In the Supreme Court of the United States
CITY NEWS AND NOVELTY, INC., PETITIONER
v.
CITY OF WAUKESHA
ON WRIT OF CERTIORARI TO THE
COURT OF APPEALS OF WISCONSIN, DISTRICT II
BRIEF FOR THE UNITED STATES
AS AMICUS CURIAE SUPPORTING RESPONDENT
SETH P. WAXMAN
Solicitor General
Counsel of Record
DAVID W. OGDEN
Assistant Attorney General
EDWIN S. KNEEDLER
Deputy Solicitor General
LISA SCHIAVO BLATT
Assistant to the Solicitor
General
MICHAEL JAY SINGER
HOWARD S. SCHER
Attorneys
Department of Justice
Washington, D.C. 20530-0001
(202) 514-2217
QUESTION PRESENTED
Whether the First Amendment requires a municipal ordinance that governs
the licensing of adult-oriented businesses to ensure that a license remains
in effect until there has been a judicial decision on the validity of the
city's decision not to renew the license.
In the Supreme Court of the United States
No. 99-1680
CITY NEWS AND NOVELTY, INC., PETITIONER
v.
CITY OF WAUKESHA
ON WRIT OF CERTIORARI TO THE
COURT OF APPEALS OF WISCONSIN, DISTRICT II
BRIEF FOR THE UNITED STATES
AS AMICUS CURIAE SUPPORTING RESPONDENT
INTEREST OF THE UNITED STATES
This case presents the question whether a licensing scheme that regulates
businesses that seek to display or sell adult-oriented material protected
by the First Amendment must guarantee an automatic stay of a decision denying
a licensing renewal pending judicial review, where the decision is based
on considerations other than the CONTENT of the material that is displayed
or sold. The National Park Service (NPS) within the United States Department
of the Interior is charged with promoting and regulating the use of the
National Parks, some of which are often used for special events and demonstrations,
such as marching, picketing, religious services, and other activities protected
under the First Amendment. 16 U.S.C. 1 (1994 & Supp. IV 1998); Clark
v. Community for Creative Non-Violence, 468 U.S. 288, 289-290 (1984). NPS
has promulgated regulations that provide that demonstrations and special
events in the National Capital Region generally may not be held without
a permit. 36 C.F.R. 7.96(g)(2). The NPS has promulgated time, place, and
manner restrictions governing demonstrations and special events. 36 C.F.R.
7.96(g)(5). NPS's regulations also set forth procedures for the application,
extension, or revocation of a permit, 36 C.F.R. 7.96(g)(3), (4)(iii), (5)(iv)
and (6), but those regulations do not require a judicial decision on the
merits before the denial takes effect.
The Forest Service within the United States Department of Agriculture has
similar regulations for the issuance, renewal, and termination of special-use
permits that govern non-commercial activity conducted by groups of 75 or
more persons on lands in the National Forest System. 36 C.F.R. 251.50, 251.51,
251.54, 251.56, 251.60, 251.64. Those regulations are designed to "provid[e]
a reasonable administrative system for allocating space among scheduled
and existing uses and activities, address[] concerns of public health and
safety, and control[] or prevent[] adverse impacts on forest resources."
60 Fed. Reg. 45,258 (1995). The United States therefore has a significant
interest in the Court's resolution of the question presented.
STATEMENT
1. Respondent, the City of Waukesha, Wisconsin, determined that adult-oriented
establishments contribute to declining property values and an increased
level of criminal activity in surrounding communities. Waukesha, Wis., Mun.
CODE (Mun. Code) § 8.195 (1995) (preamble).1 In order to combat those
secondary effects, respondent enacted an ordinance that provides that no
"adult oriented establishment shall be operated or maintained in the
City without first obtaining a license to operate issued by the City."
Id. § 8.195(2). The ordinance specifies minimum age qualifications
for license applicants, id. § 8.195(4)(a)(1) and (b)(1), and prohibits
the issuance of a license to any applicant who violated respondent's ordinance
within the preceding five years, id. § 8.195(4)(a)(2) and (b)(2). The
ordinance further regulates the physical layout of adult-oriented establishments
that have a "booth, room or cubicle for the private viewing of any
adult entertainment." Id. § 8.195(9). The ordinance bars adult-oriented
establishments from allowing minors to enter such establishments, id. §
8.195(10)(c); requires such establishments to maintain the premises in "a
clean and sanitary manner," id. § 8.195(10)(d); and requires adequate
light- ing for "the public portions of the establishment," id.
§ 8.195(10)(e).
The ordinance provides that every license terminates after one year from
the date of issuance. Mun. § 8.195(7)(a). An application for renewal
of a license must be filed "not later than 60 days before the license
expires." Ibid. The ordinance sets forth the procedures for obtaining
an initial license, which respondent and the courts below construed to apply
as well to obtaining a renewal of a license. Pet. App. 13-14. Under those
procedures, the city clerk, upon receipt of an application for license renewal,
must notify the applicant within 21 days whether the renewal has been granted
or denied, and the clerk must state in writing the reasons for any denial.
Mun. § 8.195(3)(c) and (d).
An unsuccessful renewal applicant then has two options. First, under the
ordinance, the applicant has ten days after being notified of the denial
to request a public hearing, which must be held within ten days of the request.
Mun. § 8.195(3)(d).2 Second, the applicant may follow the administrative
procedures under state law that generally govern the "granting, denial,
renewal, nonrenewal, revocation or suspension of a license." Id. §
8.195(11); see Wis. Stat. Ann. (Wis. Stat.) § 68.02(2) (West 1999).
Under those alternative procedures, an unsuccessful applicant for a license
renewal has 30 days to request the City to review its initial determination.
Id. § 68.08. The City then has 15 days to conduct its review and issue
a decision. Id. § 68.09(3). The applicant may appeal an adverse decision
within 30 days, id. § 68.10(1) and (2), and the City must provide a
hearing within 15 days of receipt of the notice of appeal. Id. § 68.11(1).
The City must issue its final determination within 20 days after the hearing
is completed. Id. § 68.12(1). Finally, whether the City renders a final
decision under its ordinance or alternatively under state law, an unsuccessful
renewal applicant has a right to obtain judicial review of the City's final
decision by filing a certiorari ACTION in state court within 30 days of
receipt of the City's decision. Id. §§ 68.13(1) and 781.01 (Supp.
1999); see also Mun. §§ 2.11(1), 8.195(11).
2. Petitioner is the operator of an adult-oriented establishment located
in the City of Waukesha which makes available to its customers sexually
explicit materials, including books, magazines, and videotapes. Petitioner's
establishment also provides viewing booths in which customers may view sexually
explicit videotapes. Pet. App. 3. On November 15, 1995, petitioner applied
for renewal of its license, which was due to expire on January 15, 1996.
