Hardwiring Infuence-NYS Cable Common Cause

The Cable TV Industry: Hardwiring Influence

November 2008A “Connect the Dots” Report

Common Cause/New York• Common Cause/New York is the citizen's lobbyist

and we speak up for clean elections and ethical standards for our elected officials. We stand up for responsive government. For years, we've provided a clear, strong voice for you and the citizens of New York.

• CC/NY is a leading force in the battle for honest and accountable government. In the past three decades, by fighting together we have enacted real change and will continue to do so in New York and nationally.

Today’s Presenter• Susan Lerner

– Susan is the executive director of Common Cause New York. – Prior to her recent return to New York, Susan was the executive

director of the California Clean Money Campaign. – She served as a member of the Steering Committee of the

Commonwealth Club's Voices of Reform Project and on the Board of Trustees of the California State Summer School for the Arts.

– She founded and chaired the Committee for Judicial Independence, a grassroots organization dedicated to educating and activating Americans to the importance of an independent federal judiciary, and lead a statewide coalition of groups active on federal judicial nominations.

– For almost 20 years, Susan was a trial lawyer in Los Angeles specializing in complex commercial litigation and intellectual property.

– She is a graduate of the University of Chicago and NYU School of Law.

The Cable Industry: Hardwiring Influence , a “Connect the Dots: Money in Politics” report

• The Cable Industry: Hardwiring Influence, shines a light on one of the factors influencing the deregulation fervor in New York State’s cable markets, namely, campaign and lobbying dollars spent by the small number companies that dominant the industry in New York.

A Note on Methodology: Campaign finance data provided in this report is cultivated from disclosures provided to the New York State Board dating back to 1999 and available at the website of the New York State Board of Elections. Lobbying expenditures are cultivated from the New York State Commission on Public Integrity and range from January 2005 through July 2008. All other sources are specifically noted.

The Cable Industry: Hardwiring Influence , a “Connect the Dots: Money in Politics” report

• As New York City renegotiates its cable franchise contracts with Time Warner Cable and Cablevision and hundreds of municipalities around the state enter into renewal contracts with incumbent providers, or new franchise agreements with Verizon with the goal of adding competition to the cable marketplace…

New Yorkers would be right to question what effect the millions of dollars spent by the cable industry on campaign donations and hiring an army of lobbyists have on the cable service they receive.

The New York State Cable Market“The Big Three”

Cable Company New Franchises Awarded(Jan 2005 – July 2008)

Franchise Renewals (Jan 2005 – July 2008)

Adams CATV 1

Cablevision 3 50

Empire Video Services Corporation 19

Haefele TV 6

Hilltop Communications (Valstar) 1

Midtel Cable TV 7

Time Warner 1 255

Verizon 122

Grand Total 145 320

Source: NYS Public Service Commission

NYS Counties With Greatest Volume of Cable Franchise Agreements

County Franchise Renewals (Jan 2005 – July 2008)

Nassau 49

Westchester 31

Rockland 18

Suffolk 12

Erie 8

County New Franchises Awarded(Jan 2005 – July 2008)

Schoharie 21

Steuben 18

Chautauqua 15

Ostego 12

Saratoga 12

Source: NYS Public Service Commission

Top NYS Legislative Recipients, OverallASSEMBLY CABLE PAC CABLEVISION TIME WARNER CABLE VERIZON Grand Total

Friends of Richard L. Brodsky (D) $1,750 $7,600 $3,600 $12,950

Friends of Silver (D) $1,500 $1,000 $1,000 $6,500 $10,000

Friends of Tom DiNapoli (D) $300 $6,400 $800 $7,500

GRAND TOTAL $3,550 $15,000 $1,000 $10,900 $30,450

SENATE CABLE PAC CABLEVISION TIME WARNER CABLE VERIZON Grand Total

Friends for the Election of Dean Skelos (R) $5,200 $32,750 $7,100 $20,800 $65,850

