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47 U.S.C. § 543 — Regulation of rates
Federal law — U.S. Code and appendices · legal_authorities
Page 287
TITLE 47—TELECOMMUNICATIONS
§ 543
erator, or regulate the use of funds derived from
such fees, except as provided in this section.
(June 19, 1934, ch. 652, title VI, § 622, as added
Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2787;
amended Pub. L. 102–385, § 14, Oct. 5, 1992, 106
Stat. 1489; Pub. L. 104–104, title III, § 303(b), Feb.
8, 1996, 110 Stat. 125.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (h)(1), was in the
original ‘‘this Act’’, meaning act June 19, 1934, ch. 652,
48 Stat. 1064, known as the Communications Act of 1934,
which is classified principally to this chapter. For com-
plete classification of this Act to the Code, see section
609 of this title and Tables.
AMENDMENTS
1996—Subsec. (b). Pub. L. 104–104 inserted ‘‘to provide
cable services’’ before period at end of first sentence.
1992—Subsec. (c). Pub. L. 102–385 amended subsec. (c)
generally. Prior to amendment, subsec. (c) read as fol-
lows: ‘‘A cable operator may pass through to sub-
scribers the amount of any increase in a franchise fee,
unless the franchising authority demonstrates that the
rate structure specified in the franchise reflects all
costs of franchise fees and so notifies the cable operator
in writing.’’
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–385 effective 60 days after
Oct. 5, 1992, see section 28 of Pub. L. 102–385, set out as
a note under section 325 of this title.
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.
§ 543. Regulation of rates
(a) Competition preference; local and Federal
regulation
(1) In general
N
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Page 287
TITLE 47—TELECOMMUNICATIONS
§ 543
erator, or regulate the use of funds derived from
such fees, except as provided in this section.
(June 19, 1934, ch. 652, title VI, § 622, as added
Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2787;
amended Pub. L. 102–385, § 14, Oct. 5, 1992, 106
Stat. 1489; Pub. L. 104–104, title III, § 303(b), Feb.
8, 1996, 110 Stat. 125.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (h)(1), was in the
original ‘‘this Act’’, meaning act June 19, 1934, ch. 652,
48 Stat. 1064, known as the Communications Act of 1934,
which is classified principally to this chapter. For com-
plete classification of this Act to the Code, see section
609 of this title and Tables.
AMENDMENTS
1996—Subsec. (b). Pub. L. 104–104 inserted ‘‘to provide
cable services’’ before period at end of first sentence.
1992—Subsec. (c). Pub. L. 102–385 amended subsec. (c)
generally. Prior to amendment, subsec. (c) read as fol-
lows: ‘‘A cable operator may pass through to sub-
scribers the amount of any increase in a franchise fee,
unless the franchising authority demonstrates that the
rate structure specified in the franchise reflects all
costs of franchise fees and so notifies the cable operator
in writing.’’
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–385 effective 60 days after
Oct. 5, 1992, see section 28 of Pub. L. 102–385, set out as
a note under section 325 of this title.
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.
§ 543. Regulation of rates
(a) Competition preference; local and Federal
regulation
(1) In general
No Federal agency or State may regulate
the rates for the provision of cable service ex-
cept to the extent provided under this section
and section 532 of this title. Any franchising
authority may regulate the rates for the pro-
vision of cable service, or any other commu-
nications service provided over a cable system
to cable subscribers, but only to the extent
provided under this section. No Federal agen-
cy, State, or franchising authority may regu-
late the rates for cable service of a cable sys-
tem that is owned or operated by a local gov-
ernment
or
franchising
authority
within
whose jurisdiction that cable system is lo-
cated and that is the only cable system lo-
cated within such jurisdiction.
(2) Preference for competition
If the Commission finds that a cable system
is subject to effective competition, the rates
for the provision of cable service by such sys-
tem shall not be subject to regulation by the
Commission or by a State or franchising au-
thority under this section. If the Commission
finds that a cable system is not subject to ef-
fective competition—
(A) the rates for the provision of basic
cable service shall be subject to regulation
by a franchising authority, or by the Com-
mission if the Commission exercises juris-
diction pursuant to paragraph (6), in accord-
ance with the regulations prescribed by the
Commission under subsection (b); and
(B) the rates for cable programming serv-
ices shall be subject to regulation by the
Commission under subsection (c).
