47 U.S.C. § 544 — Regulation of services, facilities, and

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 Page 293 TITLE 47—TELECOMMUNICATIONS § 544 1 So in original. obscene or are otherwise unprotected by the Constitution of the United States. (2) In order to restrict the viewing of of of 1 programming which is obscene or indecent, upon the request of a subscriber, a cable operator shall provide (by sale or lease) a device by which the subscriber can prohibit viewing of a par- ticular cable service during periods selected by that subscriber. (3)(A) If a cable operator provides a premium channel without charge to cable subscribers who do not subscribe to such premium channel, the cable operator shall, not later than 30 days be- fore such premium channel is provided without charge— (i) notify all cable subscribers that the cable operator plans to provide a premium channel without charge; (ii) notify all cable subscribers when the cable operator plans to offer a premium chan- nel without charge; (iii) notify all cable subscribers that they have a right to request that the channel car- rying the premium channel be blocked; and (iv) block the channel carrying the premium channel upon the request of a subscriber. (B) For the purpose of this section, the term ‘‘premium channel’’ shall mean any pay service offered on a per channel or per program basis, which offers movies rated by the Motion Picture Association of America as X, NC–17, or R. (e) Technical standards Within one year after October 5, 1992, the Com- mission shall prescribe regulations which estab- lish minimum technical standards relating to cable systems’ technical operation and signal quality. The Commission shall update such standards periodically to reflect improvements in technology. No State or franchising authority may prohibit, condition, or restrict a cable sys- tem’s use of any type of subscriber equipment or any transmission technology. (f) Limitation on regulatory powers of Federal agencies, States, or franchising authorities; exceptions (1) Any Federal agency, State, or franchising authority may not impose requirements regard- ing the provision or content of cable services, except as expressly provided in this subchapter. (2) Paragraph (1) shall not apply to— (A) any rule, regulation, or order issued under any Federal law, as such rule, regula- tion, or order (i) was in effect on September 21, 1983, or (ii) may be amended after such date if the rule, regulation, or order as amended is not inconsistent with the express provisions of this subchapter; and (B) any rule, regulation, or order under title 17. (g) Access to emergency information Notwithstanding any such rule, regulation, or order, each cable operator shall comply with such standards as the Commission shall pre- scribe to ensure that viewers of video program- ming on cable systems are afforded the same emergency information as is afforded by the emergency broadcasting system pursuant to Commission regulations in subpart G of part 73, title 47, Code of Federal Regulations. (h) Notice of changes in and comments on serv- ices A franchising authority may require a cable operator to do any one or more of the following: (1) Provide 30 days’ advance written notice of any change in channel assignment or in the video programming service provided over any such channel. (2) Inform subscribers, via written notice, that comments on programming and channel position changes are being recorded by a des- ignated office of the franchising authority. (i) Disposition of cable upon termination of serv- ice Within 120 days after October 5, 1992, the Com- mission shall prescribe rules concerning the dis- position, after a subscriber to a cable system terminates service, of any cable installed by the cable operator within the premises of such sub- scriber. (June 19, 1934, ch. 652, title VI, § 624, as added Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2789; amended Pub. L. 102–385, §§ 15, 16, Oct. 5, 1992, 106 Stat. 1490; Pub. L. 103–414, title III, §§ 303(a)(23), 304(a)(12), Oct. 25, 1994, 108 Stat. 4295, 4297; Pub. L. 104–104, title III, § 301(e), Feb. 8, 1996, 110 Stat. 116.) Editorial Notes REFERENCES IN TEXT For ‘‘the effective date of this subchapter’’, referred to in subsecs. (b) and (c), as 60 days after Oct. 30, 1984, except where otherwise expressly provided, see section 9(a) of Pub. L. 98–549, set out as an Effective Date note under section 521 of this title. AMENDMENTS 1996—Subsec. (e). Pub. L. 104–104 substituted ‘‘No State or franchising authority may prohibit, condition, or restrict a cable system’s use of any type of sub- scriber equipment or any transmission technology.’’ for ‘‘A franchising authority may require as part of a fran- chise (including a modification, renewal, or transfer thereof) provisions for the enforcement of the stand- ards prescribed under this subsection. A franchising au- thority may apply to the Commission for a waiver to impose standards that are more stringent than the standards prescribed by the Commission under this sub- section.’’ 1994—Subsec. (d)(2). Pub. L. 103–414, § 304(a)(12), struck out designation ‘‘(A)’’, inserted ‘‘of’’ after ‘‘restrict the viewing’’, and struck out subpar. (B) which read as fol- lows: ‘‘Subparagraph (A) shall take effect 180 days after the effective date of this subchapter.’’ Pub. L. 103–414, § 303(a)(23), inserted ‘‘of’’ after ‘‘re- strict the viewing’’ in subpar. (A). 