T-Mobile West LLC v. City and County of S.F.
T-Mobile West LLC v. City and County of S.F.
Opinion
*1113 By ordinance the City and County of San Francisco (the City) requires wireless telephone service companies to obtain permits to *1114 install and maintain lines and equipment in public rights-of-way. Some permits will not issue unless the application conforms to the City's established *415 aesthetic guidelines. Plaintiffs assert a facial challenge urging that (1) the ordinance is preempted by state law and (2) even if not preempted, the ordinance violates a state statute. The trial court and the Court of Appeal rejected both arguments. We do likewise.
I. BACKGROUND
Plaintiffs are telecommunications companies. They install and operate wireless equipment throughout the City, including on utility poles located along public roads and highways. 1 In January 2011, the City adopted ordinance No. 12-11 (the Ordinance), 2 which requires "any Person seeking to construct, install, or maintain a Personal Wireless Service Facility in the Public Rights-of-Way to obtain" a permit. (S.F. Pub. Works Code, art.
**242 25, § 1500, subd. (a).) In adopting the Ordinance, the board of supervisors noted that the City "is widely recognized to be one of the world's most beautiful cities," which is vital to its tourist industry and an important reason that residents and businesses locate there. Due to growing demand, requests from the wireless industry to place equipment on utility poles had increased. The board opined that the City needed to regulate the placement of this equipment to prevent installation in ways or locations "that will diminish the City's beauty." The board acknowledged that telephone corporations have a right, under state law, "to use the public rights-of-way to install and maintain 'telephone lines' and related facilities required to provide telephone service." But it asserted that local governments may "enact laws that limit the intrusive effect of these lines and facilities."
The Ordinance specifies areas designated for heightened aesthetic review. (See S.F. Pub. Works Code, art. 25, § 1502.) These include historic districts and areas that have " 'good' " or " 'excellent' " views or are adjacent to parks or open spaces. ( Ibid .) The Ordinance establishes various standards of aesthetic compatibility for wireless equipment. In historic districts, for example, installation may only be approved if the City's planning department *1115 determines that it would not "significantly degrade the aesthetic attributes that were the basis for the special designation" of the building or district. (S.F. Pub. Works Code, art. 25, § 1502; see also id ., §§ 1508, 1509, 1510.) In "view" districts, proposed installation may not "significantly impair" the protected views. 3 (S.F. Pub. Works Code, art. 25, § 1502.)
Plaintiffs sought declaratory and injunctive relief. The operative complaint alleged five causes of action, only one of which is *416 at issue. 4 It alleges the Ordinance and implementing regulations are preempted by section 7901 and violate section 7901.1. Under section 7901, "telephone corporations may construct ... telephone lines along and upon any public road or highway, along or across any of the waters or lands within this State, and may erect poles, posts, piers, or abutments for supporting the insulators, wires, and other necessary fixtures of their lines, in such manner and at such points as not to incommode the public use of the road or highway or interrupt the navigation of the waters." 5 According to plaintiffs, section 7901 preempted the Ordinance to the extent it allowed the City to condition permit approval on aesthetic considerations.
Section 7901.1 sets out the Legislature's intent, "consistent with Section 7901, that municipalities shall have the right to exercise reasonable control as to the time, place, and manner in which roads, highways, and waterways are accessed." (§ 7901.1, subd. (a).) But section 7901.1 also provides that, to be considered reasonable, the control exercised "shall, at a minimum, be applied to all entities in an equivalent manner." (§ 7901.1, subd. (b).) Plaintiffs alleged the Ordinance violated subdivision (b) of section 7901.1 by treating wireless providers differently from other telephone corporations.
