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- NOTICE: This opinion is subject to formal revision before publication in the
- preliminary print of the United States Reports. Readers are requested to
- notify the Reporter of Decisions, Supreme Court of the United States, Wash-
- ington, D.C. 20543, of any typographical or other formal errors, in order that
- corrections may be made before the preliminary print goes to press.
- SUPREME COURT OF THE UNITED STATES
- --------
- No. 92-603
- --------
- FEDERAL COMMUNICATIONS COMMISSION AND
- UNITED STATES, PETITIONERS v. BEACH
- COMMUNICATIONS, INC., et al.
- on writ of certiorari to the united states court
- of appeals for district of columbia circuit
- [June 1, 1993]
-
- Justice Thomas delivered the opinion of the Court.
- In providing for the regulation of cable television
- facilities, Congress has drawn a distinction between facil-
- ities that serve separately owned and managed buildings
- and those that serve one or more buildings under common
- ownership or management. Cable facilities in the latter
- category are exempt from regulation as long as they pro-
- vide services without using public rights-of-way. The
- question before us is whether there is any conceivable
- rational basis justifying this distinction for purposes of the
- Due Process Clause of the Fifth Amendment.
-
- I
- The Cable Communications Policy Act of 1984 (Cable
- Act), 98 Stat. 2779, amended the Communications Act of
- 1934, 47 U. S. C. 151 et seq., to establish a national
- framework for regulating cable television. One objective
- of the Cable Act was to set out -franchise procedures and
- standards which encourage the growth and development
- of cable systems and which assure that cable systems are
- responsive to the needs and interests of the local com-
- munity.- 601(2), 47 U. S. C. 521(2). To that end, Con-
- gress provided for the franchising of cable systems by local
- governmental authorities, 621(a), 47 U. S. C. 541(a),
- and prohibited any person from operating a cable system
- without a franchise, subject to certain exceptions, 621(b),
- 47 U. S. C. 541(b). Section 602(7) of the Communica-
- tions Act, as amended, 47 U. S. C. A. 522(7) (Supp.
- 1993), determines the reach of the franchise requirement
- by defining the operative term -cable system.- A cable
- system means any facility designed to provide video
- programming to multiple subscribers through -closed
- transmission paths,- but does not include, inter alia,
- -a facility that serves only subscribers in 1 or more
- multiple unit dwellings under common ownership, con-
- trol, or management, unless such facility or facilities
- us[e] any public right-of-way.- 602(7)(B), 47
- U. S. C. A. 522(7)(B) (Supp. 1993).
- In part, this provision tracks a regulatory -private cable-
- exemption previously promulgated by the Federal Commu-
- nications Commission (FCC or Commission) pursuant to
- pre-existing authority under the Communications Act. See
- 47 CFR 76.5(a) (1984) (exempting from the definition of
- -cable television system- -any such facility that serves or
- will serve only subscribers in one or more multiple unit
- dwellings under common ownership, control, or manage-
- ment-). The earlier regulatory exemption derived in turn
- from the Commission's first set of cable rules, published
- in 1965. See Rules re Microwave-Served CATV, 38
- F. C. C. 683, 741 (1965) (exempting from the definition
- of -community antenna television system- -any such facil-
- ity which serves only the residents of one or more apart-
- ment dwellings under common ownership, control, or man-
- agement, and commercial establishments located on the
- premises of such an apartment house-). The Cable Act
- narrowed the terms of the regulatory exemption by further
- excluding from the exemption any closed transmission
- facilities that use public rights-of-way.
- This case arises out of an FCC proceeding clarifying the
- agency's interpretation of the term -cable system- as it is
- used in the Cable Act. See In re Definition of a Cable
- Television System, 5 F. C. C. Rcd. 7638 (1990). In this
- proceeding, the Commission addressed the application of
- the exemption codified in 602(7)(B) to satellite master
- antenna television (SMATV) facilities. Unlike a tradi-
- tional cable television system, which delivers video pro-
- gramming to a large community of subscribers through
- coaxial cables laid under city streets or along utility lines,
- an SMATV system typically receives a signal from a satel-
- lite through a small satellite dish located on a rooftop and
- then retransmits the signal by wire to units within a
- building or complex of buildings. See 5 F. C. C. Rcd., at
- 7639. The Commission ruled that an SMATV system that
- serves multiple buildings via a network of interconnected
- physical transmission lines is a cable system, unless it
- falls within the 602(7)(B) exemption. See id., at
- 7639-7640. Consistent with the plain terms of the statu-
- tory exemption, the Commission concluded that such an
- SMATV system is subject to the franchise requirement if
- its transmission lines interconnect separately owned and
- managed buildings or if its lines use or cross any public
- right-of-way. See id., at 7641-7642.
