CABLE Competition Act
Bill: H.R.1103 | Sponsor: Rep. Burgess, Michael C. (R-TX)
Policy area: Science, Technology, Communications

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.

To amend the Communications Act of 1934 to prohibit franchising 
authorities from requiring approval for the sale of cable systems, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Access to Broadband for 
Local Economies and Competition Act'' or the ``CABLE Competition Act''.

SEC. 2. SALES OF CABLE SYSTEMS.

    (a) In General.--Section 627 of the Communications Act of 1934 (47 
U.S.C. 547) is amended to read:

``SEC. 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' means the assignment rights under a franchise 
        through any transaction, including a merger, sale, assignment, 
        restructuring, or transfer of control of a cable operator or a 
        cable system.''.
    (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.
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