in a sense

12 that both have been portrayed in movies that are

13 replayed on television and mainstream media as

14 cultures to be afraid of because of our views

15 and the color of our skin.

16 Just as we have seen John Wayne taking care

17 of the Indian problem in the westerns, we also

18 see Arnold Schwarzenegger blowing away Middle

19 Eastern terrorists to save the world.

20 As a consequence of those stereotypical

21 portrayals of our cultures in mainstream media

22 and television, Native Americans are subjected

23 to failing federal Indian policies that continue

24 to violate our rights as a sovereign nation.

25 And as for the Muslim people, well one can only

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1 look at what is happening in Iraq.

2 The FCC must realize the importance of

3 diversity in the airwaves whether through radio

4 or television, to prevent false images of a proud

5 people, and a balance must be found.

6 MR. HEMMINGSEN: Thank you, sir.

7 MR. WHITE WOMAN: The Federal \-- the

8 Federal Communications Commission agency in

9 acting for the United States Government has a

10 fiduciary trust responsibility to assist the

11 Oglalas in utilizing trust resources for the

12 benefit of the Lakota people, which includes the

13 unresolved air space within sovereign

14 territories as recognized in the 1851 and 1868

15 Fort Laramie treaties.

16 The airwaves that carry the messages through

17 the air is viewed as a natural resource to which

18 the Oglala must assert authority to protect not

19 only what we see as a sovereign issue, but also

20 to protect our children\'s future from

21 stereotypical images portrayed to America via

22 radio and television.

23 How we arrived at the statement of asserting

24 authority over airwaves is vested solely in

25 agreements made between two sovereign nations

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1 called treaties.

2 As the founding fathers of this nation were

3 interpreting through federal papers the United

4 States Constitution in the late 1700s support

5 was given to recognizing Indians as separate

6 nations and afforded all respect as such by

7 forging solemn agreements considered supreme law

8 in Article VI of the U.S. Constitution.

9 Although airwaves is not explicitly written

10 in the Fort Laramie Treaties of 1851 and 1868,

11 we reserve unto ourselves the right of senior

12 ownership of a natural resource within treaty

13 territory.

14 This right of senior ownership is similar to

15 water that was also not explicitly expressed in

16 the treaties but was implied in the 1908 Winters

17 Doctrine which remains the foundation of

18 reserved water rights of Indian nations

19 throughout the United States.

20 Supreme Court canons of treaty construction

21 support the Oglala Lakota assertion of our

22 sovereign right to an intangible property that

23 could be used to benefit our people and to

24 further the education of our culture, to insure

25 the survival of a people whose ancestors pledged

123

1 their honor to maintain peaceful relations

2 between two nations, a relationship based on a

3 solemn trust that requires the building of

4 bridges and understanding between two cultures

5 who remain steadfast in their beliefs to life,

6 liberty, and the pursuit of happiness and the

7 other who believes in a supreme law and of

8 sovereignty whereas diversity within the

9 airwaves spectrum via radio and television can

10 enhance that understanding (speaking in native

11 language.) Thank you. Johnson Holy Woman.

12 MR. HEMMINGSEN: Thank you very much.

13 MR. HOLY WOMAN: I do want to go ahead

14 and submit this testimony as part of the record

15 for the Commissioners.

16 COMMISSIONER ADELSTEIN: It will be

17 made part of the record.

18 MR. KING: I want to say one more thing

19 before I leave. My name is Dennis King, vice

20 chairman. I approve of that message. Thank

21 you.

22 MR. HEMMINGSEN: Next, Sonny Skyhawk,

23 the Founder of American Indians in Film and

24 Television. Sonny Skyhawk.

25 MR. SKYHAWK: Good evening and thank

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1 you very much, Mr. Adelstein, for inviting me

2 and inviting some of our Lakota people and our

3 local native tribes to this hearing. I\'m

4 somewhat appalled that we\'re held to this type

5 of \-- time wise. We were told that we were

6 going to have four to five minutes to be able to

7 deliver whatever message we had, and yet here we

8 are again making a farce of this hearing by

9 cutting people off and so on.

10 So I\'m telling you now I don\'t appreciate

11 it. I was going to make some comments. I\'ve

12 come here all the way from Los Angeles to

13 deliver this message, but I refuse now because

14 my people have been disrespected by being held

15 to this time line that you have. Thank you.

16 MR. HEMMINGSEN: Thank you,

17 Mr. Skyhawk.

18 COMMISSIONER ADELSTEIN: Let me just

19 respond briefly. We have a lot of people here

20 that want to be heard tonight. Everybody is

21 being held to two minutes. We are going to be

22 here as long as it takes to hear everybody. But

23 it\'s only fair to everybody in this room that we

24 all respect each other and that we keep our time

25 limited.

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1 If you want to continue to go afterwards,

2 we\'d be happy to hear from you. Some of these

3 people who want to speak came from very far and

4 they have also important things to say. We

5 don\'t want to make them stay here until 2:00 or

6 3:00 a.m.

7 MR. HEMMINGSEN: And I didn\'t make the

8 rules, I\'m just enforcing the rules. Next is

9 Linda Marcus, who\'s the President of the

10 South Dakota Broadcasters Association.

11 MS. MARCUS: Good evening and welcome

12 to South Dakota. I\'m the General Manager of

13 four radio stations in Huron, South Dakota and

14 I\'m also the Chairman of the South Dakota

15 Broadcasters Association.

16 Tonight I\'d like to speak to the variety of

17 community causes South Dakota Broadcasters radio

18 and television stations. We are a wealth of

19 issue-specific awareness announcements on

20 subjects from health and education to alcohol

21 abuse prevention and community safety.

22 South Dakota broadcasters provide important

23 support for community organizations such as

24 local hospitals, fire and police departments,

25 libraries, schools, food banks, the homeless and

126

1 domestic violence shelters, among many others.

2 Stations also support organized community

3 events such as blood drives, charity and relay

4 events, community cleanups, town hall meetings,

5 health fairs, and many of us also sponsor events

6 for local races.

7 Where I think our broadcasters really shine

8 is when Mother Nature takes hold of what happens

9 in South Dakota, and we\'re certainly not

10 unfamiliar with those kind of things. And when

11 it\'s time to bring help to the people, the

12 broadcasters are the only ones that can bring

13 them that lifesaving message.

14 All of our efforts to cover \-- all of our

15 efforts cover a full range of issues confronting

16 our communities including all kinds of health

17 issues, and violence prevention, and poverty and

18 homeless issues. Our stations do all kinds of

19 things to help our communities, and it\'s very

20 important to us that we stay local.

21 Tonight we\'re proud to be part of the public

22 service events that we do in each community, and

23 we\'re here to learn. And we\'re here to learn

24 what we can do to help others and do a better

25 job of what we\'re doing to serve our

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1 communities. Thank you.

2 MR. HEMMINGSEN: Next is Dawn

3 Laskowski, Executive Director of the American

4 Red Cross, Black Hills Area Chapter of Rapid

5 City.

6 MS. LASKOWSKI: Thank you for giving

7 me a chance to speak today. As you know, the

8 American Red Cross provides relief to victims of

9 disaster, presents health and safety training,

10 and relays emergency information between active

11 military and their families. Our services are

12 available to all people of all ages regardless

13 of gender, race, or income levels.

14 Without the media we could not accomplish

15 our mission. They are instrumental in getting

16 our message out to the public. They inform the

17 public about what services such as training

18 courses that we are offering. They assist us in

19 building community relationships and in relaying

20 the needs of the Red Cross, including financial

21 support.

22 We place such a high level of importance on

23 building and maintaining media relationships

24 that we make sure we have representation from

25 each of the media, television, radio, and

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1 newspapers, that sit on our board of directors.

2 Jack Sitch from KEVN, Fox 7, Charlie O\'Douglas

3 from Rushmore Radio, and Marty Kraus from the

4 Black Hills Pioneer, each currently hold seats

5 on our board.

6 Their involvement helps to educate us on the

7 best, most effective way to present information

8 to the media to assist us in getting our message

9 picked up. Not only have they helped us to

10 improve the way that we communicate to the

11 media, their involvement insures that our

12 message will get through their outlets.

13 However, we receive active support from our

14 community and our media overall because of good

15 solid relationships that we have built with

16 individual organizations. As a result, they

17 gain an understanding of our unique needs.

18 For instance, they have been proactive in

19 taking a PSA on a disaster course that is

20 scheduled and have developed it into a news

21 story about the importance of getting the

22 necessary training today so that when the

23 wildfire strikes next month, that student will

24 be capable of helping hundreds of his neighbors

25 in a day. They have actually come to the class

129

1 itself to get the necessary video to help

2 promote the message.

3 This is the benefit of building

4 relationships to attain the over \-- this ongoing

5 support.

6 MR. HEMMINGSEN: Time is up.

7 MS. LASKOWSKI: Thank you very much

8 for the time to speak.

9 MR. HEMMINGSEN: Thank you. Our next

10 speaker is Mark Reed, Actor and Native American

11 Member of the Equal Employment Opportunity

12 Committee of the Screen Actors Guild.

13 MR. REED: Before my testimony begins I

14 would like to take a moment to thank the Creator

15 for this day. I\'d also like to thank the Lakota

16 people for inviting me onto their land. Also

17 like to thank the state of South Dakota and Jim

18 Shaw, Mayor of Rapid City, for hosting the

19 hearings here. I also was told that four

20 minutes was our limit. I have a three minute

21 and ten second speech that I will read complete.

22 I\'ll begin my testimony: My name is Mark

23 Reed. I\'m an actor representing the Screen

24 Actors Guild and our 120,000 members. I am of

25 Mohawk and Apache descendent. I\'m a family man

130

1 and grandfather. But you won\'t see a Native

2 American Indian like me on TV or in a movie.

3 That\'s not how we\'re portrayed. If we were

4 portrayed as we live, we\'d be a part of every

5 community, doctors, mechanics, parents, just

6 people. We\'d be woven into the American fabric

7 just like you.

8 It\'s amazing how many Americans seem to

9 enjoy saying that they are part native, even

10 down to being fractionally part. Yet these same

11 people have no exposure to the rich cultures

12 since the media shuts out that information.

13 That\'s my point. The media is information,

14 and information depends on the media. The FCC

15 oversees our broadcast media. The FCC is our

16 trustee who we trust to keep our airwaves free

17 and safe from selfish or malicious control with

18 free and safe broadcasts so my children and

19 yours, my grandchildren and yours will have a

20 chance to see Native Americans in a positive,

21 truthful way, the way we are.

22 The Screen Actors Guild, SAG, believes

23 Native Americans deserve the honest portrayal

24 and deserve access to roles and job

25 opportunities the media does not allow us. SAG

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1 employment data shows that in 2002 only .02

2 percent \-- that\'s right, only point \-- excuse

3 me, .02 percent of all roles went to Native

4 Americans. Most of those opportunities were

5 minor roles in westerns and period pieces.

6 We\'re convinced the FCC, by dispersing

7 ownership and control of media, could help

8 resolve this problem. We\'re equally convinced

9 that the FCC, by supporting vertical integration

10 of media ownership and control, exacerbates the

11 problem.

12 With SAG as a partner, Native Americans are

13 joining forces with the community and media

14 watchdogs through the country. Our goals are

15 fair, our progress is hard fought. As our

16 employers consolidate to own every arm of the

17 media, Native American actors representing

18 native people have lost ground in the battle to

19 be part of the American media, to be part of the

20 information stream controlled by the media.

21 I\'m here to say this is no longer

22 acceptable. The Screen Actors Guild along with

23 the Directors Guild of America, Writers Guild of

24 America, and many independent producers filed a

25 petition with the FCC in December of 2002. We

132

1 asked for regulations to require the networks to

2 fill a minimum of 25 percent of all prime time

3 programming hours with content from independent

4 producers; not network owned, not owned by other

5 divisions of the network, but produced and owned

6 by true independent producers. We believe

7 beyond a doubt that this will result in

8 diversity in programming and creative ideas and

9 diversity in casting.

10 So many actors get their start in shows

11 produced by writer/producer Norman Lear, a

12 perfect example of how unique and

13 ground-breaking concepts got onto the public

14 airwaves.

15 The problem affects not only Native American

16 Indians, it affects all Americans. It boils

17 down to this stunning fact: Control information

18 and you control the nation. No group, no

19 special interest deserves the power to control

20 our nation by controlling information.

21 As a Native American Indian and as a member

22 of the Screen Actors Guild, I\'m proud to speak

23 out to the FCC. On behalf of all Americans,

24 keep our airwaves ours. Keep our information

25 uncontrolled, and we\'ll keep our liberty secure.

133

1 I\'m Mark Reed. Thank you.

2 MR. HEMMINGSEN: Thank you. Our next

3 speaker is Jim McKeon, President and CEO of the

4 Rapid City Area Chamber of Commerce.

5 MR. MCKEON: Are our local broadcasters

6 serving the community? My general answer

7 resoundingly is yes. Our chamber which has

8 1,470 members with more than 30,000 employees

9 has its fingers in many different parts of the

10 pie.

11 We create the atmosphere where business can

12 prosper and expand. We realize business is the

13 economic engine that lets us have an

14 outstanding quality of life. So from my

15 perspective, we get excellent support from our

16 local business media.

17 We are provided general coverage in the

18 areas of a standing monthly radio time for

19 general topics, standing monthly TV time for our

20 visitor industry, special time when needed, news

21 conferences, PSAs, event coverage, seminars, TV

22 coverage of new business openings, and

23 refurbishments.

24 We also are aware that we have local sports

25 events, support of charities and nonprofits, and

134

1 support of the arts. Under the issues portions

2 we have forums and debates that are covered by

3 the media very well.

4 They cover our advocacy

5 things with the air service, highway

6 acquisitions, Ellsworth Air Force Base

7 retention, community visiting and planning.

8 Seven years ago they helped us with

9 Frontiers Forging our Future. They are now

10 currently helping with Black Hills Vision.

11 Under the factors for consideration, I think

12 you need to watch news media, news versus

13 editorial. We see a lot of that slipping in

14 the localism. It\'s editorial rather than news.

15 Opportunities decrease for advertising in

16 the PSAs and all those things that I talked

17 about as we approach the election advertising

18 season, which unfortunately is getting longer

19 and longer. Local management, you\'ve talked

20 about it itself. We believe that local

21 management or involvement is important. We have

22 folks here that are masters of ceremony, attend

23 meetings and luncheons, join committees, are

24 partners in our events.

25 We have another aspect of it and that\'s the

135

1 advertising budget. This is a twist. Okay.

2 This is a twist. I\'m going to put my business

3 hat on now from the other side.

4 The number of stations you have in the area

5 causes our business community to have to figure

6 out how to allocate their advertising budget.

7 When they do that, they can\'t go with all the

8 stations. They go with some of them. They feel

9 like they are not getting all the coverage that

10 they need, depending upon how the various radio

11 stations are segmented.

12 In closing, the factors for consideration

13 should not detract from my first answer to the

14 question. Are our local broadcasters serving

15 the local community? My answer is yes. If I

16 had more time I would welcome you.

17 MR. HEMMINGSEN: Thank you. Our next

18 speaker is supposed to be Patty Pearson,

19 Director of Kids Voting in South Dakota. I

20 understand she couldn\'t be here. If Dr. John

21 Usera is here and would like to make some

22 remarks, he\'s welcome to.

23 He just stepped out of the room. We\'ll \--

24 well, all right. Dr. John Usera is in the

25 building.

136

1 MR. USERA: Thank you and welcome. I\'m

2 John Usera, and I represent the Chiesman

3 Foundation that houses six projects that works

4 on civic education and trying to work on getting

5 people to deliberate on different public policy

6 issues.

7 Kids Voting happens to be one of our

8 projects that we\'re really proud of. And what

9 it does, it promotes and teaches young people

10 from kindergarten to 12th grade about voting and

11 the democratic process in the classroom. One of

12 the things that we\'re proud of is the fact that

13 the media like KELO and KOTA and so forth, they

14 step up and try to get the youth on the news and

15 make it part of their programming to report

16 about what Kids Voting is happening in the

17 classroom.

18 Kids Voting then is connected through the

19 media to the classroom and to the community at

20 large. As a result of this connection between

21 media and the Kids Voting and curriculum and the

22 activities that it does, it makes the youth

23 realize how important their voice is in a

24 democracy and also how it can be in the future.

25 It really provides an opportunity for the

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1 children to realize that not only is public

2 policy made because of their voice, but that

3 they are being heard. Thank you.

4 MR. HEMMINGSEN: Thank you, Doctor.

5 Before moving on to the open microphone session,

6 Commissioner Adelstein?

7 COMMISSIONER ADELSTEIN: I just had an

8 addendum to our agenda. We have a wonderful

9 addition. Part of our closing this evening when

10 we wrap up will include a Lakota traditional

11 honoring song sung by Mr. Tim White Face. If

12 you can make it to the end, Mr. White Face will

13 do that for us. He\'s a member of the Oglala

14 Sioux Tribe and will help us to commemorate this

15 hearing in his own respectful way. And we very

16 much appreciate that honor.

17 MR. HEMMINGSEN: Thank you,

18 Commissioner. Now we\'ll begin the open

19 microphone session. Upon entering the hearing

20 room, everyone who wishes to speak should have

21 drawn a card with a group number on it. If you

22 did not do so and wish to speak, please contact

23 an FCC staff member in the rear of the room and

24 they will assist you.

25 Throughout the remainder of the hearing,

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1 group numbers will be chosen at random and

2 displayed on screens at the front of the hearing

3 room and in the overflow seating area.

4 Now I\'d like to ask a volunteer from one of

5 the back rows to assist us by picking numbers

6 for the open microphone session. Do we have a

7 volunteer in the back? A volunteer? We\'ve got

8 one. All right.

9 Now, our volunteer will provide these

10 numbers to the FCC staff who will display the

11 numbers on the monitors at the front of the

12 hearing room and in the overflow area. When

13 your group number is displayed, please move to

14 the check-in area at the back of the room. An

15 FCC staff member will then direct you to a

16 microphone at the appropriate time. We\'ll

17 alternate between two microphones to maximize

18 the number of people who can speak.

19 Now, in order to hear from as many people as

20 possible, all speakers must limit their remarks

21 to no more than two minutes. We\'ll use the time

22 machine to maintain these limits.

23 As a reminder, a yellow card and a yellow

24 light will be displayed when a speaker has one

25 minute left. Each speaker should begin at that

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1 point to sum up. A red card and the light will

2 be displayed when the speaker\'s time is expired,

3 and each speaker should then conclude their

4 remarks and leave the microphone. An FCC

5 staff member will remind speakers who continue

6 after the red card and light have been displayed

7 that their time has elapsed. After an FCC staff

8 member gives the reminder, we will then switch

9 to the other microphone to give the next person

10 waiting to speak an opportunity to do so.

11 The Localism Task Force invites those who do

12 not have an opportunity to speak for as long as

13 they wish to submit their views in writing to

14 the FCC, following the instructions at the

15 Localism Task Force\'s Web site, which is

16 www.fcc.gov.local \-- or excuse me, slash

17 localism. I may follow up on a speaker\'s idea

18 from time to time. Now let\'s get started with

19 the open microphone session.

20 All right. It would also be nice, but it\'s

21 not imperative, that you identify yourself so we

22 have a rough idea who you are speaking on behalf

23 of, which could be yourself if no one else.

24 Yes, sir, you appear to be number one.

25 MEMBER OF THE PUBLIC: Evidently. I

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1 thought I was number two according to the

2 screen, but I will go ahead and get started.

3 MR. HEMMINGSEN: We\'ll sort that out

4 later.

5 MEMBER OF THE PUBLIC: Commissioners

6 and distinguished panel, thank you for this

7 opportunity. I\'m Matt Gassen. I\'m Executive

8 Director of the Community Food Banks of

9 South Dakota. We operate a food bank in Sioux

10 Falls and we operate a food bank in Rapid City

11 along with a pantry in both communities.

12 I know that Commissioner Copps didn\'t really

13 want us to talk about what the local media does

14 as far as fundraising for nonprofits. But I

15 gotta tell you that without the support of the

16 local media, it would be very difficult for

17 many, many nonprofits to accomplish the missions

18 that they accomplish in communities, especially

19 the small communities.

20 As a food bank, I can tell you we do not

21 have the luxury of having access to food from

22 major manufacturers like there would be in a lot

23 of large metropolitan areas. We have to get all

24 our food transported in. We have to rely on

25 donations from major corporations. So without

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1 the assistance of the local donors, we wouldn\'t

2 be able to accomplish what we accomplish.

3 The media has always supported us for

4 20-some years, as Bill Duhamel had mentioned,

5 KOTA Care and Share Food Drive has been

6 supporting the food bank here in Rapid City.

7 KELO Land has been supporting the food bank in

8 Sioux Falls along with all of the other media in

9 Sioux Falls as well as with many of our

10 fundraisers.

11 Also, in Rapid City we have the luxury of

12 all the TV stations that support us when it

13 comes time for food drives or media events that

14 we\'re holding.

15 You know, it comes from those kinds of

16 things, but more importantly what it does is

17 allows us the opportunity to provide food to

18 many of the needy people throughout the state of

19 South Dakota, to the minorities that we serve,

20 be that 50 some percent that are minorities that

21 we serve from our pantry here in Rapid City.

22 But I\'d like to thank in the media, in the

23 local media that has supported us is a guy that

24 spent 72 hours in the back of a Mayflower

25 trailer to collect food for Thanksgiving meals,

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1 and that is the kind of support that we get

2 throughout the communities in the state of

3 South Dakota. And without their support, we

4 wouldn\'t be able to accomplish what we do.

5 Thank you very much.

6 MR. HEMMINGSEN: Thank you, Matt. Next

7 over here.

8 MEMBER OF THE PUBLIC: Hi, I\'m Tim

9 Henderson, Vice President of Business

10 Administration here at South Dakota Tech. I

11 have a slightly different issue I want to

12 address tonight, and that has to do with the

13 application process.

14 The South Dakota School of Mines and

15 Technology is having great difficulty with the

16 FCC licensing renewal of our own campus radio

17 station, formerly KTEQ 91.3 FM. Before getting

18 into the details of the situation, please let me

19 give you some quick background information about

20 KTEQ, as we call it. KTEQ was started in 1922

21 as WCAT on the AM band, the first radio station

22 in the state of South Dakota. Fifty years

23 later, 1972, the station became KTEQ 88.1 FM and

24 later now as it\'s called 91.3 KTEQ.

25 It has always been a noncommercial station

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1 serving SDSU and the community and provides

2 great management, team working opportunities for

3 the students here at Tech. Many of the disc

4 jockeys are from the local community. Many more

5 are Tech students and faculty.

