47 U.S.C. § 545 — Modification of franchise obligations

Page 295 TITLE 47—TELECOMMUNICATIONS § 545 (ii) to the extent technically and eco- nomically feasible, to offer subscribers the option of having all other channels deliv- ered directly to the subscribers’ television receivers or video cassette recorders with- out passing through the converter box; (C) to promote the commercial avail- ability, from cable operators and retail ven- dors that are not affiliated with cable sys- tems, of converter boxes and of remote con- trol devices compatible with converter boxes; (D) to ensure that any standards or regula- tions developed under the authority of this section to ensure compatibility between televisions, video cassette recorders, and cable systems do not affect features, func- tions, protocols, and other product and serv- ice options other than those specified in paragraph (1)(B), including telecommuni- cations interface equipment, home automa- tion communications, and computer net- work services; (E) to require a cable operator who offers subscribers the option of renting a remote control unit— (i) to notify subscribers that they may purchase a commercially available remote control device from any source that sells such devices rather than renting it from the cable operator; and (ii) to specify the types of remote con- trol units that are compatible with the converter box supplied by the cable oper- ator; and (F) to prohibit a cable operator from tak- ing any action that prevents or in any way disables the converter box supplied by the cable operator from operating compatibly with commercially available remote control units. (d) Review of regulations The Commission shall periodically review and, if necessary, modify the regulations issued pur- suant to this section in light of any actions taken in response to such regulations and to re- flect improvements and changes in cable sys- tems, television receivers, video cassette record- ers, and similar technology. (June 19, 1934, ch. 652, title VI, § 624A, as added Pub. L. 102–385, § 17, Oct. 5, 1992, 106 Stat. 1491; amended Pub. L. 104–104, title III, § 301(f), Feb. 8, 1996, 110 Stat. 116; Pub. L. 115–141, div. P, title IV, § 402(i)(10), Mar. 23, 2018, 132 Stat. 1090.) Editorial Notes AMENDMENTS 2018—Subsec. (b)(1). Pub. L. 115–141, in heading, sub- stituted ‘‘Regulations’’ for ‘‘Report; regulations’’, and in text, substituted ‘‘The Commission shall issue such regulations as are necessary to assure’’ for ‘‘Within 1 year after October 5, 1992, the Commission, in consulta- tion with representatives of the cable industry and the consumer electronics industry, shall report to Congress on means of assuring’’ and struck out at end ‘‘Within 180 days after the date of submission of the report re- quired by this subsection, the Commission shall issue such regulations as are necessary to assure such com- patibility.’’ 1996—Subsec. (a)(4). Pub. L. 104–104, § 301(f)(1), added par. (4). Subsec. (c)(1)(A) to (C). Pub. L. 104–104, § 301(f)(2), added subpar. (A) and redesignated former subpars. (A) and (B) as (B) and (C), respectively. Subsec. (c)(2)(D) to (F). Pub. L. 104–104, § 301(f)(3), added subpar. (D) and redesignated former subpars. (D) and (E) as (E) and (F), respectively. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 60 days after Oct. 5, 1992, see section 28 of Pub. L. 102–385, set out as an Effective Date of 1992 Amendment note under section 325 of this title. § 545. Modification of franchise obligations (a) Grounds for modification by franchising au- thority; public proceeding; time of decision (1) During the period a franchise is in effect, the cable operator may obtain from the fran- chising authority modifications of the require- ments in such franchise— (A) in the case of any such requirement for facilities or equipment, including public, edu- cational, or governmental access facilities or equipment, if the cable operator demonstrates that (i) it is commercially impracticable for the operator to comply with such require- ment, and (ii) the proposal by the cable oper- ator for modification of such requirement is appropriate because of commercial imprac- ticability; or (B) in the case of any such requirement for services, if the cable operator demonstrates that the mix, quality, and level of services re- quired by the franchise at the time it was granted will be maintained after such modi- fication. (2) Any final decision by a franchising author- ity under this subsection shall be made in a pub- lic proceeding. Such decision shall be made within 120 days after receipt of such request by the franchising authority, unless such 120 day period is extended by mutual agreement of the cable operator and the franchising authority. (b) Judicial proceedings; grounds for modifica- tion by court (1) Any cable operator whose request for modi- fication under subsection (a) has been denied by a final decision of a franchising authority may obtain modification of such franchise require- ments pursuant to the provisions of section 555 of this title. (2) In the case of any proposed modification of a requirement for facilities or equipment, the court shall grant such modification only if the cable operator demonstrates to the court that— (A) it is commercially impracticable for the operator to comply with such requirement; and (B) the terms of the modification requested are appropriate because of commercial im- practicability. (3) In the case of any proposed modification of a requirement for services, the court shall grant such modification only if the cable operator demonstrates to the court that the mix, quality, and level of services