Collapse to view only § 542. Franchise fees
- § 541. General franchise requirements
- § 542. Franchise fees
- § 543. Regulation of rates
- § 544. Regulation of services, facilities, and equipment
- § 544a. Consumer electronics equipment compatibility
- § 545. Modification of franchise obligations
- § 546. Renewal
- § 547. Conditions of sale
- § 548. Development of competition and diversity in video programming distribution
- § 549. Competitive availability of navigation devices
§ 541. General franchise requirements
(a) Authority to award franchises; public rights-of-way and easements; equal access to service; time for provision of service; assurances
(1) A franchising authority may award, in accordance with the provisions of this subchapter, 1 or more franchises within its jurisdiction; except that a franchising authority may not grant an exclusive franchise and may not unreasonably refuse to award an additional competitive franchise. Any applicant whose application for a second franchise has been denied by a final decision of the franchising authority may appeal such final decision pursuant to the provisions of section 555 of this title for failure to comply with this subsection.
(2) Any franchise shall be construed to authorize the construction of a cable system over public rights-of-way, and through easements, which is within the area to be served by the cable system and which have been dedicated for compatible uses, except that in using such easements the cable operator shall ensure—
(A) that the safety, functioning, and appearance of the property and the convenience and safety of other persons not be adversely affected by the installation or construction of facilities necessary for a cable system;
(B) that the cost of the installation, construction, operation, or removal of such facilities be borne by the cable operator or subscriber, or a combination of both; and
(C) that the owner of the property be justly compensated by the cable operator for any damages caused by the installation, construction, operation, or removal of such facilities by the cable operator.
(3) In awarding a franchise or franchises, a franchising authority shall assure that access to cable service is not denied to any group of potential residential cable subscribers because of the income of the residents of the local area in which such group resides.
(4) In awarding a franchise, the franchising authority—
(A) shall allow the applicant’s cable system a reasonable period of time to become capable of providing cable service to all households in the franchise area;
(B) may require adequate assurance that the cable operator will provide adequate public, educational, and governmental access channel capacity, facilities, or financial support; and
(C) may require adequate assurance that the cable operator has the financial, technical, or legal qualifications to provide cable service.
(b) No cable service without franchise; exception under prior law
(1) Except to the extent provided in paragraph (2) and subsection (f), a cable operator may not provide cable service without a franchise.
(2) Paragraph (1) shall not require any person lawfully providing cable service without a franchise on July 1, 1984, to obtain a franchise unless the franchising authority so requires.
(3)
(A) If a cable operator or affiliate thereof is engaged in the provision of telecommunications services—
(i) such cable operator or affiliate shall not be required to obtain a franchise under this subchapter for the provision of telecommunications services; and
(ii) the provisions of this subchapter shall not apply to such cable operator or affiliate for the provision of telecommunications services.
(B) A franchising authority may not impose any requirement under this subchapter that has the purpose or effect of prohibiting, limiting, restricting, or conditioning the provision of a telecommunications service by a cable operator or an affiliate thereof.
(C) A franchising authority may not order a cable operator or affiliate thereof—
(i) to discontinue the provision of a telecommunications service, or
(ii) to discontinue the operation of a cable system, to the extent such cable system is used for the provision of a telecommunications service, by reason of the failure of such cable operator or affiliate thereof to obtain a franchise or franchise renewal under this subchapter with respect to the provision of such telecommunications service.
(D) Except as otherwise permitted by sections 531 and 532 of this title, a franchising authority may not require a cable operator to provide any telecommunications service or facilities, other than institutional networks, as a condition of the initial grant of a franchise, a franchise renewal, or a transfer of a franchise.
(c) Status of cable system as common carrier or utility
(d) Informational tariffs; regulation by States; “State” defined
(1) A State or the Commission may require the filing of informational tariffs for any intrastate communications service provided by a cable system, other than cable service, that would be subject to regulation by the Commission or any State if offered by a common carrier subject, in whole or in part, to subchapter II of this chapter. Such informational tariffs shall specify the rates, terms, and conditions for the provision of such service, including whether it is made available to all subscribers generally, and shall take effect on the date specified therein.
(2) Nothing in this subchapter shall be construed to affect the authority of any State to regulate any cable operator to the extent that such operator provides any communication service other than cable service, whether offered on a common carrier or private contract basis.
(3) For purposes of this subsection, the term “State” has the meaning given it in section 153 of this title.
(e) State regulation of facilities serving subscribers in multiple dwelling units
(f) Local or municipal authority as multichannel video programming distributorNo provision of this chapter shall be construed to—
(1) prohibit a local or municipal authority that is also, or is affiliated with, a franchising authority from operating as a multichannel video programming distributor in the franchise area, notwithstanding the granting of one or more franchises by such franchising authority; or
(2) require such local or municipal authority to secure a franchise to operate as a multichannel video programming distributor.
