# Petition — Capital Cities Cable, Inc. v. Crisp

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition
- **Published:** January 1, 1984
- **Citation:** 467 U.S. 691

## Text

Office-Sunreme Court, U.S.
rites

82-1795 MAY 3 1993

No.

IN THE
Supreme Court of the Wuited States
OCTOBER TERM, 1982

CAPITAL CITIES CABLE, INC.; CoX CABLE OF
OKLAHOMA CITY, INC.; MULTIMEDIA CABLEVISION, INC.;
AND SAMMONS COMMUNICATIONS, INC.,

: Petitioners,
V.
RICHARD A. CRISP, DIRECTOR,

OKLAHOMA ALCOHOLIC BEVERAGE CONTROL BOARD,
Respondent,

PETITION FOR A WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS
FOR THE TENTH CIRCUIT

Of Counsel: TIMOTHY B. Dyk *

JOHN W. ZUCKER
WILMER, CUTLER & PICKERING
1666 Kk Street, N.W,
Washington, D.C. 20006
(202) 872-6000

CLYDE A. MUCHMORE
CROWE & DUNLEVY
1800 Mid-America Tower
20 North Broadway
Oklahoma City, OK 73102

Counsel for Petitioner
Capital Cities Cable, Inc.

JOHN D. MATTHEWS *

DAVID P. FLEMING

J. CHRISTOPHER REDDING
Dow, LOHNES & ALBERTSON
1225 Connecticut Ave., N.W.
Washington, D.C. 20036
(202) 862-8079

Counsel for Petitioners Cox
Cable of Oklahoma City, Inc.;
Multimedia Cablevision, Inc.:
and Sammons Communica-
tions, Ine.

May 3, 1983 * Counsel of Record

CS
WILSON - EPES PRINTING Co., INC. - 789-0096 - WASHINGTON, D.C. 20001

QUESTIONS PRESENTED

1. Whether a State, consistent with the protection of
commercial speech under the First and Fourteenth
Amendments, may adopt a sweeping ban on truthful,
non-misleading advertising for a lawful product.

2. Whether a State, consistent with the First and
Fourteenth Amendments, may prevent cable television op-
erators from carrying out-of-state news and entertain-
ment programs because those programs contain truthful,
non-misleading advertising for wine.

- (i)

ii
PARTIES TO THE PROCEEDING BELOW

The following were parties to the proceeding (No. 82-
1061) in the United States Court of Appeals for the
Tenth Circuit: Cablecom-General, Inc. (now Capital
Cities Cable, Inc.), Cox Cable of Oklahoma City, Inc.,
Multimedia Cablevision, Inc., and Sammons Communi-
cations, Inc., appellees, and Richard A. Crisp, Director,
Oklahoma Alcoholic Beverage Control Board, appellant.*

* Petitioners construe the terms “parent companies,” “subsidi-
aries,” and “affiliates” in Rule 28.1 of the Rules of this Court to
mean those corporations (1) the shares of which are publicly
traded; (2) in the case of “parent companies,” which own a ma-
jority of the shares of a party; and (3) in the case of “subsidiaries”
and “affiliates,” a majority of the shares of which are owned by a
party. With the terms so defined, petitioner Capital Cities Cable,
Inc., has a parent company, Capital Cities Communications, Inc..
and no subsidiaries or affiliates; petitioner Multimedia Cablevision,
Inc., has a parent company, Multimedia, Inc., and no subsidiaries
or affiliates; petitioner Cox Cable of Oklahoma City, Inc., has a
parent company, Cox Communications, Inc., and no subsidiaries or
affiliates; and petitioner Sammons Communications, Inc., has no
parent, subsidiaries, or affiliates.

TABLE OF CONTENTS

Page
ee Oe io vo vvcsccinccpsancccdnncanecesnccerace i
PARTIES TO THE PROCEEDING BELOV ............... ii
ee 8 a gS go” SERIES ie Re eee pine iv
OPINIONS BELOW ............... pA) dR eM CONN Oe 1
Os canada eiesee ndescnemns 2
CONSTITUTIONAL PROVISIONS, STATUTES, AND
ee ING PROVO VD connie cnccscseeececeecsc...... yt 2
STATEMENT OF THE CASE ................ Rie biggie 2
Pee CEG FYOCOBCINNS —...c.........-..ccccscese-cecsescnnons- q
Be ss ecsmncbecnecauneeeis 9
REASONS FOR GRANTING THE WRIT ............-00----- 11
I. THE COURT BELOW HAS DECIDED AN
IMPORTANT CONSTITUTIONAL QUESTION
CONCERNING THE PROTECTION OF COM-
MERCIAL SPEECH IN CONFLICT WITH
DECISIONS OF THIS COURT AND CON-
TRARY TO THE OPINION OF ANOTHER
ee ea ms 11
Il. THE COURT BELOW HAS DECIDED AN
IMPORTANT CONSTITUTIONAL QUESTION
CONCERNING THE® PROTECTION OF NON-
COMMERCIAL SPEECH IN CONFLICT
WITH DECISIONS OF THIS COURT ............ 18
25

CAINCULAMON 2. i mare snes

iv

TABLE OF AUTHORITIES

Cases: Page
Abrams v. United States, 250 U.S. 616 (1919)........ 22
Bates xv. State Bar of Avena, 438 U.S. 350

eee ee 12, 13, 14
Bigelow Vv. Virginia, 421 U.S. 809 (1975) .............. passim
Board of Education v. Pico, 50 U.S.L.W. 4831 (U.S.

ee oe ee 22
EBuckicy o. Valeo, 424 U.S. 1 (1976) _.......... 22
Butler v. Michigan, 352 U.S. 380 (1957) _............... 24
California v. LaRue, 409 U.S. 109 (1972) .............. 15
California Retail Liquor De alors Ass'n v. Midcal

Aluminum, Inc., 445 U.S. 97 (1980) .................... 16
Carey v. Population Services International, 431

Mae ee OP 12, 13
Central Hudson Gas & Electric Corp. v. Public

Service Commission, 447 U.S. 557 (1980) .......... passim
Columbia Broudcasting System, Inc. v. Democratic

National Committee, 412 U.S. 94 (1973) ............ 20, 23

Community Communications Co. v. City of Boulder,
660 F.2d 1370 (10th Cir. 1981), petiton for cert.

dismissed by agreement, 102 S.Ct. 2287 (1982). 21
Cratg wv. Koren, 429 US. 190 (1976) ..................... 5
Dunagin rv. City of Oxford. 701 F.2d 335, reh’q en

banc ordered (5th Cir. March 11, 1983) ........... , 15,18
Bivod v. Burns, 427 US. 347 (1976) rs
Epperson v. Arkansas, 393 U.S. 97 (1968) _.. 22
Griswold v. Connecticut, 381 U.S. 479 (1965)........ 22

Grosjean v. American Press Co., 297 U.S. 233
ORO . 20.35
Home Bor Office. Inc. v. FCC, 567 F.2d 9 (D.C.

Cir.), cert. denied, 434 U.S. 829 (1977) .... 21
Pave Frenus S56 U5. 412 (1978)... 23, 24
Pa ve RAJ... 102 &. Ce 929 (1982)... 12 13, 16
Jamison v. Texas, 318 U.S. 413 (19738) . 23

Joseph Burstyn Ine. v. Wilson, 343 US. 295
Soe 20
Lamar Outdoor Advertising, Inc. v. Missisippi
State Commission, 701 F.2d 314, reh’g en banc
ordered (Sth Cir. March 11, 1988) ..............15, 177,18

TABLE OF AUTHORITIES—Continued

Larkin v. Grendel’s Den, Inc., 51 U.S.L.W. 4025

Se ae i ae
Loui isiana ex rel, Gremillion v’ . NAACP, 366 US.
“293 Re ee.
Moda v. Bradiey, 492 US. 178 (1977)
Martin v. City of Struthers, 319 U.S. 141 (1943).
Metromedia, Inc. v. City of San Diego, 153 U.S. 190

OO 8,

Miami Herald Publishing Co. v. Tornillo, 418 U.S.
eee Cees
Midwest Video Corp. v. FCC, 571 F.2d 1025 (8th
Cir. 1978), aff'd, 440 U.S. 689 (1979)
Minneapolis Star & Tribune Co. v. Minnesota Com-
missioner of Revenue. 51 U.S.L.W. 4315 (US.
mere Sr ee
Murdock v : Femme TaN, 319 U.S. 105 (1948) _.
NAACP v. Alabama, 357 U - aay (i9Ge)
National Scala ac Co, v. FCC, 516 F.2d 1101.
vacated, 516 F.2d 1180 (D.C. Cir. 1974), cert.
denied, 424 U.S. 910 Prete?
New York State Liq luthority v. Bellanca, 452
U.S. 714 (1981), e« ¢. denied, 102 S. Ct.. 2296
eee
New York Times v. Sullivan, 376 U.S. 254 (1964)..

"|

Ohralik v. Ohio State Bar Association, 436 U.
G47 (90a) SOL ONG SEES SMR CeO Par ESA
Oklahoma Alcoholic Beverage Control Board r.
Heublein Wines, 566 P.2d 1158 (Okla. 1977) _.
Pittsburgh Press Co. v. Pittsburgh Commission on
Human Relations, 413 U.S. 876 (1973)
Queensgate Investment Co. v. Liquor Control Com-
mission, 133 N.E.2d 138 (Ohio). appeal dis-
missed, 103 S. Ct. 31 (1982) ..... AE Rn NS
Queensgate Investment Co, v. Liquor Control Com.

mission, 103 S. Ct. 31 figees a. 10,

Saia v. New York, 334 U.S. 558 (1948)
Schneider v. State, 308 U.S. 147 (ieee)

2a

14,

vi

TABLE OF AUTHORITIES—Continued

Page

Smith v. California, 361 U.S. 147 (1959) .............. 24

Stanley v. Georgia, 394 U.S. 557 (1969) .....000000..... 24
Straus Communications, Inc. v. FCC, 530 F.2d

BO RR te TY ori 18
Teleprompter Corp. v. Columbia Broadcasting

seetem, fac., 415 U.S. 804 (1974) _........0... 21

Valentine v. Chrestensen, 316 U.S. 52 (1932)........ 12, 23

Virginia State Board of Pharmacy v. Virginia Citi-
zens Consumer Council, 425 U.S. 748 (1976)..12, 18, 14
Wisconsin v. Constantineau, 400 U.S. 4383 (1971).. 15, 16

Administrative Decisions and Reports:

Cable Television Report and Order, 36 F.C.C.2d
tOe Clee ee
Garland B. Pugh, 68 F.C.C.2d 997 (1978) ............
Notice of Proposed Rulemaking and Notice of In-
quiry in Docket 18397, 15 F.C.C.2d 417 (1968).. 5
WAPA-TV Broadcasting Corp., 59 F.C.C.2d 263

>) Bor)

(ere Bcc, OS ORO A TE: 5
Advisory Opinions:
Op. Okla. Att’y Gen. No. 76-348 (November 24,
ere A nse 4
Op. Okla. Att’y Gen. No. 79-334 (March 19,
RO oe a EA Ree 4,5
Constitutional Provisions:
Constitution of the United States of America
ee 7
eee 7
ee ee passim
Fourteenth Amendment .................. Lech. pa
Twenty-ares Amendment ................................ passim

Constitution of the State of Oklahoma
re ee Oe i passim

vii
TABLE OF AUTHORITIES—Continued

Statutory Provisions:

kt Us. § 213 0C) (3) Coupp. V 1961) _...........
28 U.S.C. § 1254(1) (1976 & Supp. IV 1980)....
oe Aaa, & fool (1976 & Supp. V 1981) _........
28 U.S.C. § 1348 (1976 & Supp. V 1981) ............
me Ue, 20 (Sano ¥ 1981)
a2 U.S. $1968 (Sane. TV 1980) .............
Okla. Stat,/Ann. tit. 37, $506(8) (1981) ..............

Cita. Stat: Ann. tit. $7, $516 (1981) ..........
Regulations:

ae o. Granor? flee)

me (6 mee ieor-o. 6 (ieee)

Congressional Materials:
H.R. Rep. No. 1476, 94th Cong., 2d Sess. 89
Pier? 2 ee ea Na:

Publications:
C. Burck, Changing Habits in American Drinking,
Poruene. (oer oie...
Cable and Station Coverage Atlas (1982) _............
Comment, Access to Cable Television: A Critique
of the Affirmative Duty Theory of the First
Amendment, 70 Cal. L. Rev. 1393 (1982) _..........
Ely, Legislative and Administrative Motivation in
Constitutional Law, 79 Yale L.J. 1305 (1970)...
Multichannel News, March 28, 1983 _....... Sa SEI
Note, Cable Television and the First Amendment.
71 Colum. L. Rev. 1008 (1971) ......... SUL aS
Note, FCC Regulation of Cable Television Content,
my peers Ly ey. Soe (i978) .......
D. Pittman, Primary Prevention of Alcohol Abuse
and Alcoholism: An Evaluation of the Control
of Consumption Policy (Social Science Institute
of Washington University, 1981) _............__.
R. Wilkinson, The Prevention of Drinking Prob-
er fier

'U
9
Q
©

to
NIAAA oO

—

passim

Io tO

14
18

16

16

IN THE
Supreme Court of the United States

OCTOBER TERM, 1982

No.

CAPITAL CITIES CABLE, INC., et al.,
. Petitioners,
RICHARD A. CRISP, DIRECTOR,
OKLAHOMA ALCOHOLIC BEVERAGE CONTROL BOARD,
Respondent.

PETITION FOR A WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS
FOR THE TENTH CIRCUIT

Capital Cities Cable, Inc. (formerly Cablecom-General,
Inc.!, Cox Cable of Oklahoma City, Inc., Multimedia Ca-
blevision, Inc., and Sammons Communications, Ine. re-
spectfully petition for a writ of certiorari to the United
States Court of Appeals for the Tenth Circuit to review
that court’s judgment of January 24, 1983, in Cablecom-
General, Inc. v. Crisp, No. 82-1061, which was decided
together with Oklahoma Telecasters Association v. Crisp,
No. 82-1058, in a single opinion.

OPINIONS BELOW

The opinion of the United States Court of Appeals for
the Tenth Circuit is reported at 699 F.2d 490 and ap-
pears as Appendix A to this petition. The opinion of the
United States District Court for the Western District of

2

Oklahoma granting a preliminary injunction is not re-
ported and appears as Appendix D to this petition. The
district court’s opinion on summary judgment is also not
reported and appears as Appendix G to this petition.

JURISDICTION

The judgment of the court of appeals was entered on:
January 24, 1983. On March 21, 1983, the court of ap-
peals denied a petition for rehearing filed by petitioners.
Appendix B. Jurisdiction of this Court is invoked under
28 U.S.C. $ 125411).