Id. at 7. On December 19, 1995, the City's Common Council passed a resolution
denying petitioner's renewal application because petitioner had violated
the licensing ordinance by permitting minors to loiter on the premises,
by failing to maintain an unobstructed view of the viewing booths, and by
allowing patrons to engage in sexual conduct inside the booths. Ibid.; see
also id. at 76-83.
Petitioner requested review by the Common Council, which affirmed the decision
on January 22, 1996. Petitioner then invoked the administrative review procedures
under Wisconsin Statutes Annotated Section 68.10 and, on June 28, 1996,
the City of Waukesha Administrative Review Appeals Board affirmed the Common
Council's decision. Pet. App. 8, 72-73.3
Petitioner filed in the Circuit Court for Waukesha County a certiorari under
Wisconsin Statutes Annotated Sections 68.13 and 781.01 (West Supp. 1999)
challenging respondent's decision not to renew its license. Compl. No. 96
CV 1427 (Cir. Ct.). The Circuit Court affirmed respondent's decision. Pet.
App. 55-71. The court rejected petitioner's contention that the licensing
scheme conferred unbridled discretion upon city officials to grant or deny
an application for license renewal. Id. at 57-60. The court also held that
respondent's licensing scheme required an administrative decision to be
issued within definite time limits, id. at 60-62, and that, under the scheme,
"most of the [administrative] review process can be completed prior
to the expiration of the one year term of the license," id. at 64.
The court also concluded that the ordinance adequately provided "access
to prompt judicial review under Wisconsin Statute Chapter 68." Ibid.
3. The Court of Appeals of Wisconsin affirmed in part and reversed in part.
Pet. App. 1-43. The court observed (id. at 9-10) that a plurality of this
Court in FW/PBS, Inc. v. City of Dallas, 493 U.S. 215, 225 (1990), concluded
that the First Amendment bars a licensing scheme regulating sexually-oriented
business from placing "unbridled discretion in the hands of a government
official or agency" who decides whether to grant or withhold a license.
The court>lso observed that the plurality concluded that the "licensing
decision must be made 'within a specified and reasonable time period during
which the status quo is maintained,' and that "a regulatory scheme
must provide for 'prompt judicial review' in the event that a license is
erroneously denied." Pet. App. 10 (quoting FW/PBS, 493 U.S. at 228).4
Applying those principles, the Court of Appeals held that respondent's ordinance
"contains specific guidelines for renewal" and therefore does
not confer "unbridled discretion" on city officials in making
a licensing decision. Pet. App. 12. The court further held that the ordinance
preserves the status quo during the period in which a licensor makes a decision.
Id. at 19. The court reasoned that the ordinance requires an applicant to
apply for a license renewal at least 60 days before the expiration of the
license, and the ordinance requires city officials to approve or deny the
application within 21 days. Ibid.
The court held, however, that Section 8.195(3)(d), which required respondent
to hold a public hearing within ten days of the applicant's request but
imposed no further limitations, "create[d] a risk of an indefinite
delay by putting an applicant at the mercy of the licensing body,"
because it failed to direct respondent "as to what it must do following
the hearing or when it must presumably take action in response to the hearing."
Pet. App. 25-26. The court nonetheless held that severance of the invalid
hearing provision "le[ft] intact an otherwise complete licensing scheme,"
because the ordinance incorporated the alternative administrative review
procedures under Chapter 68 of the Wisconsin Statutes. Id. at 28. The court
determined that Chapter 68 "sets forth narrow, definite and objective
standards for bringing an appeal." Ibid.
The Court of Appeals also rejected petitioner's contention that the ordinance
is constitutionally defective for failing to guarantee a judicial decision
upholding the denial of a license before the denial takes effect. The court
acknowledged (Pet. App. 20) that Freedman v. Maryland, 380 U.S. 51, 59 (1965),
held that a licensing scheme that involved the direct censorship of expressive
material must "assure a prompt final judicial decision." The court
noted, however, that "more recently in FW/PBS the Court appears to
have relaxed this requirement." Pet. App. 20. The court explained that
the plurality in FW/PBS stated that "expeditious judicial review of
[the licensing] decision must be available," and that "there must
be the possibility of prompt judicial review in the event that the license
is erroneously denied." Ibid. (quoting 493 U.S. at 227, 228 (emphasis
added by Court of Appeals)). The court held that "prompt access or
availability of judicial review satisfies First Amendment protections,"
reasoning that "a municipality does not have the authority to direct
a state judicial court to issue a decision within a specified period of
time." Id. at 22. The court accordingly found that the city's ordinance
is constitutional because it permits an aggrieved applicant to file a certiorari
action to obtain judicial review of the city's final determination. Id.
at 23-24.5
The Wisconsin Supreme Court denied further review. Pet. App. 54.
SUMMARY OF ARGUMENT
I. A. Businesses that are subject to respondent's licensing scheme have
a right to judicial review of a final municipal decision not to grant or
renew a license. Mun. Code §§ 2.11(1), 8.195(11); Wis. Stat. §
68.13(1). A court reviewing such a decision also may stay the city's licensing
decision if the city declines to stay the effect of its own decision and
the applicant can demonstrate that it is entitled to temporary relief pending
judicial review. Wis. Stat. § 781.02 (Supp. 1999); id. § 813.02(1)(a)
(1994 & Supp. 1999). Under those procedures, a court may fully protect
the First Amendment interests of a license applicant that otherwise could
not operate its business pending judicial review of the city's licensing
decision. In light of the procedure for issuance of a stay in particular
cases where the requisite showing has been made, respondent has not demonstrated
an adequate justification for a rule that would require an automatic stay
of all decisions denying an applicant a license renewal.
B. Any benefit to be served by an automatic stay rule would be outweighed
by the harm to a city's interest in enforcing a licensing scheme to control
the secondary effects of adult-oriented establishments. A city has a substantial
interest in imposing time, place, and manner restrictions on sexually-oriented
businesses to eradicate adverse secondary effects. City of Renton v. Playtime
Theatres, Inc., 475 U.S. 41, 47 (1986); Young v. American Mini Theatres,
Inc., 427 U.S. 50 (1976). That interest would be significantly impaired
by a rule that automatically barred a city's licensing decision from going
into effect until a court has resolved any challenge to the decision. Such
a rule also would be particularly pernicious in cases in which the city
has determined that a renewal applicant has repeatedly violated the licensing
scheme and is therefore not qualified to operate an adult-oriented establishment.
