recisions, or current-year cuts in funds appro- priated by Congress. The 1974 act also estab- lished a budget committee in each congressional house and the CONGRESSIONAL BUDGET OFFICE to provide technical information and support. Finally, this act required that Congress adopt budget resolutions setting limits on budget aggregates and allowing debates on spending priorities within those aggregates. The 1974 act greatly reduced the president’s role in the budget process—in particular, the president’s responsibility of determining and recommending budget aggregates to Congress. Now, legislators could more readily ignore the president’s recommendations and instead create for themselves, through budget resolutions, generous limits on budget aggregates. This arrangement allowed politicians more flexibility in setting spending priorities within the budget aggregates, thus pleasing their constituents. Not surprisingly, federal budget deficits grew. In 1985 Congress reacted to the rising deficits by enacting the Balanced Budget and Emergency Deficit Control Act (popularly known as the Gramm-Rudman-Hollings Act) (Pub. L. No. 99-177, 99 Stat. 1038) (codified as amended in scattered sections of 2, 31, and 42 U.S.C.A.). The Gramm-Rudman-Hollings Act encouraged congressional conformity to deficit reduction targets specifically prescribed by the act. If, after the budget process has been completed, the budget exceeds deficit reduction targets, spending cuts are ordered by the president’s OFFICE OF MANAGEMENT AND BUDGET. The Gramm-Rudman-Hollings Act limited this executive power by providing congressionally mandated formulas for the spending cuts. The Budget Enforcement Act of 1990 (2 U.S.C.A. § 601 et seq.; 15 U.S.C.A. § 1022) revised Gramm-Rudman-Hollings to make deficit targets flexible, not fixed. The 1990 act further required that reductions in defense and foreign spending cannot be used to increase domestic spending and vice versa. This require- ment is known as the firewall. In addition, the 1990 act required that either revenue increases or spending cuts must balance increases in spending for entitlements, such as Aid to Families with Dependent Children. This re- quirement is known as pay-as-you-go. The current federal budget process is extremely complex. Confusion and misunder- standings about the process contribute to disagreements over how to resolve the federal deficit. A very basic description of the process follows. First, the president sends budget recommen- dations to Congress. Congress, which has the ultimate powe r to appropriate federal funds, may follow or ignore the president’s recommen- dations. Second, the House and Senate together devise an overall budget resolution, usually debating their differences in a conference com- mittee. Following the guidelines of the budget resolution, House and Senate committees rec- ommend spending for each of 13 substantive areas, excluding defense spending. For the House of Representatives, these committees, which loosely correspond with the thirteen substantive areas, include Agriculture; Banking, Finance and Urban Affairs; Education and Labor; Energy and Commerce; Interior and Insular Affairs; Judiciary; Merchant Marine and Fisheries; Post Office and CIVIL SERVICE; Public Works and Transportation; Science, Space, and Technology; Veterans Affairs; and Ways and Means. For the Senate, the committees, which also loosely correspond with the 13 substantive areas, are Agriculture, Nutrition, and Forestry; Banking, Housing, and Urban Affairs; Commerce, Science, and Transportation; Energy and Natural Resources; Environment and Public Works; Finance; Governmental Affairs; Judiciary; Labor and Human Resources; and Veterans’ Affairs. The full House and Senate together vote on the recommendations of the committees, following debate in a conference committee if necessary. The House and Senate then jointly send an authorization bill for each of the thirteen substantive areas to the president for signing. These bills merely establish guidelines for spend- ing; they do not actually authorize spending. Next, the House and Senate Appropriations Committees together draft 13 separate appro- priations bills, which correspond to the authori- zation bills. The full House and Senate together approve or disapprove each APPROPRIATION, conduct debates in conference committees to resolve differences, and amend appropriations if necessary. They then jointly send the thirteen appropriations bills to the president to be signed. If the bills are signed, spending is approved. Upon congressional funds appropriations, the branches and agencies of the federal GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION FEDERAL BUDGET 359 government are required to spend the funds on the functions for which they were appropriated. Congress may supplement budget appropria- tions if conditions change following the budget process, but supplemental appropriation in excess of authorization bills must be accounted for with spending cuts, amendment of the individual authorization bills, or amendment of the overall budget bill containing all the individual authorization bills. Several other expense areas complicate the federal budget process. For example, Congress and the president enact as law permanent authorization and spendin g appropriations for entitlement program s such as MEDICARE and MEDICAID. Thus, appropriations for entitlement programs become automatic, requiring no further congressional action during the annual budget process. Appropriations funding the principal and interest owed