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(a) If a franchisee initiates a formal franchise renewal process under Section 626(a)--(g) of the Cable Act, the franchisee must notify the County, and each participating municipality, at least 30 months and no more than 36 months before the franchise expiration date. When the County receives a notice from the franchisee, or at any time at the County's own initiative, the County must take the following actions:
(1) The County must review and evaluate the future cable-related community needs and interests and the franchisee's past performance. The review and evaluation must include opportunity for public comment.
(2) On completion of the review and evaluation, the County must notify the franchisee that it may file a renewal application. The notice must specify the information to be included in the renewal application and the deadline for filing the application. The filing deadline must not be earlier than 30 days after the date of the notice. If the franchisee does not submit a renewal application by the specified date, the franchise may not be renewed under this subsection.
(3) The County must hold one or more public hearings on the renewal application when the application is received or provide some other procedure for public comment on the application.
(4) After the public hearing or comment period, the County Executive must recommend to the Council that it either:
(A) renew the franchise, subject to the negotiation of a franchise agreement satisfactory to the County and the franchisee; or
(B) issue a preliminary decision that the franchise should not be renewed.
(5) The Council's action under paragraph (a)(4) must be taken within 4 months of the date of the renewal application notice to the franchisee under paragraph (a)(2).
(b) In considering a renewal application, the County must consider whether:
(1) the cable operator has substantially complied with the material terms of the existing franchise and with applicable law;
(2) the quality of the cable operator's service, including signal quality, response to consumer complaints, and billing practices has been reasonable in light of community needs (but without regard to the mix, quality, or level of cable services or other services provided over the system);
(3) the cable operator has the financial, legal, and technical ability to provide the services, facilities, and equipment in its proposal; and
(4) the cable operator's proposal is reasonable to meet the future cable-related community needs and interests, taking into account the cost of meeting the needs and interests.
(c) If a preliminary decision is made that a franchise should not be renewed, at the request of the franchisee or on its own initiative, the County must commence an administrative proceeding under Section 626(c) of the Cable Act. A hearing must be held under Section 2A-8 of this Code. The burden of proof is governed by the Cable Act. The hearing officer must issue a recommended decision consistent with the Cable Act. Parties to the hearing and the public must have 30 days after the recommended decision is issued to comment. The County Executive must recommend that the Council grant of deny an application within 30 calendar days after the deadline for receipt of comments.
(d) The Council must hold a public hearing on a renewal application. After the public hearing, the Council must consider all of the evidence, either grant or deny the renewal application by resolution, and give the reasons for its determination in the resolution.
(e) The Council must hold a public hearing on any negotiated franchise agreement prior to final Council action on the franchise. This may be done in conjunction with the public hearing held under subsection (d).
(f) Notwithstanding subsections (a) through (c) in this section, a franchisee may submit a proposal for renewal of a franchise under 626(h) of the Cable Act. The County must hold one or more public hearing or provide some other procedure for public comment on the proposal. After the public hearing or comment period, the County Executive must recommend that the Council grant or deny the franchise renewal and the terms and conditions of any recommended renewal.
(g) The renewal of a franchise is not effective until the franchisee has paid the renewal fee. The County must notify the franchisee of the amount of the renewal fee and how the fee is calculated when the County approves the renewed franchise agreement. The renewal fee must not exceed the County's costs of the renewal process, less the renewal filing fee.
(h) If the County denies the renewal of a franchise, and the franchisee does not have other authority to maintain and operate its facilities in the County’s public rights-of-way, the County may, on the recommendation of the County Executive and with the approval of the Council, acquire ownership of the cable system or transfer ownership of the system to another person, subject to applicable law. Any acquisition or transfer under this subsection must 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, subject to applicable law.
(i) If the County does not renew a franchise and the franchisee does not have other authority to maintain and operate its facilities in the County’s public rights-of-way, and the County does not buy the cable system, the County may require the former franchisee to remove its facilities and equipment, subject to applicable law. If the former franchisee fails to do so within a reasonable period of time, the County may remove the facilities and equipment at the former franchisee's or the surety's expense or at the expense of both, subject to applicable law. (FY 1991 L.M.C., ch. 3, § 1; 2006 L.M.C., ch. 34, § 1.)
