Document: 467 U.S. 691 104 S.Ct. 2694 81 L.Ed.2d 580 CAPITAL CITIES CABLE, INC., et al., Petitioners,v.Richard A. CRISP, Director, Oklahoma Alcoholic Beverage Control Board. No. 82-1795. Supreme Court of the United States Argued Feb. 21, 1984. Decided June 18, Syllabus Although does not prohibit sale and consumption alcoholic beverages within State, it prohibits, in general, advertising such beverages. In 1980, Attorney General determined that State's ban prohibited cable television systems operating from retransmitting out-of-state signals containing beverage commercials, particularly wine commercials. Petitioners, operators Oklahoma—who, with other operators, had been warned by respondent Director Board they would be criminally prosecuted if carried advertisements—filed suit Federal District for declaratory injunctive relief, alleging Oklahoma's policy violated various provisions Constitution, including Supremacy Clause First Amendment. Granting summary judgment petitioners, court held, inter alia, was an unconstitutional restriction on petitioners' right to engage protected commercial speech. The Appeals reversed. Held: 1. Even though did address it, this will question whether as applied here so conflicts federal regulation is preempted, since conflict between law plainly raised complaint, acknowledged both Appeals, made findings all factual issues necessary resolve question, parties briefed argued pursuant Court's order. Pp. 697-698. 2. Application pre-empted law. regulations have no less pre-emptive effect than statutes, power delegated Communications Commission (FCC) under Act 1934 includes authority regulate order ensure achievement FCC's statutory responsibilities. 698-711. (a) FCC has past 20 years unambiguously expressed its intent preempt state or local any type signal systems. may, current rules, aspects franchisee selection construction oversight, nevertheless, requiring delete contained authority, State clearly exceeded limited jurisdiction interfered a regulatory area explicitly pre-empted. 700-705. (b) also specific certain carry broadcast stations located nearby States, full, advertisements. Similarly, rulings permitting encouraging import more distant signals, which must full. Enforcement affect nonbroadcast services, source programming over asserted exclusive jurisdiction. Moreover, prohibitively burdensome task operator monitor each receives every commercial, thus enforcement might deprive public wide variety options make possible. Such result wholly at odds goal making available benefits communications nationwide basis. 705-709. (c) Congress—through Copyright Revision 1976—has acted facilitate industry's ability distribute national establishes program compulsory copyright licensing permits retransmit upon payment royalty fees central fund, but requires refrain deleting signals. deletion requirement forces lose protections licensing, abandon their importation covered Act. loss viewing thwart identified Congress facilitating 709-711. 3. Twenty-first Amendment save pre-emption. enjoy broad § 2 use intoxicating liquor borders, when attempt directly liquor, conflicting exercise may prevail. case, interests implicated are closely related powers reserved prevail, even requirements express policies. Resolution pragmatic effort harmonize context stake. Here, interest discouraging limited, directed only occasional commercials appearing while advertisements newspapers publications printed outside sold State. same stature ensuring widespread availability diverse services throughout States. 711-716. 699 F.2d 490 (CA 10), Brent N. Rushforth, Washington, D.C., petitioners. Michael W. McConnell, F.C.C. amicus curiae, pro hac vice, special leave Court. Robert L. McDonald, City, Okl., respondent. Justice BRENNAN delivered opinion 1 presented case require subscribers. Petitioners contend abridges rights Fourteenth Amendments Because we conclude reverse Tenth Circuit do reach question. * Since 1959, lawful sell consume Oklahoma. however, well implementing prohibits beverages, except means strictly regulated on-premises signs.1 For several years, broadcasting part locally produced required these block out network programming. See v. Heublein Wines, Int'l, 566 P.2d 1158, 1160 (Okla.1977).2 At time, ruled—principally because practical difficulties enforcement—that apply newspapers, magazines, distributed Consequently, subscribers retail outlets contain Until similar who were permitted March year, issued he concluded retransmission considered violation ban. 11 Op.Okla.Atty.Gen. 79-334, p. 550 (Mar. 19, 1980). Respondent Crisp, Board, thereafter continued App. Pet. Cert. 41a; 11.3 3 Oklahoma, filed 1981 Western seeking relief. They alleged Commerce Clauses, Amendments, Equal Protection Following evidentiary hearing, granted petitioners preliminary injunction subsequently entered permanent December 1981. granting found regularly advertisements, altering modifying "no feasible way" existed 40a-41a. Addressing claim, test set forth Central Hudson Gas & Electric Corp. Public Service Comm'n N.Y., 447 557, 100 2343, 65 341 (1980), operators' 47a-50a. On appeal, reversed, holding that, issue Amendment, valid Telecasters Assn. (1983).4 noted "Federal Communication[s] relay subscribers," discuss application regulations. Id., 492. 