on the national debt are, practi- cally speaking, also automatic. Unlike appro- priations for entitlement programs, those for the national debt must be approved annually by Congress. But approval for funding this debt is always granted; to allow the United States to default would severely damage the national and world economies. In the debate over how to balance the federal budget, politicians and citizens often overlook automatic federal spending. Also complicating the budget process is the method of accounting used by the federal government, known as the cash method. The cash method of accounting calculates expendi- tures based upon the date they are paid. This method differs from the accrual method of accounting, which calculates expenditures based on the date the obligation is incurred. Although this may seem to be a subtle distinction, the cash method by its nature leaves more room for error in budget appropriations, some of which is corrected by a government statistic called the National Income and Product Accounts. Econ- omists, politicians, and concerned U.S. citizens disagree over which accounting method, cash or accrual, would better serve the U.S. budget and the national economy. Moreover, economics is an inexac t science, and the complexities associ- ated with economics are not well understood by the average voter. Added to the public’s general confusion is the difficulty in estimating the federal budget, both revenues and expenditures, before the start of a fiscal year. Future unemployment, inflation, and growth in the gross national product are variables that will affect actual federal spending. And although the TREASURY DEPARTMENT and the Senate Finance Committee estimate future revenues, no accurate determination will be available until the fiscal year has already ended. Largely because the budget process is so complex, there is little agreement as to how to balance the federal budget. As the federal deficit linger s each year, so does public support of a CONSTITUTIONAL AMENDMENT requiring a balanced budget. Yet several attempts at such legislation—in 1984, 1990, 1992, and 1994— have failed to pass in Congress. One vocal proponent of a balanced budget amendment is Texas businessman H. Ross Perot, who ran unsuccessfully for president in 1992. Perot denounced mushrooming deficits, blaming politicians who approve current spending to appease constituents at the expense of future taxpayers: “[I]n 1992 alone we will add over $330 billion to the $4 trillion we’ve already piled on our children’s shoulders. The weight of that debt may destroy our children’s futures.” Yet a balanced budget amendment would not be without obstacles. One problem is defining a balanced budget, especially given the confusion over federal accounting methods, automatic expenditures, and inaccurate esti- mates of revenue and spending. For example, a federal budget employing the cash method of accounting may show a far greater deficit than the same budget employing the accrual method of accounting. Another problem is that of the enforceabi- lity of a balanced budget amendment, which hinges in part on taxpayer standing, or legal entitlement to sue. Would all taxpayers have standing to enforce a balanced budget amend- ment, or would only taxpayers who could demonstrate actual damage as a result of an unbalanced budget? Further, courts are reluc- tant to make determinations of what they consider political questions, or issues best decided by the legislative or executive branch of government. Many commentators consider the judicial branch incapable of effectively analyzing and deciding issues concerning the federal budget. Perhaps the greatest impediments to a balanced budget amendment, or any other GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION 360 FEDERAL BUDGET meaningful reform of the federal budget, are the sacrifices faced by U.S. citizens, including having their taxes raised and their spending programs cut. Whether Congress, the president, and the public will make these sacrifices to reduce and perhaps eliminate the federal deficit is an engaging POLITICAL QUESTION. FURTHER READINGS Bowen, James W. 1994. “Enforcing the Balanced Budget Amendment.” Seton Hall Constitutional Law Journal 4:565. Devins, Neal. 1990. “Budget Reform and the Balance of Powers.” William and Mary Law Review 31. Schick, Allen. 2000. The Federal Budget: Politics, Policy, and Process. Rev. ed. Washington, D.C.: Brookings Institu- tion. Shojai, Siamack ed. 1999. Budget Deficits and Debt: A Global Perspective. Westport, Conn.: Praeger. CROSS REFERENCES Accrual Basis; Cash Basis; Congress of the United States; Constitution of the United States; Independent Parties; Lobbying; Reform Party; Separation of Powers. FEDERAL BUREAU O F INVESTIGATION The Federal Bureau of Investigation (FBI) is the principal investigative unit of the U.S. DEPART- MENT OF JUSTICE (DOJ). The FBI gathers and reports facts, compiles evidence, and locates WITNESSES in legal matters in which the United States is or may be a party in interest. In addition, the bureau assists both U.S. and INTERNATIONAL LAW enforcement agencies in crime investigation and personnel training. The Federal Bureau of Investigation (FBI) investigates all violations of federal law except those specifically assigned to other federal agencies. The bureau’s jurisdiction covers a wide range of crimes, from KIDNAPPING and drug trafficking to the unauthorized use of the Woodsy Owl emblem, the U.S. Forest Service’s antipollution mascot (18 U.S.C.A. § 711a). The FBI’s authority derives