The trial court ruled that section 7901 did not preempt the challenged portions of the Ordinance and rejected plaintiffs' claim that it violated section 7901.1. The Court of Appeal affirmed. (
T-Mobile West
,
supra
, 3 Cal.App.5th at pp. 339, 359,
*1116 II. DISCUSSION
A. Section 7901 Does Not Preempt the Ordinance
1. Preemption Principles
Under the California Constitution, cities and counties "may make and enforce
**243
within [their] limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws." ( Cal. Const., art. XI, § 7.) General laws are those that apply statewide and deal with matters of statewide concern. (
Eastlick v. City of Los Angeles
(1947)
"[L]ocal legislation that conflicts with state law is void." (
*417
City of Riverside
,
supra
, 56 Cal.4th at p. 743,
The party claiming preemption has the burden of proof. (
Big Creek Lumber
,
supra
, 38 Cal.4th at p. 1149,
2. Analysis
Section 7901 provides that telephone corporations may construct lines and erect equipment along public roads in ways and locations that do not "incommode the public use of the road." We review the statute's language to determine the scope of the rights it grants to telephone corporations and whether, by granting those rights, the Legislature
**244
intended to preempt local regulation based on aesthetic considerations. These questions of law are subject to de novo review. (
Bruns v. E-Commerce Exchange, Inc.
(2011)
The parties agree that section 7901 grants telephone corporations a statewide
*418
franchise to engage in the telecommunications business.
7
(See
Western Union Tel. Co. v. Visalia
(1906)
Preliminarily, plaintiffs' argument appears to rest on the premise that the City only has the power to regulate telephone line construction based on aesthetic considerations if section 7901's incommode clause can be read to accommodate that power. That premise is flawed. As mentioned, the City has inherent local police power to determine the appropriate uses of land within its jurisdiction. That power includes the authority to establish aesthetic conditions for land use. Under our preemption cases, the question is not whether the incommode clause can be read to permit the City's exercise of power under the Ordinance. Rather, it is whether section 7901 divests the City of that power.
We also disagree with plaintiffs' contention that section 7901's incommode clause limits their right to construct lines only if the installed lines and equipment would obstruct the path of travel. Contrary to plaintiffs' argument, the incommode clause need not be read so narrowly. As the Court of Appeal noted, the word " 'incommode' " means " 'to give inconvenience or distress to: disturb.' " (
T-Mobile West
,
supra
, 3 Cal.App.5th at p. 351,
Plaintiffs assert the case law supports their statutory construction. For example,
City of Petaluma v. Pac. Tel. & Tel. Co
. (1955)
But these cases do not go as far as plaintiffs suggest. Each addressed the question whether a telephone corporation can be required to obtain a local franchise to operate. (See
Pacific Telephone I
,
supra
, 51 Cal.2d at p. 767,
A few published decisions have tangentially addressed the scope of the inherent local police power to regulate the manner and location of telephone line installations. Those cases cut against plaintiffs' proposed construction.
In
Pacific Tel. & Tel. Co. v. City & County of San Francisco
(1961)
This court, too, has distinguished the power to grant franchises from the power to regulate the location and manner of installation by permit. In
Visalia
,
supra
,
Plaintiffs argue the italicized language above shows that local regulatory authority is limited to preventing travel obstructions. But the quoted language is merely descriptive, not prescriptive.
Visalia
involved an ordinance that specifically prohibited interference with travel on city streets, and
*1121
the court was simply describing the ordinance before it, not establishing the bounds of local government regulatory authority. Moreover, the
Visalia
court did not question the propriety of the ordinance's requirement that all poles be a uniform height, nor suggest that requirement was related to preventing obstructions to travel. Thus,
Visalia
does not support the conclusion that section 7901 was meant to restrict local government power in the manner plaintiffs suggest. The "right of telephone corporations to construct telephone lines in public rights-of-way is not absolute." (
City of Huntington Beach v. Public Utilities Com.
