[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3314 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 3314

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 15, 2023

 Mr. Burgess introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
    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 as follows:

``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, 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' means the transfer or 
        assignment of any rights under a franchise through any 
        transaction, including through--
                    ``(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.
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