(June 19, 1934, ch. 652, title VI, § 621, as added Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2786; amended Pub. L. 102–385, §§ 7(a)(1), (b), (c), Oct. 5, 1992, 106 Stat. 1483; Pub. L. 104–104, § 3(d)(3), title III, § 303(a), Feb. 8, 1996, 110 Stat. 61, 124.)
§ 542. Franchise fees
(a) Payment under terms of franchise
(b) Amount of fees per annum
(c) Itemization of subscriber billsEach cable operator may identify, consistent with the regulations prescribed by the Commission pursuant to section 543 of this title, as a separate line item on each regular bill of each subscriber, each of the following:
(1) The amount of the total bill assessed as a franchise fee and the identity of the franchising authority to which the fee is paid.
(2) The amount of the total bill assessed to satisfy any requirements imposed on the cable operator by the franchise agreement to support public, educational, or governmental channels or the use of such channels.
(3) The amount of any other fee, tax, assessment, or charge of any kind imposed by any governmental authority on the transaction between the operator and the subscriber.
(d) Court actions; reflection of costs in rate structures
(e) Decreases passed through to subscribers
(f) Itemization of franchise fee in bill
(g) “Franchise fee” definedFor the purposes of this section—
(1) the term “franchise fee” includes any tax, fee, or assessment of any kind imposed by a franchising authority or other governmental entity on a cable operator or cable subscriber, or both, solely because of their status as such;
(2) the term “franchise fee” does not include—
(A) any tax, fee, or assessment of general applicability (including any such tax, fee, or assessment imposed on both utilities and cable operators or their services but not including a tax, fee, or assessment which is unduly discriminatory against cable operators or cable subscribers);
(B) in the case of any franchise in effect on October 30, 1984, payments which are required by the franchise to be made by the cable operator during the term of such franchise for, or in support of the use of, public, educational, or governmental access facilities;
(C) in the case of any franchise granted after October 30, 1984, capital costs which are required by the franchise to be incurred by the cable operator for public, educational, or governmental access facilities;
(D) requirements or charges incidental to the awarding or enforcing of the franchise, including payments for bonds, security funds, letters of credit, insurance, indemnification, penalties, or liquidated damages; or
(E) any fee imposed under title 17.
(h) Uncompensated services; taxes, fees and other assessments; limitation on fees
(1) Nothing in this chapter shall be construed to limit any authority of a franchising authority to impose a tax, fee, or other assessment of any kind on any person (other than a cable operator) with respect to cable service or other communications service provided by such person over a cable system for which charges are assessed to subscribers but not received by the cable operator.
(2) For any 12-month period, the fees paid by such person with respect to any such cable service or other communications service shall not exceed 5 percent of such person’s gross revenues derived in such period from the provision of such service over the cable system.
(i) Regulatory authority of Federal agencies
(June 19, 1934, ch. 652, title VI, § 622, as added Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2787; amended Pub. L. 102–385, § 14, Oct. 5, 1992, 106 Stat. 1489; Pub. L. 104–104, title III, § 303(b), Feb. 8, 1996, 110 Stat. 125.)
§ 543. Regulation of rates
(a) Competition preference; local and Federal regulation
(1) In general
(2) Preference for competitionIf the Commission finds that a cable system is subject to effective competition, the rates for the provision of cable service by such system shall not be subject to regulation by the Commission or by a State or franchising authority under this section. If the Commission finds that a cable system is not subject to effective competition—
(A) the rates for the provision of basic cable service shall be subject to regulation by a franchising authority, or by the Commission if the Commission exercises jurisdiction pursuant to paragraph (6), in accordance with the regulations prescribed by the Commission under subsection (b); and
(B) the rates for cable programming services shall be subject to regulation by the Commission under subsection (c).
(3) Qualification of franchising authorityA franchising authority that seeks to exercise the regulatory jurisdiction permitted under paragraph (2)(A) shall file with the Commission a written certification that—
(A) the franchising authority will adopt and administer regulations with respect to the rates subject to regulation under this section that are consistent with the regulations prescribed by the Commission under subsection (b);
(B) the franchising authority has the legal authority to adopt, and the personnel to administer, such regulations; and
(C) procedural laws and regulations applicable to rate regulation proceedings by such authority provide a reasonable opportunity for consideration of the views of interested parties.
(4) Approval by CommissionA certification filed by a franchising authority under paragraph (3) shall be effective 30 days after the date on which it is filed unless the Commission finds, after notice to the authority and a reasonable opportunity for the authority to comment, that—
(A) the franchising authority has adopted or is administering regulations with respect to the rates subject to regulation under this section that are not consistent with the regulations prescribed by the Commission under subsection (b);
(B) the franchising authority does not have the legal authority to adopt, or the personnel to administer, such regulations; or
(C) procedural laws and regulations applicable to rate regulation proceedings by such authority do not provide a reasonable opportunity for consideration of the views of interested parties.
If the Commission disapproves a franchising authority’s certification, the Commission shall notify the franchising authority of any revisions or modifications necessary to obtain approval.