1992—Subsec. (b)(1). Pub. L. 102–385, § 16(c)(1), inserted ‘‘, except as provided in subsection (h),’’ after ‘‘but may not’’. Subsec. (d)(3). Pub. L. 102–385, § 15, added par. (3). Subsec. (e). Pub. L. 102–385, § 16(a), amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: ‘‘The Commission may establish technical standards relating to the facilities and equipment of cable systems which a franchising authority may re- quire in the franchise.’’ Subsec. (g). Pub. L. 102–385, § 16(b), added subsec. (g). Subsec. (h). Pub. L. 102–385, § 16(c)(2), added subsec. (h). Page 294 TITLE 47—TELECOMMUNICATIONS § 544a Subsec. (i). Pub. L. 102–385, § 16(d), added subsec. (i). 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. RESTORATION, RETIERMENT AND REPRICING OF SERVICE PREVIOUSLY ELIMINATED, RETIERED, OR REPRICED Section not to be construed to allow a franchising au- thority, or a State or political subdivision thereof, to require a cable operator to restore, retier or reprice cable service previously eliminated, retiered, or re- priced as of Sept. 26, 1984, see section 9(b) of Pub. L. 98–549, set out as a note under section 543 of this title. § 544a. Consumer electronics equipment compat- ibility (a) Findings The Congress finds that— (1) new and recent models of television re- ceivers and video cassette recorders often con- tain premium features and functions that are disabled or inhibited because of cable scram- bling, encoding, or encryption technologies and devices, including converter boxes and re- mote control devices required by cable opera- tors to receive programming; (2) if these problems are allowed to persist, consumers will be less likely to purchase, and electronics equipment manufacturers will be less likely to develop, manufacture, or offer for sale, television receivers and video cassette recorders with new and innovative features and functions; (3) cable operators should use technologies that will prevent signal thefts while permit- ting consumers to benefit from such features and functions in such receivers and recorders; and (4) compatibility among televisions, video cassette recorders, and cable systems can be assured with narrow technical standards that mandate a minimum degree of common design and operation, leaving all features, functions, protocols, and other product and service op- tions for selection through open competition in the market. (b) Compatible interfaces (1) Regulations The Commission shall issue such regulations as are necessary to assure compatibility be- tween televisions and video cassette recorders and cable systems, consistent with the need to prevent theft of cable service, so that cable subscribers will be able to enjoy the full ben- efit of both the programming available on cable systems and the functions available on their televisions and video cassette recorders. (2) Scrambling and encryption In issuing the regulations referred to in paragraph (1), the Commission shall determine whether and, if so, under what circumstances to permit cable systems to scramble or encrypt signals or to restrict cable systems in the manner in which they encrypt or scramble signals, except that the Commission shall not limit the use of scrambling or encryption technology where the use of such technology does not interfere with the functions of sub- scribers’ television receivers or video cassette recorders. (c) Rulemaking requirements (1) Factors to be considered In prescribing the regulations required by this section, the Commission shall consider— (A) the need to maximize open competition in the market for all features, functions, protocols, and other product and service op- tions of converter boxes and other cable con- verters unrelated to the descrambling or decryption of cable television signals; (B) the costs and benefits to consumers of imposing compatibility requirements on cable operators and television manufactur- ers in a manner that, while providing effec- tive protection against theft or unauthorized reception of cable service, will minimize in- terference with or nullification of the spe- cial functions of subscribers’ television re- ceivers or video cassette recorders, including functions that permit the subscriber— (i) to watch a program on one channel while simultaneously using a video cas- sette recorder to tape a program on an- other channel; (ii) to use a video cassette recorder to tape two consecutive programs that appear on different channels; and (iii) to use advanced television picture generation and display features; and (C) the need for cable operators to protect the integrity of the signals transmitted by the cable operator against theft or to pro- tect such signals against unauthorized re- ception. (2) Regulations required The regulations prescribed by the Commis- sion under this section shall include such reg- ulations as are necessary— (A) to specify the technical requirements with which a television receiver or video cassette recorder must comply in order to be sold as ‘‘cable compatible’’ or ‘‘cable ready’’; (B) to require cable operators offering channels whose reception requires a con- verter box— (i) to notify subscribers that they may be unable to benefit from the special func- tions of their television receivers and video cassette recorders, including func- tions that permit subscribers— (I) to watch a program on one channel while simultaneously using a video cas- sette recorder to tape a program on an- other channel; (II) to use a video cassette recorder to tape two consecutive programs that ap- pear on different channels; and (III) to use advanced television picture generation and display features; and