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Fax to Joan Logue Kinder-National Association of Black Owned Broadcasters
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FOIA Number: 2012-0741-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. Collection/Record Group: Clinton Presidential Records Subgroup/Office of Origin: Public Liaison Series/Staff Member: Alexis Herman/Ruby Moy Subseries: OA/ID Number: 5263 FolderID: Folder Title: Fax to Joan Logue Kinder-National Association of Black Owned Broadcasters Stack: Row: Section: Shelf: Position: S 29 7 2 3 PHOTOCOPY PRESERVATION 1071 8082 229/# 0262229 10 Joan Loque-Kinder FAXED TO faxed 3/10 NATIONAL ASSOCIATION OF BLACK OWNED BROADCASTERS 1333 New Hampshire Avenue, N.W., Suite 1000, Washington, D.C. 20036 (202) 463-8970 Fax (202) 429-0657 March 9, 1995 MAR BOARD OF DIRECTORS VIA HAND DELIVERY PIERRE M SUTTON Chairman of the Board BENNIE L TURNER Ms. Alexis Herman President MUTTER EVANS Office of Public Liaison 1st Vice President The White House ANDREW A. LANGSTON 2nd Vice President 1600 Pennsylvania Avenue, N.W. SIDNEY SMALL Treasurer Washington, D.C. 20500 LOIS E WRIGHT Counsel to the Board SKIP FINLEY. Northeastern Dear Alexis: Regional Representative GREGORY A DAVIS. Southeastern Regional Representative We understand that the Senate Finance Committee is planning to mark up JAMES E. WOLFE. Midwestern Regional Representative legislation concerning Section 1071 of the Internal Revenue Code during the week of MICHAEL L CARTER. March 13, 1995. Southwesteern Regional Representative JOSEPH A. STROUD. Television Representative We are enclosing some proposed revisions to the Federal Communications Commission's Minority Tax Certificate Policy which we believe will help improve the WASHINGTON OFFICE policy. We would welcome an opportunity to meet with you before the Senate mark- JAMES L. WINSTON Executive Director up to discuss these proposals. and General Counsel It is vitally important to the future of minority ownership in the telecommunications industry that the Administration take an active role in the development of this legislation. We will call your office to arrange a meeting time which is convenient for you. Sincerely, Jan James L. Winston Nist JLW/kn cc: Percy E. Sutton Sydney Small Pierre M. Sutton Lois E. Wright Ernie Green National Association of Black Owned Broadcasters Proposed Revisions to FCC Minority Tax Certificate Policy Cap on Value of Tax Certificate 1. The tax deferral on a sale should be subject to: (1) 100% deferral up to an amount of $50 million in tax; (2) 75% deferral for an amount between $50 million and $75 million in tax, and (3) 50% deferral for an amount between $75 million in tax and $100 million in tax, provided that, by a vote of the FCC Commissioners, the $100 million cap could be exceeded upon a showing of specific public interest benefits. Minimum Holding Period 2. Any telecommunications facility acquired through the tax certificate program cannot be sold for a period of three to five years after the closing, unless sold to another minority owned company. Demonstration of Ownership and Control 3. Maintain the FCC's: (1) 50.1% voting control requirement for minority owned corporations; and (2) general partner control and 20% equity ownership requirement for limited partnerships, provided that agreements which have the effect of precluding the exercise of control should result in the denial of a tax certificate. Retain Tax Certificate Program at FCC 4. Allow the FCC to continue the issuance of tax certificates, with reporting requirements to the IRS and Congress. No retroactivity 5. Do not apply any statutory change to any transaction which was on file with the FCC before the enactment date of any statutory change. Graduation from Program 6. No tax certificate will be issued to the seller of a telecommunications facility, if the purchaser is an entity which has previously purchased facilities which, in the aggregate, have resulted in tax deferrals in excess of $100 million to prior sellers. THE WHITE HOUSE WASHINGTON OFFICE OF PUBLIC LIAISON Alexis M. Herman, Director PHONE:(202) 456-2930 6455 FAX:(202) 456-6218 2983 FACSIMILE TRANSMITTAL COVER SHEET Number of Pages (Including Cover) 3 To: Joan Logue- Kinder Fax: 622-2808 Phone: 622-2920 Date: 3/10 From: Mac Webster Message: THE WHITE HOUSE WASHINGTON OFFICE OF PUBLIC LIAISON Alexis M. Herman, Director PHONE: (202) 456-2930-6455 (202) FAX: (202) 456-6218 2983 FACSIMILE TRANSMITTAL COVER SHEET Number of Pages (Including Cover) 4 To: Joan Logue- kinder Fax: 622-2808 Phone: 622-2920 Date: 