Nancy Torresen, United States District Judge.
Last year, Maine enacted L.D. 1371, "An Act To Ensure Nondiscriminatory Treatment of Public, Educational and Governmental Access Channels by Cable System Operators" (
Plaintiff NCTA — The Internet & Television Association (
"The earliest cable systems were built in the late 1940's to bring clear broadcast television signals to remote or mountainous communities." Turner Broad. Sys., Inc. v. FCC ("Turner I"), 512 U.S. 622, 627, 114 S.Ct. 2445, 129 L.Ed.2d 497 (1994). Cable operators, in contrast to broadcasters that send signals over the airwaves, rely on a "physical, point-to-point connection between a transmission facility and the television sets of individual subscribers." Id. at 627-28, 114 S.Ct. 2445. In order to lay the cables necessary for the development of cable systems, cable operators used public rights of way. As a result,
For many years, cable television was primarily regulated by local governments through a franchise process. H.R. Rep. No. 98-934 at 4656-57, reprinted in 1984 U.S. Code Cong. & Admin. News ("
With the 1984 Cable Act, Congress regulated cable television for the first time by adding "provisions governing the operation of cable providers and franchises" to the Communications Act of 1934. All. for Cmty. Media v. FCC, 529 F.3d 763, 767-68 (6th Cir. 2008). In the 1984 Cable Act, Congress continued to rely "on the local franchising process as the primary means of cable television regulation, while defining and limiting the authority that a franchising authority may exercise through the franchise process." House Report 98-934 at 4656. Wanting to encourage the growth of the cable industry, Congress sought to "`reliev[e] the cable industry from unnecessary, burdensome regulation.'" Liberty Cablevision of P.R., Inc. v. Mun. of Caguas, 417 F.3d 216, 219 (1st Cir. 2005) (quoting Am. Civil Liberties Union v. FCC, 823 F.2d 1554, 1559 (D.C. Cir. 1987)). At the same time, Congress sought to "`ensur[e] that cable systems remain responsive to the needs of the public.'" Id. As one commentator noted:
R. Copple, Cable Television and the Allocation of Regulatory Power: A Study of Government Demarcation and Roles, 44 Fed. Comm. L.J. 1, 4 (1991).
To this day, local franchising authorities retain the right to award and renew franchises, 47 U.S.C. §§ 541, 546, and "establish requirements for facilities and equipment." 47 U.S.C. § 544(b)(1). But states and franchising authorities are generally not allowed to regulate rates charged by cable operators that are subject to effective competition, 47 U.S.C. § 543(a)(1)-(2), and they cannot prohibit, condition, or restrict a cable system's use of subscriber equipment or transmission technology. 47 U.S.C. § 544(e).
Federal Cable Law provides cable operators with various protections, including procedures and standards that govern the renewal of incumbent cable franchises. See 47 U.S.C. § 546. In contrast to the initial franchising provision, which contains little detail, see 47 U.S.C. § 541, the renewal provision sets forth a process that requires consideration of the cable operator's track record, the quality of the cable operator's service, and whether the cable operator's
Federal Cable Law also contains provisions governing PEG channels. 47 U.S.C. §§ 531, 541(a)(4)(B). Congress considered PEG channels to be the "video equivalent of the speaker's soap box or the electronic parallel to the printed leaflet" and important to ensuring a diversity of voices and an informed citizenry. House Report 98-934 at 4667. Congress included provisions allowing franchising authorities to require "adequate assurance that the cable operator will provide adequate public, educational, and governmental access channel capacity." 47 U.S.C. § 541(a)(4)(B). Franchising authorities retained the rights to include requirements for the designation and use of PEG channels in their requests for initial proposals and renewals, 47 U.S.C. § 531(b), and to enforce any requirements within their franchise agreements "regarding the providing or use of such channel capacity" including
47 U.S.C. § 531(c).
Maine has expressly authorized municipalities to enter franchise agreements with cable operators. 30-A M.R.S. § 3008. Maine law regulating the cable industry is found at 30-A M.R.S. §§ 3008-3010. Section 3008(5) contains various requirements that municipalities must include in franchise agreements. Section 3010, entitled "Consumer rights and protection relating to cable television service," sets forth consumer protection and customer rights provisions that apply directly to cable operators.
