Federal Circuits, D.C. Cir. (January 22, 1976)
Docket number: 73-2068
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US Code - Title 47: Telegraphs, Telephones, and Radiotelegraphs - 47 USC 155 - Sec. 155. Commission
US Code - Title 47: Telegraphs, Telephones, and Radiotelegraphs - 47 USC 153 - Sec. 153. Definitions
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Charles M. Firestone, Washington, D. C., with whom Ellen S. Agress, New York City, was on the brief, for appellant.
Joseph A. Marino, Associate Gen. Counsel, F. C. C., Washington, D. C., with whom Daniel R. Ohlbaum, Acting Gen. Counsel, and Louise A. Sunderland, Counsel, F. C. C., Washington, D. C., were on the brief, for appellee. John W. Pettit, Gen. Counsel, F. C. C., Washington, D. C., at the time the record was filed, Ashton R. Hardy, Gen. Counsel, F. C. C., and R. Michael Senkowski, Counsel, F. C. C., Washington, D. C., also entered appearances for appellee.Robert L. Heald, Edward F. Kenehan and Marjorie S. Reed, Washington, D. C., were on the brief for intervenor.John B. Summers, Washington, D. C., lodged a brief on behalf of National Association of Broadcasters as amicus curiae.Before LUMBARD,* Senior Circuit Judge for the Second Circuit, and McGOWAN and ROBINSON, Circuit Judges.ROBINSON, Circuit Judge:The Communications Act of 19341 empowers the Federal Communications Commission to grant licenses for operation of broadcasting stations2 for maximum terms of three years only.3 Ordinarily, then, licensees must apply for renewal not less frequently than every third year as existing licenses are about to expire. When a substantial question about renewal arises, however, the Commission designates the application for an evidentiary hearing4 and, as a result, the matter may not be resolved within the three-year period following the terminal date of the license. In the latter event, the Commission does not require the licensee to submit another application on or before expiration of that period. Rather, the Commission continues the license in effect until the renewal proceeding has run its course,5 and renews the license, if at all, for some ensuing period not exceeding three years.On this appeal, the Committee for Open Media (COM) challenges the legality of the Commission's dispensation of a second renewal application in those circumstances. Finding no error in adherence to the practice in the proceeding under review, we affirm the orders from which the appeal emanates.I. THE ADMINISTRATIVE PROCEEDINGOn September 1, 1968, Chronicle Broadcasting Company filed an application with the Commission for renewal of its license, expiring December 1, 1968, for operation of Station KRON-TV in San Francisco, California.6 On March 20, 1969, the Commission designated the application for an evidentiary hearing;7 on March 1, 1971, the hearing examiner8 issued an initial decision in favor of the application;9 and on May 9, 1973, the Commission rendered its decision renewing Chronicle's license through December 1, 1974.10That the renewal was not granted for a full three-year term through May, 1976 is the consequence of Commission policy by which all licenses in a particular geographical area are made to expire at the same time.11 To preserve this uniformity when the Commission gives the application more than summary consideration, renewal typically is for a period of less than three years; it extends just to the point at which licenses in the applicant's geographical area will next terminate. Accordingly, Chronicle's application was approved only through December 1, 1974, the date on which all California licenses were to come to an end.12Earlier during the proceeding, on November 1, 1971 more than three years after Chronicle's renewal application was filed, and while it was pending in hearing status COM had filed a petition to deny the application.13 On May 23, 1973, two weeks after Chronicle won renewal, the Commission dismissed COM's petition "because of its lack of specificity and the absence of supporting affidavits."14COM petitioned for reconsideration, reminding the Commission that Chronicle did not file a fresh renewal application at the end of the three-year period following expiration of its license in 1968,15 and arguing that the Commission had violated Section 307(d) of the Act16 because it had granted a license for more than three years,17 and for the period subsequent to 1971 without a written application therefor.18 COM also argued that the absence of a second application had prevented particularized objections to renewal, and had effectively immunized Chronicle from scrutiny and competition. These contentions were rejected by the Commission.19COM now appeals.20 Its major claims here are those urged upon the Commission on rehearing. Chronicle has intervened to join the Commission in defense of its orders.21 We affirm.II. THE RENEWAL APPLICATION REQUIREMENTCOM seeks support for its principal position in Section 307(d) of the Act, providing in relevant part that (n)o license granted for the operation of a broadcasting station shall be for a longer term than three years . . . . Upon the expiration of any license, upon application therefor, a renewal of such license may be granted from time to time for a term of not to exceed three years . . . . Pending any hearing and final decision on such an application and the disposition of any petition for rehearing pursuant to (42 U.S.C. § 405 (1970)), the Commission shall continue such license in effect. . . .22COM correctly observes that this provision limits the