Summary

Requires that when a cable franchise is revoked and a local franchising authority acquires or transfers the cable system, the transaction occur at fair market value and limits the authority’s ability to block or change transfers. It also defines "transfer of a franchise" to include mergers, sales, assignments, restructurings, and transfers of control, allows a short written-notice requirement for certain transfers, and becomes effective six months after enactment for new and many existing franchises. The change narrows local franchising authorities’ discretion over who may receive a transferred franchise and preserves existing franchise terms if the transferee accepts them, while adding a clear valuation requirement when the authority acquires or transfers a system following revocation.

• Requires fair market value for franchising-authority acquisitions or transfers of cable systems after franchise revocation.
• Prevents franchising authorities from blocking transfers to persons who were not the original grantee solely on that basis.
• Prohibits requiring changes to franchise terms if the transferee agrees to accept existing terms.
• Allows franchising authorities to require written notice at least 15 days before a transfer when the transferee was not the original grantee.
• Defines "transfer of a franchise" broadly to include mergers, sales, assignments, restructurings, and transfers of control.
• Takes effect six months after enactment and applies to new franchises and many existing franchises in effect or being performed after expiration.
• Reduces local discretion to renegotiate franchise terms on transfer, while preserving a limited written-notice role for franchising authorities.
• Aims to make transfers more predictable for cable operators and potential buyers, potentially encouraging transactions and continuity of service.