C. This Court's First Amendment precedents do not require that a city's
licensing scheme provide for an automatic stay of all adverse licensing-renewal
decisions. The Court has required a prior judicial determination on the
merits of a censorship decision to guard against the risk that censoring
officials will ban protected speech and the risk that a censored speaker
will refrain from bringing a judicial challenge to a particular censorship
decision. Freedman v. Maryland, 380 U.S. 51, 57-59 (1965); FW/PBS, Inc.
v. City of Dallas, 493 U.S. 215, 229 (1990) (plurality opinion) (discussing
Freedman). Neither of those dangers is inherent under a licensing scheme
that is not aimed at the suppression of speech, but is designed to combat
the secondary effects of sexually-oriented businesses. City officials under
such an ordinance do not condition a license upon the review or approval
of the content of an applicant's materials. Rather, they determine whether
an applicant is qualified to hold a license. In those circumstances, a decision
that an applicant is not entitled to renewal of its license is akin to a
variety of administrative decisions to which a court applies a deferential
standard of review, and which may be stayed pending judicial review only
when temporary relief is found to be warranted in the circumstances of the
particular case. See Administrative Procedure Act, 5 U.S.C. 705-706; Fed.
R. Civ. P. 65(a) and (b).
D. An automatic stay rule cannot be justified on the ground that a court
should resolve any facial challenge to a municipal licensing scheme before
a licensing decision takes effect. Applicants may bring a facial challenge
to a city's ordinance without first exhausting the city's administrative
review procedures. Nor is an automatic stay rule justified on the premise
that city officials might be hostile to the First Amendment rights of license
applicants. Respondent's licensing determinations are made without regard
to the content of any material sought to be displayed or sold by an applicant,
and the ordinance contains objective criteria that govern whether city officials
will renew an applicant's license. In any event, there has been no showing
that city officials act in bad faith in administering municipal licensing
schemes generally or that respondent's officials have done so in this case.
II. Petitioner's challenges to the alternative administrative review procedures
under state law are not properly before this Court. Petitioner's contentions
were neither timely raised nor passed upon by the Wisconsin Court of Appeals,
and similarly were not raised in the petition for a writ of certiorari.
There is in any event no occasion for this Court to review petitioner's
contentions because respondent has recently amended the administrative review
procedures under its ordinance.
ARGUMENT
I. THE FIRST AMENDMENT DOES NOT REQUIRE A MUNICIPAL LICENSING ORDINANCE
THAT REGULATES SEXUALLY-ORIENTED BUSINESSES TO GUARANTEE AN AUTOMATIC STAY
OF THE DENIAL OF A LICENSE RENEWAL PENDING JUDICIAL REVIEW
In Freedman v. Maryland, 380 U.S. 51, 58 (1965), this Court held that a
"noncriminal process which requires the prior submission of a film
to a censor avoids constitutional infirmity only if it takes place under
procedural safeguards designed to obviate the dangers of a censorship system."
"First, the burden of proving that the film is unprotected expression
must rest on the censor." Ibid. Second, "the exhibitor must be
assured, by statute or authoritative judicial construction, that the censor
will, within a specified brief period, either issue a license or go to court
to restrain showing the film," id. at 58-59, and that "[a]ny restraint
imposed in advance of a final determination on the merits must similarly
be limited to preservation of the status quo for the shortest fixed period
compatible with sound judicial resolution," id. at 59. Third, the censorship
scheme "must also assure a prompt final judicial decision, to minimize
the deterrent effect of an interim and possibly erroneous denial of a license."
Ibid.
In FW/PBS, Inc. v. City of Dallas, 493 U.S. 215 (1990), this Court considered
whether the procedural requirements imposed by Freedman applied to a municipal
licensing ordinance that regulated sexually-oriented businesses in order
to eradicate the adverse secondary effects of such businesses. Id. at 220.
A plurality of the Court described the three Freedman safeguards as follows:
(1) any restraint prior to judicial review can be imposed only for a specified
brief period during which the status quo must be maintained; (2) expeditious
judicial review of that decision must be available; and (3) the censor must
bear the burden of going to court to suppress the speech and must bear the
burden of proof once in court.
Id. at 227. In a series of opinions, the Court in FW/PBS held that only
the first two of those safeguards applied to the city's licensing scheme.
With respect to the first two safeguards, a plurality of the Court concluded
that, under the city's ordinance, "the licensor must make the decision
whether to issue the license within a specified and reasonable time during
which the status quo is maintained." Id. at 228. The plurality also
concluded that "there must be the possibility of prompt judicial review
in the event that the license is erroneously denied." Ibid. The plurality
found that the licensing scheme in that case failed those two requirements,
because it provided neither "an effective limitation on the time within
which the licensor's decision must be made" nor "an avenue for
prompt judicial review so as to minimize suppression of the speech in the
event of a license denial." Id. at 229. Justice Brennan, joined by
Justices Marshall and Blackmun, concurred in the judgment, concluding that
because in their view "all three of the procedural safeguards specified
in" Freedman should be applicable, id. at 239, the city should also
"bear the burden of going to court and proving its case before it may
permissibly deny licenses to First Amendment-protected businesses,"
id. at 240.
With respect to the third Freedman requirement, the plurality concluded
that "the First Amendment does not require that the city bear the burden
of going to court to effect the denial of a license application or that
it bear the burden of proof once in court." FW/PBS, 493 U.S. at 230.
The plurality explained that the city's ordinance was "significantly
different from the censorship scheme examined in Freedman," because
unlike in Freedman, where the government "engaged in direct censorship
of particular expressive material," the city officials in FW/PBS administered
the licensing ordinance without regard to the content of any protected speech.
Id. at 229. The plurality further reasoned that the city's ordinance did
not pose the risk that those seeking a license would be deterred from challenging
an adverse licensing decision in court. Id. at 229-230. The plurality thus
concluded that the First Amendment is satisfied when there is a "[l]imitation
on the time within which the licensor must issue the license as well as
the availability of prompt judicial review." Id. at 230. Justice White,
joined by the Chief Justice, disagreed with the plurality's application
of Freedman, concluding that none of Freedman's requirements applied to
the city's ordinance. Id. at 244-249. Justice Scalia, in his dissent, reasoned
that the licensing scheme was not subject to the First Amendment. Id. at
250-264. Those three Justices therefore necessarily agreed with the plurality's
conclusion that the city did not bear the burden of going to court to enforce
its licensing scheme and did not bear the burden of proof once in court.