(a) A transfer of a franchise, or a transfer of an interest in a franchisee that results in a change in ownership interest of a franchise of 5 percent or more, must not occur without prior approval by the County. However, a transfer of an interest to a person who already holds an ownership interest of 25 percent or more does not require prior County approval if transfer of a franchise does not occur. A transfer of a franchise will not be approved by the County when the transferor has held the franchise less than 3 years unless the County finds that the transfer is necessary and in the best interests of the County and its residents.
(b) An application to transfer a franchise must meet the requirements of Section 8A-8(b) and provide complete information on the proposed transaction, including the legal, character, financial, technical, and other pertinent qualifications of the transferee, and on the potential impact of the transfer on subscriber services or rates. The proposed transferee must provide all information required in Section 8A-8(d)(1) through (3), (10), and (12). The information required in Section 8A-8(d)(4) through (9) must also be provided if the proposed transferee expects material changes to occur in those areas as a result of the transfer.
(c) An application for transfer of an interest in a franchisee must describe the proposed transaction in detail and identify the interest to be transferred, the transferor, and transferee. If the proposed transferee is not a current equity owner of the franchisee, the application must include the information required by Section 8A-8(d)(1) and (2).
(d) An application for a transfer must provide all documents and information related to the transaction and to the financial position of the cable system before and after the proposed transaction.
(e) A public hearing must be held on an application for transfer of an interest in a franchisee of 25 percent or more.
(f) Before approving transfer of a franchise, the County must consider the legal, financial, technical and character qualifications of the transferee to operate the system, and whether operation by the proposed franchisee will adversely affect the cable services to subscribers or otherwise be contrary to the public interest. Before approving a transfer of an interest in a franchisee, the County must consider whether the transferee's interest will have any effect on the franchisee's operation of the system, the franchisee's qualifications, or the public interest.
(g) The Council must take final action on an application for transfer of a franchise after receiving recommendation from the County Executive. The County Executive may take final action on an application for transfer of an interest.
(h) Approval by the County of a transfer of a franchise does not constitute a waiver or release of any of the rights of the County under this Chapter or the franchise agreement, arising before or after the date of the transfer. A transfer does not waive or release any non-performance that occurred before the transfer. All previous non-performance becomes the responsibility of the new franchisee unless the County otherwise agrees.
(i) The County may impose a grant fee to cover its costs in excess of the filing fee in considering an application for transfer of a franchise, except for the transfer of any franchise granted before January 1, 1988.
(j) Any entity guaranteeing the performance of a franchisee may apply to the County for release for release of the guarantee if:
(1) The franchisee has, for 5 consecutive years, complied with the franchise agreement and this Chapter; and
(2) A guarantor which controls the franchisee promises to not interfere with the franchisee’s performance of its obligations under the franchise agreement and this Chapter. (FY 1991 L.M.C., ch. 3, § 1; 2006 L.M.C., ch. 34, § 1; 2010 L.M.C., ch. 49, § 1.)
(a) A franchise may be revoked by the County on the recommendation of the County Executive and with the approval of the Council, for failure to construct, operate, or maintain the cable system as required by this Chapter or the franchise agreement, or for some other material breach of this Chapter or the franchise agreement. If the County has issued a franchise specifically conditioned upon the completion of construction or other specific obligations by a specified date under Section 8A-9(c), failure of the franchisee to complete construction or comply with other specific obligations as required will result in the automatic forfeiture of the franchise without further action by the County. However, the County, at its discretion and for good cause shown by the franchisee, may grant an extension of time. The County must give a franchisee written notice that it is in material breach of this Chapter or the franchise agreement. If the franchisee does not correct the breach within 30 days of the notice, or corrective action is not being actively and expeditiously pursued, the County may give written notice to the franchisee of its intent to revoke the franchise. The County must give the franchisee written notice of the basis for a revocation, stating its reasons. An administrative hearing must be held under the County's Administrative Procedures Act before the County may revoke a franchise. The hearing procedures may be modified by the County Executive where appropriate.
(b) The presiding officer must issue a recommended decision after the administrative hearing. The County Executive may provide for the filing of written comments in response to the recommended decision. After the comment period, the County Executive must submit written recommendations to the Council.
(c) The Council must hold a public hearing, and then determine by written resolution whether or not to revoke the franchise based on the recommended decision, the recommendations of the County Executive, information presented at the public hearing, and other evidence in the record. The resolution must include reasons for the Council's decision.