(3) Qualification of franchising authority
A franchising authority that seeks to exer-
cise the regulatory jurisdiction permitted
under paragraph (2)(A) shall file with the Com-
mission a written certification that—
(A) the franchising authority will adopt
and administer regulations with respect to
the rates subject to regulation under this
section that are consistent with the regula-
tions prescribed by the Commission under
subsection (b);
(B) the franchising authority has the legal
authority to adopt, and the personnel to ad-
minister, such regulations; and
(C) procedural laws and regulations appli-
cable to rate regulation proceedings by such
authority provide a reasonable opportunity
for consideration of the views of interested
parties.
(4) Approval by Commission
A certification filed by a franchising author-
ity under paragraph (3) shall be effective 30
days after the date on which it is filed unless
the Commission finds, after notice to the au-
thority and a reasonable opportunity for the
authority to comment, that—
(A) the franchising authority has adopted
or is administering regulations with respect
to the rates subject to regulation under this
section that are not consistent with the reg-
ulations
prescribed
by
the
Commission
under subsection (b);
(B) the franchising authority does not
have the legal authority to adopt, or the per-
sonnel to administer, such regulations; or
(C) procedural laws and regulations appli-
cable to rate regulation proceedings by such
authority do not provide a reasonable oppor-
tunity for consideration of the views of in-
terested parties.
If the Commission disapproves a franchising
authority’s
certification,
the
Commission
shall notify the franchising authority of any
revisions or modifications necessary to obtain
approval.
(5) Revocation of jurisdiction
Upon petition by a cable operator or other
interested party, the Commission shall review
the regulation of cable system rates by a fran-
chising authority under this subsection. A
copy of the petition shall be provided to the
franchising authority by the person filing the
petition. If the Commission finds that the
franchising authority has acted inconsistently
with the requirements of this subsection, the
Commission shall grant appropriate relief. If
the Commission, after the franchising author-
ity has had a reasonable opportunity to com-
ment, determines that the State and local
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TITLE 47—TELECOMMUNICATIONS
§ 543
laws and regulations are not in conformance
with the regulations prescribed by the Com-
mission under subsection (b), the Commission
shall revoke the jurisdiction of such author-
ity.
(6) Exercise of jurisdiction by Commission
If the Commission disapproves a franchising
authority’s certification under paragraph (4),
or revokes such authority’s jurisdiction under
paragraph (5), the Commission shall exercise
the franchising authority’s regulatory juris-
diction under paragraph (2)(A) until the fran-
chising authority has qualified to exercise
that jurisdiction by filing a new certification
that meets the requirements of paragraph (3).
Such new certification shall be effective upon
approval by the Commission. The Commission
shall act to approve or disapprove any such
new certification within 90 days after the date
it is filed.
(7) Aggregation of equipment costs
(A) In general
The Commission shall allow cable opera-
tors, pursuant to any rules promulgated
under subsection (b)(3), to aggregate, on a
franchise, system, regional, or company
level, their equipment costs into broad cat-
egories, such as converter boxes, regardless
of the varying levels of functionality of the
equipment within each such broad category.
Such aggregation shall not be permitted
with respect to equipment used by sub-
scribers who receive only a rate regulated
basic service tier.
(B) Revision to Commission rules; forms
Within 120 days of February 8, 1996, the
Commission shall issue revisions to the ap-
propriate rules and forms necessary to im-
plement subparagraph (A).
(b) Establishment of basic service tier rate regu-
lations
(1) Commission obligation to subscribers
The Commission shall, by regulation, ensure
that the rates for the basic service tier are
reasonable. Such regulations shall be designed
to achieve the goal of protecting subscribers of
any cable system that is not subject to effec-
tive competition from rates for the basic serv-
ice tier that exceed the rates that would be
charged for the basic service tier if such cable
system were subject to effective competition.