(5) Revocation of jurisdiction
(6) Exercise of jurisdiction by Commission
(7) Aggregation of equipment costs
(A) In general
(B) Revision to Commission rules; forms
(b) Establishment of basic service tier rate regulations
(1) Commission obligation to subscribers
(2) Commission regulationsWithin 180 days after October 5, 1992, the Commission shall prescribe, and periodically thereafter revise, regulations to carry out its obligations under paragraph (1). In prescribing such regulations, the Commission—
(A) shall seek to reduce the administrative burdens on subscribers, cable operators, franchising authorities, and the Commission;
(B) may adopt formulas or other mechanisms and procedures in complying with the requirements of subparagraph (A); and
(C) shall take into account the following factors:
(i) the rates for cable systems, if any, that are subject to effective competition;
(ii) the direct costs (if any) of obtaining, transmitting, and otherwise providing signals carried on the basic service tier, including signals and services carried on the basic service tier pursuant to paragraph (7)(B), and changes in such costs;
(iii) only such portion of the joint and common costs (if any) of obtaining, transmitting, and otherwise providing such signals as is determined, in accordance with regulations prescribed by the Commission, to be reasonably and properly allocable to the basic service tier, and changes in such costs;
(iv) the revenues (if any) received by a cable operator from advertising from programming that is carried as part of the basic service tier or from other consideration obtained in connection with the basic service tier;
(v) the reasonably and properly allocable portion of any amount assessed as a franchise fee, tax, or charge of any kind imposed by any State or local authority on the transactions between cable operators and cable subscribers or any other fee, tax, or assessment of general applicability imposed by a governmental entity applied against cable operators or cable subscribers;
(vi) any amount required, in accordance with paragraph (4), to satisfy franchise requirements to support public, educational, or governmental channels or the use of such channels or any other services required under the franchise; and
(vii) a reasonable profit, as defined by the Commission consistent with the Commission’s obligations to subscribers under paragraph (1).
(3) EquipmentThe regulations prescribed by the Commission under this subsection shall include standards to establish, on the basis of actual cost, the price or rate for—
(A) installation and lease of the equipment used by subscribers to receive the basic service tier, including a converter box and a remote control unit and, if requested by the subscriber, such addressable converter box or other equipment as is required to access programming described in paragraph (8); and
(B) installation and monthly use of connections for additional television receivers.
(4) Costs of franchise requirements
(5) Implementation and enforcementThe regulations prescribed by the Commission under this subsection shall include additional standards, guidelines, and procedures concerning the implementation and enforcement of such regulations, which shall include—
(A) procedures by which cable operators may implement and franchising authorities may enforce the regulations prescribed by the Commission under this subsection;
(B) procedures for the expeditious resolution of disputes between cable operators and franchising authorities concerning the administration of such regulations;
(C) standards and procedures to prevent unreasonable charges for changes in the subscriber’s selection of services or equipment subject to regulation under this section, which standards shall require that charges for changing the service tier selected shall be based on the cost of such change and shall not exceed nominal amounts when the system’s configuration permits changes in service tier selection to be effected solely by coded entry on a computer terminal or by other similarly simple method; and
(D) standards and procedures to assure that subscribers receive notice of the availability of the basic service tier required under this section.
(6) Notice
(7) Components of basic tier subject to rate regulation
(A) Minimum contentsEach cable operator of a cable system shall provide its subscribers a separately available basic service tier to which subscription is required for access to any other tier of service. Such basic service tier shall, at a minimum, consist of the following:
(i) All signals carried in fulfillment of the requirements of sections 534 and 535 of this title.
(ii) Any public, educational, and governmental access programming required by the franchise of the cable system to be provided to subscribers.
(iii) Any signal of any television broadcast station that is provided by the cable operator to any subscriber, except a signal which is secondarily transmitted by a satellite carrier beyond the local service area of such station.
(B) Permitted additions to basic tier
(8) Buy-through of other tiers prohibited
(A) Prohibition
(B) Exception; limitationThe prohibition in subparagraph (A) shall not apply to a cable system that, by reason of the lack of addressable converter boxes or other technological limitations, does not permit the operator to offer programming on a per channel or per program basis in the same manner required by subparagraph (A). This subparagraph shall not be available to any cable operator after—
(i) the technology utilized by the cable system is modified or improved in a way that eliminates such technological limitation; or
(ii) 10 years after October 5, 1992, subject to subparagraph (C).
(C) Waiver
(c) Regulation of unreasonable rates
(1) Commission regulationsWithin 180 days after October 5, 1992, the Commission shall, by regulation, establish the following:
(A) criteria prescribed in accordance with paragraph (2) for identifying, in individual cases, rates for cable programming services that are unreasonable;
(B) fair and expeditious procedures for the receipt, consideration, and resolution of complaints from any franchising authority (in accordance with paragraph (3)) alleging that a rate for cable programming services charged by a cable operator violates the criteria prescribed under subparagraph (A), which procedures shall include the minimum showing that shall be required for a complaint to obtain Commission consideration and resolution of whether the rate in question is unreasonable; and
(C) the procedures to be used to reduce rates for cable programming services that are determined by the Commission to be unreasonable and to refund such portion of the rates or charges that were paid by subscribers after the filing of the first complaint filed with the franchising authority under paragraph (3) and that are determined to be unreasonable.