(d) If the County revokes a franchise, or if for any other reason a franchisee abandons, terminates, or fails to operate or maintain service to its subscribers, and the franchisee does not have other authority to maintain and operate its facilities in the County’s public rights-of-way, the County may, subject to applicable law:
(1) require the former franchisee to remove its facilities and equipment at the franchisee's or surety's expense, or at the expense of both, after determining that the cable system cannot be economically maintained and operated;
(2) acquire ownership of the cable system at an equitable price on the recommendation of the County Executive and with the approval of the Council;
(3) after a public hearing, sell, assign, or transfer all or part of the assets of a cable system abandoned by a franchisee for the best price offer obtainable. However, the legal, character, financial, technical, and other qualifications of the purchaser must meet County approval. The County must pay any consideration received in excess of the County's costs, and after other creditors and subscriber claims have been satisfied, to the original franchisee. (FY 1991 L.M.C., ch. 3, § 1; 2006 L.M.C., ch. 34, § 1.)
(a) All subscribers have the right to receive all available cable services from the franchisee if their financial and other obligations to the franchisee are satisfied.
(b) If the franchise is terminated or transferred, the franchisee must do everything in its power to ensure that all subscribers receive continuous, uninterrupted cable service. The franchisee must cooperate with the County to operate the system for a transition period after termination or transfer as necessary to maintain continuity of cable service to all subscribers. The transition period must not exceed 12 months without the franchisee's written consent. During the transition period, the cable system must be operated under terms and conditions to which the County and the franchisee agree, or on such other terms and conditions that will continue, to the extent possible, the same level of cable service to subscribers and that will provide reasonable compensation to the cable operator.
(c) If the franchisee discontinues service to its subscribers without County approval, the franchise may be terminated immediately, and if the franchisee does not have other authority to maintain and operate its facilities in the County’s public rights-of-way, the County may take possession of all facilities and property, real and personal, related to the cable system for the purpose of operating the system. The County may undertake such operation itself or authorize operation by a contractor. (FY 1991 L.M.C., ch. 3, § 1; 2006 L.M.C., ch. 34, § 1.)
Editor’s note—Previous Sec. 8A-25, County purchase of cable system; eminent domain, derived from FY 1991 L.M.C., ch. 3, § 1, was repealed by 2006 L.M.C., ch. 34, § 1.
Section 8A-25, formerly 8A-26, was renumbered and amended pursuant to 2006 L.M.C., ch. 34, § 1.
It is unlawful for any person to solicit, accept, or offer any gift, favor, loan, service, promise, employment, or anything of value to a County official or employee, or for a County official or employee to solicit or accept anything of value, for the purpose of influencing the grant, modification, renewal, transfer, or any other matter affecting a franchise or the administration or enforcement of this Chapter. (FY 1991 L.M.C., ch. 3, § 1; 2006 L.M.C., ch. 34, § 1.)
Editor’s note—Section 8A-26, formerly 8A-27, was renumbered pursuant to 2006 L.M.C., ch. 34, § 1.
(a) All access grants, franchise fees, and other moneys received by the County from any franchisee may be spent only under a budget approved by the Council and in accordance with the County cable communication plan.
(b) The cable communications plan must be proposed by the County Executive to the Council annually and may be amended at any time. The County Executive should consult with the franchisee and the appropriate persons in the preparation of the plan or any amendments to it.
(c) Except as provided in subsection (f), the cable communications plan is subject to County Council approval. If the Council does not act on the plan within 75 days after receiving the plan, the plan is approved as submitted. The Council by resolution may extend the time for action on the plan for up to 15 days. The Council may approve, disapprove, or amend any plan that is subject to Council approval. The Council should consider a plan at a level of detail and according to procedures similar to the detail and procedures the Council uses to adopt the County budget. Any reference in this subsection to a cable communications plan also includes any amendment to a plan.
(d) Upon approval of the cable communications plan or plan amendment by the Council, it must be delivered to the County Executive, who, within 10 days, may disapprove or reduce any item of expenditure. Upon disapproval or reduction of any item, the County Executive must return the plan or plan amendment to the Council with the reasons for the disapproval or reduction stated in writing. The Council may, within 30 days of receipt of the stated reasons for disapproval or reduction, approve any item by 6 affirmative votes notwithstanding the County Executive's objections.