from 28 U.S.C.A. § 533, which enables the attorney general to “appoint officials to detect crimes against the United States.” The bureau also conducts noncriminal investigations, such as background security checks. The FBI does not prosecute crimes, but it assists other law enforcement agencies in investigations that lead to prosecution. The FBI traces its origins to 1908 when President THEODORE ROOSEVELT instructed Attor- ney General CHARLES J. BONAPARTE to create a force of special agents to work as investigators within the DOJ. In 1909 Attorney General GEORGE W. WICKERSHAM named the elite group the Bureau of Investigation. In 1935 following a series of name changes, the bureau was officially termed the Federal Bureau of Investigation. In its early days, the FBI investigated the relatively small number of federal crimes that occurred. These included BANKRUPTCY frauds and antitrust violations. During WORLD WAR I, it was responsible for investigating ESPIONAGE, SABO- TAGE , SEDITION, and violations of the Selective Service Act of 1917 (Act May 18, 1917, c. 15, 40 Stat. 76 [Comp. Stat. 1918, § 2044a-2044k]). In 1919, the bureau broadened its scope to include the investigation of motor vehicle thefts. The FBI established its reputation as a tenacious investigative force during Prohibition, in the 1930s. Its many undercover probes throughout that era led to the arrests of notorious crime figures such as John Dillinger and Al Capone. With the onset of WORLD WAR II and the advent of the atomic age, the FBI increased its size and scope to include domestic and foreign intelligence and counterintelligence probes, back- ground security checks, and investigations of internal security matters for the EXECUTIVE BRANCH. During the 1960s the bureau’s chief con- cerns were CIVIL RIGHTS violations and ORGANIZED CRIME operations. Counterterrorism, white- collar crimes, illegal drugs, and violent crimes were its focus during the 1970s and 1980s. The modern FBI divides its investigations among seven major areas: applicant matters (background checks on applicants and candi- dates for federal positions), civil rights, coun- terterrorism, foreign counterintelligence, drugs and organized crime, violent crimes and major offenders, and white-collar crimes. It has nine divisions in three offices located at its head- quarters in Washington, D.C. These divisions provide program direction and support ser- vices to 56 field offices, more than 400 satellite offices (known as resident agencies), as well as 60 international offices outside the United States. The bureau employs approximately 13,000 special agents and nearly 19,000 support personnel. In addition to its investigative work on federal crimes, the FBI provides investigative and train- ing support to other law enforcement agencies. The FBI Laboratory, one of the largest and most comprehensive crime laboratories in the world, FEDERAL BUREAU OF INVESTIGATION 361 GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION is the only full-service federal forensic lab. FBI examiners perform crime scene searches, surveil- lance, fingerprint examinations, and other scien- tific and technical services. They also train state and local crime laboratory and law enforcement personnel. Through the Criminal Justice Infor- mation Services (CJIS), the FBI provides sophisti- cated identification and information services to local, state, federal, and international law enforce- ment agencies. Among the aids available through CJIS is a state-of-the-art automated fingerprint identification system. The bureau also offers extensive training programs to FBI employees and other law enforcement personnel at the FBI Academy, in Quantico, Virginia. The FBI is headed by a director, the first and most famous of whom was J. Edgar Hoover. Appointed in 1924 at the age of 29, Hoover led the bureau for 48 years, until his death in 1972. He is credited with building a highly disciplined force of efficient and respected investigators. During Hoover’s tenure, the FBI established its centralized fingerprint file, crime laboratory, and training cen ter for police officers. But Hoover has seen by his critics as an autocrat who wielded his power against anyone he considered a threat to U.S. security. He was obsessively anti-Communist, and critics charge that his single-minded quest to root out all political dissent led to the harassment of suspects and suspension of their civil liberties. L. Patrick Gray III became acting director uponHoover’sdeath.Hewassucceededin1973by another acting director, William D. Ruckelshaus, who was replaced later that year by Clarence M. Kelley, a former FBI agent. Kelley is credited with modernizing the bureau, curbing arbitrary investigations, and openingthe special agent ranks to women and minorities. He presided over the bureau until 1978 when William H. Webster was appointed director. Webster was replaced by act- ing director John E. Otto in 1987. Otto stepped down later that year and was replaced by William S. Sessions. During Sessions’s tenure, African American and Hispanic agents charged the bureau with racial DISCRIMINATION and harassment. Sessions settled these claims with the groups and insti- tuted policies to increase the number of women and minorities in the agency. In 1993 Sessions was dismissed from his post by President BILL CLINTON amid allegations of UNETHICAL CONDUCT. Then Clinton appointed a former FBI agent and federal judge, Louis J. Freeh. ROBERT S. MUELLER replaced Freeh as FBI director in 2001. A number of controversies have plagued the FBI in recent