- Respondents Beach Communications, Inc., Maxtel
- Limited Partnership, Pacific Cablevision, and Western
- Cable Communications, Inc.-SMATV operators that would
- be subject to franchising under the Cable Act as construed
- by the Commission-petitioned the Court of Appeals for
- review. The Court of Appeals rejected respondents' statu-
- tory challenge to the Commission's interpretation, but a
- majority of the court found merit in the claim that
- 602(7) violates the implied equal protection guarantee of
- the Due Process Clause. 294 U. S. App. D. C. 377, 959
- F. 2d 975 (1992). In the absence of what it termed -the
- predominant rationale for local franchising- (use of public
- rights-of-way), the court saw no rational basis -[o]n the
- record,- and was -unable to imagine- any conceivable
- basis, for distinguishing between those facilities exempted
- by the statute and those SMATV cable systems that link
- separately owned and managed buildings. Id., at 389, 959
- F. 2d, at 987. The court remanded the record and di-
- rected the FCC to provide -additional `legislative facts'-
- to justify the distinction. Ibid.
- A report subsequently filed by the Commission failed to
- satisfy the Court of Appeals. The Commission stated that
- it was -unaware of any desirable policy or other consider-
- ations . . . that would support the challenged distinctions,-
- other than those offered by a concurring member of the
- court. App. to Pet. for Cert. 50a. The concurrence had
- believed it sufficient that Congress could have reasoned
- that SMATV systems serving separately owned buildings
- are more similar to traditional cable systems than are
- facilities serving commonly owned buildings, in terms of
- the problems presented for consumers and the potential
- for regulatory benefits. See 294 U. S. App. D. C., at 392,
- 959 F. 2d, at 990 (Mikva, C. J., concurring in part and
- concurring in judgment). In a second opinion, the major-
- ity found this rationale to be -a naked intuition, unsup-
- ported by conceivable facts or policies,- ___ U. S. App.
- D. C. ___, ___, 965 F. 2d 1103, 1105 (1992), and held that
- -the Cable Act violates the equal protection component of
- the Fifth Amendment, insofar as it imposes a discrimina-
- tory franchising requirement,- id., at ___, 965 F. 2d, at
- 1104. The court declared the franchise requirement void
- to the extent it covers respondents and similarly situated
- SMATV operators. Id., at ___, 965 F. 2d, at 1106.
- Because the Court of Appeals held an Act of Congress
- unconstitutional, we granted certiorari. 506 U. S. ___
- (1992). We now reverse.
- II
- Whether embodied in the Fourteenth Amendment or in-
- ferred from the Fifth, equal protection is not a license for
- courts to judge the wisdom, fairness, or logic of legislative
- choices. In areas of social and economic policy, a statu-
- tory classification that neither proceeds along suspect lines
- nor infringes fundamental constitutional rights must be
- upheld against equal protection challenge if there is any
- reasonably conceivable state of facts that could provide a
- rational basis for the classification. See Sullivan v.
- Stroop, 496 U. S. 478, 485 (1990); Bowen v. Gilliard, 483
- U. S. 587, 600-603 (1987); United States Railroad Retire-
- ment Bd. v. Fritz, 449 U. S. 166, 174-179 (1980); Dan-
- dridge v. Williams, 397 U. S. 471, 484-485 (1970). Where
- there are -plausible reasons- for Congress' action, -our
- inquiry is at an end.- United States Railroad Retirement
- Bd. v. Fritz, supra, at 179. This standard of review is a
- paradigm of judicial restraint. -The Constitution pre-
- sumes that, absent some reason to infer antipathy, even
- improvident decisions will eventually be rectified by the
- democratic process and that judicial intervention is gen-
- erally unwarranted no matter how unwisely we may think
- a political branch has acted.- Vance v. Bradley, 440 U. S.
- 93, 97 (1979) (footnote omitted).