Neither Freedman nor FW/PBS addressed the precise issue presented in this
case-whether, as petitioner urges (Br. 43-49), the First Amendment requires
a municipal licensing scheme that regulates sexually-oriented businesses
to provide for an automatic stay of the city's licensing decision pending
a judicial determination on the merits.6 In our view, the answer to that
question is no. Under respondent's ordinance, a licensing decision is amenable
to prompt judicial review, and a court has the authority in a particular
case to preserve the status quo pending judicial review of the city's decision
if the city declines to stay its own decision pending judicial review and
the applicant makes the showing required for interim relief. Those procedures
properly balance the First Amendment interests of applicants and the city's
competing interest in enforcing a licensing scheme to combat the secondary
effects of sexually-oriented business. Cf. Mathews v. Eldridge, 424 U.S.
319, 335 (1976) (Procedures necessary to satisfy due process depend on consideration
of "[f]irst, the private interest that will be affected by the official
action; second, the risk of an erroneous deprivation of such interest through
the procedures used, and the probable value, if any, of additional or substitute
procedural safeguards; and finally, the Government's interest, including
the * * * burdens that the additional or substitute procedural requirement
would entail.").
A. Respondent's Licensing Scheme Adequately Protects The First Amendment
Interests Of Applicants By Authorizing A Court To Stay The City's Licensing
Decision
1. Respondent's ordinance provides that a business subject to its licensing
scheme may obtain judicial review of a final municipal decision not to grant
or renew a license by filing a certiorari action in state court within 30
days of receipt of the city's decision. Mun. Code §§ 2.11(1),
8.195(11); Wis. Stat. § 68.13(1). "[T]he statutory review by certiorari
is a matter of right," and such an action "inquires into not only
the jurisdiction of the board or body making the determination but also
the merits of the determination." Browndale Int'l Ltd. v. Board of
Adjustment, 208 N.W.2d 121, 129 (Wis. 1973) (quoting State ex rel. Casper
v. Board of Trustees, 140 N.W.2d 301, 304 (Wis. 1966)), cert. denied, 416
U.S. 936 (1974). Thus, in a certiorari action, the reviewing court "may
affirm or reverse the final determination, or remand to the decision maker
for further proceedings consistent with the court's decision." Wis.
Stat. § 68.13(1).
Moreover, a business that has been denied a license renewal has two ways
in which it may obtain interim relief pending judicial review. First, it
may request the city to stay its own licensing decision pending judicial
review. Indeed, respondent granted that relief in this very case. Pet. Br.
10 n.11 ("[T]he City exercised its discretion to not enforce its licensing
requirement * * * while all relevant * * * judicial review was proceeding.");
cf. 5 U.S.C. 705 ("When an agency finds that justice so requires, it
may postpone the effective date of action taken by it, pending judicial
review.").
Second, a business denied a stay by the city may request the court to issue
an immediate stay of the decision if the business can demonstrate that it
is entitled to temporary relief pending judicial review. Wisconsin law expressly
provides that a court in a certiorari action may award "temporary relief
pending disposition of the action or proceeding." Wis. Stat. §
781.02 (Supp. 1999); cf. 5 U.S.C. 705 (reviewing court may postpone effective
date of agency action or preserve status or rights during judicial proceedings).
State law similarly allows a court to enter a temporary injunction to restrain
an act "[w]hen it appears from a party's pleading that the party is
entitled to judgment" and the commission of the act sought to be restrained
"during the litigation would injure the party." Wis. Stat. §
813.02(1)(a) (1994 & Supp. 1999); see Werner v. A.L. Grootemaat &
Sons, Inc., 259 N.W.2d 310, 314 (Wis. 1977) (party must show a "reasonable
probability of ultimate success on the merits" and "irreparable
harm").
Under those procedures, a court not only may review and reverse a decision
by respondent not to renew a license, but also may preserve the status quo
pending a judicial decision on the merits. Far from being "meaningless"
(Pet. Br. 48 (quoting Baby Tam & Co. v. City of Las Vegas, 154 F.3d
1097, 1101 (9th Cir. 1998)), the governing procedures permit a court in
a particular case to stay the effect of a decision denying a license renewal
if an applicant can demonstrate that it is likely to succeed on the merits
and that the city's decision would cause the applicant irreparable harm.
See Wis. Stat. § 813.02(1)(a) (1994 & Supp. 1999). Petitioner does
not challenge the proposition that, by preserving the status quo, such a
stay will fully protect the First Amendment rights of an applicant who has
been denied a license renewal.
2. Petitioner argues (Br. 45-49) that an automatic stay is required because
applicants that have been denied a license renewal always suffer irreparable
harm to their First Amendment or economic interests if they cannot operate
their businesses while a court is resolving a judicial challenge to the
city's decision. It is significant for purposes of First Amendment analysis,
however, that any harm to an adult-oriented business's interests in selling
or displaying expressive materials pending judicial review is not the product
of direct censorship of the materials based on their content, but rather
the incidental consequence of a decision based on the qualifications of
the applicant (including, here, its past conduct), without regard to the
content of the materials. See pp. 21-24, infra. Furthermore, petitioner
ignores the usual requirement that a party seeking a stay must demonstrate
both irreparable harm and a likelihood of success on the merits. Under respondent's
ordinance, the business will already have had an opportunity for a hearing
prior to the city's decision denying its application. This Court held in
FW/PBS that the First Amendment allows such a decision by the city to be
conclusive unless the applicant bears the burden of going to court to challenge
the decision. See pp. 12-13, supra. There accordingly is no reason why the
First Amendment should bar state law from requiring an applicant who chooses
to challenge the city's decision from also bearing the lesser burden of
demonstrating at least a likelihood that the decision was erroneous before
obtaining an interim stay.
Petitioner of course does not suggest that applicants are entitled under
the First Amendment to operate an adult-oriented business after the first
reviewing court affirms the city's decision denying to grant or renew a
license. See p. 13, note 6, supra. Thus, an automatic stay rule would confer
an unjustified windfall on applicants who would not have been entitled to
a stay on the basis of their individual circumstances and who ultimately
lose on the merits. Indeed, an automatic stay rule would advance an applicant's
legitimate First Amendment interests only in the limited situation in which
both the city and the court would have denied an applicant's request for
a stay but the court ultimately reverses the city's decision. Petitioner
offers no basis for concluding that such a situation arises with sufficient
frequency to impose an automatic stay rule, especially since the applicant
would have had a fair opportunity for immediate judicial relief on an interim
basis, but simply failed to make the requisite showing at that point.
B. An Automatic Stay Rule Would Unduly Infringe Upon Respondent's Interest
In Regulating The Secondary Effects Of Sexually-Oriented Businesses
1. This Court has recognized that the government has a legitimate and substantial
interest in imposing time, place, and manner restrictions on certain businesses
to "prevent[] harmful 'secondary' effects that are unrelated to the
suppression of expression." City of Erie v. Pap's A.M., 120 S. Ct.
