555 F.2d 1046 | D.C. Cir. | 1977
Opinion for the Court filed by SPOTTSWOOD W. ROBINSON, III, Circuit Judge.
In March, 1962, the Federal Communications Commission disqualified its licensee broadcasting from Pasadena, California, on the 1110 kHz (AM) frequency.
I
Of those responding to the Commission’s call for applications, seven are parties to these appeals. Four of these proposed service from facilities in Pasadena,
No useful purpose would be served by blueprinting every aspect of the Commission’s architectonics. The keystone of the decisional edifice it constructed is the collective view of Section 307(b) of the Communications Act, which provides:
(b) In considering applications for licenses, and modifications and renewals thereof, when and insofar as there is demand for the same, the Commission shall make such distribution of licenses, frequencies, hours of operation, and of power among the several States and communities as to provide a fair, efficient, and equitable distribution of radio service to each of the same.9
The Commission’s Review Board disqualified the Newport applicant because his proposal would have provided daytime service to only about three million people,
Had matters ended there, our task would have differed significantly. As it was, the Commission sustained the Review Board’s denial as to Newport without further ado.
II
In support of this disposition, the Commission considered only the larger population to be served by the “Los Angeles” applications than by that for Newport.
Concentration of radio service in the big city was a problem at the time Section 307(b) was first enacted as part of the Radio Act of 1927,
Unfortunately, the mechanical formula thereby imposed resulted in “the concentration of the use of frequencies in centers of population, and the restriction of facilities in sparsely populated states, even though interference consideration [sic] would permit the operation of one or more additional stations.”
Section 307(b)’s emphasis on wide dispersion of radio transmission service gave rise long ago to the rule that “when mutually exclusive applicants seek authority to serve different communities, the Commission first determines which community has the greater need for additional services and then determine^] which applicant can best serve that community’s need.”
Ill
One other matter deserves mention. The Commission found the engineering and siting specifications of every high-power “Los Angeles area” submission “deficient in some respect,”
The Commission’s response taxes us with an “apparent misunderstanding” that its focus on technical questions is traceable to Section 307(b)’s “efficiency” criterion.
Underlying the agency’s apologia is the premise that Section 307(b), with its requirement of “fair, efficient, and equitable” spectrum allocation,
In the case at bar, of course, there is no surfeit of qualified candidates for the 1110 kHz frequency. Nor do we face a situation like those in which unwaived violations of the Commission’s rules narrow the field to but one qualified contestant.
Reversed and remanded.
. Eleven Ten Broadcasting Co., 32 F.C.C. 706, reconsideration denied, 33 F.C.C. 92, aff’d sub nom. Immaculate Conception Church v. FCC, 116 U.S.App.D.C. 73, 320 F.2d 795, cert. denied, 375 U.S. 904, 84 S.Ct. 196, 11 L.Ed.2d 145 (1963).
. Oak Knoll Broadcasting Corp., 45 F.C.C. 1571 (1964).
. Charles W. Jobbins, 29 F.C.C.2d 609 (examiner’s decision 1969) hereinafter cited “Initial Decision”; Charles W. Jobbins, 29 F.C.C.2d 533 (Rev.Bd.1971) hereinafter cited “Review Board Decision Charles W. Jobbins, 29 F.C.C.2d 849 (Rev.Bd.1971); Charles W. Jobbins, 33 F.C.C.2d 821 (1972); Charles W. Jobbins, 39 F.C. C.2d 595 (1973); Goodson-Todman Broadcasting, Inc., 45 F.C.C.2d 573 (1973) hereinafter cited “Final Decision ”, reconsideration denied, 46 F.C.C.2d 533 and 49 F.C.C.2d 242 (1974).
. Appellants Pasadena Broadcasting Company; Voice in Pasadena, Inc.; Goodson-Todman Broadcasting, Inc.; and intervenor Western Broadcasting Company — the Commission’s choice.
. Appellant Pacific Fine Music, Inc.
. Appellant Orange Radio, Inc.
. Appellant Charles W. Jobbins.
. Review Board Decision, supra note 3, 29 F.C.C.2d at 534.
. 47 U.S.C. § 307(b) (1970).
. Initial Decision, supra note 3, 29 F.C.C.2d at 663.
. Compare id- at 665-675 with Final Decision, supra note 3, 45 F.C.C.2d at 593 n.5.
. The Review Board, which the Commission sustained, noted two other defects in the Newport application but, in view of the treatment accorded to high-power applicants who shared these deficiencies, we cannot presume that the Commission regarded them as dispositive. One indisputably legitimate concern of the Commission was protecting the international allocation of the frequency to the United States by virtue of the penetration of the Mexican border by the prior licensee’s signal. See Review Board Decision, supra note 3, 29 F.C.C.2d at 540-541. The Newport proposal, specifying daytime service only, could only partially conserve this advantage to the United States. Id. at 543. Yet another applicant whose signal penetrated the border neither by night nor by day was assessed only a “slight demerit” therefor. Final Decision, supra note 3, 45 F.C.C.2d at 594.
