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Queen Annes County, MD
 
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Table of Contents
Table of Contents
A grantee shall have the authority to promulgate such rules, regulations, terms and conditions governing the conduct of its business as shall be reasonably necessary to enable the grantee to exercise its rights and perform its obligations under a franchise, and to assure an uninterrupted service to each and all of its customers; provided, however, that such rules, regulations, terms and conditions shall not be in conflict with the provisions of this chapter or applicable state and federal laws, rules and regulations.
A. 
Except as may be provided in a franchise agreement, a franchise or a franchised cable system shall not be assigned or transferred, either in whole or in part, or leased, sublet or mortgaged in any manner, nor shall title thereto, either legal or equitable, or any right, interest or property therein, or control over such franchise or system, pass to or vest in any person without the prior written consent of the County. A grantee may, however, transfer or assign a franchise to any affiliate (as defined in § 29-2) or to a wholly owned subsidiary of the grantee (or its parent corporation) and such subsidiary may transfer or assign the franchise back to the grantee without such consent, providing that such transfer or assignment is without any release of liability or responsibility of the grantee for any purpose, including franchise renewal. The proposed assignee must inter alia show financial responsibility as determined by the County and must agree to comply with all provisions of the franchise. The County shall have 120 days to act upon any request for approval of such a sale or transfer submitted in writing that contains or is accompanied by the information required by FCC regulations and the County. The County shall be deemed to have consented to a proposed transfer or assignment if its refusal to consent is not communicated in writing to the grantee within 120 days following receipt of written notice and aforementioned information, unless the requesting party and the County agree to an extension of time.
B. 
A grantee shall promptly notify the County of any actual or proposed change in, or transfer of, or acquisition by any other party of, control of the grantee. Every assignment or transfer of a grantee as specified in Subsection A shall make a franchise subject to revocation unless and until the County shall have consented thereto, which consent will not be unreasonably withheld. For the purpose of determining whether it shall consent to such change, transfer or acquisition of control, the County may inquire into the qualifications of the prospective controlling party and such other legal, technical and financial matters as the County deems pertinent to its approval, and a grantee shall assist the County in such inquiry.
C. 
The consent or approval of the County to any transfer of a grantee shall not constitute a waiver or release of the rights of the County in and to the streets, and any transfer by its terms, shall be expressly subordinate to the terms and conditions of this chapter and the franchise agreement.
D. 
In the absence of extraordinary circumstances, the County shall have the discretion to disapprove any transfer or assignment of an initial franchise prior to substantial completion of construction of the proposed system.
E. 
In no event shall a transfer of ownership or control be approved without the successor in interest becoming a signatory to the applicable franchise agreement.
A. 
A grantee shall fully cooperate in making available at reasonable times, and the County shall have the right to inspect, where reasonably necessary to the enforcement of a franchise, books, records, maps, plans and other like materials of the grantee applicable to the cable system, at any time during normal business hours, provided where volume and convenience necessitate, a grantee may require inspection to take place on the grantee's premises.
B. 
The following records and/or reports are to be made available to the County upon 30 days' prior written request.
(1) 
An annual review or progress report submitted by a grantee to the County;
(2) 
Periodic preventive maintenance reports;
(3) 
Any copies of FCC Form 396-C (or successor form) or any supplemental forms related to equal opportunity or fair contracting policies;
(4) 
Subscriber inquiry/complaint resolution date; and
(5) 
Periodic construction update reports, including where appropriate the submission of strand maps.
Copies of all petitions, applications, communications and reports either submitted by a grantee to the FCC, Securities and Exchange Commission, or any other federal or state regulatory commission or agency having jurisdiction in respect to any matters affecting cable television operations authorized pursuant to the franchise, or received from such agencies, shall be provided to the County upon request.
A grantee shall file annually with the County, no later than 120 days after the end of the grantee's fiscal year, a copy of a gross revenues statement certified by an officer of the grantee.
