47 U.S.C. § 537 — Sales of cable systems

This section sets a deadline for local cable franchising authorities — the local government bodies that grant cable franchises — to decide on requests to approve the sale or transfer of a cable system. This rule only applies when the franchise agreement itself requires the franchising authority's approval for a sale or transfer. If it does, the authority has 120 days to act once it receives a request that includes all the information required by Federal Communications Commission (FCC) regulations and by the franchising authority itself. If the franchising authority does not make a final decision within those 120 days, the request is automatically treated as granted. The only way around this automatic approval is if the party requesting approval and the franchising authority both agree, in advance, to extend the deadline.