A second defect in the Newport proposal was uncovered when the Hearing Examiner found that it unacceptably overlapped the contours of a preexisting San Diego station. Initial Decision, supra note 3, 29 F.C.C.2d at 760. The Review Board, taking official notice of an intervening change in the San Diego station’s operations, discounted the importance of the overlap, Review Board Decision, supra note 3, 29 F.C.C.2d at 543 n.16, which led it to assume that the Newport application comported with engineering standards. Id. Though, with respect to other candidates, the Commission’s final decision rejected this apparently unobjectionable reference to matters of public record, Final Decision, supra note 3, 45 F.C.C.2d at 591, it attributed but “minor significance” to the other, albeit less egregious, instances of the now-hypothetical overlap. Id. at 594. We are loathe, therefore, to speculate on what the Commission’s posture would be once its § 307(b) error with respect to Newport was broughbto light. Additionally, since these proceedings must in any event be remanded to the Commission for a fresh look, we find it unnecessary to pass upon its refusal to take official notice of this and other matters. No rationale now appears for deciding these already hoary cases on obviously outmoded factual findings.
. See, e. g., Final Decision, supra note 3, 45 F.C.C.2d at 593 n.36, quoting Grand Haven Broadcasting Co., 14 F.C.C. 1351, 1366 (1950); Review Board Decision, supra note 3, 29 F.C.C.2d at 540 et passim; Initial Decision, supra note 3,.29 F.C.C.2d at 764-766.
. E. g., Final Decision, supra note 3, 45 F.C.C.2d at 593. Cf. Review Board Decision, supra-note 3, 29 F.C.C.2d at 542-543.
. See note 38 infra and accompanying text.
. Review Board Decision, supra note 3, 29 F.C.C.2d at 544. Indeed, in reaching its decision in favor of the Fullerton applicant, the Review Board relied upon that city’s lack of a nighttime aural transmission facility. Id. at 549.
. Charles W. Jobbins, supra note 3, 39 F.C. C.2d at 598.
. Id.
. See Final Decision, supra note 3, 45 F.C.C.2d at 579-580:
[W]e conclude that no Section 307(b) choice may be made under the unique circumstances of this case among the communities of Pasadena, Fullerton, and Whittier. . . .
We agree with the [administrative law judge’s] . . . characterization of the facility under consideration as a “metropolitan area” service rather than one for a specified community. . . . [T]he mere fact that a studio may be located in one community rather than another is not entitled to dispositive consideration.
(footnote omitted).
We are asked to reverse this determination as contrary to the Commission’s Policy Statement on Section 307(b) Considerations for Standard Broadcast Facilities Involving Suburban Communities, 2 F.C.C.2d 190 (1965). In view of our disposition of these appeals, we do not pass on the propriety of treating these communities as a homogeneous part of Los Angeles, nor on the Commission’s curious distinction between that and the situations contemplated by the Policy Statement. Final Decision, supra note 3, 45 F.C.C.2d at 578-580.
. Id., 45 F.C.C.2d at 593 & n.36.
. See Initial Decision, supra note 3, 29 F.C.C.2d at 732-733.
. See text accompanying note 16 supra.
. See, e. g., Review Board Decision, supra note 3, 29 F.C.C.2d at 541-546. But. cf. note 12 supra.
. See text supra at note 9.
. That may in fact be seen as the Commission’s raison d’etre. See 47 U.S.C. § 151 (1970).
. See Television Corp. of Michigan, Inc. v. FCC, 111 U.S.App.D.C. 101, 103, 294 F.2d 730, 732 (1961) (disapproving the Commission’s' “premise that more service to more people— even to a group already well served—is prima facie desirable”); Easton Publishing Co. v. FCC, 85 U.S.App.D.C. 33, 38, 175 F.2d 344, 349 (1949) (“difference in size does not necessarily spell a difference in need”). Cf. Northeast Broadcasting, Inc. v. FCC, 130 U.S.App.D.C. 278, 289, 400 F.2d 749, 760 (1968) (concurring opinion).
. Pub.L. No. 69-632, ch. 169, § 9, 44 Stat. 1166.
. 67 Cong.Rec. 5479 (1926). See 67 Cong.Rec. 5564 (1926) (remarks of Representative Davis).
. 67 Cong.Rec. 12355 (1926) (remarks of Senator Cummins).
. 68 Cong.Rec. 2557 (1927).