(2) Factors to be consideredIn establishing the criteria for determining in individual cases whether rates for cable programming services are unreasonable under paragraph (1)(A), the Commission shall consider, among other factors—
(A) the rates for similarly situated cable systems offering comparable cable programming services, taking into account similarities in facilities, regulatory and governmental costs, the number of subscribers, and other relevant factors;
(B) the rates for cable systems, if any, that are subject to effective competition;
(C) the history of the rates for cable programming services of the system, including the relationship of such rates to changes in general consumer prices;
(D) the rates, as a whole, for all the cable programming, cable equipment, and cable services provided by the system, other than programming provided on a per channel or per program basis;
(E) capital and operating costs of the cable system, including the quality and costs of the customer service provided by the cable system; and
(F) the revenues (if any) received by a cable operator from advertising from programming that is carried as part of the service for which a rate is being established, and changes in such revenues, or from other consideration obtained in connection with the cable programming services concerned.
(3) Review of rate changes
(4) Sunset of upper tier rate regulation
(d) Uniform rate structure required
(e) Discrimination; services for the hearing impairedNothing in this subchapter shall be construed as prohibiting any Federal agency, State, or a franchising authority from—
(1) prohibiting discrimination among subscribers and potential subscribers to cable service, except that no Federal agency, State, or franchising authority may prohibit a cable operator from offering reasonable discounts to senior citizens or other economically disadvantaged group discounts; or
(2) requiring and regulating the installation or rental of equipment which facilitates the reception of cable service by hearing impaired individuals.
(f) Negative option billing prohibited
(g) Collection of information
(h) Prevention of evasions
(i) Small system burdens
(j) Rate regulation agreements
(k) Reports on average prices
(1) In general
(2) Inclusion in report
(A) In general
(B) Form
(l) DefinitionsAs used in this section—
(1) The term “effective competition” means that—
(A) fewer than 30 percent of the households in the franchise area subscribe to the cable service of a cable system;
(B) the franchise area is—
(i) served by at least two unaffiliated multichannel video programming distributors each of which offers comparable video programming to at least 50 percent of the households in the franchise area; and
(ii) the number of households subscribing to programming services offered by multichannel video programming distributors other than the largest multichannel video programming distributor exceeds 15 percent of the households in the franchise area;
(C) a multichannel video programming distributor operated by the franchising authority for that franchise area offers video programming to at least 50 percent of the households in that franchise area; or
(D) a local exchange carrier or its affiliate (or any multichannel video programming distributor using the facilities of such carrier or its affiliate) offers video programming services directly to subscribers by any means (other than direct-to-home satellite services) in the franchise area of an unaffiliated cable operator which is providing cable service in that franchise area, but only if the video programming services so offered in that area are comparable to the video programming services provided by the unaffiliated cable operator in that area.
(2) The term “cable programming service” means any video programming provided over a cable system, regardless of service tier, including installation or rental of equipment used for the receipt of such video programming, other than (A) video programming carried on the basic service tier, and (B) video programming offered on a per channel or per program basis.
(m) Special rules for small companies
(1) In generalSubsections (a), (b), and (c) do not apply to a small cable operator with respect to—
(A) cable programming services, or
(B) a basic service tier that was the only service tier subject to regulation as of December 31, 1994,
in any franchise area in which that operator services 50,000 or fewer subscribers.
(2) “Small cable operator” defined
(n) Treatment of prior year losses
(o) Streamlined petition process for small cable operators
(1) In general
(2) Construction
(3) Definition of small cable operator
(June 19, 1934, ch. 652, title VI, § 623, as added Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2788; amended Pub. L. 102–385, § 3(a), Oct. 5, 1992, 106 Stat. 1464; Pub. L. 104–104, title III, § 301(b), (c), (j), (k)(1), Feb. 8, 1996, 110 Stat. 114, 116, 118; Pub. L. 113–200, title I, §§ 110, 111, Dec. 4, 2014, 128 Stat. 2065, 2066; Pub. L. 115–141, div. P, title IV, § 402(e), Mar. 23, 2018, 132 Stat. 1089.)
§ 544. Regulation of services, facilities, and equipment
(a) Regulation by franchising authority
(b) Requests for proposals; establishment and enforcement of requirementsIn the case of any franchise granted after the effective date of this subchapter, the franchising authority, to the extent related to the establishment or operation of a cable system—
(1) in its request for proposals for a franchise (including requests for renewal proposals, subject to section 546 of this title), may establish requirements for facilities and equipment, but may not, except as provided in subsection (h), establish requirements for video programming or other information services; and
(2) subject to section 545 of this title, may enforce any requirements contained within the franchise—
(A) for facilities and equipment; and
(B) for broad categories of video programming or other services.