1382, 1394 (2000) (plurality opinion) (upholding city ordinance banning
public nudity); see also id. at 1402 (Souter, J., concurring in part and
dissenting in part); see, e.g. City of Renton v. Playtime Theatres, Inc.,
475 U.S. 41, 47 (1986) (upholding a city ordinance that governed the zoning
of adult motion picture theatres because the ordinance "is aimed not
at the content of the films shown at 'adult motion picture theatres,' but
rather at the secondary effects of such theaters on the surrounding community");
accord Young v. American Mini Theatres, Inc., 427 U.S. 50 (1976); see also
Clark v. Community for Creative Non-Violence, 468 U.S. 288, 299 (1984) (regulations
that were "unrelated to suppression of expression" served "substantial
Government interest in conserving park property"). Here, respondent
reasonably concluded that sexually-oriented businesses "affect property
values, contribute to physical deterioration and blight, have a deleterious
effect on both existing businesses around them and surrounding residential
areas, including increased transiency [and] increased levels of criminal
activities including prostitution, rape, assaults and other sex related
crimes." Mun. Code § 8.195 (preamble) (Pet. App. 95). Respondent
therefore passed its ordinance not for "the purpose or effect of imposing
a limitation or restriction on the content of any communicative materials,"
but to "combat and curb the adverse secondary effects brought on by
adult oriented establishments." Ibid. (Pet. App. 97).
Respondent's interest in regulating those effects would be significantly
impaired by a rule that barred respondent from enforcing a decision denying
a license renewal in advance of a judicial determination upholding the decision,
because such a rule would permit a business to operate even though the city
has determined that the business is not fit to operate. An automatic stay
rule similarly would be inconsistent with the Court's conclusion in FW/PBS
that "the First Amendment does not require that the city bear the burden
of going to court to effect the denial of a license application." 493
U.S. at 230 (plurality opinion); see also id. at 244 (White, J., concurring
in part and dissenting in part). Aggrieved applicants under such a regime
would have an enormous incentive to file a notice of appeal simply to effectuate
an automatic stay of an adverse licensing decision. Although the applicant
presumably would have the burden in the ensuing proceedings of challenging
the decision on the merits, see id. at 229-230 (plurality opinion), an automatic
stay of the licensing decision that the applicant challenges on judicial
review would be, in the interim, the practical equivalent of requiring that
the city "bear the burden of going to court to effect the denial of
a license application." Id. at 230.7
2. Petitioner recognizes (Br. 49 n.30) that an automatic stay rule might
be inappropriate when the city denies an initial application, "before
the subject expressive activity has begun." In that instance, an applicant
has not shown that it is qualified to operate an adult-oriented business,
because, e.g., the applicant does not meet the minimum age qualifications,
Mun. Code § 8.195(4)(a)(1) and (b)(1), or the applicant previously
had violated respondent's ordinance within the preceding five years, id.
§ 8.195(4)(a)(2) and (b)(2). There is no principled distinction, however,
between that situation and the denial of a renewal application on similar
grounds. Indeed, respondent's interest in regulating the secondary effects
of sexually-oriented businesses may be even stronger when it has denied
a license renewal to an applicant that has repeatedly violated the city's
ordinance and demonstrated in fact that it is not qualified to operate a
sexually-oriented business. A requirement that the city must stay its decision
denying a license renewal pending judicial review in that instance would
significantly burden the city's legitimate and substantial interest in enforcing
its licensing scheme.8
That principle is well-illustrated in this case. Here, city officials found
that petitioner repeatedly had allowed minors to visit its premises and
had permitted patrons to engage in sexual activity in viewing booths. Pet.
App. 76-83. The courts below affirmed those findings as supported by substantial
evidence, id. at 38-42, 69-70, and the courts similarly concluded that respondent
properly declined to renew rather than suspend petitioner's license, "[c]onsidering
both the health and safety issues as well as [petitioner's] record of ordinance
violations." Id. at 37; see also id. at 69 (trial court). A rule that
would require a city to permit such a business to operate simply because
the business challenged the city's decision denying a renewal of the license
would seriously undermine the government's interest in enforcing licensing
regulations to "prevent[] harmful 'secondary' effects that are unrelated
to the suppression of expression." City of Erie, 120 S. Ct. at 1394
(plurality opinion).
C. An Automatic Stay Rule Is Not Required By The First Amendment To Avoid
The Dangers Of A Censorship Regime
Relying on this Court's decision in Freedman v. Maryland, supra, petitioner
argues (Br. 16) that respondent's licensing scheme "may not alter the
status quo by forcing the cessation of ongoing expressive businesses prior
to judicial review." See also Pet. Br. 23-26, 32-33, 43-45. Petitioner's
reliance on Freedman is misplaced. In that case, the Court relied on two
rationales to support the requirement of special judicial review procedures.
First, the Court found that government review and censorship of expressive
activity present the inherent risk that officials will suppress protected
speech. 380 U.S. at 57-59. Second, the Court concluded that a censorship
scheme poses the significant danger that potential distributors or exhibitors
will be deterred from bringing a judicial challenge to the decision to censor
a particular work, because they would not have a sufficient stake in that
one work to assume the burden of instituting judicial proceedings. Id. at
58-59. Those concerns, however, are not similarly present in the context
of respondent's licensing scheme.9
1. Respondent's ordinance "provide[s] for licensing and regulation
of adult oriented establishments * * * to combat and curb the secondary
effects of such establishments." Mun. Code § 8.195 (preamble)
(Pet. App. 97); see also FW/PBS, 493 U.S. at 220 (city ordinance "was
aimed at eradicating the secondary effects of crime and urban blight").
In determining when a renewal applicant is eligible for a license under
respondent's ordinance, city officials do not review or censor the content
of any expressive material sold or displayed by a regulated business. Rather,
the licensing scheme imposes time, place, and manner restrictions by regulating
(1) the qualifications of a license applicant, (2) the physical layout of
the business, and (3) the conduct that may occur on the premises. See Mun.
Code § 8.195(4), (9) and (10).
Unlike a law that directly censors speech, respondent's ordinance does not
present the risk identified in Freedman that city officials will impermissibly
engage in the suppression of protected speech. In Freedman, the Court explained
that where a "censor's business is to censor, there inheres the danger
that he may well be less responsive than a court-part of an independent
branch of government-to the constitutionally protected interests in free
expression." 380 U.S. at 57-58. The Court therefore concluded that
"only a judicial determination in an adversary proceeding ensures the
necessary sensitivity to freedom of expression." Id. at 58.
This Court in other decisions has explained that "the line between
unconditionally guaranteed speech and speech that may be legitimately regulated
is a close one." Southeastern Promotions, Ltd. v. Conrad, 420 U.S.
