§ 138-66. Default of franchise or other agreement, license or permit, revocation, termination or cancellation.

A. 

With respect to franchised MCS providers classified as cable operators, or other MCS providers operating under another form of agreement, a license or a permit, the Town Board shall follow the rules and procedures adopted by the state, including those of the PSC, concerning the default, termination, revocation, alteration, or suspension of a cable franchise, or other agreement, license or permit, in addition to the payment of liquidated damages and the imposition of penalties, if not impermissible under applicable law. In the absence of such rules and procedures by the state, including the PSC, MCS providers classified as cable operators, or other MCS providers operating under another form of agreement, a license or a permit, shall be subject to the rules and procedures noted in Subsections C through L of this section.

B. 

For other franchised MCS providers, to the extent permitted by state law, the Town Board adopts the rules and procedures (noted in Subsections C through L of this section) concerning the default, revocation, termination or cancellation of an MCS franchise, other agreement, license or permit.

C. 

When any event, act or omission on the part of an MCS provider occurs which represents a violation of a provision of this chapter or its franchise, other agreement, license or permit, or compromises the corporate character, or legal, financial or technical ability, integrity and/or stability of the multichannel system or the MCS provider to such a degree that the interests of the customer or subscribers are substantively affected in a negative manner, then such violation, breach, event, act or omission shall be considered a material breach of this chapter, or any franchise, other agreement, license or permit as may be applicable. Under such circumstances, the Town shall notify the affected MCS provider, in writing, of the specific breach or violation, and direct such MCS provider to remedy the breach or violation in accordance with the provisions of this chapter.

(1) 

For illustrative purposes only, the violations, breaches, events, acts and omissions include, but are not limited to: bankruptcy, insolvency, failure to pay taxes or pay or remit franchise fees or the functional equivalent (including an alternative user charge in lieu of the franchise fee or its functional equivalent, if applicable), failure to receive written Town Board approval for an assignment or transfer of the franchise, other agreement, license or permit, or failure to abide by the terms and conditions of the franchise, other agreement, license or permit, or the provisions of this chapter, including those involving matters of customer service, consumer protection and safety and safety-related requirements.

D. 

Where an MCS provider satisfactorily corrects any of the enumerated conditions to the satisfaction of the Town within 60 days, then the procedure intended under this section shall cease, and in no event shall the enumerated condition be weighed against such MCS provider in any subsequent performance review under the terms of the franchise, other agreement, license or permit. However, to protect the health and safety of the public, at the discretion of Town Board, violations of safety-related requirements may be required to be corrected, eliminated or otherwise cured in less than 60 days.

E. 

A copy of the notice of material breach shall be mailed to the surety on the performance bond, unless otherwise directed by state law.

F. 

Within 75 days after such written notice is mailed to an MCS provider, the Town Board shall conduct a public hearing on the matter, unless state law requires a different procedure, in which event the state procedure shall control.

G. 

The Town Board shall provide written notice to the affected MCS provider, and to the surety, of the time and place of said public hearing in a manner consistent with either state law, or approved by the Town Board.

H. 

At the time of the hearing, the affected MCS provider may present information on the current status of the alleged breach of the franchise, other agreement, license or permit. If the situation has been resolved, or steps are being taken to resolve the situation, then the franchised MCS provider shall present the information at the hearing.

I. 

If the affected MCS provider fails to attend the hearing, and has not requested a continuance of the hearing, then such MCS provider shall be deemed to have waived its right to a further continuation of the matter, and may be declared in default of the franchise, other agreement, license or permit.

J. 

After the public hearing, the Town Board may determine the MCS provider to be in compliance and dismiss the matter, or may determine that the MCS provider has cured any noncompliance and thereby dismiss the matter. However, the Town Board may determine that an ordinance violation exists and remains uncured, or that a violation of the franchise, other agreement, license or permit has been committed and remains uncured. Consequently, upon a finding that the MCS provider violated a material ordinance provision, or failed to cure an outstanding violation of this chapter or of the franchise, other agreement, license or permit, the Town Board may direct the affected franchised MCS provider to take corrective action within a specified period of time, or may declare such franchised MCS provider in default of the franchise, other agreement, license or permit, and thereafter may revoke, terminate, or cancel the franchise, other agreement, license or permit, unless the franchised MCS provider presents sufficient mitigating circumstances.

K. 

If the Town Board directs corrective action to take place within a specified period of time or declares such franchised MCS provider in default of the franchise, other agreement, license or permit, then that declaration shall be reduced to writing, and the notice of corrective action or default shall be mailed to such franchised MCS provider, and surety, within 21 days of the Town Board's action.

L. 

If within 60 days, the affected franchised MCS provider, or surety, does not take significant action to rectify the breach, or submit a plan detailing how the affected MCS provider will eliminate the breach, including the proposed time frame for such cure, then the Town Board may revoke such MCS provider's franchise, other agreement, license or permit, and shall notify the affected franchised MCS provider and surety forthwith, unless there are mitigating circumstances.