years, including the handling of the CONFRONTATION with white separatist Randall Weaver at Ruby Ridge, Idaho, in 1992; ques- tions on the handling of the Branch Davidian standoff near Waco, Texas, in 1993; issues with the interrogation of Richard Jewell after the 1996 Olympic Park bombing in Atlanta during the 1996 Olympics; and problems uncovered at the FBI crime laboratory in 1997. Between 2000 and 2002, three cases caused the FBI additional headaches: the belated FBI release of documents related to the Oklahoma City bombing; mis- handling of the espionage investi gation of Wen Ho Lee, nuclear scientist at Los Alamos National Laboratory in New Mexico; and the damage caused by the actions of long-term Russian and Soviet spy, FBI agent Robert Hanssen. The FBI came under fire for its investigation of Wen Ho Lee, a naturalized U.S. citizen born in Taiwan, and a NUCLEAR WEAPONS specialist with the U.S. ENERGY DEPARTMENT at Los Alamos, New Mexico. Fired in March 1999 and arrested months later on 59 counts of mishandling classified nuclear data, Wen Ho Lee was never officially charged with espionage. In 2000 he pleaded guilty to one charge of downloading nuclear WEAPONS design secrets to a nonsecure computer. The governme nt dropped the re- maining charges. Lee was sentenced to time served. He had been held nine months without J. Edgar Hoover points to a crime map of the United States. He served as FBI director for 48 years, during which the bureau grew in size and expertise, though he was criticized for abuse of power and harrassment of suspects. AP IMAGES 362 FEDERAL BUREAU OF INVESTIGATION GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION bail in solitary confinement. A report by the Department of Justice called the FBI’s investi- gation of the Lee case “deeply and fundamen- tally flawed,” the New York Times reported. In January 2001 the FBI was criticized for its handling of the Oklahoma City bombing investigation after FBI employees discovered that more than one thousand documents related to Timothy McVeigh’s and Terry Nichols’s trials for the bombing of the Murrah Federal Building in Oklahoma City on April 19, 1995, had not been released. Once informed of the problem, FBI managers failed to promptly notify FBI headquarter s or prosecutors. The blunder led to a one-month postponement of McVeigh’s execution in May 2001. Nichol s sought to have his convictions for MANSLAUGHTER and conspiracy overturned based upon the FBI’s gaffe, but the Tenth CIRCUIT COURT of Appeals ruled that nothing in the documents would have changed the outcome of Nichol’s case. The revelation of the espionage activities of the FBI’s own agent, Robert Hanssen, was one of the most embarrassing incidents in the bureau’s recent history. In 1979, about three years after he started working for the FBI, Hanssen began selling secrets to the Soviets. He continued spying off and on for 22 years until the time of his arrest. Some have called Hanssen the most damaging spy in U.S. history, turning over an estimated 26 diskettes and 6,000 pages of classified documents to the Soviet Union and Russia in exchange for cash and jewelry. He was sentenced in 2002 to life in prison. A subse- quent probe initiated by Attorney General JOHN ASHCROFT showed serious deficiencies in the FBI internal security programs . In response to the SEPTEMBER 11 ATTACKS and the terrorist THREATS against the United States, the FBI stepped up its counterterrorism mea- sures to hunt down and capture suspected terrorists. The bureau works with the HOMELAND SECURITY DEPARTMENT and many other govern- ment agencies to protect U.S. citizens from the dangers of terrorist activities within U.S. borders. Its multifaceted efforts include the establishment of operational units to address terrorist threats, such as the 24/7 Counterter- rorism Watch, the TERRORISM Financing Opera- tion, the Terrorism Reports and Requirements Section, and the Counterterrorism Analysis Section. The bureau has also increased the number of intelligence analysts significantly. In an annual report on terrorism in the United States and overseas, the FBI revealed that anti-terrorism efforts resulted in 14 recorded preventions from 2002 through 2005. The discovery of nation al security threats and the prevention of terrorist attacks continue to be the FBI’s highest priority. FURTHER READINGS FBI Website. Available online at www.fbi.gov (accessed May 17, 2009). Anderson, Dale. 2010. The FBI and White-Collar Crime. Broomall, PA: Mason Crest. Grayson, Robert. 2009. The FBI and Cyber Crimes. Broomall, PA: Mason Crest. Jeffreys, Diarmuid. 2001. The Bureau: Inside the Modern FBI. Replica Books. Kessler, Ronald. 1993. The FBI: Inside the World’s Most Powerful Law Enforcement Agency. New York: Pocket Books. Schilling, John W. 2008. Undercover: How I Went from Company Man to FBI Spy–and Uncovered the Worst Healthcare Fraud in U.S. History. New York: American Management Association. Shapiro, Howard M. 1994. “The FBI in the 21st Century.” Cornell International Law Journal. 28. Thomas, William. 