(2) Commission regulations
Within 180 days after October 5, 1992, the
Commission shall prescribe, and periodically
thereafter revise, regulations to carry out its
obligations under paragraph (1). In prescribing
such regulations, the Commission—
(A) shall seek to reduce the administrative
burdens on subscribers, cable operators,
franchising authorities, and the Commis-
sion;
(B) may adopt formulas or other mecha-
nisms and procedures in complying with the
requirements of subparagraph (A); and
(C) shall take into account the following
factors:
(i) the rates for cable systems, if any,
that are subject to effective competition;
(ii) the direct costs (if any) of obtaining,
transmitting, and otherwise providing sig-
nals carried on the basic service tier, in-
cluding signals and services carried on the
basic service tier pursuant to paragraph
(7)(B), and changes in such costs;
(iii) only such portion of the joint and
common costs (if any) of obtaining, trans-
mitting, and otherwise providing such sig-
nals as is determined, in accordance with
regulations prescribed by the Commission,
to be reasonably and properly allocable to
the basic service tier, and changes in such
costs;
(iv) the revenues (if any) received by a
cable operator from advertising from pro-
gramming that is carried as part of the
basic service tier or from other consider-
ation obtained in connection with the
basic service tier;
(v) the reasonably and properly allocable
portion of any amount assessed as a fran-
chise fee, tax, or charge of any kind im-
posed by any State or local authority on
the transactions between cable operators
and cable subscribers or any other fee, tax,
or assessment of general applicability im-
posed by a governmental entity applied
against cable operators or cable sub-
scribers;
(vi) any amount required, in accordance
with paragraph (4), to satisfy franchise re-
quirements to support public, educational,
or governmental channels or the use of
such channels or any other services re-
quired under the franchise; and
(vii) a reasonable profit, as defined by
the Commission consistent with the Com-
mission’s obligations to subscribers under
paragraph (1).
(3) Equipment
The regulations prescribed by the Commis-
sion under this subsection shall include stand-
ards to establish, on the basis of actual cost,
the price or rate for—
(A) installation and lease of the equipment
used by subscribers to receive the basic serv-
ice tier, including a converter box and a re-
mote control unit and, if requested by the
subscriber, such addressable converter box
or other equipment as is required to access
programming described in paragraph (8); and
(B) installation and monthly use of con-
nections for additional television receivers.
(4) Costs of franchise requirements
The regulations prescribed by the Commis-
sion under this subsection shall include stand-
ards to identify costs attributable to satis-
fying franchise requirements to support pub-
lic, educational, and governmental channels or
the use of such channels or any other services
required under the franchise.
(5) Implementation and enforcement
The regulations prescribed by the Commis-
sion under this subsection shall include addi-
tional standards, guidelines, and procedures
concerning the implementation and enforce-
ment of such regulations, which shall in-
clude—
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TITLE 47—TELECOMMUNICATIONS
§ 543
(A) procedures by which cable operators
may implement and franchising authorities
may enforce the regulations prescribed by
the Commission under this subsection;
(B) procedures for the expeditious resolu-
tion of disputes between cable operators and
franchising authorities concerning the ad-
ministration of such regulations;
(C) standards and procedures to prevent
unreasonable charges for changes in the sub-
scriber’s selection of services or equipment
subject to regulation under this section,
which standards shall require that charges
for changing the service tier selected shall
be based on the cost of such change and shall
not exceed nominal amounts when the sys-
tem’s configuration permits changes in serv-
ice tier selection to be effected solely by
coded entry on a computer terminal or by
other similarly simple method; and
(D) standards and procedures to assure
that subscribers receive notice of the avail-
ability of the basic service tier required
under this section.
(6) Notice
The procedures prescribed by the Commis-
sion pursuant to paragraph (5)(A) shall require
a cable operator to provide 30 days’ advance
notice to a franchising authority of any in-
crease proposed in the price to be charged for
the basic service tier.