- On rational-basis review, a classification in a statute
- such as the Cable Act comes to us bearing a strong pre-
- sumption of validity, see Lyng v. Automobile Workers, 485
- U. S. 360, 370 (1988), and those attacking the rationality
- of the legislative classification have the burden -to nega-
- tive every conceivable basis which might support it,- Lehn-
- hausen v. Lake Shore Auto Parts Co., 410 U. S. 356, 364
- (1973) (internal quotation marks omitted). See also Hodel
- v. Indiana, 452 U. S. 314, 331-332 (1981). Moreover,
- because we never require a legislature to articulate its
- reasons for enacting a statute, it is entirely irrelevant for
- constitutional purposes whether the conceived reason for
- the challenged distinction actually motivated the legis-
- lature. United States Railroad Retirement Bd. v. Fritz,
- supra, at 179. See Flemming v. Nestor, 363 U. S. 603,
- 612 (1960). Thus, the absence of -`legislative facts'-
- explaining the distinction -[o]n the record,- 294 U. S. App.
- D. C., at 389, 959 F. 2d, at 987, has no significance in
- rational-basis analysis. See Nordlinger v. Hahn, 505 U. S.
- ___, ___ (1992) (slip op., at 13) (equal protection -does not
- demand for purposes of rational-basis review that a legis-
- lature or governing decisionmaker actually articulate at
- any time the purpose or rationale supporting its classifica-
- tion-). In other words, a legislative choice is not subject
- to courtroom fact-finding and may be based on rational
- speculation unsupported by evidence or empirical data.
- See Vance v. Bradley, supra, at 111. See also Minnesota
- v. Clover Leaf Creamery Co., 449 U. S. 456, 464 (1981).
- -`Only by faithful adherence to this guiding principle of
- judicial review of legislation is it possible to preserve to
- the legislative branch its rightful independence and its
- ability to function.'- Lehnhausen, supra, at 365 (quoting
- Carmichael v. Southern Coal & Coke Co., 301 U. S. 495,
- 510 (1937)).
- These restraints on judicial review have added force
- -where the legislature must necessarily engage in a proc-
- ess of line-drawing.- United States Railroad Retirement
- Bd. v. Fritz, 449 U. S., at 179. Defining the class of
- persons subject to a regulatory requirement-much like
- classifying governmental beneficiaries--inevitably requires
- that some persons who have an almost equally strong
- claim to favored treatment be placed on different sides of
- the line, and the fact [that] the line might have been
- drawn differently at some points is a matter for legisla-
- tive, rather than judicial, consideration.- Ibid. (internal
- quotation marks and citation omitted). The distinction at
- issue here represents such a line: By excluding from the
- definition of -cable system- those facilities that serve
- commonly owned or managed buildings without using pub-
- lic rights-of-way, 602(7)(B) delineates the bounds of the
- regulatory field. Such scope-of-coverage provisions are un-
- avoidable components of most economic or social legisla-
- tion. In establishing the franchise requirement, Congress
- had to draw the line somewhere; it had to choose which
- facilities to franchise. This necessity renders the precise
- coordinates of the resulting legislative judgment virtually
- unreviewable, since the legislature must be allowed leeway
- to approach a perceived problem incrementally. See, e. g.,
- Williamson v. Lee Optical of Okla., Inc., 348 U. S. 483
- (1955):
- -The problem of legislative classification is a perennial
- one, admitting of no doctrinaire definition. Evils in
- the same field may be of different dimensions and
- proportions, requiring different remedies. Or so the
- legislature may think. Or the reform may take one
- step at a time, addressing itself to the phase of the
- problem which seems most acute to the legislative
- mind. The legislature may select one phase of one
- field and apply a remedy there, neglecting the others.
- The prohibition of the Equal Protection Clause goes
- no further than the invidious discrimination.- Id., at
- 489 (citations omitted).
- Applying these principles, we conclude that the common-
- ownership distinction is constitutional. There are at least
- two possible bases for the distinction; either one suffices.
- First, Congress borrowed 602(7)(B) from pre-Cable Act
- regulations, and although the existence of a prior adminis-
- trative scheme is certainly not necessary to the rationality
- of the statute, it is plausible that Congress also adopted
- the FCC's earlier rationale. Under that rationale, common
- ownership was thought to be indicative of those systems
- for which the costs of regulation would outweigh the bene-
- fits to consumers. Because the number of subscribers was
- a similar indicator, the Commission also exempted cable
- facilities that served fewer than 50 subscribers. See 47
- CFR 76.5(a) (1984). In explaining both exemptions, the
- Commission stated:
- -[N]ot all [systems] can be subject to effective regula-
- tion with the resources available nor is regulation
- necessarily needed in every instance. A sensible regu-
- latory program requires that a division between the
- regulated and unregulated be made in a manner
- which best conserves regulatory energies and allows
- the most cost effective use of available resources. In
- attempting to make this division, we have focused on
- subscriber numbers as well as the multiple unit
- dwelling indicia on the theory that the very small are
- inefficient to regulate and can safely be ignored in
- terms of their potential for impact on broadcast ser-
- vice to the public and on multiple unit dwelling facili-
- ties on the theory that this effectively establishes cer-
- tain maximum size limitations.- In re Definition of
- a Cable Television System, 67 F. C. C. 2d 716, 726
- (1978).