4 While petition certiorari pending, brief curiae contended significantly existing framework established promote broadcasting. certiorari, therefore, ordered parties, addition questions concerning speech, argue advertising, light 464 813, 66, 78 (1983). 5 ordinarily consider specifically passed lower court, see California Taylor, 353 553, n. 2, 77 1037, 1040, 1034 (1957), rule inflexible, cases coming, one does, courts. See, e.g., Youakim Miller, 425 231, 234, 96 1399, 1401, 47 701 (1976) (per curiam); Blonder-Tongue Laboratories, Inc. University Illinois Foundation, 402 313, 320, 6, 91 1434, 1438, 28 788 (1971). our Under circumstances, reason addressing II 6 scheme administered intended pre-empt system operators. apparently concedes statute law, argues adopted transportation should prevail notwithstanding law.5 As Retail Liquor Dealers Midcal Aluminum, Inc., 445 97, 937, 63 233 where held wine-pricing Sherman reliance establishing system, turn first before assessing impact fact id., 106-114, S.Ct., 943-947. 7 Our consideration guided familiar well-established principles. Clause, Const., Art. VI, cl. circumstances: first, Congress, enacting statute, clear Jones Rath Packing Co., 430 519, 525, 97 1305, 1309, 51 604 (1977); second, clear, despite absence explicit preemptive language, intended, legislating comprehensively, occupy entire field thereby "left room supplement" Rice Santa Fe Elevator Corp., 331 218, 230, 67 1146, 1152, L.Ed. 1447 (1947); and, finally, compliance impossible, Florida Lime Avocado Growers, Paul, 373 132, 142-143, 83 1210, 1217-1218, 10 248 (1963), "stands obstacle accomplishment execution full purposes objectives Congress." Hines Davidowitz, 312 52, 67, 61 399, 404, 85 581 (1941). Michigan Canners Freezers Agricultural Marketing Bargaining 461, 469, 2518, 2523, 399 (1984). 8 And, Fidelity Savings Loan De la Cuesta, 458 141, 102 3014, 73 664 (1982): 9 statutes. Where administrator his discretion, judgments subject judicial review determine arbitrarily. When promulgates court's inquiry similarly limited: 'If [h]is choice represents reasonable accommodation policies committed agency's care disturb unless appears legislative history sanctioned.' " 153-154, 3022, quoting Shimer, 367 374, 383, 1554, 1560, 908 (1961). comprises Southwestern Cable 392 157, 88 1994, 1001 (1968), given "broad responsibilities" interstate communication wire radio virtue 2(a) 1934, U.S.C. 152(a), comprehensive included U.S., 177-178, 2005-2006. We explained Commission's extends actions "necessary responsibilities." Midwest Video 440 689, 706, 99 1435, 1444, 59 692 (1979). Accord, 406 649, 665-667, 92 1860, 1869-1870, 32 390 (1972) (plurality opinion); 675, 1874 (BURGER, C.J., concurring result). Therefore, resolved determination "represents policies" domain, supra, precluded.6 contrast broadcasters, transmit video audience free charge derive income principally revenues, generally operate basis different entrepreneurial principle. return service paid subscribers, provide customers obtained sources. Typically, sources include over-the-air picked up master antenna stations, imported satellites, originated instead transmitted satellite microwave relay. Over Act, array 12 began 1960's. chiefly concerned unlimited into areas might, through competition, "destroy seriously degrade offered broadcaster," cause significant reduction households served Rules re Microwave-Served CATV, 38 683, 700 (1965). potential effect, promulgated rules systems7 areas, avoid duplication programs during day limit stations. F.C.C.2d 725, 745-746, 781-782 (1966). It respect initial assertion carriage confirmed general 172-178, 2002-2005. 13 further refined modified governing 1972. Television Report Order, 36 143, reconsideration, 326 (1972), aff'd sub nom. American Civil Liberties Union FCC, 523 1344 (CA9 1975). marking boundaries jurisdiction, adopt direct Instead, announced "deliberately structured dualism" authorities responsibility franchises communities overseeing incidents operations delineating franchise regulating facilities, maintaining way. F.C.C.2d, 207. retained operational communication, technical standards. 170-176. subsequent clarifying scope 1972 rules: 14 "The unquestioned. Nonetheless, occasionally receive applications certificates enclose delineate operator. Franchising relating carriage. franchisor want provision allowable far can go." Television, 46 175, 178 (1974) (emphasis added).8 15 systems' specialized, signals—a commonly described "pay cable." 