Friends of Nick Spano Committee (R) $8,100 $18,110 $4,500 $4,500 $35,210

Friends of Jim Wright (R) $2,500 $6,430 $13,350 $22,280

GRAND TOTAL $15,800 $57,290 $11,600 $38,650 $123,340

NYS Senate Corporations, Authorities and Commissions

CABLE PAC CABLEVISION TIME WARNER CABLE VERIZON Grand Total

Citizens for Hannon (R)

$500 $8,333 $4,500 $500 $13,833

Friends of John Flanagan (Chair, R)

$650 $5,650 $4,500 $1,750 $12,550

Caesar Trunzo (R) $1,550 $2,800 $4,500 $8,850

Committee to Elect Maziarz

State Senate (R)$1,300 $500 $1,000 $4,500 $7,300

Friends of Senator Gonzalez (D)

$300 $132 $656 $1,087

Grand Total $4,000 $17,583 $14,632 $7,406 $43,620

NYS Assembly Corporations, Authorities and Commissions CABLE PAC CABLEVISION TIME WARNER

CABLE VERIZON Grand Total

Friends of Richard L. Brodsky (Chair, D) $1,750 $7,600 $3,600 $12,950

Friends of Carl E Heastie(D) $2,325 $1,400 $3,725People for Brodsky (D) $1,250 $600 $1,850

Friends of Vivian E. Cook (D) $1,400 $1,400Friends of Andrew Raia (R) $1,250 $1,250Friends of Jim Brennan (D) $1,150 $1,150

Committee to Elect Bacalles to NYS Assembly (R)

$1,050 $1,050

Hevesi for Assembly (D) $1,000 $1,000People for Jeffries (D) $250 $500 $750

Linda Rosenthal for Assembly (D) $500 $500

Friends of Will Barclay (R) $250 $250 $500Friends of Joan Millman (D) $500 $500Citizens for Ginny Fields (D) $450 $450

Friends of Catherine Nolan (D) $200 $200Friends of Steve Hawley (R) $16 $16

Grand Total $3,600 $14,525 $500 $9,016 $27,291

Candidates for Governor

Recipient CABLE PAC CABLEVISION TIME WARNER CABLE VERIZON Grand Total

Spitzer Paterson 2006 (D) $33,906 $64,500 $98,406

Friends of Pataki (R) $36,250 $19,500 $5,000 $10,000 $70,750

Paterson for Governor, Inc. (D) $40,300 $40,300

Friends of John Faso (R) $2,000 $9,300 $10,000 $21,300

Friends of McCall/Mehiel (D) $2,500 $5,000 $10,000 $17,500

GRAND TOTAL $74,656 $138,600 $5,000 $30,000 $248,256

Local CandidatesOffice Recipient CABLEVISION TIME WARNER

CABLE VERIZON Grand Total

County Executive Friends of Steve Levy (D-Suffolk) $24,600 $24,600

County Executive Friends of Andy Spano (D-Westchester) $22,000 $22,000

County Executive Friends of Tom Souzzi(Nassau-D) $17,500 $17,500

Supervisor Citizens for Brian Foley (D-Brookhaven)* $3,700 $3,700

Mayor Friends of Bob Duffy (D-Rochester) $2,500 $2,500

Supervisor Kate Murray for Supervisor (R-Hempstead) $1,125 $1,125

Supervisor Friends of Joan Pagones (R-Fishkill) $999 $999

Supervisor Friends of Frank Petrone (D-Huntington) $900 $900

Supervisor Friends of Pat Vecchio (R-Smithtown) $875 $875

County Legislator Friends of Jon Cooper (D-Suffolk) $625 $625

County Legislator Lindsay for Legislature (D-Suffolk) $575 $575

County Legislator Friends of Wayne R. Horsley (D-Suffolk) $350 $350

County Legislator Friends of Rick Montano (D-Suffolk) $300 $300

County Legislator Friends of Steve Stern (D-Suffolk) $250 $250

Mayor Mayor Brown’s Leadership Council (D-Buffalo) $100 $100

* Senator-elect in Long Island 3rd district.

