Ruggiero v. Federal Communications Commission

317 F.3d 239, 278 F.3d 1323, 349 U.S. App. D.C. 374, 2002 U.S. App. LEXIS 1994, 2002 WL 191747
CourtCourt of Appeals for the D.C. Circuit
DecidedFebruary 8, 2002
Docket00-1100
StatusPublished
Cited by12 cases

This text of 317 F.3d 239 (Ruggiero v. Federal Communications Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ruggiero v. Federal Communications Commission, 317 F.3d 239, 278 F.3d 1323, 349 U.S. App. D.C. 374, 2002 U.S. App. LEXIS 1994, 2002 WL 191747 (D.C. Cir. 2002).

Opinions

Opinion for the Court filed by Circuit Judge TATEL.

Dissenting opinion filed by Circuit Judge KAREN LeCRAFT HENDERSON.

TATEL, Circuit Judge:

In this case, an unlicensed microbroadcaster — a “pirate” — challenges the constitutionality of the Radio Broadcasting Preservation Act of 2000’s character qualification provision, which permanently prohibits anyone who ever “engaged in any manner in the unlicensed operation of any station in violation of ... the Communications Act of 1934” from obtaining a low-power FM radio license. To survive First and Fifth Amendment challenges in this Circuit, restrictions limiting the future [376]*376lawful speech of a well-defined class of broadcasters must be more than “minim[ally] rational ].” News Am. Publ’g, Inc. v. FCC, 844 F.2d 800, 812, 814 (D.C.Cir.1988) (“News America”). Finding nothing in the Act, its legislative history, or the record before us to justify the character qualification provision’s unique and draconian sanction for broadcast piracy, nor to explain why a more limited restriction would not achieve Congress’s objective, we hold that the provision and its implementing regulation fail to meet this standard and are therefore unconstitutional.

I.

Section 301 of the Communications Act of 1934 makes it unlawful to operate a radio station without a license issued by the Federal Communications Commission. 47 U.S.C. § 301. When the Commission began licensing FM radio stations in the 1940s, it licensed both high-power stations and low-power, or “Class D,” educational stations operating with a maximum of ten watts of power. In 1978, however, the Commission concluded that the Class D stations were impeding expansion of more efficient high-power operations. Opting to “str[ike] the balance in favor of licensing higher powered stations to ensure that large audiences were served,” the Commission stopped licensing low-power stations and required most existing stations to upgrade to at least 100 watts. Creation of Low Power Radio Serv., 15 F.C.C. Red. 19,208, 19,236 (2000) (“First Low-Power Reconsideration”) (recons.) (discussing the 1978 rale, Changes in the Rules Relating to Noncommercial Educ. FM Broad. Stations, 70 F.C.C.2d 972, 983 (1979) (codified at 47 C.F.R. § 73.512(d))).

Over the next two decades, often in open defiance of this rule, individual pirates began operating unlicensed low-power stations that broadcast local news, music, and commentary. Known as “microradio,” this phenomenon expanded significantly in the late 1990s after Congress amended the Telecommunications Act to eliminate restrictions on the number of radio stations any one person or entity could own. Telecommunications Act of 1996, Pub.L. No. 104-104, § 202(a), (b), 110 Stat. 56, 110-12 (1996). Following the amendment, ownership of licensed radio stations became increasingly concentrated, leading — according to microradio proponents — to a “marked decline in serious local radio news reporting” and a corresponding increase in the perceived importance and, in turn, number of unlicensed low-power stations. Pet’r’s Br. at 6-7. In response to this microradio expansion, the Commission cracked down on pirates, ordering them to cease broadcasting and taking legal action against those who refused. See, e.g., Grid Radio v. FCC, 278 F.3d 1314 (D.C.Cir.2002); United States v. Dunifer, 219 F.3d 1004 (9th Cir.2000).

In 1999, the Commission again changed course, seeking public comment on proposed rules that would allow licensing of low-power stations. The Commission observed that in contrast to 1978, when it first adopted the microbroadcasting ban, “[n]ow, ... radio service is widely available throughout the country and veiy little spectrum remains available for new full-powered stations,” so licensing low-power stations could “fill ... gaps in the spectrum that would otherwise go unused,” First Low-Power Reconsideration, 15 F.C.C. Red. at 19,236, providing a “low-cost means of serving” both urban and rural areas, Creation of Low Power Radio Serv., 14 F.C.C. Rcd. 2471, 2471 (1999) (“Low-Power Proposal”) (notice of proposed rulemaking). Many groups submitted comments, with students, religious groups, and labor unions generally sup[377]*377porting the low-power program, and the established broadcasting industry (including National Public Radio and other noncommercial broadcasters) opposing it.

In January 2000, the Commission issued an order authorizing two new classes of low-power stations: 100-watt stations, reaching a radius of roughly 3.5 miles, and 10-watt stations, reaching a radius of less than 2 miles. Creation of Low Power Radio Serv., 15 F.C.C. Red. 2205, 2205, 2210-12 (2000) (“First Low-Power Rule-making”). The order encouraged local ownership of low-power stations, limited the number of such stations any single entity could own, required the stations to operate on a noncommercial, educational basis, and prohibited existing media entities from holding interests in them. Id. at 2215-25. The order also included a provision addressing license applications by broadcast pirates. Concerned that those who had flouted the licensing process in the past could not be trusted “to deal truthfully with the Commission and to comply with [its] rales and policies,” the Commission provided that it would only accept low-power applications from individuals who certified (under penalty of perjury) that if they had operated illegally in the past, they ceased all such operations either within twenty-four hours of being directed by the Commission to do so or within ten days of publication of the Low-Power Proposal. Id. at 2225-26. The Commission also extended this requirement to all parties to any corporate applicant, including the applicant’s “parents, its subsidiaries, their officers and members of their governing boards.” Id. at 2223-26.

This version of the low-power rules was short-lived. Less than a year after the rules’ promulgation, Congress, responding to broadcast industry lobbying, see, e.g., 146 Cong. Rec. S8197-8211 (statement of Sen. Grams) (discussing licensed broadcasters’ concerns about the low-power rales), passed the Radio Broadcasting Preservation Act of 2000 (“RBPA”), Pub.L. No. 106-553, 114 Stat. 2762 (2000). The RBPA directs the Commission to amend the low-power rales to limit the frequencies available for low-power stations, thus reducing the risk of interference to existing stations. Central to this case, the Act also directs the Commission to deny licenses to all applicants whose officers or board members ever “engaged in any manner in the unlicensed operation of any station in violation” of the Communications Act. Id. § 632(a)(1)(B). This “character qualification provision” thus eliminates the distinction the Commission had drawn between those erstwhile broadcast pirates who voluntarily ceased broadcasting within a specified period and those who refused.

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317 F.3d 239, 278 F.3d 1323, 349 U.S. App. D.C. 374, 2002 U.S. App. LEXIS 1994, 2002 WL 191747, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ruggiero-v-federal-communications-commission-cadc-2002.