Building Owners & Managers Ass'n International v. Federal Communications Commission

254 F.3d 89, 349 U.S. App. D.C. 12, 2001 U.S. App. LEXIS 15105
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 6, 2001
DocketNos. 99-1009, 99-1021
StatusPublished
Cited by14 cases

This text of 254 F.3d 89 (Building Owners & Managers Ass'n International v. Federal Communications Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Building Owners & Managers Ass'n International v. Federal Communications Commission, 254 F.3d 89, 349 U.S. App. D.C. 12, 2001 U.S. App. LEXIS 15105 (D.C. Cir. 2001).

Opinions

Opinion for the Court filed by Circuit Judge ROGERS.

Concurring opinion filed by Circuit Judge RANDOLPH.

ROGERS, Circuit Judge:

Following enactment of the Telecommunications Act of 1996, the Federal Communications Commission promulgated a rule prohibiting restrictions on certain over-the-air reception devices (“OTARD”). The rule invalidated

[a]ny restriction, including but not limited to any state or local law or regulation, including zoning, land-use or building regulation, or any private covenant, homeowners’ association rule or similar restriction on property within the exclusive use or control of the antenna user where the user has a direct or indirect ownership interest in the property that impairs the installation, maintenance, or use of [antennas that are designed to receive direct broadcast satellite service, video programming services via multi-point distribution services, or television broadcast signals]....

Preemption of Local Zoning Regulation of Satellite Earth Stations, Implementation of Section 207 of the Telecommunications Act of 1996: Restrictions on Over-the-Air Reception Devices: Television Broadcast Service and Multichannel Multipoint Distribution Service, 11 F.C.C.R». 19276 (1996) (“First OTARD Order”). In 1998, the Commission extended the prohibition, with certain exceptions, to “lease provision[s] ... where the [antenna] user has a ... leasehold interest in the property.” In the Matter of Implementation of Section 207 of the Telecommunications Act of 1996— Restrictions on Over-the-Air Reception Devices: Television Broadcast, Multichannel Multipoint Distribution and Direct Broadcast Satellite Services, 13 F.C.C.R. 23874 (1998) (“Second OTARD Order”).

Several trade associations representing real estate owners and property managers1 appeal the Second OTARD Order, contending that the rule, as amended, is invalid on its face. They contend, first, that the Commission exceeded its statutory authority in extending the OTARD rule to leased property; second, that the amended rule violates the Takings Clause of the Fifth Amendment of the United States Constitution; 2 and third, if there is no taking, that the Commission acted arbitrarily and capriciously in extending the rule to leaseholds. Finding unpersuasive these facial challenges to the amended OTARD rule, we deny the petition.

I.

In promulgating the OTARD rules, the Commission relied on § 207 of the Telecommunications Act of 1996, Pub.L. No. 104-104, 110 Stat. 56 (the “1996 Act”), which provides:

Within 180 days after the date of enactment of this Act, the Commission shall, pursuant to Section 303 of the Commu[92]*92nications Act of 1934, promulgate regulations to prohibit restrictions that impair a viewer’s ability to receive video programming services through devices designed for over-the-air reception of television broadcast signals, multichannel multipoint distribution service, or direct broadcast satellite services.

The 1996 Act also added a new subsection 303(v) to the Communications' Act of 1934, granting the Commission

exclusive jurisdiction to regulate the provision of direct-to-home satellite services ... [T]he term “direct-to-home satellite services” means the distribution or broadcasting of programming or services by satellite directly to the subscriber’s premises without the use of ground receiving or distribution equipment ....

47 U.S.C. § 303(v). The 1996 Act left undisturbed the broad statutory directives contained in the Communications Act of 1934, including the Cpmmission’s mandate • to “make [communications services] available ... to all the people of the United States,” 47 U.S.C. § 151, and the Commission’s authority to “perform any and all acts, make such rules and regulations, and issue such orders ... as may be necessary in the execution of its functions.” Id. § 154(i).

As early as the 1980s, the Commission had begun restricting potential barriers to the development of satellite-based residential video programming. See, e.g., Preemption of Local Zoning or Other Regulation of Receive-Only Satellite Earth Stations, 51 Fed.Reg. 5519 (1986). In direct response to the directives in the 1996 Act, the Commission promulgated rules to safeguard viewers’ ability to use devices designed for direct broadcast satellite services, television broadcast services, and multichannel multipoint distribution services (collectively, “§ 207 devices”). See, e.g., Preemption of Local Zoning Regulation of Satellite Earth Stations, 11 F.C.C.R. 5809 (1996); Implementation of Section 207 of the Telecommunications Act of 1996: Restrictions on Over-the-Air Reception Devices: Television Broadcast and Multichannel Multi-point Distribution Service, Notice of Proposed Rulemaking, 11 F.C.C.R. 6357 (1996). The Commission adopted its first rule implementing § 207 on August 5, 1996. See First OTARD Order, 11 F.C.C.R. 19276 (1996). The first OTARD rule provided: .

Any restriction, including but not limited to any state or local law or regulation, including zoning, land-use or building regulation, or any private covenant, homeowners’ association rule or similar restriction on property within the exclu-, sive use or control of the antenna user where the user has a direct or indirect ownership interest in the property, that impairs the installation, maintenance, or use of [a § 207 device] ... is prohibited....

47 C.F.R. § 1.4000 (1996). The prohibitions in the first OTARD rule applied only to property in which the “user” of satellite services (i.e., the “viewer” for purposes of § 207) had an ownership interest. Despite its stated prohibition of “any” restriction, the rule allowed for several exceptions: Restrictions on § 207 devices were permissible if they served a “clearly defined safety objective” and were administered “in a nondiscriminatory manner to other . . . devices . . . that [we]re comparable in size, weight and appearance,” or if they were “necessary to preserve an historic district,” and if the restrictions were no more burdensome than necessary. Id. § 1.4000(b)(l)-(3).3 In addition, the [93]*93OTARD rule permitted waiver by the Commission upon the request of local governments or associations. See id. § 1.4000(c).

The first OTARD rule left unresolved whether the § 207 prohibition should apply to “property not within the exclusive [use or] control of a person with an ownership interest,” such as common areas or rental properties. First OTARD Order, 11 F.C.C.R. at 19311; see also id. at 19314. On November 20, 1998, after notice and comment, the Commission expanded the OTARD prohibition to include restrictions on § 207 reception devices on rental property that is within the exclusive use or control of the tenant who has a leasehold interest in the property. See Second OTARD Order, 13 F.C.C.R. 23874 (1998). The amended OTARD rule provides in relevant part:

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Bluebook (online)
254 F.3d 89, 349 U.S. App. D.C. 12, 2001 U.S. App. LEXIS 15105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/building-owners-managers-assn-international-v-federal-communications-cadc-2001.