6 KTEQ went off the air in August of 2000 when

7 its antenna had to be removed from the space

8 that was donated by a local commercial radio

9 station\'s tower due to technical reasons. It

10 took some time for the students to raise funds

11 for a new antenna, but in September of 2001 a

12 request was sent to the FCC for a special

13 temporary approval for getting back on the air,

14 would have allowed KTEQ to do so.

15 However, since KTEQ was not on the air for a

16 period of slightly greater than one year, the

17 FCC dismissed the request for an STA and has

18 muted and revoked our license.

19 It has been more than three years since KTEQ

20 has been waiting and since we\'ve been on the

21 air. The FCC has offered no options for a

22 solution to its problem, and South Dakota Tech

23 is very interested in accelerating the process

24 to open a window for noncommercial applications.

25 Further, if a window for processing

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1 noncommercial applications isn\'t opened, we

2 would like to see other alternatives that

3 addresses our extenuating circumstances.

4 MR. HEMMINGSEN: Thank you. I believe

5 that demands a response from Commissioner

6 Adelstein.

7 COMMISSIONER ADELSTEIN: Yeah. I

8 really feel terrible about what happened to

9 KTEQ. I grew up actually listening to that

10 station, and it provided the kind of diversity

11 that we\'re talking about today. I heard all

12 kinds of great new music there. It was

13 creative, it was different. It\'s tragic it went

14 off. Of course it went off before I got to the

15 FCC.

16 But unfortunately, the rules were that if

17 there was no broadcast for one year, that under

18 our rules it was automatically suspended.

19 The question is how do we get it back on the

20 air because nobody wants to get it back on the

21 air more than I do. I know my colleagues would

22 be concerned as well because of the quality of

23 it and the important contributions that KTEQ

24 made to this community and it should be able to

25 make once again.

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1 We do not have an open window at this time

2 that\'s open for a number of reasons, which I

3 could go into in a separate discussion with you,

4 if you want. But we\'ve been restrained by

5 ongoing proceedings that we have, including

6 judicial challenges that we\'ve faced concerning

7 the Commission\'s policies for the use of the

8 broadcast spectrum.

9 When we do have an open window, we want to

10 work closely with KTEQ as we have in the past

11 and with the School of Mines to try to make sure

12 that you do have the opportunity to apply and to

13 restart that service which was so great for the

14 community.

15 MR. HEMMINGSEN: Commissioner Copps,

16 anything to add to that?

17 COMMISSIONER COPPS: I would just

18 add \-- and I agree with what my colleague said.

19 This wasn\'t a matter of Commission discretion.

20 This is Section 312(g) of the Communications

21 Act, which specifically says if a broadcasting

22 station fails to transmit broadcast signals for

23 any consecutive 12-month period, then the

24 station license granted for that operation

25 expires. So it\'s not a situation

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1 where we have any discretion.

2 MR. HEMMINGSEN: Sir, does that clarify

3 things for you at all?

4 MEMBER OF THE PUBLIC: Yes. I\'m

5 wondering in predicting the future if there\'s

6 any guesstimate as to when that window could

7 conceivably be opened? The problem is, of

8 course, our students kind of lose interest as

9 they don\'t have that opportunity, and we\'re very

10 concerned about that.

11 COMMISSIONER COPPS: I think with some

12 of the underbrush cleared away that that might

13 be relatively soon. I would point out, I think

14 that our staff has been pretty good in trying to

15 reach out and keep the students apprised of the

16 process and what they need to do, and we will

17 continue to try to do that and make sure that

18 this thing proceeds.

19 MR. HEMMINGSEN: Thank you. Let\'s go

20 to this podium. Ma\'am.

21 MEMBER OF THE PUBLIC: My name is

22 Lindsey McLean, and I want to address a subject

23 that I haven\'t heard brought up here yet and

24 that a lot of people are very upset about

25 including in your FCC changes, and that is

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1 called the BPL, or the broadband over power

2 lines.

3 I\'m concerned about the elimination of these

4 bands used by shortwave and ham radio operators,

5 as I understand the new changes of FCC will do.

6 These radio frequencies have been used

7 extensively in emergency situations and

8 especially important when commercial

9 broadcasting failed or was not available, like

10 in rural environments like South Dakota is.

11 These public airwaves need to be preserved,

12 especially in these globally fragile times. I

13 am very much in favor of expanding Internet and

14 broadcasting to rural areas. However, this

15 development should not be at the extermination

16 of shortwave and ham radio.

17 Why does the FCC choose this path and what

18 can be done to preserve shortwave and ham radio?

19 In actuality shortwave and ham radio should even

20 be expanded, in my opinion and in the opinion of

21 a lot of other people due to the fragility of

22 these global times.

23 MR. HEMMINGSEN: Thank you.

24 Commissioners?

25 COMMISSIONER ADELSTEIN: Not really on

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1 the topic of media localism, but just to respond

2 briefly, we don\'t want to do anything that

3 would cause interference to ham radio operators.

4 We do want to explore the possibility of

5 broadband over power lines and open a new

6 pipeline into these homes for broadband.

7 But we are committed to insuring that is

8 done in a way that does not cause harmful

9 interference to other users, legitimate users.

10 We consider ham operators and others to be a

11 critical part of the communications system of

12 this country that we are sworn to try to

13 protect.

14 MEMBER OF THE PUBLIC: I think not.

15 COMMISSIONER ADELSTEIN: We\'re going to

16 try.

17 MR. HEMMINGSEN: Thank you. Over here,

18 ma\'am.

19 MEMBER OF THE PUBLIC: My name is Barb

20 Evenson, and I\'m here representing

21 Blackhillsmusic.com and the Black Hills

22 Songwriters Invitational. The Black Hills

23 Songwriters Invitational annually showcases up

24 to 200 local songwriters in as many as 12 cities

25 and two states.

149

1 We have \-- we\'ve actually gained a national

2 reputation as a mecca for songwriters. We\'ve

3 had songwriters from as many as 20 states and as

4 far as away as Canada participate.

5 This event \-- this is a lively, inspiring,

6 community-building event, and it is a direct

7 testimony to the power and the importance of

8 localism.

9 It has happened for six years. It has a

10 tremendous ability to draw communities together.

11 I\'ve seen Hill City bands and Hill City

12 professional bands and high school students all

13 participating on the same stage with 200 people

14 packing a small place.

15 It\'s a tremendous event. It happened

16 because Bob Swenson of House Blend on

17 South Dakota Public Radio said, \"I\'ll record

18 you. I will come to the Black Hills and I will

19 turn on my recorder and I will listen to the

20 people who write music. I\'ll listen to the

21 people who write poetry. I\'ll record them and

22 I\'m playing them on statewide radio.\"

23 The effect of that on young people, on

24 40-year-old songwriters, on 60-year-old

25 songwriters, on people in Hill City, on people

150

1 in Hot Springs, people in Custer, people in

2 Deadwood, people in Rapid City, people in

3 Newcastle, Wyoming and Upton, Wyoming has been

4 tremendous.

5 After six years I am still amazed at the

6 quality and the passion of these people. Some

7 of them have gone on to careers. Last night

8 Haley Bonar played at One Time Home Time Show.

9 She\'s now signed to a record label.

10 We have people like Jill Ann Crossland,

11 National Fingerpicking Champion, who

12 participates. It\'s a lovely event, and it is

13 solely because Bob Swenson, an individual and

14 South Dakota Public Broadcasting said yes, we

15 care about what you do. Thank you.

16 MR. HEMMINGSEN: Thank you very much.

17 Over here, sir.

18 MEMBER OF THE PUBLIC: I\'m Dow McLain,

19 10-year resident of Lawrence County in the

20 Northern Hills. And my concern is the waiver

21 requirement. I\'m a 10-year subscriber or about

22 10-year subscriber to satellite television. I

23 do not have access to cable. I\'m in the rural

24 area of the Hills, and reception is not that

25 great.

151

1 I bought the satellite system in \'95 after

2 experiencing \-- or trying to watch local TV on

3 poor video for over a year. I decided to invest

4 the money in satellite television and get a

5 digital quality picture at my location.

6 About a year later, all of a sudden all my

7 access to the ABC, NBC, and all that was cut

8 off, and I had to request a waiver to watch NBC

9 or ABC or CBS or those nationwide broadcast

10 companies. I was very lucky. KEVN was

11 very cordial and afforded me a waiver. However,

12 some of the other companies would not afford me

13 a waiver.

14 I think it is not in my interest to have to

15 go out and seek a waiver for something that I\'m

16 paying for and I can receive over the airwaves.

17 I want to watch local TV. I can still do that.

18 I have to put up with a poor quality picture,

19 but I am not ignoring local TV, but I think I\'m

20 afforded a privilege of having a quality picture

21 and being able to watch a quality picture and a

22 program of my choice. Thank you. MR.

23 HEMMINGSEN: Thank you. Over here.

24 MEMBER OF THE PUBLIC: My name is

25 Marvin Kammerer. I ranch out in Meade County,

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1 South Dakota. My granddad walked in here with a

2 freight train in 1880. From that land, the land

3 of the Lakota \-- I\'m a Wasicu living on treaty

4 land.

5 From that land my grandparents sent two sons

6 to fight in World War I. Lost one of them there

7 a few days before the declaration that it ended,

8 one who even though he received the coeur de

9 grace, it didn\'t do him any good. And that

10 grandma was always looking for him to walk

11 through the door.

12 Diversity. We have another culture here and

13 a very honorable culture. I\'m asking you

14 people, you who have this responsibility,

15 treasure it but treat it with respect: The

16 culture of the Lakota.

17 The great Chief Crazy Horse who served his

18 people well, who always thought of his people,

19 gave his life for his people, a man who was born

20 in this vicinity, a man whose spirit should be

21 honored by all of us, because this is treaty

22 land and the Lakota is a rich culture. The

23 cowboy and the Indian culture have a lot more in

24 common than they have in difference, because

25 we\'re from the land.

153

1 There is one thing that I don\'t like about

2 the local programming, and mostly I\'m dealing

3 with radio, is that there used to be local talk

4 shows. Now there is none. When I come in and

5 turn on the radio, it\'s like reaching for the

6 refrigerator to get a cold glass of milk and put

7 it to your lips and find out it\'s clabbered,

8 because I\'m picking up syndicated programs that

9 are directed mostly to the neocon efforts of the

10 governments in this country. They call it

11 political agenda. And I find it disrespectful

12 of my brothers and my family who have served

13 this country in World War I, World War II, and

14 the Vietnam War and the Korean War.

15 MR. HEMMINGSEN: Thank you, sir. I

16 think that the Commissioners would like to add

17 something to your remarks.

18 COMMISSIONER ADELSTEIN: I just thought

19 that was very insightful. Thank you very much

20 for sharing that.

21 MEMBER OF THE PUBLIC: Thank you. And

22 let\'s not forget: Big television\'s needs have

23 to be \-- big radio has to be controlled.

24 Remember what happened with Enron.

25 MR. HEMMINGSEN: Thank you very much,

154

1 sir. You made your point very eloquently. Over

2 here, sir.

3 MEMBER OF THE PUBLIC: I\'m Tom Ketel,

4 self-appointed community gadfly, and I

5 especially attempt to make us all responsible

6 for racial relations in this community. I was

7 born and raised on the Standing Rock Sioux

8 Reservation. My dad used to say, \"Ah, they\'re

9 all sons-of-bitches anyway. Do whatever is

10 right.\" And by sons-of-bitches he meant generic

11 public opinion, that you had to stand up even

12 when there was overwhelming views that were

13 different.

14 I\'ve been a resident of Rapid City off and

15 on since I was at South Dakota School of Mines

16 and Technology and for the last 16 years

17 continuously. I especially appreciate

18 Commissioner Adelstein bringing this here. In

19 my judgment, he was always the most professional

20 of a very professional staff. So thank you very

21 much, Jonathan.

22 I also feel a personal connection and high

23 respect for Bill Duhamel. I was a janitor for

24 his mother when I went to South Dakota School of

25 Mines. And when Judy Olson and I used to come

155

1 into the chamber meetings, he\'d say, \"Here comes

2 the commie and the Pinko.\" Well, he married the

3 Pinko, so maybe there\'s some help.

4 Five years ago I was asked to be a member of

5 the statewide forum Future of Media and

6 Democracy. This was sponsored by the Chiesman

7 Foundation for Democracy. When the executive

8 director issued a rosy scenario report not

9 reflecting what went on in the session and

10 certainly dissenting views, I filed a report.

11 I have submitted this to both the

12 Commissioners, and I\'m not going to bore you

13 with a lot of detail, but I just want to put out

14 one little piece, and this was six years ago.

15 Our major talk radio station in Western

16 South Dakota has three hours of Rush Limbaugh

17 followed by three hours of Dr. Laura followed

18 by gun-nut and ex-con G. Gordon Liddy with two

19 hours in the evening. Such intensive right-wing

20 coverage lacks considerable balance.

21 The problem is not just the stations with

22 the imbalanced right-wing national commentary

23 but especially the blanket conformity that this

24 promotes to the 40 percent of us who I still

25 consider sane out here.

156

1 This is reinforced by our own people and our

2 own institutions who are cowed by this

3 mentality, in this case especially the Chiesman

4 Foundation for Democracy that refuses to listen

5 to free speech.

6 In closing, I\'d like to say I will continue

7 to be a gadfly and it\'s not much fun.

8 MR. HEMMINGSEN: Thank you, sir.

9 MEMBER OF THE PUBLIC: But a lot of the

10 sons-of-bitches in this audience are my friends.

11 MR. HEMMINGSEN: Thank you, sir. Over

12 here.

13 MEMBER OF THE PUBLIC: Hi, I\'m Renae

14 Parker. I\'m the Executive Director \--

15 MR. HEMMINGSEN: I should remind people

16 that this deals with localism, just in case.

17 Yes, go ahead.

18 MEMBER OF THE PUBLIC: I\'m Renae

19 Parker, and I\'m the Executive Director of United

20 Way of the Black Hills, and I am here to talk

21 about localism. Representing United Way of the

22 Black Hills I suppose that you think that I\'m

23 here to talk to you about how wonderful the

24 media is in helping us fundraise. And I\'m here

25 to say yes, they are.

157

1 They cover our absolute every event. They

2 are at our kick-offs, they are introducing all

3 of our 650 Day of Caring volunteers who go out to

4 do volunteer service every year. They go out

5 and cover those events. They bring it back to

6 the news media, they show it on TV. The next

7 day, they cover it on radio. But that\'s just

8 one thing, and that\'s not what I\'m most proud of

9 the media about in this community.

10 What I\'m most proud of is I frequently get

11 phone calls from our TV stations, all three of

12 them. And they\'ll say, Renae, we really want a

13 good story. You know you hear a lot about how

14 they only cover the bad stuff. Well, that

15 doesn\'t happen so much here.

16 They are calling saying, Do you have a great

17 story? I know those United Way videos, you\'re

18 always making people cry with those wonderful

19 stories. Do you have some that you can feed to

20 us.

21 So I challenge everybody out here in the

22 audience, if you\'ve got those great stories,

23 channel them to me, channel them to the TV

24 stations because I guarantee that in this local

25 community, they are going to be heard. Thank

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1 you.

2 MR. HEMMINGSEN: Thank you, Renae. And

3 I can add in my experience of 35 years in KELO

4 Land what she says is true. They are always

5 looking for good stories, and there are days

6 when they are looking for any stories. Over

7 here.

8 MEMBER OF THE PUBLIC: Good evening,

9 Commissioners. I\'m First Lieutenant Megan

10 Schaeffer, Deputy Chief of Public Affairs Office

11 at the Air Force Base east of Rapid City. In

12 taking in the Black Hills area climate, one

13 can\'t help but see the strong military presence.

14 At Ellsworth alone we make up approximately

15 9,000 individuals, that\'s active duty and their

16 families, who all have important needs and

17 issues. And I\'m happy to say that the media

18 does a great job of covering those.

19 We have a great relationship that exists

20 with our community and this includes with the

21 local media. And by no means is this

22 relationship minor to us but very critical,

23 critical in the importance of our military to

24 the area, but even telling the American public.

25 Additionally, the relationship is important

159

1 to us in showcasing the wonderful men and women

2 that proudly serve at Ellsworth and the

3 equipment that allows us to accomplish our

4 tasks, all important to educating taxpayers on

5 how we are effective and efficient in spending

6 the monetary resources provided to us.

7 Finally, our relationship is also important

8 because though we as military members are very

9 often frequently gone, we are also part of the

10 community and value issues important to us as

11 military members, coverage of our events and

12 personnel.

13 Through the media we are able to get this

14 coverage through coverage of base events,

15 deployment features on our personnel, and our

16 mission. And even more importantly inclusion of

17 us as fellow members of the community, and

18 especially when we\'re gone, inclusion of us as

19 members of the military including our family

20 members in events and things like that.

21 Bottom line: Good news. The local media

22 have done an outstanding job communicating

23 issues that are important to us as military

24 members and also members of the Rapid City

25 community. Thank you.

160

1 MR. HEMMINGSEN: Thank you very much.

2 Over here.

3 MEMBER OF THE PUBLIC: My name is

4 Charlie O\'Douglas. I\'m Operations Manager for

5 Rushmore Radio here in Rapid City. Also serve

6 on the Board of Directors of Black Hills Area

7 American Red Cross and consider myself a public

8 servant.

9 I would like at this moment \-- I\'m sorry

10 that Mr. Short Bull is not here to hear this or

11 at least give me an opinion. Diversity is a

12 very important issue as far as I\'m concerned. I

13 very much appreciate where the Black Hills came

14 from and what they have grown into today.

15 I understand the plight of our Native

16 American brothers and I appreciate that. But

17 right now I would like to issue on behalf of all

18 of Rapid City media, if I may be so bold, a

19 challenge to all the Native American community

20 leaders and tribal councils to partner with us

21 to open a line of communication and to converse

22 with us about the needs of your communities.

23 We right now do not utilize our high

24 situation with availability of communication

25 through fax, telephone calls, and other types of

161

1 positive communication to be able to express the

2 needs and concerns of the Lakota and Native

3 American population in Rapid City and throughout

4 Western South Dakota.

5 I reissue this challenge to open up

6 communities. Do not make it the media\'s

7 responsibility to search out your needs and

8 concerns. But please take every avenue to give

9 us a voice so that we can hear them. Thank you

10 very much.

11 MR. HEMMINGSEN: Thank you. Sir.

12 MEMBER OF THE PUBLIC: Good evening.

13 My name is Mike Farret. As a member of the

14 South Dakota Peace and Justice Center, the

15 South Dakota Peace and Justice Center, for week

16 after week I was part of a peace coalition

17 trying to persuade our country not to go to a

18 war in Iraq.

19 And of course we watched the media reports

20 that we received with great interest, and I was

21 pleasantly surprised that the media coverage I

22 thought for the most part was balanced in the

23 Rapid City area.

24 I\'d like to see more in-depth coverage,

25 however, although I realize the nature of the

162

1 medium and its limitations. Originally my

2 question was going to be addressed to Michael

3 Powell, and quite frankly because it was his

4 father that helped persuade this country,

5 rightly or wrongly, to embark on \--

6 MEMBER OF THE PUBLIC: Point of order.

7 MEMBER OF THE PUBLIC: Can I finish?

8 MR. HEMMINGSEN: Well, yeah. I\'d like

9 to get to the localism part of this though.

10 MEMBER OF THE PUBLIC: Well, I\'d like

11 to finish my question. My \-- while we were out

12 protesting week after week, Clear Channel

13 apparently was promoting and producing their own

14 news coverage, the media conglomerate Clear

15 Channel. I would like to know if the FCC, if

16 this charge is substantiated, if they think that

17 is an appropriate use of an FCC license. That\'s

18 how it applies to local coverage. Thanks very

19 much.

20 MR. HEMMINGSEN: Over here. Ma\'am.

21 MEMBER OF THE PUBLIC: Okay. Hello.

22 Thanks for being here, Commissioners. My name

23 is Roberta Hilliger and I\'ve been a DJ at KTEQ

24 for 24 years. If you\'ll recall the information

25 Tim Henderson brought up, that\'s the same

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1 station. And it\'s broadcast from the Tech

2 campus, noncommercial FM college radio station.

3 And each DJ gets to program all their own music.

4 Now it\'s gone. My brother was a student

5 here at Tech, and I took over his show in 1979

6 when the students left for the summer. I was

7 asked to stay due to a great response from

8 listeners. I played Chicago, R&B, Motown,

9 world, jazz, and folk. And people called in to

10 ask what I was playing. Some they had never

11 heard before. And I never know who listened,

12 but I always heard from new people local music

13 stores could tell what I was playing by what

14 customers were asking for. Our station had

15 quite a few native DJ shows and managers. Soon

16 I even had teenagers phoning in to request

17 Billie Holiday, Frank Sinatra, bagpipes,

18 Hendrix, gospel, or local music I played.

19 I heard also that a high school creative

20 writing class listened to the show, which is a

21 nice \-- it was nice since there\'s not music in

22 the schools so much. They had KTEQ on the air.

23 It was a good way to connect local art

24 lovers also. Some DJs were called upon in

25 approximately 1982 to help start Backroom

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1 Productions, a sorely needed local arts outlet

2 which led to Concerts in the Park that still go

3 on today.

4 My son-in-law books bands traveling through

5 the Black Hills, and he says that without KTEQ

6 on the air, the local music scene is not as

7 active. I\'ve been interviewed at WGN radio in

8 Chicago and KTEQ is lauded by them on a regular

9 basis as free programming like theirs.

10 And I\'m on their Web site solely for the

11 glory of music and radio. And they asked me to

12 phone in the Sturgis Rally reports and celebrity

13 sightings.

14 MR. HEMMINGSEN: All right. Thank you,

15 ma\'am. I believe the Commissioner has something

16 he wants to say.

17 COMMISSIONER ADELSTEIN: Just real

18 quick. That really is what localism is about

19 and it\'s tragic KTEQ isn\'t being heard. I

20 probably heard you when I came back from

21 college, and that is the kind of thing we like

22 to hear.

23 But Congress passed a law that we are just

24 implementing that says that if you don\'t

25 broadcast for 12 months, you\'re cut off. We

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1 have no choice or no discretion in the matter.

2 We will make every effort when a new window

3 opens to do that quickly and to insure you are

4 aware of it and that you have every opportunity

5 to apply and get your license reinstated.

6 MEMBER OF THE PUBLIC: Great. Thanks.

7 MR. HEMMINGSEN: Thank you. Yes, sir.

8 MEMBER OF THE PUBLIC: Good evening.

9 My name is Dean Kinney. I\'m the general manager

10 of KBHB radio in Sturgis. Commissioner

11 Adelstein, Commissioner Copps, we appreciate you

12 coming. To the distinguished panel, I have just

13 a couple of short remarks.

14 One is that at KBHB we are committed to

15 localism. We\'re committed to local news. We do

16 operate with a full-time news department and a

17 full-time news director. We have a long-time

18 commitment to the farm and ranch community to

19 which we serve. We have a wide variety of

20 programming that includes local cowboy artists.

