Cable Transparency Act

To amend the Communications Act of 1934 to amend provisions relating to franchise term and termination and provisions relating to the elimination or modification of requirements in franchises, and for other purposes. 1. Short title This Act may be cited as the Cable Transparency Act 2. Cable franchise term and termination (a) Elimination or modification of requirement in franchise Section 625 of the Communications Act of 1934 ( 47 U.S.C. 545 625. Elimination or modification of requirement in franchise (a) In general During the period in which a franchise is in effect, the cable operator may obtain the elimination or modification of any requirement in the franchise by submitting to the franchising authority a request for the elimination or modification of such requirement. (b) Elimination or modification of requirement in franchise (1) Requirement The franchising authority shall eliminate or modify a requirement in accordance with a complete request submitted under subsection (a) not later than 120 days after receiving such request if the cable operator demonstrates in the request— (A) good cause for the elimination or modification of the requirement, including the need to eliminate or modify the requirement— (i) to conform to an applicable Federal or State law; (ii) to address changes in technology; or (iii) in the case of a requirement applicable to the cable operator, due to commercial impracticability; and (B) that the mix, quality, and level of cable services required by the franchise at the time the franchise was granted will be maintained notwithstanding the elimination or modification of the requirement; (2) Definition In this subsection, the term commercial impracticability (c) Deemed elimination or modification Except in the case of a request for the elimination or modification of a requirement for services relating to public, educational, or governmental access, if the franchising authority fails to approve or deny the complete request submitted under subsection (a) by the date described under subsection (b), the requirement shall be deemed eliminated or modified in accordance with the request on the day after such date. (d) Appeal (1) In general Any cable operator whose request for elimination or modification of a requirement in a franchise under subsection (a) has been denied by a final decision of a franchising authority may seek judicial review of the decision pursuant to the provisions of section 635. (2) Grant of request In the case of any proposed elimination or modification of a requirement in a franchise under subsection (a), the court shall grant such elimination or modification only if the cable operator demonstrates to the court that the standards in subsection (b) have been met. (e) When request considered complete (1) In general For the purposes of this section, a request to a franchising authority shall be considered complete if the cable operator— (A) has taken the first procedural step within the control of the cable operator that the franchising authority requires as part of the process established by the franchising authority for reviewing any requests related to franchises; and (B) has not received a written notice from the franchising authority within 30 days after the date on which the request is received by the franchising authority— (i) stating that all the information (including any form or other document) required by the franchising authority to be submitted for the request to be considered complete has not been submitted; (ii) identifying the information required to be submitted that was not submitted; and (iii) identifying the publicly available rules, regulations, or standards issued by the franchising authority requiring that the information be submitted with such a request. (2) Definition In this subsection, the term the date on which the request is received by the franchising authority (A) in the case of a request submitted electronically, the date on which the request is transmitted; (B) in the case of a request submitted in person, the date on which the request is delivered to the individual or at the location specified by the franchising authority for in-person submission; and (C) in the case of a request submitted in any other manner, the date determined under regulations promulgated by the Commission for the manner in which the request is submitted. . (b) In general Section 626 of the Communications Act of 1934 ( 47 U.S.C. 546 626. Franchise term and termination (a) Franchise term A franchise shall continue in effect (without any requirement for renewal) until the date on which the franchise is revoked or terminated in accordance with subsection (b). (b) Limits (1) Prohibition against revocation; termination Except as provided in paragraph (2), a franchise may not be— (A) revoked by a franchising authority; (B) terminated by a cable operator; or (C) revoked or terminated by operation of law, including by a term in a franchise that revokes or terminates such franchise on a specific date, after a period of time, or upon the occurrence of an event. (2) When termination or revocation of franchise permitted (A) Termination by cable operator (i) In general A cable operator may terminate a franchise by submitting to the franchising authority a written request for the franchising authority to revoke such franchise. (ii) Time of revocation If the cable operator submits a complete request under clause (i), the franchising authority shall