LD 1371 amends § 3008(5) and § 3010 to address concerns about PEG channel access. Within the last several years, cable operators began taking steps that made it more difficult to find and watch PEG channels. Decl. of Anthony Vigue ¶¶ 4-5, 9 (ECF No. 25). First, cable operators began moving PEG channels from their longstanding channel positions in the single-digits to hard-to-find subchannels or channel positions in the 1300 block of channels, a region dubbed "digital Siberia." Id. Viewers had difficulty finding their local PEG channels, and the problem was compounded by the fact that the electronic programming guide identifies PEG channels only as "LOCAL" and without a description of programming that is seen for other channels. Id. ¶¶ 14-19. Second, although some PEG stations produce their content in high definition (
LD 1371 also amends § 3008(5) to address the extension of cable services to more rural areas of Maine. Franchise agreements must now contain a line extension policy with "a minimum density requirement of no more than 15 residences per linear strand mile of aerial cable for areas in which the cable system operator will make cable television service available to every residence." 30-A M.R.S. § 3008(5)(B).
The Plaintiff contends that the PEG provisions and the line extension provision of LD 1371 are preempted by Federal Cable Law and that the PEG provisions violate the First Amendment rights of its cable operator members. I address each argument in turn.
Article VI of the Constitution provides that the laws of the United States "shall be the supreme Law of the Land... any Thing in the Constitution or Laws of any State to the Contrary notwithstanding." U.S. Const. art VI, cl. 2. "[S]tate law that conflicts with federal law is without effect." Cipollone v. Liggett Grp., Inc., 505 U.S. 504, 516, 112 S.Ct. 2608, 120 L.Ed.2d 407 (1992) (internal quotation marks omitted). The Supreme Court has made clear that:
Medtronic, Inc. v. Lohr, 518 U.S. 470, 485, 116 S.Ct. 2240, 135 L.Ed.2d 700 (1996) (quoting Rice v. Santa Fe Elevator Corp., 331 U.S. 218, 230, 67 S.Ct. 1146, 91 S.Ct. 1447 (1947)).
Congress may preempt state law either directly—through an express preemption provision in a federal statute—or implicitly. Grant's Dairy—Me., LLC v. Comm'r of Me. Dep't of Agric., Food & Rural Res., 232 F.3d 8, 15 (1st Cir. 2000). Even where state law is not inconsistent with federal law, "conflict pre-emption exists where ... the state law stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress." Oneok, Inc. v. Learjet, Inc., 575 U.S. 373, 377, 135 S.Ct. 1591, 191 L.Ed.2d 511 (2015) (internal quotation marks omitted). The Supreme Court has instructed that courts "should not find pre-emption too readily in the absence of clear evidence of a conflict." Geier v. Am. Honda Motor Co., 529 U.S. 861, 885, 120 S.Ct. 1913, 146 L.Ed.2d 914 (2000).
In the 1984 Cable Act, Congress exerted federal authority over cable where there was a need for uniform, national standards, and it ratified local and state control where those authorities were in a better position "to fine tune regulation in a manner that best addresses unique local conditions and needs." Copple, 44 Fed. Comm. L.J. at 39-46. This statutory structure has aptly been described as a "selective preemption" scheme. Id. at 48. The "appropriate size, capacity, and configuration
Federal Cable Law contains several provisions dealing specifically with the division of regulatory authority and with preemption.
The Plaintiff seeks to have the four provisions of LD 1371 struck down as facially unconstitutional. Facial challenges are generally disfavored because they are often based on speculation, contrary to principles of judicial restraint, and subversive of the democratic process. Wash. State Grange v. Wash. State Republican Party, 552 U.S. 442, 450-51, 128 S.Ct. 1184, 170 L.Ed.2d 151 (2008) (citations omitted).