(2013)
"The 'contradictory and inimical' form of preemption does not apply unless the ordinance directly requires what the state statute forbids or prohibits what the state enactment demands." (
City of Riverside
,
supra
, 56 Cal.4th at p. 743,
The argument that the Legislature occupied the field by implication likewise fails. Field preemption generally exists where the Legislature has comprehensively regulated in an area, leaving no room for additional local action. (See, e.g.,
American Financial Services Assn. v. City of Oakland
(2005)
City of Riverside
,
supra
,
Preemption was not implied because the Legislature had not tried "to fully occupy the field of medical marijuana regulation as a matter of statewide concern, or to partially occupy this field under circumstances indicating that further local regulation will not be tolerated." (
*1123
City of Riverside
,
supra
, 56 Cal.4th at p. 755,
Similarly, here, the Legislature has not adopted a comprehensive regulatory scheme. Instead, it has taken the limited step of guaranteeing that telephone corporations need not secure a local franchise to operate in the state or to construct local lines and equipment. Moreover, the statute leaves room for additional local action and there are **248 significant local interests relating to road use that may vary by jurisdiction.
Finally, plaintiffs' briefing raises arguments that sound in the theory of obstacle preemption. Under that theory, a local law would be displaced if it hinders the accomplishment of the purposes behind a state law. This court has never said explicitly whether state preemption principles are coextensive with the developed federal conception of obstacle preemption. (See, e.g.,
Great Western Shows, Inc. v. County of Los Angeles
(2002)
The gist of plaintiffs' argument is that section 7901 's purpose is to encourage technological advancement in the state's telecommunications networks and that, because enforcement of the Ordinance
could
hinder that purpose, the Ordinance is preempted. But no legislation pursues its objectives at all costs. (
Pension Ben. Guar. Corp. v. LTV Corp.
(1990)
*423 Moreover, the Legislature made clear that the goal of technological advancement is not paramount to all others by including the incommode clause in section 7901, thereby leaving room for local regulation of telephone line installation.
Finally, we think it appropriate to consider the Public Utilities Commission's (PUC) understanding of the statutory scheme. In recognition of its expertise, we have consistently accorded deference to the PUC's views concerning utilities regulation. The PUC's "interpretation of the Public Utility Code 'should not be disturbed unless it fails to bear a reasonable relation to statutory purposes and language.' " (
Southern California Edison Co. v. Peevey
(2003)
*1124
The state Constitution vests principal regulatory authority over utilities with the PUC, but carves out an ongoing area of municipal control. ( Cal. Const., art. XII, § 8.) A company seeking to build under section 7901 must approach the PUC and obtain a certificate of public necessity. (§ 1001; see
City of Huntington Beach
,
supra
, 214 Cal.App.4th at p. 585,
Consistent with these statutes, the PUC's default policy is one of deference to municipalities in matters concerning the design and location of wireless facilities. In a 1996 opinion adopting the general order governing wireless facility construction, the PUC states the general order "recognize[s] that primary authority regarding cell siting issues should continue to be deferred to local authorities. ... The [PUC's] role continues to be that of the agency of last resort, intervening only when a utility contends that local actions impede statewide goals ...." ( Re Siting and Environmental Review of Cellular Mobile Radiotelephone Utility Facilities (1996) 66 Cal.P.U.C.2d 257, 260 ; see also Re Competition for Local Exchange Service (1998) 82 Cal.P.U.C.2d 510, 544.) 12 The order itself "acknowledges that local citizens and local government are often in a better position than the [PUC] to measure local impact and to identify alternative sites. Accordingly, the [PUC] will generally defer to local governments to regulate the location and design **249 of cell sites ...." (PUC, General order No. 159-A (1996) p. 3 (General Order 159A), available at < http://docs.cpuc.ca.gov/PUBLISHED/Graphics/611.PDF> [as of April 3, 2019].)
The exception to this default policy is telling: the PUC reserves the right to preempt local decisions about specific sites "when there is a clear conflict with the [PUC's] goals and/or statewide interests." (General Order 159A, supra , at p. 3.) In other words, generally the PUC will not object to municipalities dictating alternate *424 locations based on local impacts, 13 but it will step in if statewide goals such as "high quality, reliable and widespread cellular services to state residents" are threatened. (General Order 159A, at *1125 p. 3.) Contrary to plaintiffs' view of the respective spheres of state and local authority, the PUC's approach does not restrict municipalities to judging only whether a requested permit would impede traffic. Instead, the PUC accords local governments the full scope of their ordinary police powers unless the exercise of those powers would undermine state policies.