CONSTITUTIONAL PROVISIONS, STATUTES.
AND REGULATIONS INVOLVED

This case involves the First, Fourteenth, and Twenty-
first Amendments to the Constitution of the United
States; Article 27, Section 5 of the Constitution of the
State of Oklahoma; Section 516 of the Oklahoma Bever-
age Control Act, Okla. Stat. Ann. tit. 37, $516: Section
11lic!} (3) of the Copyright Act of 1976, 17 U.S.C.
$ 111(c) (3); and Section 76.55(b) of the rules of the Fed-
eral Communications Commission, 47 C.F.R. S 76.55 (b).
These provisions are set forth in Appendix H to this pe-
tition.

STATEMENT OF THE CASE

Petitioners operate cable television systems in the state
of Oklahoma. Much of petitioners’ cable service is com-
posed of programming that originates outside Oklahoma
and that is received by petitioners’ systems—by means
of antenna, microwave receiver, or satellite dish—and
retransmitted by wire to their subscribers. II R. Ss if
some cases, petitioners’ carriage of signals from out-
of-state television stations is mandated by the Federal
Communications Commission's so-called “must-carry”

* References to “IT BR. —."- and “IT R —__.* are to Volumes 1
and 2 of the record in this matter on appeal in the United States
Court of Appeals for the Tenth Circuit.

3

rules.’ II R. 34-35, 52-55. Most of the out-of-state pro-
gramming, however, is selected by the cable operators
themselves, and it is this programming which typically
furnishes the systems’ primary appeal to subscribers. II
R. 8, 10, 34. Out-of-state programming voluntarily car-
ried by petitioners includes the signals of commercial tele-
vision broadcast stations located in neighboring Kansas,
Missouri, and Texas and the signals of so-called “super
stations” located in such cities as Atlanta and Chicago."
II R. 32-83, 34-35, 53. This programming contains, from
time to time, commercials for brands of wine. II R. 33,
39. The wine commercials are lawful under federal law
and in the states where they originate. App. G at 4la.
While it does not appear in the record, petitioners also
provide advertiser-supported national cable programming
services, such as the Cable News Network (CNN) and
the USA Network, which also typically include wine com-
mercials.*

The sale and consumption of alcoholic beverages are
lawful in the state of Oklahoma. 699 F.2d at 500, App.
A at 19a-20a; App. G at 42a. By statute and in its con-
stitution, however, the state makes it unlawful “for any
person, firm or corporation to advertise any alcoholic
beverages or the sale of same within the State of Okla-
homa, except one sign at the retail outlet bearing the
words ‘Retail Alcoholic Liquor Store.’ ” Oklahoma Alco-
holie Beverage Control Act, Okla. Stat. Ann. tit. 37,
$516." The act specifically defines wine as an alcoholic
beverage within the scope of the advertising ban. 7d. at

* 47 C.F.R. $$ 76.57-.61 (1982).

“A “super station” is an independent television station whose
signal is relayed via statellite to cable systems beyond the normal
reach of its over-the-air signal.

* Petitioners also offer subscribers the option of receiving, at an
extra charge, certain so-called “pay’ services, such as Home Box
Office (HBO), that contain no advertising.

* See also Okla. Const. art. 27, S$ 5.

4

s 50613). The advertising of beer is permitted. 699 F.2d
at 492, 502, App. A at 3a-4a, 23a.*

The liquor advertising ban has for some years been
interpreted by the state to forbid Oklahoma broadcast
television stations from broadcasting wine commercials
as part of the national network programming they carry.
In upholding this application of the ban, the Oklahoma
Supreme Court relied heavily on its finding that televi-
sion stations are able to delete wine commercials from
the network programming. Oklahoma Alcoholic Beverage
Control Board v. Heublein Wines, 566 P.2d 1158, 1160,
1162 (Okla. 1977).

At the same time, the Oklahoma Attorney General has
construed the liquor advertising ban not to apply to ad-
vertisements appearing in newspapers, magazines and
other publications printed outside Oklahoma, including
publications specifically designed for circulation within
the state.‘ Out-of-state publications may be delivered to
Oklahoma subscribers and sold at outlets within the state
even though they contain wine or liquor advertising. 699
F.2d at 493 n.1, 502, App. A at 5a, 23a-24a.

For many years, the state applied a similar policy to
cable operators, and they were permitted to carry out-
of-state programming containing wine commercials. 699
F.2d at 492, App. A. at 4a; App. G at 4la. In March
1980, however, the Oklahoma Attorney General issued an
opinion stating that retransmission of such wine com-
mercials by cable systems operating in Oklahoma would
be considered in violation of state law. Op. Okla. Att’y

® The state’s definition of alcoholic beverages includes beer con-
taining more than 3.2 percent alcohol by weight. Okla. Stat. Ann.
tit. 37, $506(3). However, because beer advertising does not gen-
erally specify alcoholic content, the advertising of beer generally is
allowed. 699 F.2d at 492, App. A. at 3a-4a. _

* See, e.g., Op. Okla. Att’y Gen. No. 76-348 (November 24,
1976).

2

Gen. No. 79-334 (March 19, 1980). Respondent Richard
Crisp, Director of the Oklahoma Alcoholic Beverage Con-
trol Board, notified all Oklahoma cable operators, includ-
ing petitioners, that they faced imminent criminal prose-
cution if they continued to carry the out-of-state wine
commercials. 699 F.2d at 492, App. A at da: App. G at
4la.

Cable television operators are prohibited by federal law
from altering or modifying the content of the broadcast
television signals, including commercials, that they carry
to their subscribers. 699 F.2d at 492, App. A. at 4a;
App. G. at 40a. Section 76.55(b) of the Federal Com-
munications Commission’s rules, 47 C.F.R. £ 76.55(b)
(1982), requires that broadcast television programming
retransmitted by a cable system “shall be carried in full,
without deletion or alteration of any portion.” The Com-
mission has specifically held that the section forbids the
deletion of commercial messages.” Moreover, the Copy-
right Act of 1976 expressly prohibits eable systems operat-
ing under the statutory compulsory licensing system from
willfully deleting a commercial advertisement from a
television signal, subject to a minor exception not appli-
cable here. 17 U.S.C. $ 111(e) (3).

Even if deletion of the out-of-state wine commercials
were lawful, there would be, as the district court found
here, “no feasible way for [petitioners] to block out the

* See Garland B. Pugh, 68 F.C.C.3d 997. 999 (1978) (“Section
76.55(b) of the Rules... is meant to prohibit advertising dele-
tions as well”); WAPA-TV Broadcasting Corp. 59 F.C.C.2da 263,
272 (1976) ; Notice of Proposed Rulemaking and Notice of Inquiry
in Docket 18397, 15 F.C.C.2d 417, 444 (1968).

“The Act permits, in certain circumstances, deletion of commer-
cial advertising “by those engaged in television commercial adver-
tising market research.” 17 U.S.C. $111(c)} (3). The compulsory
copyright license for cable operators was created by Congress be-
cause it was deemed infeasible for cable systems that carry the
signals of numerous television stations to attempt to negotiate in-
dividual agreements with each of many different copyright owners
for the right to carry every program broadcast by each station.
See H.R. Rep. No. 1476, 94th Cong., 2d Sess. 89 (1976).

6

advertisements.” App. G at 41a. Petitioners liave no con-
tractual relationship wiih the out-of-state television :
tions whose signals they carry, no control over the pro-
gramming included in those signals by the stations, and
no advance notice from the stations concerning the sched-
uling of wine commercials. App. G at 40a; II R. 38-40,
56-57. Petitioners’ reception and retransmission of the
broadcast television signals occur simultaneously. II R.
45. Asa practical matter, therefore, even if it were law-
ful to do so, petitioners would be unable to delete each
wine commercial in its entirety as it appears: even to
attempt to delete the major part of each wine commercial
would require an extremely burdensome and costly effort
by petitioners to monitor each signal continuously. App.
D at 29a; II R. 38-41, 45-46, 54-58."

Petitioners would thus be compelled to discontinue
their carriage of all signals from commercial television
stations located outside Oklahoma if they were forbidden
from retransmitting out-of-state wine commercials. This
would deprive Oklahoma residents of access to the pro-
gramming offered by the Atlanta, Chicago and other “su-
per stations,” as well as that provided by other, less dis-
tant stations whose signals are available to Oklahoma
residents only by means of cable retransmission. The
record indicates that some Oklahoma towns would receive
no broadcast television signal at all if-cable operators
could not import signals from outside the state. II R. 55.

Failure to carry out-of-state signals would place some
cable operators in violation of the Federal Communications
Commission’s “must-carry” rules, 47 C.F.R. $$ 76.57-.61
(1982), which require them to carry certain out-of-state
signals to their subscribers. II R. 34-35, 52-55. Failure
to transmit out-of-state signals would also in some cases

10 See also Cable Television Report and Order, 86 F.C.C.2d 143,
154-56, 165 (1972) (Commission rejects as unworkable its own
proposal that would have required some cable systems to delete
commercials from certain distant television signals).

7

be contrary to cable operators’ franchise agreements with
the communities thev serve. App. G at 42a; II R. 55.
Finally, by preventing their carriage of out-of-state
broadcast signals, Oklahoma’s ban on out-of-state wine
commercials would deny cable operators the ability to
offer much of their most popular programming. II R. 10,
34, 55. As the district court found, this would cause the
operators a substantial loss in subscriber revenue, App.
G at 42a, in some cases imperiling their financial via-
bility. II R. 34.

District Court Proceedings

After being warned by state officials that they would
be prosecuted if they continued to retransmit out-of-
state wine commercials, petitioners brought an action
on March 3, 1981, in United States District Court for
the Western District of Oklahoma against respondent
Richard Crisp in his official capacity as director of the
Oklahoma Alcoholic Beverage Control Board. I R 1. Pe-
titioners sought injunctive relief against application of
Oklahoma’s liquor advertising ban to their carriage of
out-of-state wine commercials and programming con-
taining such commercials and sought a declaratory judg-
ment that such application would, inter alia, violate their
rights to freedom of speech and press guaranteed by
the First and Fourteenth Amendments to the United
States Constitution."

Following an evidentiary hearing, the district court
on March 6, 1981, issued a preliminary injunction en-
joining Crisp from enforcing the ban against petition-

'! Petitioners also alleged that enforcement of the liquor adver-
tising ban against them would violate the Commerce and Su-
premacy Clauses of the United States Constitution, Articles I and
VI, and the Equal Protection Clause of the Fourteenth Amend-
ment to the United States Constitution. Federal jurisdiction was
invoked under 28 U.S.C. $$ 1331, 1343, and 2201 and 42 U.S.C.

§ 1983.

8

ers’ carriage of out-of-state wine commercials. Appendix
D. On December 18, 1981, the district court entered
summary judgment for petitioners and issued a perma-
nent injunction. Appendices E, F.'* An opinion sup-
porting the orders was filed by the court on February 10,
1982. Appendix G."

The district court found that the wine commercials
carried by petitioners were not false or misleading and
did not advocate unlawful activity, App. G at 47a, and
held that they therefore were entitled to First Amend-
ment protection under the decisions of this Court re-
garding commercial speech. /d. The court ruled that
Oklahoma’s ‘blanket suppression,” id. at 49a, of this
advertising violated the First Amendment, relying on
Metromedia, Inc. v. City of San Diego, 453 U.S. 490
(1981), and other decisions of this Court for the propo-
sition that in the area of commercial speech “the State
cannot totally prohibit the dissemination of truthful in-
formation about a lawful activity.” App. G at 46a.

The court rejected the contention that Oklahoma’s
power to regulate liquor under the Twenty-first Amend-
ment superseded the requirements of the First Amend-
ment. /d. at 45a-46a. The court also found that the
liquor advertising ban failed to satisfy the requirements
of Central Hudson Gas & Electric Corp. v. Public Service
Commission, 447 U.S. 557 (1980), because it had been
shown to serve only remotely and ineffectively, if at all,

'2 On the same date, the district court awarded summary judg-
ment and injunctive relief to a group of Oklahoma broadcast tele-
vision stations that had brought a separate lawsuit challenging on
First Amendment grounds the state’s prohibition of their broad-
cast of wine commercials as part of their carriage of national net-
work programming. Oklahoma Telecasters Association v. Crisp,
No. Civ-81-439-W (W.D. Okla. December 18, 1981), rev'd, 699 F.2d

490 (10th Cir. 1983).
'S The February 10 opinion replaced an opinion filed with the

original orders. As the court of appeals noted, the opinions were
“nearly identical.”’ 699 F.2d at 493, App. A at 5a.

9

‘ the state’s asserted interests in temperance and dis-
couragement of alcohol abuse. Jw. at 48a. The court
pointed out that enforcement of the ban against peti-
tioners would:merely prohibit them “from disseminating
advertisements of something the public already knows
from experience and from reading [out-of-state] news-
paper and magazine advertising—that alcoholic bever-
ages exist and are for sale at certain prices.” Jd. at
45a. The court also concluded that the ban was con-
trary to the Court’s holding in Central Hudson because
there existed alternative measures, such as educational
programs, that could combat alcohol abuse more directly
and effectively without infringement on First Amend-
ment interests. Jd. at 48a-49a.

Finally, the court found that enforcement of the Okla-
homa laws against petitioners would effectively preclude
them from carrying any out-of-state broadcast signals,
since they are prevented by federal law from deleting
the commercials, id. at 38a, and since “there exists no
feasible way for [the operators] to block out the adver-
tisements.” Jd. at 41a."'

The Decision Below

On appeal, the Tenth Circuit reversed. holding that
enforcement of the Oklahoma liquor advertising ban
against petitioners did not violate the First Amend-
ment.'*

The court of appeals concurred with the district
court’s conclusion that the wine advertisements carried
by the cable operators concerned lawful activity, were

'* The court did not reach petitioners’ other constitutiona’ claims.
App. G at 39a-40a.

'S Petitioners’ other constitutional claims were not addressed by
the court of appeals. 699 F.2d at 493 n.1, App. A at da.

At the same time and with the same opinion, the court also re-
versed the district court's judgment for the broadcast plaintiffs in
Oklahoma Telecasters Association v. Crisp, No. 82-1058, which had
been consolidated with the cable operators’ case for purposes of
appeal.

10

not false or misleading, and therefore were “protected
speech under the First Amendment.” 699 F.2d at 500,
App. A at 20a. Nevertheless, the Tenth Circuit sus-
tained the ban, holding that this result was compelled
by this Court’s summary dismissal of the appeal in
Qreensgate Investment Co. v. Liquor Control Commis-
scon, 103 S.Ct. 31 (1982), decided after the district
court’s decision. Queensgate involved an appeal from a
decision by the Ohio Supreme Court " that sustained as
constitutional that state’s partial ban on off-premises
advertising of liquor prices by certain holders of liquor
permits. Although the Tenth Circuit recognized that
the Oklahoma restrictions ‘‘are indeed broader than the
regulation in Queensgate,” 699 F.2d at 497, App. A at
15a, it concluded that this Court’s dismissal of the
Queensgate appeal “mandate[d]” reversal of the district
court decision. 699 F.2d at 502, App. A at 24a.