(7) Components of basic tier subject to rate
regulation
(A) Minimum contents
Each cable operator of a cable system
shall provide its subscribers a separately
available basic service tier to which sub-
scription is required for access to any other
tier of service. Such basic service tier shall,
at a minimum, consist of the following:
(i) All signals carried in fulfillment of
the requirements of sections 534 and 535 of
this title.
(ii) Any public, educational, and govern-
mental access programming required by
the franchise of the cable system to be
provided to subscribers.
(iii) Any signal of any television broad-
cast station that is provided by the cable
operator to any subscriber, except a signal
which is secondarily transmitted by a sat-
ellite carrier beyond the local service area
of such station.
(B) Permitted additions to basic tier
A cable operator may add additional video
programming signals or services to the basic
service tier. Any such additional signals or
services provided on the basic service tier
shall be provided to subscribers at rates de-
termined under the regulations prescribed
by the Commission under this subsection.
(8) Buy-through of other tiers prohibited
(A) Prohibition
A cable operator may not require the sub-
scription to any tier other than the basic
service tier required by paragraph (7) as a
condition of access to video programming of-
fered on a per channel or per program basis.
A cable operator may not discriminate be-
tween subscribers to the basic service tier
and other subscribers with regard to the
rates charged for video programming offered
on a per channel or per program basis.
(B) Exception; limitation
The prohibition in subparagraph (A) shall
not apply to a cable system that, by reason
of the lack of addressable converter boxes or
other technological limitations, does not
permit the operator to offer programming on
a per channel or per program basis in the
same manner required by subparagraph (A).
This subparagraph shall not be available to
any cable operator after—
(i) the technology utilized by the cable
system is modified or improved in a way
that eliminates such technological limita-
tion; or
(ii) 10 years after October 5, 1992, subject
to subparagraph (C).
(C) Waiver
If, in any proceeding initiated at the re-
quest of any cable operator, the Commission
determines that compliance with the re-
quirements of subparagraph (A) would re-
quire the cable operator to increase its
rates, the Commission may, to the extent
consistent with the public interest, grant
such cable operator a waiver from such re-
quirements for such specified period as the
Commission determines reasonable and ap-
propriate.
(c) Regulation of unreasonable rates
(1) Commission regulations
Within 180 days after October 5, 1992, the
Commission shall, by regulation, establish the
following:
(A) criteria prescribed in accordance with
paragraph (2) for identifying, in individual
cases, rates for cable programming services
that are unreasonable;
(B) fair and expeditious procedures for the
receipt, consideration, and resolution of
complaints from any franchising authority
(in accordance with paragraph (3)) alleging
that a rate for cable programming services
charged by a cable operator violates the cri-
teria prescribed under subparagraph (A),
which procedures shall include the minimum
showing that shall be required for a com-
plaint to obtain Commission consideration
and resolution of whether the rate in ques-
tion is unreasonable; and
(C) the procedures to be used to reduce
rates for cable programming services that
are determined by the Commission to be un-
reasonable and to refund such portion of the
rates or charges that were paid by sub-
scribers after the filing of the first com-
plaint filed with the franchising authority
under paragraph (3) and that are determined
to be unreasonable.
(2) Factors to be considered
In establishing the criteria for determining
in individual cases whether rates for cable pro-
gramming services are unreasonable under
paragraph (1)(A), the Commission shall con-
sider, among other factors—
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TITLE 47—TELECOMMUNICATIONS
§ 543
(A) the rates for similarly situated cable
systems offering comparable cable program-
ming services, taking into account similar-
ities in facilities, regulatory and govern-
mental costs, the number of subscribers, and
other relevant factors;
(B) the rates for cable systems, if any, that
are subject to effective competition;
(C) the history of the rates for cable pro-
gramming services of the system, including
the relationship of such rates to changes in
general consumer prices;
(D) the rates, as a whole, for all the cable
programming, cable equipment, and cable
services provided by the system, other than
programming provided on a per channel or
per program basis;
(E) capital and operating costs of the cable
system, including the quality and costs of
the customer service provided by the cable
system; and
(F) the revenues (if any) received by a
cable operator from advertising from pro-
gramming that is carried as part of the serv-
ice for which a rate is being established, and
changes in such revenues, or from other con-
sideration obtained in connection with the
cable programming services concerned.