546, 561 (1975); see also Vance v. Universal Amusement Co., 445 U.S. 308,
316 n.13 (1980) (per curiam) ("[T]he line between legitimate and illegitimate
speech is often so finely drawn that the risks of freewheeling censorship
are formidable.") (quoting Southeastern Promotions, Ltd., 420 U.S.
at 559); Bantam Books, Inc. v. Sullivan, 372 U.S. 58, 66 (1963) ("constitutionally
protected expression * * * is often separated from obscenity only by a dim
and uncertain line."). Because censorship schemes necessarily pose
the risk that the government will suppress constitutionally protected speech,
Freedman and other decisions reviewing such schemes have required the government
to obtain a prompt judicial decision that affirms the censor's view that
the speech sought to be restrained is actually unprotected.10
There is no comparable danger that city officials will improperly suppress
protected speech under a licensing scheme in which officials do not condition
a license upon the approval of the speech sought to be exhibited. In those
circumstances, "the city does not exercise discretion by passing judgment
on the content of any protected speech." FW/PBS, 493 U.S. at 229 (plurality
opnion). Rather, city officials determine whether a particular applicant
is qualified to operate a sexually-oriented business, "a ministerial
action that is not presumptively invalid." Ibid.11
Those principles are fully applicable here. When respondent denied petitioner's
application for a license renewal, city officials did not base that denial
on the content of any expressive material exhibited or sold by petitioner.
Rather, city officials determined that petitioner had violated the licensing
ordinance because petitioner had permitted minors to visit its premises,
had failed to maintain an unobstructed view to the viewing booths, and had
permitted patrons to engage in sexual activity in viewing booths. Pet. App.
76- 80. Those kinds of determinations are routinely made by administrators,
and they are not inherently fraught with First Amendment concerns. See Graff
v. City of Chicago, 9 F.3d 1309, 1333 (7th Cir. 1993) (Flaum, J., concurring)
("Clearly included among such nonthreatening schemes are those that
only ask and allow administrators to make the kind of determinations for
which they are especially suited; e.g. questions about city aesthetics,
traffic flow or City Code violations."), cert. denied, 511 U.S. 1085
(1994).
Similarly, a court reviewing a decision by respondent under its licensing
scheme does not assume that the decision is presumptively invalid. Cf. Motor
Vehicle Mfrs. Ass'n v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 43 n.9
(1983) (noting "the presumption of regularity afforded an agency in
fulfilling its statutory mandate"). To the contrary, the courts below
were required to affirm respondent's decision denying petitioner a license
renewal if the city "kept within its jurisdiction" and "acted
according to the law," the decision was not "arbitrary, oppressive
or unreasonable," and "the evidence presented was such that [respondent]
might reasonably make the order or determination in question." Pet.
App. 8. That deferential standard of review, which petitioner has not challenged,
is indistinguishable from the standard of review accorded a wide variety
of administrative decisions that are not subject to an automatic stay pending
judicial review. See, e.g., Administrative Procedure Act, 5 U.S.C. 705,
706; see also Fed. R. Civ. P. 65(b) (standards for obtaining a temporary
retraining order).
2. This Court in Freedman also reasoned that a prior judicial determination
affirming the censor's ban on speech was necessary because otherwise "it
may prove too burdensome to seek review of the censor's determination."
380 U.S. at 59. The Court explained that an "administrative refusal
to license, signifying the censor's view that the film is unprotected, may
have a discouraging effect on the exhibitor." Ibid. The plurality in
FW/PBS similarly observed that when a censored speaker is "likely to
be deterred from challenging the decision to suppress the speech, * * *
the censor's decision to suppress [is] tantamount to complete suppression
of the speech." 493 U.S. at 229.
Under respondent's ordinance, by contrast, "[b]ecause the license is
the key to the applicant's obtaining and maintaining a business, there is
every incentive for the applicant to pursue a license denial through court."
FW/PBS, 493 U.S. at 229-230 (plurality opinion); accord id. at 248 ((White,
J., concurring in part and dissenting in part) (businesses subject to city's
licensing scheme "will have every incentive to pursue the licensing
applications vigorously"). Similarly, applicants denied a license renewal
by respondent "have much more at stake" economically than a one-time
speaker subject to a censorship scheme, and are therefore likely to challenge
an adverse decision by respondent if there is a reasonable basis for such
a challenge. Id. at 229 (plurality opinion). In those circumstances, a prior
judicial decision is unnecessary to prevent a denial of a license renewal
from becoming "tantamount to complete suppression of the speech."
Ibid. (plurality opinion).
D. Policy Considerations Do Not Support An Automatic Stay Rule
Petitioner also argues that policy reasons support an automatic stay rule.
Those contentions lack merit.
1. Petitioner contends (Br. 27-29, 36) that a prior judicial determination
is necessary so that a court may resolve an applicant's facial constitutional
challenges to the ordinance's standards for license renewal or revocation.
Petitioner further argues (Br. 38-40) that a court should resolve facial
challenges before a licensing decision takes effect, because city officials
cannot resolve them during the administrative review process. But applicants
may bring a facial challenge to a city's licensing scheme without proceeding
under the city's licensing scheme, either by filing a declaratory judgment
action in state court, see Wis. Stat. § 806.04 (1994), or by filing
an action under 42 U.S.C. 1983 in federal court. See, e.g., Baby Tam &
Co., 154 F.3d at 1098-1099 (Section 1983 action).12 This Court in FW/PBS
allowed such a facial challenge to both the administrative and judicial
review procedures, without requiring exhaustion of administrative remedies.
See 493 U.S. at 223-225 (plurality opinion). The existence of possible facial
challenges to a city ordinance therefore provides no basis for a rule requiring
an automatic stay of all license-renewal denials pending judicial review.
2. Petitioner also asserts (Br. 32-35, 37, 44-45) that an automatic stay
rule is necessary because local licensing officials are hostile to the First
Amendment rights of sexually-oriented businesses. In determining whether
to renew a license under respondent's ordinance, however, city officials
do not review the content of any speech; rather, they decide whether a particular
applicant is qualified to operate a sexually-oriented business. Official
action under such a scheme is not based on the review of speech and therefore
is not "presumptively invalid." FW/PBS, 493 U.S. at 229 (plurality
opinion). See pp. 21-24, supra.
Similarly, municipal licensing ordinances that regulate sexually-oriented
businesses must be accompanied by objective standards that cabin the discretion
of officials who decide whether to grant or deny a license. FW/PBS, 493
U.S. at 225-226 (plurality opinion); id. at 246 (White, J., concurring in
part and dissenting in part); see also City of Lakewood v. Plain Dealer
Publ'g Co., 486 U.S. 750, 758 (1988) ("Standards provide the guideposts
that check the licensor and allow courts quickly and easily to determine
whether the licensor is discriminating against disfavored speech.").