2010. How to Become an FBI Agent. Broomall, PA: Mason Crest. CROSS REFERENCES Forensic Science; Justice Department. FEDERAL COMMUNICATIONS COMMISSION The Federal Commun ications Commission (FCC) regulates interstate and foreign commu- nications by radio, television, wire, satellite, and cable television. The FCC oversees the develop- ment and operation of broadcast services and the provision of nationwide and worldwide tele- phone and telegraph services. It also oversees the use of communications for promoting the safety of life and property and for strengthening the national defense. The FCC maintains a compre- hensive Website: www.fcc.gov The Federal Communications Commission (FCC) was created by the Communications Act of 1934 (47 U.S.C.A. § 151 et seq.) to regulate interstate and foreign communications by wire and radio in the PUBLIC INTEREST. The scope of its regulation includes radio and television broadcasting; telephone, telegraph, and cable television operation; two-way radio and radio operation; and satellite communication. The FCC is composed of five members who are GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION FEDERAL COMMUNICATIONS COMMISSION 363 appointed by the president. Only three of the commissioners may be members of the same political party at any given time. A review board and an office of general counsel assist the commission. In addition, administrative law judges conduct evidentiary adjudicatory hearings and write initial decisions. In January 2002, the FCC announced a major restructuring of several of its bureaus, reducing the number of bureaus from seven to six and renaming several of them. Media Bureau The Media Bureau combines the functions of the Mass Media and Cable Services Bureaus. The Mass Media Bureau regulates the following services: amplitude modulation (AM), frequency modulation (FM), television, low-power televi- sion, translator, instructional television and related broadcast auxiliary, and direct-broadcast satellite. The Media Bureau issues construction permits, operating licenses, and renewals or transfers of such broadcast licenses except for broadcast auxiliary services. The bureau also oversees compliance by broadcasters with sta- tutes and FCC policies. Based on its recommen- dations, the FCC ordered all television stations to stop broadcasting analog signals in 2009 and begin broadcasting digital signals. The division of the Media Bureau (formerly organized as the Cable Services Bureaus) develops, recommends, and administers policies and programs for the regulation of cable television systems. It advises the FCC on the development and regulation of cable television. Among its other responsibilities, the bureau investigates complaints from the public; coor- dinates with state and local authorities in matters involving cable television systems; and advises the public, other government agencies, and industry groups on cable television regula- tion and related matters. Wireline Competition Bureau The COMMON CARRIER Bureau was renamed the Wireline Competition Bureau in 2002. This bureau regulates interstate common carrier communications by telephone. Common car- riers include companies, organizations, and individuals providing communications services to the public for hire, which must serve all who wish to use them at established rates. In providing interstate communications services, common carriers may employ landline wire or electrical or optical cable facilities. Wireless Telecommunications Bureau The Wireless Telecommunications Bureau administers all domestic commercial and private wireless telecommunications programs and poli- cies. Commercial wireless servicesinclude cellular, paging, personal, specialized mobile radio, air- ground, and basic exchange telecommunica- tions. Private wireless services include land mobile radio (including public safety, industrial, land transportation, and business), broadcast auxiliary, operational fixed microwave and point-to-point microwave, and special radio telecommunica- tions. The Wireless Telecommunications Bureau also implements laws and treaties covering the use of radio for the safety of life and property at sea and in the air and administers commercial and amateur radio operator programs. International Bureau The International Bureau manages all FCC international telecommunications and satellite programs and policies and represents the FCC at international conferences, meetings, and negotiations. The International Bureau consists of three divisions: Telecommunications, Satel- lite and Radiocommunication, and Planning and Negotiations. An FCC employee hooks up a digital converter box to a television in preperation for the transition from analog to digital cable, which went into effect on June 12, 2009. AP IMAGES GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION 364 FEDERAL COMMUNICATIONS COMMISSION The Telecommunications Division develops and administers policies, rules, and procedures for the regulation of telecommunications facilities and services under section 214 of the Commu- nications Act (47 U.S.C.A. § 153 et seq.) and Cable Landing License Act (47 U.S.C.A. § 34 et seq.). In addition, the division develops and administers regulatory assistance and training programs in conjunction with the administra- tion’s Global Information Infrastructureinitiative. The Satellite and Radiocommunication Di- vision develops and administers policies, rules, standards, and procedures for licensing and regulating satellite and earth station facilities, both international and domestic. The Planning and Negotiations Division represents the FCC in negotiations with Mexico, Canada, and other countries on international agreements that coordinate radio frequency assignments to prevent and resolve internation- al radio interference involving U.S. licensees. Consumer and Governmental Affairs Bureau The Consumer Information Bureau was renamed the Consumer and Governmental Affairs Bureau in 2002. This bureau is a one- stop-shopping place for information regard ing FCC policies, programs, and activities. The