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<section number="5A-114" name="Performance guarantees, penalties, and revocation" law="code" slug="sec-5a-114" node_id="PTIITI17PULOLAPRGECOMA_SUBTITLE_5ACATETE_DIV1CATE_S5A-114PEGUPERE">
  <level label="a">
    <text>Unless otherwise provided in a cable operator's franchise agreement, the following provisions (1) through (6) shall apply:</text>
    <level label="1">
      <text>If, as a result of a dispute between the franchisee and the County and prior to a settlement of that dispute as provided for herein, the franchisee arbitrarily or capriciously discontinues service to its subscribers, the franchisee shall forfeit its rights of notice and a hearing as provided for herein, and the Commission, with the approval of the County Executive, shall recommend that the Council, by resolution, declare the franchise immediately terminated and the County shall forthwith seek appropriate judicial relief and shall proceed to exercise its rights and powers as provided for herein.</text>
    </level>
    <level label="2">
      <text>If a renewal of a franchise held by a cable operator is denied and the County acquires ownership of the cable system or effects a transfer of ownership of the system to another person, any such acquisition or transfer shall be at fair market value, determined on the basis of the cable system valued as a going concern but with no value allocated to the franchise itself.</text>
    </level>
    <level label="3">
      <text>If a franchise held by a cable operator is revoked for cause and the County acquires ownership of the cable system or effects a transfer of ownership of the system to another person, any such acquisition or transfer shall be at an equitable price.</text>
    </level>
    <level label="4">
      <text>Upon payment of the purchase price, the franchisee shall immediately transfer to the County possession and title to all facilities and property, real and personal, related to its cable television system free from any and all liens and encumbrances not agreed to be assumed by the County in lieu of some portion of the purchase price.</text>
    </level>
    <level label="5">
      <text>Until such time as the franchisee transfers to the County or to a new franchisee possession and title to all assets, real and personal, related to its cable television system, the franchisee shall, as trustee for its successor in interest, continue to operate the cable television system under the terms and conditions of this Subtitle and the franchise and to provide the basic service and any and all of the services that may be provided at that time. During such interim period, the franchisee shall not sell any of the system assets nor shall the franchisee make any physical, material, administrative, or operational change that would tend to degrade the quality of service to the subscribers, decrease income, or materially increase expenses without the express permission, in writing, of the County or its assignee. The County shall be permitted to seek legal and equitable relief to enforce the provisions of this Section.</text>
    </level>
    <level label="6">
      <text>For its management services during this interim period, the franchisee shall be entitled to receive as compensation the net profit, as defined herein, generated during the period between the date the franchisee received written notice from the County of its intent to purchase the franchisee's cable television system or the expiration date of the franchise, whichever is earlier, and the payment of the purchase price. Such management services shall not be continued for more than twelve (12) months without the franchisee's consent. However, if the Commission determines that the franchisee is responsible for any delay in transfer of ownership and control, the franchisee shall continue to operate the cable television system, as provided for in this Subtitle, without compensation for its services until the sales agreement is executed and ownership and control passes to the County or its assignee. In addition, the County shall also have the further right to forthwith terminate the franchise or to purchase the assets of the franchisee's cable system at fair market value.</text>
    </level>
  </level>
  <level label="b">
    <text>For violation of provisions of this Subtitle or a franchise agreement entered into pursuant to this Subtitle, penalties shall be assessable against a franchisee and shall be chargeable to the franchisee's security fund in any amount up to the limits specified below, at the County's discretion:</text>
    <level label="1">
      <text>For failure to submit any required plans indicating expected dates of installation of various parts of the system: One Thousand Dollars ($1,000)/day for each violation for each day the violation continues;</text>
    </level>
    <level label="2">
      <text>For failure to commence operations in accordance with the requirements of the franchise agreement: Two Thousand Dollars ($2,000)/day for each violation for each day the violation continues after a thirty (30) day cure period, if the franchisee has not undertaken substantial corrective action to cure the violation within that thirty (30) day period;</text>
    </level>
    <level label="3">