- This regulatory-efficiency model, originally suggested by
- Chief Judge Mikva in his concurring opinion, provides a
- conceivable basis for the common-ownership exemption.
- A legislator might rationally assume that systems serving
- only commonly owned or managed buildings without cross-
- ing public rights-of-way would typically be limited in size
- or would share some other attribute affecting their impact
- on the welfare of cable viewers such that regulators could
- -safely ignor[e]- these systems.
- Respondents argue that Congress did not intend com-
- mon ownership to be a surrogate for small size, since Con-
- gress simultaneously rejected the FCC's 50-subscriber
- exemption by omitting it from the Cable Act. Brief for
- Respondents 22. Whether the posited reason for the chal-
- lenged distinction actually motivated Congress is -constitu-
- tionally irrelevant,- United States Railroad Retirement Bd.
- v. Fritz, supra, at 179 (internal quotation marks omitted),
- and, in any event, the FCC's explanation indicates that
- both common ownership and number of subscribers were
- considered indicia of -very small- cable systems. Respond-
- ents also contend that an SMATV operator could increase
- his subscription base and still qualify for the exemption
- simply by installing a separate satellite dish on each
- building served. Brief for Respondents 42. The additional
- cost of multiple dishes and associated transmission equip-
- ment, however, would impose an independent constraint
- on system size.
- Furthermore, small size is only one plausible ownership-
- related factor contributing to consumer welfare. Sub-
- scriber influence is another. Where an SMATV system
- serves a complex of buildings under common ownership
- or management, individual subscribers could conceivably
- have greater bargaining power vis---vis the cable operator
- (even if the number of dwelling units were large), since
- all the subscribers could negotiate with one voice through
- the common owner or manager. Such an owner might
- have substantial leverage, because he could withhold per-
- mission to operate the SMATV system on his property.
- He would also have an incentive to guard the interests of
- his tenants. Thus, there could be less need to establish
- regulatory safeguards for subscribers in commonly owned
- complexes. Respondents acknowledge such possibilities,
- see id., at 44, and we certainly cannot say that these
- assumptions would be irrational.
- There is a second conceivable basis for the statutory dis-
- tinction. Suppose competing SMATV operators wish to
- sell video programming to subscribers in a group of con-
- tiguous buildings, such as a single city block, which can
- be interconnected by wire without crossing a public right-
- of-way. If all the buildings belong to one owner or are
- commonly managed, that owner or manager could freely
- negotiate a deal for all subscribers on a competitive basis.
- But if the buildings are separately owned and managed,
- the first SMATV operator who gains a foothold by signing
- a contract and installing a satellite dish and associated
- transmission equipment on one of the buildings would
- enjoy a powerful cost advantage in competing for the
- remaining subscribers: he could connect additional build-
- ings for the cost of a few feet of cable, whereas any
- competitor would have to recover the cost of his own
- satellite headend facility. Thus, the first operator could
- charge rates well above his cost and still undercut the
- competition. This potential for effective monopoly power
- might theoretically justify regulating the latter class of
- SMATV systems and not the former.
-
- III
- The Court of Appeals quite evidently believed that the
- crossing or use of a public right-of-way is the only conceiv-
- able basis upon which Congress could rationally require
- local franchising of SMATV systems. See ___ U. S. App.
- D. C., at ___, 965 F. 2d, at 1105; 294 U. S. App. D. C.,
- at 389, 959 F. 2d, at 987. As we have indicated, however,
- there are plausible rationales unrelated to the use of pub-
- lic rights-of-way for regulating cable facilities serving
- separately owned and managed buildings. The assump-
- tions underlying these rationales may be erroneous, but
- the very fact that they are -arguable- is sufficient, on
- rational-basis review, to -immuniz[e]- the congressional
- choice from constitutional challenge. Vance v. Bradley,
- 440 U. S., at 112.
- The judgment of the Court of Appeals is reversed, and
- the case is remanded for further proceedings consistent
- with this opinion.
- So ordered.
-