Summary

Replaces the previous rules governing valuation and transfers of cable franchises after a franchise is revoked so that if a local franchising authority acquires or transfers the cable system after revocation, the acquisition or transfer must be at fair market value. It also prevents franchising authorities from blocking transfers to parties other than the original grantee so long as the transferee accepts the franchise terms in effect at the time of transfer, allows a franchising authority to require written notice at least 15 days before transfer, and broadly defines what counts as a "transfer." The changes take effect six months after enactment and apply to new franchises granted after that date as well as to existing franchises still in force.

• Acquisitions or transfers of a cable system by a franchising authority after franchise revocation must be at fair market value.
• Franchising authorities cannot refuse transfers to parties other than the original grantee if the transferee accepts existing franchise terms.
• Franchising authorities may require written notice of transfers at least 15 days before the transfer.
• The law defines "transfer of a franchise" broadly to include mergers, sales, assignments, restructurings, and changes of control.
• The amendments take effect six months after enactment and apply to new franchises and to existing franchises still in effect.
• The change standardizes post-revocation valuation and narrows local discretion to block transfers by identity of transferee.
• No new funding, appropriations, or tax changes are created by the amendment.
• The rule may increase marketability of cable systems and affect bargaining leverage between local authorities and buyers.