(c) Enforcement authority respecting franchises effective under prior law
(d) Cable service unprotected by Constitution; blockage of premium channel upon request
(1) Nothing in this subchapter shall be construed as prohibiting a franchising authority and a cable operator from specifying, in a franchise or renewal thereof, that certain cable services shall not be provided or shall be provided subject to conditions, if such cable services are obscene or are otherwise unprotected by the Constitution of the United States.
(2) In order to restrict the viewing of of of 1
1 So in original.
programming which is obscene or indecent, upon the request of a subscriber, a cable operator shall provide (by sale or lease) a device by which the subscriber can prohibit viewing of a particular cable service during periods selected by that subscriber.(3)
(A) If a cable operator provides a premium channel without charge to cable subscribers who do not subscribe to such premium channel, the cable operator shall, not later than 30 days before such premium channel is provided without charge—
(i) notify all cable subscribers that the cable operator plans to provide a premium channel without charge;
(ii) notify all cable subscribers when the cable operator plans to offer a premium channel without charge;
(iii) notify all cable subscribers that they have a right to request that the channel carrying the premium channel be blocked; and
(iv) block the channel carrying the premium channel upon the request of a subscriber.
(B) For the purpose of this section, the term “premium channel” shall mean any pay service offered on a per channel or per program basis, which offers movies rated by the Motion Picture Association of America as X, NC–17, or R.
(e) Technical standards
(f) Limitation on regulatory powers of Federal agencies, States, or franchising authorities; exceptions
(1) Any Federal agency, State, or franchising authority may not impose requirements regarding the provision or span of cable services, except as expressly provided in this subchapter.
(2) Paragraph (1) shall not apply to—
(A) any rule, regulation, or order issued under any Federal law, as such rule, regulation, or order (i) was in effect on September 21, 1983, or (ii) may be amended after such date if the rule, regulation, or order as amended is not inconsistent with the express provisions of this subchapter; and
(B) any rule, regulation, or order under title 17.
(g) Access to emergency information
(h) Notice of changes in and comments on servicesA franchising authority may require a cable operator to do any one or more of the following:
(1) Provide 30 days’ advance written notice of any change in channel assignment or in the video programming service provided over any such channel.
(2) Inform subscribers, via written notice, that comments on programming and channel position changes are being recorded by a designated office of the franchising authority.
(i) Disposition of cable upon termination of service
(June 19, 1934, ch. 652, title VI, § 624, as added Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2789; amended Pub. L. 102–385, §§ 15, 16, Oct. 5, 1992, 106 Stat. 1490; Pub. L. 103–414, title III, §§ 303(a)(23), 304(a)(12), Oct. 25, 1994, 108 Stat. 4295, 4297; Pub. L. 104–104, title III, § 301(e), Feb. 8, 1996, 110 Stat. 116.)
§ 544a. Consumer electronics equipment compatibility
(a) FindingsThe Congress finds that—
(1) new and recent models of television receivers and video cassette recorders often contain premium features and functions that are disabled or inhibited because of cable scrambling, encoding, or encryption technologies and devices, including converter boxes and remote control devices required by cable operators to receive programming;
(2) if these problems are allowed to persist, consumers will be less likely to purchase, and electronics equipment manufacturers will be less likely to develop, manufacture, or offer for sale, television receivers and video cassette recorders with new and innovative features and functions;
(3) cable operators should use technologies that will prevent signal thefts while permitting consumers to benefit from such features and functions in such receivers and recorders; and
(4) compatibility among televisions, video cassette recorders, and cable systems can be assured with narrow technical standards that mandate a minimum degree of common design and operation, leaving all features, functions, protocols, and other product and service options for selection through open competition in the market.
(b) Compatible interfaces
(1) Regulations
(2) Scrambling and encryption
(c) Rulemaking requirements
(1) Factors to be consideredIn prescribing the regulations required by this section, the Commission shall consider—
(A) the need to maximize open competition in the market for all features, functions, protocols, and other product and service options of converter boxes and other cable converters unrelated to the descrambling or decryption of cable television signals;
(B) the costs and benefits to consumers of imposing compatibility requirements on cable operators and television manufacturers in a manner that, while providing effective protection against theft or unauthorized reception of cable service, will minimize interference with or nullification of the special functions of subscribers’ television receivers or video cassette recorders, including functions that permit the subscriber—
(i) to watch a program on one channel while simultaneously using a video cassette recorder to tape a program on another channel;
(ii) to use a video cassette recorder to tape two consecutive programs that appear on different channels; and
(iii) to use advanced television picture generation and display features; and
(C) the need for cable operators to protect the integrity of the signals transmitted by the cable operator against theft or to protect such signals against unauthorized reception.