(3) Review of rate changes
The Commission shall review any complaint
submitted by a franchising authority after
February 8, 1996, concerning an increase in
rates for cable programming services and issue
a final order within 90 days after it receives
such a complaint, unless the parties agree to
extend the period for such review. A fran-
chising authority may not file a complaint
under this paragraph unless, within 90 days
after such increase becomes effective it re-
ceives subscriber complaints.
(4) Sunset of upper tier rate regulation
This subsection shall not apply to cable pro-
gramming services provided after March 31,
1999.
(d) Uniform rate structure required
A cable operator shall have a rate structure,
for the provision of cable service, that is uni-
form throughout the geographic area in which
cable service is provided over its cable system.
This subsection does not apply to (1) a cable op-
erator with respect to the provision of cable
service over its cable system in any geographic
area in which the video programming services
offered by the operator in that area are subject
to effective competition, or (2) any video pro-
gramming offered on a per channel or per pro-
gram basis. Bulk discounts to multiple dwelling
units shall not be subject to this subsection, ex-
cept that a cable operator of a cable system that
is not subject to effective competition may not
charge predatory prices to a multiple dwelling
unit. Upon a prima facie showing by a complain-
ant that there are reasonable grounds to believe
that the discounted price is predatory, the cable
system shall have the burden of showing that its
discounted price is not predatory.
(e) Discrimination; services for the hearing im-
paired
Nothing in this subchapter shall be construed
as prohibiting any Federal agency, State, or a
franchising authority from—
(1) prohibiting discrimination among sub-
scribers and potential subscribers to cable
service, except that no Federal agency, State,
or franchising authority may prohibit a cable
operator from offering reasonable discounts to
senior citizens or other economically dis-
advantaged group discounts; or
(2) requiring and regulating the installation
or rental of equipment which facilitates the
reception of cable service by hearing impaired
individuals.
(f) Negative option billing prohibited
A cable operator shall not charge a subscriber
for any service or equipment that the subscriber
has not affirmatively requested by name. For
purposes of this subsection, a subscriber’s fail-
ure to refuse a cable operator’s proposal to pro-
vide such service or equipment shall not be
deemed to be an affirmative request for such
service or equipment.
(g) Collection of information
The Commission shall, by regulation, require
cable operators to file with the Commission or a
franchising authority, as appropriate, within
one year after October 5, 1992, and annually
thereafter, such financial information as may be
needed for purposes of administering and enforc-
ing this section.
(h) Prevention of evasions
Within 180 days after October 5, 1992, the Com-
mission shall, by regulation, establish stand-
ards, guidelines, and procedures to prevent eva-
sions, including evasions that result from
retiering, of the requirements of this section
and shall, thereafter, periodically review and re-
vise such standards, guidelines, and procedures.
(i) Small system burdens
In developing and prescribing regulations pur-
suant to this section, the Commission shall de-
sign such regulations to reduce the administra-
tive burdens and cost of compliance for cable
systems that have 1,000 or fewer subscribers.
(j) Rate regulation agreements
During the term of an agreement made before
July 1, 1990, by a franchising authority and a
cable operator providing for the regulation of
basic cable service rates, where there was not ef-
fective competition under Commission rules in
effect on that date, nothing in this section (or
the regulations thereunder) shall abridge the
ability of such franchising authority to regulate
rates in accordance with such an agreement.
(k) Reports on average prices
(1) In general
The Commission shall publish with its re-
port under section 163 of this title statistical
reports on the average rates for basic cable
service and other cable programming, and for
converter boxes, remote control units, and
other equipment of cable systems that the
Commission has found are subject to effective
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TITLE 47—TELECOMMUNICATIONS
§ 543
competition under subsection (a)(2) compared
with cable systems that the Commission has
found are not subject to such effective com-
petition.
(2) Inclusion in report
(A) In general
The Commission shall include in its report
under paragraph (1) the aggregate average
total amount paid by cable systems in com-
pensation under section 325 of this title.