United States v. Stevens, 559 U.S. 460, 472, 130 S.Ct. 1577, 176 L.Ed.2d 435 (2010) (noting a dispute as to which standard applies but sidestepping the issue). The First Circuit has applied the Salerno standard to a facial preemption challenge. See Pharm. Research & Mfrs. of Am. v. Concannon, 249 F.3d 66, 77-78 (1st Cir. 2001), aff'd sub nom. Pharm. Research & Mfrs. of Am. v. Walsh, 538 U.S. 644, 123 S.Ct. 1855, 155 L.Ed.2d 889 (2003); Ouellette v. Mills, 91 F.Supp.3d 1, 6 (D. Me. 2015). "The existence of a hypothetical or potential conflict is insufficient to warrant the pre-emption of the state statute." Rice v. Norman Williams Co., 458 U.S. 654, 659, 102 S.Ct. 3294, 73 L.Ed.2d 1042 (1982).
The Plaintiff argues that the line extension provision is preempted for two reasons. First, the Plaintiff contends that the State's role in dictating the line extension terms of franchise agreements is inconsistent with the structure of Federal Cable Law. Second, the Plaintiff argues that the line extension provision conflicts with the franchise renewal procedures, specifically with 47 U.S.C. § 546(c)(1)(D), which requires renewal requirements to be reasonable to meet community needs given the cost of implementation. Pl.'s Mot. for Prel. Inj. ("
I begin with the Plaintiff's argument that the line extension provision conflicts with the structure of Federal Cable Law, which envisions that decisions about line extension will be made by franchising authorities and cable operators during the franchise renewal process, not mandated by the State. Mot. 9. The Plaintiff is correct that line extension requirements are within the purview of local franchising authorities. 47 U.S.C. § 552(a)(2) (franchising authority may establish and enforce "construction schedules and other construction-related requirements, including construction-related performance requirements, of the cable operator").
Federal Cable Law does not restrict state authority to dictate terms in municipal franchise agreements. Section 556, which is entitled "Coordination of Federal, State, and local authority," provides: "Nothing in this subchapter shall be construed to affect any authority of any state, political subdivision, or agency thereof, or franchising authority, regarding matters of public health, safety, and welfare, to the extent consistent with the express provisions of this subchapter." 47 U.S.C. § 556(a). It is unclear whether § 556(a) is intended to address the relationship between states and local authorities, and therefore it is appropriate to review the legislative history. See Milner v. Dep't. of Navy, 562 U.S. 562, 572, 131 S.Ct. 1259, 179 L.Ed.2d 268 (2011) ("[C]lear evidence of congressional intent may illuminate ambiguous text."). The comprehensive House Report for the 1984 Cable Act clarifies that § 556 was not intended:
House Report 98-934 at 4731 (emphasis added).
Because Maine's municipal franchising authorities derive their power from the State, the Maine Legislature has the right to dictate the terms of municipal franchise agreements, including line extension requirements, so long as it does not require compliance prior to the expiration of a current franchise. The State has acknowledged that the line extension requirement does not apply to existing franchises.
The Plaintiff also argues that the line extension provision is inconsistent with Federal Cable Law's renewal provision, which requires franchising authorities to consider the "cable-related community needs and interests, taking into account
The problem with this argument is that it assumes that the State is making the final line extension decision for franchising authorities. However, the Maine Legislature, in enacting LD 1371, is not renewing franchise agreements. Rather it is making a state-wide policy decision that cable services should be extended to all areas where there are 15 residences per linear strand mile. The franchising authorities must still negotiate the renewal of their franchise agreements, including line extension provisions.
In order to prevail on its facial challenge, the Plaintiff must show that no set of circumstances exists in which the line extension requirement would be valid or that the State provision lacks a plainly legitimate sweep. The Plaintiff argues that the line extension provision "is unlawful in every case" because it circumvents the requirement that renewal provisions be reasonable to meet community needs in light of the implementation costs. Reply 3 (ECF No. 51); see 47 U.S.C. § 546(c)(1)(D). But, as just discussed, the State is not denying the renewal of a franchise, and Federal Cable Law does not prohibit States from imposing requirements on franchise agreements negotiated by municipalities.