In addition to relying on Queensgate, the Tenth Cir-
cuit held that the Oklahoma ban should be sustained
because of “the additional deference owed to the legisla-
ture as a result of the Twenty-first Amendment.” 699
F.2d at 501, App. A at 22a. The court therefore did not
require the state to justify its infringement of First
Amendment rights by the usual stringent standard and
upheld the Oklahoma restrictions after finding them “rea-
sonably related to reducing the sale and consumption of
[alcoholic] beverages and their attendant problems,” 699
F.2d at 501, App. A at 22a, and “no more extensive than
is necessary to serve Oklahoma’s asserted interest.” 699
F.2d at 502, App. A at 24a.

Although the court noted that cable television opera-
tors were precluded by federal law from deleting out-of-
state wine commercials from the programming they
carry, 699 F.2d at 492, App. A at 4a, and that they
“especially are placed in a difficult position” by the
liquor advertising ban, 699 F.2d at 502, App. A at 23a,

'6 Queensgate Investment Co. v. Liquor Control Commission, 433
N.E.2d 138 (Ohio 1982).

11

the court did not explain how the state. consistent with
the First Amendment, could effectively prohibit the car-
riage of out-of-state programming. Nor did the court
indicate how cable programming could be distinguished
in this respect from magazines and newspapers, which
may be distributed in Oklahoma even though they con-
tain liquor advertisements.

On March 21, 1983, the Tenth Circuit denied a peti-
tion for rehearing, Appendix B, and on April 4, 1983,
under Rule 41(b) of the Federal Rules of Appellate
Procedure, the court stayed its mandate for 30 days
pending the filing of this petition. Appendix C.,

REASONS FOR GRANTING THE WRIT 4

This case presents important First Amendment issues
meriting this Court’s review. The Tenth Circuit’s deci-
sion, if not reversed, would permit the kind of sweeping
ban on commercial speech that decisions of this Court
have repeatedly condemned. The decision would also
countenance an unprecedented state restriction on the
press and on the interstate flow of information and
ideas since the regulation at issue would effectively
prevent cable television operators from carrying out-of-
state advertiser-supported programming into Oklahoma.

I. THE COURT BELOW HAS DECIDED AN IMPOR-
TANT CONSTITUTIONAL QUESTION CONCERN.
ING THE PROTECTION OF COMMERCIAL
SPEECH IN CONFLICT WITH DECISIONS OF
THIS COURT AND CONTRARY TO THE OPINION
OF ANOTHER CIRCUIT.

A. The Decision of the Court Below Upholds a Sweep-
ing Ban On Truthful Advertising of a Lawful
Product in Conflict With Decisions of This Court.

In upholding Oklahoma’s ban on the advertising of
alcoholic beverages, the decision below js in direct conflict
with decisions of this Court holding that the First

Amendment bars states from prohibiting the dissemina-
tion of truthful, non-misleading information about a law-
ful product."

While at one time decisions of this Court suggested
that commercial speech was not constitutionally pro-
tected,’* the Court has repeatedly held over the last decade
that truthful advertising related to lawful products and ac-
tivities is protected by the First Amendment.'’ It has em-
phasized the societal benefits in preserving a free flow
of commercial information about goods and services, and
has forcefully repudiated the ‘paternalistic’? approach,”
adopted below by the Tenth Circuit, that would permit
states to protect their citizens against perceived dangers
of lawfully available products by banning the dissemina-
tion of information about those products.*!

Contrary to the decision below, this Court in recent
years “has not approved a blanket ban on commercial
speech unless the expression itself was flawed in some
way, either because it was deceptive or related to un-
lawful activity.” Central Hudson Gas & Electric Corp.
v. Public Service Commission, 447 U.S. 557, 566 n.9
(1980). It has struck down as unconstitutional prohibi-
tions on advertising by lawyers, Bates v. State Bar of

1T See, e.g., Metromedia, Inc. v. City of San Diego, 453 U.S. 490.
505 (1981); Central Hudson Gas & Electric Corp. v. Public Service
Commission, 447 U.S. 557, 570-72 (1980); id. at 573-79 (Black-
mun, J., concurring in judgment); Bates v. State Bar of Arizona,
433 U.S. 350 (1977); Carey v. Population Services International,
431 U.S. 678, 700-02 (1977); Virginia State Board of Pharmacy
v. Virginia Citizens Consumer Council, 425 U.S. 748, 773 (1976):
Bigelow v. Virginia, 421 U.S. 809 (1975).

18 See, e.g., Valentine v. Chrestensen, 316 U.S. 52 (19§
19 See, e.g., In re R.M.J., 455 U.S. 191, 199 (1982).
2° Virginia State Board of Pharmacy, 425 U.S. at 770.

“1 See Central Hudson, 447 U.S. at 561; Bates, 483 U.S. at 264:
Virginia State Board of Pharmacy, 425 U.S. at 765.

13

Arizona, 433 U.S. 350 (1977);** on price advertising
by pharmacists, Virginia State Board of Pharmacy v.
Virginia Citizens Consumer Council, 425 U.S. 748
(1976) ; on the advertising of abortion services, Bigelow
v. Virginia, 421 U.S. 807 (1975); on the advertising of
contraceptives, Carey v. Population Services Interna-
tional, 431 U.S. 678 (1977); and on promotional] adver-
tising by utilities, Central Hudson Gas & Electric Corp.
v. Public Services Commission, 447 U.S. 557 (1980).
As stated most recently in the plurality opinion in
Metromedia, Inc. v. City of San Diego, 450 U-S. 490,
505 (1981):

“A State may not completely suppress the dissemi-
nation of truthful information about an entirely
lawful activity merely because it is fearful of that
information’s effect upon its disseminators and its
recipients,” *

The restriction on commercial] speech upheld by the
Tenth Circuit is precisely the sort of restriction this
Court has repeatedly condemned. Oklahoma’s liquor ad-
vertising ban is plainly not directed, or even claimed to
be directed, at commercia] speech that is false, deceptive
or misleading.** Nor does the restricted commercial
speech promote an unlawful product or activity; the sale
and the consumption of liquor and wine are lawful in
Oklahoma. The acknowledged purpose of the restriction is
to discourage liquor sales and consumption by restricting
the flow of commercial information about liquor to the
citizens of the state, 699 F.2d at 500. App. A at 20a—in
other words, to enforce the kind of “protection based .. .

** See also In re R.M.J., supra (holding unconstitutional various
restrictions on the content of lawyers’ advertising).

“3 See also Carey v. Population Services, Inc., 431 U.S. at 700;
Virginia State Board of Pharmacy, 425 U.S. at 774.

“4699 F.2d at 500 n.8, App. A at 20a n.8. Both the district court
and the court of appeals agreed that the specific advertisements at
issue here—the out-of-state wine commercials—are truthful and
non-misleading. 699 F.2d at 500, App. A at 20a; App. G at 47a.

14

on public ignorance,” Virginia State Board of Pharmacy,
425 U.S. at 769, that this Court has forcefully rejected.”

This Court’s summary dismissal of the appeal in
Queensgate Investment Co. v. Liquor Control Commis-
sion, 103 8. Ct. 31 (1982), a decision relied on heavily by
the Tenth Circuit below, is not to the contrary and is
clearly distinguishable from the present case. This Court
has emphasized that its summary dispositions should be
narrowly interpreted to extend only to “the precise issues
presented and necessarily decided . . . [and] should not
be understood as breaking new ground.” Mandel v. Brad-
ley, 482 U.S. 173, 176 (1977). The Ohio regulation up-
held in Queensgate forbade certain liquor permit holders
from advertising off-premises the price of liquor per
drink or per bottle and from comparing their retail prices
to those of their competitors. See Queensgate Investment
Co. v. Liquor Control Commission, 4833 N.E. 2d 135, 139
n.l (Ohio 1982). The permit holders were allowed, how-
ever, to advertise in any medium any other information
about alcoholic beverages, including prices in the original
containers, and manufacturers and distributors of alco-
holic beverages were permitted to advertise their prod-
ucts without restriction. This is a far ery from Okla-
homa’s sweeping ban on liquor advertising, which even
the Tenth Circuit recognized to be “indeed broader than

** As the district court found, the fostering of public ignorance
in this area is contrary to the purposes of the First Amendment.
App. G at 49a-50a. By informing consumers of the availability
and nature of a lawful product, the wine commercials at issue here
aid “the allocation of resources in a free enterprise system.” Bates
v. State Bar of Arizona, 433 U.S. at 364. In addition. just as the
utility advertising for electrical products protected by this Court
in Central Hudson could have the effect of promoting energy con-
servation by offering an alternative to less energy-efficient products,
447 U.S. at 570, so here, by presenting an alternative to hard liquor
and spirits, wine commercials can promote moderation in the con-
sumption of alcohol. See, e.g., C. Burck, Changing Habits in Ameri-
can Drinking, Fortune, October 1976, at 159-60. The dissemination
of such messages serves the interest of an informed public.

the regulation in Queensgate.” 699 F.2d at 497, App. A.
at 15a.*°

The Tenth Cireuit’s decision also conflicts with deci-
sions of this Court insofar as it holds that the First
Amendment provides lesser protection when a state seeks
to restrict liquor advertising under regulatory power con-
ferred by the Twenty-first Amendment. 699 F.2d at 498,
901-02, App. A at 15a-17a, 22a, 24a. This Court has
emphasized that the Twenty-first Amendment does not
alter the standard of review under the First Amendment
or other constitutional provisions protecting individual
rights. See Larkin v. Grendel’s Den, Inc., 51 U.S.L.W.
4025, 4027 n.5 (U.S. December 13, 1982) (“The state
may not exercise its power under the Twenty-first
Amendment in a way which impinges upon the Establish-
ment Clause of the First Amendment”); Craig v. Boren,
429 U.S. 190, 209 (1976) (the Twenty-first Amendment
“does not alter the application of equal protection stand-
ards that otherwise govern this case’) : Wisconsin v. Con-

“° The regulation approved in Queensgate involved only a re-
striction on advertising by the holders of liquor permits, and this
Court has made clear that a state’s power to impose conditions on
the granting of liquor permits is greater than its power generally
to regulate First Amendment activity. See Craig v. Boren, 429
U.S. 190, 209 (1976); California v. LaRue, 409 U-S. 109, 118
(1972) (“The critical fact is that California has not forbidden
these performances across the board {| but] has merely proscribed
‘them] to establishments that it licenses to sell liquor by the
drink’). See also New York State Liquor Authority v. Bellanca.
452 U.S. 714, 715 (1981). In this case, on the other hand, Okla-
homa seeks to enforce its liquor advertising ban directly against
the press. This Court held in Bigelow v. Virginia, 421 U.S. 809,
828 (1975), that a ban on advertising “incur[s] more serious First
Amendment overtones” when applied against the press rather than
the advertiser. See also Lamar Outdoor Advertising, Inc. v. Mis-
sissippt State Tar Commission, 701 F.2d 314, 330, reh'g en banc
ordered (Sth Cir. 1983) (“| A|pplication of [an advertising ] reg-
ulation against liquor licensees raises different constitutional issues
than enforcement of « subject matter ban against publishers and
broadcasters”’).

16

stantineau, 400 U.S. 433, 486 (1971) (state’s power to
regulate liquor does not relax requirements of procedural
due process) .27

Finally, the decision below conflicts with this Court’s
assertion in Central Hudson Gas & Electric Corp. v.
Public Service Commission, 447 U.S. at 564, that even
a limited restriction on protected commercial speech
“may not be sustained if it provides only ineffective or re-
mote support for the government’s purpose ... [or] if
the governmental interest could be served as well by a
more limited restriction.” ** The record in this case con-
tains no evidence that liquor advertising, in particular
out-of-state commercials for brands of wine, contributes
directly to alcohol abuse, or that the suppression of such
commercials directly or effectively promotes temperance.
App. G at 48a." To the contrary, the district court found
that Oklahoma’s ban on such advertising serves the state’s
purposes in at most a remote, indirect and ineffective
fashion. App. G at 45a, 48a. The district court also
found that Oklahoma had failed to demonstrate the ab-
sence of alternative measures that could serve the goal of
temperance as directly or effectively as the advertising
ban without such adverse impact on First Amendment
rights. App. G at 48a-49a.

The Tenth Circuit’s decision in this case, if allowed to
stand, is likely to have the effect of encouraging other
“7 See also California Retail Liquor Dealers Ass'n v. Midcal
Aluminum, Inc., 445 U.S. 97, 108 (1980) (Twenty-first Amend-
ment does not “insulate” states from constitutional requirements).

“8 See also In re R.M.J., 455 U.S. at 203.

“" See also D. Pittman, Primary Prevention of Alcohol Abuse and
Alcoholism: An Evaluation of the Control of Consumption Policy
18 (Social Science Institute of Washington University, 1981)
(“[N]lo scientific evidence exists that beverage alcohol adver-
tising has any significant impact on the rate of alcohol abuse
and alcoholism in American society”); R. Wilkinson, The Preven-
tion of Drinking Problems 43-48, 132, 157 (1970).

17

states to adopt restrictions on the Oklahoma model. The
questions presented are thus of substantial importance.

B. The Decision of the Court Below Is Contrary to
the Opinion of Another Circuit.

The decision below is directly contrary to a recent
opinion of a panel of the Fifth Circuit declaring a similar
state ban on liquor advertising to be an unconstitutional
infringement on commercial speech.” At issue was a
Mississippi statute prohibiting liquor advertisements that
originated within the state. The Fifth Circuit panel con-
cluded that the statutory ban violated the First Amend-
ment.

In doing so, the panel expressly rejected both the result
reached by the Tenth Circuit in this case and the reason-
ing it employed. The panel found inapplicable the Su-
preme Court’s summary dismissal of the appeal in
Queensgate Investment Co. v. Liquor Control Commis-
sion, 103 S. Ct. 31 (1982), and specifically rejected the
interpretation placed on Queensgate by the Tenth Cir-
cuit.*' The panel also concluded, contrary to the Tenth
Circuit, that the state’s authority under the Twenty-first
Amendment did not change the standard of review under
the First Amendment. And the panel found that Mis-
sissippi’s ban on liquor advertising did not effectively pro-
mote the state’s interest in controlling liquor consump-
tion, relying principally on the fact that liquor commer-
cials continued to enter the state through magazines and
newspapers published outside Mississippi and through
radio and television signals received directly by Missis-

*” Lamar Outdoor Advertising, Inc. v. Mississippi State Tax Com-
mission, 701 F.2d 314, reh'g en bane ordered (5th Cir. March 11,
1983). See also Dunagin v. City of Oxford, 701 F.2d 335, reh’g en
bane ordered (5th Cir. March 11, 1983) (applying and following
Lamar).

"1 See Lamar, 701 F.2d at 331 n.23.

*2 Id. at 329-330.

18

sippi residents from stations outside the state.** A simi-
lar situation exists in Oklahoma, as found by the district
court in the present case. App. G at 45a, 48a.

There is thus a clear inconsistency between the decision
of the Tenth Circuit and the opinion of the Fifth Circuit
panel. These important issues warrant review by this
Court."

Il. THE COURT BELOW HAS DECIDED AN IMPOR-
TANT CONSTITUTIONAL QUESTION CONCERN-
ING THE PROTECTION OF NONCOMMERCIAL
SPEECH IN CONFLICT WITH DECISIONS OF

THIS COURT.

