A franchise may be revoked by the Township for a franchisee's failure to construct, operate, or maintain the broadband system as required by this chapter or the franchise agreement, for defrauding or attempting to defraud the Township or subscribers, if the franchisee is declared bankrupt, or for any other material violation of this chapter or material breach of the franchise agreement. To invoke the provisions of this article, the Township shall give the franchisee written notice of the default in its performance. If within 60 calendar days following such written notice from the Township the franchisee has not taken corrective action or corrective action is not being actively and expeditiously pursued to the satisfaction of the Township, the Township may give written notice to the franchisee of its intent to revoke the franchise, stating its reasons, provided that no opportunity to cure shall be provided where the franchisee has defrauded or attempted to defraud the Township or its subscribers, or in the event the franchisee is declared bankrupt. In the case of a fraud or attempted fraud, the franchise may be revoked after the hearing required under § 94-63; revocation for bankruptcy shall be governed by § 94-64.
Prior to revoking a franchise, the Township
shall hold a public hearing, upon 30 calendar days' notice, at which
time the franchisee and the public shall be given an opportunity to
be heard. Following the public hearing, the Township may determine
whether to revoke the franchise based on the information presented
at the hearing, and other information of record. If the Township determines
to revoke a franchise, it shall issue a written decision setting forth
the reasons for its decision. A copy of such decision shall be transmitted
to the franchisee.
Any franchise may, at the option of the Township
following a public hearing before the Township, be revoked 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 the franchisee,
whether in a receivership, reorganization, bankruptcy assignment for
the benefit of creditors, or other action or proceeding, unless within
that one-hundred-twenty-day period:
A.
Such assignment, receivership, or trusteeship has
been vacated; or
B.
Such assignee, receiver, or trustee has fully complied with the terms and conditions of this chapter and the franchise agreement and has executed an agreement, approved by a court of competent jurisdiction, assuming and agreeing to be bound by the terms and conditions of this chapter and the franchise agreement, and such other conditions as may be established or as are required pursuant to Article XIV.
In the event of foreclosure or other judicial
sale of any of the facilities, equipment, or property of a franchisee,
the Township may revoke the franchise, following a public hearing
before the Township, by serving notice on the franchisee and the successful
bidder at the sale, in which event the franchise and all rights and
privileges of the franchise will be revoked and will terminate 30
calendar days after serving such notice, unless:
A.
The Township has approved the transfer of the franchise
to the successful bidder; and
If the Township revokes a franchise, or if for
any other reason a franchisee abandons, terminates, or fails to operate
or maintain service to its subscribers, the following procedures and
rights are effective:
A.
The Township may require the former franchisee to
remove its facilities and equipment at the former franchisee's expense.
If the former franchisee fails to do so within a reasonable period
of time, the Township may have the removal done at the former franchisee's
and/or surety's expense.
B.
In the event of revocation, the Township, by resolution,
may acquire ownership of the broadband system at an equitable price.
C.
If a broadband system is abandoned by a franchisee
or the franchisee fails to operate or maintain service to its subscribers
or otherwise terminates the franchise, the ownership of all portions
of the broadband system in public rights-of-way shall revert to the
Township, and the Township may sell, assign, or transfer all or part
of the assets of the system.
Notwithstanding § 94-63, where the Township has issued a franchise specifically conditioned in the franchise agreement upon the completion of construction, system upgrade, or other specific obligation by a specified date, failure of the franchisee to complete such construction or upgrade, or to comply with such other specific obligation as required, will result in the automatic forfeiture of the franchise without further action by the Township where it is so provided in the franchise agreement, unless the Township, at its discretion and for good cause demonstrated by the franchisee, grants an extension of time.