(B) Form
The Commission shall publish information
under this paragraph in a manner substan-
tially similar to the way other comparable
information is published in such report.
(l) Definitions
As used in this section—
(1) The term ‘‘effective competition’’ means
that—
(A) fewer than 30 percent of the households
in the franchise area subscribe to the cable
service of a cable system;
(B) the franchise area is—
(i) served by at least two unaffiliated
multichannel video programming distribu-
tors each of which offers comparable video
programming to at least 50 percent of the
households in the franchise area; and
(ii) the number of households subscribing
to programming services offered by multi-
channel video programming distributors
other than the largest multichannel video
programming distributor exceeds 15 per-
cent of the households in the franchise
area;
(C) a multichannel video programming dis-
tributor operated by the franchising author-
ity for that franchise area offers video pro-
gramming to at least 50 percent of the
households in that franchise area; or
(D) a local exchange carrier or its affiliate
(or any multichannel video programming
distributor using the facilities of such car-
rier or its affiliate) offers video program-
ming services directly to subscribers by any
means (other than direct-to-home satellite
services) in the franchise area of an unaffili-
ated cable operator which is providing cable
service in that franchise area, but only if the
video programming services so offered in
that area are comparable to the video pro-
gramming services provided by the unaffili-
ated cable operator in that area.
(2) The term ‘‘cable programming service’’
means any video programming provided over a
cable system, regardless of service tier, includ-
ing installation or rental of equipment used
for the receipt of such video programming,
other than (A) video programming carried on
the basic service tier, and (B) video program-
ming offered on a per channel or per program
basis.
(m) Special rules for small companies
(1) In general
Subsections (a), (b), and (c) do not apply to
a small cable operator with respect to—
(A) cable programming services, or
(B) a basic service tier that was the only
service tier subject to regulation as of De-
cember 31, 1994,
in any franchise area in which that operator
services 50,000 or fewer subscribers.
(2) ‘‘Small cable operator’’ defined
For purposes of this subsection, the term
‘‘small cable operator’’ means a cable operator
that, directly or through an affiliate, serves in
the aggregate fewer than 1 percent of all sub-
scribers in the United States and is not affili-
ated with any entity or entities whose gross
annual revenues in the aggregate exceed
$250,000,000.
(n) Treatment of prior year losses
Notwithstanding any other provision of this
section or of section 532 of this title, losses asso-
ciated with a cable system (including losses as-
sociated with the grant or award of a franchise)
that were incurred prior to September 4, 1992,
with respect to a cable system that is owned and
operated by the original franchisee of such sys-
tem shall not be disallowed, in whole or in part,
in the determination of whether the rates for
any tier of service or any type of equipment
that is subject to regulation under this section
are lawful.
(o) Streamlined petition process for small cable
operators
(1) In general
Not later than 180 days after December 4,
2014, the Commission shall complete a rule-
making to establish a streamlined process for
filing of an effective competition petition pur-
suant to this section for small cable operators,
particularly those who serve primarily rural
areas.
(2) Construction
Nothing in this subsection shall be con-
strued to have any effect on the duty of a
small cable operator to prove the existence of
effective competition under this section.
(3) Definition of small cable operator
In this subsection, the term ‘‘small cable op-
erator’’ has the meaning given the term in
subsection (m)(2).
(June 19, 1934, ch. 652, title VI, § 623, as added
Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2788;
amended Pub. L. 102–385, § 3(a), Oct. 5, 1992, 106
Stat. 1464; Pub. L. 104–104, title III, § 301(b), (c),
(j), (k)(1), Feb. 8, 1996, 110 Stat. 114, 116, 118; Pub.
L. 113–200, title I, §§ 110, 111, Dec. 4, 2014, 128 Stat.
2065, 2066; Pub. L. 115–141, div. P, title IV, § 402(e),
Mar. 23, 2018, 132 Stat. 1089.)
Editorial Notes
AMENDMENTS
2018—Subsec. (k)(1). Pub. L. 115–141, § 402(e)(1), sub-
stituted ‘‘publish with its report under section 163 of
this title’’ for ‘‘annually publish’’.
