In Omnipoint v. City of Huntington Beach, published December 11, 2013, the Ninth Circuit Court of Appeals concluded that 47 U.S.C. section 332(c)(7) of the Telecommunications Act of 1996, which restricts regulations of and adjudicative decisions regarding construction of cellphone facilities by states and local governments, did not preempt a California charter city's voter-enacted rule that no structure costing more than $100,000 could be built in a park or beach unless a majority of the electors approved the construction. The city had approved plaintiff T-Mobile's applications for wireless permits to construct cellphone antennae in two city parks, and entered into site license agreements with T-Mobile to lease it space in each park as well as building permits. But when the city learned the total construction costs for each antennae would exceed $100,000, the city directed its Building and Safety Department to suspend the building permits until T-Mobile obtained voter approval. Instead of seeking voter approval, T-Mobile sued the city to enjoin it from complying with the rule. The district court ordered the city to act on T-Mobile's applications regardless of voter approval.
The Ninth Circuit reversed. It concluded that section 332(c)(7) preempts local land use authorities' regulations if they violate the statute's requirements, and local authorities adjudications if they do not meet the statute's minimum requirements. But a rule requiring voter approval of sales or leases of city-owned property for construction is neither a land use regulation nor an adjudication. Section 332(c)(7) therefore does not preempt it, and the city may enforce the rule.