required by the franchise at the time it was granted will be maintained after such modification. Page 296 TITLE 47—TELECOMMUNICATIONS § 546 (c) Rearrangement, replacement, or removal of service Notwithstanding subsections (a) and (b), a cable operator may, upon 30 days’ advance no- tice to the franchising authority, rearrange, re- place, or remove a particular cable service re- quired by the franchise if— (1) such service is no longer available to the operator; or (2) such service is available to the operator only upon the payment of a royalty required under section 801(b)(2) of title 17, which the cable operator can document— (A) is substantially in excess of the amount of such payment required on the date of the operator’s offer to provide such service, and (B) has not been specifically compensated for through a rate increase or other adjust- ment. (d) Rearrangement of particular services from one service tier to another or other offering of service Notwithstanding subsections (a) and (b), a cable operator may take such actions to rear- range a particular service from one service tier to another, or otherwise offer the service, if the rates for all of the service tiers involved in such actions are not subject to regulation under sec- tion 543 of this title. (e) Requirements for services relating to public, educational, or governmental access A cable operator may not obtain modification under this section of any requirement for serv- ices relating to public, educational, or govern- mental access. (f) ‘‘Commercially impracticable’’ defined For purposes of this section, the term ‘‘com- mercially impracticable’’ means, with respect to any requirement applicable to a cable operator, that it is commercially impracticable for the operator to comply with such requirement as a result of a change in conditions which is beyond the control of the operator and the nonoccur- rence of which was a basic assumption on which the requirement was based. (June 19, 1934, ch. 652, title VI, § 625, as added Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2790.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 60 days after Oct. 30, 1984, except where otherwise expressly provided, see section 9(a) of Pub. L. 98–549, set out as a note under section 521 of this title. § 546. Renewal (a) Commencement of proceedings; public notice and participation (1) A franchising authority may, on its own initiative during the 6-month period which be- gins with the 36th month before the franchise expiration, commence a proceeding which af- fords the public in the franchise area appro- priate notice and participation for the purpose of (A) identifying the future cable-related com- munity needs and interests, and (B) reviewing the performance of the cable operator under the franchise during the then current franchise term. If the cable operator submits, during such 6-month period, a written renewal notice re- questing the commencement of such a pro- ceeding, the franchising authority shall com- mence such a proceeding not later than 6 months after the date such notice is submitted. (2) The cable operator may not invoke the re- newal procedures set forth in subsections (b) through (g) unless— (A) such a proceeding is requested by the cable operator by timely submission of such notice; or (B) such a proceeding is commenced by the franchising authority on its own initiative. (b) Submission of renewal proposals; contents; time (1) Upon completion of a proceeding under sub- section (a), a cable operator seeking renewal of a franchise may, on its own initiative or at the request of a franchising authority, submit a pro- posal for renewal. (2) Subject to section 544 of this title, any such proposal shall contain such material as the fran- chising authority may require, including pro- posals for an upgrade of the cable system. (3) The franchising authority may establish a date by which such proposal shall be submitted. (c) Notice of proposal; renewal; preliminary as- sessment of nonrenewal; administrative re- view; issues; notice and opportunity for hear- ing; transcript; written decision (1) Upon submittal by a cable operator of a proposal to the franchising authority for the re- newal of a franchise pursuant to subsection (b), the franchising authority shall provide prompt public notice of such proposal and, during the 4- month period which begins on the date of the submission of the cable operator’s proposal pur- suant to subsection (b), renew the franchise or, issue a preliminary assessment that the fran- chise should not be renewed and, at the request of the operator or on its own initiative, com- mence an administrative proceeding, after pro- viding prompt public notice of such proceeding, in accordance with paragraph (2) to consider whether— (A) the cable operator has substantially complied with the material terms of the exist- ing franchise and with applicable law; (B) the quality of the operator’s service, in- cluding signal quality, response to consumer complaints, and billing practices, but without regard to the mix or quality of cable services or other services provided over the system, has been reasonable in light of community needs; (C) the operator has the financial, legal, and technical ability to provide the services, fa- cilities, and equipment as set forth in the op- erator’s proposal; and (D) the operator’s proposal is reasonable to meet the future cable-related community needs and interests, taking into account the cost of meeting such needs and interests. (2) In any proceeding under paragraph (1), the cable operator shall be afforded adequate notice and the cable operator and the franchise author-