revoke the franchise on the date that is 90 days after the franchising authority receives such request. (iii) Deemed to be revoked If a franchising authority does not approve a request by the date required under clause (ii), the franchise is deemed revoked on the day after such date. (B) Termination by franchising authority A franchising authority may revoke a franchise if the franchising authority— (i) finds that the cable operator has knowingly and willfully failed to substantially meet a material requirement imposed by the franchise; (ii) provides the cable operator a reasonable opportunity to cure such failure, after which the cable operator fails to cure such failure; and (iii) does not waive the material requirement or acquiesce with the failure to substantially meet such requirement. (c) Review of revocation of franchise by franchising authority (1) Administrative or judicial review With respect to a determination by a franchising authority to revoke a franchise under subsection (b)(2)(B), a cable operator may— (A) petition the Commission for review of such determination; or (B) seek judicial review of such determination pursuant to the provisions of 635. (2) Commission review With respect to a petition for the review of a determination brought under paragraph (1)(A), the Commission shall— (A) review the determination de novo; and (B) invalidate the determination if, based on the evidence presented during the review, the Commission determines that the franchising authority has not demonstrated by a preponderance of the evidence that the franchising authority revoked the franchise in accordance with subsection (b)(2)(B). (3) Stay of determination to revoke franchise A revocation of a franchise under subsection (b)(2)(B) may be stayed— (A) in the case the cable operator petitions the Commission for review of the determination on which such revocation is based, by the Commission; and (B) in the case the cable operator seeks judicial review of the determination on which such revocation is based, by the court in which the cable operator seeks judicial review of the determination. . (c) Technical and conforming amendments The Communications Act of 1934 ( 47 U.S.C. 151 et seq. (1) in section 601— (A) in paragraph (4), by striking the semicolon at the end and inserting ; and (B) by striking paragraph (5); and (C) by redesignating paragraph (6) as paragraph (5); (2) in section 602(9)— (A) by striking initial (B) by striking , or renewal thereof (including a renewal of an authorization which has been granted subject to section 626), (3) in section 611(b), by striking and may require as part of a cable operator’s proposal for a franchise renewal, subject to section 626 (4) in section 612(b)(3)— (A) by striking or as part of a proposal for renewal, subject to section 626, (B) by striking , or proposal for renewal thereof, (5) in section 621(b)(3)— (A) in subparagraph (C)(ii), by striking or franchise renewal (B) in subparagraph (D)— (i) by striking initial (ii) by striking , a franchise renewal, (6) in section 624— (A) in subsection (b)(1), by striking (including requests for renewal proposals, subject to section 626) (B) in subsection (d)(1), by striking or renewal thereof (7) in section 635A(a), by striking renewal, (d) Effective date; application (1) Effective date This section, and the amendments made by this section, shall take effect 6 months after the date of the enactment of this Act. (2) Application This section, and the amendments made by this section, shall apply to a franchise granted— (A) on or after the effective date established by paragraph (1); or (B) before such date, if— (i) such franchise (including, any renewal thereof before the date of the enactment of this Act) is in effect on such date; or (ii) 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: Cable Transparency Act This bill restricts revocations and terminations of cable franchises. It also limits the ability of state or local entities that regulate certain aspects of cable operators (franchising authorities) to deny requests related to franchise requirements. Under current law, cable operators must typically obtain franchises authorizing them to provide services in a given area, and franchising authorities may condition the receipt of franchises on compliance with various requirements. The bill generally prohibits (1) a franchising authority from revoking a franchise, (2) a cable operator from terminating a franchise, or (3) the revocation or termination of a franchise by operation of law. However, a cable operator may terminate a franchise through a written request to the franchising authority for a revocation. Additionally, a franchising authority may revoke a franchise if it (1) finds that the cable operator knowingly and willfully failed to meet a material requirement of the franchise, (2) provides the cable operator an opportunity to cure such failure, and (3) does not waive or acquiesce to the failure to meet the requirement. Further, the bill eliminates any requirement for a cable operator to periodically renew its franchise by specifying that a franchise shall continue until revoked or terminated. The bill also permits cable operators to request, during a franchise period, that the franchising authority eliminate or modify a franchise requirement. The franchising authority must grant the request if the cable operator demonstrates good cause and shows that the services required under the franchise will be maintained.