Subsec. (k)(2). Pub. L. 115–141, § 402(e)(2), struck out
‘‘annual’’ before ‘‘report’’ in heading.
2014—Subsec. (k). Pub. L. 113–200, § 110, amended sub-
sec. (k) generally. Prior to amendment, text read as
follows: ‘‘The Commission shall annually publish sta-
tistical reports on the average rates for basic cable
Page 292
TITLE 47—TELECOMMUNICATIONS
§ 544
service and other cable programming, and for converter
boxes, remote control units, and other equipment, of—
‘‘(1) cable systems that the Commission has found
are subject to effective competition under subsection
(a)(2) of this section, compared with
‘‘(2) cable systems that the Commission has found
are not subject to such effective competition.’’
Subsec. (o). Pub. L. 113–200, § 111, added subsec. (o).
1996—Subsec. (a)(7). Pub. L. 104–104, § 301(j), added par.
(7).
Subsec. (c)(1)(B). Pub. L. 104–104, § 301(b)(1)(A), sub-
stituted ‘‘franchising authority (in accordance with
paragraph (3))’’ for ‘‘subscriber, franchising authority,
or other relevant State or local government entity’’.
Subsec. (c)(1)(C). Pub. L. 104–104, § 301(b)(1)(B), sub-
stituted ‘‘the first complaint filed with the franchising
authority under paragraph (3)’’ for ‘‘such complaint’’.
Subsec. (c)(3), (4). Pub. L. 104–104, § 301(b)(1)(C), added
pars. (3) and (4) and struck out heading and text of
former par. (3). Text read as follows: ‘‘Except during
the 180-day period following the effective date of the
regulations prescribed by the Commission under para-
graph (1), the procedures established under subpara-
graph (B) of such paragraph shall be available only
with respect to complaints filed within a reasonable pe-
riod of time following a change in rates that is initi-
ated after that effective date, including a change in
rates that results from a change in that system’s serv-
ice tiers.’’
Subsec. (d). Pub. L. 104–104, § 301(b)(2), inserted at end
‘‘This subsection does not apply to (1) a cable operator
with respect to the provision of cable service over its
cable system in any geographic area in which the video
programming services offered by the operator in that
area are subject to effective competition, or (2) any
video programming offered on a per channel or per pro-
gram basis. Bulk discounts to multiple dwelling units
shall not be subject to this subsection, except that a
cable operator of a cable system that is not subject to
effective competition may not charge predatory prices
to a multiple dwelling unit. Upon a prima facie showing
by a complainant that there are reasonable grounds to
believe that the discounted price is predatory, the
cable system shall have the burden of showing that its
discounted price is not predatory.’’
Subsec. (l)(1)(D). Pub. L. 104–104, § 301(b)(3), added sub-
par. (D).
Subsec. (m). Pub. L. 104–104, § 301(c), added subsec.
(m).
Subsec. (n). Pub. L. 104–104, § 301(k)(1), added subsec.
(n).
1992—Pub. L. 102–385 amended section generally, sub-
stituting present provisions for former provisions
which related in subsec. (a) to limitation on regulatory
power of Federal agencies, States, or franchising au-
thorities, in subsec. (b) to promulgation, scope, con-
tent, periodic review, and amendment of regulations, in
subsec. (c) to regulation by franchising authority dur-
ing initial 2-year period, in subsec. (d) to automatic
granting of rate increase requests upon agency inaction
within 180-day period, in subsec. (e) to additional in-
creases in rates and to reduction by amount of increase
under franchise provisions, in subsec. (f) to non-
discrimination and facilitation of reception by hearing-
impaired individuals, in subsec. (g) to continued effec-
tiveness of limitation or the preemption of regulation
under prior State law, and in subsec. (h) to reports and
recommendations to Congress.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1996 AMENDMENT
Pub. L. 104–104, title III, § 301(k)(2), Feb. 8, 1996, 110
Stat. 118, provided that: ‘‘The amendment made by
paragraph (1) [amending this section] shall take effect
on the date of enactment of this Act [Feb. 8, 1996] and
shall be applicable to any rate proposal filed on or after
September 4, 1993, upon which no final action has been
taken by December 1, 1995.’’