21 It includes a weekly Sunday morning program, The

22 Lakota Gospel Hour, which has aired for I

23 believe about 20 years on KBHB each Sunday

24 morning.

25 We\'re local to the core, and we think that

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1 it\'s the secret to our success today. It\'s a

2 long-time tradition started by the late State

3 Senator Les Cleavin and his wife, State

4 Senator Marguerite Cleavin who, I believe, here

5 in the audience tonight.

6 But my point is, we are not locally owned.

7 Today we are owned by Triad Broadcasting Company

8 out of Monterey, California. My staff and I are

9 very proud to work for Triad. It\'s a company

10 that has invested more capital into our radio

11 station than the previous owners combined.

12 They\'ve made a strong commitment to our radio

13 station, to its people, to this area, and they

14 support our localism in every way.

15 We have an obligation to them to provide a

16 return. We have an obligation to our employees

17 to provide a return. We have an obligation to

18 our audience to provide localism, and those

19 things are not in conflict, and in fact, can

20 work together.

21 So I would ask the Commission in the future

22 ask not who owns it or if it\'s a large group

23 that owns it, but instead ask what is the

24 integrity of the company that owns it, and what

25 is the commitment of that company to localism.

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1 And to Triad Broadcasting, that commitment is

2 high. Thank you.

3 MR. HEMMINGSEN: Thank you. Over here.

4 MEMBER OF THE PUBLIC: Hi. Yes. My

5 name is Mike Temme. I\'m a graduate student here

6 at the School of Mines. And I\'m very glad that

7 the FCC came to such a small and remote

8 community or remote city such as Rapid City.

9 But the fact is, all over America is currently

10 suffering a mass exodus. Many of us in this

11 room have grown up and still live in small-town

12 America. This is the Heartland of America, this

13 is the bread basket of the world. Yet, when

14 small-town residents turn on the radio and TV

15 and they are constantly flashed images of

16 Hollywood, it engenders a sense of alienation

17 from the broader commercial society which is

18 becoming an increasingly generic, materialistic,

19 and shallow society.

20 It feeds the desire to leave their

21 community. But if you allow them to see the

22 images of a unified agrarian community and all

23 that it has to offer, it can instill a sense of

24 pride in small-town America. Preserve localism

25 and you can preserve the traditional fabric of

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1 America. Thank you.

2 MR. HEMMINGSEN: Thank you.

3 MEMBER OF THE PUBLIC: Hello, my name

4 is Patt Haugen. I\'m speaking on behalf of a

5 small group of Rapid Citians lobbying for a PEG,

6 which stands for Public Education Government

7 community channel here in Rapid City.

8 We\'re also petitioning the city council for

9 a city wide 211 phone system as currently exists

10 in Sioux Falls and elsewhere throughout the

11 nation.

12 A 211 phone system is similar to 911 in that

13 it is reserved nationwide so that a person can

14 call and make an inquiry as to any social

15 service provided within a community, whether

16 governmental or private, and speak with a highly

17 trained person knowledgeable in detail with all

18 services available within a community in

19 conjunction with specially developed software.

20 We would like to suggest that the FCC push

21 for cable companies to set aside cable

22 television channel 111 nationwide for use by our

23 own and other communities as a dedicated social

24 services channel. This would clearly work very

25 synergetically with promoting the 211 telephone

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1 number.

2 Studies have shown that the runaround and

3 social awkwardness and discomfort associated

4 with such inquiries often prevent such inquiries

5 from ever occurring to get help. By far video

6 is the most powerful and most effective

7 communication medium and reaches into everyone\'s

8 living rooms.

9 A nationwide 211 channel and phone

10 combination could act as a nuclear agent to,

11 one, bring the multi-varied agencies in a

12 community together in a new way; and two, enable

13 tracking of and sharing of information in a

14 community such that prevents a community versus

15 individual level can be attempted, and the

16 results meaningfully tracked even while full

17 anonymity is maintained.

18 My topic, community access cable television

19 and 211 phone system: True localism.

20 MR. HEMMINGSEN: Thank you.

21 MEMBER OF THE PUBLIC: Welcome,

22 Commissioner Adelstein and Commissioner Copps.

23 We\'re happy to have you here. I\'m Mary

24 Wickler-Peterson. I\'m with the Rapid City YMCA.

25 We serve over 23,000 members of our community.

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1 My responsibilities at the Y are try to get the

2 word out about the YMCA through publicity.

3 I have a lot of friends here in this room.

4 The local radio stations and particularly the

5 television stations have been very, very good to

6 us. They\'ve helped us in putting out PSAs on

7 several different subjects. It could be general

8 information on the YMCA or perhaps an

9 announcement about a community street dance that

10 we open up to the public every year.

11 Another thing that we do every year is a

12 kids sponsorship campaign, and the television

13 stations have been very wonderful to us in

14 helping us get out the word about our mission in

15 that we don\'t turn anyone away from the YMCA

16 because of financial assistance.

17 Our campaign is asking the public to sponsor

18 a child to the YMCA. It\'s also a means of

19 educating the community about what the YMCA

20 does.

21 Also, gosh, Don Grant at KOTA radio has us

22 on every month to talk about the different

23 things that we have going on at the YMCA. Cindy

24 McNeill has invited us to be on and send our

25 PSAs to KEVN. Bobby Marchesso at KNBN has us on

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1 every month as well. They\'ve been very, very

2 good to us.

3 One other thing I wanted to mention is John

4 Peterson came to us at the YMCA a couple years

5 ago. We have a preschool there. We serve over

6 a couple hundred kids in our preschool program.

7 KOTA was involved in the Great American Toy

8 Test, and he wanted our preschool kids and their

9 teachers to try out the toys, and then they

10 would report on them and do several reports on

11 the media, and then we would let the toy

12 companies know what our kids thought.

13 And as a result, we got to keep the toys.

14 And it was a very, very nice gift actually for

15 our preschool.

16 MR. HEMMINGSEN: Thank you very much.

17 The next speaker is Mark Millage of KELO TV. I

18 hired him and then he kept me around. Mark.

19 MEMBER OF THE PUBLIC: Thank you,

20 Steve. And good evening and thank you for this

21 opportunity. As Steve said, I am Mark Millage.

22 I\'m the news director and have been for the past

23 15 years at KELO television in Sioux Falls. As

24 Mark Antonitis explained earlier, KELO Land is a

25 community that encompasses all of South Dakota

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1 and many counties in southwest Minnesota,

2 northwest Iowa and northeast Nebraska.

3 I\'m also the past chairman of the Radio

4 Television News Directors Association and

5 currently the treasurer of the Upper Midwest

6 chapter of the National Television Academy. As

7 a result, I\'ve had the opportunity to watch a

8 lot of television news around the country and

9 have identified a problem that\'s not unique to

10 South Dakota.

11 As you may or may not realize, and as we see

12 it, our main and most important public service

13 is public safety. And if you have any question

14 about that, I can\'t think of any other event

15 than a tornado warning that would cause us to

16 interrupt the finale of Survivor, and we did.

17 We\'ve poured millions of dollars into live

18 Doppler radars, into weather nets that track

19 local temperatures from Mission to Marty to

20 Madison, Minnesota.

21 And at this point we need your help with

22 something. The FCC requires cable operators to

23 interrupt all channels on the system during

24 severe weather information. One of the problems

25 with that is that during a live local broadcast

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1 of severe weather, a slate comes up with a tone

2 and a computerized voice telling you to turn to

3 a different channel, at which point you will get

4 a very slow crawl with very general information

5 thereby missing what you are getting from the

6 local broadcaster pinpointing that severe storm

7 or that tornado down to a city block. That\'s

8 what the technology can do.

9 And we\'ve had a number of occasions, even

10 during that Survivor finale, but also during

11 local newscasts, during local weathercasts,

12 where we\'re providing direct and immediate

13 weather information and had that system

14 interrupt our signal along with all local

15 broadcasters to tell people to change the

16 channel.

17 So what we\'re asking is that you simply

18 review this policy and make a change and exempt

19 local broadcasters from this requirement. Thank

20 you.

21 MR. HEMMINGSEN: Thank you.

22 COMMISSIONER ADELSTEIN: Thank you,

23 Mark. We will explore that. I wish Park Owens

24 was here to respond as well, because we want to

25 make sure people get the best information

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1 possible. So we\'d like to follow up with you on

2 that.

3 MR. HEMMINGSEN: I think he\'s catching

4 a nap under the desk, I think.

5 COMMISSIONER ADELSTEIN: He\'s

6 responding to an emergency.

7 MR. HEMMINGSEN: Over here, ma\'am.

8 MEMBER OF THE PUBLIC: My name is

9 Dierdre Monahan. And I have a short story about

10 why localism in broadcasting matters to me.

11 June 29th, 2002 the Grizzly Gulch fire broke out

12 near Deadwood, South Dakota. As with any

13 disaster that befalls a human family,

14 communications became paramount. Where your

15 people are, what is happening to them can become

16 impossible to figure out and most urgent.

17 The entire town of Deadwood and later some

18 of Lead was evacuated. Many people had no way

19 of knowing who was safe, where their families

20 were, how to reach them, and if anyone needed

21 anything.

22 The fire started on a Saturday afternoon.

23 The whole crew of a locally owned and operated

24 radio station, KDDX, came to the radio station

25 by nightfall. Residents of the Black Hills

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1 began calling in in desperation to see if their

2 wife or husband was listening, could the DJs

3 please confirm that they were okay. If their

4 teenager tried to get home and was stopped,

5 could they please call Grandma\'s right away.

6 Could you please tell the neighbor that I have

7 her dog and he\'s fine.

8 It snowballed. For several days and nights

9 the crew at X-ROCK stayed on the air helping our

10 community. At one point, someone called in and

11 over live radio told one of the DJs, Jack, that

12 his house was burning down. Later one of the

13 folks live near the fire was able to report

14 Jack\'s house was still standing.

15 Other local families were not so lucky.

16 They lost everything. People immediately

17 started calling in to get a funded donation

18 drive started for them. Because of a handful of

19 people who belonged to this community and

20 because of a radio station who allowed them to

21 stay on the air, KDDX became a clearing house of

22 information for a wounded community.

23 Only a handful of houses were lost in the

24 fire thanks to the firefighters. But they were

25 not the only heroes. KDDX and the employees

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1 there helped hold our community together in a

2 way that Clear Channel Radio never could.

3 As Tom Daschle said when he called in to

4 talk with Jack and Tom on the air, it\'s kind of

5 one big neighborhood and you, the radio station,

6 have helped make it that way. Thank you.

7 MR. HEMMINGSEN: Thank you.

8 MEMBER OF THE PUBLIC: I\'m Jim Kindy

9 with Catholic Social Services. And you know,

10 just to go along with what many of the other

11 nonprofits have stated, you know, I don\'t know

12 how we would exist without the commitment that

13 we have from our local radio stations,

14 television stations. They do extraordinary work

15 for us.

16 As a small nonprofit we have no fund \-- no

17 kind of media budget. That\'s not an expense we

18 can afford. And their willingness to reach out

19 and not only provide information about programs

20 or services they might benefit from us, but also

21 just from time to time when you are trying to

22 manage an organization and you don\'t know about

23 media, and you\'re trying to figure out how to

24 communicate about needs of kids and families, to

25 have local people that work for a media come to

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1 us to say, you know, this is a good way for you

2 to get this message out.

3 Not only donate the time to do that, but to

4 help us design something to communicate

5 realistically about community needs and try and

6 help educate those of us that are parents, like

7 myself, of four kids, what the needs are, what

8 the challenges are of our kids in our

9 communities and how to go about meeting those.

10 So my hats are off to the media here.

11 One other just really simple example that I

12 point out was when we were going through the

13 blizzards of \'97, which had just a devastating

14 impact in the northern region of our state here.

15 And we were having cattle \-- losing hundreds,

16 tens of thousands of cattle literally.

17 To have someone like Deb Jensen come up and

18 say \-- you know, in that life-threatening kind

19 of situation, in the middle of whiteout snow

20 blizzards, her saying people in Rapid City need

21 to know about this and was willing to ride and

22 bounce across in snow and deep snow to try and

23 communicate that story and its impact to local

24 citizens in our state is extraordinary.

25 You know, the Sturgis radio station that

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1 spoke earlier, took the time to actually get

2 five minutes of air time every day during that

3 disaster to local ministers to try and provide

4 some encouragement and support for families that

5 we\'re really economically devastated just very,

6 very grateful for their commitment to our local

7 communities, our local families, and our

8 children. Thank you.

9 MR. HEMMINGSEN: Thank you. Yes, sir.

10 MEMBER OF THE PUBLIC: Thank you.

11 Commissioners and members of the panel, it\'s

12 great to be here tonight. My name is Lyman

13 Gifford. I\'m the director of the Black Hills

14 Area Council of the Boy Scouts of America. I

15 want to before I make my comments, I want to

16 thank your staff who has supported you to make

17 this possible. I think sometimes we forget how

18 important the staff is. So I want to thank

19 them. I\'d also like to thank those who are

20 providing interpreting services for the hearing

21 impaired so that they can also participate with

22 us. So thank you for that.

23 We have a strong relationship with both TV

24 and radio here within the Rapid City area.

25 We\'re grateful to the three TV stations KNBN,

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1 KOTA and KEVN. We\'re also grateful to the radio

2 stations, Rushmore Radio, KKLS, KIMM, KRCS, Hot

3 93 KFXS, KOUT, excuse me, KKMK and others such

4 as KSLT, KDSJ, KBHB, and KOTA. I mention all

5 those because those individuals, those managers,

6 and those stations are very active in promoting

7 the scouting program.

8 I heard a comment earlier tonight a couple

9 times that concerned me. I hope I

10 misunderstood. You talked about media being

11 used for fundraising. Well, I would hate to be

12 able to raise the money that we need to raise to

13 run our programs without their help.

14 We serve kids where they are, but we raise

15 the money where the money is. We offer year

16 round support and promotion to a variety of

17 functions, not just fundraising. This support

18 is crucial to any community, but especially in

19 an area geographically spread as we are.

20 In the past four and a half years we\'ve

21 worked tirelessly to reach out to the Native

22 American community. And thanks to our local

23 media who have played an integral part we have

24 now reached out to where over four years ago we

25 served less than 100 kids, we now serve over 180

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1 Native American youth. Thank you to the local

2 media for making that possible.

3 We also want to thank them for our

4 recognition we received recently from our

5 national organization: A marketing award. We

6 brought home two of five marketing awards, and

7 one of them had to do with their involvement

8 with us. We thank you for your time and for

9 your listening.

10 MR. HEMMINGSEN: Thank you, sir.

11 Ma\'am.

12 MEMBER OF THE PUBLIC: My name is Hazel

13 Bonner, and I\'m a sociology professor at Oglala

14 Lakota College and a freelance writer. I speak

15 with a little different message. I work with

16 indigenous and indigent populations in the area,

17 and I do not believe that the broadcast media

18 does a good job of covering those issues.

19 My students at Oglala Lakota College have

20 done some pretty major research projects, and I

21 have provided news releases and copies of the

22 research reports to the broadcast and print

23 media, and it has not gotten printed or

24 published. The Journal did do a Saturday Forum

25 article about one of the projects. That was the

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1 only coverage that it got locally.

2 Fifty years ago this next month in June the

3 city of Rapid City solved its Indian problem by

4 creating an apartheid community known as Sioux

5 Addition north of the city. In 2004, the media

6 has given a great deal of coverage to again

7 moving Indians off of Rapid Creek, and there has

8 been absolutely no coverage of any \-- no

9 interviews at all of homeless people that have

10 been displaced when the seven homeless camps

11 along Rapid Creek have been or will be

12 destroyed.

13 So we need to look at the effects on those

14 people, many of whom have been residents of

15 Rapid City since I came here over 30 years ago.

16 There\'s been no coverage of that. We\'ve heard a

17 lot of coverage about the benefits of cleaning

18 up Rapid Creek to the businesses, who I don\'t

19 believe live in the neighbor \-- in the

20 endangered habitat. But there\'s been no

21 coverage about what\'s happened to the people

22 that are being moved out of those areas. One \--

23 what\'s my time?

24 MR. HEMMINGSEN: You\'re still good.

25 MEMBER OF THE PUBLIC: During the flood

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1 in 1972 one thing that happened following the

2 flood was I was working on a flood recovery

3 effort, and I discovered that low income and

4 minority flood victims were being discriminated

5 against. A class action lawsuit was filed and

6 won by them. There\'s never been any coverage of

7 that.

8 At the time I don\'t recall if there was, but

9 10-, 20-, and 30-year celebrations have gone by

10 without any coverage of that.

11 MR. HEMMINGSEN: Thank you. Perhaps

12 Bill Duhamel would care to respond to that.

13 MR. DUHAMEL: I\'ve never heard that

14 story.

15 MEMBER OF THE PUBLIC: Okay. It\'s not

16 a story.

17 MR. DUHAMEL: No, I\'ve never heard it.

18 I was very involved with the flood. I was told

19 by somebody, a prominent Indian woman, that the

20 majority of the people killed in the flood were

21 Indian, which is absolutely untrue. But she

22 told me that and \-- but that story I have never

23 heard before, the discrimination, and I was \-- I

24 was \-- every day I was on the air.

25 MEMBER OF THE PUBLIC: I\'ll get you

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1 documentation of that.

2 MR. DUHAMEL: Pardon me?

3 MEMBER OF THE PUBLIC: I\'ll get you the

4 documentation of that.

5 MR. DUHAMEL: All right.

6 MR. HEMMINGSEN: Okay. Over here.

7 MEMBER OF THE PUBLIC: Thank you for

8 having this open forum so we can express our

9 views. I would like \-- I\'m here in support of

10 our local broadcasting stations. My passion and

11 my job is changing lives for kids. I work at

12 City/County Alcohol and Drug as a community

13 prevention specialist, and most people don\'t

14 even know what that is.

15 So briefly, it just is that we try to change

16 community perceptions about the use and the

17 acceptability of using alcohol and drugs,

18 particularly with youth. And our stations have

19 been overwhelmingly supportive of getting the

20 message out in communities, whether it\'s a

21 sporting event that\'s a drug-free alternative

22 event at Ellsworth Air Force Base, to the

23 opening of a youth center in Hill City,

24 South Dakota, to a drug-free parade in

25 Rapid City.

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1 Not only do they come and provide coverage,

2 but they also send people to serve on our local

3 coalitions. So not one person or one agency can

4 change those kinds of perceptions. So we need

5 the media, we need other \-- lots of people, but

6 media especially to educate people and to get

7 the word out.

8 Also in my agency, which is City/County

9 Alcohol and Drug, and is a treatment center and

10 a counseling center for people who are suffering

11 from addiction, we also have positive coverage

12 when good things are happening with our agency.

13 Oftentimes we have lots of negative coverage

14 because we treat sick people who are suffering

15 from addiction.

16 So in many ways the media has benefited us

17 and benefited our community. And I think they

18 are helping us take some of the first steps we

19 need to change. Thank you.

20 MR. HEMMINGSEN: Thank you, ma\'am. Guy

21 over here with a really colorful tie.

22 MEMBER OF THE PUBLIC: My mother said I

23 was way too conservative. She had to give me

24 the tie. Thank you, Commissioner Adelstein,

25 Commissioner Copps, thank you so much for the

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1 privilege of stepping up here to the mike and

2 supporting our good friends and the local

3 broadcasters. The local broadcasters truly are

4 wonderfully supportive of the not-for-profit

5 community.

6 My name is Roger Gallimore, Director of the

7 YMCA here in Rapid City. You heard earlier from

8 Mary. We reach over 23,000 different people

9 with programs and activities that bring all

10 sorts of people together in a sense of

11 community. And really what we\'re talking about

12 when we describe localism is community. It is a

13 sense of community.

14 And whatever tough issues that are out

15 there, I\'m pleased and proud that we have such

16 wonderful broadcasters who are willing to roll

17 up their sleeves with the rest of us and pitch

18 in together to work on these tough issues.

19 Talking about specifically with the YMCA, we

20 are a not-for-profit, community based

21 organization that directs whatever funding we

22 receive right straight into programs. And this

23 is a lot of programs for a lot of different

24 people. Simply put, we couldn\'t reach the

25 number of people we can without local

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1 broadcasters because we just don\'t have a

2 marketing-type of budget.

3 I\'m honored to report to you, the FCC, that

4 our local broadcasters \-- and I want to

5 particularly mention KOTA, KEVN, KNBN, KELO, and

6 the numerous radio stations. And I have to add,

7 you know, I see Bill up there and I so

8 appreciate Bill and what you folks do with KOTA

9 producing and airing our public service

10 announcements. I\'m pleased to report that these

11 are outstanding members of our community.

12 Please keep in mind that as a not-for-profit

13 community based organization, we do represent

14 the community. We are the community. We are

15 the heart of giving in the community. So it\'s

16 not supporting an organization. We don\'t exist

17 for and by ourselves. We\'re here for the

18 community. Consequently, whatever support we

19 receive is really support for the community.

20 Thank you very much.

21 MR. HEMMINGSEN: Thank you. Over here.

22 MEMBER OF THE PUBLIC: Good evening.

23 Thanks for this opportunity to speak. My name

24 is John Weidler. I\'m an instructor. I teach

25 writing and American Literature at Concordia

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1 University in River Forest, Illinois. I drove

2 here from Chicago with my partners. So here\'s

3 my question.

4 I was concerned to read Chairman Powell\'s

5 opinion that media industries connect products

6 and consumers rather than disseminate

7 information. This seems plausible on one

8 limited level, but it remains deeply disturbing.

9 Since media are the very tools with which we

10 meet one another as subjects and citizens and

11 aren\'t merely vehicles for commerce, the design

12 of our media landscape is of utmost importance.

13 We look to the shape of our communications to

14 see what democracy looks like.

15 So insofar as our communication technologies

16 bring together minds and communities and not

17 merely our wallets and cash registers, how will

18 you as members of the FCC work to discourage

19 this dangerous and specious notion that

20 communications should be regarded primarily as a

21 kind of commodity?

22 MR. HEMMINGSEN: Any response,

23 Commissioners?

24 COMMISSIONER COPPS: Well, I think one

25 way you do it is tackle the subject of media

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1 consolidation that we\'ve talked about. I don\'t

2 know about the particular quote that you

3 mentioned there, but I\'ve got a couple from CEOs

4 of major corporations, media corporations

5 saying: We have no obligation to make history,

6 we have no obligation to make art, we have no

7 obligation to make a statement. To make money

8 is our only obligation.

9 And I have another one here that says if

10 anyone says we\'re \-- I can\'t even make that out.

11 If we\'re \-- yeah. If we\'re \-- I\'m sorry. I

12 can\'t read that one. But it\'s the same thing,

13 the same thought. If you think we\'re in the

14 business of making news, we\'re in the business

15 of making money.

