---
kind: "section"
citation: "47 U.S.C. § 545"
title: "47"
title_heading: "Telecommunications"
number: "545"
heading: "Modification of franchise obligations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/47/545"
units:
  - "Chapter 5 — Wire or Radio Communication"
  - "Subchapter V–A — Cable Communications"
  - "Part III — Franchising and Regulation"
---

# §545. Modification of franchise obligations

- (a) **Grounds for modification by franchising authority; public proceeding; time of decision—**
  - (1) During the period a [franchise](/usc/47/522.md?p=9) is in effect, the [cable operator](/usc/47/522.md?p=5) may obtain from the [franchising authority](/usc/47/522.md?p=10) modifications of the requirements in such [franchise](/usc/47/522.md?p=9)—
    - (A) in the case of any such requirement for facilities or equipment, including [public, educational, or governmental access facilities](/usc/47/522.md?p=16) or equipment, if the [cable operator](/usc/47/522.md?p=5) demonstrates that (i) it is commercially impracticable for the [operator](/usc/47/153.md?p=38-A) to comply with such requirement, and (ii) the proposal by the [cable operator](/usc/47/522.md?p=5) for modification of such requirement is appropriate because of commercial impracticability; or
    - (B) in the case of any such requirement for services, if the [cable operator](/usc/47/522.md?p=5) demonstrates that the mix, quality, and level of services required by the [franchise](/usc/47/522.md?p=9) at the time it was granted will be maintained after such modification.
  - (2) Any final decision by a [franchising authority](/usc/47/522.md?p=10) under this subsection shall be made in a public proceeding. Such decision shall be made within 120 days after receipt of such request by the [franchising authority](/usc/47/522.md?p=10), unless such 120 day period is extended by mutual agreement of the [cable operator](/usc/47/522.md?p=5) and the [franchising authority](/usc/47/522.md?p=10).
- (b) **Judicial proceedings; grounds for modification by court—**
  - (1) Any [cable operator](/usc/47/522.md?p=5) whose request for modification under [subsection (a)](#a) has been denied by a final decision of a [franchising authority](/usc/47/522.md?p=10) may obtain modification of such [franchise](/usc/47/522.md?p=9) requirements pursuant to the provisions of [section 555 of this title](/usc/47/555.md).
  - (2) In the case of any proposed modification of a requirement for facilities or equipment, the court shall grant such modification only if the [cable operator](/usc/47/522.md?p=5) demonstrates to the court that—
    - (A) it is commercially impracticable for the [operator](/usc/47/153.md?p=38-A) to comply with such requirement; and
    - (B) the terms of the modification requested are appropriate because of commercial impracticability.
  - (3) In the case of any proposed modification of a requirement for services, the court shall grant such modification only if the [cable operator](/usc/47/522.md?p=5) demonstrates to the court that the mix, quality, and level of services required by the [franchise](/usc/47/522.md?p=9) at the time it was granted will be maintained after such modification.
- (c) **Rearrangement, replacement, or removal of service—** Notwithstanding subsections [(a)](#a) and [(b)](#b), a [cable operator](/usc/47/522.md?p=5) may, upon 30 days’ advance notice to the [franchising authority](/usc/47/522.md?p=10), rearrange, replace, or remove a particular [cable service](/usc/47/522.md?p=6) required by the [franchise](/usc/47/522.md?p=9) if—
  - (1) such service is no longer available to the [operator](/usc/47/153.md?p=38-A); or
  - (2) such service is available to the [operator](/usc/47/153.md?p=38-A) only upon the payment of a royalty required under [section 801(b)(2) of title 17](/usc/17/801.md?p=b-2), which the [cable operator](/usc/47/522.md?p=5) can document—
    - (A) is substantially in excess of the amount of such payment required on the date of the [operator](/usc/47/153.md?p=38-A)’s offer to provide such service, and
    - (B) has not been specifically compensated for through a rate increase or other adjustment.
- (d) **Rearrangement of particular services from one service tier to another or other offering of service—** Notwithstanding subsections [(a)](#a) and [(b)](#b), a [cable operator](/usc/47/522.md?p=5) may take such actions to rearrange a particular service from one [service tier](/usc/47/522.md?p=17) to another, or otherwise offer the service, if the rates for all of the [service tiers](/usc/47/522.md?p=17) involved in such actions are not subject to regulation under [section 543 of this title](/usc/47/543.md).
- (e) **Requirements for services relating to public, educational, or governmental access—** A [cable operator](/usc/47/522.md?p=5) may not obtain modification under this section of any requirement for services relating to public, educational, or governmental access.
- (f) **“Commercially impracticable” defined—** For purposes of this section, the term “commercially impracticable” means, with respect to any requirement applicable to a [cable operator](/usc/47/522.md?p=5), that it is commercially impracticable for the [operator](/usc/47/153.md?p=38-A) to comply with such requirement as a result of a change in conditions which is beyond the control of the [operator](/usc/47/153.md?p=38-A) and the nonoccurrence of which was a basic assumption on which the requirement was based.

## Source credit

(June 19, 1934, ch. 652, title VI, § 625, as added Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2790.)

## Notes

### Statutory Notes and Related Subsidiaries

### 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.