Document: 508 U.S. 307 113 S.Ct. 2096 124 L.Ed.2d 211 FEDERAL COMMUNICATIONS COMMISSION and United States, Petitioners,v.BEACH COMMUNICATIONS, INC., et al. No. 92-603. Argued March 29, 1993. Decided June 1, Syllabus * The Cable Communications Policy Act of 1984 (Act) provides that cable television systems be franchised by local governmental authorities, but exempts, inter alia, facilities serving "only subscribers in 1 or more multiple unit dwellings under common ownership, control, management, unless such . us[e] any public right-of-way," § 602(7)(B). After petitioner Federal Commission (FCC) ruled a satellite master antenna (SMATV) system—which typically receives signal through rooftop dish then retransmits the wire to units within building complex—is subject franchise requirement if its transmission lines interconnect separately owned managed buildings use cross right-of-way, respondents, SMATV operators, petitioned Court Appeals for review. Among other things, court found 602(7) violated equal protection guarantee Fifth Amendment's Due Process Clause because there is no rational basis distinguishing between those exempted statute linking buildings. Held: Section 602(7)(B)'s common-ownership distinction constitutional. Pp. ____. (a) In areas social economic policy, statutory classification neither proceeds along suspect nor infringes fundamental constitutional rights must upheld against challenge reasonably conceivable state facts could provide classification. See, e.g., Sullivan v. Stroop, 496 478, 485, 110 2499, 2504, 438. On rational-basis review, as one at issue comes before bearing strong presumption validity, attacking rationality have burden negate every might support it. Since legislature need not articulate reasons enacting statute, it entirely irrelevant purposes whether was actually motivated conceived reason challenged distinction. Legislative choice courtroom fact-finding may based on speculation unsupported evidence empirical data. Adherence these restraints judicial review preserves legislative branch rightful independence ability function. added force where engage process line drawing, Congress did here choosing which franchise. This necessity renders precise coordinates resulting judgment virtually unreviewable, since allowed leeway approach perceived problem incrementally. (b) There are least two possible bases distinction; either suffices. First, borrowed 602(7)(B) from FCC's pre-Act regulations, and, thus, plausible also adopted rationale, ownership indicative costs regulation would outweigh benefits consumers. A legislator rationally assume limited size share some attribute affecting their impact viewers' welfare regulators safely ignore them. Subscribers who can negotiate with voice owner manager greater bargaining power relative operator therefore less regulatory protection. second concern over potential effective monopoly power. first gain foothold installing block significant cost advantage competing remaining subscribers, connect additional length while competitors recover own facilities. Thus, charge rates well above still undercut competition. These rationales do depend upon rights-of-way. 296 U.S.App.D.C. 141, 965 F.2d 1103 (CADC 1992), reversed remanded. THOMAS, J., delivered opinion Court, REHNQUIST, C.J., WHITE, BLACKMUN, O'CONNOR, SCALIA, KENNEDY, SOUTER, JJ., joined. STEVENS, filed an concurring judgment. John F. Manning, Washington, DC, petitioners. Deborah C. Costlow, respondents. Justice THOMAS Court. providing facilities, has drawn serve management. latter category exempt long they services without using question us justifying this Amendment. 2 (Cable Act), 98 Stat. 2779, amended 1934, 47 U.S.C. 151 seq., establish national framework regulating television. One objective set out "franchise procedures standards encourage growth development assure responsive needs interests community." 601(2), 521(2). To end, provided franchising 621(a), 541(a), prohibited person operating system franchise, certain exceptions, 621(b), 541(b). Act, amended, U.S.C.A. 522(7) (Supp.1993), determines reach defining operative term "cable system."1 means facility designed video programming "closed paths," does include, 3 "a serves only right-of-way." 602(7)(B), 522(7)(B) (Supp.1993). 4 part, provision tracks "private cable" exemption previously promulgated (FCC Commission) pursuant pre-existing authority Act. See CFR 76.5(a) (1984) (exempting definition system" "any will management"). earlier derived turn Commission's rules, published 1965. Rules re Microwave-Served CATV, 38 F.C.C. 683, 741 (1965) "community residents apartment commercial establishments located premises house"). narrowed terms further excluding closed 5 case arises FCC proceeding clarifying agency's interpretation used Definition Television System, F.C.C.Rcd. 7638 (1990). proceeding, addressed application codified Unlike traditional system, delivers large community coaxial cables laid city streets utility lines, small complex F.C.C.Rcd., 7639. via network interconnected physical falls exemption. id., 7639-7640. Consistent plain exemption, concluded right-of-way. 7641-7642.2 6 Respondents Beach Communications, Inc., Maxtel Limited Partnership, Pacific Cablevision, Western Inc.