16 I think that\'s \-- that\'s the folks that

17 aren\'t here. That\'s the part of the problem I\'m

18 talking about. That\'s the danger that\'s over

19 the horizon for this place and every place in

20 the country if media consolidation continues.

21 It\'s that ethos. It\'s oblivious to the

22 public interest, and it just shows the evolution

23 of a wonderful industry, a dynamic industry and

24 a special industry into something that just

25 becomes another industry marching, as I said

189

1 before, to the unforgiving expectations of

2 Madison Avenue and Wall Street. So I think

3 that\'s one way you guard against that.

4 Another way you guard against it is to have

5 folks like you who take pride in your localism,

6 to give us the kind of input you\'re giving

7 tonight, be active in the license renewal

8 process.

9 We\'re in a great transition now to digital

10 television in this country. So these stations

11 that are programming one or two programming

12 streams into your market are going to be coming

13 with 6 or 12 or even more in some areas. We

14 don\'t really allow them to own three television

15 stations. What are their public interest

16 obligations.

17 We\'ve got 200 of those stations already

18 around the country that are multicasting

19 different program streams. How did they

20 discharge their obligation to children\'s

21 television, to covering community events?

22 Nobody knows.

23 The American people have a right to know.

24 The business should know too so they know the

25 rules of the road. But the American people have

190

1 a right to know how that spectrum is going to be

2 used to their advantage. And I think the way we

3 do that is highlight those issues, push those

4 issues, and have input from the American people.

5 MR. HEMMINGSEN: Thank you,

6 Commissioner. Next.

7 MEMBER OF THE PUBLIC: Welcome,

8 Commissioner Adelstein and Commissioner Copps.

9 My name is Jason Kahl. I\'m an alumnus of this

10 fine institution we\'re at here tonight as well

11 as a nine-year DJ up at KTEQ, KTEQ, the radio

12 station here on the School of Mines campus.

13 There\'s one issue I\'d like to talk about

14 tonight and that is radio. As you may well

15 know, commercial radio has a music director and

16 play list which results here in Rapid City if

17 you listen to commercial radio, you hear the

18 same song every day, day in and day out, over

19 and over.

20 For those of us with eclectic taste in

21 music, we\'re forced to listen to our CDs, our

22 cassette tapes, and even in the last six months

23 I\'ve drug out my vinyl and hooked my turntable

24 back up.

25 Just like we\'re a college radio station run

191

1 by the students and there\'s some of us old

2 fogies around, including three alumni of the

3 school who volunteer DJ\'d up there. There\'s 49

4 time slots in a week. Every three hours the

5 music format changes. Our only rule as far as

6 what music is played is that we\'re not allowed

7 to play any music that can be heard on any other

8 radio station or cable TV music channel.

9 So it\'s a wonderful outlet for alternative

10 music. I\'d just like to please ask you to open

11 a filing window for noncommercial broadcast

12 radio licenses. Thank you.

13 MR. HEMMINGSEN: Thank you, sir. Yes,

14 sir, the man in the blue shirt.

15 MEMBER OF THE PUBLIC: Good evening.

16 My name is Marshall Michels. I represent the

17 South Dakota Community for Employers Support of

18 the Guard and Reserve, part of the Department of

19 Defense. And we\'ve been fortunate enough to

20 team up with local radio stations and TV

21 stations here in South Dakota to get our message

22 across.

23 Right now with the record number of

24 deployments that our guard members and

25 reservists have had, we\'ve been able to activate

192

1 our guard and reservists in a positive manner

2 and allow the employers who are making the

3 ultimate sacrifice also by allowing their guard

4 member reservist employee go off to war.

5 There\'s some success stories out there that

6 the employers have that our local media has been

7 fortunate enough to cover, and we\'re very

8 fortunate to have them provide these messages

9 out. Several of them, we couldn\'t do without

10 them, you know. The public awareness, the

11 Department of Defense and the employee\'s part in

12 the guard reserve is key to this. And we\'re

13 fortunate enough to have these local

14 broadcasters do that.

15 Local broadcasters have formed with the

16 South Dakota Broadcasters Association to provide

17 monetary assistance for us to develop a

18 communication infrastructure for our members

19 that are deployed to talk through the Internet

20 back home to South Dakota. A local fibercom was

21 fortunate enough to provide some computers and

22 some service to allow our soldiers to call back

23 to South Dakota free of charge.

24 Without the type of local community support

25 like that, we wouldn\'t be fortunate enough to be

193

1 able to support our troops and soldiers and

2 recognize those employers out there who have

3 gone above and beyond the call of duty by hiring

4 guard members and reservists. Thank you.

5 MR. HEMMINGSEN: Thank you. Yes, sir.

6 MEMBER OF THE PUBLIC: Hello, my name

7 is Greg Johnson. I\'m from this community, and

8 I\'d like to introduce to you a special interest

9 that\'s near and dear to my heart. This is my

10 daughter, Laura. Laura recently graduated from

11 preschool. My daughter Dale is here also.

12 Thank you for coming and allowing us to

13 speak. My perspective is that of a citizen and

14 a parent. The influence of media on our society

15 and in particular on our children cannot be

16 disputed. An episode of the program Pokemon

17 several years ago that aired in Japan sent

18 several hundred children to the emergency room

19 in convulsions. Did the media \-- does or did

20 the media play or have a role in tragedies such

21 as Columbine and others?

22 The content of commercial programming offers

23 little to positive family values or role models.

24 They offer a lot of unhealthy programming,

25 negative role models, and psychological

194

1 manipulation. I\'ll spare you the graphic

2 examples but there are many.

3 The resources of a large corporate media in

4 advertising interests devoted to analyzing the

5 psychology of children for commercial interests

6 is unconscionable. These commercial interests

7 know more about these citizens, these citizens,

8 than most of them will know about themselves.

9 If you want a lesson in how to boil a frog, sit

10 down in front of TV on Saturday morning.

11 Concentration and cross-ownership reduces

12 accountability to the local community. We need

13 accountability for decency. We need media

14 literacy for children and parents. We need to

15 explore other means of communicating the

16 public\'s business.

17 The eyes of the world are on us and our

18 democracy. I am not proud of Hollywood

19 corporate media and big advertising, how that

20 has permeated our society and apparently our

21 democratic process. Who is going to protect the

22 interests of our children and our future

23 generations?

24 MR. HEMMINGSEN: Thank you, sir. Yes,

25 sir.

195

1 MEMBER OF THE PUBLIC: Good evening,

2 Commissioners and distinguished guests. My name

3 is Michael Goodroad. I\'m the Director of Sales

4 for Rushmore Radio Stations here in Rapid City.

5 I\'ve been involved with radio since I was about

6 three years old and could turn it on and listen

7 to the Lone Ranger and Gunsmoke and those great

8 old dramas. And for a while, before I got into

9 sales, I did a jazz radio program out here in

10 the Black Hills.

11 The stations that I work for now have such a

12 strong commitment to localism and the public

13 service, I just wanted to tell you some of the

14 things that we do that I think could perhaps be

15 models or perhaps other stations around the

16 country could do this.

17 We instead of \-- and we do run public

18 service announcements, and we get involved with

19 our community organizations, but we enter into

20 partnerships and sponsorships. For example, at

21 Job Fair we were able to run our announcements

22 for this Job Fair here in Rapid City on all of

23 our radio stations to give strong impact, and it

24 was the largest event that they had had of that

25 sort here in the past.

196

1 We are able to use our stations, our morning

2 drive announcers open their microphones several

3 times a week to local organizations to come in

4 and talk about their events, events as diverse

5 as the Native American Film Festival, the

6 Children\'s Miracle Network. We have the duck

7 race every year that raises nearly \$100,000 I

8 believe for the community. The Jazz and Blues

9 Festival, a particular interest of mine, Meals

10 on Wheels, Big Brothers, Black Hills Pow-wow,

11 just a number of things.

12 The other thing that we\'re proud of as well

13 is we do play local musicians. We actually

14 include on our pop music station some of the

15 local hip-hop artists, K.O.D., Big D Wellington,

16 Cap T&Switch. Some rock and pop groups locally,

17 Abbey Someone, Setback, Corduroy Vinyl, Jasmine

18 Cain. We include these musicians and their

19 music in our regular programming.

20 We feel this is a very strong commitment to

21 the community and one that we would like to see

22 replicated around the country. I think that my

23 time has expired. Thank you very much.

24 MR. HEMMINGSEN: Thank you.

25 MEMBER OF THE PUBLIC: Hello, my name

197

1 is Lisa Sissenstein. It\'s funny to follow your

2 boss, but that\'s how the numbers work. I too

3 work for Rushmore Radio, which is owned by Triad

4 out of Monterey, California. I\'m going to speak

5 a little different.

6 Commissioner Copps, you opened up saying

7 obligation goes beyond blood drives. That\'s \--

8 that was something that you had mentioned

9 earlier. And you\'re correct, it does go beyond

10 just the blood drives. It also goes beyond

11 giving back to this community. And I work for a

12 company that is the only radio station that\'s

13 owned outside the market, but it\'s very, very

14 local in being involved in the market. And

15 that\'s because people like myself believe in

16 giving back to Rapid City.

17 I want to name a few things: ASAP, Miss

18 South Dakota, Rapid City Health Coalition, which

19 is going to be doing the help line 211. We\'re

20 already looking into that for the Rapid City and

21 statewide market. Tobacco-free Rapid City, Big

22 Brothers Big Sisters, Rapid City Chamber, and I

23 can go on and on. These are all organizations

24 that my company allows me to sit on, absolutely

25 sit on during business hours and be able to be

198

1 involved to come back.

2 The other thing that I\'d like to say is, Big

3 Brothers Big Sisters, when I sat on that Bowl

4 For Kids\' Sake, the Celebrity Bowl came up as an

5 idea to bring all networks together. And every

6 one of them, all, radio and TV, comes to that

7 Celebrity Bowl and participates for the

8 community.

9 There is no division. We work together here

10 as a community and as complete broadcasters.

11 And I\'m on the sales end. So for me to be able

12 to sit on this and, as they might say, \"lose

13 money for them\" I think says a lot for the

14 company I work for. Thank you for letting me

15 speak.

16 MR. HEMMINGSEN: Thank you. The lady

17 in green.

18 MEMBER OF THE PUBLIC: Thank you. Good

19 evening. I\'m Cindy McNeill. I\'m Vice President

20 and General Manager of KEVN television here in

21 Rapid. I\'m honored to have you here and to

22 listen to all the different perspectives

23 tonight. And I find it very heartwarming that

24 we get a lot of kudos for the things we do for

25 the community.

199

1 And I\'m concerned about some of the

2 perception that we don\'t do enough, and

3 especially the portrayal of the Native American

4 population and the image. And this has caused

5 me and is causing our station a great deal of

6 reflection, and we\'re considering this and some

7 of the things that we can do to help change that

8 perception. Perception is reality.

9 I want to talk a little bit. KEVN has been

10 serving this community for 28 years, Rapid City

11 and the surrounding region. We currently employ

12 35 full-time and seven part-time local

13 television professionals, and I\'m very proud of

14 our staff. And we\'re very, very committed to

15 the community.

16 We reach \-- we understand the fundamental

17 purpose to serve a local community. And with a

18 strong signal \-- we have a signal that reaches

19 out to much of western South Dakota. We have a

20 very large community to serve. We don\'t have a

21 huge staff, so we do the best we can with what

22 we have and we will continue to do that.

23 One of the \-- we are proud to bring

24 broadcast \-- produce and broadcast some local

25 events such as the Range Day Rodeo in

200

1 conjunction with the Central States Fair. It\'s

2 an important event to the community. We shoot

3 it, we edit it, and we broadcast it every year,

4 and we have for the past three years. We\'re

5 coming up on the fourth.

6 The Parade of Lights broadcast over the

7 Christmas holidays, we broadcast that and bring

8 it to thousands of households that aren\'t able

9 to get out and watch that parade on their own.

10 And it\'s all volunteerism that puts that parade

11 on. So it\'s very community.

12 Most recently KEVN produced and broadcast an

13 hour-long political discussion between House

14 candidate Stephanie Herseth and Larry Diedrich.

15 We\'re proud to do those things. We will try to

16 do \-- continue to do that and do better even in

17 the future. Thank you.

18 MR. HEMMINGSEN: Thank you. Your turn.

19 MEMBER OF THE PUBLIC: Good evening,

20 gentlemen and Ms. St. John. I\'m Sheila

21 Traxell-Schneider and I\'m the Executive Director

22 of the CASA program, Court Appointed Special

23 Advocates. We recruit and train and supervise

24 volunteers from the community that advocate in

25 court for abused and neglected children.

201

1 As the director of this nonprofit agency for

2 over 14 years, I have been pleased and continue

3 to be extremely pleased with the partnering that

4 happens with our stations, radio and TV, that

5 enable us in the end to serve the abused and

6 neglected children in our community.

7 I know that when I send a press release out

8 that it\'s not just an exercise in PR but that

9 those press releases are read and we are

10 contacted and we do get great coverage.

11 For instance, just a few weeks ago \-- and I

12 agree with Renae Parker who earlier said that

13 they will call you. Jack Caudill from KEVN

14 called and said, we\'d really love to do a story

15 on some of your volunteers. It just so happened

16 a couple had received an award from the Child

17 Protection Service, and they did a wonderful

18 story on them.

19 I also agree with Lieutenant Governor Dennis

20 Daugaard who said our localism extends beyond

21 Rapid City, it\'s a state thing. I know in KELO

22 Land when they play a PSA about what the CASA

23 program is doing on that side of the state, we

24 inevitably get phone calls asking about do we

25 have that program here, can they look into being

202

1 a volunteer. It really is a rippling effect.

2

3 Fundraising is really important to a

4 nonprofit, it\'s our lifeline in many ways. We

5 wouldn\'t have a program if we couldn\'t get this

6 funding, and the broadcasters do help that. I

7 know Mr. Duhamel, we reached out to him and said

8 how do we get a good person from your agency on

9 our board of directors? And he helped us find

10 someone who is now our president, Barb Inman,

11 who has been one of the most dedicated board

12 members that we\'ve seen.

13 KNBN, all of them are really good. We\'ve

14 also been with KILI radio, and I\'m happy to

15 report that being with KILI radio we\'ve been

16 able to really set up for the CASA program to

17 happen on the Indian reservation. And so again,

18 I thank the broadcasters, TV and radio, for all

19 they\'ve done for the abused and neglected

20 children in our community. Thank you.

21 MR. HEMMINGSEN: Thank you. Yes, sir.

22 MEMBER OF THE PUBLIC: Thank you. My

23 name is Anthony Fresquez. I\'d like to welcome

24 Commissioner Adelstein and Commissioner Copps,

25 in that alphabetical order, no pun intended

203

1 there. Notwithstanding all the eloquent

2 presentations about commercial television and

3 big corporate America, the advantages of the

4 airwaves, I think there\'s a need for the

5 Commission to make sure that the disenfranchised \--

> 6 and everybody knows in this room who the major
>
> 7 disenfranchised group in this area \-- has access to
>
> 8 radio waves, for example, low frequency or

9 low level voltage FM stations, and that that

10 opportunity is afforded to those people without

11 competition so that the localism can really be

12 sincere.

13 Localism certainly is a -- you know \-- kudos to all

14 those corporate speakers who say that that's

15 being done and gave eloquent examples of

16 all the things they do for localism. Still,

17 under that overall umbrella, localism really

18 needs to come from those people that have

19 responsibility to have control of their lives

20 and should have that control of their lives and

21 not be subject to any kind of overriding

22 authority.

23 Also, finally I\'d like to say that FCC,

24 since you\'re here today, I\'d like to caution you

25 in terms of censorship. It seems to be a new

204

1 thing on the rise, notwithstanding (inaudible)

2 public exposure. There\'s still a need I think

3 for the opportunity for people to be expressive.

4 Even Mr. Ketel used that SOB word here I

5 heard this evening. So I suppose we could have

6 censored him a little bit. For all these things

7 I ask you to consider certainly making the

8 airwaves available to disenfranchised at no cost

9 and making rules that allow that to occur with

10 ease and with frequency. Thank you.

11 MR. HEMMINGSEN: Thank you. Lieutenant

12 Governor Dennis Daugaard.

13 LIEUTENANT GOVERNOR DAUGAARD: Thank

14 you. I welcome you tonight as Lieutenant

15 Governor. But in my other life I\'m Executive

16 Director of Children\'s Home Society of

17 South Dakota, a human services organization

18 serving abused and neglected children and

19 battered women across the state.

20 I\'m not oblivious to the comments made

21 earlier by both Commissioners that localism is

22 not defined by public service to nonprofit

23 organizations alone. At the same time my

24 experience is with just that kind of localism,

25 and so that\'s what I\'ve got to offer. So I\'ll

205

1 offer it for what it\'s worth.

2 In support of our emergency shelter for

3 battered women in Sioux Falls, for example, in a

4 one-week period Sioux Falls broadcasters aired

5 seven free live or taped interviews some as long

6 as 30 minutes in just seven days. These

7 broadcasters included KSFY TV, KELO TV, KNWC

8 radio, three stations within the Results Radio

9 Group, and KELO radio.

10 In support of our Christmas book fundraiser

11 to benefit our homes for abused and neglected

12 children, Black Hills Children\'s Home and

13 Sioux Falls Children\'s Home, which support we

14 estimate would have cost us \$75,000 statewide,

15 and these stations participated: KELO, KBLO,

16 KPLO, KSFY, KABY, KDLT, and PAX TV in

17 Sioux Falls. In Rapid City: KOTA, KNBN, KEVN,

18 Fox, WB, PAX TV. Radio in Sioux Falls: KELO FM

19 and AM, KTWB, KKLS, KIKM, KXRB, KMXC, KLSO,

20 KYWB, KNWC and it goes on and on, and Peter

21 piped a peck of pickled peppers.

22 Broadcasters help us make our mission and

23 our programs known to victims, government child

24 protection workers, volunteers, and donors.

25 Broadcasters in Rapid City and Sioux Falls help

206

1 battered women find our shelter. Public service

2 announcements help us recruit foster and

3 adoptive parents. These are critical local

4 needs and South Dakota broadcasters are meeting

5 them.

6 MR. HEMMINGSEN: Thank you, Lieutenant

7 Governor. Over here, sir.

8 MEMBER OF THE PUBLIC: Commissioner

9 Adelstein, Commissioner Copps. I\'d like to

10 welcome you to Rapid City and the Black Hills.

11 My name is Bobby Rock, and I work for one of the

12 only two locally owned radio companies in

13 Rapid City, that would be Haugo Broadcasting.

14 Now as you heard, everybody in this market truly

15 believes that localism is very important and

16 they support localism.

17 And that\'s why I would like to respectfully

18 disagree with Commissioner Copps on corporate

19 radio on the horizon here in the West River

20 area. It may be over in East River with Clear

21 Channel and Cumulus, but I believe the owners

22 here in this community believe in local radio

23 and local marketing and being a local radio

24 station, and I don\'t believe it\'ll come because

25 of all the support you\'ve heard from everybody

207

1 here. They believe in it and they want to keep

2 it.

3 Haugo Broadcasting which has KSKY, KIQK, and

4 KTOQ, the other AM talk radio station in town,

5 really support localism and public service.

6 Haugos have supported it ever since they began

7 in the radio broadcasting industry. I have an

8 owner that encourages us to be involved in

9 community activities.

10 We sat down the other day and he encouraged

11 us how to get involved and volunteer for

12 different share programs whether it\'s United

13 Way, whether its YFS. He sits on boards, he is

14 an example. He leads by example, which is what

15 a lot of other owners in town do. And they

16 don\'t ask for anything in return. They don\'t \--

17 they realize that it\'s not always about the

18 bottom line because it\'s not the bottom line,

19 even though that\'s what\'s important. It\'s being

20 part of the community, which is what is

21 important as far as being local in the

22 community.

23 I believe it, that\'s why I\'m here. I have a

24 morning show to be to in the morning. My news

25 director, Brad Anderson, is covering this event

208

1 this morning. So once again, I\'d like to thank

2 you for coming, and I thank you for the

3 opportunity.

4 MR. HEMMINGSEN: Thank you. Ma\'am.

5 MEMBER OF THE PUBLIC: Thank you. My

6 name is Shirley Marvin. I\'m from the Standing

7 Rock Reservation, McLaughlin, South Dakota. I\'m

8 also the administrator for the Wasicu Sakowin

9 Treaty Council. Thank you for this opportunity.

10 Today the broadcasting industry is one of

11 the most protected and subsidized industries in

12 the United States. The most valuable subsidy is

13 free and expanded use of the most valuable bandwidth

14 of airwaves in the future.

15 To justify these subsidies, broadcasters

16 have used their public interest obligations.

17 This quote is from the New American Freedom,

18 March 29th, 2004. That\'s pretty recent.

19 The reason why I quoted this was you\'ll find

20 out from the rest of my statement. The

21 broadcasting media in South Dakota would like to

22 forget their public interest obligations to the

23 Native American community in what can be

24 identified or determined as a racist blackout.

25 This blackout relates to the Native American

209

1 communities by South Dakota Public Radio.

2 This is evident in the article which was

3 sent to me recently, and I\'m going to send this

4 attachment, too, when I submit my statement.

5 Investigative reporting disclosed that

6 South Dakota Public Radio picks bland stories

7 which will prevent backlash phone calls, e-mails

8 and faxes rather than report the news from the

9 Native American communities as it really is.

10 These articles, there were three of them,

11 one relating to Faith, South Dakota about racism

12 accusations in regard to school. That was aired

13 nationally, internationally but never in

14 South Dakota.

15 Other articles regarding the ex-governor

16 Bill Janklow, statements made by Native

17 Americans. They were aired nationally and

18 internationally in Canada but never in

19 South Dakota.

20 There's several other articles like this

21 which we have, like I said, suffered a racist

22 blackout when it comes to issues which concern

23 us.

24 MR. HEMMINGSEN: Ma\'am, are you close

25 to the end? Your time has expired.

210

1 MEMBER OF THE PUBLIC: Well, I have one

2 more short statement here.

3 MR. HEMMINGSEN: Okay.

4 MEMBER OF THE PUBLIC: The Titonwan

5 Sakowin Treaty Council is requesting that the

6 FCC set up a series of workshops throughout

7 Indian country here in South Dakota to provide

8 the great Sioux Nation with basic information

9 relating to broadcasting.

10 We need to know about broadband width

11 spectrums, V chips, digital multicasting, which

12 must carry rights on cable TV. Why are public

13 interest obligations neither verifiable nor

14 enforceable?

15 MR. HEMMINGSEN: Would either of you

16 Commissioners care to address her points?

17 COMMISSIONER ADELSTEIN: We\'d really

18 like to follow up with that and explore that.

