Title 10 Regulation of Activities
Chapter 10.27A Cable Communications Code
Article III. Franchise Conditions
Section 10.27A.395 Transfer of Ownership or Control
- A franchise issued pursuant to this chapter shall not be sold, assigned, transferred, leased or disposed of, either in whole or in part, either by involuntary sale or by voluntary sale, merger, consolidation or otherwise hypothecated in any manner, nor shall title thereto, either legal or equitable, or any right, interest or property therein pass to or vest in any person, or the controlling interest in any corporation holding a franchise hereunder be changed, without the prior consent of the council, and then only under such conditions as may be required by the city council. Such a transfer of control is not limited to major interest holders but includes actual working or de facto control by minor holders in whatever manner exercised; provided, however:
-
- such a transfer of control shall not include transfer to a parent or affiliate of a franchisee, except when such transfer is intended to avoid application of this section; and
-
- franchisee shall not be required to obtain City’s consent for transfers in trust obtained to finance construction or operations of a cable system by pledging the system as collateral.
Every change, transfer or acquisition of control of a franchisee shall make a franchise, unless excepted herein, subject to cancellation unless and until the City shall have consented. Such consent shall not be unreasonably withheld. A rebuttable presumption that a change in controlling interest has occurred shall arise upon the acquisition or accumulation by any person or group of persons of five percent of the voting shares of a franchise.
- A franchisee shall promptly notify the City of any proposed change in control of the franchisee. A formal application for approval of a proposed transfer of control shall be filed within thirty days of such notification.
-
- The application shall include, among other things, a copy of any and all documents relating to the sale or transfer and any filings by any party to the transaction at any state or federal agency including, but not limited to, the FCC, the Department of Justice, the Federal Trade Commission, and the Securities and Exchange Commission.
-
- An original of the text of the application shall be filed with the City.
- The proposed purchaser, transferee or assignee must show financial responsibility as determined by the City and must agree to comply with all provisions of a franchise, including any provisions which the City may amend or add prior to approval of the transfer.
- For the purpose of determining whether it shall consent to such change, transfer or acquisition of control, the City may inquire into all qualifications of the prospective controlling party, and a franchisee shall assist the City in any such inquiry. The City may require any reasonable conditions which it deems necessary at the time of review to ensure that the cable system will satisfy the public interest of the City and its citizens for the balance of the term of a franchise.
- SMC 10.27A.240 shall apply to any transfer as if the transferee were an applicant for a new franchise.
Date Passed: Monday, June 4, 2007 Effective Date: Wednesday, July 11, 2007 ORD C34041 Section 1 (Recodification) |
|
