H.R. 4927 — CABLE Competition Act

This section revises Section 627 of the Communications Act of 1934 (47 U.S.C. 547), governing conditions of sale or transfer of cable systems, by (1) eliminating the prior requirement for fair market value (as a going concern with no franchise value allocated) upon denial of franchise renewal or equitable price upon revocation for cause, and instead requiring fair market value solely if a franchise is revoked under Section 626(b)(2)(B) (i.e., failure to substantially comply after adequate notice and opportunity to cure); and (2) prohibiting franchising authorities from precluding a cable operator from transferring a franchise to a non-original grantee who accepts all existing terms, while permitting a 15-day prior written notice requirement and broadly defining transfers to include mergers, sales, assignments, restructurings, or changes in control. The amendments take effect 6 months after enactment and apply to franchises granted on or after that date, or to pre-existing franchises that remain in effect or under which the operator continues to perform.