This case is also important because it is the first case
to come before this Court involving the power of the
states under the First Amendment to regulate the content
of cable television programming. As the number of cable
subscribing households has grown from 2.8 million in
1968 to more than 31 million today,” state and local gov-
ernments have increasingly sought to play a role in the

“Id. at 332-33. “When a state seeks to impose such a severe

ban upon protected commercial speech, it must at least show that
its law does some good.” Jd. at 333.

‘' Recognizing that their decisions produced a conflict between
the circuits, the Fifth Circuit ordered rehearing en banc. Lamar,
701 F.2d at 316; Dunagin, 701 F.2d at 336. Under the rules of the
Fifth Circuit, the effect of this action was to vacate the panel
opinions and judgments. Vacation of the opinions does not neces-
sarily deprive them of persuasive authority, both within the Fifth
Circuit and without. See, e.g., Straus Communications, Inc. v.
FCC, 530 F.2d 1001, 1008 n.16 (D.C. Cir. 1976) (citing National
Broadcasting Co., Inc. v. FCC, 516 F.2d 1101, vacated, 516 F.2d
1180 (1D.C. Cir. 1974), cert. denied, 424 U.S. 910 (1976) ).

* See Cable & Station Coverage Atlas 18a (1982); Multi-
cl.annel News, March 28, 1983, at 3. The current figure represents
more than 37 percent of the nation’s television households. Jd.

19

regulation of cable program content. Such regulation
raises vital First Amendment questions deeply affecting
this increasingly important medium of communication.

The regulation at issue here would impose a_partic-
ularly grave burden on the First Amendment rights of
cable television operators and subscribers. The record in
this case shows, and both the district court and the court
of appeals found, that prohibition of petitioners’ carriage
of out-of-state wine commercials will effectively preclude
petitioners from distributing not only those commercials,
but the entire programming of out-of-state television
signals, including news programs, editorials. documenta-
ries, entertainment, and other expressions of ideas and
information.**

As discussed above, the carriage of such programming
will be effectively foreclosed because petitioners are pre-
vented by federal law and by overwhelming technical and
economic obstacles from deleting the wine commercials
that are contained in the programming.” It is for these
reasons that the district court found that petitioners’ only
“feasible” alternative, App. G at 39a, would be to drop
entirely their carriage of out-of-state broadcast television
programming. In fact, for some cable operators the only
feasible alternative will be to cease operations entirely,
since failure to carry out-of-state television signals will
place them in violation of the Federal Communications
Commission’s “‘must-carry” rules. 47 C.F.R. $ 76.57-.61.
Other systems, no longer able to offer out-of-state broad-
cast signals, will lose subscriptions as a result and suffer
severe, in some cases fatal, economic losses. App. G at
42a; II R. 34-35." Although it does not appear in the

6 699 F.2d at 492, App. A at 4a: App. G at 4la.
*7 See pages 5-6, supra.

“* The state’s imposition of such a debilitating economic burden
on cable operators in itself raises important First Amendment

20

record, petitioners would also be effectively compelled to
cease carrying national cable programming services con-
taining wine commercials, such as the Cable News Net-
work and the USA Network.”

There can be no doubt that cable television—like news-
papers, broadcast television, and motion pictures 4__is
today “a significant medium for the communication of
ideas . . . included within the free speech and free press
guaranty of the First and Fourteenth Amendments.”
Joseph Burstyn, Ine. &. Wilson, 343 U.S. 499, 501-02
concerns. Compare Pittsburgh Press Co. v. Pittsburgh Commis-
sion on Human Relations, 413 U.S. 376 (1973), in which this Court
upheld municipal regulations on the format of a newspaper's ad-
vertising columns only after determining that the regulations did
not “threate(n | |appellant’s | financial viability, - - - impai[r} in
any significant way its ability to publish and distribute its news-
paper,” or “endanger arguably protected speech.” Jd. at 383, 390.
Such threats to critical First Amendment interests are plainly
posed here. See also Grosjean v. American Press Co., 297 U.S. 233,
250 (1936), in which this Court held that a state tax on the adver-
tising revenue of newspapers having a circulation of 20,000 or
more violated the First Amendment because of its tendency “to
limit the circulation of information to which the public is entitled
in virtue of the constitutional guarantees.” And see Minneapolis
Star & Tribune Co. Uv. Minnesota Commissioner of Revenue, 51
U.S.L.W. 4315 (U.S. March 29, 1983) (state tax on publications’
use of paper and ink violates First Amendment).

30 While deletion of commercials from such national cable pro-
gramming services would not violate federal law, it would be in
violation of the cable operator’s contract with the service provider,
which customarily prohibits the removal of advertising. The pro-
viders of such programming also typically do not provide cable
operators with prior notice concerning the scheduling and nature
of commercials, so that the technical and economic impracticality
of attempting to delete the commercials is the same as in the case
of broadcast television signals. See pages 5-6, supra.

40 See Miami Herald Publishing (0. &- Tornillo, 418 U.S. 241
(1974) (newspaper publishers} ; Columbia Broadcasting System,
Inc. v. Democratic National Committee, 412 U.S. 94 (1973) (broad-

=o |

casters); Joseph Burstyn, Inc. ev. Wilson, 343 U.S. 495 (1992
(motion pictures).

21

(1952). Courts which have reached the issue have rec-
ognized that the First Amendment protects both the pro-
gramming carried by cable operators and the operators’
editorial function in selecting that programming. See, e.g.,
Midwest Video Corp. v. FCC, 571 F.2d 1025, 1053-57 (8th
Cir. 1978), aff'd on other grounds, 440 U.S. 689 (1979):
Home Box Office, Inc. v. FCC, 567 F.2d 9, 43-51 (D.C.
Cir.), cert. denied, 484 U.S. 829 (1977).4 While this
Court has not explicitly addressed the question of cable
operators’ First Amendment status, it has recognized
that cable operators exercise editorial discretion in choos-
ing signals and services. FCC v. Midwest Video Corp.,
440 U.S. 689, 707 (1979) ; Teleprompter Corp. v. Colum-
bia Broadcasting System, Inc., 415 U.S. 394, 410 11974)
(choice of broadcast signals by cable operators is a “crea-
tive function”’).

In exempting out-of-state publications from its liquor
advertising ban, the state of Oklahoma has apparently
recognized that it could not forbid the sale of the New
York Times and the Wall Street Journal within the state
because they contain wine advertising. Yet Oklahoma
seeks to enforce a similar ban against cable operators
who—like the Oklahoma distributors of the New York
Times and the Wall Street Journal—must either offer
the communication in its entirety, including wine adver-
tisements, or forgo its distribution. Such regulation re-
stricting the flow of information into the State is no less
unconstitutional applied to cable operators than it would

be if applied to newspaper distributors.

*! See also Community Communications Co. v. City of Boulder.
660 F.2d 1370, 1376 (10th Cir. 1981), petition for cert. dismissed
by agreement, 102 S. Ct. 2287 (1982). And see Comment, Access
to Cable Television: A Critique of the Affirmative Duty Theory of
the First Amendnrent, 70 Cal. L. Rev. 1393 (1982); Note, FCC
Regulation of Cable Television Content, 31 Rutgers L. Rev. 238
(1978); Note, Cable Television and the First Amendment, 71
Colum. L. Rev. 1008 (1971).

22

It is the fundamental] purpose of the First Amendment,
as applied to the states through the Fourteenth Amend-
ment, to protect from governmental interference the na-
tional ‘“‘free trade in ideas.” Abrams v. United States,
250 U.S. 616, 680 (1919) (Holmes, J., dissenting). To
this end, the amendment is designed to ensure that infor-
mation may flow freely across the country and that ideas
originating in New York and New England may be made
available to the citizens of Oklahoma and Mississippi.
For an individual state to ban entirely an out-of-state
communication because it contains objectionable advertis-
ing, when that advertising is neither misleading nor de-
signed to encourage the consumption of an unlawful prod-
uct, strikes at the very heart of the national commerce in
ideas. No state, consistent with the First Amendment,
may erect such barriers to the free flow of ideas or so
“shield its citizens from information about activities out-
side [its] borders.” Bigelow v. Virginia, 421 U.S. at
827-28.** :

That the Oklahoma ban does not expressly forbid—and
is not intended to forbid—the importation of all out-of-
state signals does not rescue the regulation when so sub-
stantial an “effect on the exercise of First Amendment
rights arises ... as an unintended but inevitable result
of the government’s conduct.” Buckley v. Valeo, 424 US.
1, 65 (1976) (per curiam). See elso Elrod v. Burns, 427
U.S. 347, 362 (1976); Louisiana ex rel. Gremillion v.
NAACP, 366 U.S. 293, 297 (1961) 1 “[R]Jegulatory meas-
ures . . . cannot be employed in purpose or in effect to
stifle, penalize, or curb the exercise of First Amendment

§2 See also Board of Education v. Pico, 50 U.S.L.W. 4831, 4835
(U.S. June 25, 1982) (“‘| A] State may not, consistently with the
spirit of the First Amendment, contract the spectrum of available
knowledge’’’) (quoting Griswold v. Connecticut, 381 U.S. 479,
482 (1965) ); Epperson v. Arkansas, 393 U.S. 97 (1968): New York
Times v. Sullivan, 376 U.S. 254 (1964); Martin v. City of Struthers,
319 U.S. 141, 146-47 (1943).

23
rights”) (emphasis added); NAACP v. Alabama, 357
U.S. 449, 460-61 (1958).*

Nor is the regulation saved because it is directed at
commercial speech, even if the advertising in question
Were itself unprotected by the First Amendment.** The
decision below is directly contrary to decisions of. this
Court holding that a state may not prevent the dissemi-
nation of protected speech on the ground that it includes
some suppressible commercial material or activity. Thus,
in Jamison v. Texas, 318 U.S. 413 (1943), the Court re-
versed the conviction of a Jehovah’s Witness for distribut-
ing religious handbills that included an advertisement for a
religious publication. Noting that states then could gen-
erally “prohibit the use of the streets for the distribution
of purely commercial leaflets,” id. at 417. the Court
nevertheless held that ‘[t]he mere presence of an adver-
tisement” on a_handbill furthering religious activity
“may not subject the distribution of the handbill to pro-
hibition.” Jd. at 416.° In In re Primus, 486 U.S. 412

"= This Court has repeatedly struck down regulations that sub-
stantially restricted important avenues or media of expression,
notwithstanding that the purpose of the regulation was unrelated
to the content of the speech. See, ¢.y., Saia v. New York, 334 U.S.
998 (1948) (sound trucks): Martin v. City of Struthers, supra
(door-to-door solicitation) : Schneider rv. State, 308 U.S. 147 (1939)
(leafletting). See also Ely, Legislative and Administrative Moti-
vation in Constitutional Law, 79 Yale 1..J. 1205, 1335-36 (1970)
(“The state is obligated to protect the channels of communication,
even if it takes a special exception and some sacrifice of the state's
expression-unconnected interest”). And the Court has viewed with
particular alarm regulations that would have the effect. if not the
aim, of curtailing the press’ ability freely to disseminate informa-
tion of its choosing. See, e.4., Miami Herald Publishing Co. v.
Tornillo, 418 U.S. 241 (1974): Columbia Broadcasting System, Inc.
v. Democratic National Committee, 412 U.S. 94 (1973); New York
Times v. Sullivan, 376 U.S. 254 (1964): Grosjean v. American Press
Co., 297 US. 238 (1936).

*4 But see Section I, supra.
"See also Murdock v. Pennsylvania, 319 U.S. 105 (1943). Com-
v. Chrestensen, 316 U.S. 52 (1942), in which this

pare Valentine
{ Footnote continued }

24

(1978), the Court held that a ban on in-person solicita-
tion by lawyers—generally a permissible restraint on
commercial speech *°—could not be applied to solicitation
by a lawyer for the American Civil Liberties Union be-
cause it threatened the effectiveness of the ACLU “as a
vehicle for effective political expression and association,”
id. at 431, and thus implicated not only commercial speech
but also “core First Amendment rights.” Jd.”

If allowed to stand, the Tenth Circuit’s decision in this
case will permit the state of Oklahoma to severely abridge
First Amendment rights by restricting the flow of ideas
and information into the state and by curtailing the abil-
ity of cable operators to select the programming they
carry. The case is of great importance to the future of
cable television, an increasingly vital medium in the dis-
semination of news and information in this country.
And here, as in Bigelow v. Virginia, 421 U.S. 809 (1975):

“If application of this statute were upheld under
these circumstances, [the state] might exert the
power sought here over a wide variety of national
publications or interstate newspapers carrying ad-
vertisements similar to the one [fat issue]

Court held that a distributor of handbills composed primarily of
commercial advertising could not escape a municipal ban on com-
mercial leafletting by affixing a civic protest to the advertising
“with the intent, and for the purpose, of evading the prohibition.”
Id. at 55. There can, of course, be no suggestion in this case that
the cable operators carry protected programming in addition to
wine commercials in an effort to avoid Oklahoma's ban on liquor
advertising.

**® See Ohralik v. Ohio State Bar Ass'n, 486 U.S. 447 (1978).

*? Similarly, this Court has struck down state regulations aimed
at unprotected obscenity or libel when their impact would extend
more broadly to restrict the dissemination of protected ideas.
See, e.g., New York Times Co. v. Sullivan, 376 U.S. 254. 278-79
(1964); Smith ». California, 361 U.S. 147, 151 . 1959); Stanley
r. treorgia, 394 U.S. 557 (1969). See also Butler +. Michigan, 352
U.S. 380 (1957).

25

Other States might do the same. The burdens
thereby imposed on publications would impair, per-
haps severely, their proper functioning.” Jd. at
828-29 (tootnotes omitted).

These critical questions require review by this Court.

CONCLUSION
For the reasons stated above, a writ of certiorari
should be granted to review the judgment of the United
States Court of Appeals for the Tenth Circuit.

J ar

respectfully submitted,

Of Counsel: TIMOTHY B. DyK *

CLYDE A. MUCHMORE JOHN W. ZUCKER
CROWE & DUNLEVY WILMER, CUTLER & PICKERING
1800 Mid-America Tower 1666 kK Street, NM we
20 North Broadwav Washington, D.C. 20006

i ae : In9 77>.
Oklahoma City,OK 73102 —-(292) 872-6000
Counsel for Petitioner
Capital Cities Cable, Inc.

JOHN D. MATTHEWS *

DAVID P. FLEMING

J. CHRISTOPHER REDDING
Dow, LOHNES & ALBERTSON
1225 Connecticut Ave., N.W.
Washington, D.C. 20036
(202) 862-8079

Counsel for Petitioners Cor
Cahle of Oklahoma City, Inc. :
Multimedia Cablevision, Inc.:
and Sammons Communica-

tions, Tne.

May 3, 1983 * Counsel of Record

APPENDICES

TABLE OF CONTENTS

APPENDIX A

Opinion of the United States Court of Appeals for

the Tenth Circuit, Januarv 24, 1983

APPENDIX B

Order of the United States Court of Appeals for

the Tenth Circuit Denying Petition for Rehearing,
te 8 Oe

APPENDIX C
Order of the United States Court of Appeals for
the Tenth Circuit Granting Motion for Stay of
more. An © 19.