At the expiration of the term for which a franchise is granted or if any renewal request is denied, or upon the termination of a franchise as provided herein, a grantee shall forthwith, upon reasonable notice by the County, remove at its own expense all designated portions of its cable television system from all streets and public property within the County. If a grantee fails to do so within 12 months of notice, the County may perform the work at the grantee's expense. Upon such notice of removal, a bond shall be furnished by a grantee in an amount sufficient to cover this expense.
In addition to the inherent powers of the County to regulate and control a cable television franchise, and those powers expressly reserved by the County or agreed to and provided for in a franchise agreement, the right and power is hereby reserved by the County to promulgate such additional regulations as it shall find necessary in the exercise of its lawful powers and furtherance of the terms and conditions of this chapter; provided, however, that such rules, regulations, terms or conditions shall not be in conflict with any franchise agreement granted hereunder or applicable state and federal laws, rules and regulation.
A. 
The County and a grantee may hold scheduled performance evaluation sessions within 30 days of the third and sixth anniversary dates of the grantee's award or renewal of the franchise and as may be required by federal and state law. All such evaluation sessions shall be open to the public.
B. 
Special evaluation sessions may be held at any time during the term of a franchise at the request of the County or the grantee.
C. 
All scheduled performance evaluation sessions shall be open to the public and announced in a newspaper of general circulation in accordance with legal notice. A grantee may be required by the County to notify its subscribers of all such evaluation sessions by announcements on at least one channel of its system during a specified time frame preceding each session.
D. 
Topics which may be discussed at any scheduled or special evaluation session may include, but not be limited to, franchise fee; penalties; application of new technologies; system performance; customer complaints, privacy; amendments to this chapter; judicial and FCC rulings; line extension policies; and grantee or County rules.
E. 
Members of the general public may add topics either by working through the County or the grantee or by presenting a petition to the County Commissioners outlining the topic or topics sought to be discussed at the evaluation session.
A. 
In addition to all other rights and powers retained by the County under a franchise or otherwise, the County reserves the right to forfeit and terminate a franchise and all rights and privileges of a grantee hereunder in the event of a substantial breach of the terms and conditions of this chapter or a franchise agreement. A substantial breach by a grantee shall include, but shall not be limited to, the following:
(1) 
Violation of any material provision of a franchise or this chapter, or any material rule, order, regulation or determination of the County made pursuant to a franchise or this chapter.
(2) 
Attempt to evade any material provision of a franchise or practice any fraud or deceit upon the County or the grantee's subscribers or customers;
(3) 
Failure to begin or complete system construction or system extension as provided under § 29-22;
(4) 
Failure to provide the services promised in the grantee's application, if any, as incorporated in a franchise agreement;
(5) 
Failure to restore service after 96 consecutive hours of an outage or service interruption, except when approval of such outage or service interruption is obtained from the County; or
(6) 
Material and intentional misrepresentation of fact in the application for or negotiation of a franchise.
B. 
The foregoing shall not constitute a major breach if the violation occurs but is without fault of a grantee or occurs as a result of circumstances beyond its control. A grantee shall not be excused by mere economic hardship or by misfeasance or malfeasance of its directors, officers or employees.
C. 
The County shall make a written demand that a grantee comply with any such provision, rule, order or determination under or pursuant to this chapter or a franchise agreement. If the violation by a grantee continues for a period of 30 days following such written demand, without written or other proof acceptable to the County that the corrective action has been taken or is being actively and expeditiously pursued, the County may place the issue of termination of a franchise before the Board of County Commissioners. The County shall cause to be served upon a grantee, at least 20 days prior to the date of such meeting, a written notice of intent to request such termination and the time and place of the meeting. Public notice shall be given of the meeting and the issue(s) which the Board of County Commissioners are to consider.
D. 
The Board of County Commissioners shall hear and consider the issue(s) and shall hear any person interested therein and shall determine, in its discretion, whether or not any violation by a grantee has occurred.
E. 
If the Board of County Commissioners determines the violation by a grantee was the fault of the grantee and within its control, the Board of County Commissioners may, by resolution, declare that the franchise of the grantee be terminated unless there is compliance within such period as the Board of County Commissioners may fix, such period shall not be less than 60 days, provided no opportunity for compliance need be granted for fraud or misrepresentation.