      <text>For failure to substantially complete construction in accordance with a franchisee's franchise agreement: Three Thousand Dollars ($3,000)/day for each violation for each day the violation continues after a thirty (30) day cure period, if the franchisee has not undertaken substantial corrective action to cure the violation within that thirty (30) day period;</text>
    </level>
    <level label="4">
      <text>For transferring the franchise without approval: Two Thousand Dollars ($2,000)/day for each violation for each day the violation continues;</text>
    </level>
    <level label="5">
      <text>For failure to comply with requirements for PEG use of the system: One Thousand Dollars ($1,000)/day for each violation for each day the violation continues after a fourteen (14) day cure period, if the franchisee has not undertaken substantial corrective action to cure the violation within that fourteen (14) day period;</text>
    </level>
    <level label="6">
      <text>For failure to supply information, reports, or filings lawfully required under the franchise agreement or applicable law or by the County: Five Hundred Dollars ($500)/day for each violation for each day the violation continues after a thirty (30) day cure period, which shall begin to run on the due date of any regularly scheduled report and on the date of a deadline reasonably set by the County for any report or information request not regularly scheduled, unless the franchisee shows that it was not in fact aware of the requirement in question, in which case the thirty (30) day cure period shall begin to run upon written notice of such requirement by the County to the franchisee;</text>
    </level>
    <level label="7">
      <text>For violation of customer service standards, or failure to file a compliance certification or noncompliance statement as required herein: Five Hundred Dollars ($500)/day or per event, if the violation continues after the franchisee is in receipt of a written notice from the County outlining the violation and is given a seven (7) day period to cure the violation;</text>
    </level>
    <level label="8">
      <text>For failure to pay franchise fees or liquidated damages: One Hundred Dollars ($100)/day, in addition to any monetary payment due under a franchise agreement or this Subtitle, for each violation for each day the violation continues after a seven (7) day cure period, if the franchisee has failed to make payment within that seven (7) day period, provided that these penalties shall be in addition to any late fees that may apply;</text>
    </level>
    <level label="9">
      <text>For failure to file, obtain, or maintain any required security fund in a timely fashion: Two Hundred Dollars ($200)/day;</text>
    </level>
    <level label="10">
      <text>For failure to restore damaged property: Two Hundred Dollars ($200)/day, in addition to the cost of the restoration and any other penalties or fees as required elsewhere herein or in a franchise agreement, for each day the violation continues after a thirty (30) day cure period, if the franchisee has not undertaken substantial corrective action to cure the violation within that thirty (30) day period;</text>
    </level>
    <level label="11">
      <text>For violation of technical standards established by the FCC: One Hundred Dollars ($100)/day for each day the violation continues after a thirty (30) day cure period after the County gives the franchisee notice of such violation;</text>
    </level>
    <level label="12">
      <text>For knowingly and intentionally signing a false report or statement: One Thousand Dollars ($1,000)/report or document;</text>
    </level>
    <level label="13">
      <text>For any other violation of this Subtitle, a franchise agreement, or other applicable law: Five Hundred Dollars ($500)/day for each violation for each day the violation continues.</text>
    </level>
  </level>
  <level label="c">
    <text>The franchisee shall pay any penalty assessed in accordance with this Subtitle within fourteen (14) days after receipt of notice from the County of such penalty.</text>
  </level>
  <level label="d">
    <text>To the extent that penalties are applied to a franchisee under this Section, a franchisee shall not be subject to liquidated damages payable to the County for the same violation.</text>
  </level>
  <level label="e">
    <text>The County may reduce or waive any of the above-listed penalties for good cause shown.</text>
  </level>
  <level label="f">
    <text>Pending litigation or any appeal to any regulatory body or court having jurisdiction over a franchisee shall not excuse the franchisee from the performance of its obligations under this Subtitle or its franchise agreement unless a stay is obtained or the franchisee is otherwise excused from performance by operation of law. Failure of the franchisee to perform such obligations because of pending litigation or petition, in the absence of a stay issued by a forum of competent jurisdiction, may result in forfeiture or revocation pursuant to the provisions of this Subtitle and/or its franchise agreement.</text>
  </level>
  <level label="g">
    <level label="1">
      <text>Any franchise shall be deemed revoked one hundred twenty (120) calendar days after an assignment for the benefit of creditors or the appointment of a receiver or trustee to take over the business of a franchisee, whether in a receivership, reorganization, bankruptcy assignment for the benefit of creditors, or other action or proceeding. Provided, however, that a franchise may be reinstated at the County's sole discretion if, within that one hundred twenty (120) day period:</text>
