Sec.16-333-41. Administrative proceeding for renewal criteria and procedure

(a) If the department, after evaluation of a franchise holder's proposal pursuant to section 16-333-40 (c) (2) of these regulations, makes a finding that the franchise should not be renewed, a hearing shall be scheduled where the qualifications of the franchise holder shall be evaluated in accordance with the following criteria:

(1) whether the franchise holder has been in substantial compliance with the material terms of the franchise and applicable law;

(2) whether the quality of the cable service is reasonable in light of the community needs;

(3) whether the franchise holder has the financial, legal, and technical qualifications to deliver on its renewal proposal;

(4) whether the renewal proposal is reasonable to meet the future community needs and interests considering the costs.

(b) The hearing under this section of the regulations must commence within the four month period after conclusion of the initial assessment proceeding pursuant to section 16-333-39 of these regulations. Prompt notice must be issued to the public although participation is limited to the franchising authority and the franchise holder.

(c) During the review proceeding the franchising authority and the franchise holder have the right to full participation including the right to introduce evidence, conduct discovery, issue subpoenas, cross-examine witnesses, and request a transcript.

(d) Upon completion of the hearing under this section, the department must issue a written decision based on the record and setting forth the reasons for the granting or denial of the renewal, and transmit said decision to the franchise holder. Any decision of denial shall be based on an adverse finding on at least one of four criteria as stated in section 16-333-41 (a) (1) through 16-333-41 (a) (4) of these regulations, provided that if the adverse finding is of substantial failure to comply with a material franchise term or service quality, prior notice and opportunity to cure must have been given to the franchise holder. Any adverse finding shall be deemed void if the franchising authority waived its right to object to the infraction or acquiesced in the commission of the infraction.

(e) The final decision to grant or deny the renewal must be rendered prior to the expiration date of the franchise.

(Effective June 27, 1989)