While it is possible that the line extension requirement could be unreasonable given the costs of implementation in some municipalities, the Plaintiff has not met its burden of showing that the law will be unconstitutional in every application or that it lacks a plainly legitimate sweep. NCTA submitted an affidavit by Charter Communications that indicates that "some" of Charter's 292 "Maine franchise agreements include specific line-extension requirements of up to 43 homes-per-mile" and that the line extension provision "would alter a significant number of the franchise agreements Charter operates under in Maine, the broad majority of which do not require Charter to expand lines to the density level specified in the Maine Act." Decl. of Adam Falk ¶¶ 15, 17 (emphasis added) (ECF No. 3-1). Charter declares that the cost of the line extension will run into the "tens of thousands of dollars per mile." Id. ¶ 18. Similarly, an affidavit submitted by Comcast avers that all fifteen of Comcast's "Maine franchise agreements contain line-extension policies that range from 17 to 30 homes-per-mile for aerial lines, with alternative density requirements for underground lines." Decl. of Mark Reilly ¶ 13 (ECF No. 3-2). Comcast estimates that the cost per mile to expand service to meet the State's line extension requirement could exceed $100,000 per mile. Id. ¶ 15. The Plaintiff fails to demonstrate how many municipalities will be affected or how many miles will require extension, and it appears from these affidavits that at least some municipalities might not be affected at all.
It is impossible to state on the record before me that there exists no set of circumstances under which the line extension provision would be valid. It makes more sense to allow cable operators to challenge the provision on a case by case basis, where a factual record can be developed to show whether a line extension term required by a particular franchising authority is reasonable to meet the community's needs in light of the costs. 47 U.S.C. § 546(c)(1).
Similarly, the Plaintiff has failed to show that the line extension requirement lacks a plainly legitimate sweep. As the State points out, the only provision in Federal Cable Law that expressly addresses line extension provides that a franchising authority "shall allow the applicant's cable system a reasonable period of time to become capable of providing cable service to all households in the franchise area." 47 U.S.C. § 541(a)(4)(A) (emphasis added). This provision, first enacted in 1984, suggests that franchising authorities can require universal buildout, provided they give cable operators enough time to do so.
On the record before me, I conclude that the Plaintiff's facial challenge to the line extension provision fails.
The Plaintiff argues that the PEG provisions in LD 1371 also are preempted because they conflict with Federal Cable Law. Specifically, the Plaintiff contends that the PEG provisions exceed the limited authority that Federal Cable Law bestows on franchising authorities in the PEG channel realm. Mot. 9-10 (citing 47 U.S.C. §§ 531(a), 541(a)(4)). The State counters that franchising authorities are given broad authority to make and enforce requirements related to PEG channels and that the State can enact the PEG provisions, effective immediately, as consumer protection laws. Opp'n 14-15 (ECF No. 24) (citing 47 U.S.C. §§ 531(c), 552(d)(1)).
Federal Cable Law does not define the term "public, educational, or governmental use." The Supreme Court has said that PEG channels "are channels that, over the years, local governments have required cable system operators to set aside for public, educational, or governmental purposes as part of the consideration an operator gives in return for permission to install cables under city streets and to use public rights-of-way." Denver Area Educ. Telecomms.
Federal Cable Law also does not dictate how PEG channels are to operate, instead giving franchising authorities the right to set requirements for PEG channels as part of their initial franchise agreements and renewals. 47 U.S.C. §§ 531(b), 541; Copple, 44 Fed. Comm. L.J. at 148 (Federal Cable Law leaves "the majority of questions regarding the designation and administration of PEG channels to state and local authorities.").
The parties point to two provisions in Federal Cable Law that deal specifically with PEG channels. The first, found in the general franchise provision, states: "In awarding a franchise, a franchising authority... may require adequate assurance that the cable operator will provide adequate public, educational, and governmental access channel capacity, facilities, or financial support." 47 U.S.C. § 541(a)(4).