APPENDIX D
Findings and Order of the United States District
Court for the Western District of Oklahoma Grant-
ing Motion for Preliminary Injunction, March 19,
cig, SE EOE

APPENDIX E
Order of the United States District Court for the
Western District of Oklahoma (Declaratory Judg-
ment), December 16, 61...

APPENDIX F

Order of the United States District Court for the
Western District of Oklahoma (Permanent Injunc-
tion), December 18,198]... OE: na Nt

APPENDIX G
Opinion of the United States District Court for
the Western District of Oklahoma on Summary
Judgment, February 10,1982...

APPENDIX H

Constitutional Provisions, Statutes. and Regula-
Goms Involved .......

Page

26a

28a

3la

34a

Sla

la

APPENDIX A

UNITED STATES COURT OF APPEALS
TENTH CIRCUIT

Nos. 82-1058, 82-1061

OKLAHOMA TELECASTERS ASSOCIATION, an unincorporated
association; COMBINED COMMUNICATIONS CORPORA-
TION OF OKLAHOMA, INC., an Oklahoma corporation;
GRIFFIN TELEVISION, INC., an Oklahoma corporation;
KTVY, INc., an Oklahoma corporation: KTUL-TV,
INc., an Oklahoma corporation; KOTV, INc.. an Ok-
lahoma corporation; ScRIPPS-HOWARD BROADCASTING
Co., an Ohio corporation; GOLDEN WEST BROADCAST-
ERS OF OKLAHOMA, INC., an Oklahoma corporation ;
BLAIR BROADCASTING OF OKLAHOMA, INC., an Okla-
homa corporation; EASTERN OKLAHOMA TELEVISION
Co., INC., an Oklahoma corporation; SERAPHIM CORP.,
an Oklahoma corporation; KOKI-TV. an Oklahoma
partnership; and TuLsa TV 41, a joint venture,

Plaintiffs-A ppellees,

v.

RICHARD A. CRISP, Director,
Alcoholic Beverage Control Board.
Defendant-A ppellant.

CABLECOM-GENERAL, INC.: Cox CABLE OF OKLAHOMA
CITY, INC.; MULTIMEDIA CABLEVISION, INC.: and
SAMMONS COMMUNICATIONS, INC..

Plainti ffs-A ppellees,
¥,

RICHARD A. CRISP, Director,
Alcoholic Beverage Control Board.
Defendant-A ppellant.

Jan. 24, 1983

2a

Robert D. Nelon, Oklahoma City, Okl. (Roy J. Davis,
L. Gene Gist and Nancy M. Thompson, Oklahoma City,
Okl., with him on the brief), of Andrews Davis Legg
Bixler Milsten & Murrah, Oklahoma City, Okl., for plain-
tiffs-appellees Oklahoma Telecasters Ass’n, et al.

Clyde A. Muchmore, Oklahoma City, Okl. (Richard C.
Ford, Oklahoma City, Okl., with him on the brief), of
Crowe & Dunlevy, Oklahoma City, Okl., for Cablecom-
General, Inc. (John D. Matthews, David P. Fleming
and J. Christopher Redding of Dow, Lohnes & Albert-
son, Washington, D.C., for Cox Cable of Oklahoma City,
Inc., Multimedia Cablevision, Inc., and Sammons Com-
munications, Inc., with them on the brief), in No. 82-1061.

Gary W. Gardenhire, Asst. Atty. Gen., Okl., Oklahoma
City, Okl. (Jan Erie Cartwright, Atty. Gen. of Okl., Ok-
lahoma City, Okl.), for defendant-appellant.

Jerry D. Sokolosky, Oklahoma City, Okl., filed an
amicus curiae brief for Oklahoma Press Ass’n and Out-
door Advertising Ass’n of Okl.

Larry Derryberry of Derryberry Duncan & Gray, Ok-
lahoma City, Okl., filed an amicus curiae brief for
S.A.N.E., Inc.

Bill Allain, Atty. Gen. of Miss., and Peter M. Stockett.
Asst. Atty. Gen. of Miss., Jackson. Miss. (W. Timothy

Jones and John E. Milner of Brunini. renten. Grower
& Hewes, Jackson, Miss.. of counsel), filed an amicus

curiae brief for the State of Miss.

Before BARRETT, McKAY and LOGAN, Circuit
Judges.

BARRETT, Circuit Judge.

Richard A. Crisp (Crisp) appeals from two summary
judgments declaring that certain provisions of Okla-

8a

homa’s constitution and statutes violate the First and
Fourteenth Amendments of the United States Constitu-
tion. The appeals were consolidated pursuant to Fed.R.
App.P. 3(b).

Appellee in No. 82-1058, Oklahoma Telecasters Asso-
ciation (Telecasters:, is an unincorporated association of
corporations and partnerships engaged in the business of
television broadcasting in the State of Oklahoma. Appel-
lees in No. 82-1061 are holders of cable television fran-
chises in the State of Oklahoma and will be referred to
as the “cable operators”. Appellant, Crisp, is the former
director of the Oklahoma Alcoholic Beverage Control
Board, an agency charged with primary responsibility
for the enforcement of Oklahoma laws regulating the
sale and consumption of alcoholic beverages.

The Oklahoma Constitution stringently restricts the
advertising of alcoholic beverages:

It shall be unlawful for any person, firm or cor-
poration to advertise the sale of alcoholic beverage
Within the State of Oklahoma, except one sign at the
retai! outlet bearing the words “Retail Alcoholic
Liquor Store.”’

Okla. Const. art. XXVII, $5. The Oklahoma Alcoholic
Beverage Contro] Act similarly prohibits the advertising
of “alcoholic beverages or the sale of the same within
the State of Oklahoma,” except by strictly regulated on-
premises signs. Okla.Stat. Ann. tit. 37, $516 (West
Supp.1982). That act defines “alcoholic beverage” as
“alcohol, spirits, beer, and wine. . . .” Okla.Stat. Ann.
tit. 37, $ 50612) (West Supp. 1982). The definition of
“beer” only includes beverages “containing more than
three and two-tenths percent (3.2%) of alcohol by
weight. . . .” Okla.Stat.Ann. tit. 37, §506(3) (West
Supp.1982). Since beer can contain 3.2% alcohol or
less, the advertising of beer venerally is allowed. The ad-

4a

vertising of wine and other alcoholic beverages within
the state, however, is prohibited.

The members of Telecasters rebroadcast network pro-
gramming that includes advertisements for wine. Al-
though such advertising is lawful where it originates,
and in most states where rebroadcast occurs, the mem-
bers of Telecasters are required to “block out” network
advertising of wine. If Telecasters’ members fail to do
so, or if they solicit or accept advertisements for alco-
holic beverages, they are subject to criminal prosecution
by complaint of the Alcoholic Beverage Control Board.

The cable operators also are prohibited from soliciting
or accepting advertising for alcoholic beverages. For
many years, however, the cable operators have been al-
lowed to relay programming from out-of-state television
Stations that included advertisements for wine. In fact,
Federal Communication Commission regulations and fed-
eral copyright law prohibit cable operators from alter-
ing or modifying the television signals, including adver-
tisements, they relay to subscribers. See 17 U.S.C. $111
(ec! (3) (1976) and 47 C.F.R. $ 76.55(b) (1981). De-
spite those federal requirements, the Attorney General of
the state of Oklahoma on May 19, 1980, issued an opin-
ion declaring that the prohibitions against alcoholic bev-
erage advertising apply to cable television in the same
manner as they apply to broadcast television. Pursuant
to that opinion, Crisp notified the cable operators that
the wine commercials they had been relaying were il-
legal, and threatened the operators with criminal prose-
cution if they continued to relay such commercials.

Telecasters and the cable operators filed separate suits
against Crisp, in his official capacity, in the United
States District Court for the Western District of Okla-
homa. Pursuant to 28 U.S.C. § 2201 (Supp. IV 1980),
both plaintiffs asked the court to render a declaratory
judgment that Oklahoma’s laws, Okla. Const., art.
XXVII, $ 5, and Okla.Stat.Ann. tit. 37, § 516, supra, vio-

a

da

‘ated their rights to free speech, guaranteed by the First
and Fourteenth Amendments, and equal protection, guar-
anteed by the Fourteenth Amendment.' In addition, the
cable operators requested and received a preliminary in-
junction, and both plaintiffs sought permanent injunc-
tions, prohibiting Crisp from enforcing the constitutional
and statutory prohibitions against them.

Both the cable operators and Telecasters filed mo-
tions for summary judgment under Fed.R.Civ.P. 56.
Crisp filed motions to dismiss pursuant to Fed.R.Civ.P.
12/b) 16). On December 18, 1981, the district court filed
nearly identical memorandum opinions and orders in the
two cases, granting Telecasters’ and the cable operators’
motions for summary judgment, and denying Crisp’s
motions to dismiss.

In both opinions the district court ruled that the
power to regulate liquor granted to the states by the
Twenty-first Amendment to the United States Constitu-
tion did not override the First Amendment rights of Tele-
casters and the cable operators. The court then applied
the four part analysis the Supreme Court prescribed in
Centra! Hudson Gas and Blectric Corp. v. Public Service
Commission, 447 U.S. 557, 100 S.Ct. 2343. 65 L.Ed.2d
341 (1980), for determining the validity of the regula-
tion of “commercial speech”. That analysis can be sum-
marized as follows: (1) is the commercial speech pro-
tected by the First Amendment: that is, does it con-
cern lawful activity and is it not misleading; (2) is the
asserted governmental interest substantial: (3) does
the regulation directly advance the governmental inter-
est asserted: (4) is the regulation more extensive than

' The equal protection claim was based on the inconsistency be-
tween the treatment of the broadcast versus the printed media:
newspapers and magazines published outside of Oklahoma. but cir-
culated within the state, are permitted to carry advertisements of
alcoholic beverages. The trial court did not reach the issue of equal
protection and it is not before us in these appeals.

6a

is necessary to serve the governmental interest? Jd. at
566, 100 S.Ct. at 2351.

The district court concluded that Oklahoma's laws
only indirectly advanced the stated governmental inter-
est in reducing alcohol consumption and its related prob-
lems, and were more extensive than necessary to serve
that interest. The court therefore entered declaratory
judgments stating that enforcement of the advertising
does or would violate the plaintiffs’ First Amendment
rights, as guaranteed by the Fourteenth Amendment.
The court also entered permanent injunctions against
Crisp, preventing him, or the Alcoholic Beverage Con-
trol Board, from enforcing the laws against the plaintiffs.

On January 11, 1982, Crisp timely filed a notice of ap-
peal with this court. On February 10, 1982, the district
court entered an order withdrawing its December 18,
1981, opinions, and filed nune pro tune memorandum
opinions in lieu thereof, supplementing and amplifying
its views with respect to the granting of summary judg-
ments. The substituted opinions did not alter the court’s
reasoning or conclusions in any material way; the De-
cember and February opinions are nearly identical.
Crisp moved to strike the substituted opinions. The dis-
trict court overruled the motion in Cablecom, but en-
tered no order in Telecasters,

Crisp then moved the trial court to stay the permanent
injunctions pursuant to Fed.R.Civ.P. 62(c). The trial
court denied the motion on May 19, 1982. On October 4.
1982, the Supreme Court dismissed for want of a sub-
stantial federal question the appeal in Queensgate In-
restment Co. v. Liquor Control Commission. US.
——, 103 S.Ct. 31, 74 L.Ed.2d 45 (1982). In that case
the Ohio Supreme Court had upheld against a First
Amendment challenge a state regulation which prohibited
retail liquor permit holders from advertising the retail
price of alcoholic beverages.

~
(a

Based on the Queensgate dismissal, Crisp on Novem-
ber 4, 1982, again moved the district court to suspend
the injunctions under Fed.R.Civ.P. 62(¢c!}. The district
court was unable to hear the motions prior to November
15, when the appeals were scheduled for oral argument.
On November 9, therefore, Crisp applied to this court
under Fed.R.App.P. 8(a) for an order suspending the
injunctions during the pendency of the appeals. At the
commencement of oral argument on November 15, 1982,
we denied that application.

In his briefs, Crisp raises numerous contentions of
error, including the propriety of the trial court’s sum-
mary judgments and nunc pro tune opinions, the denial
of Crisp’s request for a hearing on his motion to stay
the injunctions, and the trial court’s application of the
Central Hudson analysis. At oral argument, however,
Crisp emphasized the importance of the Queensgate dis-
missal. We agree that the application of that case is the
critical issue in this appeal. Thus, we will first address
that issue.

i

In Queensgate Investment Co. v. Liquor Control Com-
mission, 69 Ohio St.2d 361, 433 N.E.2d 138 (1982), the
appellant, Queensgate Investment Co. ‘ Queensgate), was
a holder of an Ohio liquor permit who was prosecuted for
the violation of certain regulations of the Ohio Liquor -
Control Commission. The regulations in question pro-
hibited off-premises price advertising by holders of cer-
tain liquor permits. The Commission rendered an order

~The regulations provided, in pertinent part:

No alcoholic beverages shall be advertised in Ohio except in
the manner set forth in 4301:1-1-03 and as hereinafter pro-
vided.

(A) As to advertising on the premises, holders of Class C,
1D), and G permits shall not advertise the price per bottle or
drink of any alcoholic beverage, or in any manner refer to price

8a

suspending Queensgate’s license for one week for the vio-
lation of the regulation. Queensgate appealed on several
grounds, including a contention that the regulation was
an unconstitutional restraint on its First Amendment
right to engage in commercial speech.

The Ohio Supreme Court applied the analysis articu-
lated in Central Hudson, supra, and held that the regula-
tion did not violate the First Amendment. The court first
held that the speech was protected and that the asserted
governmental interest, that of Ciscouraging the excessive
consumption of alcoholic beverages, was substantial and
was well within the powers granted to the states under
the Twenty-first Amendment. The court then held that
since it was directed at controlling alcoholic beverages,
not speech, the regulation did directly advance the gov-
ernmental interest. Finally, the court held that the ad-
vertising of drink prices and price advantages would en-
courage the excessive consumption of alcoholic beverages ;
thus, the prohibition against such advertising was the
narrowest method available to prevent such excessive con-
sumption. Queensgate, supra at 69 Ohio St.2d 365-67, 433
N.E.2d 138.

or price advantage except within their premises and in a man-
ner not visible from the outside of said premises.

(B) Manufacturers and distributors of alcoholic beverages
are permitted to advertise their products in Ohio.

Holders of Class C, D, and G permits shall be authorized to
advertise in newspapers of general circulation, radio and tele-
vision, on bill boards, calendars, in or on public conveyances
and in regularly published magazines. Advertising may include
the retail price of the original container or packages, but such
advertising may not in any manner refer to price advantage.

Subsequent enactment of law by the 102nd Ohio General
Assembly prohibits the advertising of the retail price of beer
in any media. See page 6, Section 4301.211 of the Revised Code
of Ohio.

Ohio Adm. Code 4301:1-1-44. See Queensgate, supra at 69 Ohio
St.2d 361-62 n. 1, 433 N.E.2d 138.

