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 franchise 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 section, 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 § 53-62; revocation for bankruptcy shall be governed by § 53-63.
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 § 53-62, 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.
