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U.S. Code as of:
01/19/04
Section 541. General franchise requirements
(a) Authority to award franchises; public rights-of-way and
easements; equal access to service; time for provision of
service; assurances
(1) A franchising authority may award, in accordance with the
provisions of this subchapter, 1 or more franchises within its
jurisdiction; except that a franchising authority may not grant an
exclusive franchise and may not unreasonably refuse to award an
additional competitive franchise. Any applicant whose application
for a second franchise has been denied by a final decision of the
franchising authority may appeal such final decision pursuant to
the provisions of section 555 of this title for failure to comply
with this subsection.
(2) Any franchise shall be construed to authorize the
construction of a cable system over public rights-of-way, and
through easements, which is within the area to be served by the
cable system and which have been dedicated for compatible uses,
except that in using such easements the cable operator shall ensure
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(A) that the safety, functioning, and appearance of the
property and the convenience and safety of other persons not be
adversely affected by the installation or construction of
facilities necessary for a cable system;
(B) that the cost of the installation, construction, operation,
or removal of such facilities be borne by the cable operator or
subscriber, or a combination of both; and
(C) that the owner of the property be justly compensated by the
cable operator for any damages caused by the installation,
construction, operation, or removal of such facilities by the
cable operator.
(3) In awarding a franchise or franchises, a franchising
authority shall assure that access to cable service is not denied
to any group of potential residential cable subscribers because of
the income of the residents of the local area in which such group
resides.
(4) In awarding a franchise, the franchising authority -
(A) shall allow the applicant's cable system a reasonable
period of time to become capable of providing cable service to
all households in the franchise area;
(B) may require adequate assurance that the cable operator will
provide adequate public, educational, and governmental access
channel capacity, facilities, or financial support; and
(C) may require adequate assurance that the cable operator has
the financial, technical, or legal qualifications to provide
cable service.
(b) No cable service without franchise; exception under prior law
(1) Except to the extent provided in paragraph (2) and subsection
(f) of this section, a cable operator may not provide cable service
without a franchise.
(2) Paragraph (1) shall not require any person lawfully providing
cable service without a franchise on July 1, 1984, to obtain a
franchise unless the franchising authority so requires.
(3)(A) If a cable operator or affiliate thereof is engaged in the
provision of telecommunications services -
(i) such cable operator or affiliate shall not be required to
obtain a franchise under this subchapter for the provision of
telecommunications services; and
(ii) the provisions of this subchapter shall not apply to such
cable operator or affiliate for the provision of
telecommunications services.
(B) A franchising authority may not impose any requirement under
this subchapter that has the purpose or effect of prohibiting,
limiting, restricting, or conditioning the provision of a
telecommunications service by a cable operator or an affiliate
thereof.
(C) A franchising authority may not order a cable operator or
affiliate thereof -
(i) to discontinue the provision of a telecommunications
service, or
(ii) to discontinue the operation of a cable system, to the
extent such cable system is used for the provision of a
telecommunications service, by reason of the failure of such
cable operator or affiliate thereof to obtain a franchise or
franchise renewal under this subchapter with respect to the
provision of such telecommunications service.
(D) Except as otherwise permitted by sections 531 and 532 of this
title, a franchising authority may not require a cable operator to
provide any telecommunications service or facilities, other than
institutional networks, as a condition of the initial grant of a
franchise, a franchise renewal, or a transfer of a franchise.
(c) Status of cable system as common carrier or utility
Any cable system shall not be subject to regulation as a common
carrier or utility by reason of providing any cable service.
(d) Informational tariffs; regulation by States; "State" defined
(1) A State or the Commission may require the filing of
informational tariffs for any intrastate communications service
provided by a cable system, other than cable service, that would be
subject to regulation by the Commission or any State if offered by
a common carrier subject, in whole or in part, to subchapter II of
this chapter. Such informational tariffs shall specify the rates,
terms, and conditions for the provision of such service, including
whether it is made available to all subscribers generally, and
shall take effect on the date specified therein.
(2) Nothing in this subchapter shall be construed to affect the
authority of any State to regulate any cable operator to the extent
that such operator provides any communication service other than
cable service, whether offered on a common carrier or private
contract basis.
(3) For purposes of this subsection, the term "State" has the
meaning given it in section 153 of this title.
(e) State regulation of facilities serving subscribers in multiple
dwelling units
Nothing in this subchapter shall be construed to affect the
authority of any State to license or otherwise regulate any
facility or combination of facilities which serves only subscribers
in one or more multiple unit dwellings under common ownership,
control, or management and which does not use any public
right-of-way.
(f) Local or municipal authority as multichannel video programming
distributor
No provision of this chapter shall be construed to -
(1) prohibit a local or municipal authority that is also, or is
affiliated with, a franchising authority from operating as a
multichannel video programming distributor in the franchise area,
notwithstanding the granting of one or more franchises by such
franchising authority; or
(2) require such local or municipal authority to secure a
franchise to operate as a multichannel video programming
distributor.
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