Commission's license grants to terms of three years. From this, COM asserts that the 1968 application was alive only from 1968 until 1971, and that Chronicle's license could not be extended beyond 1971 without another application. We think this argument distorts the plain language of the section.The only time restriction which Section 307(d) imposes is upon the period for which the Commission itself may confer a license. The Commission may not grant an original license "for a longer term than three years,"23 and it must confine any renewal to "a term of not to exceed three years."24 It is evident, however, that these are proscriptions on Commission awards of licenses, and not inexorable limitations on the duration of the licenses themselves, for "(p)ending any hearing and final decision on" a renewal application "and the disposition of any petition for rehearing . . . the Commission shall continue such license in effect"25 obviously, beyond the maximum three-year term for which the Commission could award it, if necessary. Thus Congress made specific provision for licenses involved in the renewal process, and unambiguously decreed that they be maintained in operation until "final decision"26 on the question of renewal. Translating these mandates to the situation at bar, it is seen that, far from the consequences asserted by COM, an extension of Chronicle's license to the point of Commission renewal in 1973 was literally compelled by the language of Section 307(d).Moreover, that section requires licensees to file renewal applications only "(u)pon the expiration of (a) license."27 Chronicle filed, in 1968, a timely application for a renewal of its expiring license. Chronicle did not file another application in 1971, but none was required. Chronicle's license did not run out in 1971; Chronicle was still operating the station by virtue of the extension consequent upon the pendency of its renewal application.28 That extension was conferred by the statute, not by choice of the Commission; the statute is unyielding in its specification that the Commission "shall continue (the) license in effect."29 Accordingly, we cannot read Section 307(d) as a call for a renewal application by Chronicle in 1971.In view of the unmistakable import of Section 307(d), resort to its legislative history is hardly necessary. But lest there be some lingering doubt on this score, we summarize the history to show that it comports with our conclusion. Prior to 1946, there was no statutory extension of licenses pending resolution of renewal applications, but the Commission supplied such an extension by regulation.30 Section 9(b) of the Administrative Procedure Act, enacted in 1946, provided the same kind of extension for licenses generally31 in order to protect licensees from harm associated with delays in agency action on requests for license renewals.32The sentence of Section 307(d) by which Chronicle's license was automatically extended first appeared in the 1952 amendments to the Communications Act.33 The committee reports and debates are silent as to this provision, but Commission Chairman Coy made a highly significant comment during the hearings:34(The bill) provides that pending the conclusion of any hearing and a final determination on an application for renewal . . . and pending the disposition of any petition for rehearing thereon, the Commission shall continue such license in effect. There is no necessity for the addition of this language to the present provisions of section 307(d) since Section 9(d) (sic) of the Administrative Procedure Act already requires just such a continuation of the license pending completion of the renewal proceedings.35The ineluctable conclusion from this observation is that Sections 9(b) and 307(d) share an identical purpose protection of licensees from the uncertainties stemming from protracted administrative consideration of applications for license renewals. Indeed, even without Chairman Coy's remark one is led to that conclusion when the texts of the two provisions are compared. And there is no indication in the language or history of either provision that this safeguard is to subsist only for a limited interval.36In addition to the unambiguous statutory language and its enlightening legislative history. we are mindful that "(t)he interpretation expressly placed on a statute by those charged with its administration must be given weight by courts faced with the task of construing the statute."37 To accord the agency's interpretation that degree of deference, "we need not find that its construction is the only reasonable one or even that it is the result we would have reached had the question arisen in the first instance in judicial proceedings."38 On the contrary, "the construction of a statute by those charged with its execution should be followed unless there are compelling indications that it is wrong."39 We have not been referred to any demonstrable inconsistency in the Commission's interpretation of Section 307(d) in the aspect discussed, nor to any consideration arguing persuasively that it is in error.40 We hold that Chronicle's license retained its vitality while its application for renewal remained undecided by the Commission, notwithstanding that at no time during that period was it resubmitted.III. CITIZEN PARTICIPATIONCOM's attack on the Commission's dispensation of a second renewal application by Chronicle rests not only upon an alleged violation of the Communications Act, but also on the premise that the Commission's practice in that regard denies