Plaintiffs argue our construction of section 7901, and a decision upholding the City's authority to enforce the Ordinance, will "hinder the roll-out of advanced services needed to upgrade networks [and] promote universal broadband" and will "stymie the deployment of 5G networks, leaving California unable to meet the growing need for wireless capacity created by the proliferation of ... connected devices." This argument is premised on a hypothetical future harm that is not cognizable in a facial challenge. (
Pacific Legal Foundation v. Brown
(1981)
In sum, neither the plain language of section 7901 nor the manner in which it has been interpreted by courts and the PUC supports plaintiffs' argument that the Legislature intended to preempt local regulation based on aesthetic considerations. The statute and the ordinance can operate in harmony. Section 7901 ensures that telephone companies are not required to obtain a local franchise, while the Ordinance ensures that lines and equipment will not unreasonably incommode public road use. 14
B. The Ordinance Does Not Violate Section 7901.1
Plaintiffs next contend that, even if not preempted, the Ordinance violates section 7901.1 by singling out wireless telephone corporations for regulation. Section 7901.1 provides in relevant part that, consistent with section 7901, municipalities may "exercise reasonable control as to the time, place, and manner" in which roads are " accessed ," and that the control must " be applied to all entities in an equivalent manner. " ( § 7901, subds. (a), (b), italics added.)
*1126 Before trial, the parties stipulated to the following facts. First, that the City requires all utility and telephone corporations, both wireless and non-wireless, to *425 obtain temporary occupancy permits to "access" public rights-of-way during the initial construction and installation of equipment facilities. These permits are not subject to aesthetic review. Second, that the City requires only wireless **250 telephone corporations to obtain site-specific permits, conditioned on aesthetic approval, for the ongoing occupation and maintenance of equipment facilities in public rights-of-way. The trial court and the Court of Appeal held that section 7901.1 only applies to temporary access to public rights-of-way, during initial construction and installation. Because the parties had stipulated that the City treats all companies equally in that respect, the lower courts found no violation of section 7901.1.
Plaintiffs argue the plain language of section 7901.1 does not limit its application to temporary access to public rights-of-way. Rather, the introductory phrase, "consistent with section 7901," demonstrates that section 7901.1 applies to both short-and long-term access. Plaintiffs also suggest that the legislative history of section 7901.1 supports their position, and that the lower courts' interpretation of section 7901.1"results in an incoherent approach to municipal authority."
Plaintiffs' arguments are unpersuasive. Section 7901.1 allows cities to control the time, place, and manner in which roads are "accessed." ( § 7901.1, subd. (a).) As the competing arguments demonstrate, the "plain meaning of the word 'accessed' is ambiguous." (
T-Mobile West
,
supra
, 3 Cal.App.5th at p. 358,
However, the legislative history shows that section 7901.1 only deals with temporary access to public rights-of-way. "This bill is intended to bolster the cities['] abilities with regard to construction management ...." (Sen. Rules Com., Off. of Sen. Floor Analyses, 3d reading analysis of Sen. Bill No. 621 (1995-1996 Reg. Sess.) as amended May 3, 1995, p. 3, italics added.) Before section 7901.1 's enactment, telephone companies had been taking the "extreme" position, based on their statewide franchises, that "cities [had] absolutely no ability to control construction." (Assem. Com. on Utilities and Commerce, Rep. on Sen. Bill No. 621 (1995-1996 Reg. Sess.) as amended July 7, 1995, p. 2.) Section 7901.1 was enacted to "send a message to telephone corporations that cities have authority to manage their construction, without *1127 jeopardizing the telephone [corporations'] statewide franchise." (Sen. Rules Com., Off. of Sen. Floor Analyses, 3d reading analysis of Sen. Bill No. 621 (1995-1996 Reg. Sess.) as amended May 3, 1995, p. 3.) Under section 7901.1, cities would be able to "plan maintenance programs, protect public safety, minimize public inconvenience, and ensure adherence to sound construction practices." (Assem. Com. on Utilities and Commerce, Rep. on Sen. Bill No. 621 (1995-1996 Reg. Sess.) as amended July 7, 1995, p. 2.)
