Opinion ID: 187338
Heading Depth: 2
Heading Rank: 3

Heading: Order on Appeal

Text: The Commission denied all four petitions. Order, 23 F.C.C.R. at 588. First, the Commission disagreed with Eagle's contention that unauthorized transmissions are sufficient to avoid the consequences of § 312(g). Id. at 592. The Commission explained: Section 301 ... provides that no person shall transmit radio signals except in accordance with authority granted by the Commission. It further provides that no license shall be construed to create any right beyond the terms, conditions, and authority of the license. The sanctions set forth in Section 312 enforce these provisions. Section 312(g), which establishes the specific sanction for extended failure to broadcast, cannot be read to create an exception to Section 301 licensing requirements. Indeed, if read to permit unauthorized operation to avoid license expiration, Section 312(g) would encourage violation of Section 301 and defeat its own purpose of ensuring timely construction and operation of authorized facilities that serve the public. Id. Thus, the Commission rejected Eagle's claim that its unauthorized transmissions from the Buckskin site were sufficient to avoid license termination. The Commission also rejected Eagle's assertion that it reasonably believed the transmissions from the Buckskin site were authorized. Id. at 593. Eagle claimed that it believed the Staff had erroneously determined that FAA approval was required to construct the proposed tower at the Buckskin site, and that this mistake had been resolved. The Commission found that Eagle's claim of an innocent mistake was inconsistent with the facts. Noting the number of shifting theories Eagle had presented regarding the issuance of a FAA air hazard determination, the Order concluded that Eagle's claim that it held an authorization to operate at Buckskin is frivolous. Id. at 594. Commission construction permits are written documents. The Commission never issued, and therefore Eagle never received, a construction permit or any other document establishing that the Buckskin application had been granted. To the contrary, as noted above, the staff advised Eagle in writing that the application could not be granted until Eagle supplied tower notification/registration information. Eagle's alleged belief that the application had been granted by the fall of 2003 is also inconsistent with its consultant's contacts with the staff in November and December 2003 to address the FAA-related deficiency that continued to prevent staff action. Eagle's pro se status at that time did not exempt it from complying with Commission rules or statutory provisions. Id. at 594-95. The Order also rejected Eagle's claim that, under FCC case precedent, Eagle should have been assessed a monetary forfeiture, in lieu of license expiration, for unauthorized operations. The FCC distinguished the forfeiture cases cited by Eagle, saying that Eagle fails to comprehend the critical differences between rule violations and Section 312(g). Id. at 596. The Commission noted that it had discretion to shape penalties for rule violations, and distinguished the forfeiture cases as inapplicable because [t]hey do not address Section 312(g), focusing only on other rule violations. Id. Finally, the Commission rejected Eagle's alternative request for discretionary license reinstatement under the amended § 312(g). Id. at 599-600. The Commission first noted that Eagle's license expired on December 21, 2003, before the 2004 legislation was enacted. The Commission then concluded that, in any event, Eagle had failed to qualify under the statute for license reinstatement. Eagle had not obtained permission to construct a tower or operate from the Buckskin site, and Eagle's claim that it was confused about the status of its permit was not credible. The Commission also noted that the Staff had warned Eagle about the risk of license expiration under § 312(g). The Order characterized Eagle's claim that it had resumed operations at an authorized site as misleading and false. Id. at 601. Eagle raises three central arguments on appeal. First, Eagle asserts that § 312(g), by its plain terms, only prescribes license expiration in cases of utter silence. Because it transmitted from the Buckskin site, Eagle claims that it cannot be said that it fail[ed] to transmit broadcast signals for a consecutive 12-month period. Second, Eagle argues that the FCC's action was arbitrary and capricious because the Commission imposed a monetary forfeiture, rather than license expiration, against other similarly situated licensees who operated unauthorized facilities for more than a 12-month consecutive period. Finally, Eagle argues that the FCC should have reinstated its license under the 2004 amendment to § 312(g), which vests the Commission with discretion to reinstate a license that has expired if doing so would promote equity and fairness. 47 U.S.C. § 312(g).