199-200.9 recently relaxed permit greater access forsaken area. CATV Syndicated Program Exclusivity Rules, 79 663 Malrite T.V. New York 652 1140 (CA2 1981), cert. denied, National Football League 454 1143, 1002, 71 295 (1982). Indeed, decision allow unfettered rested conclusion "the additional substantial. Millions afforded increased options, diversity presently unavailable communities." 746. Besen Crandall, Deregulation 44 Law Contemp.Prob. (Winter 1981). Second observed upholding decision, "[by] shifting toward favorable climate industry, chosen balance increase diversity. . ." 1151. Clearly, jeopardized now restrict substantially 16 Accordingly, extent invoked control reaches beyond trespasses domain FCC. To sure, see, Duplicative Excessive OverRegulation-CATV, 54 855, 863 (1975), but, pre-empted.10 B 17 Quite apart generalized pre-emption carriage, These arise three principal ways. First, so-called "must-carry" station specified 35-mile zone "significantly viewed" community CFR §§ 76.59(a)(1) (6) many Missouri Kansas. 22, 35. addition, regulations, "in without alteration portion" 76.55(b) Because, view, nondeletion serves "prevent revenues broadcasters sufficient reduced public," regular Pugh, 68 997, 999 (1978); WAPA-TV Broadcasting 263, 272 (1976); 417, 444 (1968); 753, 756. those criminal prosecution 18 Second, permit, indeed encourage, 745-746. Kansas, Missouri, Texas, "superstations" Atlanta Chicago. 35-36. undisputed retransmitted originates. Nor disputed barred portion advertising. ban, either face prosecution. compels conduct forbids, objectives" scheme. 404; Farmers WDAY, 360 535, 1302, 1308, 1407 (1959). 19 Finally, against third Aside relaying accordance specialized This programming, often referred cable," advertiser-supported News Network (CCN) Entertainment Sports Programming (ESPN). earlier, 703, stated completely precluded law.11 antenna, receiver, dish restransmit them But, unlike notification networks simultaneously channel advance notice about timing content Cf. supra. record indicates, developing capacity task. 25-26, 36-38. view considerations, "[t]here exists way [cable operators] [wine] advertisements." 41a.12 enforced, compelled altogether run risk consequence, deprived 21 goals contemplated Consistent congressionally defined charter "make available, possible, people rapid, efficient, Nationwide world-wide .," 151, sought become reality basis." Over-Regulation-CATV, 865. With end mind, assure breathing space expand vigorously range offerings parts country. universal support, competing care, judgment. repeatedly explained, officials determine, here, restrictive particular interest, "States police enact regulation." Ray Atlantic Richfield 435 178, 98 988, 1004-05, 55 179 Bethlehem Steel Co. Labor Relations 330 767, 774, 1026, 1030, 1234 (1947). 155, 3023 (Federal Home Bank preempted due-on-sale clauses afford flexibility discretion savings loan institutions). C 22 taken lead formulating television, new technology, has, 1976, 90 Stat. 2541, 101 seq., Prior 1976 revision, infringement liability retransmissions "performances" meaning 1909 Teleprompter Columbia System, 415 394, 94 1129, 39 (1974); Fortnightly Artists 390, 2084, 1176 (1968). revising pay royalties owners copyrighted pain infringement. recognized "it impractical unduly negotiate [appropriate payments] owner" secure consent retransmissions. Revision, H.R.Rep. 94-1476, 89 (1976).13 Section 111 codifies solution devised Congress. securing permission owner turn, fund based percentage gross revenues.14 take advantage scheme, satisfy reporting requirements, 111(d)(1) (2)(A), Register Copyrights, 111(d)(2)(B)-(D) (3), transmits, 111(c)(3). Failure comply conditions results forfeiture system. 23 devising important framed I, 8, rewarding creators works "promoting literature, music, arts." Twentieth Century Music Aiken, 422 156, 95 2040, 2044, 45 84 (1975) (footnote omitted); Sony Universal City Studios, 428-429, 781-782, 574 Compulsory protects value enhances allowing benefit wider dissemination signals.15 By wine, licensing. Of course, possible simply abandoning But III 24 contends invalid normal analysis, rescues A claim advanced (1980). after finding reserves traffic "permits countermand congressional policy—adopted commerce power—in favor competition." 106, 944. likewise override policy, promoting development communication. 25 borders. Ziffrin, Reeves, 308 60 163, 128 (1939). prior license ignore obligations Constitution. Larkin Grendel's Den, 459 116, 122 5, 103 505, 510 74 297 (1982); LaRue, 409 109, 115, 93 395, 34 342 (1972); Wisconsin Constantineau, 400 433, 436, 507, 509, 27 515 (1971); Department Revenue James B. Beam Distilling 377 341, 345-346, 1247, 1249-1250, 362 (1964). "[t]his decisions primarily created exception operation Clause." Craig Boren, 429 190, 206, 451, 50 397 (1976). Thus, Hostetter Idlewild Bon Voyage 324, 1293, 350 (1964), impose burdens absent Clause. 