Document: 415 U.S. 336 94 S.Ct. 1146 39 L.Ed.2d 370 NATIONAL CABLE TELEVISION ASSOCIATION, INC., Petitioner,v.UNITED STATES and Federal Communications Commission. No. 72—948. Argued Dec. 3, 1973. Decided March 4, 1974. Syllabus The Independent Offices Appropriation Act, 1952 (hereafter the Act), authorizes each federal agency to prescribe by regulation such fee for agency's services as is determined be fair equitable, taking into consideration direct indirect 'cost Government, value recipient, public policy or interet served, other pertinent facts . ..' Pursuant Commission (FCC), in revising fees imposed upon community antenna television (CATV) systems, first estimated its costs CATV regulations, then, while retaining filing fees, added an annual system at rate of 30¢ per subscriber, concluding that this would approximate 'value recipient' used Act. Court Appeals, on a review obtained petitioner, trade association, approved FCC's action. Held: 1. Act imposition 'fee,' which connotes 'benefit' recipient.' latter phrase proper measure authorized charge, not 'public interest served' phraseology which, if read literally, enable make assessments tax levies whereby CATV's broadcasters paying only benefits they received but, contrary Act's objectives, also protective FCC renders public. Pp. 340—343. 2. should reappraise CATV's. It enough figure total cost (direct indirect) operating supervision unit then contrive formula reimbursing amount, since some certainly inured public's benefit have been included 343—344. 464 F.2d 1313, reversed remanded. Stuart F. Feldstein, Washington, D.C., petitioner. Edward R. Korman, New York City, respondents. Jr. Justice DOUGLAS delivered opinion Court. 1 1952, Tit. 5, 65 Stat. 290, 31 U.S.C. § 483a, provides relevant part: 'It sense Congress any work, service benefit, license, similar thing utility performed, furnished, provided, granted person (including corporations .) shall self-sustaining full extent possible, head therefor fee, price, any, he determine equitable ..'1 Petitioner association representing systems transmit TV programs cable. regulate these outlets, held United States v. Southwestern Cable Co., 392 157, 88 1994, 20 1001. power regulate, though form granting licenses, extends promulgation regulations requiring compulsory origination CATV. Midwest Video Corp., 406 649, 92 1860, 32 390. These CATV's, however, are under exclusive oversight Local governments even provide permits franchises including rights way cables used. Some communities return their require pay percentage gross receipts tax.2 2 1964 established nominal produced revenues approximated 25% Commission's appropriation. See 21 F.C.C.2d 502, 503. Aeronautical Radio, Inc. States, 7 Cir., 335 304. Bureau Budget urged higher schedules; so did committees Congress. H.R.Rep.No.91—316, pp. 7—8, H.R.Conf.Rep.No.91—649, p. 6, where it was stated: 3 'The committee conference agreed structure adjusted fully support all activities taxpayers will required bear part load view profits regulated agency.' Commission, after notice hearing, revised existing licensees time were $1,145,400 4.6% budget request year. Filing retained; there cable 30 cents subscriber. finding subscription rates clustered about $5 month, concluded 30-cent typically amount one-half 1% system's from subscription. produce, said, $1,145,000 annually, 23 880; 28 139. 4 decision action, 1313. case here petition certiorari we granted, 411 981, 93 2267, 36 957, because apparent conflict between England Power Co. FPC, 151 U.S.App.D.C. 371, 467 425, Appeals District Columbia Circuit. 5 Taxation legislative function, Congress, sole organ levying taxes,3 may act arbitrarily disregard bestowed Government taxpayer go solely ability pay, based property income. A incident voluntary act, e.g., permit applicant practice law medicine construct house run broadcast station. performing those normally exact grant presumably, bestows applicant, shared members society. sharp break with our traditions conclude had taxing 483a narrowly authorizing 'tax' but 'fee.' 'fee' use standard carries connotation. addition facts,' far customary orbit puts search revenue manner Appropriations Committee House. 6 lawmaker may, light served,' assessment heavy wants discourage activity;4 levy slight bounty bestowed; substantial keep entrepreneurs exploiting semipublic cause own personal aggrandizement. Such nature 'taxes' constitutional regime traditionally levied There no doubt main function safeguard broadcasting industry. If made against industry sufficient recoup oversight, rendered fixing assessments, argued, taxes. Court, speaking through Mr. Chief Hughes said Schechter Corp. 295 495, 529, 55 837, 843, 79 L.Ed. 1570: 8 Constitution 'All powers herein vested consist Senate House Representatives.' Art. I, And 'To laws necessary carrying execution' general powers. 8, par. 18. permitted abdicate transfer others essential functions thus vested.' 9 course, does delegate agencies, setting standards guide determination. Thus, Hampton & 276 394, 48 348, 72 624, enacted flexible tariff customs duties articles imported equaled difference producing them foreign country selling like States. Provision investigation determination differences Tariff reported President who increased decreased duty accordingly. sustaining said: 'If lay down intelligible principle body fix directed conform, action forbidden delegation power.' Id., 409, 352. 10 Whether present meets requirement question do reach. But hurdles revealed decisions lead us avoid problems. 11 is, believe, fee. words facts' seem case, whatever ultimate backbone individual enterprise ingenuity, governmental largesse. regulatory placed courts over designed rich serve 'mak(ing) available people rapid, efficient, Nation-wide, world-wide wire radio communications service.' 1064, amended, 47 151. 12 While operate receive special benefits, cannot sure correct reimburses amount. Certainly public, unless entire scheme failure, refuse assume. philosophy stated Congressman Sidney Yates Appropriations. spoke broadcasters, what germane problem: 13 'I think exchange franchise gives company protection affords assure freedom interference operation facilities particular point spectrum occupies, hearings. perfectly franchised profit, has much profit making. companies assume greater share costs, necessary.' 97 Cong.Rec. 4809. 14 That congressional aim can achieved within framework contrasted served. 15 result reverse remanded further proceedings consistent opinion. 16 Reversed 17 BLACKMUN POWELL took case. Report, H.R.Rep.No. 384, 82d Cong., 1st Sess., 2—3, makes following comment measure: concerned receiving many beneficiaries. Many specifically fixed law, cases, provided charged. In charged charging prohibited; still others, basis formulae prescribed application needs re-examined bring actual charges line present-day related considerations. understood interested themselves matter studies now legislation adequate services. However, necessarily time-consuming considerable period. Accordingly, inserted language bill (Title V, page 60) authorize encourage increasing basic laws, effect changes laws. more than $300,000,000 sources type consideration. seems entirely possible could raised, types cases charge made, might realize upwards $50,000,000 additional revenue. authority agencies present, revise too low, except made. Committee's intention provision disturb practices respect postal services, sales power, loans Government.' most recent rules adopted (37 Fed.Reg. 3280) certificate compliance CFR 76.11(b), obtain appropriate local government containing recitations provisions. 76.31. new limit localities operate. Included restrictions telephone whose poles usually strung. §§ 63.54—63.57, 64.601—64.602. see General Telephone 449 846, 851; Report Jan. 14, 1974, Cabinet (known Whitehead Report). By cl. 1, 'Power collect Taxes.' Marshall credited statement 'the destroy,' Holmes replied, destroy sits.' Panhandle Oil Knox, 277 218, 223, 451, 453, 857 (dissenting opinion).

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