      <level label="A">
        <text>Such assignment, receivership, or trusteeship has been vacated; or</text>
      </level>
      <level label="B">
        <text>Such assignee, receiver, or trustee has fully complied with the terms and conditions of this Subtitle and the applicable franchise agreement and has executed an agreement, approved by a court of competent jurisdiction, under which it assumes and agrees to be bound by the terms and conditions of this Subtitle and the applicable franchise agreement, and such other conditions as may be established or as are required by applicable law.</text>
      </level>
    </level>
    <level label="2">
      <text>Notwithstanding the foregoing, in the event of foreclosure or other judicial sale of any of the facilities, equipment, or property of a franchisee, the County may revoke the franchise, following a public hearing, by serving notice on the franchisee and the successful bidder, in which event the franchise and all rights and privileges of the franchise will be revoked and will terminate thirty (30) calendar days after serving such notice, unless:</text>
      <level label="A">
        <text>The County has approved the transfer of the franchise to the successful bidder; and</text>
      </level>
      <level label="B">
        <text>The successful bidder has covenanted and agreed with the County to assume and be bound by the terms and conditions of the franchise agreement and this Subtitle, and such other conditions as may be established or as are required pursuant to this Subtitle or a franchise agreement.</text>
      </level>
      <level label="C">
        <text>All remedies under this Subtitle and the franchise agreement are cumulative unless otherwise expressly stated. The exercise of a remedy or the payment of liquidated damages or penalties shall not relieve a franchisee of its obligations to comply with its franchise or applicable law.</text>
      </level>
      <level label="D">
        <text>Recovery by the County of any amounts under insurance, the security fund, the performance bond, or letter of credit, or otherwise does not limit a franchisee's duty to indemnify the County in any way; nor shall such recovery relieve a franchisee of its obligations under a franchise, limit the amounts owed to the County, or in any respect prevent the County from exercising any other right or remedy it may have.</text>
      </level>
    </level>
    <level label="3">
      <text>Unless otherwise provided for in the franchise agreement, the following provisions shall apply to all:</text>
      <level label="A">
        <text>Whenever the franchisee shall willfully and/or repeatedly fail, refuse, or neglect to conduct, operate, or maintain its CATV system in accordance with the terms of this Subtitle and the franchise, or to comply with the conditions of street occupancy, or to make required extensions, or in other ways violate the terms and conditions of this Subtitle, the Director may notify the franchisee, in writing, setting forth the nature and facts of such noncompliance. If within thirty (30) calendar days following such written notification the franchisee has not furnished proof that corrective action has been taken or is being actively and expeditiously pursued, or evidence that the alleged violations did not occur, the Director shall place request for termination of the franchise on the agenda of the next CATV Commission meeting.</text>
      </level>
      <level label="B">
        <text>If, after considering the Director's request for termination of the franchise and hearing all interested parties, the CATV Commission determines that the noncompliance of the franchisee was with just cause, it shall direct the franchisee to comply within such time and manner and on such terms and conditions as are reasonable.</text>
      </level>
      <level label="C">
        <text>If the CATV Commission determines that such noncompliance was without just cause, then the CATV Commission, with the approval of the County Executive, may recommend to the Council that it adopt a bill which terminates the franchise.</text>
      </level>
      <level label="D">
        <text>No revocation or termination shall be effected unless the CATV Commission, at any regular or special public meeting at which all interested parties have been heard, shall set further the reasons for the termination, and in the event the termination of said franchise depends upon a finding of fact, such finding of fact as made by the CATV Commission after said hearing shall be deemed to be conclusive unless modified by a court of law of appropriate jurisdiction.</text>
      </level>
      <level label="E">
        <text>The franchisee shall not be declared in violation of or be subject to any sanction under provisions of this Subtitle in any case where the performance of the cable service is prevented for reasons beyond the franchisee's control. A violation shall not be deemed to be beyond the franchisee's control if committed by a corporation or other business entity in which the franchisee holds a controlling interest, whether held directly or indirectly.</text>
      </level>
      <level label="F">
        <text>The termination of the franchisee shall in no way affect any of the rights of the County under the franchise or any provision of law.</text>
      </level>
    </level>
  </level>
</section>