Here, the Court of Appeals determined that respondent's ordinance contains
objective criteria that govern the standards for license renewal, and that
holding is not at issue here. Pet. App. 12-16. Thus, because objective standards
minimize the risk that officials who administer the ordinance will deny
a license based on the speech of a particular applicant, there is no need
for respondent to guarantee that its licensing decisions will not go into
effect until a court determines that those objective standards were properly
applied in a given case.13
For similar reasons, petitioner errs in asserting that special judicial
procedures are required to guard against the possibility that local officials
will deny a license renewal application based on "false charges"
or "factually questionable prostitution or lewd conduct charges against
the dancers at an adult entertainment business." Br. 30, 31. It is
presumed that city officials who administer licensing schemes that contain
objective standards will properly discharge their duties under local law.
See United States v. Chemical Found., Inc., 272 U.S. 1, 14-15 (1926) ("[I]n
the absence of clear evidence to the contrary, courts presume that [public
officers] have properly discharged their official duties."); accord
United States v. Armstrong, 517 U.S. 456, 464 (1996); United States v. Mezzanatto,
513 U.S. 196, 210 (1995). Moreover, petitioner has not asserted that any
official misconduct occurred in this case. Cf. Arcara v. Cloud Books, Inc.,
478 U.S. 697, 707 n.4 (1986) ("[T]here is no suggestion on the record
before us that the closure of respondents' bookstore was sought under the
public health nuisance statute as a pretext for the suppression of First
Amendment protected material."). In any event, as explained above,
respondent's licensing scheme permits a court to preserve the status quo
if an applicant can demonstrate a likelihood in a given case that city officials
acted in bad faith in denying a license renewal.
II. PETITIONER'S CHALLENGES TO THE ADMINISTRATIVE REVIEW PROVISIONS UNDER
STATE LAW ARE NOT PROPERLY BEFORE THIS COURT
Petitioner argues (Br. 4-5, 14-18, 19-22) that the provisions for administrative
review of the city's licensing decisions under Chapter 68 of the Wisconsin
Statutes Annotated are constitutionally deficient because they do not ensure
an "administrative ruling on a permit application within a specified
and brief time period," and because they "fail to preserve the
status quo pending completion of * * * administrative review." Br.
17-18.14 We do not address the merits of those contentions, however, because
they are not properly before this Court.
First, petitioner's challenges to Chapter 68 were not timely raised or passed
upon by the courts below. See, e.g., National Collegiate Athletic Ass'n
v. Smith, 525 U.S. 459, 470 (1999); Blessing v. Freestone, 520 U.S. 329,
340 n.3 (1997). As the Court of Appeals observed, petitioner did not "directly
challenge" the administrative review procedures of Chapter 68. Pet.
App. 28.15 Rather, petitioner challenged the administrative review procedures
under Section 8.195 of the city's ordinance. The court agreed with petitioner's
contention that Section 8.195(3)(d) did not contain definite time limits.
Id. at 24-26. The court further accepted the proposition that there must
be "effective preservation of the status quo during the period in which
the licensor makes its decision." Id. at 19. The court held, however,
that because the alternative state law procedures under Chapter 68 "set[]
forth narrow, definite and objective standards" for administrative
review, the ordinance as a whole is constitutional. Id. at 28.
Second, in its petition for a writ of certiorari, petitioner did not challenge
the validity of the Chapter 68 administrative review procedures. Rather,
petitioner asked this Court to resolve a conflict among the circuits concerning
the guarantee of prompt judicial review. Pet. 13.16 Petitioner therefore
did not properly preserve its contentions in this Court. See Sup. Ct. R.
14.1(a); see, e.g., Jones v. United States, 527 U.S. 373, 394 (1999); Blessing,
520 U.S. at 340 n.3.
Third, respondent has recently amended the administrative review procedures
under its licensing scheme. As previously discussed, the Court of Appeals
invalidated Section 8.195(3)(d) because it failed to direct city officials
to take action after holding a hearing. Pet. App. 25-26. On September 19,
2000, respondent amended Section 8.195(3)(d), effective immediately, to
require city officials to issue a final licensing determination within 20
days of the commencement of the hearing. Waukesha, Wis., Ordinance 42-00.
License applicants now may invoke the administrative procedures under amended
Section 8.195(3)(d) instead of the alternative administrative procedures
under Chapter 68 that petitioner now challenges. No court has passed on
the validity of the amended ordinance, and thus any issue concerning the
constitutionality of the alternative Chapter 68 procedures may be of no
continuing significance. Especially in these circumstances, there is no
occasion for this Court to address petitioner's challenges to Chapter 68.
CONCLUSION
For the foregoing reasons, the decision of the Wisconsin Court of Appeals
should be affirmed.
Respectfully submitted.
SETH P. WAXMAN
Solicitor General
DAVID W. OGDEN
Assistant Attorney General
EDWIN S. KNEEDLER
Deputy Solicitor General
LISA SCHIAVO BLATT
Assistant to the Solicitor
General
MICHAEL JAY SINGER
HOWARD S. SCHER
Attorneys
OCTOBER 2000
1 The ordinance defines adult-oriented establishments to include "'adult
bookstores,' 'adult motion picture theaters', 'adult mini-motion picture
establishments' or 'adult cabarets,'" as those terms are defined under
the ordinance. Mun. Code § 8.195(1). An "adult bookstore"
includes "an establishment having as a substantial or significant portion
of its stock in trade, for sale, rent, trade, lease, inspection or viewing,
books, films, video cassettes, magazines or other periodicals, which are
distinguished or characterized by their emphasis on matters depicting, describing
or relating to specified anatomical areas or specified sexual activities."
Ibid; see also ibid. (defining "specified anatomical areas" and
"specified sexual activities").
2 As discussed pp. 29-30, infra, after the Court of Appeals held Section
8.195(3)(d) unconstitutional because it failed to require the city to reach
a final determination within a definite time limit (Pet. App. 25-26), respondent
amended Section 8.195(3)(d).
3 Petitioner had waived the time periods under Sections 68.11 and 68.12.
Pet. App. 73.
4 The Wisconsin Supreme Court earlier had declined (Pet. App. 53) the Court
of Appeals' certification of the questions whether "an 'adult-oriented
establishments' municipal ordinance that fails to preserve the status quo
during the administrative license renewal process [is] facially unconstitutional"
and whether "the ordinance [is] unconstitutional if it fails to provide
express time limits for judicial review." Id. at 44-45.
