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City of Pleasanton City Council <br /> February 20, 2019 <br /> Page 2 of 6 <br /> Key Legal Concepts <br /> The Telecommunications Act of 1996 ("Act") establishes key limitations on local <br /> regulations. The Act defines the scope and parameters of the city's review of AT&T's <br /> applications. Under the Act,the city must take action on AT&T's applications"within a <br /> reasonable period of time."2 The Act also requires that the city's review of AT&T's applications <br /> must be based on substantial evidence.3 Under the Act, state and local governments may not <br /> unreasonably discriminate among providers of functionally equivalent services.4 <br /> The Act also prohibits a local government from denying an application for a wireless <br /> facility where doing so would "prohibit or have the effect of prohibiting the provision of <br /> personal wireless services."5 The FCC has ruled that an effective prohibition occurs when the <br /> decision of a local government materially inhibits wireless services.6 The FCC explained that the <br /> "effective prohibition analysis focuses on the service the provider wishes to provide, <br /> incorporating the capabilities and performance characteristics it wishes to employ, including <br /> facilities deployment to provide existing services more robustly, or at a better level of quality, all <br /> to offer a more robust and competitive wireless service for the benefit of the public."7 Thus, a <br /> local government"could materially inhibit service in numerous way—not only by rendering a <br /> service provider unable to provide existing service in a new geographic area or by restricting the <br /> entry of a new provider in providing service in a particular area, but also by materially inhibiting <br /> the introduction of new services or the improvement of existing services." <br /> The FCC recently issued its small cell deployment order and associated rules, which went <br /> into effect on January 14, 2019. Under the Infrastructure Order, local aesthetic regulations for <br /> small cell siting must be (1)reasonable (i.e., has to be technically feasible), (2) no more <br /> burdensome than those applied to other infrastructure deployments, and (3) objective and <br /> published in advance.9 The FCC also established a standard for lawful fees, which requires that: <br /> "(1)the fees are a reasonable approximation of the state or local government's costs, (2) only <br /> objectively reasonable costs are factored into those fees, and (3)the fees are no higher than the <br /> fees charged to similarly-situated competitors in similar situations."10 Thus, only objectively <br /> reasonable costs that are recovered on a nondiscriminatory basis can be included in fees. <br /> AT&T has a statewide franchise right to access and construct telecommunications <br /> facilities in the public rights-of-way. Under Public Utilities Code Section 7901,AT&T has the <br /> right to access and construct facilities in public rights-of-way in order to furnish wireless <br /> 2 47 U.S.C. §332(c)(7)(B)(ii). <br /> 3 47 U.S.C. §332(c)(7)(B)(iii). <br /> 447 U.S.C. §332(c)(7)(B)(i)(I). <br /> 547 U.S.C. §332(c)(7)(B)(i)(II). <br /> 6 See Infrastructure Order(FCC rejected the significant gap/least intrusive means test for an effective prohibition <br /> that many courts, including the Ninth Circuit,have applied);see also,In the Matter of California Payphone <br /> Association Petition for Preemption, Etc.,Opinion and Order,FCC 97-251, 12 FCC Rcd 14191 (July 17, 1997). <br /> Infrastructure Order at n. 95. <br /> 81d.at 1137. <br /> 9See id.at¶86. <br /> 10 Id.at1150. <br />