Bush Veto Fails for 1st Time; Cable Rates Bill Passed : Legislation: Margin for override is 74-25 in Senate, 308-114 in House. Bill requires government to set maximum rates for basic television subscriber service.

President Bush suffered a stinging election-year defeat Monday when Congress passed a bill to regulate cable television rates over his veto--the first congressional override during his Administration.

The dramatic showdown ended in a 74-25 vote in the Senate and a 308-114 vote a few hours later in the House. Republican defectors, including House Minority Leader Robert H. Michel of Illinois and Senate Whip Alan K. Simpson of Wyoming, joined with Democrats to produce the two-thirds majorities needed for an override, despite an intensive White House lobbying campaign.

Supporters of the President said that the substance of the bill had been overwhelmed in recent days by the Democrats’ desire to embarrass Bush by beating him in a veto fight.

“The merits of this legislation went out the window two weeks ago,” said Senate Minority Leader Bob Dole (R-Kan.) as he pleaded in vain with his GOP colleagues to support the President. “Sustain the President’s veto--he hasn’t asked for much,” Dole said plaintively.

Bush had successfully vetoed 35 bills since taking office in 1989 and his first defeat on Monday almost certainly will be interpreted as a sign of political weakness with his reelection campaign trailing in the polls.

Democratic nominee Bill Clinton responded to the override immediately. “Good for the House! Good for the Senate!” the Arkansas governor said at a campaign stop in Ocala, Fla., where he was appearing on the “Larry King Live” television show. “This was a bill that was in the interest of the ordinary, average American.”

The Democrats’ vice presidential candidate, Sen. Al Gore (D-Tenn.), was one of the prime sponsors of the bill, which would require the federal government to set maximum “reasonable” charges for basic cable service. He left the campaign trail briefly Monday to vote for the override.

Gore, appearing on the King show with Clinton, said: “I’m really happy about (the override). It’s an indication of the winds of change that are blowing across the country.”

For the 55 million households with cable, the basic service includes the networks--ABC, CBS, NBC and Fox--the local independent television stations, the educational outlets and the stations operated by local governments.

Using a federal formula established by the bill, local governments could decide whether to roll back cable charges in their areas. If consumers complain, rates also will be controlled for the second “tier” of cable service, the numerous channels offering news, music videos, religious programs, sports and home shopping.

However, the premium channels, such as Showtime, HBO and Disney and the special events on pay-per-view, including boxing matches and rock concerts, are not covered by the legislation.

The bill also requires the government to set minimum standards for cable service, including speedy response to consumer complaints and service breakdowns. It permits cities and towns to own and operate cable systems.

After the Senate vote, White House Press Secretary Marlin Fitzwater said: “We stood for lower cable bills for the consumer through increased competition. This is an important principle. We genuinely believe that our approach would be a better way to increase the variety of services available to the consumer at lower prices.”

The President had argued that the bill contained excessive regulation that ultimately would drive up the price of cable service. The Administration had hoped to win approval of a different formula without federal re-regulation of the industry that was freed from controls in 1984.

Large majorities of both Republicans and Democrats supported the bill during its original passage because of rising consumer complaints about the cost of cable service. The price has risen at more than twice the rate of inflation since cable was deregulated eight years ago. The national average price for basic service is now about $20 per month.

The key battleground on Monday was in the Senate. The President needed to win in just one chamber of Congress, while his opponents had to get two-thirds majorities in both houses.

The President needed 34 Senate votes to sustain his veto, and came close to persuading enough Republicans to switch their votes and support him.

“We were between 32 and 34 votes, but we couldn’t get the 33rd vote so we could nail down the 34th,” Dole said after the Senate had voted.

During the voting, as senators milled around the floor and it was evident that the White House was shy of the margin it needed, Dole released Orrin G. Hatch (R-Utah), normally a staunch supporter of Bush, from his commitment to back the President. After huddling in an animated conversation with Dole, Hatch announced his vote to override the veto, drawing audible gasps from the spectators’ galleries.

Then, in rapid succession, several other Republicans who had promised to support the President after personal appeals at a White House breakfast, voted against him, rather than cast their ballots for a lost cause.

Even Simpson, who said during the weekend that loyal Republican senators would throw themselves on partisan political “bombs” to prevent damage to the President, voted to override the veto.

The override effort was backed by 50 Democrats and 24 Republicans, the same group of supporters who voted for the bill on final passage last month. It was opposed by seven Democrats and 18 Republicans. Sen. Connie Mack (R-Fla.) voted “present,” neither opposing nor supporting the veto.

Both California senators, Democrat Alan Cranston and Republican John Seymour, supported the President. They had opposed the bill in large part because of objections by Hollywood studios. The movie and television production industry strongly opposed the bill because it permits broadcast stations to negotiate for payment from cable systems that carry their programs. This would be a major new source of revenues for television broadcasters, estimated at $1 billion a year or more.

However, the makers of movies and television shows would not share in the new revenues.

Because the Administration made its maximum effort in the Senate, there was less suspense when the House voted late Monday night. As the Democrats neared the override goal of 290, chants of “go! go! go!” erupted on the Democratic side of the House chamber.

When the count passed 290, Democrats began cheering. Some chanted “four more months,” and an ebullient Rep. Ronald V. Dellums (D-Berkeley) broke into an impromptu dance.

A coalition of 230 Democrats, 77 Republicans and one independent voted to override the veto. The President was supported by 85 Republicans and 29 Democrats.

Consumer groups backing the bill claimed that it would save cable customers as much as $6 billion a year by curbing increases in charges for basic service.

Disappointed cable operators said that the costs will rise as the industry struggles with its new state of regulation. “This type of micro-management will make a real burden for us,” said Marc Nathanson, chief executive officer of Los Angeles-based Falcon Cable, which has 1.1 million subscribers in 26 states.

With operations in 747 different cities, towns and communities, the company could face a huge number of rate cases, arguments and lawsuits under the new law, Nathanson said.

At the National Cable Television Assn., president James P. Mooney said: “We continue to believe that this bill is a Trojan horse; it’s so loaded with expensive goodies for our commercial rivals that it will cause cable rates to go up, not down.”

Times staff writer William J. Eaton contributed to this story.