5 The Court of Appeals also rejected petitioner's contentions (1) that the
Mayor improperly participated in the city's decision to deny petitioner's
renewal application, Pet. App. 29-31; (2) that petitioner had insufficient
notice of the city's charges, id. at 31-35; and (3) that respondent should
have suspended petitioner's license as a less severe sanction, id. at 35-37.
The court then sustained the grounds upon which respondent based its non-renewal
determination. Id. at 38-42.
6 Petitioner specifically does not argue that the city's decision must be
stayed until it is final in the sense that all judicial appeals have been
exhausted. Pet. Br. 44 & n.27; see also Interstate Circuit, Inc. v.
City of Dallas, 390 U.S. 676, 690 n.22 (1968) ("The assurance of a
'prompt final judicial decision' is made here * * * by the guaranty of a
speedy determination in the trial court.") (quoting Freedman, 380 U.S.
at 59).
7 Indeed, petitioner argues (Br. 40-42) that a city should seek a court
order that temporarily closes such a business either "to prevent immediate
and great injury to the public health or safety" (Br. 41) or because
the business is a public nuisance. Neither of those alternatives would adequately
protect a city's interests when an applicant's conduct or lack of qualifications
does not rise to the level of "immediate and great injury to the public
health or safety" or constitutes a public nuisance. See Wis. Stat.
§ 823.09 (1994) (defining public nuisance to include the maintaining
or using of a building "for the purpose of lewdness, assignation or
prostitution").
8 An automatic stay rule could impose significant costs in other contexts
as well. For instance, the National Park Service and the Forest Service
have promulgated content-neutral time, place, and manner regulations that
govern the granting and renewal of permits to engage in expressive activity
on national lands. See pp. 1-2, supra. A constitutional rule that required
those permit decisions to be automatically stayed pending judicial review
would prevent the government from issuing permits to other applicants who
also wish to engage in expressive activity on the particular land at issue.
See 36 C.F.R. 7.96(g)(5)(iv) (providing that permits for demonstrations
will be extended "unless another application requests use of the particular
area and said application precludes double occupancy"); 60 Fed. Reg.
at 45,258 (promulgating Forest Service's regulations in part to "provid[e]
a reasonable administrative system for allocating space among scheduled
and existing uses and activities").
9 Cf. Chicago Teachers Union v. Hudson, 475 U.S. 292, 308 n.20 (1986) (concluding
that the "special judicial procedures" mandated by Freedman were
not necessary to protect the First Amendment interests of non-union employees
when the union determines whether service fees are related to collective
bargaining activities).
10 See, e.g., Vance, 445 U.S. at 316 & n.14 (state law authorized judges
to enjoin indefinitely exhibition of obscene films); Southeastern Promotions,
Ltd., 420 U.S. at 547-548 (administrative board barred stage production
of "Hair"); United States v. Thirty-Seven (37) Photographs, 402
U.S. 363, 365-377 (1971) (law permitted customs agents to seize imported
obscene materials); Blount v. Rizzi, 400 U.S. 410, 411-414 (1971) (postal
laws permitted censorship of obscene mail); Teitel Film Corp. v. Cusack,
390 U.S. 139, 141 (1968) (per curiam) (city motion picture censorship ordinance);
Bantam Books, Inc., 372 U.S. at 70-72 (state commission attempted to censor
obscene books); cf. National Socialist Party of Am. v. Village of Skokie,
432 U.S. 43, 44 (1977) (trial court enjoined paraders from displaying swastika
or materials promoting hatred of Jews); see also Alexander v. United States,
509 U.S. 544, 551 (1993) ("The constitutional infirmity in nearly all
of our prior restraint cases involving obscene material * * * was that the
government had seized or otherwise restrained materials suspected of being
obscene without a prior judicial determination that they were in fact so.").
11 Contrary to the suggestion of petitioner's amicus Liberty Project (Br.
16), the Court in Shuttlesworth v. City of Birmingham, 394 U.S. 147 (1969),
did not hold that a content-neutral licensing scheme must provide for a
prior judicial determination on the merits before a licensing decision may
become effective. Rather, the Court in dicta simply stated that the validity
of a municipal ordinance that authorized "no more than the objective
and even-handed regulation of traffic on [city] streets and public ways"
"would depend upon, among other things, the availability of expeditious
judicial review of the Commission's refusal of a permit." Id. at 154-155
& n.4.
12 Indeed, in addition to instituting the proceeding below to challenge
respondent's particular non-renewal decision, petitioner filed suit in both
state and federal court seeking to invalidate respondent's ordinance as
facially unconstitutional. See City News & Novelty, Inc. v. City of
Waukesha, 487 N.W.2d 316 (Ct. App. 1992) (state declaratory judgment action),
review denied, 491 N.W.2d 768 (Wis. 1992); Compl. No. 96-C-383 (E.D. Wis.)
(Section 1983 action).
13 Petitioner argues (Br. 33) that Walker v. City of Birmingham, 388 U.S.
307, 317, 339 (1967) and Shuttlesworth v. City of Birmingham, 394 U.S. 147,
157-158 (1969), represent instances of "local officials who have used
permitting or licensing laws to censor speech they disfavored." Unlike
respondent's ordinance, however, the terms of the city's ordinance at issue
in those decisions "clearly gave the City Commission extensive authority
to issue or refuse to issue parade permits on the basis of broad criteria
entirely unrelated to legitimate municipal regulation of the public streets
and sidewalks." Id. at 153.
14 Petitioner contends (Br. 5, 15, 21) that Chapter 68 allows the city a
minimum time of 71 days in which to issue a final licensing decision, and
that because the applicant is permitted to file his renewal application
up to 60 days before a license expires, Mun. Code § 8.195(7)(a), the
city may issue its final decision 11 days after the license expires. Petitioner
also contends (Br. 5, 20) that the city may indefinitely delay making a
final decision under Chapter 68 because, although Wis. Stat. § 68.12(1)
mandates a final decision "[w]ithin 20 days of completion of the hearing
* * * and the filing of briefs," Chapter 68 neither limits the duration
of the hearing nor imposes any time constraints on the filing of briefs.
15 In its briefs to the Court of Appeals, petitioner did not raise the arguments
that it now advances. It was not until six days after oral argument that
petitioner stated its view that a hearing under Section 68.12 could be indefinitely
extended. See Letter from Jeff Scott Olson to Court of Appeals 1-2 (Apr.
19, 1999).
16 This Court limited its grant of certiorari to the third question presented,
see 120 S. Ct. 2687 (2000), which was whether "a licensing scheme which
acts as a prior restraint is required to contain explicit language which
prevents injury to a speaker's rights from want of a prompt judicial decision."
See Pet. i.