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U.S. Code as of:
01/19/04
Section 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.
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