HR 4927 — CABLE Competition Act

Summary

Consumer Access to Broadband for Local Economies and Competition Act or the CABLE Competition ActThis bill prohibits state and local cable franchising authorities from precluding certain transactions involving the sale or transfer of a cable franchise.Providers of cable television service (cable operators) must generally obtain authorization (known as a franchise) from a state or local franchising authority in order to offer cable service in a given area. Under current law, a franchising authority may require a cable operator to obtain the authority’s approval before selling or transferring a franchise.Under the bill, a franchising authority may not preclude a cable operator from selling or transferring a franchise to a new owner who agrees to accept all terms applicable to the cable operator at the time of the transaction. However, a franchising authority may require a cable operator to notify the authority at least 15 days before such a transaction.The bill takes effect six months after it is enacted. Its provisions generally apply to franchises that (1) are granted on or after the effective date, or (2) were granted before the effective date and were in effect or operational on that date.

Bill Text

• Introduced Introduced in House Current html August 08, 2025

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

This bill significantly modifies the conditions under which franchising authorities can interact with cable operators regarding the sale or transfer of cable systems.

• 47 U.S.C. 547

  (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— → 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.

  The conditions for acquisition or transfer after franchise revocation are redefined to specify that such transfers are to be at fair market value.

• 47 U.S.C. 547

  (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— → (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--

  The bill establishes limitations on the authority of franchising authorities, preventing them from blocking transfers of franchises to new parties.

• 47 U.S.C. 547

  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. → (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.

  The options for pricing during transfer of franchises have been simplified and now focus on preventing franchising authorities from rejecting transfers.

• 47 U.S.C. 547

  (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) → (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.

  A notification requirement is established for operators transferring franchises to new entities.

• 47 U.S.C. 547

  (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.

  A clear definition of what constitutes a transfer of a franchise is added.

Action History

1. August 08, 2025

   Introduced in House

2. August 08, 2025

   Introduced in House

3. August 08, 2025

   Referred to the House Committee on Energy and Commerce.

Sponsors

• Erin Houchin · Primary
• Craig A. Goldman · Cosponsor

Subjects