The second provision, found at 47 U.S.C. § 531, is devoted entirely to PEG channels.
Further, as I discussed in the line extension provision section, when a state is dictating the terms of municipal franchise agreements, it cannot require that a particular provision be included before the expiration of the current franchise. House Report 98-934 at 4731. However nothing in Federal Cable Law indicates that a state cannot impose a consumer protection requirement on an existing franchise.
LD 1371 adds a new subsection to the State's consumer protection law for cable, requiring cable operators to carry PEG channels on the basic tier and prohibiting cable operators from separating PEG channels numerically from other local broadcast channels or changing the numbers assigned to PEG channels unless agreed to by the originator. 30-A M.R.S. § 3010(5-A). Section 3010(5-A) also requires cable operators to restore PEG channels that have been moved from their previous channel numbers without the consent of the originator.
I agree with the State that the channel placement requirements are consumer protection laws.
Having found that the PEG channel placement requirements are consumer protection
The Plaintiff argues that "under federal law, the only cable systems that may be required to carry PEG channels on their `basic service tier' are those that are not subject to `effective competition.'" Mot. 10. Section 543 authorizes states to regulate rates charged by cable operators not subject to effective competition. Section 543(b)(7) provides that cable systems that lack effective competition must provide a "separately available basic service tier" with certain minimum components, including PEG programming. 47 U.S.C. § 543(b)(7). The Plaintiff asserts that, because Maine is subject to effective competition, § 543(b)(7) is inapplicable and conflicts with the requirement that PEG channels be carried on the basic tier. Mot. 10. But, the federal requirement that cable systems not subject to effective competition must include PEG channels on the basic tier, says nothing about whether states may require cable operators subject to effective competition to carry PEG channels on the basic tier.
Similarly, the Plaintiff argues that the channel placement provisions are preempted because Congress enacted channel placement requirements for local commercial television stations and noncommercial educational television stations in §§ 534(b)(6) and 535(g)(5), respectively, but did not do so for PEG channels in § 531. Mot. 10 (citing Russello v. United States, 464 U.S. 16, 23, 104 S.Ct. 296, 78 L.Ed.2d 17 (1983) (Where Congress "includes particular language in one section of a statute but omits it in another section of the same Act, it is generally presumed that Congress acts intentionally and purposely in the disparate inclusion or exclusion.") (internal quotation marks omitted)). Again, Congress's decision to require specific channel placement for certain classes of stations says nothing about a state or franchising authority's right to require specific channel placement for PEG stations.
LD 1371 amends Maine's cable consumer protection statute to require cable operators to carry PEG channels in both HD format and SD format in the same manner that local broadcast channels are provided. 30-A M.R.S. § 3010(5-B).
As to the question of whether the HD/SD requirements are consumer protection laws, I consider the evidence that cable operators are down-converting PEG channels' programming transmitted in HD format to SD format, resulting in a smaller, grainier picture than other channels. Decl. of Anthony Vigue ¶ 21. The effect is that viewers "skip over" PEG channels. Id. ¶ 23. Better picture quality will improve not only the visibility but the credibility of PEG channels with subscribers. See Decl. of Patrick Bonsant ¶ 10 (ECF No. 27); Decl. of Andrew Collar ¶ 6 (ECF No. 29); Decl. of William Bridoeo ¶ 6 (ECF No. 35). Ensuring that PEG channel signals are not downgraded and that PEG channels have picture quality comparable to almost all of the other channels directly relates to the quality of PEG programming. As such, I conclude that the HD/SD requirements are appropriately considered consumer protection laws.
The Plaintiff contends that 47 U.S.C. § 544(e), which deals with technical standards, specifically preempts the HD/SD requirements. Section 544(e) provides in full:
47 U.S.C. § 544(e). The Plaintiff argues that requiring cable operators to retransmit PEG channels in HD either imposes a "condition ... [on] a cable system's use of... transmission technology" or is a "signal quality" issue within the realm of the FCC. In either case, according to the Plaintiff, § 544(e) specifically preempts the HD/SD requirements. Mot 11-12. The State counters that HD/SD are not "transmission technologies" at all.