—SMATV operators construed rejected respondents' interpretation, majority merit claim violates implied Clause. 294 377, 959 975 (1992). absence what termed "the predominant rationale franchising" (use rights-of-way), saw "[o]n record," "unable imagine" basis, link Id., 389, F.2d, 987. remanded record directed "additional 'legislative facts' " justify Ibid.3 7 report subsequently failed satisfy Appeals. stated "unaware desirable policy considerations distinctions," than offered member court. App. Pet. Cert. 50a. concurrence had believed sufficient reasoned similar commonly buildings, problems presented consumers benefits. U.S.App.D.C., 392, 990 (Mikva, part judgment). opinion, naked intuition, policies," 143, 1103, 1105 (1992), held component Amendment, insofar imposes discriminatory requirement," 142, 1104.4 declared void extent covers respondents similarly situated operators. 144, 1106.5 8 Because unconstitutional, we granted certiorari. 506 ----, 594, 121 532 We now reverse. II 9 Whether embodied Fourteenth Amendment inferred Fifth, license courts judge wisdom, fairness, logic choices. 438 (1990); Bowen Gilliard, 483 587, 600-603, 107 3008, 3016-3018, 97 485 (1987); States Railroad Retirement Bd. Fritz, 449 166, 174-179, 101 453, 459-462, 66 368 (1980); Dandridge Williams, 397 471, 484-485, 90 1153, 1161, 25 491 (1970). Where "plausible reasons" Congress' action, "our inquiry end." supra, U.S., 179, 461. standard paradigm restraint. "The Constitution presumes that, absent infer antipathy, even improvident decisions eventually rectified democratic intervention generally unwarranted matter how unwisely think political acted." Vance Bradley, 440 93, 97, 99 939, 942-943, 59 171 (1979) (footnote omitted).6 10 see Lyng Automobile Workers, 360, 370, 108 1184, 1192, 380 (1988), "to negative it," Lehnhausen Lake Shore Auto Parts Co., 410 356, 364, 93 1001, 1006, 35 351 (1973) (internal quotation marks omitted). Hodel Indiana, 452 314, 331-332, 2376, 2387, 69 40 (1981). Moreover, never require legislature. S.Ct., Flemming Nestor, 363 603, 612, 80 1367, 1373, 1435 (1960). explaining 987, significance analysis. Nordlinger Hahn, 505 112 2326, 2334, 120 (1992) (equal "does demand governing decisionmaker time purpose supporting classification"). words, 111, 949. Minnesota Clover Leaf Creamery 456, 464, 715, 723, 659 'Only faithful adherence guiding principle legislation preserve function.' Lehnhausen, 365, 1006 (quoting Carmichael Southern Coal & Coke 301 495, 510, 57 868, 872, 81 L.Ed. 1245 (1937)). 11 "where necessarily line-drawing." Defining class persons requirement—much like classifying beneficiaries—"inevitably requires almost equally favored treatment placed different sides line, fact [that] been differently points legislative, rather judicial, consideration." Ibid. citation represents line: By rights-of-way, delineates bounds field. Such scope-of-coverage provisions unavoidable components most legislation. establishing requirement, draw somewhere; choose Williamson Lee Optical Okla., 348 483, 75 461, 563 (1955): 12 perennial one, admitting doctrinaire definition. Evils same field dimensions proportions, requiring remedies. Or so think. reform take step time, addressing itself phase seems acute mind. select apply remedy there, neglecting others. prohibition Equal Protection goes invidious discrimination." 489, 465 (citations omitted).7 13 Applying principles, conclude pre-Cable although existence prior administrative scheme certainly necessary rationale. Under thought number indicator, served fewer 50 subscribers. (1984). both exemptions, stated: 14 "[N]ot all [systems] resources available needed instance. sensible program division regulated unregulated made manner best conserves energies allows resources. attempting make division, focused subscriber numbers dwelling indicia theory very inefficient regulate ignored broadcast service effectively establishes maximum limitations." 67 F.C.C.2d 716, 726 (1978). 15 regulatory-efficiency model, originally suggested Chief Judge Mikva his crossing rights-of-way viewers "safely ignor[e]" systems. 16 argue intend surrogate size, simultaneously 50-subscriber omitting Brief 22. posited "constitutionally irrelevant," 461 omitted), event, explanation indicates were considered "very small" contend increase subscription base qualify simply separate each served. 42. dishes associated equipment, however, impose independent constraint size. 17 Furthermore, ownership-related factor contributing consumer welfare. Subscriber influence another. individual conceivably vis-a-vis (even large), manager. substantial leverage, he withhold permission operate property. He incentive guard tenants. safeguards complexes. acknowledge possibilities, 44, cannot say assumptions irrational.8 18 Suppose wish sell group contiguous single block, If belong managed, freely deal competitive basis. But gains signing contract equipment enjoy powerful subscribers: few feet cable, whereas competitor headend facility. theoretically former. III 19 quite evidently right-of-way 1105; As indicated, unrelated underlying erroneous, "arguable" sufficient, "immuniz[e]" congressional challenge. 