CABLE Competition Act

To amend the Communications Act of 1934 to prohibit franchising authorities from requiring approval for the sale of cable systems, and for other purposes. 1. Short title This Act may be cited as the Consumer Access to Broadband for Local Economies and Competition Act CABLE Competition Act 2. Sales of cable systems (a) In general Section 627 of the Communications Act of 1934 ( 47 U.S.C. 547 627. Conditions of sale or transfer (a) Value of cable system upon sale or transfer (1) After denial of franchise renewal If a renewal of a franchise held by a cable operator is denied and the franchising authority acquires ownership of the cable system or effects a transfer of ownership of the system to another person, any such acquisition or transfer shall be at fair market value, determined on the basis of the cable system valued as a going concern but with no value allocated to the franchise itself. (2) After revocation of franchise for cause If a franchise held by a cable operator is revoked for cause and the franchising authority acquires ownership of the cable system or effects a transfer of ownership of the system to another person, any such acquisition or transfer shall be at fair market value. (b) Limitations on authority of franchising authority with respect to transfer of franchise (1) In general A franchising authority may not— (A) preclude a cable operator from transferring a franchise to a person to which such franchise was not initially granted; or (B) require a cable operator to which a franchise is initially granted to receive approval from the franchising authority for the transfer of such franchise to a person who to which such franchise was not initially granted. (2) Notification In the case of the transfer of a franchise to a person to which such franchise was not originally granted, a franchising authority may require a cable operator to which a franchise was initially granted to, not later than 15 days after a transfer of a franchise, notify the franchising authority in writing of such transfer. (3) Transfer defined In this subsection, the term transfer . (b) Effective date This section, and the amendments made by subsection (a), shall take effect 6 months after the date of the enactment of this Act. (c) Application This section, and the amendment made by subsection (a), shall apply to a franchise granted— (1) on or after the effective date established by subsection (b); or (2) before such date, if such franchise (including any renewal term thereof) is in effect on such date.

Summary: Consumer Access to Broadband for Local Economies and Competition Act or the CABLE Competition Act This bill revises the valuation of a cable system upon its sale or transfer, and it modifies the process for transferring a cable franchise to a person to whom such franchise was not initially granted. Specifically, the bill requires that after the denial of a franchise renewal or the revocation of a franchise for cause, any subsequent acquisition or transfer must be at fair market value. Further, the bill prohibits a cable franchising authority from (1) precluding the transfer of a cable franchise from a cable operator to a person to whom such franchise was not initially granted, or (2) requiring a cable operator that was initially granted a franchise to receive approval from the franchising authority for such a transfer. However, a franchising authority is authorized to require a cable operator to notify the authority of such a transfer.