To begin, the Plaintiff offers little evidentiary support and no expert guidance for its contention that HD/SD is a "transmission technology." The affidavits that the Plaintiff submitted describe SD as a "transmission format" or a "technical format" and do not assert that HD/SD is a transmission technology. Decl. of Adam Falk ¶¶ 24-25, 38; Decl. of Mark Reilly ¶¶ 20, 22-23; Rebuttal Decl. of Mark Reilly ¶ 8 (ECF No. 51-1). In contrast, the State's affiant claims:
Decl. of Anthony Vigue ¶ 26.
The FCC has acknowledged that the line between impermissible regulations of "transmission technology," as prohibited by 47 U.S.C. § 544(e), and permissible regulations of "facilities and equipment," as provided for in 47 U.S.C. § 544(b), is a difficult one to draw. In Re Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, Report and Order, 14 FCC Rcd 5296, 5356-57 ¶ 141. The FCC has stated:
Id. at 5356-57 ¶ 141; see also In Re Implementation of Cable Act Reform Provisions of Telecommunications Act of 1996, 17 FCC Rcd 7609, 7610 ¶ 4 (2002). While the FCC seems to believe that "transmission technology" is broader than Mr. Vigue represented, the FCC does not say anything about whether HD/SD is a transmission technology.
Perhaps the Plaintiff did not attempt to introduce evidence on transmission technology because, as it concedes in its briefing, "Congress has made clear that the carriage of programming in HD is a `[s]ignal quality' issue." Mot. 11.
Assuming HD technology is a "signal quality" issue, § 544(e) does not "specifically preempt[]" Maine's consumer protection law. Congress demonstrated that it knows how to restrict state authority in § 544(e), and it did so with regard to "subscriber equipment" and "transmission technology." It also demonstrated that it considered the issue of "signal quality." See 47 U.S.C. § 544(e). The fact that "signal quality" is not included with "subscriber equipment or any transmission technology" in the list of things a state cannot "prohibit, condition, or restrict," leads me to conclude that § 544(e) does not specifically preempt the HD/SD requirements if they do regulate signal quality.
LD 1371 amends the State's cable consumer protection statute to require that cable operators assist PEG channel originators with using the electronic programming guide to identify, view, select, and record PEG channels in the same manner as local broadcast channels. 30-A M.R.S. § 3010(5-B).
As to whether the programming guide requirements fall within the category of consumer protection legislation, the evidence shows that, unlike other channels provided by the cable operators, PEG channels and their programming are not adequately identified in the electronic programming guide. Decl. of Anthony Vigue ¶¶ 11-16; Decl. of William Giroux ¶ 5 (ECF No. 26); Decl. of Steve Eldridge ¶ 6 (ECF No. 30). "In this age of hundreds of available channels, an electronic program guide is, effectively, the only way that subscribers can figure out what is available to watch." Decl. of Anthony Vigue ¶ 11. As with the channel placement requirements, a consumer's ability to locate programming easily relates to the quality of the viewing experience. Ensuring that consumers can access PEG channels is an appropriate subject for consumer protection legislation.
The Plaintiff posits that the programming guide provision is preempted because it is either a "cable service" as defined by 47 U.S.C. § 522(6)
If a programming guide is an information service, the Plaintiff contends that the programming guide requirement is preempted by § 544(b)(1)'s requirement that franchising authorities may not "establish requirements for video programming or other information services." Mot. 13 (citing 47 U.S.C. § 544(b)(1)). As discussed above, § 544(b)(1) applies only to franchising authorities, not states. Congress knows how to distinguish between states and franchising authorities, and it does so frequently in other sections of the Federal Cable Act. See supra n.12. The State is imposing the electronic programming guide requirement directly on cable operators and is not acting as a franchising authority. Therefore, I conclude that § 544(b)(1) does not "specifically preempt[]" the electronic programming guide provision. See 47 U.S.C. § 552(d).
