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, determined on the basis of the cable system valued as a going concern but with no value allocated to the franchise itself. (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 any person to which such franchise was not initially granted; or (B) require a cable operator to which a franchise was initially granted to receive approval from the franchising authority for the transfer of such franchise to a person who accepts all of the terms of the franchise in effect for the cable operator at the time of the transfer. (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 of a franchise defined In this subsection, the term transfer of a franchise (A) a merger involving the cable operator or cable system; (B) a sale of the cable operator or cable system; (C) an assignment of the cable operator or a cable system; (D) a restructuring of a cable operator or a cable system; or (E) the transfer of control of a cable operator or a cable system. . (b) Effective date This section, and the amendment 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— (A) such franchise (including any renewal term thereof) is in effect on such date; or (B) such franchise is expired and the cable operator has continued to perform under the provisions of such franchise as if such franchise were not expired.

Summary: Consumer Access to Broadband for Local Economies and Competition Act or the CABLE Competition Act This bill limits the authority of state and local entities that regulate certain aspects of cable operators (franchising authorities) over the sale or transfer of franchises for cable systems. Under current law, cable operators must typically obtain franchises authorizing them to provide services in a given area, and franchising authorities may place conditions on sales or transfers of franchises for cable systems. Under the bill, franchising authorities may neither (1) prohibit a cable operator from transferring its franchise to another operator, nor (2) require an operator to obtain approval when transferring its franchise to another operator that accepts all of the franchise terms. However, a franchising authority may require a cable operator to notify it of a transfer.