
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 47USC546]

 
          TITLE 47--TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS
 
                 CHAPTER 5--WIRE OR RADIO COMMUNICATION
 
                  SUBCHAPTER V-A--CABLE COMMUNICATIONS
 
                  Part III--Franchising and Regulation
 
Sec. 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 begins with the 36th month before the franchise 
expiration, commence a proceeding which affords the public in the 
franchise area appropriate notice and participation for the purpose of 
(A) identifying the future cable-related community 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 requesting 
the commencement of such a proceeding, the franchising authority shall 
commence such a proceeding not later than 6 months after the date such 
notice is submitted.
    (2) The cable operator may not invoke the renewal procedures set 
forth in subsections (b) through (g) of this section 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 subsection (a) of this 
section, a cable operator seeking renewal of a franchise may, on its own 
initiative or at the request of a franchising authority, submit a 
proposal for renewal.
    (2) Subject to section 544 of this title, any such proposal shall 
contain such material as the franchising authority may require, 
including proposals 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 assessment of nonrenewal; 
        administrative review; issues; notice and opportunity for 
        hearing; transcript; written decision

    (1) Upon submittal by a cable operator of a proposal to the 
franchising authority for the renewal of a franchise pursuant to 
subsection (b) of this section, 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 pursuant to subsection (b) of this section, renew the franchise 
or, issue a preliminary assessment that the franchise should not be 
renewed and, at the request of the operator or on its own initiative, 
commence an administrative proceeding, after providing 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 existing franchise and with applicable law;
        (B) the quality of the operator's service, including 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, facilities, and equipment as set forth in 
    the operator'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 
authority, or its designee, shall be afforded fair opportunity for full 
participation, including the right to introduce evidence (including 
evidence related to issues raised in the proceeding under subsection (a) 
of this section), to require the production of evidence, and to question 
witnesses. A transcript shall be made of any such proceeding.
    (3) At the completion of a proceeding under this subsection, the 
franchising authority shall issue a written decision granting or denying 
the proposal for renewal based upon the record of such proceeding, and 
transmit a copy of such decision to the cable operator. Such decision 
shall state the reasons therefor.

(d) Basis for denial

    Any denial of a proposal for renewal that has been submitted in 
compliance with subsection (b) of this section shall be based on one or 
more adverse findings made with respect to the factors described in 
subparagraphs (A) through (D) of subsection (c)(1) of this section, 
pursuant to the record of the proceeding under subsection (c) of this 
section. A franchising authority may not base a denial of renewal on a 
failure to substantially comply with the material terms of the franchise 
under subsection (c)(1)(A) of this section or on events considered under 
subsection (c)(1)(B) of this section in any case in which a violation of 
the franchise or the events considered under subsection (c)(1)(B) of 
this section occur after the effective date of this subchapter unless 
the franchising authority has provided the operator with notice and the 
opportunity to cure, or in any case in which it is documented that the 
franchising authority has waived its right to object, or the cable 
operator gives written notice of a failure or inability to cure and the 
franchising authority fails to object within a reasonable time after 
receipt of such notice.

(e) Judicial review; grounds for relief

    (1) Any cable operator whose proposal for renewal has been denied by 
a final decision of a franchising authority made pursuant to this 
section, or has been adversely affected by a failure of the franchising 
authority to act in accordance with the procedural requirements of this 
section, may appeal such final decision or failure pursuant to the 
provisions of section 555 of this title.
    (2) The court shall grant appropriate relief if the court finds 
that--
        (A) any action of the franchising authority, other than harmless 
    error, is not in compliance with the procedural requirements of this 
    section; or
        (B) in the event of a final decision of the franchising 
    authority denying the renewal proposal, the operator has 
    demonstrated that the adverse finding of the franchising authority 
    with respect to each of the factors described in subparagraphs (A) 
    through (D) of subsection (c)(1) of this section on which the denial 
    is based is not supported by a preponderance of the evidence, based 
    on the record of the proceeding conducted under subsection (c) of 
    this section.

(f) Finality of administrative decision

    Any decision of a franchising authority on a proposal for renewal 
shall not be considered final unless all administrative review by the 
State has occurred or the opportunity therefor has lapsed.

(g) ``Franchise expiration'' defined

    For purposes of this section, the term ``franchise expiration'' 
means the date of the expiration of the term of the franchise, as 
provided under the franchise, as it was in effect on October 30, 1984.

(h) Alternative renewal procedures

    Notwithstanding the provisions of subsections (a) through (g) of 
this section, a cable operator may submit a proposal for the renewal of 
a franchise pursuant to this subsection at any time, and a franchising 
authority may, after affording the public adequate notice and 
opportunity for comment, grant or deny such proposal at any time 
(including after proceedings pursuant to this section have commenced). 
The provisions of subsections (a) through (g) of this section shall not 
apply to a decision to grant or deny a proposal under this subsection. 
The denial of a renewal pursuant to this subsection shall not affect 
action on a renewal proposal that is submitted in accordance with 
subsections (a) through (g) of this section.

(i) Effect of renewal procedures upon action to revoke franchise for 
        cause

    Notwithstanding the provisions of subsections (a) through (h) of 
this section, any lawful action to revoke a cable operator's franchise 
for cause shall not be negated by the subsequent initiation of renewal 
proceedings by the cable operator under this section.

(June 19, 1934, ch. 652, title VI, Sec. 626, as added Pub. L. 98-549, 
Sec. 2, Oct. 30, 1984, 98 Stat. 2791; amended Pub. L. 102-385, Sec. 18, 
Oct. 5, 1992, 106 Stat. 1493.)

                       References in Text

    For ``the effective date of this subchapter'', referred to in 
subsec. (d), 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

    1992--Subsec. (a). Pub. L. 102-385, Sec. 18(a), amended subsec. (a) 
generally. Prior to amendment, subsec. (a) read as follows: ``During the 
6-month period which begins with the 36th month before the franchise 
expiration, the franchising authority may on its own initiative, and 
shall at the request of the cable operator, commence proceedings which 
afford the public in the franchise area appropriate notice and 
participation for the purpose of--
        ``(1) identifying the future cable-related community needs and 
    interests; and
        ``(2) reviewing the performance of the cable operator under the 
    franchise during the then current franchise term.''
    Subsec. (c)(1). Pub. L. 102-385, Sec. 18(b), inserted ``pursuant to 
subsection (b) of this section'' after ``renewal of a franchise'' and 
substituted ``date of the submission of the cable operator's proposal 
pursuant to subsection (b) of this section'' for ``completion of any 
proceedings under subsection (a) of this section''.
    Subsec. (c)(1)(B). Pub. L. 102-385, Sec. 18(c), substituted ``mix or 
quality'' for ``mix, quality, or level''.
    Subsec. (d). Pub. L. 102-385, Sec. 18(d), inserted ``that has been 
submitted in compliance with subsection (b) of this section'' after 
``Any denial of a proposal for renewal'' and substituted ``or the cable 
operator gives written notice of a failure or inability to cure and the 
franchising authority fails to object within a reasonable time after 
receipt of such notice'' for ``or has effectively acquiesced''.
    Subsec. (e)(2)(A). Pub. L. 102-385, Sec. 18(e), inserted ``, other 
than harmless error,'' after ``franchising authority''.
    Subsec. (i). Pub. L. 102-385, Sec. 18(f), added subsec. (i).


                    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.

                  Section Referred to in Other Sections

    This section is referred to in sections 522, 531, 532, 544, 555 of 
this title.