Cablevision’s Concentrated FocusCounty New Franchises Awarded

(Jan 2005 – July 2008)Franchise Renewals

(Jan 2005 – July 2008)Westchester 10

Dutchess 7Nassau 6

Rockland 4Montgomery 4

Columbia 1 3Suffolk 3Orange 3Essex 2

Putnam 2Ulster 1 1Albany 1Greene 1Steuben 1Fulton 1

Sullivan 1Grand Total 3 49

NYS Political Party AccountsCABLE PAC CABLEVISION TIME WARNER

CABLE VERIZON Grand Total

NYS Senate Republican Campaign Committee - Housekeeping

$220,770 $550,000 $273,100 $1,043,870

NYS Democratic Committee (Housekeeping) $50,000 $335,000 $78,000 $463,000

NY Republican State Committee - Housekeeping $33,863 $35,000 $345,500 $414,363

Democratic Assembly Campaign Committee - Housekeeping

$7,383 $75,000 $182,000 $264,383

NYS Senate Republican Campaign Committee $7,200 $134,150 $15,350 $156,700

Democratic Senate Campaign Committee - Housekeeping

$10,500 $50,000 $46,324 $106,824

NYS Democratic Senate Campaign Committee $736 $57,000 $250 $1,000 $58,986

Democratic Assembly Campaign Committee $11,895 $34,300 $500 $5,000 $51,695

Working families Party $45,000 $237 $45,237

NYS Republican Committee – Reporting $1,000 $25,000 $26,000

Republican Assembly Campaign Committee Housekeeping Account

$1,000 $21,300 $22,300

NYS Democratic Committee $1,000 $16,500 $17,500

Republican Assembly campaign Committee $6,975 $10,500 $17,475

GRAND TOTAL $388,347 $1,295,925 $25,750 $978,311 $2,688,333

Cable Industry Lobbying Expenditures

Cable Industry Lobbying Expenditures January 2005 – July 2008

Cable Telecommunications Assoc of NY $2,096,004

Cablevision* $14,408,527

Time Warner Cable $429,984

Verizon $7,406,748

GRAND TOTAL $24,341,263

* Over 85% of Cablevision’s lobbying expenditures were recorded between January and July of 2005. Even after removing this outlier, the cable industry still racked up $11.7 million in lobbying expenses since January 2005.

$$ THE PAYOFF $$Defeated

The ‘Brodsky bill,’ which would have permitted statewide cable franchises and required strong consumer protections. The bill (A3980, The Telecommunications Reform Act of 2008) was the object of intense industry lobbying.

AwardedThe largest cable franchise contract in the country was awarded by New York City

to Verizon in May 2008 and approved by the NYS PSC two months later. It is estimated to be worth $70 billion over 12 years.

DefeatedA proposed enforcement action that would have required Verizon to check all of its

FiOS cable installations in NYS to ensure no electrical hazards existed. Despite calls from labor and consumer groups, the PSC Commissioners found such a move unnecessary and went so far as to water down Verizon’s own proposal.

$$ THE PAYOFF $$

Industry Insiders or Representatives of the Rest of New York?

The Public Service Commission has oversight over all cable franchise agreements in the state. Currently there is one vacancy on the PSC and the terms of 2 other commissioners are up in early 2009.

Who will Gov. Patterson appoint to the PSC? Will industry money influence his appointments?

$$ THE PAYOFF $$

The Ultimate Losers

New Yorkers who are paying as much as $130 or more each month for their cable service with little meaningful protection or recourse.

QUESTIONS?

Contact: Susan Lernero: (212) 691-6421c: (917) 670-5670

www.CommonCause.org/NY

Thank you!