19 MEMBER OF THE PUBLIC: Well, I have one

20 more here. Why did the government award

21 broadcasters rights worth billions of dollars in

22 regard to cable companies and broadcastings free

23 of charge, digital TV programming. I need to

24 know all these things as a lot of other people

25 do. Thank you.

211

1 COMMISSIONER ADELSTEIN: We\'d like to

2 follow up. In the same spirit that we\'re

3 spending two days here, today and tomorrow, in an

4 Indian telecommunication initiative where we\'ve

5 had incredible round table discussion about

6 matters of concern in telecommunications, and

7 media is a just another extension of that. So

8 we\'d love to follow up.

9 MR. HEMMINGSEN: You, sir, you\'re next.

10 MEMBER OF THE PUBLIC: Thank you. I\'ll

11 try to keep my remarks to 100 seconds, make up

12 for her time. Welcome, Commissioners. My name

13 is Randy Ross. I\'m a member of the Ponca Tribe

14 of Nebraska. My family roots are on the Rosebud

15 Indian Reservation.

16 I\'ve worked with Benton Foundation doing

17 some policy work with them in the past. I\'m

18 currently on the board with McGizzy

19 Communications out of Minneapolis, and I\'m a

20 former nontrustee board member for the National

21 Museum of the America Indian, which will open up

22 its newest museum in Washington, D.C. September

23 21st and it touts the fourth museum which is an

24 extensive outreach through virtual resources and

25 tools.

212

1 I want to bring this back to something I

2 think that was kind of missed earlier. And I

3 appreciate that ITI is happening, and I wish my

4 friend Geoff Blackwell would be here this evening

5 to share some conversation with my colleagues

6 here from the reservations. That might have

7 been helpful, and maybe we can encourage him

8 next time.

9 I think in terms of the license renewal

10 process, I know those are being reviewed. But

11 the thing that I felt was missed was the

12 consultation with tribes under the

13 government-to-government, the White House

14 executive order that was done a few years ago to

15 try to strengthen and improve communications.

16 I think to include tribes in some meaningful

17 communications with these license renewals is

18 probably overdue, something we probably missed

19 in our processes and I think should be

20 encouraged.

21 The gentleman earlier challenged the Indian

22 people to come forward and bring stories or

23 whatever, whatever it was I heard. But I think

24 to redirect the challenge is really that there

25 are opportunities that perhaps the like CLECs

213

1 and phone companies, that there can be affiliate

2 low power FM stations that can serve better the

3 interest of native populations in their

4 particular market areas. So that\'s the

5 challenge back to the media, local media folks

6 there, to work and partnership.

7 We have a new Governor that has some really

8 creative, innovative ideas. It seems time that

9 maybe we can do some things and we can both be

10 challenged and come to the table and come up

11 with solutions that bring better programming and

12 services to Indian reservations.

13 MR. HEMMINGSEN: Thank you.

14 MEMBER OF THE PUBLIC: Thank you.

15 MR. HEMMINGSEN: Yes, sir.

16 MEMBER OF THE PUBLIC: Good evening and

17 thank you for your time. My name is Donald

18 Lightner. I raise cattle in rural Alladin,

19 Wyoming. I love to watch sports on TV. I

20 especially love football. In fact, I played on

21 this campus for four years.

22 So on Monday night I\'m ready for some

23 football. The only problem is, I can\'t watch it

24 because I can\'t see it. I\'ve tried to get a

25 waiver but I\'m denied. I\'ve made phone calls,

214

1 no answer. And I\'ve sent registered letters and

2 no reply. And I\'m wondering, now what do I do?

3 Why can\'t I see Monday Night Football?

4 MR. HEMMINGSEN: I believe that was in

5 the form of a question.

6 MEMBER OF THE PUBLIC: I mean, what do

7 I do next?

8 COMMISSIONER ADELSTEIN: There are

9 rules that require broadcasters to insure that

10 if you can\'t get the signal over the air that

11 you have access to that signal. And they should

12 be processing those waivers. If they don\'t,

13 there are rules about it. Congress set up these

14 rules in the Satellite Home Viewer Act, and we\'d

15 be happy to follow up with you.

16 We have staff here who can explain to you

17 what your rights are under the rules. We\'re

18 having a consumer forum here in Rapid City

19 tomorrow night. I\'ll bet we\'ll be hearing

20 from some people about this. Anything people

21 are concerned about, we\'re welcoming people to

22 come down at 6 o\'clock tomorrow.

23 Bring your phone bills, complaints about

24 your satellite TV, anything. We\'re ready to

25 address it, and we\'re going to do that with Bob

215

1 Sahr from the state PUC. Of course, he doesn\'t

2 have jurisdiction over this one.

3 But you do have rights under the rules, and

4 whether or not they are being respected is

5 something we need to work with you on, and our

6 staff would be happy to do that. Actually, Bob

7 Ratcliffe over there will tell you what the

8 rules are, whether or not what you are doing is

9 in compliance.

10 MEMBER OF THE PUBLIC: Thank you.

11 MR. HEMMINGSEN: Thank you. Yes, sir.

12 MEMBER OF THE PUBLIC: Good evening.

13 I\'m Jack Caudill and I am the news director of

14 KEVN Fox 7 TV here in Rapid City. I\'d like to

15 thank the Commission for coming here to the

16 Black Hills to learn about our local

17 broadcasters and our service to the community.

18 And I\'d like to thank you for giving me my

19 chance to give my perspective on the situation

20 here.

21 I\'ve been at KEVN for over 20 years. And

22 after devoting the last 20 years of my life to

23 local news, I can honestly say I\'m very proud of

24 how we\'ve been able to serve the Black Hills

25 community during that time. I\'m impressed on a

216

1 daily basis with the dedication of our staff to

2 bring a fair and balanced view of the issues

3 important to the people here to the air.

4 When you take into account the economic

5 realities of small market television and the

6 constraints that that puts on the size of

7 newsroom staffs here, I\'m often amazed at the

8 amount of local coverage that our staff is able

9 to generate.

10 We make a great attempt to cover both the

11 positive and negative sides of the community and

12 the minority community. We\'ve done features on

13 the publishers of the two Native American

14 newspapers that are published here in Rapid

15 City. We profile Native American artists who

16 are trying to make a go in that area. And one

17 of our reporters recently won a statewide

18 reporting award for her coverage of Indian

19 education. The last Friday of each month we

20 feature our Fox Hero of the Month, someone who

21 does outstanding work to make our community a

22 better place.

23 Politically, earlier this month we ran a

24 one-hour discussion of the issues with the two

25 U.S. House candidates, Stephanie Herseth and

217

1 Larry Diedrich. During the last major election

2 we offered all of the candidates in the

3 primaries for governor and U.S. House three

4 minutes of unedited air time to tell our viewers

5 why they deserved their vote.

6 During times of emergency we continue to be

7 there for our viewers. Dan Carlson, our

8 meteorologist, is relentless in bringing alerts

9 and warnings to our viewers during EAS bulletins

10 for 24 counties in five states. There have been

11 times that required him to stay all night and

12 he\'s done that. The bottom line is, if there\'s

13 information that needs to get to our community

14 and our viewers, Dan will be there.

15 Athletically, our sports department covers a

16 huge amount of local sports from recreational to

17 high school to college to semi-pro football.

18 Every Wednesday a local athlete of the week is

19 honored as our Athlete of the Week.

20 Now, while consolidation is an issue in many

21 places around the country, all decisions on our

22 news are made locally with all of our viewers

23 here in the Black Hills as our main

24 consideration. That is exactly what we continue

25 to hope to do in the future. Thank you very

218

1 much.

2 MR. HEMMINGSEN: Thank you. Over here.

3 MEMBER OF THE PUBLIC: Hello, and thank

4 you. I\'m Judy Olson-Duhamel, and I\'m speaking

5 as a retired educator. For 18 years I worked in

6 the Rapid City schools doing community education

7 and public information. Community education

8 requires an assessment of the community. It\'s

9 thinking, it's ideas. Enter the media.

10 Public information does all the things

11 you\'ve heard about. You know that. But I\'d

12 like to expand on localism and say that in my

13 work I used the media to help interpret what our

14 community was thinking, what our community\'s

15 needs were about education, about culture, and

16 about families.

17 That became working kinds of documents,

18 their research, their help, for us to determine

19 the direction that a school district would go.

20 No one individual, not one organization can

21 communicate with an entire community without the

22 help of the media.

23 Speaking as a politician, I work with the

24 South Dakota Democratic Party, and so you know

25 that requires kind of an intense relationship

219

1 with the media. Now, we\'re not always delighted

2 with the spin of a story. But I must say that

3 if we didn\'t have access to the media at times

4 we would feel voiceless.

5 I commend the media for being a conduit

6 between candidates and citizens. That\'s how we

7 get to know our people. That is a public

8 service.

9 Thirdly, I speak quickly for my son, Jeff

10 Olson, who had to leave. And his comment he

11 wrote down is about Sportsmen Against Hunger.

12 He said that program couldn\'t exist without the

13 help of the local media. He has some numbers,

14 you\'ve heard 240,000 meals. He said programs

15 like that \-- and you\'ve heard a lot of this, so

16 I won\'t belabor it. We are eternally grateful

17 to the help of the community.

18 Thank you, Commissioners, for being here.

19 It\'s awfully good to see our homegrown boy at

20 work.

21 MR. HEMMINGSEN: Over here.

22 MEMBER OF THE PUBLIC: I\'d like to

23 begin by saying that I took the 14-hour trip

24 here from Chicago and in the process my glasses

25 were utterly crushed. So if I\'m over my time,

220

1 just throw the gavel at me.

2 MR. HEMMINGSEN: You can borrow mine.

3 MEMBER OF THE PUBLIC: As I said, I

4 traveled 14 hours here to become familiar with

5 the FCC and the issues for which it bears some

6 responsibility. I have come to see the face of

7 activism, to see a relationship between the use

8 of the people\'s airwaves and the democracy

9 safeguarded by the FCC.

10 And I have seen and learned much. Yet I

11 would be remiss not \-- to pass up the

12 opportunity to publicly express my apprehensions

13 concerning the state of the local news media at

14 large.

15 I find accounts of patently misleading

16 pieces in airwave news. Many here might

17 recognize the now infamous name of Karen Ryan

18 and the practices of her PR firm. I\'ll detail

19 them anyway.

20 As Danielle Price noted, Nashville\'s News

21 Channel 5 offered up their local viewers, quote:

22 A seemingly innocuous segment touting the many

23 benefits of the Bush Administration\'s new

24 Medicare Prescription Drug Act, end quote.

25 However, Price points out that the report is

221

1 not an expression of the original research

2 produced by the station or an affiliate. The

3 work is of a PR consultant, Miss Ryan, hired by

4 the Administration to advertise the Act.

5 Though the framing of the story ends with,

6 \"In Washington, this is Karen Ryan reporting,\"

7 nothing indicates the piece\'s intention to

8 beautify rather than report news. This phony

9 news was passed off in dozens, 40 in fact, of

10 local program offerings such as we\'re dealing

11 with here today.

12 I find similarly disturbing trends issued

13 from the research of the Project for Excellence

14 in Journalism as well as Kovach\'s and

15 Rosentiel\'s work, Elements Of Journalism, among

16 others, academic and otherwise.

17 My assertion then lies in a request or

18 question to those of the Commission that were

19 able to show today. Who should stand in a

20 defense of Americans in the face of what Karen

21 Ryan and other American PR firms represent? We

22 cannot blame corporate firms or even the

23 corporate lobbies here today for pursuing the

24 end of profit. That\'s what they do.

25 The better question must be asked: What

222

1 will the FCC do? What will you do as an agency

2 clearly in proximity to deal with such threats?

3 Can you pass the buck as Americans are duped?

4 And another question is, is a passive reception

5 of complaints issued by viewers, is that enough?

6 Is that the limit of your ability? I don\'t

7 think it is.

8 MR. HEMMINGSEN: Your time is up.

9 MEMBER OF THE PUBLIC: I\'ll just finish

10 then by saying simply, specifically, can the FCC

11 create or adopt a subcommittee to provide

12 stronger accountability in such obvious cases of

13 audience manipulation? Thank you.

14 MR. HEMMINGSEN: Mr. Nyberg.

15 MEMBER OF THE PUBLIC: Thank you,

16 Steve. I\'m Roy Nyberg. I\'m retired from the

17 Nyberg\'s Ace Hardware in Sioux Falls and

18 Brookings, and I\'m here also because I have been

19 denied a waiver. We have our home in the Danby

20 Park area. That\'s 40 miles from here, seven

21 miles west of Custer.

22 We\'re down in a depression, you might say.

23 We\'re at 5,900 feet. I think we\'re in a

24 development that might be the highest

25 development in the state of South Dakota. But

223

1 we\'re ringed by a \-- you might say rims of 6,000

2 feet.

3 Out in front of us we\'ve got a 6,000-foot

4 mountain. Bear Mountain is four miles ahead of

5 us. That\'s at 7,200. And KOTA, I believe, has

6 got a tower at Terry Peak which is Channel 11,

7 which we can\'t get. And that would be blocked

8 out right directly with our signal. And then I

9 think the only thing we get is Channel 3, which

10 I believe is on Skyline Drive, and that is down

11 below us.

12 And I was the \-- in World War II I was the

13 Army/Air Force mechanic in radio and in radar,

14 and I know that the line of sight is important.

15 What we\'re getting is rebound. Now, if you want

16 to see Monday Night Football, there's pictures

17 of it. This is what we\'re getting.

18 Last night my wife was watching on a 14-inch

19 screen The Millionaire, and she was three and a

20 half feet from the screen and she couldn\'t read

21 the question nor the answers.

22 I\'m at a TV that\'s got a 21-inch, I\'m about

23 seven and a half feet back, and I can\'t read the

24 answers. Now what I\'m saying is, that\'s not the

25 case all the time. But it\'s evident that we\'re

224

1 not getting that signal because we\'re getting

2 bounced off.

3 Now I had the KELO people up there with

4 their antennaes. They went half a mile south

5 and half a mile north and they could get a

6 signal. That was from the mountain to the west

7 of us, and they told \-- they could get the

8 signal there, but we couldn\'t get it where we\'re

9 at.

10 So I\'d like to have somebody understand that

11 they\'ve got a problem there, and there\'s many of

12 us out there that\'s got the same problem. We\'re

13 not getting their signal.

14 MR. HEMMINGSEN: Thank you, Roy. Sir.

15 MEMBER OF THE PUBLIC: Hi. First, I\'d

16 like to thank the Commission very sincerely for

17 coming here and listening to us. It\'s not very

18 often that the government comes and listens to

19 the people, especially in a state like this.

20 And I like it very much and it ought to happen

21 more often.

22 My name is Peter Curtis. I\'m the founder of

23 the Rapid City Chapter of Food Not Bombs, a

24 group that provides aid and advocacy for our

25 homeless population. And I think many of the

225

1 other speakers here have done a very good job of

2 saying what\'s right with our local media. So

3 don\'t think me unduly negative if I point out

4 what I think is wrong. I\'m not saying there

5 aren\'t things that aren\'t right.

6 There's been a lot of talk about stories

7 that our local news media do about people in the

8 community, do about community organizations, do

9 about minorities, do about people in the

10 community.

11 However, I think that -- I believe that

12 people in the community should not just be

13 objects of the news, but they should be subjects

14 of the news and should be able to make their own

15 media and tell their own stories. So I believe

16 that if our local broadcasters really do care

17 about localism in our community, and I believe

18 they do, I think they've made that quite clear

19 during this presentation, then they should take

20 all possible means to make sure that we have

21 real public access television in Rapid City,

22 South Dakota.

23 And that means \-- that does not just mean

24 playing tapes that people make on their home

25 camcorders at 4:00 a.m. in the morning. That

226

1 means providing studio resources, providing

2 cameras, and giving us something back for the

3 airwaves we\'ve given you for free. And I think

4 we deserve these services.

5 I think our entire community would benefit

6 from it. Some of the benefits that would come,

7 for example, there\'s been a lot of talk about

8 how we\'re being served sufficiently because we

9 have \-- there\'s been debates between for our \--

10 people being elected to national office.

11 However, starting on June 2nd there will be

12 people running for city council, there will be

13 people running for state senate in November, and

14 there has been essentially no television

15 coverage of these very important races that are

16 very important to our communities.

17 Now I don\'t think it is good enough for the

18 people of this community to have to learn

19 everything they need to about their

20 representatives from direct mailings and

21 billboards. I think if we \-- that\'s why we have

22 a media and I would like to hear from the

23 broadcasters at this table who I know care about

24 our community, what they are going to do about

25 putting these resources in our hands. Thank you

227

1 very much.

2 MR. HEMMINGSEN: Bill? Do you have any

3 comment?

4 MR. DUHAMEL: Well, the city council

5 race is next Tuesday, and the state race is

6 you know, the primaries are next Tuesday and

7 then the state races are coming up in the fall.

8 MEMBER OF THE PUBLIC: If I didn\'t say

9 it, that\'s what I meant.

10 MR. DUHAMEL: No. I mean, we\'ve had

11 some coverage but I will admit that we\'re

12 concentrating on the federal races because

13 that\'s where the biggest interest is. And the

14 thing is that we tend more on the radio to worry

15 about the local because the TV goes out beyond

16 there. But you know, we\'ve mentioned the two.

17 MEMBER OF THE PUBLIC: What about

18 community access, what about providing these

19 resources so people can make their own media \--

20 MR. DUHAMEL: You know, we\'ve invested

21 \$4 million in digital television. We\'re just

22 lucky to be here. I mean, have you watched

23 digital television?

24 MEMBER OF THE PUBLIC: What about our

25 airwaves, what do we get for that?

228

1 MR. DUHAMEL: We\'re going to use the

2 same spectrum space that we\'re using now. We\'ve

3 got to transfer. We\'re in the transition phase.

4 MEMBER OF THE PUBLIC: So you will be

5 bringing community access television to us then?

6 MR. DUHAMEL: No. No. We\'ve got

7 digital television now. We\'ve got high

8 definition television.

9 MEMBER OF THE PUBLIC: That\'s

10 wonderful. It has nothing to do with my

11 question.

12 MR. DUHAMEL: It does. We\'re putting

13 our resources there.

14 MEMBER OF THE PUBLIC: So soon the

15 community will be able to make their own

16 program?

17 MR. DUHAMEL: No. I\'m saying that we

18 are putting our resources in providing community

19 service to the public.

20 MEMBER OF THE PUBLIC: But you are not

21 providing access. You are not allowing the

22 people to tell their own stories. I guess

23 that\'s the answer to my question. Thank you.

24 MR. HEMMINGSEN: Eleanor St. John, you

25 seem to have a lot of experience with community

229

1 access in your operation.

2 MS. ST. JOHN: We do. We do make

3 it \-- we make it an effort. It\'s a priority for

4 us and it always has been based on my own

5 personal commitments. We have \-- we\'re

6 developing now and it\'s being produced as I\'m

7 sitting here probably, a weekly show and this

8 will highlight activities that are going on in

9 the younger crowd, what\'s the local music, what

10 the local bands are. It\'s a commitment that the

11 owners make.

12 This is something that people have said over

13 and over again about their stations, whether

14 it\'s locally owned or from another entity in

15 another state. It\'s a commitment that

16 management and ownership makes. I made it,

17 other people can.

18 MR. HEMMINGSEN: Thank you. Over here.

19 MEMBER OF THE PUBLIC: All right.

20 Hello, my name is Kathy Grigg. And I\'m a junior

21 at Stevens High School. And I also have a lot

22 of concerns about the local media as a general

23 thing. Okay. Look, mainstream news is great.

24 Okay. We all need to know, you know, what\'s

25 going on in our world. We all need to know

230

1 what\'s happening in North Carolina during the

2 flood or, you know, whatever or the drought or

3 whatever is going on.

4 But I also think it\'s important that we have

5 something local here, and I\'m \-- I really,

6 really love that you spoke up, by the way.

7 Thank you. Yeah, it\'s so important that we have

8 some kind of alternative here. My biggest

9 concern with the FCC and granted, I'm really

> 10 glad that you guys do, you know, take the
>
> 11 airwaves and at least give us something. But my

12 biggest concern is that if we have one person

13 controlling everything, what\'s going to be left

14 for the little stations?

15 I mean, the Stevens High School wants to

16 start a radio station, and I know some people

17 are like, of, you know, you\'re just a bunch of

18 dumb kids, blah, blah, blah. But there\'s so

19 much evidence against it. I\'m serious. You

20 started Food Not Bombs in high school, right?

21 Yes. You started Food Not Bombs in high school.

22 Two freshmen started a gay/straight alliance

23 at Stevens, and it\'s now a functioning club.

24 And it took us two years to get to that point.

25 Two years. Legal threats, et cetera, et cetera.

231

1 It was great fun, come to think of it.

2 So anyway, look, we need some kind of

3 alternative, and we need to make this more

4 available to locals. I mean, maybe Stevens and

5 Tech need to get together and do \-- or Stevens

6 and the School of Mines needs to get together

7 and maybe share space or something.

8 But we have got to make room for people who

9 aren\'t big enough to own a huge mainstream

10 station and people who don\'t have the budget to

11 do this. Or we could just make them shut up and

12 go into the corner and, you know, hopefully get

13 five minutes on the mainstream. But I don\'t

14 think that\'s nearly as practical. Anything?

15 And I\'m curious, could you explain the

16 procedure? What exactly would a group of dumb

17 little kids need to do to get their radio

18 station? What would be the procedure? Step

19 one, step two, step three.

20 MR. HEMMINGSEN: Is this one for

21 tonight or is this one for tomorrow?

22 COMMISSIONER ADELSTEIN: Well, just

23 real quickly, you have to wait until there\'s a

24 window open for noncommercial broadcasters.

25 Right now there\'s not a window open. It would

232

1 be the same process KTEQ is going to have to go

2 through to get reinstated. We can fill you in

3 on that as well, if you want. If some of our

4 staff can educate her about that process.

5 MR. HEMMINGSEN: All right. Thank you.

6 Yes, sir.

7 MEMBER OF THE PUBLIC: Good evening.

8 Thank you very much for being here,

9 Commissioners and distinguished panel. My name

10 is Milton Lee. I\'m a lifelong South Dakotan.

11 I\'m an enrolled member of the Cheyenne River

12 Sioux Tribe, and more surprising than anything

13 else, I'm an actual live, independent producer.

14 That's right. I produce public radio shows.

15 The shows that we\'ve produced have been

16 played all over the world, literally all over

17 the world: Australian Broadcasting, Radio for

18 Peace International, Costa Rica has picked it

19 up. We\'ve had shows played in Belarus. But we

20 haven\'t had them played much in South Dakota except

21 for KILI radio. The reason for that -- well, let

22 me just tell you some of the titles of the things

23 that we've produced.