112, 950. 20 reversed, proceedings consistent opinion. 21 So ordered. 22 23 Freedom blessing. Regulation sometimes necessary, always burdensome. decision way chooses improvement property adequately justified favor freedom. 24 decides improve electric generator, placing windmill roof, government decide improvement. permits installation, surely allow electricity generates whichever appliances selects. However, elects neighbors, justification exist arise. For seeking access already market. antenna, windmill, somewhat unsightly species Nonetheless, analysis applies. Government distribution programs paying customers open market distributes confines my interest free one's adequate exception burdensome requirements when occupied family members guests, lessees co-owners well, encompasses 26 forest antennas, apartment. It owners incurring regulation. Even though justified—indeed, imposing regulation, Systems, 63 956, 996-998 (1977)—a nonregulation nevertheless remain: Whenever possible, should improvements fit. 27 That brings applied Satellite Master Antenna rests sees fit denying him right situation improvement—here, antenna—is being distribute signals people's situation, owner, operator, reached beyond employ broader programming. While trigger intervention, prevent said disabled, Constitution, former abstaining latter. 28 I am fully persuaded encompasses, ante, ____,1 Court's "monopoly" ____,2 agree ultimate conclusion. judgment, reasonable presume3 allowing exercise freedom Legislation violate sovereign's duty govern impartially. Hampton Mow Sun Wong, 426 88, 100, 96 1895, 1903, 48 495 (1976). Accordingly, concur syllabus constitutes prepared Reporter Decisions convenience reader. Detroit Lumber 200 321, 337, 282, 287, 499. Consumer Competition 1992, Pub.L. 102-385, 106 1460—enacted after case—amended provide, among charged 3, 1464. 1992 renumbered subsections 522 amend issue, subsection (7). refer current version initial dispositive control management" Amendments 63, 76, 104 386, 396-397 (1986). district contravened unambiguous abandoned here. 7638, 7641 claimed Act's First receive heightened scrutiny discriminates speech activities. unripe, 386-387, 984-985, refused address argument applying "rational basis" analysis, 388, 986. dissented given concurrence. 1106. questioned existed connecting wireless media, radio microwave transmission. 382, 980, unnecessary consider question, 1105, Appeals, seek scrutiny, claiming 12-17 (hereinafter Respondents). confine ourselves, presented, "rationally related legitimate Clause." I. heightened-scrutiny contentions. renewing arguments here, 14-15, point burdens imposed newly enacted opportunity consider. circumstances, left consideration remand. raise threshold issue. They controversy exists, "moot," "adopted" Appeals' "construction" (presumably thereby acquiescing rights-of-way) took action defend later passing 8-12. Cf. Lorillard Pons, 434 575, 580-581, 866, 870, 55 notion adoption interpretations, place obviously live petitioners stand ready drafted. (1970) (classification "is mathematical nicety practice results inequality") omitted); Metropolis Theatre Co. Chicago, 228 61, 69-70, 33 441, 443, 730 (1913) ("The practical ones justify, require, rough accommodations illogical, be, unscientific"); Heath Milligan Mfg. Worst, 207 338, 354, 114, 119, 52 236 (1907) ("logical appropriateness inclusion exclusion objects persons" "exact wisdom nice adaptation remedies required"). According another reason. assert exemption's sole (MATV) facilities—ordinary conventional multiunit complex, 379-380, 977-978. merely reflected unlike systems, nothing residential amenities posing threat services. 23-25. unavailing, bound derivation regardless origin passage Earth 95 1223, 1224, n. (1983), aff'd sub nom. New York State Comm'n FCC, 242 126, 749 804 Indeed, proceedings, MATV 7639-7641. Approximately 25% complexes enough system. Ferris, Law: Video Practice Guide, ¶ 21.02, p. 21-3, (1983). had, enactment dwellings, passed leaving Respondent thus makes rely. assumes great about nature essentially hypothetical overlooks presence operator's capacity extract rents landlords. states "if classification," "[w]here 'plausible reasons' 'our end,' 6. view, formulation sweeps too broadly, difficult imagine supported "reasonably facts." Judicial "conceivable facts" test tantamount all. continue believe group, leaves unaffected similarly, identically, situated, something 'conceivable' 'plausible' unequal treatment." 180, 462, (1980) (STEVENS, actual unclear, inquire presume impartial legislature." 181, 462 (emphasis added).

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