Because I find that the Plaintiff has not established that any of the contested provisions in LD 1371 are preempted by Federal Cable Law, I go on to address the Plaintiff's argument that the PEG provisions violate the First Amendment.
The Plaintiff argues that the PEG provisions violate the First Amendment rights of cable operators because the law limits cable operators' editorial discretion over how to retransmit PEG channels and should be subject to strict scrutiny. Mot. 15-17. The State disagrees.
The threshold question in a First Amendment challenge is whether government action infringes on a plaintiff's First Amendment rights. See Turner I, 512 U.S. at 636, 114 S.Ct. 2445. The First Amendment, applied to the State through the Fourteenth Amendment, provides that the State "shall make no law ... abridging the freedom of speech." U.S. Const. amend. I.
Generally, cable operators have editorial discretion, protected by the First Amendment, to decide what channels and programming to provide to subscribers and how to do so. Turner I, 512 U.S. at
Id. (quotation marks, citations, and alternations omitted). Turner I addressed whether Federal Cable Law provisions that require cable operators to carry the signals of certain local broadcast television stations ("
Notwithstanding the recognition of cable operators' First Amendment editorial discretion in Turner I, Federal Cable Law expressly prohibits cable operators from "exercis[ing] any editorial control over any public, educational, or governmental use of channel capacity...." 47 U.S.C. § 531(e). For PEG channels, Congress secured the reins of editorial control in the hands of local franchising authorities. 47 U.S.C. § 531(c), (e).
In Denver Area Education Telecommunications Consortium, Inc. v. FCC, the Supreme Court addressed the constitutionality of the 1992 amendments to Federal Cable Law that gave cable operators the right to prohibit obscene programming on leased channels
In Denver, three members of the Supreme Court stated that cable operators' First Amendment rights were "nonexistent, or at least much diminished" in the PEG realm because of the historical practice. 518 U.S. at 761, 116 S.Ct. 2374 (plurality). Justices Kennedy and Ginsburg, who did not join the plurality opinion, went further. They explained that cable operators' editorial discretion over PEG channels "never existed." Id. at 792-93, 116 S.Ct. 2374 (Kennedy, J., concurring). The First Amendment
Id. (Kennedy, J., concurring).
Section 531(e) provides that "a cable operator shall not exercise any editorial control over any public, educational, or governmental use of channel capacity provided pursuant to this section." 47 U.S.C. § 531(e) (emphasis added). Congress "believe[d] that it [was] integral to the concept of the use of PEG channels that such use be free from any editorial control or supervision by the cable operator." House Report 98-934 at 4684. In the leased channel context, Congress enacted a narrower provision: "A cable operator shall not exercise any editorial control over any video programming provided pursuant to this section, or in any other way consider the content of such programming." 47 U.S.C. § 532(c)(2). These distinctions are important for evaluating the Plaintiff's claim that cable operators have at least some First Amendment interests in the PEG channel realm.
The Plaintiff acknowledges that its members "may not exercise editorial control over the content of PEG programming." Mot. 16 (citing 47 U.S.C. § 531(e)) (emphasis added). But, as just discussed, § 531(e) is broader than the Plaintiff asserts. As such, it comfortably covers matters relating to PEG channel placement, format, and programming guides. These are matters dealing with the "use" of PEG channel capacity, and thus they are outside of cable operators' general editorial control. See 47 U.S.C. § 531(e). The Plaintiff cites Riley v. National Federation of the Blind of N.C., Inc., 487 U.S. 781, 790-91, 108 S.Ct. 2667, 101 L.Ed.2d 669 (1988), for the proposition that "[t]he First Amendment mandates that [courts] presume that speakers, not the government, know best both what they want to say and how to say it." Mot. 16. But here it is the franchising authorities, not the cable operators, who are the speakers that get to decide what they want to say and how they want to say it.
