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2. Possesses the financial, technical and legal qualifications to provide cable service. 47 U.S.C. § 541(a)(4)(B)-(C). A local franchising authority must also allow an applicant's cable system a reasonable period of time to become capable of providing cable service to all households in the franchise area. 47 U.S.C. § 541(a)(4)(A). Additionally, in awarding a franchise, a local franchising authority must 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. 47 U.S.C. § 541(a)(3). Stated differently, a local franchising authority cannot allow a cable service provider to engage in economic redlining or "cherry -picking." B. 621 Order — Competitive Cable Franchising In 2007, the Federal Communications Commission (the "FCC" or the "Commission") released a Report and Order and Further Notice of Proposed Rulemaking addressing competitive cable franchising. 6 It is sometimes referred to as the "621 Order" because it addresses the implementation of Section 621(a)(1) of the Federal Cable Act.7 Section 621(a)(1), among other things, prohibits franchising authorities from unreasonably refusing to award competitive cable franchises. C. 621 Order — Applicability to State Laws By its terms, the 621 Order applies only to new entrants.8 According to the FCC, the 621 Order does "not preempt state law or state level franchising decisions ..."9 Rather, the FCC "expressly limit[ed] ... [its] findings and regulations in this Order to actions or inactions at the local level where a state has not specifically circumscribed the LFA's authority."10 In this regard, local laws, regulations, practices and agreements are preempted to the extent that they conflict with the FCC's rules or guidance adopted in the 621 Order and are not "specifically authorized by state law."11 The FCC recently clarified the 621 Order in Implementation of Section 621(a)(1) of the Cable Communications Policy Act of 1984 as amended by the Cable Television Consumer Protection and Competition Act of 1992, Order on Reconsideration (Rel. Jan. 21, 2015) ("We clarify that those rulings were intended to apply only to the local franchising process, and not to franchising laws or decisions at the state level").12 6 See FN 3. 7 Section 621(a)(1) is codified at 47 U.S.C. § 541(a)(1). 8 See, e.g., 621 Order at ¶¶ 18 and 139. 9 Id. ¶ 126. 10 Id. at ¶ 1, n. 2. 11 621 Order at ¶ 126. 12 See Exhibit 8, at ¶ 7. 6