9a

Queensgate filed a timely appeal in the United States
Supreme Court. The only issue it raised there was
whether the regulation violated the “First and Four-
teenth Amendments of the Constitution of the United
States by suppressing the public dissemination of truth-
ful information about a lawful activity.” Jurisdictional
Statement at I, Queensgate Investment Co. v. Liquor Con-
trol Commission, US. , 103 S.Ct. 31, 74 L.Ed.2d
45. The Liquor Control Commission filed with the Su-
preme Court a motion to dismiss the appeal on the ground
that the question was so unsubstantial as not to warrant
further argument. The basis for the motion was that an
advertising prohibition was well within the scope of a
State’s powers under the Twenty-first Amendment, which
permits a state to totally ban the sale of liquor, or other-
wise “minimize its evils’.

On October 4, 1982, the Supreme Court dismissed the
appeal “for want of a substantial federal] question.” *
Queensgate Investment Co. v. Liquor Control Com mission,
US. , 103 S.Ct. 31, 74 L.Ed.2d 45 (1982).
Thus, we must now determine what precedential weight
to ascribe to that dismissal in deciding the present appeal.

II,

The seminal case on the precedential effect of sum-
mary dispositions by the Supreme Court is Hicks ». Mi-
randa, 422 U.S. 332, 95 S.Ct. 2281, 45 L.Ed2a 223
(1975). In that case the Court was faced with the prob-
lem of the distinction between its appellate jurisdiction
and its certiorari jurisdiction. Under 28 U.S.C. $ 1257

* The rules of the Supreme Court require a jurisdictional state-
ment which includes “{a] statement of the reasons why the ques-
tions presented are so substantial as to require plenary considera-
tion, with briefs on the merits and oral argument, for their resolu-
tion.” Sup.Ct.R. 15(1)(h). Rule 16 allows the appellee to file a
motion to dismiss an “appeal from a state court on the ground that
it does not present a substantial federal question. .. .” Sup.Ct.R.
16(1)(b).

10a

(2) (1976), final judgments of the highest court of a
state may be reviewed by the Supreme Court: “By ap-
peal, where is drawn in question the validity of a statute
of any state on the ground of its being repugnant to the
Constitution . . . of the United States, and the decision
is in favor of its validity.” Unlike certiorari jurisdic-
tion, which is discretionary, the Court’s appellate juris-
diction is mandatory. Hicks, supra at 344, 95 S.Ct. at
2289. Thus, when a case comes before it on appeal, the
Supreme Court is ‘not obligated to grant the case plenary
consideration but [it is] required to deal with its
merits.” Jd.

The Court in Hicks therefore ruled that a summary
dismissal of an appeal for want of a substantial federal
question is a decision on the merits of the case. Such a
summary disposition is binding on the lower federal
courts, at least where substantially similar issues are
presented, until doctrinal developments or direct decisions
by the Supreme Court indicate otherwise. Jd. at 344-45,
95 S.Ct. at 2289-90.

Although the Hicks decision has been criticized for a
variety of reasons,° since that decision the Supreme Court

* See also Sup.Ct.R. 17(1) (“A review on a writ of certiorari is
not a matter of right, but of judicial discretion ...); 16 Wright,
Miller, Cooper & Gressman, Federal Practice and Procedure $$ 4003,
4004 & 4011 (1977).

* Mr. Justice Brennan has criticized the rule as giving too much
weight to a summary decision made solely on a jurisdictional state-
ment, for a variety of reasons which are not explained in any sort
of opinion. See Sidle v. Majors, 429 U.S. 945, 97 S.Ct. 366. 50
L.Ed.2d 316 (1976) (Brennan, J., dissenting from denial of cer-
tiorari) ; Colorado Springs An isements, Ltd. v. Rizzo, 428 U.S. 913.
96 S.Ct. 3228, 49 L.Ed.2d 1222 (1976) (Brennan, J., dissenting from
denial of certiorari). Sitting by designation in the Fourth Circuit.
Justice Clark stated that the Hicks rule ‘fl’ ew! in the face” of what
he perceived to be the Court’s actual practice of according similar
treatment and precedential weight to appeals from state courts and
petitions for certiorari. 526 F.2d 833, 836 (4th Cir. 1975) (Clark, J.,
concurring), cert. denied, 428 U.S. 913, 96 S.Ct. 3228, 49 L.Ed.2d

1221 (1976).

lla

has consistently stated that summary dispositions—sum-
mary affirmances and summary dismissals for want of a
substantial federal question—are decisions on the merits
and are binding on the lower federal courts." The Court
has refined the rule by emphasizing that a summary dis-
position only upholds the judgment of the lower court;
“[i]t does not... necessarily reflect [the Court’s] agree-
ment with the opinion of the court whose judgment is
appealed.” Washington v. Confederated Bands and Tribes
of the Yakima Indian Nation, 489 U.S. 463, 477 n. 20,
99 S.Ct. 740, 749 n. 20, 58 L.Ed.2d 740 (1979): See also
Illinois State Board of Elections v. Socialist Workers
Party, 440 U.S. 173, 182-88, 99 S.Ct. 983. 989-90, 49
L.Ed.2d 230 (1979): Mandel v. Bradley, 482 U.S. 173.
176, 97 S.Ct. 2238, 2240, 53 L.Ed.2d 199 (1977) (per
curiam},

It has also become clear that while summary disposi-
tions are rulings on the merits, their precedential effect
is limited to the precise issues set forth in the jurisdic-
tional statement:

Summary affirmances and dismissals for want of
a substantial federal question without doubt reject
the specific challenges presented in the statement of
jurisdiction and do leave undisturbed the judgment
appealed from. They do prevent lower courts from
coming to opposite conclusions on the precise issues
presented and necessarily decided by those actions. .. .
* See Metromedia, Inc. v. City of San Diego, 453 U.S. 490, 499-
900, 101 S.Ct. 2882, 2888-2889, 69 L.Ed.2d 800 (1981) (plurality
opinion); Southern Railway Co. v. Seaboard Allied Milling Corp.,
442 U.S. 444, 462, 99 S.Ct. 2388, 2398, 60 L.Ed.2d 1017 (1979):
Caban v. Mohammed, 441 U.S. 380, 390 n. 9, 99 S.Ct. 1760, 1767 n. 9,
60 L.Ed.2d 297 (1979): Washington v. Confederated Bands and
Tribes of the Yakima Indian Nation, 439 U.S. 463, 477 n. 20, 99
S.Ct. 740, 749 n. 20, 58 L.Ed.2d 740 (1979): Mandel v. Bradley, 432
U.S. 173, 176, 97 S.Ct. 2238, 2240, 53 L.Ed.2d 199 (1977) (per
curiam); Tully v. Griffin. Inc., 429 U.S. 68. 74, 97 S.Ct. 219, 203.
50 L.Ed.2d 227 (1976).

12:

Summary actions, however, . . . should not be un-
derstood as breaking new ground but as applying
principles established by prior decisions to the par-
ticular facts involved.

Mandel, supra at 176, 97 S.Ct. at 2240. See also Metro-
media, Inc. v. City of San Diego, 453 U.S. 490, 499, 101
S.Ct. 2882, 2887, 69 L.Ed.2d 800 (1981); Illinois State
Board of Elections, supra 440 U.S. at 182-83, 99 S.Ct.
at 989-90: Yakima Indian Nation, supra 439 U.S. at 477
n. 20, 99 S.Ct. at 749. Moreover, although lower federal
courts are bound by summary dismissals, they carry less
precedential weight in the Supreme Court than opinions
rendered after plenary consideration by that Court.
Metromedia, supra 453 U.S. at 500, 101 S.Ct. at 2889:
Caban v. Mohammed, 441 U.S. 380, 390 n. 9, 99 S.Ct.
1760, 1767 n. 9, 60 L.Ed.2d 297 (1979); Yakima Indian
Nation, supra 439 U.S. at 477 n. 20, 99 S.Ct. at 749
n. 20; Tully v. Griffin, Inc., 429 U.S. 68, 74-75, 97 S.Ct.
219, 223-224, 50 L.Ed.2d 227 (1976). In fact, “[i]t is
not at all unusual for the Court to find it appropriate
to give full ccnsideration to a question that has been the
subject of previous summary action.” Yakima Indian
Nation, supra 439 U.S. at 477 n. 20, 99 S.Ct. at 749 n.
20. See, e.g., Caban, supra 441 U.S. at 390 n. 9, 99 S.Ct.
at 1767 n. 9 ‘the Court gave plenary consideration to an
issue presented and summarily dismissed only three years
before and reversed itself).

This review of the Hicks rule provides some guidance
in determining the precedential weight we should give to
the summary dismissal of Queensgate. To the extent
that the same constitutional issues are presented in this
case as were presented in Queensgate, that decision is
binding, though the reasoning of the Ohio Supreme Court
may not be. In his concurring opinion in Mandel, Mr.
Justice Brennan suggested that in determining the reach
of a summary dismissal as precedent, a court must: “(a)
examine the jurisdictional statement in the earlier case

18a

to be certain that the constitutional questions presented
Were the same and, if they were, (bi) determine that the
judgment in fact rests upon decision of those questions
and not even arguably upon some alternative nonconsti-
tutional ground.” Mandel, supra 432 U.S. at 180, 97
S.Ct. at 2242 (Brennan. J.. concurring). These guide-
lines have been used by other courts. See Socialist Work-
ers Party v. March Fong Eu, 591 F.2d 1252, 1257-58
(9th Cir.), cert. denied, 441 U.S. 946. 99 S.Ct. 2167, 60
L.Ed.2d 1049 (1979): Lecates v. Justice of the Peace
Court No. 4, 637 F.2d 898, 904-05 (3d Cir. 1980). We
consider them to be appropriate here.

ITI.

The jurisdictional statement in Queensgate presented
the following question to the Supreme Court:

Whether Regulation 4301:1-1-44 of the Ohio
Liquor Control Commission, which prohibits a duly
licensed retail liquor permit holder from advertising
the retail price of alcoholic beverages in any medium
vigible from outside the permit premises, violates the
First and Fourteenth Amendments of the Constitu-
tion of the United States by suppressing the public
dissemination of truthful information about a law-
ful activity.

Jurisdictional Statement at I. Queensgate, U.S.
~~, 10o OO di, 74 LEG Sd 46 th support of the
proposition that the question was a substantial one, the
appellant in Queensgate argued that the advertising in
question was protected commercial speech, that the
Twenty-First Amendment did not allow a state to in-
fringe on protected commercial] speech, and that the regu-
lation in question was an unconstitutional infringement
on its First Amendment rights when analyzed under the
four-part Central Hudson test.

In the instant case, the issue is substantially similar.
In essence, that issue is: is Oklahoma’s advertising pro-

l4a

hibition an unconstitutional infringement on protected
commercial speech? Implicit in that issue, as we believe
Was implicit in Queensgate, is the issue of whether the
Twenty-first Amendment in some way enhances a state’s
authority to regulate commercial speech concerning al-
coholic beverages. To be sure, there are factual distinc-
tions between Queensgate and the instant case: the regu-
lated parties here are television stations, not liquor per-
mit holders; the laws here prohibit the rebroadecasting of
all advertising of alcoholic beverages, except for beer ad-
vertising, while the regulation in Queensgate prevented
only off-premises price advertising; and other minor dis-
tinctions. The crucial similarity between the cases, how-
ever, is this: in both cases, the state, acting under its
powers granted by the Twenty-first Amendment, has
chosen to prohibit some, but not all, forms of liquor ad-
vertising with the goal of decreasing the consumption
and abuse of alcoholic beverages. We are confident that
the constitutional question presented in Queensgate and
in the present appeals is substantially the same.

The second inquiry is whether there are any nonconsti-
tutional grounds upon which the Supreme Court may
have decided Queensyate. As noted above, the appellant's
jurisdictional statement in Queensgate, while minimizing
the effect of the Twenty-first Amendment, clearly con-
centrated on the argument that the regulation there vio-
lated its First Amendment rights to commercial speech.
In its motion to dismiss for want of a substantial federal
question, the Ohio Liquor Control Commission relied
solely on the argument that the state was free to regu-
late liquor advertising as part of its broad Twenty-first
Amendment power to regulate liquor and minimize its
evils. In our view, Queensgate manifestly presented an
issue concerning the tension between the First and
Twenty-first Amendments. The Supreme Court arguably
may have decided the case on nonconstitutional grounds;
if so, however, we cannot discern them. It is our view

15a

that the Supreme Court decided Ohio’s regulation was
nov an unconstitutional infringement on the appellant’s
First Amendment rights. The Queensgate dismissal is
binding on this court.

IV.

Still, the Supreme Court has warned against courts
being so preoccupied with a summary dismissal that
they fail “to undertake an independent examination of
the merits.” Mandel, supra 432 U.S. at ivi, 97 S.Ct. at
2241. In light of that Warning, and because the laws
here in question are indeed broader than the regulation
in Queensgate, we will follow the approach taken by the
court in Plante ». Gonzalez, 575 F.2d 1119 (oth Cir.
1978). cert. denied, 489 U.S. 1129. 99 S.Ct. 1047, 59
L.Ed.2d 90 (1979): ie. Queensgate will “eaution us”
against finding Oklahoma's laws to be unconstitutional,
but we must still examine the merits of these appeals.
Id. at 1125-26. In understanding this examination. we
are mindful that Queensgate “broke no new ground”,
and that we cannot reach an opposite conclusion ‘“‘on the
precise issues presented and necessarily decided by”
Queensgate. Mandel, supra 432 U.S. at 16, 97 S.Ct. at
2241.

The crucial question in this case, as it was under our
interpretation of Queensgate, is whether Oklahoma’s pro-
hibition against advertising of aleoholie beverages, as ap-
plied to the Appellees, violates their First Amendment
rights, as guaranteed by the Fourteenth Amendment.
The resolution of this issue involves an examination of
the relative interests at stake: that is, we must balance
the right of Telecasters and the cable operators to en-
gage in commercial speech against the right of Oklahoma,
through its general police powers as enhanced by the
Twenty-first Amendment. to regulate commercial speech
relating to alcoholic beverages.

The relevant section of the Twenty-first Amendment
states: “The transportation or importation into any State
Territory, or possession of the United States for delivery

l6a

or use therein of intoxicating liquors, in violation of the
laws thereof, is hereby prohibited.” U.S. Const., amend.
XXI, $ 2. While the states have broad authority to regu-
late alcoholic beverages under their traditional police
powers standing alone, Wisconsin v. Constantineau, 400
U.S. 433, 436, 91 S.Ct. 507, 509, 27 L.Ed.2d 515 (1971),
“the broad sweep of the Twenty-first Amendment has
been recognized as conferring something more than the
normal state authority over public health, welfare, and
morals.” California v. LaRue, 409 U.S. 109, 114, 93 S.Ct.
390, 395, 34 L.Ed.2d 342 (1972). Thus, under the
Twenty-first Amendment, the states have the power to
prohibit totally the sale of liquor within their boundaries,
New York State Liquor Authority v. Bellanca, 452 U.S.
714, 715, 101 S.Ct. 2599, 2600, 69 L.Ed.2d 357 (1981)
(per curiam) ; Ziffrin, Inc. v. Reeves, 308 U.S. 132, 138,
60 S.Ct. 163, 167, 84 L.Ed. 128 (1939), and the con-
comitant power to regulate the times, places, and circum-
stances under which liquor may be sold. Bellanca, supra,
452 U.S. at 715, 101 S.Ct. at 2600. Moreover, within the
power conferred by the Twenty-first Amendment, a “State
may protect her people against evil incident to intoxicants
... and may exercise large discretion as to means em-
ployed.” Ziffrin, supra 308 U.S. at 138-39, 60 S.Ct. at
167.

