Prometheus Radio Project v. Federal Communications Commission

United States Court of Appeals for the Third Circuit · Administrative Law

Administrative LawFCCagency delayfinal agency actionbroadcast ownership rulesAPA 706(1)unreasonable delaymandamus

Facts

The FCC had long attempted to promote minority and female broadcast ownership through preferences for "eligible entities," but it continued using a revenue-based definition that this Court had previously found arbitrary and capricious in Prometheus II because the FCC had not shown it would increase minority and female ownership. Despite directions in Prometheus II to consider alternative definitions during the 2010 Quadrennial Review, the FCC still had not made a final determination and cited continuing data concerns. Separately, the FCC had not completed any Quadrennial Review since the 2006 cycle, leaving the 2010 and 2014 reviews open. In 2014, before completing that review process, the FCC adopted a rule making certain same-market television joint sales agreements attributable under its ownership rules.

Issue

Whether the FCC unreasonably delayed action on the eligible entity definition and the completion of its Quadrennial Review obligations, and whether the FCC could adopt the television joint sales agreement attribution rule without first completing a § 202(h) public-interest review of the underlying ownership rules. Also at issue was the proper remedy for the FCC's delays and for the JSA rule's asserted invalidity.

Rule

Under APA § 706(1), courts may compel agency action unlawfully withheld or unreasonably delayed, measured by the Oil, Chemical & Atomic Workers Union factors: elapsed time since the duty to act arose, the statutory context, the consequences of delay, and any plea of administrative difficulty or resource constraints. Under § 202(h), whenever the FCC retains, repeals, or modifies a broadcast ownership rule, it must do so in the public interest and support its decision with reasoned analysis. Because attribution rules define the scope of ownership limits, the FCC cannot expand attribution for an ownership rule subject to § 202(h) unless it has, within the previous four years, completed the required review and determined that the underlying ownership regulation is in the public interest.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

Congress directs the Federal Transit Licensing Board to adopt a final definition for 'community mobility operators,' a term that controls access to several grant preferences intended to expand ownership by women and minority entrepreneurs. After a court remands the issue and tells the Board to resolve it during the next review cycle, the Board leaves the matter open for six years, saying it still wants better ownership data while related grant programs remain frozen in Phoenix and Tucson.

If affected nonprofit groups seek relief under APA § 706(1), which is the strongest argument for ordering prompt agency action?

Explanation. Under APA § 706(1), the court assesses unreasonable delay by examining the elapsed time since the duty arose, the statutory context, the consequences of delay, and any plea of administrative difficulty or limited resources. The majority held that prolonged delay on an important statutory objective, coupled with frozen related initiatives, can justify an order compelling action, and that data-collection difficulties do not justify indefinite delay.