24 A Song for Wounded Knee; The Black Hills, a

25 Lakota Vision; Does Mother Earth Have AIDS; In

233

1 His Name: The Carving of Crazy Horse. Now it

2 would be easy to blame racism for why they are

3 not being played in Rapid City. But you know,

4 that really isn\'t the answer.

5 The answer is what Commissioner Copps said.

6 There is no diversity in Rapid City radio.

7 Absolutely none. It does not exist. There\'s no

8 community radio stations around except KILI

9 radio and that comes from Porcupine. I mean,

10 it\'s a great, wonderful, amazing station. They

11 play all kinds of phenomenal things. But it\'s

12 not a Rapid City station. There\'s not a

13 Rapid City broadcaster who\'s broadcasting any of

14 this type of programming.

15 The reality is we get news, weather, sports,

16 top 40, top 30, top 20 music. That\'s it.

17 There\'s no arts programming, ethnic programming,

18 cultural programming, documentary programming,

19 radio drama, interview shows, travel shows,

20 health shows. None of that in Rapid City.

21 You go to Minneapolis, we could listen to

22 KFAI. You know, their motto is, \"A new radio

23 station every hour. Our programming is so

24 varied even we don\'t like half of it.\" The

25 reality is we need true diversity in radio

234

1 programming right here in Rapid City. That\'s

2 what localism is all about.

3 It is unbelievable that there\'s not a window

4 open right now for people to even apply to open

5 a community station here in Rapid City. Shame

6 on the government.

7 MR. HEMMINGSEN: Thank you, sir.

8 MEMBER OF THE PUBLIC: Thank you,

9 Steve. I know you from KELO Land news and done

10 some news contributing to your station. And

11 Mr. Duhamel knows me. I\'m Gary Loudner. I\'m

12 the Founder/President of Black Hills Satellite

13 Communications News of South Dakota. Our

14 business would be if it --- once -- if it ever

15 gets to be developed and come out of a stage of

16 darkness and silentness, we would provide

17 satellite newsgathering to the Black Hills and

18 from the Black Hills area, worldwide.

19 And, Mr. Adelstein, I\'m sorry, I just wanted

20 to say that Mr. Adelstein probably has had some

21 knowledge of what my project has been since the

22 late 1980s when we worked with Senator Daschle\'s

23 office.

24 But there are factions, individuals, and

25 organizations in Rapid City that hold us \-- hold

235

1 Native American or Indian people back, including

2 myself, from doing such projects, you know, a

3 ku-band satellite newsgathering. So I just wanted

4 to bring this up to the Commission and to \-- and

5 I will provide an affidavit on my comment.

6 Thank you.

7 MR. HEMMINGSEN: Thanks, Gary.

8 Charisse?

9 MEMBER OF THE PUBLIC: Thank you,

10 Steve.

11 MR. HEMMINGSEN: We\'re down to the

12 people I know.

13 MEMBER OF THE PUBLIC: Bringing up the

14 rear here. Commissioner Adelstein, thank you,

15 Commissioner Copps, and all of the ladies and

16 gentlemen that are representing broadcasting

17 here tonight. It\'s a privilege for me to be

18 here. My name is Charisse Ohlen. I am the

19 President and CEO of another minority interest

20 here, Children with Special Needs.

21 I\'ve been with the organization that serves

22 the children across the state for the last 16

23 years, and we serve only 2,500 kids, about 10

24 percent of children that have special needs,

25 require services, and assistance.

236

1 And guess what? Most of the people in the

2 public don\'t care. You don\'t care until your

3 child gets into a car accident and your child

4 doesn\'t get to walk home. You don\'t care until

5 your child is born with a disability or with a

6 permanent physical disability such as cerebral

7 palsy, muscular dystrophy, Down syndrome. Once

8 those things happen to the general public, then

9 people care.

10 The issue that we have and the difficulty we

11 have with our program promotion is awareness.

12 And I want to thank the broadcasters for what

13 they do for our organizations and many other

14 special interests groups across the state of

15 South Dakota.

16 I wanted to make a few other points. In

17 particular I want to commend the leadership, the

18 local leadership that really serves the

19 community well. I have the good fortune of

20 having two public broadcasters, the general

21 manager of and vice president for KOTA with us

22 tonight, Mr. Mark Antonitis, and also tonight

23 Mr. Bill Duhamel, who is the Duhamel

24 Broadcasting President.

25 Both these individuals give their time to

237

1 our organization and numerous others. I could

2 go on with a long resume\' for each of these

3 gentlemen. But they give their time because

4 they are part of the fabric of the community.

5 They do listen, they are here tonight, they

6 are concerned about what all of the people in

7 this room have to say. And I will guarantee

8 that they will go back to their offices tomorrow

9 and they will already begin implementing some of

10 the good words, some of the good suggestions and

11 recommendations that they have heard.

12 So in terms of the good fortune of

13 South Dakota, localism is alive and well. We

14 are very appreciative of all of the work that

15 you do and we thank you for being here tonight

16 to listen to all of us with a message to

17 deliver. Thank you very much.

18 MR. HEMMINGSEN: Thank you.

19 MEMBER OF THE PUBLIC: My name is Ted

20 Huffmann. I\'m senior pastor of First

21 Congregation of the United Church of Christ in

22 Rapid City, the oldest Christian congregation in

23 our community. In the 125 years our

24 congregation has been a part of this region,

25 we\'ve seen lots of outsiders come and go, but we

238

1 are relative newcomers compared to our Lakota

2 brothers and sisters.

3 The 97 Congregations of the United Church of

4 Christ in South Dakota are serving communities

5 mostly for more than a century. We are here to

6 stay. We came to the Dakotas to stay. There

7 are others, however, who come to this region

8 temporarily to extract profits from mining,

9 logging, high interest credit cards, and a lot

10 of other industries.

11 We know too well the stories of people who

12 come to the Dakotas for short-term profits and

13 leave when they\'ve taken what they want.

14 Outside ownership of vital services is not

15 new to us. In a sense, we\'ve become used to

16 outsiders coming to our state to take or buy

17 things that they want. The current House

18 and Senate races demonstrate how outside

19 interests are willing to come to South Dakota

20 and spend a great deal of money in pursuit of

21 their goals.

22 Although Rapid City is currently well-served

23 by locally owned television and radio stations,

24 we know how quickly that can change with the

25 sale of relatively small businesses. Our

239

1 experience has taught us that when our resources

2 are put up to the highest bidder, our resources

3 go out of state.

4 What we ask of the Commission is that a

5 percentage of every service controlled by this

6 Commission be set aside for local programming.

7 We do not now nor have we ever sought to keep

8 people from outside of our state from visiting

9 or sharing their opinions with us. We seek not

10 to be isolated from the news of our country and

11 the world. What we are seeking is to maintain a

12 small slice of the public airwaves and media

13 services available for our local artists, local

14 stories local news, weather, and the stories of

15 our local schools and children. Thank you.

16 MR. HEMMINGSEN: Thank you, Reverend.

17 Yes, sir.

18 MEMBER OF THE PUBLIC: Yes. I am

19 Donald LeFevre, President of Tepco, a Rapid City

20 manufacturer of FM radio and television

21 translators and low-powered radio and TV

22 transmitters. A translator, for the people in

23 the audience, is a device that picks up a

24 distant signal and retransmits it locally.

25 Translators are an important part of serving

240

1 nonurban areas where there\'s insufficient

2 population to support a larger number of Class A

3 stations.

4 In this region our translators are used to

5 distribute South Dakota Public Radio across the

6 state and South Dakota Public Television and to

7 extend the coverage of many existing stations,

8 including retransmitting Dr. Duhamel\'s KOTA

9 television into some small communities and also

10 to retransmit KILI, KDDX, KRCS, and KSLT in

11 Rapid City.

12 Without the ability to extend these signals

13 in places where the population density is low,

14 many stations simply wouldn\'t be viable or there

15 would be a lot of people that would have a lot

16 of empty space on the dial. So translators, I

17 believe, are an important part in serving low

18 density population areas.

19 So I\'d like to thank the Commission for

20 opening the filing window last year for FM

21 translators, and I\'d like to just comment that

22 James Bradshaw of the Mass Media Bureau is

23 really doing yeoman service trying to issue the

24 majority 3,000 singleton licenses by this

25 September with I guess a staff that\'s the same

241

1 size that it was previously.

2 As a manufacturer I\'d like to note that the

3 FM translator license freeze that was initiated

4 in 1997 and continued really until this recent

5 beginning of license issuing was very hard on

6 the industry. Several of our competitors went

7 out of business during this freeze.

8 And although that may seem good for Tepco

9 because we survived it, I would like to

10 respectfully ask that the Commission only use

11 license freezes, these long-term, nationwide

12 license freezes rarely, since they result in

13 wild contractions and expansions of the

14 business.

15 And to highlight sort of the size of this

16 contraction/expansion that we\'re seeing, when

17 Tepco entered the FM translator market in 1978,

18 there were a few licenses. When the freeze was

19 initiated almost 20 years later in 1997 there

20 were roughly 3,400 total FM \--

21 MR. HEMMINGSEN: Sir, if you have a

22 point, your time is up.

23 MEMBER OF THE PUBLIC: \-- licenses and

24 so what we\'re looking at with these 3,000

25 singleton licenses and 3,000 more coming out of

242

1 the MX licenses is what looks like 40 years\'

2 worth of business. So we had a six-year freeze

3 and then 40 years\' worth of business is real

4 hard for the manufacturers to follow that.

5 MR. HEMMINGSEN: Thank you, sir. Over

6 here.

7 MEMBER OF THE PUBLIC: I am Tom Heald,

8 civil rights advocate and alternative press

9 publisher. With three major broadcast entities

10 absorbing about 90 percent of the radio

11 landscape, consolidation of ownership has really

12 not resulted in competition as much as it has in

13 homogenized repetition.

14 One trio of stations feeds us country music.

15 Politically, a conservative viewpoint dominates

16 two talk stations and a fundamentalist Christian

17 radio station. And I could probably rattle off

18 ten stations that play one or another

19 subcategory of light rock, hard rock, soft rock,

20 world class rock, good time rock and roll

21 oldies, and/or the best rock with the best of

22 the \'60s, \'70s, \'80s, \'90s and today, which is

23 music you grew up with that the whole office can

24 agree on.

25 In terms of musical differentiation, given

243

1 the artistic activity in the Black Hills, it\'s a

2 drop in the bucket, and that doubles for

3 cultural participation, be it active Native

4 American population, gay and lesbian, and most

5 all of the minority populations in the Black

6 Hills.

7 And for this I would reemphasize the need

8 for not just noncommercial college radio, but

9 also public access radio and public access

10 television stations which most of us won\'t be

11 able to see any until we can save \$4,000 for a

12 high definition TV.

13 MR. HEMMINGSEN: Thank you.

14 MEMBER OF THE PUBLIC: Hi, My name is

15 Jan Stendeger. I was born, raised, left, and

16 came back to Rapid City, and I'm staying. What

17 I would like to address is, number one, on the

18 handout that we were all given, which is how

19 radio and television is responding to our

20 community needs and interests, racism and

21 stereotyping is not an Indian problem, it\'s a

22 human problem. And it\'s a human problem of

23 enormous proportion in our community.

24 Rapid City is to Indian and white relations

25 what Selma, Alabama is to black and white

244

1 relations. Speaking as a member of the white

2 part of that equation, we white folk have a long

3 way to go in addressing the racism in ourselves

4 and then having that reflected publicly with

5 greater awareness, courage, and accountability.

6 Mr. Duhamel, with all respect, I would like

7 to use your statements from a couple hours ago

8 to demonstrate my point of how very often

9 unintentionally the attitude behind the power

10 culture can keep true community needs and

11 interests from being expressed.

12 And what I\'m referring to is when earlier

13 tonight you referred to how Rapid City is not

14 like Washington, D.C. We don\'t have murders.

15 Well, we do. Not in a huge proportion but \--

16 and this brings up my point specifically about

17 localism.

18 Rapid City in less than a year and a half

19 has had three killings by police officers. Two

20 of whom \-- the victims, two of whom were Native

21 American. Now in Washington, D.C. or New York

22 or a zillion other communities in our country,

23 three deaths is not newsworthy. But in our

24 local community, I find that terrifying.

25 MR. HEMMINGSEN: Thank you, ma\'am.

245

1 MEMBER OF THE PUBLIC: I\'d just like to

2 finish. My request is that white people \--

3 MR. HEMMINGSEN: Ma\'am, your time

4 expired some time ago. Representative Tom

5 Hennies \--

6 MEMBER OF THE PUBLIC: I\'ll sum up \--

7 MR. HEMMINGSEN: No. Ma\'am, we have

8 rules here. We\'re trying to stick by them.

9 MEMBER OF THE PUBLIC: Thank you.

10 MR. HEMMINGSEN: Everybody knew it was

11 two minutes going in, and I\'ve probably been a

12 little lax in that.

13 MEMBER OF THE PUBLIC: Thanks, Steve.

14 MR. HEMMINGSEN: You have two minutes.

15 MEMBER OF THE PUBLIC: I understand the

16 rules. Commissioner Adelstein and Commissioner

17 Copps, I want to thank you and the other members

18 of the Localism Task Force for choosing Rapid

19 City as one of the sites to hold your hearings

20 regarding electronic media. I only wish to make

21 two points.

22 First, I believe it\'s imperative that media

23 outlets remain independent and locally owned as

24 much as possible. Although it would be far

25 better, I think, if the public would get their

246

1 news and their public information from both the

2 electronic media and printed matter and would

3 read some of this, the fact is that most people

4 get their news only from the electronic media.

5 So if our media is allowed to be swallowed

6 up by conglomerates, the breadth of that news

7 information can only become more narrow and

8 therefore has the potential of becoming more

9 one-sided.

10 As evidence that locally controlled airwaves

11 better serve our citizens, I submit the example

12 of the continued involvement of our local

13 electronic media. I\'ve been in public service

14 in Rapid City for nearly 40 years: 35 years as

15 a police officer and 6 years as a member of the

16 South Dakota House of Representatives.

17 During that time I\'ve seen the local

18 electronic media become involved in all manner

19 of public service. They keep us informed of

20 local and national news, they join in assisting

21 those hurt by personal disaster. One can count

22 on accurate information during emergencies, and

23 they give us a great amount of air time to the

24 organizations dealing with the poor and the

25 homeless and the needy.

247

1 While I was chief of police, there were

2 stories which I would have preferred probably

3 were not made public. But the reporting has

4 been accurate and balanced on them, so I felt I

5 really had no complaint. This is far different

6 than my impression of the national news media,

7 which is a conglomerate and which seems to have

8 their own agenda.

9 I would ask that you not allow any greater

10 expansion of ownership by large organizations

11 but rather assist the small, locally owned media

12 to continue their community involvement because

13 they are part of our community as they

14 demonstrated here. Thank you.

15 COMMISSIONER ADELSTEIN: Representative

16 Hennies, you represent the district and the

17 community that I live in. So I appreciate your

18 long years of service to this city and to my

19 district in particular and for your eloquent

20 statement tonight.

21 MEMBER OF THE PUBLIC: Thank you. Now

22 I have to take care of your father.

23 MR. HEMMINGSEN: There are people, I

24 believe the code for it is a 1072. We\'re going

25 to take a brief rest room break for some of the

248

1 people working here tonight. Those of you

2 people stay in line, we\'ll be right back.

3 You\'ll get your chance. Those of you who have

4 tickets, join one of the lines and we\'ll try to

5 wrap this up.

6 (A brief recess was taken.)

7 MEMBER OF THE PUBLIC: Hello. My name

8 is Mitchell Schupinchek. I\'m an organizer with

9 the media activist group Chicago Media Action.

10 I\'m a contributor to the radio and TV projects

11 of the Chicago Independent Media Center,

12 (inaudible) Media. And I\'m a monthly columnist

13 with the Chicago newspaper, Third Coast Press.

14 I\'m part of that Chicago convoy that spent 14

15 hours to come here and will drive 14 hours to go

16 back tomorrow. I have three things to say.

17 One, is a message from a fellow Chicagoan

18 who couldn\'t be here but asked me to relay this

19 message. I quote: I think that media

20 consolidation, a few giant corporations owning

21 the access to communications to the public, is a

22 great threat to democracy in America. Those

23 making decisions about consolidation should put

24 the public first before corporate profits, or

25 they are criminally responsible for the failure

249

1 of democracy and the future of this country,

2 unquote.

3 Second thing, from me, regarding localism of

4 media in Chicago, since that\'s where I live and

5 where I work and since this hearing does address

6 the entire midwest, including Chicago. As I

7 said in my comments which I submitted yesterday

8 to the FCC\'s Web site, the pattern I\'ve seen

9 regarding TV and radio in Chicago on a local

10 basis which is responsive to local interests is

11 that media which are responsive to local

12 interests will draw in the local community in

13 aspects of the media in terms of ownership,

14 management, staff, funding base, and as

15 providers of content.

16 Therefore, I encourage the FCC to enact

17 policies which would allow people to be able to

18 partake in their local media at multiple levels.

19 The low power FM initiative that the FCC

20 approved in February is an excellent start.

21 Many comments were offered today with

22 regards to providing more radio and TV stations

23 including public access here, which I encourage

24 and which would provide more outlets for

25 fostering local participation.

250

1 Finally, I\'d like to address this more to

2 the audience here and who \-- those who can hear

3 me or see these words. There\'s been a lot of

4 popular organizing in Rapid City and nearby for

5 this hearing. I\'d just like to say, don\'t let

6 it end with this hearing. I encourage people to

7 stay involved on media \-- on organizing media

8 issues both in the national level with groups

9 like Free Press and Fairness and Accuracy in

10 Reporting, and in forming your own local groups

11 and local initiatives.

12 Like in Chicago I\'m part of a group called

13 Chicago Media Action. We\'re online at

14 Chicagomediaction.org. Or you can call toll

15 free 1-866-260-7198. As we\'ve seen in the past,

16 it\'s made a big difference \--

17 MR. HEMMINGSEN: Sir, your time is up.

18 I said I was going stick to time, I am going to.

19 Sir, it\'s your turn.

20 MEMBER OF THE PUBLIC: First of all,

21 thank you to the FCC for coming to South Dakota

22 and giving us this opportunity for the forum.

23 I\'m Wayne Havemoreland, and I work for the

24 South Dakota Bureau of Information and

25 Telecommunications. I also serve as coordinator

251

1 for South Dakota\'s Amber Alert System.

2 I want to speak on behalf of the

3 South Dakota broadcasters and the excellent role

4 they\'ve played in supporting the Amber Alert

5 System in South Dakota not only in the

6 development and implementation of this important

7 system but also by working collectively through

8 the South Dakota Broadcasters Association as

9 active team members with the state agencies

10 involved in that organization.

11 South Dakota broadcasters donate to the

12 Amber Alert in many ways. The obvious way that

13 most people are aware of is by agreeing to

14 provide us their air time free of charge in the

15 event of an Amber Alert. Specifically an Amber

16 Alert\'s goal is to help law enforcement recover

17 an endangered kidnapped child in a timely and

18 safe manner.

19 But another way the South Dakota

20 broadcasters donate to that process that is not

21 as obvious is they also donate daylight air time

22 once a quarter to us so that South Dakota can

23 test its Amber Alert communication links.

24 They also send a representative to the

25 state\'s post quarterly test review meetings, and

252

1 it\'s through their support that we\'re able to

2 achieve a true end-to-end review of each and

3 every quarterly test, which allows us to assure a

4 continuing high level of readiness in the event

5 the Amber Alert System is needed.

6 In addition to that, the state South Dakota

7 broadcasters have also worked with state

8 agencies and the Department of Justice to

9 exchange ideas and discuss issues and resolve

10 issues at both the state level, the regional

11 level, and the national level.

12 And on behalf of the children that they help

13 us safeguard and they would help us bring home

14 if they were endangered and kidnapped, I want to

15 thank the state South Dakota Broadcasters

16 Association and the broadcasters involved in

17 that association for their assistance on Amber

18 Alert. Thank you.

19 MR. HEMMINGSEN: Thank you. Many with

20 the badge.

21 MEMBER OF THE PUBLIC: Commissioners

22 Adelstein and Copps and members of the panel, my

23 name is David Walton. I\'m a police officer for

24 the city of Rapid City. I also have the rank of

25 lieutenant, and I\'ve been in there for 25 years.

253

1 And I represent the Rapid City Police

2 Department on two fronts tonight. One is part

3 of the group that was here to provide security,

4 and secondly sent by my chief to support exactly

5 what Wayne was talking about, the Amber Alert.

6 The Rapid City Police Department, the

7 Pennington County Sheriff\'s Department, and the

8 state Division of Criminal Investigation have

9 been pleased to be afforded the opportunity to

10 work cooperatively with the South Dakota

11 Broadcasters Association on a statewide Amber

12 Alert plan.

13 The plan utilizes the resources of many

14 state agencies working in coordination to make

15 the plan a reality. And without the cooperation,

16 however, of the state broadcasters and the media

17 outlets in our state, the plan would not be able

18 to function with reaching the public and

19 enlisting their aid searching for endangered,

20 kidnapped children.

21 The Amber plan is a reality due to the

22 dedication of our state\'s broadcasters. They

23 donate air time and resources to assist law

24 enforcement with locating endangered children.

25 The broadcasters association has been a

254

1 stakeholder in the Amber Alert plan since the

2 inception, and is a resource that\'s value cannot

3 be measured monetarily. But it is priceless to

4 the families of the endangered children whose

5 chances of recovery have been increased by the

6 dedication of the broadcast media. Thank you.

7 MR. HEMMINGSEN: Thank you, sir. Two

8 minutes, ma\'am.

9 MEMBER OF THE PUBLIC: I\'m Kate

10 Redmond. I represent no one but myself. And no

11 one paid or coerced me to be here tonight to

12 speak. If you look at the makeup of the panel,

13 you can find a metaphor for the lack of

14 diversity in media. Eight out of 11 of the

15 persons here are white, straight men. This is

16 the homogeneity, the strip malling of radio and

17 television.

18 In looking at how you made this event

19 difficult to participate in with the

20 pre-ticketing process and the incorrect and/or

21 confusing information in the Journal and also

22 spending the hours of 5:30 to 8:00 p.m. tonight

23 with the self-congratulatory punditry, you are

24 going to leave here tonight having missed some

25 very important comments.

255

1 Conglomerated ownership of the airwaves

2 define not only information but culture.

3 Through a steady diet of blood-thirsty racism,

4 our American culture experienced the first Gulf

5 War as a video game of smart bombs. With

6 continued bold-faced propaganda, American

7 audiences get not the in-depth reporting that

8 the rest of the world is getting about us, but

9 uncritical cheerleading for the latest war.

10 If the conglomeration rules are allowed to

11 remain, our national media in this country, with

12 the eroding line of big business and government,

13 will be no more reflective of our communities,

14 no more democratic, than was Pravda.

15 In other words, Commissioners, open a

16 window. It\'s very stuffy in here.