. See 68 Cong.Rec. 2568-2575, 3031-3033, 3120, 3123, 3258-3259 (1927).
. Act of Mar. 28, 1928, Pub.L. No. 70-195, 45 Stat. 373. See, e. g., General Elec. Co. v. Federal Radio Comm’n, 58 App.D.C. 386, 387-388, 31 F.2d 630, 632-633 (1929), cert. dismissed, 281 U.S. 464, 470, 50 S.Ct. 389, 391, 74 L.Ed. 969, 972 (1930). Cf. Federal Radio Comm’n v. Nelson Bros. Bond & Mortgage Co., 289 U.S. 266, 278-281, 53 S.Ct. 627, 633-634, 77 L.Ed. 1166, 1174-1176 (1933); WHB Broadcasting Co. v. Federal Radio Comm’n, 61 App.D.C. 14, 15, 56 F.2d 311, 312 (1932). See Note, 21 Va.L.Rev. 318, 322 (1935).
. Letter on S.2243 from Chairman of FCC, 80 Cong.Rec. 6032 (1936); H.R.Rep. No. 2589, 74th Cong., 2d Sess. 3 (1936); S.Rep. No. 1588, 74th Cong., 2d Sess. 3 (1936).
. Act of June 5, 1936, ch. 511, Pub.L. No. 74-652, 49 Stat. 1475, codified as 47 U.S.C. § 307(b) (1970).
. 80 Cong.Rec. 6032 (1936). See H.R.Rep. No. 2589, supra note 33, at 3; S.Rep. No. 1588, supra note 33, at 3.
. FCC v. Allentown Broadcasting Co., 349 U.S. 358, 361, 75 S.Ct. 855, 858, 99 L.Ed. 1147, 1153 (1955).
. Jackson Broadcasting & Television Corp. v. FCC, 108 U.S.App.D.C. 128, 129 n.3, 280 F.2d 676, 677 n.3 (1960). Cf. Jupiter Assoc., Inc. v. FCC, 136 U.S.App.D.C. 266, 272, 420 F.2d 108, 114 (1969); Pinellas Broadcasting Co. v. FCC, 97 U.S.App.D.C. 236, 239, 230 F.2d 204, 207, cert. denied, 350 U.S. 1007, 76 S.Ct. 650, 100 L.Ed. 869 (1956).
. See, e. g., Fort Harrison Telecasting Corp. v. FCC, 116 U.S.App.D.C. 347, 350, 324 F.2d 379, 382 (1963), cert. denied, 376 U.S. 915, 84 S.Ct. 665, 11 L.Ed.2d 611 (1964); The Price Broadcasters, Inc. v. FCC, 295 F.2d 166, 168-169, 111 U.S.App.D.C. 179, 181-182 (1961); Interstate Broadcasting Co. v. FCC, 105 U.S.App.D.C. 224, 228-229, 265 F.2d 598, 602-603 (1959); Easton Publishing Co. v. FCC, supra note 26, 85 U.S.App.D.C. at 35, 175 F.2d at 346. Cf. Fidelity Television, Inc. v. FCC, 169 U.S.App.D.C. 225, 235, 515 F.2d 684, 694, cert. denied, 423 U.S. 926, 96 S.Ct. 271, 46 L.Ed.2d 253 (1975); Northeast Broadcasting, Inc. v. FCC, supra note 26, 130 U.S.App.D.C. at 284, 400 F.2d at 755. See generally, Anthony, Towards Simplicity and Rationality in Comparative Broadcast Licensing Proceedings, 24 Stan.L. Rev. 1, 85-87 (1970); Comment, Comparing the Incomparable: Towards a Structural Model for FCC Comparative Broadcast License Renewal Hearings, 43 U.Chi.L.Rev. 573, 600-601 (1976).