EFFECTIVE DATE OF 1992 AMENDMENT
Pub. L. 102–385, § 3(b), Oct. 5, 1992, 106 Stat. 1471, pro-
vided that: ‘‘The amendment made by subsection (a)
[amending this section] shall take effect 180 days after
the date of enactment of this Act [Oct. 5, 1992], except
that the authority of the Federal Communications
Commission to prescribe regulations is effective on
such date of enactment.’’
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.
RESTORATION, RETIERMENT AND REPRICING OF SERVICE
PREVIOUSLY ELIMINATED, RETIERED, OR REPRICED
Pub. L. 98–549, § 9(b), Oct. 30, 1984, 98 Stat. 2806, pro-
vided that: ‘‘Nothing in section 623 or 624 of the Com-
munications Act of 1934 [sections 543 and 544 of this
title], as added by this Act, shall be construed to allow
a franchising authority, or a State or any political sub-
division of a State, to require a cable operator to re-
store, retier, or reprice any cable service which was
lawfully eliminated, retiered, or repriced as of Sep-
tember 26, 1984.’’
§ 544. Regulation of services, facilities, and
equipment
(a) Regulation by franchising authority
Any franchising authority may not regulate
the services, facilities, and equipment provided
by a cable operator except to the extent con-
sistent with this subchapter.
(b) Requests for proposals; establishment and en-
forcement of requirements
In the case of any franchise granted after the
effective date of this subchapter, the franchising
authority, to the extent related to the establish-
ment or operation of a cable system—
(1) in its request for proposals for a franchise
(including requests for renewal proposals, sub-
ject to section 546 of this title), may establish
requirements for facilities and equipment, but
may not, except as provided in subsection (h),
establish requirements for video programming
or other information services; and
(2) subject to section 545 of this title, may
enforce any requirements contained within
the franchise—
(A) for facilities and equipment; and
(B) for broad categories of video program-
ming or other services.
(c) Enforcement authority respecting franchises
effective under prior law
In the case of any franchise in effect on the ef-
fective date of this subchapter, the franchising
authority may, subject to section 545 of this
title, enforce requirements contained within the
franchise for the provision of services, facilities,
and equipment, whether or not related to the es-
tablishment or operation of a cable system.
(d) Cable service unprotected by Constitution;
blockage of premium channel upon request
(1) Nothing in this subchapter shall be con-
strued as prohibiting a franchising authority
and a cable operator from specifying, in a fran-
chise or renewal thereof, that certain cable serv-
ices shall not be provided or shall be provided
subject to conditions, if such cable services are
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Competition preference; local and Federal regulation**
(1) **In general** — No Federal agency or State may regulate the rates for the provision of cable service except to the extent provided under this section and [section 532 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title47-section532&num=0&edition=prelim). Any franchising authority may regulate the rates for the provision of cable service, or any other communications service provided over a cable system to cable subscribers, but only to the extent provided under this section. No Federal agency, State, or franchising authority may regulate the rates for cable service of a cable system that is owned or operated by a local government or franchising authority within whose jurisdiction that cable system is located and that is the only cable system located within such jurisdiction.
(2) **Preference for competition** — If the Commission finds that a cable system is subject to effective competition, the rates for the provision of cable service by such system shall not be subject to regulation by the Commission or by a State or franchising authority under this section. If the Commission finds that a cable system is not subject to effective competition—
(A) the rates for the provision of basic cable service shall be subject to regulation by a franchising authority, or by the Commission if the Commission exercises jurisdiction pursuant to paragraph (6), in accordance with the regulations prescribed by the Commission under subsection (b); and
(B) the rates for cable programming services shall be subject to regulation by the Commission under subsection (c).
(3) **Qualification of franchising authority** — A franchising authority that seeks to exercise the regulatory jurisdiction pe
Source: Supplied U.S. Code snapshot — release unconfirmed · 47 U.S.C. § 543
Stored review status: release_metadata_unconfirmed. Same stored citation; legal effect and authority still require review.