Consumer Centers, located in Washington, D.C., and Gettysburg, Pennsylvania, also help individuals file informal complaints on a variety of issues, including slamming (switching ser- vices without customer approval or knowledge); cramming (unauthorized, misleading, or decep- tive charges for services not requested or not received); and disability access. The Consumer Education Office (CEO) works with consumer organizations and government agencies con- cerned with FCC regulatory activities. CEO pre- pares informational materials and conducts forums to educate the public about important FCC regulatory programs and to solicit feed- back on issues regulated by the commission. This office also arranges briefings and seminars for educational institutions, consumer organi- zations, and other interested groups. The Disability Rights Office (DRO) ensures that FCC actions and policies enable people with disabilities to have the same access as everyone else to telecommunications. DRO helps to implement mandates for nationwide telephone- relay services; access to telecommunications wireline and wireless products and services; televised emergency access; and closed caption- ing on television programming. Office of Engineering and Technology The Office of Engineering and Technology administers the Table of Frequency Allocations, which specifies the frequency ranges that various radio services may use. The office also adminis- ters the Experimental Radio Service and the Equipment Authorization Program. The Experi- mental Radio Service permits the public to experiment with new uses of radio frequencies. This allows the development of radio equipment and exploration of new radio techniques prior to licensing under other regulatory programs. The Equipment Authorization Program includes procedures for agency approval of radio equip- ment importation, marketing, and use. Compliance Much of the investigative and enforcement work of the FCC is carried out by the commission’s field staff. The Field Operations Bureau has six regional offices and 35 field offices. It also operates a nationwide fleet of mobile radio direction- finding vehicles for technical enforcement pur- poses. The field staff detects radio violations and enforces rules and regulations. The radio spec- trum is under continuous surveillance to detect unlicensed operation and activities or noncon- forming transmissions, and to furnish radio bearings on ships and planes in distress. The Field Operations Bureau also administers public service programs aimed at educating FCC licensees, industry, and the general public to improve compliance with FCC rules and regulations. Telecommunications Act of 1996 In a sweeping overhaul of the Communications Act of 1934, Congress passed the Telecommu- nications Act of 1996 (47 U.S.C.A. § 51 et seq.) in February 1996. The legislation was designed to deregulate the $500-billion- per-year tele- communications industry and to encourage competition, thus freeing telephone companies, broadcasters, and cable television operators to enter one another’s markets in order to secure lower prices and higher-quality services for U.S. consumers. Critics of the legislation charged that it would increase the cost of cable TV and telephone service and would encourage monop- olization of the media. Supporters of the legislation claimed that it would foster compe- tition and make available new services such as GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION FEDERAL COMMUNICATIONS COMMISSION 365 advanced wireless communications, home banking, and interactive television. By 2009, both sides could claim that parts of their predictions had come true. Critics of the act have noted that the cable television industry has gone through a steady stream of MERGERS AND ACQUISITIONS,resultingin just a few major cable companies dominating the cable industry in the United States. Cable bills have steadily risen since the passage of the 1996 act. Advocates of deregulation point out that wireless communication has continued to grow in a competitive marketplace and that consumers have more choices and lower costs. As for radio, critics have charged that the relaxation of owner- ship rules by the FCC has resulted in the acquisition of many stations in one market by just one company. As a consequence, local program- ming has given way to national programming for entire radio chains. The 1996 act contained provisions that went beyond deregulation to include restrictions on the distribution of indecent material. For example, Title V of the act, known as the Communications Decency Act of 1996 (CDA) (47 U.S.C.A. § 223[a]-[h]), forbade the trans- mission of indecent material over computer networks such as the INTERNET unless steps were taken to keep the material away from children, and required that new television sets be equipped with an electronic block that would allow viewers to prevent children from viewing objectionable programming. In February 1996, two separate actions were filed in U.S. district court in Philadelphia challenging the constitu- tionality of the CDA. The first suit reached the Supreme Court in 1997. The Court, in Reno v. ACLU v. Reno, 521 U.S. 844, 17 S. Ct. 2329, 2334; 138 L. Ed. 2d 874 (1997), struck down the anti-decency provisions of the CDA. In another lawsuit, Playboy Entertainment Group, owner of the Playboy cable television channels, successfully challenged the act’srequire- ment that cable companies block audio and video transmissions of sexually explicit programs. Playboy had argued that the blocking and