Cable Transparency Act

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.