3-13-95 From: Ruby Message: MAR 10 '95 02: 25PM RUBIN, WINSTON, DIERCK, HARRIS, ETAL P.1/3 FAX * FAX * FAX THE NATIONAL ASSOCIATION OF BLACK OWNED SVW BROADCASTERS 1333 NEW HAMPSHIRE AVENUE, N.W., SUITE 1000 WASHINGTON, D.C. 20036 (202) 463-8970/ FAX: (202) 429-0657 Confidentiality Notice The information contained in this facsimile message is intended only for the use of the individual or entity named below. If the reader of this message is not the intended recipient or the employee or agent responsible to deliver it to the intended recipient. you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please immodiately notify us by telephone and return the original message to us at the above address via the U.S. Postal Service. Receipt by anyone other than the intended recipient is not a waiver of any attorney-cilent privilege. TO: Ms. Alexis Herman The White House FAX #: 456-6218 CONF. #: FROM: James L. Winston DATE: March 10, 1995 This telecopy transmission consists of 3 pages, including this page. COMMENTS: If a problem of clarity of transmission arises, please call Kathy Nickens at (202) 463-8970. MAR 10 '95 02 26PM RUBIN, WINSTON, DIERCK, HARRIS, ETAL P.2/3 NATIONAL ASSOCIATION OF BLACK OWNED BROADCASTERS 1333 New Hampshire Avenue, N.W., Suite 1000, Washington, D.C. 20036 (202) 463-8970 Fax (202) 429-0657 March 9, 1995 BOARD OF DIRECTORS VIA HAND DELIVERY PIERRE M. SUTTON Chairmen of the Board BENNIE L. TURNER Ms. Alexis Herman President MÜTTER EVANS Office of Public Liaison Tax Vice President The White House ANDREW A. LANGSTON 2nd Vice President 1600 Pennsylvania Avenue, N.W. SIDNEY SMALL Treesurer Washington, D.C. 20500 LOIS E. WRIGHT Counsel to the Board SKIP FINLEY. Northeastern Dear Alexis: Regional Representative GREGORY A. DAVIS. Southeestem Regional Representative We understand that the Senate Finance Committee is planning to mark up JAMES E. WOLFE. Midwestern Regional Representative legislation concerning Section 1071 of the Internal Revenue Code during the week of MICHAEL L. CARTER, March 13, 1995. Southwesteem Regional Representative JOSEPH A. STROUD. Television Representative We are enclosing some proposed revisions to the Federal Communications Commission's Minority Tax Certificate Policy which we believe will help improve the WASHINGTON OFFICE policy. We would welcome an opportunity to meet with you before the Senate mark- JAMES L. WINSTON Executive Director up to discuss these proposals. and General Counsel It is vitally important to the future of minority ownership in the telecommunications industry that the Administration take an active role in the development of this legislation. We will call your office to arrange a meeting time which is convenient for you. Sincerely, Jan Winston Winst JLW/kn cc: Percy E. Sutton Sydney Small Pierre M. Sutton Lois E. Wright Ernie Green MAR 10 '95 02 26PM RUBIN, WINSTON. DIFRCK HARRIS, P.3/3 National Association of Black Owned Broadcasters Proposed Revisions to FCC Minority Tax Certificate Policy Cap on Value of Tax Certificate 1. The tax deferral on a sale should be subject to: (1) 100% deferral up to an amount of $50 million in tax; (2) 75% deferral for an amount between $50 million and $75 million in tax, and (3) 50% deferral for an amount between $75 million in tax and $100 million in tax, provided that, by a vote of the FCC Commissioners, the $100 million cap could be exceeded upon a showing of specific public interest benefits. Minimum Holding Period 2. Any telecommunications facility acquired through the tax certificate program cannot be sold for a. period of three to five years after the closing, unless sold to another minority owned company. Demonstration of Ownership and Control 3. Maintain the FCC's: (1) 50.1% voting control requirement for minority owned corporations; and (2) general partner control and 20% equity ownership requirement for limited partnerships, provided that agreements which have the effect of precluding the exercise of control should result in the denial of a tax certificate. Retain Tax Certificate Program at FCC 4. Allow the FCC to continue the issuance of tax certificates, with reporting requirements to the IRS and Congress. No retroactivity 5. Do not apply any statutory change to any transaction which was on file with the FCC before the enactment date of any statutory change. Graduation from Program 6. No tax certificate will be issued to the seller of a telecommunications facility, if the purchaser is an entity which has previously purchased facilities which, in the aggregate, have resulted in tax deferrals in excess of $100 million to prior sellers.