. See authorities cited supra at note 38. The Commission asserts that preexisting broadcast stations can be maintained even though their continuance does not satisfy the strictures of § 307(b). See, e. g., Final Decision, supra note 3, 45 F.C.C.2d at 577-578; Review Board Decision, supra note 3, 29 F.C.C.2d at 538-539. This contention is, we think, belied by the face of the statute, which applies not only to changes in the structure of spectrum allocation, such as grants of new licenses or modifications, but to license renewals as well. Cf. e. g., Fidelity Television, Inc. v. FCC, supra note 38, 169 U.S.App.D.C. at 235, 515 F.2d at 694. Our inference is buttressed by the section’s adjuration that the Commission consider the propriety of allocation “when and insofar as there is demand” for service. 47 U.S.C. § 307(b) (1970). Satisfaction of these statutory commands is not, nor ought it to be, a one-time thing, for the balance of demand for service will shift among communities over time. Admittedly these cases are distinguishable from those in which we have held that “where cities are competing for channel allocation, a temporary allocation to one city rather than'another should not operate to create vested rights.” Fort Harrison Telecasting Corp. v. FCC, supra note 38, 116 U.S.App.D.C. at 354, 324 F.2d at 386. See Beloit Broadcasters, Inc. v. FCC, 125 U.S.App.D.C. 29, 30-31, 365 F.2d 962, 963-964 (1966). Cf. Community Broadcasting Co. v. FCC, 107 U.S.App.D.C. 95, 101, 274 F.2d 753, 759 (1960). It is clear, moreover, that the Commission should not be required to compromise its considered judgment as to what distribution is proper every time someone is dissatisfied with existing allocations. Cf. Logansport Broadcasting Corp. v. United States, 93 U.S. App.D.C. 342, 345-346, 210 F.2d 24, 27-28 (1954). On the other hand, the Commission is required to reasonably respond to changing conditions and here, at least, where the Commission had designated the § 307(b) issue, see Initial Decision, supra note 3, 29 F.C.C.2d at 612-614, it may not cleave to the status quo without a legally acceptable justification.
. Final Decision, supra note 3, 45 F.C.C.2d at 581.
. See, e. g., id. at 582-593.
. Id. at 595.
. See id. at 593 & nn. 35-36.
. Policy Statement on Comparative Broadcast Hearings, 1 F.C.C.2d 393, 394-398 (1965). See, e. g., Star Television, Inc. v. FCC, 135 U.S.App. D.C. 71, 74, 416 F.2d 1086, 1089, cert. denied, 396 U.S. 888, 90 S.Ct. 171, 24 L.Ed.2d 163 (1969); Anthony, supra note 38, 24 Stan.L.Rev.
. See, e. g., Policy Statement on Comparative Broadcast Hearings, supra note 44, 1 F.C.C.2d at 398 & n.12; Ashbacker Radio Corp. v. FCC, 326 U.S. 327, 66 S.Ct. 148, 90 L.Ed. 108 (1945); Citizens Communications Center v. FCC, supra note 44; Greater Boston Television Corp. v. FCC, 143 U.S.App.D.C. 383, 444 F.2d 841 (1970), cert. denied, 403 U.S. 923, 91 S.Ct. 2233, 29 L.Ed.2d 701 (1971); Johnston Broadcasting Co. v. FCC, 85 U.S.App.D.C. 40, 175 F.2d 351 (1949).
. We remanded for clarification on two issues:
(1) Did the Commission consider any standard comparative issues, other than the efficiency factor, in reaching its decision?
(2) If not, why did the Commission deem it unnecessary to reach those issues, and how does the Commission’s decision avoid inconsistency with the authorities noted above?
Pasadena Broadcasting Co. v. FCC, No. 74-1002, at 2 (memorandum and order, D.C. Cir. Sept. 25, 1975) (unreported).
. See Goodson-Todman Broadcasting, Inc., 35 R.R.2d 1219, 1220 (1975), hereinafter cited “Supplemental Report.”
. Id. at 1225, citing and distinguishing Policy Statement on Comparative Broadcast Hearings, supra note 44, 1 F.C.C.2d at 398 & n.12 (“[i]n comparative cases where one of two or more competing applicants . . . would be more efficient, this fact . . . should be considered,” but this factor is “not to be confused with” the choice of communities aspect of § 307(b). See, e. g., Resort Broadcasting Co., Inc., 41 F.C.C.2d 640 (Rev.Bd.1973), aff’d, Resort Broadcasting Co. v. FCC, 167 U.S.App. D.C. 210, 511 F.2d 448 .(1975).
. Supplemental Report, supra note 47, 35 R.R.2d at 1225.
. Id., 35 R.R.2d at 1223.
. Id., 35 R.R.2d at 1225.
. 47 U.S.C. § 307(b) (1970), set out in text supra at note 9.
. See, e. g., United States v. Storer Broadcasting Co., 351 U.S. 192, 76 S.Ct. 763, 100 L.Ed. 1081 (1955); 560 Broadcast Corp. v. FCC, 135 U.S.App.D.C. 330, 418 F.2d 1166 (1969); Goodwill Stations, Inc. v. FCC, 117 U.S.App.D.C. 64, 325 F.2d 637 (1963); Logansport Broadcasting Corp. v. FCC, supra note 39.
. Supra note 36.
. 349 U.S. at 361-362, 75 S.Ct. at 858, 99 L.Ed. at 1153.
. E. g., Guinan v. FCC, 111 U.S.App.D.C. 371, 297 F.2d 782 (1961); Simmons v. FCC, 79 U.S. App.D.C. 264, 145 F.2d 578 (1944). Cf. Jupiter Assoc., Inc. v. FCC, supra note 37.