CABLE Competition Act

This 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.

Summary by the Congressional Research Service.