On two separate grounds, therefore, we hold that Okla-
homa’s alcoholic beverage advertising prohibitions are an
exercise of authority within that granted by the Twenty-
first Amendment. First, the purpose of the advertising
here unquestionably is to encourage sales of alcoholic
beverages. As such, the advertising could be considered
an incident of the sale of liquor which the state may
regulate as it regulates sales themselves: “{t]he prohibi-
tion against certain forms of advertising is really a pro-
hibition against soliciting of business.” Premier-Pabst
Sales Co. v. State Board of Equalization, 13 F.Supp. 90,
96 (S.D.Cal.1935). Alternatively, the laws are justified
as one of the means, selected by an exercise of its broad

lva

discretion, by which Oklahoma has chosen to achieve the
proper goal of protecting its people against the harms
incident to the use of alcoholic beverages. Ziffrin, supra
308 U.S. at 138-39, 60 S.Ct. at 167. The latter justifica-
tion was the one the State of Ohio presented to the Su-
preme Court in Queensgate. Under either analysis, Okla-
homa’s liquor advertising laws are within its powers
under the Twenty-first Amendment. Accordingly, they
are entitled to the ‘ ‘added presumption in favor of the
validity of the state regulation’ conferred by the Twenty-
first Amendment.” Bellanca, supra 452 U.S. at 718, 101
S.Ct. at 2601 (quoting California v. LaRue, supra 409
US. at 118, 98 S.Ct. at 397).

.

V.

The determination that Oklahoma's laws are within its
authority under the Twenty-first Amendment, however,
does not end our inquiry. The Twenty-first Amendment
did not grant to the states the authority to abrogate in-
dividual rights guaranteed by the Fourteenth Amend-
ment. Craig v. Boren, 429 U.S. 190. 206-09, 97 S.Ct.
451, 461-63, 50 L.Ed.2d 397 (1976): Wisconsin v. Con-
stantincau, supra 400 U.S. at 486, 91 S.Ct. at 509
(1971). A state’s power under the Twenty-first Amend-
ment must be considered in the light of the other pro-
visions of the Constitution “in the context of the issues
and interests at stake in any concrete case.” Hostetter
". Idlewild Bon Voyage Liquor Corp., 377 U.S. 324. 332,
84 S.Ct. 1293, 1298, 12 L.Ed.2d 350 (1964).

In this case, then, we must consider the Twenty-first
Amendment in the light of the First Amendment. There
is no serious dispute that the advertising here in ques-
tion is commercial speech, entitled to some degree of
protection under the First and Fourteenth Amendments.’

‘Crisp belatedly argues that the advertisements here are “in-
herently misleading” and therefore properly prohibited. See In re

18a

Virginia State Board of Pharmacy v. Virginia Citizens
Consumer Council, Inc., 425 U.S. 748, 96 S.Ct. 1817,
48 L.Ed.2d 346 (1976); Bates v. State Bar, 433 U.S. 350,
97 S.Ct. 2691, 53 L.Ed.2d 810 (1977); Linmark Associ-
ates, Inc. v. Township of Willingboro, 431 U.S. 85, 97
S.Ct. 1614, 52 L.Ed.2d 155 (1977). In interpreting the
scope of protection afforded by the First Amendment,
however, there is a “common-sense and legal distinction
between speech proposing a commercial transaction and
other varieties of speech... .”’ Metromedia, Inc. v. City
of San Diego, 453 U.S. 490, 506, 101 S.Ct. 2882, 2891,
69 L.Ed.2d 800 (1981) (plurality opinion).. Rather than
dilute the First Amendment, the Supreme Court has
“afforded commercial speech a limited measure of pro-
tection, commensurate with its subordinate position in
the scale of First Amendment values, while allowing
modes of regulation that might be impermissible in the
realm of noncommercial expression.”” Ohralik v. Ohio
State Bar Association, 436 U.S. 477, 456, 98 S.Ct. 1912,
1918, 56 L.Ed.2d 444 (1978).

Our duty here is to determine whether Oklahoma’s
laws are a permissible regulation of the Appellee’s at-
tenuated First Amendment rights. In doing so, we must
bear in mind that the Supreme Court allowed substan-
tially similar regulations, despite similar challenges, in
Queensgate. Nevertheless, in view of the holding in Craig

R.M.J., 455 U.S. 191, 202, 102 S.Ct. 929, 937, 71 L.Ed.2d 64; Fried-
man v. Rogers, 440 U.S. 1, 15-16, 99 S.Ct. 887, 897, 59 L.Ed.2d 100
(1979); Ohralik v. Ohio State Bar Association, 486 U.S. 447, 462,
98 S.Ct. 1912, 1921, 56 L.Ed.2d 444 (1978). Irrespective of whether
that argument is properly before us, it is clear that Oklahoma's laws
are not aimed at preventing deceptive or misleading advertising.
Indeed, if they were, they would be in danger of being struck down
as being more extensive than reasonably necessary. See, e.g., /n re
R.M.J., supra 455 U.S. at 207, 102 S.Ct. at 940. The purpose of
Oklahoma's laws is to prevent the excessive consumption of alcohol.
For purposes of determining the constitutionality of the laws in
that context, we are willing to accept the trial coort's finding that
the advertising is truthful.

19a

v. Boren, supra 429 U.S. at 209, 97 S.Ct. at 463, that the
Twenty-first Amendment does not alter the standards
otherwise applicable in equal protection cases, we will
apply the analysis for determining the validity of regu-
lation of commercial speech articulated by the Supreme
Court in Central Hudson Gas & Electric C orp. v. Public
Service Commission, 447 U.S. 557, 100 S.Ct 2343, 65
L.Ed.2d 341 (1980).

In Central Hudson, the Court reiterated that com-
mercial speech is accorded lesser protection under the
Constitution than other forms of constitutionally pro-
tected expression. Central Hudson, supra at 563, 100
S.Ct. at 2350 (citing Ohralik, supra 436 U.S. at 457, 98
S.Ct. at 1919). According to the Court. the “protection
available for particular commercia] expression turns on
the nature both of the expression and of the govern-
mental interests served by its regulation.” Central
Hudson, supra 447 U.S. at 563, 100 S.Ct. at 2350. In
order to balance those two competing interests, the Court
proposed the following four-part analysis:

At the outset, we must determine whether the ex-
pression is protected by the First Amendment. F or
commercial speech to come within that provision, it
at least must concern lawful activity and not be mis-
leading. Next, we ask whether the asserted govern-
mental] interest is substantial. If both inquiries yield
positive answers, we must determine whether the
regulation directly advances the governmental in-
terest asserted, and whether it is not more extensive
than necessary to serve that interest.

Central Hudson, supra at 566, 100 S.Ct. at 2351.

The threshold presented by the first two steps is easily
crossed. In all relevant respects, the commercial speech
here in question concerns lawful activity. The sale and
consumption of alcoholic beverages, though heavily regu-

20a

lated, is lawful within the State of Oklahoma.* Nor,
despite Crisp’s allegations, are the advertisements in-
herently misleading.’ The commercia] speech here is pro-
tected speech under the First Amendment. See Virginia
Board of Pharmacy, supra.

The asserted governmental interest of Oklahoma in
prohibiting the advertising of alcoholic beverages is to
reduce the sale and consumption of liquor, and thereby
reduce the problems associated with alcoho] abuse. There
can be no question that this asserted interest is substan-
tial. Under its general police power, Oklahoma has a
legitimate and substantial interest in the health and wel-
fare of its citizens, the safety of its highways, the sta-
bility of its families, and the productivity of its work
force, all of which are significantly and adversely affected
by the abuse of alcohol. Added to this already substan-
tial interest is the power of Oklahoma under the Twenty-

‘Crisp argues that some of the advertising displays conduct
which would be unlawful in Oklahoma. First, we do not consider it
significant that a nationally broadcast advertisement may show
conduct, such as drinking wine in public, which is unlawful in
Oklahoma. The purpose of the advertisement is to sell wine, which
may be done lawfully in Oklahoma, not to encourage public drinking
in violation of the laws of Oklahoma. Secondly, if Oklahoma's true
purpose were to prevent only such advertising, the laws again are
far more extensive than necessary.

* See footnote 7, supra. Indeed, the qualities that Crisp alleges
make these wine commercials “inherently misleading”—the com-
mercials tend to project an image of wine drinkers as successful,
fun-loving people, without warning of the dangers of alcohol—are
present in the advertising of almost any product from automobiles
to snack foods. The Supreme Court’s concern with “inherently mis-
leading” advertising is directed towards advertising methods which
tend to encourage fraud, overreaching, or confusion, such as some
forms of lawyer solicitation. See Ohralik, supra 436 U.S. at 462, 98
S.Ct. at 1921. As to advertising in general, the Supreme Court has
rejected a paternalistic approach in favor of assuming “that people
will perceive their own best interests ...” if the channels of com-
munication are left open. Virginia State Board of Pharmacy, supra

425 U.S. at 770, 96 S.Ct. at 1829.

Zla

first Amendment to regulate the sale, and the incidents
thereof, of alcoholic beverages, and to protect its citizens
from the evils incident to alcohol. See Ziffrin, supra 308
U.S. at 138-39, 60 S.Ct. at 167. The asserted state in-
terest, therefore, is exceptionally strong.

We must determine whether Oklahoma's laws directly
advance its asserted governmental interest. The trial
court found that the laws are at best an indirect means
of advancing Oklahoma’s interest. In particular, the
court noted that other means, such as early and con-
tinuing education about the dangers of alcohol abuse,
were available. In our view, the trial court misconceived
the purpose of this inquiry. Central Hudson does not
require that we determine whether Oklahoma has chosen
the best means to advance its interest; rather the in-
quiry is whether the means chosen by the legislature,
however objectionable any court may find them, directly
advance the asserted state interest.

In undertaking this inquiry, we note the approach
taken by the plurality in Metromedia in applying the
third part of the Central Hudson test: ‘We likewise
hesitate to disagree with the accumulated, common-sense
judgments of local lawmakers and of the many review-
ing courts that billboards are real and substantial haz-
ards to traffic safety. There is nothing here to suggest
that these judgments are unreasonable.” Metromedia,
supra 453 U.S. at 509, 101 S.Ct. at 2893 (footnote
omitted). In that case, the appellants argued that there
was nothing in the record to show any connection be-
tween billboards, which San Diego had essentially pro-
hibited, and traffic safety, one of the asserted govern-
mental interests. The California Supreme Court had
held, nevertheless, that as a matter of law the ordinance
eliminating billboards was reasonably related to traffic
safety. Jd. at 508, 101 S.Ct. at 2893. The plurality
agreed with that holding. /d. at 509, 101 S.Ct. at 2893.

22a

In this appeal, the Appellees similarly argue, and the
trial court agreed, that the record does not demonstrate
that Oklahoma’s laws have any direct effect on the con-
sumption of alcohol. In light of the plurality’s language
in Metromedia, however, and particularly in light of the
additional deference owed to the legislature as a result
of the Twenty-tirst Amendment, Bellanca,'” supra, we
hold, as a matter of law, that prohibitions against the
advertising of alcoholic beverages are reasonably related
to reducing the sale and consumption of those beverages
and their attendant problems. The entire economy of the
industries that bring these challenges is based on the
belief that advertising increases sales. We therefore do
not believe that it is constitutionally unreasonabie for
the State of Oklahoma to believe that advertising will
not only increase sales of particular brands of alcoholic
beverages but also of alcoholic beverages generally. The
choice of the Oklahoma legislature, and its people with
respect to the constitutional provision, is not unreason-
able, and does directly advance Okiahoma’s interest in
reducing the sale, consumption, and abuse of alcoholic
beverages,

The final inquiry under the Central Hudson test is
whether Oklahoma's laws are more extensive than is
necessary to serve its interest. The trial court con-

'” The regulations in question in Bellanca prevented nude dancing
in establishments which sold liquor for on-premises consumption.
Despite the fact that the regulation played a differeni role in New
York's alcoholic beverage regulatory scheme than the laws here, we
find the following language instructive:

Whatever artistic or communicative value may xttach to topless
dancing is overcome by the State’s exercise of its broad powers
arising under the Twenty-first Amendment. Although some
may quarrel with the wisdom of such legislation and may con-
sider topless dancing a harmless diversion, the Twenty-first
Amendment makes that a policy judgment for the state legis-
lature, not the courts.

Bellanca, supra 452 U.S. at 718, 101 S.Ct. at 2601.

23a

cluded, and Appellees urge, that since with respect to
Telecasters and the cable operators all rebroadcasting of
alcoholic beverage advertising was prohibited, the laws
were more extensive than necessary.

Again, the plurality opinion in Metromedia is in-
structive. In that case, San Diego's ordinance banned
virtually all billboards, allowing only on-site advertising
and other limited exceptions. According to the stipulated
facts in the case, the result of the ordinance was to
eliminate completely the outdoor advertising business in
San Diego. Metromedia, supra 453 U.S. at 497, 101
S.Ct. at 2887. Nevertheless, noting in particular that on-
site advertising and some other signs were specifically
exempted from the ordinance, the plurality held that the
ordinance was no broader than necessary. /d. at 508,

101 S.Ct. at 2893.

We recognize, of course, that the plurality eventually
did strike down the ordinance in Metromedia. It did so,
however, only on the grounds that the ordinance violated
the First Amendment protections for political and other
noncommercial speech. Metromedia, supra at 513-17,
101 S.Ct. at 2895-97. The plurality’s analysis clearly
distinguished between commercial and non-commercial
speech. With respect to the commercial speech aspect of
the case, the plurality applied the Central Hudson test
and found that the ordinance was constitutional. Metro-
media, supra at 507-09, 512, 101 S.Ct. at 2891-93, 2895.

It is our view, therefore, that Oklahoma’s laws also
pass the fourth and final test under Central Hudson.
Even though Appellees are completely prohibited from re-
broadcasting alcoholic beverage advertising, they are free
to carry other forms of advertising. We recognize that
the cable operators especially are placed in a difficult
position; however, nothing in the First Amendment pro-
hibits this result. See Metromedia, supra. On-premises
advertising is allowed, the rebroadcast of beer advertis-
ing is not prohibited, and alcoholic beverage advertising

24a

in out-of-state printed publications distributed in Okla-
homa is allowed. Although Appellees bear a dispropor-
tionate burden of the regulation, Oklahoma has not elimi-
nated the dissemination of information concerning alco-
holic beverages. With particular emphasis on the power
of Oklahoma under the Twenty-first Amendment, we hold
that the advertising prohibitions here are no more ex-
tensive than is necessary to serve Oklahoma’s asserted
interest. Article XXVII, $5, of the Oklahoma Constitu-
tion, and Section 516 of title 37 of the Oklahoma Stat-
utes, are valid restrictions on commercial speech and do
not violate the Appellees’ First Amendment rights.