(2) Regulations requiredThe regulations prescribed by the Commission under this section shall include such regulations as are necessary—
(A) to specify the technical requirements with which a television receiver or video cassette recorder must comply in order to be sold as “cable compatible” or “cable ready”;
(B) to require cable operators offering channels whose reception requires a converter box—
(i) to notify subscribers that they may be unable to benefit from the special functions of their television receivers and video cassette recorders, including functions that permit subscribers—(I) to watch a program on one channel while simultaneously using a video cassette recorder to tape a program on another channel;(II) to use a video cassette recorder to tape two consecutive programs that appear on different channels; and(III) to use advanced television picture generation and display features; and
(ii) to the extent technically and economically feasible, to offer subscribers the option of having all other channels delivered directly to the subscribers’ television receivers or video cassette recorders without passing through the converter box;
(C) to promote the commercial availability, from cable operators and retail vendors that are not affiliated with cable systems, of converter boxes and of remote control devices compatible with converter boxes;
(D) to ensure that any standards or regulations developed under the authority of this section to ensure compatibility between televisions, video cassette recorders, and cable systems do not affect features, functions, protocols, and other product and service options other than those specified in paragraph (1)(B), including telecommunications interface equipment, home automation communications, and computer network services;
(E) to require a cable operator who offers subscribers the option of renting a remote control unit—
(i) to notify subscribers that they may purchase a commercially available remote control device from any source that sells such devices rather than renting it from the cable operator; and
(ii) to specify the types of remote control units that are compatible with the converter box supplied by the cable operator; and
(F) to prohibit a cable operator from taking any action that prevents or in any way disables the converter box supplied by the cable operator from operating compatibly with commercially available remote control units.
(d) Review of regulations
(June 19, 1934, ch. 652, title VI, § 624A, as added Pub. L. 102–385, § 17, Oct. 5, 1992, 106 Stat. 1491; amended Pub. L. 104–104, title III, § 301(f), Feb. 8, 1996, 110 Stat. 116; Pub. L. 115–141, div. P, title IV, § 402(i)(10), Mar. 23, 2018, 132 Stat. 1090.)
§ 545. Modification of franchise obligations
(a) Grounds for modification by franchising authority; public proceeding; time of decision
(1) During the period a franchise is in effect, the cable operator may obtain from the franchising authority modifications of the requirements in such franchise—
(A) in the case of any such requirement for facilities or equipment, including public, educational, or governmental access facilities or equipment, if the cable operator demonstrates that (i) it is commercially impracticable for the operator to comply with such requirement, and (ii) the proposal by the cable operator for modification of such requirement is appropriate because of commercial impracticability; or
(B) in the case of any such requirement for services, if the cable operator demonstrates that the mix, quality, and level of services required by the franchise at the time it was granted will be maintained after such modification.
(2) Any final decision by a franchising authority under this subsection shall be made in a public proceeding. Such decision shall be made within 120 days after receipt of such request by the franchising authority, unless such 120 day period is extended by mutual agreement of the cable operator and the franchising authority.
(b) Judicial proceedings; grounds for modification by court
(1) Any cable operator whose request for modification under subsection (a) has been denied by a final decision of a franchising authority may obtain modification of such franchise requirements pursuant to the provisions of section 555 of this title.
(2) In the case of any proposed modification of a requirement for facilities or equipment, the court shall grant such modification only if the cable operator demonstrates to the court that—
(A) it is commercially impracticable for the operator to comply with such requirement; and
(B) the terms of the modification requested are appropriate because of commercial impracticability.
(3) In the case of any proposed modification of a requirement for services, the court shall grant such modification only if the cable operator demonstrates to the court that the mix, quality, and level of services required by the franchise at the time it was granted will be maintained after such modification.
(c) Rearrangement, replacement, or removal of serviceNotwithstanding subsections (a) and (b), a cable operator may, upon 30 days’ advance notice to the franchising authority, rearrange, replace, or remove a particular cable service required by the franchise if—
(1) such service is no longer available to the operator; or
(2) such service is available to the operator only upon the payment of a royalty required under section 801(b)(2) of title 17, which the cable operator can document—
(A) is substantially in excess of the amount of such payment required on the date of the operator’s offer to provide such service, and
(B) has not been specifically compensated for through a rate increase or other adjustment.
(d) Rearrangement of particular services from one service tier to another or other offering of service
(e) Requirements for services relating to public, educational, or governmental access
(f) “Commercially impracticable” defined
(June 19, 1934, ch. 652, title VI, § 625, as added Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2790.)
§ 546. Renewal
(a) Commencement of proceedings; public notice and participation
(1) A franchising authority may, on its own initiative during the 6-month period which begins with the 36th month before the franchise expiration, commence a proceeding which affords the public in the franchise area appropriate notice and participation for the purpose of (A) identifying the future cable-related community needs and interests, and (B) reviewing the performance of the cable operator under the franchise during the then current franchise term. If the cable operator submits, during such 6-month period, a written renewal notice requesting the commencement of such a proceeding, the franchising authority shall commence such a proceeding not later than 6 months after the date such notice is submitted.