time requirements imposed on cable operators violated the FIRST AMENDMENT and EQUAL PROTECTION. The FCC began to aggressively suppress OBSCENITY on broadcast television in 2003. It had a long-standing policy against the use of indecent language, but it did not prosecute one-time occurrences. The commission rethought its position after viewing presenters and award- winners at a series of television awards shows in 2002 and 2003. It made three significant findings in changing the policy: (1) bleeping/delay systems technology had advanced; (2) the F-Word and the S-Word always invoke a coarse sexual or excretory image, making it irrelevant w hether a word was used as an expletive or a literal description; and (3) the new policy’s “contextual” approach to indecency w as better than the previous “categorical” approach, which offered broadcasters virtual immunity for the broadcast of fleeting expletives. Armed with this new policy, in 2003 the FCC issued a notice of apparent liability against the Fox network for allowing Cher to use the F-Word during a music awards show and for allowing Nicole Richie to utter both the F- and S-Words. Under the Federal Communications Act, the commission could impose large fines on stations and even revoke station licenses. After hearing evidence from Fox, the commission entered an order finding the broadcasts in question indecent, but it did not impose sanctions. Nevertheless, Fox, along with ABC, CBS, and NBC, appealed the order to the Second CIRCUIT COURT of Appeals. The networks contended that the new policy was arbitrary and capricious and that it raised First Amendment CENSORSHIP concerns. The Supreme Court, in Federal Communica- tions Commission v. Fox Television Station, __U.S. __, 129 S. Ct. 1800, __L.Ed.2d__ (2009), found the policy l egitimate. The Court left for another day whether the FCC policy was constitutional under the First Amendment. Following this ruling it ordered the Third Circuit Court of Appeals to re-examine its ruling in the contro- versial Janet Jackson wardrobe malfunction case. The appeals court had overturned the FCC’s $550,000 fine against CBS for the 2004 Super Bowl half-time incident in which Jackson briefly exposed one of her breasts. FURTHER READINGS Carter, T. Barton. 2006. Mass Communications Law in a Nutshell.6th ed. St. Paul, MN: West Group. U.S. Government Manual Website. Available online at www. gpoaccess.gov/gmanual (accessed May 25, 2009). Zarkin, Kimberly, and Michael Zarkin. 2006. The Federal Communications Commission. New York: Greenwood Press. CROSS REFERENCES Censorship; Fairness Doctrine. GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION 366 FEDERAL COMMUNICATIONS COMMISSION FEDERAL COURTS The federal courts are the U.S. judicial tribunals created by Article III of the Constitution, or by Congress, to hear and determine justiciable controversies. The Constitution created the Supreme Court and empowered Congress, in Article I, Section 8, to establish inferior federa l courts. The authority of federal courts is limited to that given to them by the federal statutes that created them. Federal courts exist independently of the system of courts in each state that adjudica te controversies that arise pursuant to the laws of that state. Legislative and Constitutional Courts Constitutional courts are established pursuant to Article III of the Constitution, which states, “The judicial Power of the United State s, shall be vested in one supreme Court, and in such inferior Courts as the Congress may from time to time ordain and establish.” These courts have only the powers specified in Article III. They can hear only cases or controversies; their judges hold office for life, as long as they are not guilty of judicial misconduct; and their judges’ salary cannot be reduced while those judges serve in office. The Supreme Court, the U.S. courts of appeal (including the U.S. Court of App eals for the Federal Circuit), the U.S. district courts, and the Court of International Trade are constitu- tional, or Article III, courts. Legislative courts are known as Article I courts because they are created pursuant to the authority given to Congress in Article I, Section 8, Clause 9, of the Constitution. That section empowers Congress “To constitute Tribunals inferior to the Supreme Court.” No restrictions exist as to the type of court that must be created. Such courts can possess whatever jurisdiction Congress deems appropriate. Judges can be appointed by specific terms of years, and salaries can be adjusted in response to the changing economy. In earlier times, legislative courts were the best means to bring justice into the territories. TERRITORIAL COURTS heard all kinds of cases that the constitutional courts could not hear, such as The U.S. Federal Court System Court of Appeals for the Federal Circuit Supreme Court Court of Appeals (12 geographic circuits) Appeals from state courts 50 states Court of Federal Claims Patent and Trademark Office Secretary of Commerce Court of International Trade District of Columbia, Northern Mariana Islands, Guam, Virgin Islands 88 districts in 50 states and Puerto Rico Bankruptcy Appellate Panels Tax Court Bankruptcy courts Administrative agencies Merit System Protection Board Administrative agencies District courts with federal and local jurisdiction District courts with federal jurisdiction only Special trial courts with nationwide jurisdiction over certain types of cases Court of International Trade, U.S. Court of Federal Claims Court of Appeals for the Armed Forces Army, Navy-Marine, Coast