We again emphasize that the Central Hudson test is
essentially a balancing test. When the Twenty-first
Amendment is considered in addition to Oklahoma’s sub-
stantial interest under its police power, the balance shifts
in the state’s favor, permiting regulation of commercial
speech that might not otherwise be permissible. We be-
lieve that the Supreme Court’s summary dismissal in
Queensgate mandates this result. We order that the
permanent injunctions be dissolved and we reverse the
district court’s summary declaratory judgments.

McKAY, Circuit Judge, concurring:

While I fully concur in the court’s opinion, I add this
concurring statement to bring out an additional serious
consequence of the alternative result. The section under
attack in these cases was enacted by a vote of the people
at large in a single referendum petition that included not
only the regulatory scheme but the surrender by repeal of
the Prohibition Ordinance, see Okla. Const., art. XXVII,
$$ 1-11 (1981) ‘each section composed part of State
Question No. 386, Referendum Petition No. 121 which
was adopted at election held Apri! 7, 1959!. which had
stood since statehood as the fundamental law of Oklahoma
separately voted on by the people at large. The regula-
tory package was clearly the quid pro quo for the sur-

25a

renver after decades of dispute of this long held public
standard. I have serious doubt that federal courts are
at liberty glibly to sever and strike down one section of
such an integrated state decision with its long and turbu-
lent history. see Spokane Arcades, Inc. v. Brockett, 631
F.2d 185 (9th Cir. 1980), afd, 454 U.S. 1022, 102 S.Ct.
997, 70 L.Ed.2d 468 (1981), reh’g denied, 454 U.S. 1165,
102 S.Ct. 1040, 71 L.Ed.2d 322 (1982), without strik-
ing down the whole and restoring the status quo ante
whether any of the parties would desire such a result.

26a
APPENDIX B

UNITED STATES COURT OF APPEALS
TENTH CIRCUIT

Before Honorable James E. Barrett, Honorable Monroe G.
McKay, and Honorable James K. Logan, Circuit Judges

No. 82-1061

CABLECOM-GENERAL, INC., Cox CABLE OF OKLAHOMA
CiTy, INC., MULTIMEDIA CABLEVISION, INC.. SAMMONS
COMMUNICATION, INC.,

Plaintiffs-A ppellees,

VS.

RICHARD A. CRISP, Director,
Alcohol Beverage Control Board,
Defendant-A ppellant,

SANE, INC., OKLAHOMA PRESS ASSOCIATION, OUTDOOR
ADVERTISING ASSOCIATION OF OKLAHOMA, STATE OF
MISSISSIPPI,

Amici Curiae.

This matter comes on for consideration of appellees’
petition for rehearing filed in the captioned cause.

Upon consideration whereof, the petition for rehearing
is denied.

s Howard K. Phillips
HOWARD K. PHILLIPS
Clerk

Date of Entry: March 21, 1983

27a
APPENDIX C

UNITED STATES COURT OF APPEALS
TENTH CIRCUIT

Before Honorable James E. Barrett, Honorable Monroe G.
McKay, and Honorable James K. Logan, Circuit Judges
No. 82-1061
CABLECOM-GENERAL. Inc., Cox CARE or OKLAHOMA
City, INc., MULTIMEDIA CABLEVISION, INC.. SAMMONS

COMMUNICATION, INC..
Plaintiffs-A ppellees,

V

NM

RICHARD A. CRISP, Director.
Alcohol Beverage Control Board.
Defendant-A ppellant,

SANE, INC., OKLAHOMA PREss ASSOCIATION, OUTDOOR
ADVERTISING ASSOCIATION OF OKLAHOMA, STATE OF
MISSISSIPPI,

Amici Curiae.

This matter comes on for consideration of appellees’
motion for stay of mandate in the captioned cause pend-
ing application to the Supreme Court for certiorari.

Upon consideration whereof, it is ordered that the man-
date is stayed until May 4, 1983. pending certiorari and
that if, on or before that date. there is filed with the
Clerk of the Court of Appeals a notice from the Clerk
of the Supreme Court of the United States that appellees
have timely filed a petition for writ of certiorari in the
Supreme Court, the stay shall continue until final dis-
position by the Supreme Court.

s’ Howard K. Phillips
HowarD K. PHILLIPs

Clerk
Date of Entry: April 4, 1983

28a
APPENDIX D

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF OKLAHOMA

No. CIV-81-290-W

CABLECOM-GENERAL, INC.; COX CABLE OF OKLAHOMA
City, INC.; MULTIMEDIA CABLEVISION, INC.; AND
SAMMONS COMMUNICATIONS, INC.,

Plaintiffs

V.

RICHARD A. CRISP, DIRECTOR,
ALCOHOLIC BEVERAGE CONTROL BOARD,
Defendant.

PRELIMINARY INJUNCTION

This cause came on for hearing on March 6, 1981 on
plaintiffs’ Motion for Preliminary Injunction. All par-
ties appeared by counsel. The Court, having heard the
testimony of the witnesses and arqupent of counsel,

finds as follows:

1. This action is brought against the defendant in
his official capacity as the Director of the Alcoholic Bev-
erage Control Board of the State of Oklahoma. De-
fendant’s official duties include investigation of potential
violations of Alcoholic Beverage Laws and aiding pros-
ecution of violations. 37 O.S. $509. Oklahoma’s Aleco-
holic Beverage Laws include a prohibition against ad-
vertising alcoholic beverages.

2. Plaintiffs are operators of various cable television
systems throughout the State of Oklahoma. As part of
their programming, they relay to subscribers the signals
of out of state television stations, which signals include
commercials advertising alcoholic beverages. They seek
a declaration that enforcement of Oklahoma laws _ pro-

29a

hibiting advertisement of alcoholic beverages against
them would violate their rights under the United States
Constitution and an injunction prohibiting enforcement
aga’nst them.

3. Defendant has made known his intention to recom-
mend prosecution of plaintiffs if violations of the ad-
vertising prohibition are brought to his attention.

4. Plaintiffs’ uncontradicted testimony showed that at-
tempting to comply with the advertising prohibition
pending final hearing of this action would entail enor-
mous financial burden and would also. in many instances,
place them in violation of United States law.

5. In some instances, the signals containing the aleo-
holic beverage advertisements have been carried by cable
systems in the state for over ten years, without previous
challenge.

6. Plaintiffs are faced with a genuine threat that the
advertising prohibition will be enforced against them,
giving this Court jurisdiction to entertain this action.

7. Plaintiffs have demonstrated the probability that
they would suffer irreparable injury if defendant is not
enjoined from pursuing enforcement pending final hear-
ing of this action.

8. Plaintiffs have demonstrated a sufficient probability
of success to justify preliminary relief preserving the
Status quo, particularly in light of the absence of any
showing of injury-to defendant from the granting of
such relief.

IT IS THEREFORE ORDERED. that defendant, in
his official capacity, his agents, employees, attorneys, and
all persons in active concert or participation with him
are hereby enjoined pending determination of this ac-
tion from attempting to enforce or assisting or recom-
mending any attempted enforcement of Oklahoma law

30a

prohibiting advertisement of alcoholic beverages against
these plaintiffs.

LEE R. WEST
United States District Judge

Date of Entry: March 19, 1981

3la
APPENDIX E

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF OKLAHOMA

CIV-81-290-W

CABLE-CoM GENERAL, INC.: Cox CABLE OF OKLAHOMA
City, INc.: MULTIMEDIA (ABLEVISION, INC.: SAMMONS

COMMUNICATION, INC..
Plaintiffs,

Vs.

RICHARD A. CRISP, Director, Alcoholic Beverage
Control Board,
Defendant.

DECLARATORY JUDGMENT

Pursuant to 28 U.S.C. § 2201, and in accordance with
the Memorandum Opinion entered herein this 18th day
of December, 1981,

IT IS HEREBY ORDERED, ADJUDGED AND DE-
CREED that enforcement of Article 27. § 5, of the Okla-
homa Constitution or 37 O.S. (1971) $516 by the
defendant, in his official capacity, his agents, employees,
attorneys, and all persons in active concert or participa-
tion with him, against the plaintiffs is or would be a
violation of Plaintiffs’ First Amendment rights under
the United States Constitution as guaranteed to the states
by the Fourteenth Amendment.

IT IS SO ORDERED this 18th day of December, 1981.

s Lee R. West
United States District Judge

Date of Entry: December 18, 1981

32a
APPENDIX F

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF OKLAHOMA

CIV-81-290-W

CABLE-COM GENERAL, INC.; Cox CABLE OF OKLAHOMA
City, INcC.: MULTIMEDIA CABLEVISION, INC.; SAMMONS

COMMUNICATION, INC.,
Plaintiffs,

VS.

RICHARD A. CRISP, Director, Alcoholic Beverage
Control Board,
Defendant.

PERMANENT INJUNCTION

In accordance with the Memorandum Opinion and
Order entered herein this 18th day of December, 1981,

IT IS HEREBY ORDERED that Defendant, in his
official capacity, his agents employees, attorneys, and all
persons in active concert or participation with him, are
permanently enjoined from attempting to enforce or
assisting or recommending any attempted enforcement
of Article 27, $5, of the Oklahoma Constitution or 37
O.S. (1971) $516 against these plaintiffs.

IT IS SO ORDERED this 18th day of December, 1981.

s Lee R. West
United States District Judge

Date of Entry: December 18, 1981

33a
APPENDIX G

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF OKLAHOMA

CIV-81-290-W

CABLE-COM GENERAL, INC.: Cox CABLE OF OKLAHOMA
City, INC.; MULTIMEDIA CABLEVISION, INC.: SAMMONS

COMMUNICATION, INC..
Plaintiffs,

VS.

RICHARD A, CRISP, Director,
Aleoholic Beverage Control Board,
Defendant.

Richard C. Ford and Clyde A. Muchmore, 1800 Mid-
America Tower, Oklahoma City, OK 73102, and Arthur
H. Harding, FLEISHMAN AND .WALSH, 1725 N_ Street,
N.W., Washington, D.C. 20036 for the plaintiff Cable-
Com General, Ine.

Marvin B. York and John W. Maile, BLEVINS & York,
1245 S.W. 44th St., Oklahoma City, OK 73109, and David
P. Fleming of Dow, LoHNES & ALBERTSON, 1225 Con-
necticut Ave., Washington, D.C, 20036 for the plaintiff
Cox Cable of Oklahoma City, Ine.

tobert Jernigan, 1200 N. Shartel, Oklahoma City, OK
73101, and David P. Fleming of Dow, LoHNES & AL-
BERTSON, 1225 Connecticut Ave.. Washington, D.C. 20036
for the plaintiff Multimedia Cablevision, Inc.

Jap W. Blankenship and Warren F. Bickford of
FeLLERS, SNipek, BLANKENSHIP, BaILey @ TIPPENs.
2400 First National Center, Oklahoma City, OK 73102
and David P. Fleming of Dow, LoHNES & ALBERTSON,
1225 Connecticut Ave.. Washington, D.C. 20036 for the

plaintiff Sammons Communication, Inc.

34a

Jan Eric Cartwright, Attorney General, and Michael
C. Conaway, Assistant Attorney General, 112 State Capi-
tol Building, Oklahoma City, OK 73105 for Defendant.

Jerry D. Sokolosky, 514 Park Harvey Center, 200
North Harvey, Oklahoma City, OK 73102 for Amicus
Curiae Oklahoma Press Association.

Larry Derryberry of DERRYBERRY, DUNCAN & NANCE,
4420 North Lincoln Boulevard, Oklahoma City, OK 73105
for Amicus Curiae S.A.N.E., Inc.

MEMORANDUM OPINION AND ORDER

Before the Honorable Lee R. West, United States
District Judge.
Introduction

Plaintiffs are corporations qualified to do business in
Oklahoma and are holders of cable television franchises
in the state of Oklahoma. They have franchises through-
out the state including operations in Canadian, Ottawa,
Oklahoma, Tulsa, Kiowa, Greer, and Noble Counties.
laintiffs relay to paid subscribers the signals of various
television stations, some of which originate outside

Oklahoma.

Defendant is the Director and Secretary to the Board
of the Alcoholic Beverage Control Board, an agency of
the State of Oklahoma charged with primary responsi-
bility for the enforcement of Oklahoma law relating to
alcoholic beverages. Director Crisp is sued only in his
official capacity.

Some of the programming which Plaintiffs relay to
their customers includes advertisements for wine. .an
alcoholic beverage as defined in Article 27, $5 of the
Oklahoma Constitution, and 37 O.S. £506 (1971). This
advertising is lawful where originated but prohibited in

or

ova

Oklahoma. Plaintiffs seek a declaratory judgment that,
as applied to Plaintiffs, the provisions of Oklahoma’s
Constitution and laws prohibiting advertisement of alco-
holic beverages violate Plaintiffs’ constitutional rights.
The case was filed on March 3, 1981, and on March 6,
1981, following an evidentiary hearing, the Court pre-
liminarily enjoined Defendant from attempting to en-
force the challenged provisions against Plaintiffs during
the pendency of this action. That injunction remains in
force and Plaintiffs seek to have it made permanent to
prohibit Defendant from attempting to enforce or assist-
ing any attempted enforcement as threatened against

Plaintiffs.

Plaintiffs have moved for summary judgment pursuant
to Rule 56, F.R.Civ.P., on the grounds that the consti-
tutional and statutory ban on advertising violates the
plaintiffs’ First Amendment right to freedom of speech.
Plaintiffs also contend the ban is a violation of Plaintiffs’
right to equal protection under the law. The Oklahoma
Press Association has filed an amicus curiae brief in |
support of Plaintiffs’ Motion for Summary Judgment.

Defendant has filed a Motion to Dismiss pursuant to
Rule 12(b) (6), F.R.Civ.P. Defendant contends that be-
cause the Twenty-first Amendment grants a broad sweep
of power to Defendant to regulate the liquor industry,
the passage of Okla. Const., art. 27, $5 and the enact-
ment of 37 O.S. $516 (1971) do not violate the freedom
of speech protection of the First Amendment. Defendant
further contends that no equal protection violation is
manifest in the laws in question because they bear a
rational relationship to the legitimate governmental goal
of protecting the health, safety, and welfare of the people
of Oklahoma. Defendant contends that quasi-judicial and
prosecutorial immunity of Richard A. Crisp bars a claim
under 42 U.S.C. § 1988. S.A.N.E. Ine. has filed an
amicus curiae brief in support of Defendant’s Motion to

Dismiss.

36a

District Court Jurisdiction

The plaintiffs invoke the jurisdiction of this Court pur-
suant to 28 U.S.C. $§ 1831, 1348, 2201. and 42 U.S.C.
$1983. Defendant in its answer denies jurisdiction,
claiming that the Court should abstain because no fed-
eral question is

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385010_0896%3A01. Public record. Not legal advice.