(2) The cable operator may not invoke the renewal procedures set forth in subsections (b) through (g) unless—
(A) such a proceeding is requested by the cable operator by timely submission of such notice; or
(B) such a proceeding is commenced by the franchising authority on its own initiative.
(b) Submission of renewal proposals; contents; time
(1) Upon completion of a proceeding under subsection (a), a cable operator seeking renewal of a franchise may, on its own initiative or at the request of a franchising authority, submit a proposal for renewal.
(2) Subject to section 544 of this title, any such proposal shall contain such material as the franchising authority may require, including proposals for an upgrade of the cable system.
(3) The franchising authority may establish a date by which such proposal shall be submitted.
(c) Notice of proposal; renewal; preliminary assessment of nonrenewal; administrative review; issues; notice and opportunity for hearing; transcript; written decision
(1) Upon submittal by a cable operator of a proposal to the franchising authority for the renewal of a franchise pursuant to subsection (b), the franchising authority shall provide prompt public notice of such proposal and, during the 4-month period which begins on the date of the submission of the cable operator’s proposal pursuant to subsection (b), renew the franchise or, issue a preliminary assessment that the franchise should not be renewed and, at the request of the operator or on its own initiative, commence an administrative proceeding, after providing prompt public notice of such proceeding, in accordance with paragraph (2) to consider whether—
(A) the cable operator has substantially complied with the material terms of the existing franchise and with applicable law;
(B) the quality of the operator’s service, including signal quality, response to consumer complaints, and billing practices, but without regard to the mix or quality of cable services or other services provided over the system, has been reasonable in light of community needs;
(C) the operator has the financial, legal, and technical ability to provide the services, facilities, and equipment as set forth in the operator’s proposal; and
(D) the operator’s proposal is reasonable to meet the future cable-related community needs and interests, taking into account the cost of meeting such needs and interests.
(2) In any proceeding under paragraph (1), the cable operator shall be afforded adequate notice and the cable operator and the franchise authority, or its designee, shall be afforded fair opportunity for full participation, including the right to introduce evidence (including evidence related to issues raised in the proceeding under subsection (a)), to require the production of evidence, and to question witnesses. A transcript shall be made of any such proceeding.
(3) At the completion of a proceeding under this subsection, the franchising authority shall issue a written decision granting or denying the proposal for renewal based upon the record of such proceeding, and transmit a copy of such decision to the cable operator. Such decision shall state the reasons therefor.
(d) Basis for denial
(e) Judicial review; grounds for relief
(1) Any cable operator whose proposal for renewal has been denied by a final decision of a franchising authority made pursuant to this section, or has been adversely affected by a failure of the franchising authority to act in accordance with the procedural requirements of this section, may appeal such final decision or failure pursuant to the provisions of section 555 of this title.
(2) The court shall grant appropriate relief if the court finds that—
(A) any action of the franchising authority, other than harmless error, is not in compliance with the procedural requirements of this section; or
(B) in the event of a final decision of the franchising authority denying the renewal proposal, the operator has demonstrated that the adverse finding of the franchising authority with respect to each of the factors described in subparagraphs (A) through (D) of subsection (c)(1) on which the denial is based is not supported by a preponderance of the evidence, based on the record of the proceeding conducted under subsection (c).
(f) Finality of administrative decision
(g) “Franchise expiration” defined
(h) Alternative renewal procedures
(i) Effect of renewal procedures upon action to revoke franchise for cause
(June 19, 1934, ch. 652, title VI, § 626, as added Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2791; amended Pub. L. 102–385, § 18, Oct. 5, 1992, 106 Stat. 1493.)
§ 547. Conditions of sale
(a) 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—
(1) 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, or
(2) in the case of any franchise existing on the effective date of this subchapter, at a price determined in accordance with the franchise if such franchise contains provisions applicable to such an acquisition or transfer.
(b) 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—
(1) at an equitable price, or
(2) in the case of any franchise existing on the effective date of this subchapter, at a price determined in accordance with the franchise if such franchise contains provisions applicable to such an acquisition or transfer.
(June 19, 1934, ch. 652, title VI, § 627, as added Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2793.)
