An amendment which authorizes only state regulatory commissions, as opposed to the FCC or local franchising authorities, to regulate cable rates if there is a lack of effective competition. The states would establish rate regulations governing cable systems that are not subject to effective competition, and such regulations could address rates for all cable services, not just rates for basic services. States also would be permitted to regulate the rates of cable systems owned or operated by a municipality, if such a system is the only one operating in the area. The amendment does not alter the bill's definition of effective competition.