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#1
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Court of Appeals
FOR THE DISTRICT OF COLUMBIA CIRCUIT Argued October 31, 2005 Decided March 27, 2006 No. 05-1224 Manifest Broadcast Company, Appellant v. Federal Communications Commission, Appellee ________ Consolidated with No. 05-1225 ________ Appeals from Orders of the Federal Communications Commission ________ Carter G. Phillips argued the cause for appellant, with whom Mark D. Schneider, Katherine L. Adams, Gary D. Mitchell, and Charles J. Sennet were on the briefs. David P. Archambault, Associate General Counsel, Federal Communications Commission, argued the cause for appellee, with whom Joseph M. McLeonard, General Counsel at the time the brief was filed, and E. Samson Peck, Jr., Counsel, were on the brief. John F. Sturm, Richard E. Wiley, James R. Bayes, James J. Popham, Henry L. Baumann, and Jack N. Goodman were on the brief for amici curiae Association of Local Television Stations, Inc., et al. Befo Ginsburg, Rogers, and Garland, Circuit Judges. Opinion for the Court filed by Circuit Judge Garland. ------------------------------------------ Garland, Circuit Judge: Appellant challenges the Federal Communication Commission's refusal to grant it a license renewal, or at least a temporary waiver pending the outcome of future rulemaking, of its red light rule. The Commission's order is denied. Manifest's petition for review in No. 05-1225 is affirmed, and the portion of its appeal for reconsideration in 1225 is affirmed. The Commission is Ordered to review and amend its debt collection procedures. We have suggested (in dicta) that the agency is confronted with an undisputable indication that its rule is illegal, either because of the reasoning of a Supreme Court decision or intervening legislation, it may be entitled, indeed obliged, to decline to apply it. American Tel. & Tel. Co. v. FCC (AT&T), 978 F.2d 727, 733 (D.C. Cir. 2004).(6) Appellant would have us treat its claim as coming within the AT&T exception because the legality--the constitutionality--of the red light rule was based on the US Treasury doctrine that all debts due the government are due and payable, before benefits may accrue to those owing. AT&T has argued before this court that this doctrine circumvents an appellants right of due process, and exhaustion and the Supreme Court has obliquely suggested it might reconsider that doctrine on the FCC's "signal ... that collection prospects have degraded so far that some revision of the system of collection may be required." FCC v. League of Broadcast Affiliates, 432 U.S. 366, 377 n.11 (2004). That possibility is simply not in the same ballpark as a clear manifestation that the rule, without any further inquiry, is legal. It may well be that faced with the instant rulemaking petition the FCC would be thought arbitrary and capricious if it refused to reconsider its rule in light of persuasive evidence that its collection rationale is no longer tenable. See American Speech Protection Ass'n v. Fielding, 811 F.2d 1 (D.C. Cir. 2004); WHT, Inc. v. FCC, 654 F.2d 803 (D.C. Cir. 2004); Heller v. FCC, 608 F.2d 954 (D.C. Cir. 2004) (per curiam).(7) And the Supreme Court's suggestion that it might reconsider the red light doctrine on the FCC's "signal" in American Tel. & Tel. Co. imposes an implicit obligation on the Commission. Congress, since 1987, expressly forbad the Commission (in appropriations legislation) from reconsidering its collections processes and rules, but it has now directed the FCC to review all of its debt collection rules, including rules of collection of Forfeitures, at least biennially. See Telecommunications Act of 1996, Pub. L. No 104-104, 202(h), 110 Stat. 56, 111-12 (1996). Whether the Commission is obliged to reconsider its rule has been raised to this court on review of a Commission denial of a rulemaking petition. Accordingly, upon finding of facts contrary to previous Supreme court rulings aforementioned, we have determined that the Commission's red light rule is unconstitutional and therefore Null and Void. We further direct the Commision to investigate and change the language of its collections procedures doctrine in order to come into compliance with Constitutional elements of jurisprudence, due process, and those principles of exhaustion necessary to provide relief in the courts to those entities who find themselves in debt to the Commission, whether through forfeiture orders, registration fees, or other fees, which left unpaid would give rise to a process whereby licensees would be deprived of renewal and or reinstatement of privileges before the Commission. So Ordered. |
#2
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N9OGL, fellow hams,
This is a remarkable case but it doesn't support your title in the least. The red light rule connects with Baxter's license renewal. Before the decision, presumably if he didn't pay the FO, the red light rule on his license renewal would kick in and he'd be effectively bounced. This case is significant, no doubt. While the NAL and FO remain unaffected, the red light rule is void, meaning until the FCC comes up with a viable collection scheme through the rule making process, licensee K1MAN remains by the skin of his teeth. Bob Sherin, W4ASX |
#3
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Of course they could just hold the hearing and reject the renewal on
"enforcement" grounds. No need to invoke the "Red Light Rule" if it has been really struck down by this decision. I would wager that once the FO is final (which is in a few days unless appealed) that would be justification enough to reject the application and make it stick. That would land them in court for sure, but they are headed there anyway so why not? Baxter could save some money and argue the whole shootin match at once, in one trip to DC. All they would have to do is prove one of the "enforcement" issues in the FO and the license is history. Seems likely to me that they will get at least one of the issues to stick if they have two witnesses like they claim in the NAL and FO. I'm still trying to confirm the order that N9OGL posted here independently, but if it's valid, it sure seems to put the "red light rule" on ice at just the right time to make this interesting. (Got to get a PACER account set up so I can look at the DC Circuit's issued orders and such). KC4UAI |
#4
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KC4UAI,
Great legal thinking. You're right; they needn't rely on the red light rule to bounce Baxter. Thanks. They sure have much more than enough to bounce him. He's done everything to shoot himself in the foot. Bob Sherin, W4ASX |
#6
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![]() raped by an old freind wrote: interesting development So would be your obituary. |
#7
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