A. 
A franchise may be deemed 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 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-day period:
(1) 
Such assignment, receivership or trusteeship has been vacated; or
(2) 
Such assignee, receiver, or trustee has fully complied with the terms and conditions of this chapter 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 chapter and the applicable franchise agreement, and such other conditions as may be established or as are required by applicable law.
B. 
Notwithstanding the foregoing, in the event of foreclosure or other judicial sale of any of the facilities, equipment, or property or a franchisee, the County may revoke the franchise, following a public hearing before the Board of County Commissioners, by serving notice on the grantee and the successful bidder, 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:
(1) 
The County has approved the transfer of the franchise to the successful bidder; and
(2) 
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 chapter, and such other conditions as may be established or as are required pursuant to this chapter or a franchise agreement.
A. 
Federal regulations pursuant to the Cable Act shall apply to the right of acquisition by the County. In the event that the relevant federal regulations are repealed, the guidelines specified in Subsection B of this section shall apply.
B. 
Upon the expiration of the term of a franchise and denial of any renewal or upon any other termination thereof as provided in this chapter, the County, at its election, shall have the right to purchase and take over a system upon resolution by the County Commissioners. In such event, the system shall be purchased at a price equal to the fair market value, determined on the basis of the cable system's value as a going concern but with no value allocated to the franchise itself, or at a price determined in accordance with the franchise agreement if the franchise agreement contains provisions applicable to such an acquisition. The County must begin exercise of its option to purchase the system within 60 days of the denial of franchise renewal. Nothing shall prohibit a grantee, in the event of the election of the County to purchase a system, from requesting a court of competent jurisdiction to set a reasonable bond of the County to secure the purchase price, which is to be immediately available funds at the time of purchase.
A. 
Notwithstanding any other provisions of this chapter to the contrary, a grantee shall at all times comply with all laws and regulations of the local, state and federal government or any administrative agencies thereof; provided, however, if any such state or federal law or regulation shall require the grantee to perform any service, or shall permit a grantee to perform any service, or shall prohibit the grantee from performing any service, in conflict with the terms of this chapter or of any law or regulation of the County, then as soon as possible following knowledge thereof, the grantee shall notify the County of the point of conflict believed to exist between such regulation or law and the laws or regulations of the County or this chapter.
B. 
If the County determines that a material provision of this chapter is affected by any subsequent action of the state or federal government, the County shall modify any of the provisions herein to comply with such state of federal law or regulation to such reasonable extent as may be necessary to carry out the full intent and purpose of this chapter and the franchise agreement, and to preserve the benefit of the bargain for each party.
A. 
Interference with cable service is prohibited. Neither the owner of any multiple-unit residential dwelling nor his agent or representative shall interfere with the right of any tenant or lawful resident thereof to receive cable service, cable installation or maintenance from a grantee regulated by and lawfully operating under a valid and existing franchise issued by the County.
B. 
Gratuities and payments to permit service are prohibited. Neither the owner of any multiple-unit residential dwelling nor his agent or representative shall ask, demand or receive any payment, service or gratuity in any form as a condition for permitting or cooperating with the installation of a cable service to the dwelling unit occupied by a tenant or resident requesting cable service.
C. 
Penalties and charges to tenants for service are prohibited. Neither the owner of any multiple-unit residential dwelling nor his agent or representative shall penalize, charge or surcharge a tenant or resident or forfeit or threaten to forfeit any right of such tenant or resident, or discriminate in any way against such tenant or resident who requests or receives cable service from a grantee operating under a valid and existing franchise issued by the County.
D. 
Reselling service is prohibited. No person shall resell, without the expressed, written consent of the County, any cable service, program or signal transmitted by a grantee under a franchise issued by the County.
E. 
Protection of property is permitted. Nothing in this chapter shall prohibit a person or the County from requiring that cable television system facilities conform to laws and regulations and reasonable conditions necessary to protect safety, functioning, appearance and value of premises or the convenience and safety of persons or property.
