Bill Summary
The "Consumer Access to Broadband for Local Economies and Competition Act," also known as the "CABLE Competition Act," seeks to amend the Communications Act of 1934 to streamline the process for cable system sales. The bill prohibits franchising authorities from requiring approval for the transfer of cable system franchises, allowing cable operators to sell or transfer ownership more freely. Key provisions include:
1. **Fair Market Value**: If a franchise is revoked, the franchising authority must acquire the cable system at its fair market value.
2. **Transfer Restrictions**: Franchising authorities cannot prevent cable operators from transferring their franchises to new parties, provided the new party agrees to the existing franchise terms.
3. **Notification Requirement**: Cable operators must notify franchising authorities within 15 days before transferring a franchise to an unoriginal recipient.
4. **Broad Definition of Transfer**: The bill broadly defines "transfer of a franchise" to include various forms of ownership changes, such as sales, mergers, or restructurings.
The amendments are set to take effect six months after the bill's enactment and apply to both new and existing franchises under specific conditions. Overall, the legislation aims to enhance competition and consumer access to broadband services by reducing bureaucratic hurdles in cable system sales.
Possible Impacts
Here are three potential effects of the "Consumer Access to Broadband for Local Economies and Competition Act" (also referred to as the "CABLE Competition Act") on individuals and communities:
1. **Increased Competition and Consumer Choice**:
The legislation removes the requirement for franchising authorities to approve the sale of cable systems, which could lead to increased competition among cable providers. As more operators enter the market or existing operators transfer their franchises to new entities, consumers may benefit from a wider array of choices regarding cable services, pricing, and packages. This enhanced competition could lead to better service quality and lower prices for consumers.
2. **Investment in Infrastructure**:
The act may encourage investment in cable infrastructure by providing operators with more flexibility in transferring franchises. New entrants in the market may be more willing to invest in upgrades and expansions of existing cable systems, leading to improved broadband access and technology in underserved areas. This could enhance overall connectivity and digital access for residents, particularly in rural or low-income communities.
3. **Potential Loss of Local Control**:
While the legislation aims to foster competition, it may also diminish the control that local franchising authorities have over cable systems in their jurisdictions. This could lead to situations where local governments find it challenging to enforce community standards or regulations related to service quality, pricing, or content. Residents may feel disempowered if their local government has less authority to negotiate terms that specifically address local needs and concerns, potentially impacting the quality of service they receive.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4927 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4927
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
August 8, 2025
Mrs. Houchin (for herself and Mr. Goldman of Texas) 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 After Revocation of Franchise.--If a
franchise held by a cable operator is revoked under section
626(b)(2)(B) 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 preclude
a cable operator from transferring a franchise to any person--
``(A) to which such franchise was not initially
granted; and
``(B) with respect to the terms of the franchise
that apply to the cable operator, who agrees to accept
all such terms in effect 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 before the transfer of the 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 cable operator
has continued to perform under the provisions of such
franchise as if such franchise were not expired.
<all>