(e) The County Executive may amend the cable communications plan without Council approval to transfer up to 10% of a grant from one major activity to another or between activities within the plan. (FY 1991 L.M.C., ch. 3, § 1; 1998, L.M.C., ch. 10, § 1; 2006 L.M.C., ch. 34, § 1.)
Editor’s note—Section 8A-27, formerly 8A-28, was renumbered pursuant to 2006 L.M.C., ch. 34, § 1.
(a) The County may administer and enforce a cable television franchise and franchise agreement on behalf of a municipality that adopts this Chapter and enters into an agreement with the County governing administration and enforcement. The County must consult with and coordinate its actions on major regulatory or administrative matters with the affected participating municipalities.
(b) The County Executive must administer and enforce this Chapter and any franchise agreement, including:
(1) adjusting any rate of interest, fee, bond, or insurance coverage amount to comply with the highest minimum requirements of this Chapter or a franchise agreement;
(2) except as provided in Section 8A-31, establishing procedures for conducting public hearings and other proceedings required by this Chapter or a franchise agreement;
(3) except as provided in Section 8A-31, conducting public hearings, including designating hearing officers;
(4) adopting regulations under method (2) to implement federal law, this Chapter, and all franchise agreements, except that the Executive must issue regulations establishing application filing fees under method (3);
(5) coordinating management and operation of County government access channels;
(6) providing technical, programming, and operational support to public agency users of a cable system;
(7) planning and evaluating cable use and the development of cable services;
(8) approving a transfer of an interest in a franchisee;
(9) approving modifications of a franchise agreement that do not substantially alter material provisions of the franchise; and
(10) issuing requests for proposals for franchises.
(c) Actions by the County Executive in the following matters are subject to approval and modification by the Council:
(1) granting or renewing a franchise;
(2) approving transfer of a franchise;
(3) revoking a franchise;
(4) buying or selling a cable system by the County; and
(5) modifying a franchise agreement in a manner that substantially alters material provisions of the franchise.
(d) Any action by the County Executive that requires approval of the Council is deemed approved by the Council unless disapproved within 60 days after the Council receives the County Executive's recommended action. The 60-day period does not include any week when the Council does not meet in regular session. The Council by resolution may extend the deadline for action for no more than one additional 60-day period.
(e) The County Executive must transmit a copy of all amendments to a franchise agreement considered not to substantially alter material provisions of the franchise to the Council and each participating municipality for their information within 15 days of their execution.
(FY 1991 L.M.C., ch. 3, § 1; 1998 L.M.C., ch. 18, § 2; 2002 L.M.C., ch. 31, § 1; 2005 L.M.C., ch. 14, § 2; 2006 L.M.C., ch. 34, § 1.)
Editor’s note—Section 8A-28, formerly 8A-29, was renumbered and amended pursuant to 2006 L.M.C., ch. 34, § 1.
2006 L.M.C., ch. 34, § 3, repeals 2002 L.M.C., ch. 31, § 4, as amended by 2005 L.M.C., ch. 14, § 2.
2005 L.M.C., ch. 14, § 2, amends 2002 L.M.C., ch. 31, § 4, as follows: Expiration date. This act expires on December 31, 2008.
2002 L.M.C., ch. 31, §§ 2, 3 and 4, state:
Sec. 2. Service-level requirements for cable modem service. The County Executive must issue regulations under method (2) establishing minimum cable modem service levels that a franchisee must provide. The regulations supersede any less-stringent requirements in a franchise or subscriber agreement.
Sec. 3. Transition.
(a) This Act applies to each current or future franchise, franchisee, subscriber, or other person subject to the requirements of the County Cable Communications Act, as amended by this and any future Act, and supersedes any contrary regulation, franchise, franchise agreement, subscriber agreement, or other agreement. The complaint adjudication provisions in Chapter 8A of the Code, as amended by this Act, apply to any complaint pending on, or filed on or after, the date this Act takes effect [March 6, 2003]. Section 8A-31A(i) applies to any subscriber agreement modified or entered into after this Act becomes law [December 5, 2002].
(b) The County Executive must designate the initial term of 2 members of the Cable Compliance Commission as 2 years. Any later term of these 2 members, and the terms of all other members, mut be 3 years.
Sec. 4. Expiration date. This Act expires on December 31, 2005.
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