interested citizens and competing applicants effective participation in the renewal process. This challenge brings to the fore troubling aspects of Commission policy identified and sharply criticized in Commissioner Hooks' separate opinion.41 We first consider COM's contention that, without a fresh application after a renewal hearing endures more than three years, members of the public are embarrassed in efforts to resist approval of the application.42 We then examine COM's complaint that in that situation the application is insulated from the scrutiny afforded by a competing application for the station license.43Chronicle's application, in 1968, asked the Commission to renew the license for Station KRON-TV, a renewal which normally would have been for the 1968-71 period. COM states that when, in 1971, it petitioned the Commission to deny that request, it was unable to make informed objections to Chronicle's operations subsequent to 1968. COM contends that if, in 1971, when the original application remained in hearing status, Chronicle had filed a renewal application for 1971-74, the data contained therein would have permitted COM to remedy the deficiency.44The Commission found, however, that lack of a 1971 renewal application by Chronicle did not unduly affect COM's ability to frame specific objections to renewal.45 COM's petition, the Commission declared, "was primarily concerned with the public's right of access to the media,"46 a position which in the Commission's view had been undermined if not rendered untenable by the Supreme Court.47 Beyond that, the Commission said, "a renewal application would not show whether a licensee has attempted to present contrasting views on a controversial issue of public importance".48 Moreover, as the Commission stated elsewhere in its opinion, considerable information was available to COM apart from a renewal application.49 And, the Commission also observed, COM had "waited until November, 1971, even to raise its general allegation of unfairness."50We note initially that the door is always open to public participation in the Commission's renewal proceedings, however protracted the particular proceeding may become. Complaints may be filed with the Commission at any time.51 Informal objections to renewal applications may be urged at any time prior to Commission action.52 Interested members of the public may seek intervention at any time, even after the hearing stage is reached.53 Additionally, parties may move to enlarge or change the issues to be heard,54 and after the hearing ends the Commission will entertain motions to reopen the record.55 Nonparties to the proceeding may appear at the hearing for the purpose of offering relevant evidence;56 even after the Commission has passed on the renewal application, any aggrieved or adversely affected person may petition for reconsideration.57 And the Commission will consider issues based on events occurring subsequent to the filing of the application as well as those transpiring before.58In addition to the possibility that a renewal application might not have assisted COM in its endeavor,59 the Commission's regulations and practices fully support its statement that abundant information to undergird specific renewal objections is obtainable.60 Regulations make available in a local public inspection file a good deal of the information which a current renewal application ordinarily might impart.61 The file incorporates the renewal application, and the regulations provide the means for keeping data it contains up to date.62 Beyond that, television broadcasters must ascertain annually the needs of their communities, and must list programs designed to meet them.63 They must also file annual program reports and program logs for the composite week,64 and make their station program logs available for public inspection and reproduction.65 The public file also contains a variety of other potentially helpful data66 and, of course, monitoring is always available as a tool for appraising station operation.67In sum, the Commission's rules and practices contemplate continual scrutiny of a renewal applicant's performance, and continual public participation in the process. To be sure, renewal applications may aid the examination at periodic intervals, but current file information may also provide a basis for assessment of current station operation. On the record before us, we cannot say that that was not adequate, or that COM or other members of the public were substantially hampered by the absence of an additional renewal application in 1971.68IV. COMPETING APPLICATIONSCOM's final contention is that the Commission's ruling subverts the statutory scheme of license regulation by immunizing incumbent licensees from competing applications for station licenses. A Commission regulation establishes time periods beyond which applications mutually exclusive with renewal applications will not be accepted,69 and fixes those points with reference to license-term expirations and renewal-application filings.70 If a renewal application were required every three years, a competing applicant could present his challenge every third year; but since the Commission will not entertain competing applications after a license-renewal proceeding has arrived at the hearing stage, the licensee benefits increasingly as the proceeding becomes more and more prolonged.71 Indeed, in the case at bar, the statutory extension of Chronicle's license term72 combined with the cut-off of competing applications to insulate Chronicle from competition for