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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In re ) ) Wireless Broadcasting Systems ) of Sacremento, Inc. ) ) CSR 5001-O Petition for Declaratory Ruling ) Under 47 C.F.R.  1.4000 ) MEMORANDUM OPINION AND ORDER Adopted: November 25, 1997 Released: November 28, 1997 By the Chief, Cable Services Bureau: I. Introduction 1. Petitioner Wireless Broadcasting Systems of Sacramento, Inc. ("Petitioner") filed a Petition for Declaratory Ruling ("Petition") seeking a determination that Morrison Creek Homeowners Association's ("Morrison Creek") covenants, conditions, and restrictions that prohibit or restrict the use of externally mounted over-the-air video programming reception antennas are prohibited by 47 C.F.R.  1.4000, the Commission's Over-the-Air Reception Devices Rule ("Rule"). In addition, Petitioner asks us to examine those portions of Section 1376 of the California Civil Code that it alleges Morrison Creek relies upon to support its restrictions. Morrison Creek did not file a response to the Petition. For the reasons discussed below, we find that Morrison Creek's restrictions that contravene the Rule are prohibited and unenforceable. II. Background 2. On August 5, 1996, the Commission adopted the Rule, which prohibits governmental and private restrictions that impair the ability of antenna users to install, maintain, or use over-the-air reception devices. The Rule implemented Section 207 of the Telecommunications Act of 1996 (the "Act"), which requires the Commission to "promulgate regulations to prohibit restrictions that impair a viewer's ability to receive video programming services through devices designed for over-the-air reception of . . . multichannel multipoint distribution services. . . ." The Congressional directive to the Commission promotes one of the primary objectives of the Communications Act of 1934: "to make available, so far as possible, to all the people of the United States . . . a rapid, efficient, nation-wide, and world-wide wire and radio communication service with adequate facilities at reasonable charges. . . ." 3. The Rule applies to antennas designed to receive direct broadcast satellite services that are one meter or less in diameter; antennas designed to receive video programming services via multipoint distribution services, including multichannel multipoint distribution services, instructional television fixed services, and local multipoint distribution services that are one meter or less in diameter or diagonal measurement; and antennas designed to receive television broadcast signals "on property within the exclusive use or control of an antenna user where the user has a direct or indirect ownership interest in the property" upon which the antenna is to be located. The Rule provides that a restriction impairs installation, maintenance, or use of a protected antenna if it: (1) unreasonably delays or prevents installation, maintenance, or use; (2) unreasonably increases the cost of installation, maintenance, or use; or (3) precludes reception of an acceptable quality signal. There are exceptions to the Rule for valid safety or historic preservation restrictions, which must be as narrowly tailored as possible, impose as little burden as possible, and apply in a nondiscriminatory manner throughout the regulated area. 4. The Rule provides that parties who are affected by antenna restrictions may petition the Commission to determine if the restrictions are permissible or prohibited by the Rule. The Rule places the burden of demonstrating that a challenged restriction complies with the Rule on the party seeking to impose the restriction. A. Wireless Cable 5. Multipoint Distribution Services ("MDS"), Multichannel Multipoint Distribution Services ("MMDS"), and Instructional Television Fixed Services ("ITFS"), which use microwave frequencies to transmit video programming to subscribers, commonly are referred to as wireless cable systems. Local Multipoint Distribution Service ("LMDS") also is a form of wireless cable. The specific characteristics of MDS, MMDS, ITFS, and LMDS signals require that wireless cable antennas be situated outdoors with a direct line-of-sight to the transmitter or repeater. IV. The Petition 6. Petitioner, a wireless cable service provider, challenges Sections X and 12 of Morrison Creek's covenants, conditions, and restrictions, and, indirectly, challenges Section 1376 of the California Civil Code, which it alleges Morrison Creek relies upon to buttress its restrictions. Sections X and 12 provide as follows: X. Architecture. 1) Any exterior structural changes, including but not limited to greenhouse windows, patio covers, window safeguards, etc., must conform to the existing architectures. 2) No antennas, fixed sports equipment installed on outside of building, or satellite dishes are allowed within the premises without prior approval of the HOA [homeowners association]. Section 12. No Alterations or Antennas. In order to insure adequate aesthetic controls and to maintain the general attractive appearance of the Properties, no Owner, resident or lessee shall, at his expense or otherwise, construct fences, walls, or make any alterations, additions or modifications to or on any part or portion of the Common Areas or exterior or interior surfaces of Units, or place or maintain any objects, such as television and radio antennas, flag poles or clotheslines or awnings, on or about the exterior of any building within the project except as authorized by the Association. No wiring, insulation, air conditioning, plumbing or other construction, alteration or improvements may be undertaken on [sic] any Owner or agent thereof in any Unit unless authorized by the Association. In a letter to residents, dated June 21, 1996, Morrison Creek stated, in part, "The Association rules prohibit the installation of antennas or satellite dishes on the exterior of the building." On November 7, 1996, Morrison Creek's General Manager sent a facsimile to a Pacific West Broadcasting System Engineer, in which he noted their previous conversation and pointed out, among other things, that Pacific West Broadcasting needed to "remove the equipment [antennas installed on roofs in Morrison Creek] at the locations listed as soon as possible. If you are unable to comply with this request, by November 21, 1996, we will contact Eastham Builders to remove the equipment." Attached to the facsimile were "a list of the antennas currently installed on roofs in our homeowners association area, warning letter to resident, 3 documents prohibiting antennas and dishes, and a copy of Assembly Bill 104[] addressing antennas and dishes." 