17 MR. HEMMINGSEN: Thank you. Well said.

18 Yes, sir.

19 MEMBER OF THE PUBLIC: Commissioner

20 Adelstein, Commissioner Copps, my name is Bill

21 Honerkamp. I\'m from Rapid City. As head of the

22 Black Hills Badlands and Lakes Association, I

23 work for about 570 tourist businessmen here in

24 the tourism-intense Black Hills. My occupation

25 is tourist promotion. That involves media, paid

256

1 advertising, also press and public relations.

2 A word about advertising, at least radio

3 advertising. Due to the proliferation and the

4 multiplicity of radio stations these days, that

5 audience is becoming so fractionalized that we

6 don\'t buy much radio anymore. It\'s too complex,

7 there\'s too many transactions. Could this be

8 localism gone too far?

9 It\'s my assessment that in a small market

10 like Rapid City, broadcasters here are

11 conscientious and I think they are civic-minded.

12 We know them, they know us, we respect each

13 other as businessmen and as neighbors. They are

14 not faceless corporations. Their news people

15 are good about reporting hard news stories that

16 affect the visitor industry.

17 They report and sometimes they even promote

18 special events and festivals even beyond the

19 standard public service announcements. They are

20 community spirited. Last week, for instance, we

21 borrowed a local TV news anchor to moderate a

22 pre-election candidate forum.

23 My only critique of broadcasting locally

24 involves weekend coverage of fast-moving or

25 fast-breaking local crises. That\'s a time when

257

1 station news crews are short-staffed. Because

2 sometimes during a wildfire or a blizzard or a

3 storm it\'s hard to find local news updates among

4 the national feeds or the pre-recorded programs.

5 But we like broadcasters who are our friends

6 and who are our neighbors. They also give us

7 technical assistance. When we need assistance

8 to transfer an important news story to the

9 national level, our local broadcasters are

10 ready, willing, and able with their equipment

11 and engineers to send the word up line.

12 MR. HEMMINGSEN: Thank you.

13 MEMBER OF THE PUBLIC: They do it

14 because they are friends and neighbors.

15 MR. HEMMINGSEN: Thank you. Yes, sir.

16 MEMBER OF THE PUBLIC: Yes, could you

17 jump up and down with that sign when the time

18 comes? I don\'t want to get yelled at. Jump up

19 and down a little bit, please. I won\'t notice

20 you.

21 My name is Mike Serbola. I used to have a

22 tourism channel here, Channel 79. So I do have

23 some experience with some of the issues being

24 discussed here. And I\'ve noticed that first

25 off, please, support 211 channel or consider it

258

1 because a lot of communities really don\'t have

2 an idea of what like a social service channel

3 would be. So the FCC mandating such a thing

4 would actually spur not only the phone system

5 but a concept of a social services channel to

6 many communities.

7 Also you will note that many of the people

8 are talking about localism, but yet it\'s mostly

9 organizations. So there is a dichotomy here

10 between true localism in the sense of the young

11 man from the high school, for example there

12 aren\'t many people here 20 and under, and

13 localism in the sense of social services,

14 channel-type organizations.

15 I\'m actually a centrist in regards to some

16 of these issues with the large media, but I\'m

17 also in favor of a free market. The two do

18 compete, and I think that one of the problems

19 right now and one of the problems in, for

20 example, I had here in this community, is there

21 is a situation where people don\'t have a concept

22 of what a community channel or what community

23 localism \-- oh, my God, is \-- it can be much

24 more than 30 seconds on a single station cable.

25 There aren\'t any cable representations here.

259

1 There\'s no reason we can\'t have 20 percent.

2 Actually it sounds strange, but 20 percent of

3 the 800 channels, might be 100 local channels.

4 We could air everything from local high school

5 plays to \-- to numerous things.

6 I know that sounds outrageous, but the

7 problem is it\'s based on spectrum right now, the

8 whole philosophy. It\'s not a matter of spectrum

9 as much a matter of protecting our right to

10 communicate, which is actually protected under

11 the Constitution.

12 When they said congregate, it wasn\'t because

13 they were touchy feely. It was because

14 congregate meant to be able to talk and

15 communicate two-way. That is a high

16 value.

17 Also there\'s community health, sense of

18 community. The Center for Disease Control has

19 shown that one of the true prophylactics is a

20 sense of community. It lowers stress and it

21 provides a significant psychiatric benefit. Oh.

22 Thank you.

23 MR. HEMMINGSEN: Thank you.

24 MEMBER OF THE PUBLIC: Thank you.

25 Thank you for your patience at this late hour.

260

1 My name is Linda Gray. I\'m President of Mass

2 Media Montana, which owns and operates stations

3 in Bozeman, Butte, Kalispell, Missoula,

4 Lewistown and Great Falls, Montana. I\'m

5 actually here at the invitation of one of

6 Commissioner Adelstein\'s staff that was extended

7 through our FCC counsel at a meeting last

8 Friday.

9 I\'m here tonight to emphasize the continued

10 importance of a certain Commission rule on

11 competition and localism, specifically the

12 network territorial exclusivity rule, which is

13 now framed for review by the Commission in a

14 request for expedited declaratory ruling filed

15 by Mass Media in February 2004.

16 The request is now an active proceeding and

17 comments and reply comments on the request have

18 been received by the Commission. I\'ve severely

19 edited this, so excuse me as I jump.

20 It\'s important that the FCC maintain the

21 effectiveness of the network territorial

22 exclusivity rule. Local news service and other

23 programming which benefits the local community

24 is structured around a model wherein a base of

25 highly viewed network programs enables us to

261

1 sell enough advertising to pay for the things TV

2 stations do for their local communities like

3 news and other local programming.

4 The current network territorial exclusivity

5 rule was adopted by the Commission to insure

6 that local stations have a fair opportunity to

7 acquire network programming by limiting the

8 amount of territorial exclusivity that stations

9 licensed to other or neighboring communities can

10 obtain from a television network.

11 Right now our station in Great Falls,

12 Montana is suffering from the exact kind of

13 anti-competitive behavior that the network

14 territorial exclusivity rule was designed to

15 prohibit. A network affiliated station in

16 Helena, Montana and in an adjacent market to

17 Great Falls has bargained with a network

18 organization to expand its territorial

19 exclusivity at the expense of the network

20 affiliation of KTGF, Great Falls, Montana. It

21 has all been described in detail in our formal

22 filings with the Commission.

23 Local news service which was very expensive

24 in markets like Great Falls and Rapid City

25 because advertising revenues are not as

262

1 plentiful as in a larger market must have

2 reliable exclusivity protection if the local

3 broadcaster is going to remain committed to pay

4 the cost of true local service. Local news

5 commitments are not expenses that can be turned

6 off like a light bulb.

7 MR. HEMMINGSEN: Ma\'am, your time has

8 elapsed. Thank you.

9 MEMBER OF THE PUBLIC: Thank you. I

10 filed an electronic comment. Thank you.

11 COMMISSIONER ADELSTEIN: We\'ll see your

12 whole statement.

13 MR. HEMMINGSEN: Ma\'am.

14 MEMBER OF THE PUBLIC: Hello, my name

15 is Elizabeth Cook-Lynn and I\'m a member of the

16 Crow Creek Sioux Tribe. I\'m a writer, I\'m a

17 retired professor of Native American studies,

18 and I\'m here representing nobody but myself. We

19 all know that what we\'re talking about here is

20 media monopoly, and I just have a few things to

21 say. I\'ll try to keep it short.

22 When the FCC endorsed those six media

23 ownership rules changes, we all knew we were in

24 trouble. And it includes allowing a single

25 network to control television stations reaching

263

1 45 percent of all the households. It also

2 included the idea that one media company could

3 buy up the daily newspaper, as many as three

4 television stations, and eight radio stations

5 and a cable system all in the same market.

6 And we have I guess been in this situation

7 now for quite some time. I do want to say that

8 I want you to understand that American Indians

9 are not minorities. As my tribesmen tried to

10 get across when you cut them off, we are

11 indigenous people, not people of color, not

12 minorities, not multi-cultural, non-diversity

13 populations. We are indigenous peoples.

14 And so the Indian voice in this part of the

15 country is the indigenous voice of this country.

16 It is precious, it is historical, and it does

17 not deserve the kind of treatment that you have

18 given it this evening. Thank you.

19 MR. HEMMINGSEN: Thank you. Ma\'am.

20 MEMBER OF THE PUBLIC: My name is

21 Charmaine White Face (speaking in native

22 language.) I must say that. That\'s my Lakota

23 name, one of my Lakota names. And on your

24 monitor they keep saying that our indigenous

25 language is a foreign language. I\'m sorry, that

264

1 indigenous language is from here.

2 Localism and diversity does not mean having

3 a brown Native American reporter. I was a

4 television news reporter here in Rapid City for

5 one of the local stations.

6 I was the one that reported when the Supreme

7 Court decision came down that the Black Hills

8 were illegally stolen from the great Sioux

9 Nation. I used to try to have at least one

10 story a week on native issues. I was told that

11 there was too much Indian news on the

12 television.

13 Localism, we need more local TV stations,

14 more local radio stations that actually give a

15 native perspective. It\'s not just so that we

16 can maintain our own native culture and our own

17 native identity, because what I see happening is

18 the whole United States is becoming the borg.

19 The borg is a fictitious outerspace entity

20 that gobbles up human beings and turns them into

21 computers with only one focus. And I see that

22 happening in the United States. And that focus

23 is consumerism. And I see the borg trying to

24 market that to the rest of the world.

25 Without diversity, without your knowing that

265

1 you are illegally trespassing on our territory,

2 that you have no authority to even be conducting

3 this hearing here because it is still the great

4 Sioux Nation as you took an oath of office to

5 uphold the U.S. Constitution and within the

6 U.S. Constitution is Article VI, which says that

7 treaties are the supreme law of the land.

8 Without your knowing that, without our being

9 able to get that word out, which is diversity,

10 then you also and the nation is missing a great

11 opportunity to retain and regain your

12 integrity.

13 There just ended this past Friday a major

14 meeting at the United Nations called the

15 Permanent Forum on Indigenous Issues. At that

16 meeting there were people from throughout the

17 United States, indigenous people, including

18 myself, who attended this United Nations

19 meeting.

20 But the conglomeration of media under one

21 big corporation that controls everything and

22 only want to get one message out did not allow

23 you or any of the other non-native people,

24 non-indigenous people in the United States to

25 know what was going on right in New York City.

266

1 MR. HEMMINGSEN: Thank you, ma\'am.

2 MEMBER OF THE PUBLIC: I\'m sorry that

3 you are missing out on this opportunity to learn

4 more. Thank you.

5 MR. HEMMINGSEN: Thank you. Yes, sir.

6 MEMBER OF THE PUBLIC: Good evening.

7 My name is Tim White Face. I\'m an Oglala Lakota

8 from the Pine Ridge Reservation. First of all,

9 I want to say that I live in two different

10 worlds. The first is my Lakota traditional

11 ways, and the other is the modern world of

12 today.

13 This evening I bring four issues before you

14 illustrating my two worlds. An important member

15 of my community was killed in a vehicle accident

16 with his granddaughter last week and there was

17 no news coverage of this. Another is a Lakota

18 soldier from Iraq and also a Yale graduate was at

19 Little Wound High School graduation, and

20 there was no news coverage of this. When

21 severe tornadoes hit Pine Ridge Reservation a

22 few years ago, we had no prior warnings.

23 These are just a few examples of

24 inconsistencies in news reporting. Media needs

25 to be forced with regulations to cover our

267

1 Native American issues. Otherwise they will not

2 cover our issues.

3 In closing I would like to ask how many

4 people employed by the FCC are Native American.

5 Thank you.

6 MR. HEMMINGSEN: Thank you, sir. I

7 don\'t know if that\'s a\...

8 MEMBER OF THE PUBLIC: My name is Chuck

9 Wagner, and I thank you all for the opportunity

10 to speak here, although I think perhaps I have

11 very little to contribute at this point. I\'d

12 especially like to --- or would like to thank the

13 gentlemen from Washington who, it\'s probably 2

14 o\'clock your time or something thereabouts, and

15 I appreciate your coming here and listening and

16 hearing us out to the very end, even more than

> 17 I appreciate your coming out here, because if you
>
> 18 come out here and don't listen. . . (applause).

19 Having said that, I am nobody, absolutely

20 nobody. And the young lady stole my thunder

21 when she said she represented nobody. I\'m very

22 poor. I live on a little bit less than \$500 a

23. month. I have a disability thing. The one thing

24. that I do do -- I have no children, I have no

> 25 grandchildren. I have no parents, obviously.

268

1 And the one thing I do do is I listen, and I

2 watch television and radio.

3 And I would say --- you know, I even sleep

4 with the radio on, although my doctor told me

5 that\'s not good for me. But I do. I don\'t have

6 anything to say \-- Thank you.

7 I don\'t have anything to say except please,

8 these radio --- or these airwaves belong to us

9 people. They are not yours, and I know you\'re

10 well aware of this, personally to do with as you

11 please. They don\'t exist for the very wealthy

12 or the very few, what, 20, 30, 50, 100,000

13 people who make a very lucrative business \-- a

14 very lucrative living in the business. They

15 belong to us.

16 And I don\'t know enough. I feel a little

17 bit like the \-- I don\'t know what\'s going on. I

18 mean, I don\'t know about the technicalities. I

19 feel a little bit like the child that died and

20 went to heaven and God said, \"Child, what would

21 you like to have?\" And the child said, \"What\'s

22 there? What have you got?\"

23 And I don\'t know what the alternatives and

24 what the opportunities are that you hold in your

25 hands and what you can do for us. But I ask you

269

1 to please act in our best interest. Thank you.

2 MR. HEMMINGSEN: Thank you, sir. Yes,

3 sir.

4 MEMBER OF THE PUBLIC: Thank you. My

5 name is Bob Flott. I\'m president of A-O

6 Broadcasting Corporation, KTMN radio,

7 Cloudcroft, New Mexico. I live in Alamogordo.

8 We appreciate the Commission being here this

9 evening. I know it\'s early in the morning for

10 you guys, so we do appreciate that.

11 These meetings we feel are a great way for

12 the Commission to obtain information about how

13 broadcasters serve our communities and to

14 identify areas for improvements, and we've heard

15 some of those this evening.

16 Local radio, gentlemen, is all I know. I

17 have documented my service to Alamogordo, New

18 Mexico with a noncommercial station, KUPR, which

19 is a 100-watt station which went on the air back

20 on December 6, 2003. And during the first less

21 than six months of our programming, this is from

22 my public file on interviews and other local

23 events we\'re involved with in the community.

24 We\'re serious local broadcasters.

25 In addition to the help I give KUPR, I own

270

1 KTMN 97.9 in Cloudcroft. I\'ve been trying for

2 over a year to provide local service to

3 Cloudcroft and other communities in the

4 Sacramento Mountains.

5 Unfortunately, I have encountered a serious

6 obstacle, a lack of respect in the Audio

7 Division for objects of public service you are

8 trying to promote. And I\'m going to have to cut

9 this a little bit short.

10 I\'ve had some situations with the

11 transmitter which have been rectified. We asked

12 the FCC to go ahead and change the transformer

13 location to another location, which they finally

14 approved. But in the time lapse of almost 10

15 months, we had just less than two months to get

16 the station on the air.

17 Section 307(c)(3) of the Communication Act

18 says that when a license application is on

19 appeal to the full Commission, as mine is, the

20 station has the automatic right to continue

21 service while the appeal is being heard.

22 We have repeatedly stressed this statute as

23 well as the urgent need for KTMN\'s public

24 service to the Audio Division. At no time has

25 the Division even given lip service to Section

271

1 307(c)(3) much less to the public interest in

2 allowing KTMN to broadcast to its service area.

3 When I left the studio this morning, we had

4 \-- we have a huge forest fire going on there by

5 Capitan. Yesterday it was 8,000 acres. This

6 morning it was over 23,000, consumed 12 homes, a

7 lot of other cabins. I need to be on the air

8 now to serve my community. It\'s local radio.

9 MR. HEMMINGSEN: Thank you, sir.

10 MEMBER OF THE PUBLIC: Thank you. And

11 I have documentation for you as well. Okay.

12 MR. HEMMINGSEN: Thank you. Yes, sir.

13 MEMBER OF THE PUBLIC: My name is

14 Curtis Caroll, and I\'m from Eagle Butte,

15 South Dakota. And I also am just speaking for

16 myself, although I do believe I have some points

17 of public interest which I\'ll try to get to.

18 First, I thank you for having this hearing

19 here and hearing everybody out. And I will say

20 that I am struck by the fact that virtually

21 everyone that has spoken has spoken in favor of

22 expanding or at least sustaining the diversity

23 that we do have, the localism that we do have.

24 Most of the speakers want more, not less.

25 That\'s almost universal I\'m hearing.

272

1 Now, having my main point that I want to get

2 to with regard to Eagle Butte \-- and I just

3 wanted to make those general comments first.

4 What we have in Eagle Butte, we are served by a

5 station that\'s actually on Standing Rock. It\'s

6 one of the three local stations I believe that

7 Mr. Casey of KILI referred to and that is KLND.

8 The service that provides locally is

9 incredibly important, and I don\'t think it could

10 be done other than locally. Sometimes this is

11 emergency things. But sometimes it\'s things

12 like funerals, less than emergency still storm

13 notices that have to do with travel,

14 cancellations of things particularly in the

15 wintertime, I don\'t think that can be done other

16 than locally. It is a very important local

17 function. I think it\'s very important to

18 preserve that. Thank you.

19 MR. HEMMINGSEN: Thank you, sir.

20 MEMBER OF THE PUBLIC: Good evening.

21 My name is Bob Nesheim, and I\'m here to address

22 three issues. First, as Mr. Duhamel,

23 Ms. St. John, Mr. Owens, and Mr. Harris have

24 said, there are positive local elements in

25 broadcast. Local news, local sports, and EAS

273

1 are what we expect from local stations.

2 As Mr. Meyer and Mr. Casey demonstrated,

3 community media can be much more. It can focus

4 on issues important to the local community

5 including the public affirmation of the Lakota

6 language, which enables a broadcast medium to be

7 a source for the righting of past wrongs.

8 President Short Bull talked of a series

9 focusing on outstanding native citizens. This

10 is programming that the FCC should encourage,

11 not merely public service but public interest

12 programming that explores the flavor of local

13 communities.

14 Secondly, looking at the numbers, 50 percent

15 of the Rapid City radio market is owned by one

16 out-of-state company, and 33 percent of the

17 television market is owned by two out-of-state

18 companies. I cannot imagine that a market which

19 is primarily owned by out-of-area companies will

20 provide anywhere near the level of local

21 programming we receive. This is why I recommend

22 that the FCC severely limit out-of-area

23 broadcast ownership.

24 And finally, I feel no need to sell you on

25 the local benefits of KTEQ, and I am not here to

274

1 address the loss of license but to ask how long

2 we have to wait for a window for a noncommercial

3 educational radio license. As a past manager of

4 KTEQ and a member of its licensing board, I

5 implore you to do everything in your power to

6 make the rumored September licensing window a

7 reality. Thank you for your time and interest.

8 MR. HEMMINGSEN: Thank you, sir.

9 MEMBER OF THE PUBLIC: Yes, sir. Thank

10 you, Steve. Welcome and thank you for coming to

11 South Dakota. My name is Lieutenant Colonel

12 Tracy Settle. As the retention and recruiting

13 manager for the South Dakota Army National

14 Guard, it is a pleasure to inform you of the

15 tremendous support the TV and the radio stations

16 across the state provide the South Dakota

17 National Guard.

18 As a partner in telling the Guard story to

19 the citizens of South Dakota, the South Dakota

20 Broadcasters Association and its members have

21 provided in the past nothing less than

22 outstanding support in providing air time for

23 National Guard public service announcements and

24 providing objective factual news coverage of

25 National Guard activities.

275

1 Since January 2003 the 4,500 members of the

2 South Dakota National Guard have been answering

3 the call to duty both at home and abroad

4 supporting operation Noble Eagle, Enduring

5 Freedom and Iraqi Freedom in a very significant

6 way.

7 During its numerous activation ceremonies,

8 pre-mobilization operations, welcome home

9 ceremonies, and family support functions in over

10 31 different communities statewide, the

11 South Dakota Broadcasters Association has gone

12 above and beyond the call of duty providing

13 coverage and good news stories to the public.

14 Reporters and videographers have accompanied

15 troops to training centers, mobilization

16 stations, and even trips to Bosnia and Kosovo.

17 This firsthand style of reporting has provided

18 the residents of South Dakota a view of the

19 South Dakota National Guard like never before.

20 The newscasters and reporters have always

21 been professional, objective, educated and

22 always interested in learning more about how

23 they can portray the soldiers and airmen of the

24 guard in the most positive light. We have a

25 superb military organization in this state, and

276

1 the media has insured that the heroes are

2 honored and their stories are told.

3 It is clear that the members of the

4 South Dakota Broadcasters Association support

5 the guard family faithfully and will continue to

6 provide that coverage that South Dakotans have

7 come to expect.

8 I thank you for tonight\'s opportunity to

9 provide you with a strong endorsement for the

10 South Dakota media community. Thank you.

11 MR. HEMMINGSEN: Thanks, Colonel. Yes,

12 sir.

13 MEMBER OF THE PUBLIC: Hello, my name

14 is Mike Reardon. I\'m a local musician and

15 concert promoter. I\'m also President of

16 Backroom Productions. We put on Music in the

17 Park that you may have heard about earlier.

18 I\'ve also been a DJ on KTEQ, a local music show,

19 and I\'m also a candidate for State Senate in

20 District 35. Every now and then I sleep also.

21 I guess I would like to address play lists,

22 radio play lists, and the music that\'s on

23 commercial radio. And I\'ll sum it up in one

24 word, and I\'ll speak for all the people that

25 feel the same way: Boring. Boring. Not only

277

1 is very little local music played, very little

2 local music from around the planet is played.

3 It\'s the same albums that I\'ve owned since

4 1972, \'73, \'76. There\'s just not much new music

5 happening on the radio. So to all the radio

6 station owners I would say, let\'s hear some new

7 stuff, local and otherwise. Thank you.

8 MR. HEMMINGSEN: Thank you. Yes, sir.

9 Man over here.

10 MEMBER OF THE PUBLIC: (Speaking in

11 native language.) My name is Tim Steckline.

12 I\'m a professor of rhetoric and mass

13 communication at Black Hills State University.

14 I\'m not here because my boss told me to be here.

15 I did not have anyone to pick up my ticket for

16 me as a subordinate this morning, and I am not

17 testifying for a quid pro quo from a broadcaster

18 I do business with.

19 I remember as a kid growing up in Colorado I

20 used to listen late at night to try to pick up

21 radio stations. And as it got harder as the

22 evening went on, I found there was the great

23 station coming out of Oklahoma City called KOMA.

24 Huh.

25 And KOMA, you can still pick it up in the

278

1 middle of the night when it out broadcasts

2 everybody else. It blew them away. And it was

3 okay in its place. But you know, there was

4 something fascistic about KOMA, too, because it

5 blew everyone else off the band.

6 And that\'s one of my problems with the way

7 the media are going nowadays. It was an

8 800-pound gorilla in a china shop. And as long

9 as it was regulated, it was okay. But when an

10 800-pound gorilla gets unregulated, we\'re all in

11 trouble and it puts other stations into a coma.

12 The small stations within a community are

13 pretty important. Ever since 1927 supposedly

14 this group is supposed to protect the airwaves

15 for us, and the FCC was supposed to be a public

16 trust. Now it\'s more like a candy store since

17 the 1996 Telecommunications Act, I think.

18 They are giving away the store. And ever

19 since we decided to buy a Powell, I think we\'re

20 really in trouble here. It\'s KOMA everywhere,

21 every day, every night.

22 I would like \-- earlier Alan Harris from

23 Green River said that localism is enforced by a

24 listener who switches when they get tired of

25 what you are saying or if it\'s not useful to

279

1 them. But if the other stations are all saying

2 the same things, there\'s no point in switching.

3 All there is is to turn it off or to just listen

4 to what you are getting.

5 It was not a local owner who decided to

6 depopulate the Minot station. The tributes

7 you\'ve been hearing all night are actually

8 coming from a victim with a knife at its throat.

9 You have the capacity to give this thing, give

10 radio a break and to live again. Please, don\'t

11 cut its throat. Roll back the

12 Telecommunications Act, stop media convergence.

13 Thank you.

14 MR. HEMMINGSEN: Thank you. I\'m old

15 enough to remember the old KOMA. You bet. Yes,

16 sir.

17 MEMBER OF THE PUBLIC: Good evening.

18 I\'m Jay Davis. I live here in Rapid City.

19 There\'s a lot I could say about localism,

20 but I actually stayed here this late to read a

21 statement from a gentleman from the other side

22 of the state, Grant Peterson, from Brookings,

23 South Dakota who could not be here tonight. So

24 I\'m going to read his letter into the record.

25 My name is Grant E. Peterson. I live at 207

280

1 Half Moon Road in Brookings, South Dakota. I\'m

2 currently an employee of the Waitt Radio,

3 namely KJJQ AM, KKQQ FM, and KDBX FM. The first

4 two licensed from Volga, South Dakota and the

5 other from Clear Lake, South Dakota.

6 By writing this letter I may jeopardize my

7 current part-time job as an announcer on KJJQ AM

8 radio. I do an afternoon entertainment talk

9 program called South Dakota Great Afternoon

10 Smorgasbord. I\'ve been in radio in Brookings

11 since 1963, including a number of years at KBRK

12 AM and FM, the other two stations in Brookings

13 now owned by Three Eagles Communications.

14 At this time Three Eagles has made an offer

15 to buy KJJQ, KKQQ, and KDBX from Waitt Radio

16 and seeks FCC approval. I would be opposed to

17 the FCC allowing this to happen. It would mean

18 all five of the radio stations operating out of

19 studios in Brookings would be under one single

20 ownership.

21 That would mean that one philosophy only

22 would be the influence of all five stations.

23 That would mean that there would be just one

24 news departments for all five stations. That

25 would mean that all sports would be under the

281

1 influence of just one owner. That would mean

2 that the rate structure would be under just one

3 management system.

4 Let me give you just one very recent example

5 of how this could affect the public service that

6 a radio station can provide. There\'s the

7 Brookings County Historical Society, a small

8 group of people who have donated time and

9 dollars over several years. This is a nonprofit

10 organization that has several buildings in Volga

11 displaying various artifacts and information.

12 It is open from Memorial Day through Labor

13 Day each year from noon to 4:00 p.m. It is open

14 seven days a week. All the hours of the staff

15 are donated. Absolutely nobody gets any pay.

16 The stations owned by Three Eagles recently

17 submitted a proposal stating that if the society

18 spent \$100 in advertising, then they would

19 receive several bonus announcements.

20 MR. HEMMINGSEN: Sir, time is up. I\'m

21 sorry, but I think the Commission got the drift.

22 MEMBER OF THE PUBLIC: Okay. Well, as

23 I understand \-- I\'ll read the final two

24 paragraphs. Just if the approval of the

25 Brookings station \--

282

1 MR. HEMMINGSEN: Sir. I\'m sorry, sir.

2 With all due respect \--

3 COMMISSIONER ADELSTEIN: We would like

4 to see the letter for the record.

5 MEMBER OF THE PUBLIC: I\'ll put it in

6 the record.

7 MR. HEMMINGSEN: With all due respects

8 to my friend, Grant. Yes, sir.

9 MEMBER OF THE PUBLIC: Hi. Thank you.

10 You are almost done. My name is Hugh Boyle.

11 I\'m here representing the Rapid City Club for

12 Boys. I\'m the President of the Board of

13 Directors. Our mission at the Rapid City Club

14 for Boys is to build boys, not mend men.

15 I\'d like to thank the local broadcasting

16 here for the thousands of dollars that they have

17 given in free public service announcements over

18 the 40 years of our existence. On behalf of the

19 1,400 boys, thank you for this gift.

20 You should also be aware of the fact that

21 the Rapid City Club for Boys approves of this

22 message.

23 MR. HEMMINGSEN: Thank you. Bob

24 Newland.

25 MEMBER OF THE PUBLIC: Thank you,

283

1 Steve. Greetings everyone. I am Bob Newland.

2 I was raised on a ranch northwest of here, and

3 I\'m currently a freelance publisher, and I\'ve

4 lived in the Black Hills all my life.

5 I think it\'s interesting that the local

6 media outlets sent their sales staff down here

7 this morning to scarf up a bunch of tickets

8 which they then apparently distributed to a

9 seemingly endless group of cheerleaders who get

10 PSAs from these outlets.

11 The annoying thing about that was that the

12 testimony of these cheerleaders provided no

13 argument against restrictions and further

14 ownership consolidation. But we do treasure the

15 KOTA footage of the National Guard burning ditch

16 weed.

17 I have a couple of quick anecdotes. Ten

18 years ago \-- well, I\'m a devotee of libertarian

19 politics and free market solutions. And 10

20 years ago the first libertarian, the first

21 alternative party was on the ballot for governor

22 in South Dakota in 60 years.

23 Nathan Barton had been granted appearances

24 with the other candidates in other forums across

25 the state, but a local TV station arranged a

284

1 debate and would not allow Nathan Barton to be

2 in it.

3 So I called the anchor woman, and I asked

4 her why. And she said that, \"We found that when

5 we allow alternative candidates in these

6 debates, the debates degenerate into an exchange

7 of ideas.\"

8 I don\'t have time to tell my other anecdote.

9 But I would say that if I were an FCC

10 commissioner, I would do everything within my

11 power to prevent further consolidation and to

12 insure and encourage greater diversity, the

13 greatest possible diversity in media ownership.

14 Thanks a lot.

15 MR. HEMMINGSEN: Thanks, Bob. Geez,

16 that\'s a great T-shirt.

17 MEMBER OF THE PUBLIC: Thank you. My

18 name is Tim Martinez. I\'m a professor of

19 political science, and I\'m here as a citizen and

20 not as a consumer. If the FCC is going to serve

21 its mandate to assure the local public interests

22 are served in broadcasting, it must represent

23 the concerns of real citizens and stop catering

24 to the demands of the money hungry corporate

25 elite that rule much of broadcasting today.

285

1 What are the demands of this corporate

2 elite? The corporations constantly complain of

3 the cost of any regulation aimed at protecting

4 the public interest. Despite these complaints,

5 these media corporations clearly see

6 broadcasting licenses as a license to print

7 money.

8 These corporations demand protections that

9 allow them to use the public\'s airwaves to

10 increase their ability to serve as a more

11 effective audience delivery system for

12 advertisers. The ability of these corporations

13 to achieve their demands is clearly evident in

14 the FCC\'s willingness to renege on its original

15 mandate under the guise of free market

16 deregulation as well as Chairman Powell\'s

17 abandoning of these hearings.

18 In sum, to reduce the lifeblood of a

19 democratic republic to the operation of market

20 forces is to displace the public\'s interest with

21 mere commercial activity. This is the triumph

22 of corporate commercial interests over the

23 public\'s interest in national and local

24 democratic governance. Thank you.

25 MR. HEMMINGSEN: Thank you. Boy, look

286

1 at that shirt. That\'s a great shirt.

2 MEMBER OF THE PUBLIC: Good evening,

3 and thank you. Commissioner Adelstein and

4 Commissioner Copps, you are to be commended for

5 your fortitude and your ability to pay attention

6 through things like this. As a news reporter at

7 various times over the last 30 years I\'ve had to

8 cover long things as well as other more spot

9 news events like fires that go on and on and on.

10 I\'m Ted Langdale. I\'m actually visiting the

11 Black Hills for the first time, out here from

12 California attending some graduations in

13 Minneapolis and then up in Spearfish. I\'ve been

14 enjoying my time here. Coincidentally, you\'re

15 here so I\'m here as well.

16 I have basically seven or eight pages of

17 things, stuff I\'d winnowed down to what I

18 thought I could get into four minutes. I\'m

19 going to file it. But in listening to what

20 people were talking about tonight, what it

21 really seems to me that the problem is and what

22 the problem that needs to be solved is the fact

23 that the FCC doesn\'t have enough money to get

24 the staffing that it needs to get rid of the

25 backlogs so you don\'t have to keep doing these

287

1 freezes.

2 If you had the staffing, you could push the

3 paperwork through in a reasonable amount of

4 time. The people who need the communications

5 facilities, whether they are broadcast or

6 telecommunications of some other kind, would be

7 able to realize the benefits of those things,

8 and people wouldn\'t be up here complaining about

9 the things they\'ve been complaining to you

10 tonight.

11 My question I guess is, how much will it

12 take to do that in terms of dollars? And how

13 soon can we help you badger Congress to do that?

14 And perhaps lastly, I hadn\'t intended to

15 introduce politics into this, but seems to me

16 that you also need some friends in Congress and

17 maybe that\'s an issue to consider during the

18 elections coming up later this year or next

19 month for those here in South Dakota. Is that a

20 question you can answer about how much, how

21 soon?

22 COMMISSIONER ADELSTEIN: Well, the

23 issue of \-- if you\'re talking about opening up

24 the window on noncommercial licenses is that \--

25 MEMBER OF THE PUBLIC: Getting money to

288

1 get the staff to get the backlogs that basically

2 are the reasons \-- are the cause of the freezes.

3 What would it take to clear all that up?

4 COMMISSIONER ADELSTEIN: If you\'re

5 referring to that, actually we\'re involved in

6 judicial proceedings having to do with the

7 interpretation of a Congressional statute that

8 makes it difficult to move forward more quickly.

9 It\'s not an issue of staffing but one of

10 litigation at this point.

11 MEMBER OF THE PUBLIC: Okay. And how

12 many lawyers would \-- could you throw at it?

13 How many more lawyers could you throw at it to

14 help it.

15 COMMISSIONER ADELSTEIN: We\'ve got

16 hundreds of lawyers trying to get this resolved

17 right now. Believe me.

18 MEMBER OF THE PUBLIC: Thank you. I do

19 appreciate it. I see you\'ve got two people

20 left. Enjoy your trip back to Washington, and

21 I\'ll enjoy my trip back to Spearfish, even if it

22 is in the dark.

23 MR. HEMMINGSEN: Yes, sir.

24 COMMISSIONER ADELSTEIN: There\'s

25 another lawyer right here.

289

1 MEMBER OF THE PUBLIC: Thank you. I\'m

2 Jim Leach. I\'m here as a citizen, and I admire

3 your endurance. I thank you for the opportunity

4 to be heard. We have a real problem here in

5 South Dakota. In October 2002 we were getting

6 ready for an election and we had incessant

7 reports of voter fraud, voter fraud, voter

8 fraud, voter fraud, voter fraud, incessantly

9 from the media in this state.

10 Well, 99 percent of it was unfounded. The

11 election came and went. The attorney general,

12 the sheriffs, the auditors all said there was

13 nothing to it. No one attempted to vote

14 wrongfully let alone actually voted wrongfully.

15 So why am I standing here talking to you

16 about it at 11:30 at night two years later?

17 There are three problems it resulted in. Number

18 one, it was insulting and discouraging to Native

19 Americans from participating in the process, the

20 political process, because all the allegations

21 were directed at them.

22 Number two, it resulted in a new voter

23 identification law which, as Mr. Duhamel has

24 previously stated, will in fact make it more

25 difficult for Native Americans on reservations

290

1 to vote because they don\'t \-- not as many of

2 them carry ID cards as someone like me does.

3 Number three, it resulted in a problem of

4 continuing perceptions among non-Indians that

5 Native Americans who vote in this state are

6 suspect of engaging in voter fraud.

7 Commissioner Copps, you asked about the

8 relationship between media concentration and

9 political participation. In South Dakota our

10 experience two years ago is a classic textbook

11 example of the relationship.

12 Commissioner Adelstein, you asked about more

13 consolidation, was it a good idea or not. I say

14 we have too much already here. If there is a

15 model for true localism, it is KILI radio. To

16 all South Dakota broadcasters I say just one

17 thing. I mean, it\'s great you do what you do.

18 I\'m very thankful for it. But we have an

19 election coming up this year again. We\'re

20 already seeing unfounded rumors of Native

21 American \"voter fraud\" in the media. Let\'s not

22 do the same thing, please, this time around

23 also.

24 MR. HEMMINGSEN: Thank you, sir. Thank

25 you.

291

1 MEMBER OF THE PUBLIC: Thank you.

2 MR. HEMMINGSEN: The only people who

3 remembered are those who are first and those who

4 are last.

5 MEMBER OF THE PUBLIC: I\'m the last.

6 That\'s right. I\'m the omega. My name is David

7 Guttierez. I\'m a local resident, and I\'m an

8 advocate for noncommercial broadcasting in rural

9 and small community areas. I\'m going to use

10 classical music as a paradigm, but it could be a

11 multitude of things. A 24-hour, seven-day-a-week

12 classical musical broadcasting station would be

13 a desirable component of an FM frequency in any

14 rural community.

15 Most citizens in a rural and small community

16 area would appreciate the availability of such a

17 station. Realistically this type of station is

18 not commercially viable outside of a large urban

19 market. However, through a noncommercial

20 station, a classical music station could be

21 introduced and sustained in rural and small

22 community service areas.

23 Noncommercial broadcasters in general and

24 especially in rural and small community service

25 areas are at a distinct financial and resource

292

1 disadvantage. This makes such services

2 difficult if not impossible to provide for the

3 vast rural and small community areas in this

4 nation.

5 Licensing policies and requirements could be

6 developed to foster such broadcasters who would

7 in turn increase the number of distinct and

8 varied media resources available, especially to

9 rural and small community service areas.

10 Because of the limited resources in rural

11 and small community settings, licenses could be

12 issued more readily to allow for the use of

13 technology such as satellite or Internet to

14 broadcast stations \-- to broadcast existing

15 services to rural and small community service

16 areas.

17 Also rules of operation could be modified to

18 realistically match the available personnel and

19 financial resources for local noncommercial

20 broadcast stations in rural and small community

21 areas.

22 Increased issuance of translator licenses to

23 noncommercial broadcasters would allow for

24 efficient and economical broadcast of

25 programming to large, rural, and small community

293

1 service areas from existing noncommercial

2 broadcast sources.

3 In conclusion, the federal government

4 through the REA brought electricity to the

5 underserved, unprofitable, rural and small

6 communities of America in the early 20th

7 Century. Hopefully the FCC will bring the

8 benefits of many information resources available

9 to the underserved, unprofitable rural and small

10 communities of America in the 21st Century.

11 MR. HEMMINGSEN: Thank you, sir.

12 MEMBER OF THE PUBLIC: Thank you for

13 your time.

14 MR. HEMMINGSEN: Apparently you only

15 thought you were the last. Ma\'am.

16 MEMBER OF THE PUBLIC: Thank you,

17 Commissioner Adelstein and Commissioner Copps.

18 A year ago in May I saw the first article about

19 the media consolidation and I was alarmed. I

20 contacted \-- I sent letters to my three

21 Representatives in Washington and the President,

22 and I\'ve watched articles come and go since

23 then. And my alarm is increasing. And then

24 when I hear your concern, it\'s increasing

25 considerably more.

294

1 Tom Hennies spoke gracefully on the subject

2 and the Indian lady who spoke about it,

3 Elizabeth Cook-Lynn, and Mr. Newland, all three

4 of them. I just really am concerned about it

5 because I like \-- I like to read my newspaper.

6 I like to get the news, whether it\'s the British

7 news late at night on public television or

8 Lehrer or whichever station it is. But \-- and I

9 realize, you know, different ones have different

10 opinions.

11 But if we get the large media consolidation,

12 we\'re not going to have, I fear, the

13 availability of both sides of an issue, and I \--

14 I\'m concerned about that. Just wanted to say

15 that. Thank you very much.

16 MR. HEMMINGSEN: Thank you. The lines

17 appear to have ended. Commissioners, I turn the

18 ship back over to you.

19 COMMISSIONER ADELSTEIN: That was a

20 great final word there. Commissioner Copps, do

21 you have any concluding observations for us?

22 COMMISSIONER COPPS: I would just thank

23 everybody. I think that this has been very

24 helpful. We had a diversity of input. I think

25 our debate got a little more robust as we got a

295

1 little further into the evening. I learned that

2 there are some good things going on out here,

3 quite a bit of them, quite a lot of them. I

4 learned that there were some problems out here,

5 particularly as regards the participation of

6 the, and the representation of, the Native

7 Americans, and some feeling that maybe we\'ve got

8 a little more work to do on diversity.

9 I guess my only advice would be to those who

10 think things are well with diversity and are

11 proud of that, keep plugging away and doing what

12 you can. And to those of us in this audience

13 who think there is still a ways to go and that

14 there\'s a larger threat out there that could be

15 coming this way, you need to keep plugging away,

16 too. But it\'s going to take everybody\'s efforts

17 to ward this threat off.

18 I want to thank our Localism Task

19 Force, Bob and Michele, and everybody

20 else who I think did a superb job in

21 putting this together tonight.

22 I thank all of the panelists, all the

23 participants, and your native son here,

24 Jonathan, for an outstanding job. It was a

25 pleasure to be here.

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1 COMMISSIONER ADELSTEIN: Thank you,

2 Mike. I think that\'s an excellent summary of

3 what we heard tonight. We really heard a lot of

4 eloquence from the people of Rapid City. It\'s

5 incredible what you\'ve done in two minutes.

6 You\'ve spoken volumes. You\'ve reminded us of

7 how much \-- how much pride we have in ourselves

8 and how \-- why we have such pride.

9 We\'ve really shown consideration for one

10 another in a way that I knew this community

11 would. It\'s not fun to have to say it in just

12 two minutes, but the idea is we want everybody

13 to be heard and in a reasonable time, if this is

14 a reasonable time, and I think it is because

15 those of you who are hard core are still here.

16 We appreciate it.

17 We\'ve heard concern about certain issues.

18 We\'ve heard good things that can happen here.

19 We\'re going to take this message back to

20 Washington. We\'re going to share it with our

21 Chairman and our colleagues, they can look at

22 the record of this hearing.

23 In a minute we\'re going to hear a wonderful

24 Lakota song from Tim White Face, and we very

25 much appreciate it. It\'s a great way to end.

297

1 But I\'d like to just thank some people here.

2 First, our two sign interpreters really were

3 going at it for a long time. Our court

4 reporter\'s fingers are about to fall off, but

5 she\'s still going strong down there. Thank you.

6 To our wonderful moderator, Steve Hemmingsen, he

7 didn\'t realize he was in for an all-night duty

8 here. But thank you for sticking with us.

9 MR. HEMMINGSEN: Especially since they

10 flew home without me.

11 COMMISSIONER ADELSTEIN: Of course we

12 want to thank the School of Mines for hosting us

13 here, a wonderful facility. We thank, then, all

14 of our panelists, especially those who hung out

15 to the bitter end here and listened and heard

16 what the community had to say to you. They

17 really wanted you here, and we thank you for

18 participating.

19 Especially, you know, to our staff. As

20 Commissioner Copps said, these are dedicated,

21 wonderful public servants. They\'ve worked so

22 hard to make this happen.

23 I remember when Commissioner Copps and I kind

24 of took this on the road early on by ourselves

25 out of a backpack maybe or the trunk of a

298

1 rental car. And it\'s a lot better to have \--

2 you know, drive down the road in the big

3 Cadillac limo like we have with all the help

4 we\'ve had from you. You\'ve done an outstanding

5 job. It\'s like having a whole RV compared to

6 what we\'ve been through. And, you know, an

7 example of that kind of dedication, we have a

8 lot of wonderful people. Without going through

9 them all, one of them, Bob Ratcliffe, it\'s his

10 birthday today and this is how he spent it, with

11 us. Thank you, Bob, and happy birthday to you.

12 So with that, we could \-- we\'d love to hear

13 from Mr. White Face of the Oglala Sioux Tribe,

14 honoring us with a song commemorating this

15 event. Thank you so much for being with us.

16 (Mr. White Face performed.)

17 COMMISSIONER ADELSTEIN: Thank you,

18 Mr. White Face, for helping us commemorate this

19 way. The hearing of the FCC is now adjourned.

20 (The hearing adjourned at 11:45 p.m.)

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1 C E R T I F I C A T E

2

3 STATE OF SOUTH DAKOTA }

} ss:

4 COUNTY OF PENNINGTON }

5

I, Jacqueline K. Perli, Shorthand Reporter, a

6 notary public in and for the aforesaid county and that

the testimony in the proceedings was taken by me in

7 machine shorthand and was thereafter reduced to

typewritten form by me or under my direction and

8 supervision, that the foregoing transcript is a true

and accurate record of the testimony given to the best

9 of my understanding and ability.

10 I FURTHER CERTIFY that I am neither counsel for,

related to, nor employed by any of the parties to the

11 action in which this proceeding was taken; and,

further, that I am not a relative or employee of any

12 attorney or counsel employed by the parties hereto,

nor financially interested, or otherwise, in the

13 outcome of this action; and that I have no contract

with the parties, attorneys, or persons with an

14 interest in the action that affects or has a

substantial tendency to affect impartiality, that

15 requires me to relinquish control of an original

deposition transcription or copies of the transcript,

16 or that requires me to provide any service not made

available to all parties to the action.

17

Witness my hand and seal at Rapid City, South

18 Dakota, this 25th day of June, 2004.

19

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

20 JACQUELINE K. PERLI

Shorthand Reporter

21 Notary Public

22 My commission expires: May 9, 2007

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