six years.73The Commission did not, however, believe thatpetitioner's hypothetical competing applicant (is) significantly prejudiced by our procedure. In the first instance, we would not accept a competing application against a renewal application in hearing status until we had finally disposed of the renewal application. If we determined that the renewal application should be denied, the frequency would of course be open to all interested applicants at that time. If we determined that the renewal application should be granted, a competing applicant would be entitled to have its application considered at the time of the next regular renewal. We see no reason to give a hypothetical competing applicant protected status by accepting its application before the renewal application proceeding has been decided. Where the renewal application is granted, we believe that the slight inconvenience to such applicant is more than outweighed by the administrative advantages of this more orderly procedure.74As we have noted, Commissioner Hooks dissented vigorously from the Commission's decision to leave the solution at just that.75 As we view the matter, there is much to be said on both sides.COM's complaint does not stem peculiarly from the Commission's construction of Section 307(d) as a dispensation of a second renewal application while a first renewal application remains in hearing status.76 There is no legislative or judicial barrier to allowance of competing applications for station licenses during ongoing hearings;77 the problem arises more directly from the Commission's cutoff regulation,78 which is drawn into this litigation more obliquely. Moreover, the cutoff procedure was suggested by the Supreme Court as an aid to processing of mutually exclusive applications for station facilities,79 and has been commended by this court.80 As we have had occasion to observe, "the device of (a) cutoff (is) a reasonable and necessary limitation in the statutory right to a comparative hearing. There must be some point in time when the Commission can close the door to new parties to a comparative hearing or, at least hypothetically, no licenses could ever be granted."81Similarly, without a moratorium on competing applications while a renewal hearing progresses, a final resolution on renewal might be severely hampered. Intelligent consideration of a late-filed competing application might dictate a reopening of the hearing record for cross-examination of previous witnesses, objection to exhibits already admitted, introduction of new evidence and retrial of issues. Thus final Commission action might unavoidably be postponed into the next three-year renewal period, with the spectre of repetition of the entire process upon entry of yet another competitor. Both the renewal and the competing applications might suffer intolerable delay, if indeed not utter frustration, through the Commission's inability to draw the proceeding to a close.On the other side of the coin, the Commission's ruling indubitably deprives a station's viewing and listening audiences, perhaps for a long time, of potential license competition that normally propels a licensee to better broadcasting. In particular situations it might also deprive the public of use of the broadcast frequency by the best available licensee. In a drawn-out renewal proceeding, as we encounter here, the incumbent licensee has simply to demonstrate that it meets basic public interest qualifications, and it is relieved of the scrutiny inherent in comparison of its past operations and future plans with a competitor's proposals.82 A petition to deny renewal forces a choice merely between the renewal application and nothing; without a comparative proceeding, the Commission may well be swayed by the conviction that "minimal service is to be preferred to no service at all."83 And it is instances where renewal hearings are conducted that the public stands to benefit most from participation by a competing applicant.84We do not, however, debate the issue further, for there is no need to resolve it in the case now before us. COM was not a competing applicant, and no one pressed a competing application while Chronicle's renewal application remained in a hearing posture.85 The Commission was thus summoned to examine Chronicle's qualifications to continue operation of the station simply in light of the statutory public-interest standard, without regard to what another applicant for the station might be inclined to offer. Whatever may be the relative values of administrative and other countervailing considerations in the spectrum of public interest when competition is offered, there is no call to strike the balance here. It will be time enough to undertake that task if and when an appropriate occasion is presented.The orders appealed from are accordinglyAffirmed. * Sitting by designation pursuant to 28 U.S.C. § 294(d) (1970) 1 Act of June 19, 1934, ch. 652, 48 Stat. 1064, as amended, 47 U.S.C. § 151 et seq. (1970) 2 Whether a radio or a television broadcasting station. Communications Act of 1934, tit. I, § 3(b), (k), (o ), as amended, Communications Act Amendments, 1952, Act of July 16, 1952, ch. 879, § 2(bb), (cc), (dd), 66 Stat. 711, 47 U.S.C. § 153(b), (k), (o ), (bb) (cc), (dd) (1970); United States v. Radio Corp. of America, 358 U.S. 334, 348-349, 79 S.Ct. 457, 465-466, 3 L.Ed.2d 354, 364 (1959); Allen B. Dumont Laboratories v. Carroll, 184 F.2d 153, 155 (3d Cir. 1950), cert. denied,Try vLex for FREE for 3 days
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