330, 1296; Equalization Young's Market 299 59, 62-63, 57 77, 78-79, (1936). cautioned, "[t]o draw somehow operated 'repeal' wherever liquors absurd over-simplification." Hostetter, 331-332, 1298. Notwithstanding Amendment's grant Government retains liquor. Ibid. 109-110, 945-946; Nippert Richmond, 327 416, 425, 15, 66 586, 590, 760 (1946); Frankfort Distilleries, 324 293, 661, 951 (1945). 26 rejecting ousted attempted borders core power—a example, in-state sales used foreign countries could supervision Bureau Customs, contrary aimed preventing unlawful rather designed "totally prevent transactions aegis Constitution nations." 333-334, 1299. provides shelter caused pricing program," temperance substantial therefore outweighed 113-114, 947-948. Aluminum efforts involving contrast, clash essentially us here: resolution "pragmatic powers" stake case. 945. There little doubt developed govern reflect interest. crafting strike protecting noncable due competition provided diversified secured maximum number viewers. 744-746. accomplish goal, deemed assert uniform undermined governments piecemeal fashion authority. Community TV, 83-525, pp. 12-13; (released Nov. 1983); 178. 29 hand, 79-334[c], "consumption last beverages," 42a, nevertheless accept restrictions represent least reasonable, albeit furthering modest nature illustrated noting press campaign fronts. print beer, appear own terms, aims narrow. obviously need amount attack problems alcohol constitute selective approach suggests limits substantiality asserts here. engages indirectly Amendment—that exercising "control how structure distribution system." 110, 946. 30 measured interference objective States—an unquestionably frustrated strict statute—it hold when, squarely times, places, manner implicated, tips decisively Clause.16 IV 31 Reversed. pertinent part: "It shall person, firm corporation advertise sign outlet bearing words 'Retail Store.' XXVII, 5. "any same" signs conform size limitations. Okla.Stat., Tit. 37, 516 (1981). requirement, technically broadcast, affiliates enable P.2d, 1162. defines "alcoholic beverage" "alcohol, spirits, wine," 506(2) (1981), definition "beer" 3.2% weight, 506(3). beer sometimes contains alcohol, deleted. time brought, hard advertised television. disposed claims consolidated appeal Nos. Civ. 81-290-W 81-439-W (WD Okla.1981), rev'd, certiorari. provides: Territory, possession delivery therein liquors, laws thereof, hereby prohibited." Relying (1979), reflecting violate depriving editorial carry, merits lacks standing raise adversaries' constitutional adversaries never claim. early "community television," amplify them, microwave, "[b]ecause broader functions facilities future," "more inclusive term systems." 144, (1972). terminology. (1976), U.S.Code Cong. Admin.News 5659. contours jurisdictional government: "[W]e consistently position degree deem necessary, orderly technology structure. agency include, cable, leased standards, access, responsibility. Non-federal non-operational franchising bonding agreements, maintenance rights-of-way, occupancy construction." (1975). follows: "After considerable study emerging industry prospects introducing innovative there rates governmental level. Attempting rate yet premature likelihood chilling anticipated development." 199-200. More recently, "has deliberately non-basic offerings, non-broadcast markets satellite. offering (and still is) developing, intent, reasons preemption, discernible. Today, satellite-delivered reflects wisdom freeing area." 1983). Head Mexico Examiners Optometry, 374 424, 1759, 983 controlling price-related eyeglasses "[n]o remotely called attention. itself viewed complementing function, it." 432, 1764 omitted). unambiguous. 11-14 861-863; 199-200; Time-Life Broadcast, 747 Preemption Regulations, 741 (1969). proposal substitute plan feasible. 165. approach, aware virtually insurmountable logistical owner. Hearings H.R. 2223 Subcommittee Courts, Administration House Committee Judiciary, 94th Cong., 1st Sess., pt. 758 (1975); Revision: S.1361 Patents, Trademarks, Copyrights Senate 93d 291-292, 400-401 (1973). keystone 111(c)(1), "Subject (2), (4) subsection, secondary transmissions primary transmission licensed embodying performance display work subsection (d) comprising permissible authorizations Commission." 111(c)(1). explained: "In believes enterprises whose basic material programs. recognizes, maintain principle bill establish authorized FCC." 5704. H.R.Conf.Rep. 94-1733, 75-76 Cong.Rec. 31979 (remarks Rep. Kastenmeier); 31984 Railsback); 32009 Danielson); Eastern Microwave, Doubleday Sports, 125, 132-133 1982) (discussing Congress' "a insure systems] continue bringing broadcasted subscribers"). favor, constitutes issue.

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