FOR IMMEDIATE RELEASE News Media Contact: APRIL 15, 1999 David Fiske at (202) 418-0500 Report No. MM 99-5 MASS MEDIA ACTION FCC AFFIRMS DENIAL OF TRINITY BROADCASTING MIAMI TV LICENSE ( MM DOCKET 93-75) The FCC has ruled that Trinity Broadcasting of Florida (TBF) is unqualified for renewal of its license to operate station WHFT(TV), Channel 45, Miami, Florida. The ruling affirmed Administrative Law Judge Joseph Chachkin's conclusion that Trinity's parent company, Trinity Broadcasting Network (TBN), exercised de facto control over an entity called National Minority TV, Inc. (NMTV) and that the principals of TBN and NMTV deliberately abused the Commission's processes by using NMTV to evade the Commission's limitations on multiple ownership. The multiple ownership rules in effect at the time generally limited the number of stations in which TBN's President, Paul Crouch, could have an attributable interest to 12. An exception, however, permitted Crouch to have interests in additional stations, if these were "minority- controlled." With Crouch as an officer and director, NMTV acquired stations under this exception, claiming to be minority-controlled within the meaning of the rule. The FCC concluded that NMTV was not in fact controlled by minorities, but by TBN and Crouch. The FCC also ruled today that a competing applicant for the Miami television license, Glendale Broadcasting Company, should also be disqualified from obtaining the license because of a lack of candor on the part of Raystay Company in seeking the extension of several LPTV construction permits. Raystay is wholly owned by Glendale's majority stockholder. In this matter, the FCC reversed a decision of ALJ Chachkin who had granted Glendale a construction permit for WHFT(TV). The FCC disagreed with the ALJ's conclusion that the reasons Raystay gave for its failure to construct the stations were substantially accurate. The FCC found that Raystay's explanations gave the false impression that Raystay intended to proceed diligently with the construction of the stations when its owner had no such intention. The FCC also dismissed a proposed settlement agreement that contemplated resolution of 5 challenges to TBN stations: Glendale's challenges to the Trinity license for the Miami station, and WHSG(TV), Monroe, Ga., and challenges by Maravillis Broadcasting to three other stations owned by TBN and NMTV: WTBY(TV) Poughkeepsie, NY; KTBN-TV, Santa Ana, CA; and KNMT(TV) Portland, OR. The FCC said it had found TBF to be unqualified, and that its policy of encouraging settlements in competing applications does not extend so far as to justify the approval of a settlement agreement if that would result in the grant of a license to an unqualified applicant. However, the Commission indicated that because the loss of WHFT(TV) would be a sufficient deterrent to future misconduct, the parties could submit an amended settlement covering the stations other than WHFT(TV). Action by the Commission November 24, 1998, by Decision (FCC 98-313), Chairman Kennard, Commissioners Ness, and Tristani; Commissioners Furchtgott-Roth and Powell dissenting in part; with Chairman Kennard and Commissioner Tristani issuing a joint statement, and Commissioners Furchtgott-Roth and Powell issuing a joint statement dissenting in part. - FCC -