The Plaintiff argues that cable operators still retain "editorial discretion in deciding
While the Plaintiff asserts an interest in editorial control over "scarce bandwidth," it does not provide any actual evidence that bandwidth is scarce. Only eleven municipalities served by Comcast have elected to designate PEG channels, and only one-third of Charter's 292 municipalities have designated PEG channels. Decl. of Mark Reilly ¶ 18; Decl. of Adam Falk ¶ 21. In the Standish area, Spectrum has assigned channel numbers ranging from 4 to 2,010, but only 439 channels appear to be currently in use and only four are designated for PEG use. Def.'s Ex. A (ECF No. 25-1) (listing of channels offered). Similarly, Spectrum offers roughly 378 channels in Augusta, only three of which are PEG channels. Def.'s Ex. B (ECF No. 25-2) (listing of channels offered).
The Plaintiff's affiants make generic statements that increased bandwidth required by HD for PEG channels will take away from the total bandwidth available. Decl. of Adam Falk ¶ 40; Decl. of Mark Reilly ¶ 22. But there is no evidence that complying with the PEG provisions will significantly impact total bandwidth or that it will affect the cable operators' ability to provide other services. Comcast's Senior Vice President Mark Reilly avers that:
Decl. of Mark Reilly ¶ 30 (emphasis added). Mr. Reilly's doomsday scenario is unsubstantiated and speculative. From the Reilly affidavit, I infer that, at the existing number of PEG channels, there will be no need for Comcast to take channel capacity away from other services. Based on the record before me, there is no evidence that franchising authorities will demand additional PEG channels. Nor is it evident that more municipalities will demand PEG channels in the future. See Compl. ¶ 50 &
While there might be some circumstances in which PEG franchising requirements could raise constitutional issues,
For the reasons stated above, I
SO ORDERED.
R. Copple, Cable Television and the Allocation of Regulatory Power: A Study of Government Demarcation and Roles, 44 Fed. Comm. L.J. 1, 45-46 (1991) (concluding that 1984 Cable Act only selectively preempts state and local franchising authorities). Particularly in the context of PEG channels, where local interests predominate, it makes little sense to require local authorities to find explicit federal authority to act. Cf. Dearborn v. Comcast of Mich. III, Inc., No. 08-10156, 2008 WL 4534167, at *5 (E.D. Mich. Oct. 3, 2008), as amended (Nov. 25, 2008) (rejecting Comcast's "narrow reading" that § 531 does not allow for PEG channel placement provision).
House Report 98-934 at 4731 (emphasis added). This statement from the legislative history seems to apply only to the channel placement provision, which is located both in § 3010's consumer protection provision and in § 3008's subsection governing requirements for franchise agreements. It is not clear that Congress intended it to apply to a state's consumer protections laws. Because the language cited by the Plaintiff from the House Report did not make it into § 556, there is nothing in Federal Cable Law that "specifically" prevents the State from imposing a consumer protection law on cable operators during existing franchises.
H.R. Rep. 102-628 at 85 (1992). While this legislative history does not definitively provide that states can require cable operators subject to effective competition to put PEG channels on the basic tier, it does reflect an understanding that franchising authorities could and did in some instances require PEG programming to be on a specific tier, and it shows that Congress did not wish to interfere with those requirements. See In Re Implementation of Section of the Cable Television Consumer Protection and Competition Act of 1992 Rate Regulation, 8 FCC Rcd 5631, 5738 (1993) (notwithstanding § 543(b)(7), "franchising authorities may require carriage of PEG channels on a non-basic tier").
Tr. of Oral Arg. 71:22-72:14. The technical standards on signal quality seem to be set forth in 47 C.F.R. § 76.605. That provision does not mention the term "high definition television" or "HDTV," and the highly technical standards contained therein are not understandable without expert assistance. As such, even were I to take Mr. Symon's representations as a proffer of evidence, I still cannot tell whether the State's HD requirement exceeds the current minimum standard for signal quality set by the FCC.
Turner Broad. Sys., Inc. v. FCC ("Turner I"), 512 U.S. 622, 637-38, 114 S.Ct. 2445, 129 L.Ed.2d 497 (1994) (citations omitted).