§ 548. Development of competition and diversity in video programming distribution
(a) Purpose
(b) Prohibition
(c) Regulations required
(1) Proceeding required
(2) Minimum contents of regulationsThe regulations to be promulgated under this section shall—
(A) establish effective safeguards to prevent a cable operator which has an attributable interest in a satellite cable programming vendor or a satellite broadcast programming vendor from unduly or improperly influencing the decision of such vendor to sell, or the prices, terms, and conditions of sale of, satellite cable programming or satellite broadcast programming to any unaffiliated multichannel video programming distributor;
(B) prohibit discrimination by a satellite cable programming vendor in which a cable operator has an attributable interest or by a satellite broadcast programming vendor in the prices, terms, and conditions of sale or delivery of satellite cable programming or satellite broadcast programming among or between cable systems, cable operators, or other multichannel video programming distributors, or their agents or buying groups; except that such a satellite cable programming vendor in which a cable operator has an attributable interest or such a satellite broadcast programming vendor shall not be prohibited from—
(i) imposing reasonable requirements for creditworthiness, offering of service, and financial stability and standards regarding character and technical quality;
(ii) establishing different prices, terms, and conditions to take into account actual and reasonable differences in the cost of creation, sale, delivery, or transmission of satellite cable programming or satellite broadcast programming;
(iii) establishing different prices, terms, and conditions which take into account economies of scale, cost savings, or other direct and legitimate economic benefits reasonably attributable to the number of subscribers served by the distributor; or
(iv) entering into an exclusive contract that is permitted under subparagraph (D);
(C) prohibit practices, understandings, arrangements, and activities, including exclusive contracts for satellite cable programming or satellite broadcast programming between a cable operator and a satellite cable programming vendor or satellite broadcast programming vendor, that prevent a multichannel video programming distributor from obtaining such programming from any satellite cable programming vendor in which a cable operator has an attributable interest or any satellite broadcast programming vendor in which a cable operator has an attributable interest for distribution to persons in areas not served by a cable operator as of October 5, 1992; and
(D) with respect to distribution to persons in areas served by a cable operator, prohibit exclusive contracts for satellite cable programming or satellite broadcast programming between a cable operator and a satellite cable programming vendor in which a cable operator has an attributable interest or a satellite broadcast programming vendor in which a cable operator has an attributable interest, unless the Commission determines (in accordance with paragraph (4)) that such contract is in the public interest.
(3) Limitations
(A) Geographic limitations
(B) Applicability to satellite retransmissions
(4) Public interest determinations on exclusive contractsIn determining whether an exclusive contract is in the public interest for purposes of paragraph (2)(D), the Commission shall consider each of the following factors with respect to the effect of such contract on the distribution of video programming in areas that are served by a cable operator:
(A) the effect of such exclusive contract on the development of competition in local and national multichannel video programming distribution markets;
(B) the effect of such exclusive contract on competition from multichannel video programming distribution technologies other than cable;
(C) the effect of such exclusive contract on the attraction of capital investment in the production and distribution of new satellite cable programming;
(D) the effect of such exclusive contract on diversity of programming in the multichannel video programming distribution market; and
(E) the duration of the exclusive contract.
(5) Sunset provision
(d) Adjudicatory proceeding
(e) Remedies for violations
(1) Remedies authorized
(2) Additional remedies
(f) ProceduresThe Commission shall prescribe regulations to implement this section. The Commission’s regulations shall—
(1) provide for an expedited review of any complaints made pursuant to this section;
(2) establish procedures for the Commission to collect such data, including the right to obtain copies of all contracts and documents reflecting arrangements and understandings alleged to violate this section, as the Commission requires to carry out this section; and
(3) provide for penalties to be assessed against any person filing a frivolous complaint pursuant to this section.
(g) Common carriers
(h) Exemptions for prior contracts
(1) In general
(2) Limitation on renewals
(i) DefinitionsAs used in this section:
(1) The term “satellite cable programming” has the meaning provided under section 605 of this title, except that such term does not include satellite broadcast programming.
(2) The term “satellite cable programming vendor” means a person engaged in the production, creation, or wholesale distribution for sale of satellite cable programming, but does not include a satellite broadcast programming vendor.
(3) The term “satellite broadcast programming” means broadcast video programming when such programming is retransmitted by satellite and the entity retransmitting such programming is not the broadcaster or an entity performing such retransmission on behalf of and with the specific consent of the broadcaster.
(4) The term “satellite broadcast programming vendor” means a fixed service satellite carrier that provides service pursuant to section 119 of title 17 with respect to satellite broadcast programming.
(June 19, 1934, ch. 652, title VI, § 628, as added Pub. L. 102–385, § 19, Oct. 5, 1992, 106 Stat. 1494; amended Pub. L. 104–104, title III, § 301(h), Feb. 8, 1996, 110 Stat. 117; Pub. L. 115–141, div. P, title IV, § 402(d), Mar. 23, 2018, 132 Stat. 1089.)
§ 549. Competitive availability of navigation devices
(a) Commercial consumer availability of equipment used to access services provided by multichannel video programming distributors
(b) Protection of system security
(c) Waiver
(d) Avoidance of redundant regulations
(1) Commercial availability determinations
(2) Regulations
(e) Sunset
The regulations adopted under this section shall cease to apply when the Commission determines that—
(1) the market for the multichannel video programming distributors is fully competitive;
(2) the market for converter boxes, and interactive communications equipment, used in conjunction with that service is fully competitive; and
(3) elimination of the regulations would promote competition and the public interest.
(f) Commission’s authority
(June 19, 1934, ch. 652, title VI, § 629, as added Pub. L. 104–104, title III, § 304, Feb. 8, 1996, 110 Stat. 125.)