To accept plaintiffs' construction of section 7901.1, we would have to ignore this legislative history. (
T-Mobile West
,
supra
, 3 Cal.App.5th at p. 358,
III. DISPOSITION
The judgment of the Court of Appeal is affirmed.
We Concur:
CANTIL-SAKAUYE, C. J.
CHIN, J.
LIU, J.
CUÉLLAR, J.
KRUGER, J.
GROBAN, J.
The plaintiffs named in the operative complaint were T-Mobile West Corporation, NextG Networks of California, Inc., and ExteNet Systems (California) LLC. T-Mobile West Corporation has also appeared in this litigation as T-Mobile West LLC. NextG Networks of California, Inc. has also appeared as Crown Castle NG West LLC and Crown Castle NG West Inc. (
T-Mobile West LLC v. City and County of San Francisco
(2016)
The Ordinance was codified as article 25 of the San Francisco Public Works Code.
The Court of Appeal discussed other provisions of a previous enactment of the Ordinance that are not in issue here. (
T-Mobile West
,
supra
, 3 Cal.App.5th at pp. 340-341,
Plaintiffs' first, second, fourth, and fifth causes of action are not before us. The first cause of action was resolved in plaintiffs' favor by summary adjudication. The second was dismissed by plaintiffs before trial. The fourth was resolved in City's favor by summary adjudication. And the fifth was resolved in plaintiffs' favor after trial.
This case does not involve the construction or installation of lines or equipment across state waters. Thus, we limit our discussion to lines installed along public roads and highways, which we refer to collectively as public roads.
There is some uncertainty regarding the standard for facial constitutional challenges to statutes and local ordinances. (
Today's Fresh Start, Inc. v. Los Angeles County Office of Education
(2013)
In this context, a franchise is a "government-conferred right or privilege to engage in specific business or to exercise corporate powers." (Black's Law Dict. (10th ed. 2014) p. 772, col. 2.)
All Internet citations in this opinion are archived by year, docket number, and case name at < http://www.courts.ca.gov/38324.htm>.
The predecessor of section 7901, Civil Code section 536, was first enacted in 1872 as part of the original Civil Code. (
Anderson v. Time Warner Telecom of California
(2005)
Visalia interpreted a predecessor statute, Civil Code section 536, which was repealed in 1951 and reenacted as section 7901. (Stats. 1951, ch. 764, pp. 2025, 2194, 2258 [reenacting Civ. Code, former § 536 as Pub. Util. Code, § 7901 ].)
The Ninth Circuit has addressed this issue twice, coming to a different conclusion each time. In
Sprint PCS Assets v. City of Palos Verdes Estates
(9th Cir. 2009)
In its 1996 opinion adopting general order No. 159-A, the PUC left implicit the portions of the statutory scheme it was applying. In its 1998 opinion, the PUC clarified the respective regulatory spheres in response to arguments based on sections 2902, 7901, 7901.1 and the constitutional provisions allocating authority to cities and the PUC. (See Re Competition for Local Exchange Service , supra , 82 Cal.P.U.C.2d at pp. 543-544.)
Among the PUC's express priorities regarding wireless facility construction is that "the public health, safety, welfare, and zoning concerns of local government are addressed." (General Order 159A, supra , at p. 3.)
We dispose here only of plaintiffs' facial challenge and express no opinion as to the Ordinance's application. We note, however, that plaintiffs seeking to challenge specific applications have both state and federal remedies. Under state law, a utility could seek an order from the PUC preempting a city's decision. (General Order 159A,
supra
, at p. 6.) Thus, cities are prohibited from using their powers to frustrate the larger intent of section 7901. (
Pacific Telephone II
,
supra
, 197 Cal.App.2d at p. 146,
Reference
- Full Case Name
- T-MOBILE WEST LLC Et Al., Plaintiffs and Appellants, v. CITY AND COUNTY OF SAN FRANCISCO Et Al., Defendants and Respondents.
- Cited By
- 24 cases
- Status
- Published