Cable Transparency Act
The Cable Transparency Act would overhaul how federal law handles cable franchise terms and the ability to modify or terminate franchise obligations. It gives cable operators new authority to request elimination or modification of requirements within an existing franchise while it’s in effect, with a mandated 120-day deadline for franchising authorities to act if the operator demonstrates good cause (such as conforming to federal/state law, changes in technology, or commercial impracticability) and assurance that service quality will be maintained. If the authority misses the deadline, the requested change would be deemed approved (with an exception for public/educational/government access requirements). The bill also tightens the process for revoking or terminating franchises, allowing existing franchises to continue unless certain conditions are met, and providing new avenues for oversight and review. Additionally, it makes technical adjustments to several provisions of the Communications Act and sets an effective date six months after enactment, with various applicability rules for new versus existing franchises. In short, the act aims to increase transparency and speed in adjusting franchise obligations during the term, while reshaping the balance of power between cable operators and local franchising authorities, and aligning renewal-related provisions with the new framework.
Key Points
- 1Elimination or Modification of Franchise Requirements:
- 2- A cable operator can request removal or modification of any franchise requirement while the franchise is active.
- 3- The franchising authority must act within 120 days after receiving a complete request if the operator shows good cause (conformity with federal/state law, technology changes, or commercial impracticability) and that service quality will be maintained.
- 4- “Commercial impracticability” is defined as a change in conditions beyond the operator’s control that makes compliance impracticable, a condition not anticipated when the requirement was set.
- 5- If the authority does not decide by the deadline, the modification/elimination is deemed approved, except for PEG access-related requirements.
- 6Deemed Elimination/Modification and Appeals:
- 7- Deemed elimination/modification applies unless the request concerns PEG access services.
- 8- Operators can seek judicial review if a franchising authority denies a request; courts review the decision with standards set in the bill.
- 9Completion Standards for Requests:
- 10- A request is considered complete when the operator has completed required steps and the authority has not timely indicated missing information (with a 30-day look-ahead for missing items and rules).
- 11Franchise Term and Termination Reform:
- 12- A franchise continues in effect without renewal until revoked/terminated under the adjusted framework.
- 13- Termination by the cable operator: operator can request revocation; the authority must revoke after 90 days if the request is complete, or the franchise is deemed revoked the day after that deadline if no action is taken.
- 14- Termination by the franchising authority: authority may revoke if the operator knowingly and willfully fails to substantially meet a material franchise requirement, with a cure period and no waiver of the requirement.
- 15- Review and stay rights: operators can pursue administrative or judicial review of revocation decisions; the Commission’s review is de novo (new examination of the facts).
- 16Technical and Conforming Amendments:
- 17- Multiple sections of the Communications Act are adjusted to remove or realign renewal-related language, aligning with the act’s broader changes.
- 18Effective Date and Application:
- 19- The act takes effect six months after enactment.
- 20- Applies to franchising agreements granted on or after the effective date, or to pre-existing franchises that are in effect on that date or continue to operate despite expiration.