F. 
Except as provided by state or federal law, nothing in this chapter shall prohibit a person from requesting a grantee to indemnify the owner, or his agents or representatives for damages or from liability for damages caused by the installation, operation, maintenance or removal of cable system facilities.
A. 
In the event the County believes that a grantee has not complied with the provisions of the chapter or a franchise agreement, the County, by action of the County Administrator, shall notify the grantee in writing by personal delivery or registered or certified mail, specifying the nature of the alleged noncompliance or default and demanding correction within a reasonable time.
B. 
A grantee shall have 30 days from the receipt of the County's notice described in Subsection A:
(1) 
To respond to the County, contesting the assertion of the noncompliance or default, or
(2) 
To cure such noncompliance or default, or
(3) 
In the event that, by nature of the noncompliance or default, such noncompliance or default cannot be cured within the thirty-day period, initiate reasonable steps to remedy such noncompliance or default and notify the County of the steps being taken and the projected date that they will be completed.
C. 
In the event grantee fails to respond to the County's notice described in Subsection A of this section, fails to correct a violation within the time prescribed and diligently remedy such violation thereafter, or responds contesting the alleged noncompliance, the grantee shall then be given a written notice of not less than 20 days of a public hearing to be held before the Board of County Commissioners. Said notice shall specify the violation(s) alleged. At the public hearing, the Board of County Commissioners shall hear and consider all relevant evidence, and thereafter render findings and its decision.
D. 
In the event the Board of County Commissioners finds that the grantee has corrected the violation, or has diligently commenced correction of such violation after notice thereof from the grantor and is diligently proceeding to fully remedy such violation, or that no material violation has occurred, the proceedings shall terminate and no penalty or other sanction shall be imposed. In determining whether a violation is material, the grantor shall take into consideration the reliability of the evidence of the violation, the nature of the violation and the damage, if any, caused to the grantor thereby, whether the violation was chronic, and any justifying or mitigating circumstances and such other matters as the grantor may deem appropriate.
E. 
If the County determines after the due process hearing prescribed in Subsection C that the grantee is in noncompliance and that noncompliance is not cured within the times set forth in Subsection B of this section, or in the event that the alleged noncompliance or default is not remedied within the 30 days or the date projected pursuant to Subsection B of this section, the violation shall be deemed a civil infraction and a penalty of up to $500 per day for each day that a violation occurs may be assessable by the County against a grantee in addition to any amounts otherwise due, and may be chargeable to the grantee's surety bond, letter of credit, performance bond or security deposit. In the alternative, the County may seek legal or equitable relief from any court of competent jurisdiction.
F. 
Unless otherwise provided in this chapter, a grantee shall pay any penalty assessed in accordance with this chapter within 30 days after receipt of notice from the County of such penalty.
G. 
In addition to the penalties set forth above, the franchise agreement may provide for the assessment of liquidated damages for failure to comply with the terms of this chapter or the franchise agreement.
[Amended 2-14-2017 by Ord. No. 16-26]
H. 
Pending litigation or any appeal to any regulatory body or court having jurisdiction over a grantee shall not excuse the grantee from the performance of its obligations under this chapter or its franchise agreement unless a stay is obtained. Failure of the grantee 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 chapter and/or its franchise agreement.
The County reserves the right to regulate rates for basic cable service and any other services offered over the cable system, to the extent permitted by federal or state law. The grantee shall be subject to the rate regulation provisions provided for herein, and those of the FCC. The County shall follow the rules relating to cable rate regulation promulgated by the FCC.
If any provision of this chapter is held by any court or by any state or federal agency of competent jurisdiction to be invalid as conflicting with any federal or state law, rule or regulation now or hereinafter in effect, or is held by such court or agency to be modified in any way in order to conform to the requirements of any such law, rule or regulation, such provision shall be considered a separate, distinct, and independent part of this chapter, and such holding shall not affect the validity and enforceability of all other provisions hereof.
A grantee shall not oppose intervention by the County in any suit or proceeding to which the grantee is a party in connection with a franchise hereunder.