State of Or. v. F.C.C.
| Citation | 102 F.3d 583 |
| Decision Date | 20 December 1996 |
| Docket Number | No. 96-1059,96-1059 |
| Parties | , 114 Ed. Law Rep. 1026, 5 Communications Reg. (P&F) 1053 STATE OF OREGON, Appellant, v. FEDERAL COMMUNICATIONS COMMISSION and United States of America, Appellees. University Foundation, California State University at Chico, Intervenor. |
| Court | U.S. Court of Appeals — District of Columbia Circuit |
Appeal of an Order of the Federal Communications Commission.
Howard M. Liberman, Washington, DC, argued the cause for appellant, with whom Gerald Stevens-Kittner was on the brief.
Gregory M. Christopher, Counsel, Federal Communications Commission, Washington, DC, argued the cause for appellees, with whom William E. Kennard, General Counsel, and Daniel M. Armstrong, Associate General Counsel, were on the brief. Roberta L. Cook, Counsel, entered an appearance.
Stanley S. Neustadt and Wayne Coy, Jr., Washington, DC, were on the brief for intervenor University Foundation, California State University at Chico.
Before: WALD, GINSBURG, and TATEL, Circuit Judges.
The State of Oregon, acting through the State Board of Higher Education for the benefit of Southern Oregon State College, appeals a decision of the Federal Communications Commission rejecting as untimely its application for a new noncommercial FM license and denying its application for a waiver of the cut-off rules for competing applications. Because the Commission did not provide clear notice of the cut-off date for competing applications, we reverse the order of the FCC and remand this matter to the Commission.
In Ashbacker Radio Corp. v. FCC, 326 U.S. 327, 66 S.Ct. 148, 90 L.Ed. 108 (1945), the Supreme Court held that the FCC must conduct a comparative hearing whenever there are before it mutually exclusive applications for a broadcast license. The FCC has promulgated various regulations governing the processing of such applications and establishing certain filing deadlines. "The purpose of these rules is to attract all competitive applications for a particular [license] within a fixed and reasonably short time frame, allowing the Commission to satisfy its Ashbacker obligations with a single, fairly prompt comparative hearing." McElroy Electronics Corp. v. FCC, 86 F.3d 248, 253 (D.C.Cir.1996).
The licensing process for a new noncommercial FM station begins when the Commission receives the first application therefor. If the Commission accepts an application for filing, then the agency must issue a public notice (known as the "A" cut-off list) naming the applicant(s) accepted for filing and announcing a date not less than 30 days after the publication of the notice by which all mutually exclusive applications and petitions seeking to deny the listed application(s) must be filed. 47 C.F.R. § 73.3573(e). Any competing applications filed before the "A" list cut-off date are noted in a "B" cut-off list. The "B" cut-off list contains the deadline for the filing of all petitions to deny "B" list application(s). Id. When the "B" cut-off deadline has passed, the "A" and "B" list applications are set down for a single comparative hearing.
In this case, the process got underway in June 1988 when the University Foundation, California State University at Chico submitted to the FCC an application for a noncommercial FM radio station in Redding, California. On November 29, 1989 the FCC sent the Foundation a letter indicating that its application was deficient because it lacked certain engineering information. The letter stated: "Further action on the subject application will be withheld for a period of 30 days from the date of this letter to give you an opportunity to cure these deficiencies." The Commission duly sent Oregon a copy of this letter. On December 6, 1989 the FCC released an "A" cut-off list setting January 10, 1990 as the cut-off date for applications competing with that of the Foundation. On December 28, 1989 the Foundation submitted the engineering information the FCC had requested in its letter of November 29. On the same day, the Commission released another "A" cut-off list setting February 1, 1990 as the deadline for applications competing with that of the Foundation.
On January 2, 1990 the Foundation sent a letter to the FCC asking that its application be deleted from the cut-off list issued on December 28, 1989. The Foundation did not send a copy of this letter to Oregon, in apparent violation of the Commission's regulations governing ex parte communications. See 47 C.F.R. §§ 1.1202(b); 1.1208(a). On January 12 the Commission issued an erratum stating that the Foundation's application "was listed inadvertently on [the "A" list], released December 28, 1989 and is hereby deleted."
Although it was aware of the January 10 cut-off date in the "A" list published on December 6, Oregon did not file its own application for the Redding station until January 29, 1990. The State asserts that it believed the Commission had published the December 6 list in error because only one week earlier, in the November 29 deficiency letter to the Foundation, the agency had indicated that it would not act upon the Foundation's application for 30 days. Nonetheless, Oregon claims, after the February 1 cut-off date was published it made diligent efforts to determine which cut-off date was valid. The State continued to monitor Commission notices; consulted the Commission's Facility/Application Information Report, which indicated that the February 1 deadline applied; attempted to contact Commission staff directly but was unsuccessful because of the holiday season; and received assurances from the FCC staff indirectly, via Senator Packwood's office, that the Commission would accept applications until February 1.
On January 15, 1990 Oregon sent a letter to the Secretary of the Commission expressing its concern that by issuing the erratum of January 12 deleting the Foundation's application from the December 28 "A" list, the agency intended to adhere to January 10 as the cut-off date. The State explained that it was in the process of preparing a competing application to be filed on or before February 1, which it believed to be the applicable cut-off date.
Oregon went on to submit its application on January 29, together with a request for a waiver. On June 21 the Chief of the Audio Services Division, Mass Media Bureau, rejected the State's request for a waiver and returned the application as untimely filed. Oregon then filed an Application for Review by the Commission, in which it argued that the staff exercising delegated authority had acted arbitrarily and capriciously in denying its application as untimely.
The Commission denied review, noting that Oregon had "actual knowledge" that the Foundation's application was pending before the agency yet "for reasons known only to Oregon" did not submit its own application until after the Foundation's application was accepted for filing. The Commission rejected the State's argument that it had reasonably relied upon the FAIR Report, that it had reasonably believed the November 29 deficiency letter precluded the Commission from placing the Foundation's application upon an "A" list in less than 30 days, and that it could have filed its application by January 10 if only it had been served with a copy of the Foundation's January 2 letter to the Commission, as required by the agency's rules for ex parte communications. The FCC opined that this case was analogous to Florida Institute of Technology v. FCC, 952 F.2d 549 (D.C.Cir.1992), in which we held that the FCC had provided adequate notice even though it had issued two inconsistent "A" lists.
The Commission also denied the State's request for a waiver. The Commission held that this case did not present "extraordinary circumstances" and that the State had not exercised reasonable diligence or demonstrated that its delay in filing was due to a circumstance beyond its control....
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