Guard, and Air Force Courts of Criminal Appeals Court of Veterans Appeals ILLUSTRATION BY GGS CREATIVE RESOURCES. REPRODUCED BY PERMISSION OF GALE, A PART OF CENGAGE LEARNING. GALE ENCYCLOPEDIA OF AMERICAN LAW, 3 RD E DITION FEDERAL COURTS 367 DIVORCE cases. Once a territory became a state, cases that fell within the jurisdiction of the federal court would be transferred to the federal court established in the new state; all other cases would be heard in the courts of the newly created state. The U.S. TAX COURT and the U.S. Court of Federal Claims are legislative courts. Although the Court of Military Appeals was created pursuant to Article I, it is not part of the judiciary but functions as a military tribunal to make rules, to regulate the ARMED SERVICES, and to review courts-martial. Structure District courts function as ge neral trial-level courts in the federal system. An appeal from a judgment rendered in a district court is taken to the court of appeals in the judicial circuit in which the district court sits. The Supreme Court hears appeals from a court of appeals pursuant to its mandatory jurisdiction, CERTIORARI juris- diction, and its rarely used jurisdiction to decide questions of law certified to it by the court of appeals. In addition, specialized federal courts such as the U.S. Court of Federal Claims, the U.S. Court of International Trade, the U.S. Court of Appeals for the Federal Circuit, and the U.S. Tax Court entertain and determine cases that involve only certain areas of law. Geographic Organization Every judicial district has at least one district court judge, and most have from one to three district court judges. The number of judges can be changed by Congress when the need exists. Each judge may preside alone, or, when there are two or more judges, all may hold sessions of court at the same time. The decisions made in federal district courts are reviewable by the court of appeals in each circuit. All the territory of the United States, Puerto Rico, Guam, and the Virgin Islands is divided into 12 judicial circuits. These 12 circuits are further subdivided into judicial districts. Every state has at least one judicial district. All the territory of Idaho except Yellowstone National Park makes up one judicial district, for example. All of Yellowstone National Park is within the judicial district of Wyoming, including the parts of the park that are in Idaho. The number of districts in each circuit depends on the size of the area and the number of people living within it. Large states require more than a single district. California, New York, and Texas, for example, have four judicial districts. Judicial districts for large areas are further separated into divisions. Federal law establishes the number of circuit judges and the place where court is held in each circuit. Congress can change both the number and location at any time because the courts of appeals, like the district courts, are created by Congress. The Federal Courts Improvement Act of 1982 (Pub. L. 97–164, Apr. 2, 1982, 96 Stat. 25) created the U.S. Court of Appeals for the Federal Circuit, which hears appeals not based on regional boundaries like the other courts of appeal, but involving special topics, such as public contracts and patents, where the uniform application of legal principles nationwide is highly desirable. The 12 regional courts of appeals hear appeals from the district courts and many decisions of federal administrative agencies. Cases are usually heard by three judges, but each circuit arranges to hear some cases EN BANC, that is, with all the circuit judges of that circuit sitting together, hearing or rehearing the case and ruling by majority vote. A majority of the judges in regular active service in the circuit can order a case heard en banc at any time. This order occurs usually if the decision in the case is likely to have a significant effect on issues in pending cases, such as when the case involves an important question of constitutionality, juris- diction, or the right to appeal. The Court of Appeals for the Federal Circuit has appellate jurisd iction derived from the merger of the former COURT OF CLAIMS and the Court of Customs and Patent Appeals in cases involving actions against the government, public contracts, and patents. It also hears appeals from the Court of International Trade, the PATENT AND TRADEMARK OFFICE,theMERIT SYSTEM Protection Board, and other agencies. This court is intended to provide for the uniform application and enforcement of law in cases that Congress deems should be treated uniformly, but which under the former appel- late system were often decided differently from circuit to circuit. As a result of its topical appellate jurisdiction, the Court of Appeals for the Federal Circuit significantly reduces the number of appeals from such decisions to the Supreme Court. GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION 368 FEDERAL COURTS . FEDERAL BUREAU OF INVESTIGATION GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION bail in solitary confinement. A report by the Department of Justice called the FBI’s investi- gation of the Lee case. composed of five members who are GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION FEDERAL COMMUNICATIONS COMMISSION 363 appointed by the president. Only three of the commissioners may be members of. investigating ESPIONAGE, SABO- TAGE , SEDITION, and violations of the Selective Service Act of 1917 (Act May 18, 1917, c. 15, 40 Stat. 76 [Comp. Stat. 1918, § 2 044 a-2 044 k]). In 1919, the bureau broadened