7. Petitioner alleges that on or about April 15, 1997, Morrison Creek's agent "ordered and orchestrated" the removal of its one meter or less in diameter or diagonal measurement wireless cable antennas from the Morrison Creek development. It requests that we prohibit Morrison Creek from enforcing its covenants, conditions, and restrictions that relate to over-the-air reception devices encompassed by Section 1.4000 because they either prohibit antenna installation or require that a prospective antenna user seek and obtain Morrison Creek's approval before installing any one of these devices. In addition, Petitioner states that Morrison Creek offers no "health, safety or historic preservation objective" in justification of its restrictions. Even if, Petitioner continues, Section 1376 of the California Civil Code applies to this dispute, we should preempt those provision that are inconsistent with Section 1.4000. Finally, Petitioner notes that Morrison Creek, which bears the burden of defending the restrictions at issue, failed to justify its restrictions. V.Comments 8. BellSouth Corporation ("BellSouth"), Community Associations Institute ("CAI"), Consumer Electronics Manufacturers Association ("CEMA"), Pacific Bell Video Services ("Pacific Bell"), and Satellite Broadcasting and Communications Association ("SBCA") filed comments in support of the Petition. BellSouth, CAI, Pacific Bell, and SBCA maintain that Morrison Creek's restrictions conflict with Section 1.4000. Pacific Bell argues that Morrison Creek's reliance upon Section 1376 of the California Civil Code should not be condoned because that Section is "unenforceable to the extent that it deems a prior approval requirement to be reasonable." VI. Discussion A. Prohibition of Antennas 9. We find that Morrison's Creek has enforced its covenants, conditions, and restrictions in a manner that effectively prohibits the use of over-the-air reception devices protected by Section 1.4000. Wireless cable antennas of the sort that Petitioner uses operate on direct line-of-sight with the transmitter or repeater and given current technology require an unobstructed view of the transmitter or repeater. Morrison Creek's prohibition violates the Rule because it "prevents" installation, maintenance, or use of the antennas and, thereby, "precludes reception of an acceptable quality signal." The burden of justifying the outright prohibition of antennas lies with Morrison Creek; it has chosen not to participate in this proceeding. We find no support in the record for upholding this prohibition. B. Prior Approval of Antennas 10. Notwithstanding its prohibition of over-the-air reception devices protected by Section 1.4000, Morrison Creek's covenants, conditions, and restrictions reveal that antenna installation may be acceptable pursuant to Morrison Creek's unspecified authorization process. The preamble to Section 12 states that Morrison Creek's restrictions were enacted "[i]n order to insure adequate aesthetic controls and to maintain the general attractive appearance of the Properties. . . ." Although the Commission has preserved the restricting entity's right to consider aesthetic factors when promulgating antenna placement restrictions, aesthetic factors may not justify a prior approval process. 11. A prior approval process is impermissible unless it is necessary for bona fide safety or historic preservation considerations. In the instant case, the record reveals neither a safety nor historic preservation justification for Morrison Creek's authorization process. Accordingly, we find Morrison Creek's authorization process impermissible under the Rule. C. Section 1376 of the California Civil Code 12. Petitioner alleges that Morrison Creek attached a copy of Assembly Bill 104 (Section 1376 of the California Civil Code) to a facsimile that directed a Pacific West Broadcasting System Engineer to remove that firm's antennas from properties located in Morrison Creek and stated that if Pacific West did not act, Morrison Creek would have the equipment removed. Although Morrison Creek referenced Section 1376 in its facsimile correspondence, we will not address that Section here because, as noted above, Morrison Creek's restrictions impermissibly conflict with the Rule, which controls in this instance. VIII. Ordering Clauses 13. Accordingly, IT IS ORDERED, pursuant to Section 1.4000(d) of the Over-the-Air Reception Devices Rule, 47 C.F.R.  1.4000(d), and Section 1.2 of the Commission's rules, 47 C.F.R.  1.2, that Section X and Section 12 of Morrison Creek Homeowner's Association's covenants, conditions, and restrictions are hereby prohibited and unenforceable to the extent that they impair the installation, maintenance, or use of over-the-air reception antennas protected by 47 C.F.R.  1.4000 and as discussed herein. 14. This action is taken by the Chief, Cable Services Bureau, pursuant to authority delegated by Section 0.321 of the Commission's rules. 47 C.F.R.  0.321. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau