§ 521-8 Franchise Termination | Humboldt County Code

521-8. Franchise Termination.

(a) Franchise Revocation – Equipment Use by County. In the event of suspension or revocation of a franchise, the County shall have the right forthwith to take possession of all trucks and other equipment of the franchisee for the purpose of collecting and disposing of the refuse and performing all other duties which the franchisee is obligated to perform. The County shall have the right to retain possession of such trucks and equipment until other suitable trucks and equipment can be purchased or otherwise acquired by the County for such purpose. The County shall pay the franchisee a reasonable rental for the use of such trucks and equipment.

(b) Franchise Revocation – Grounds. The County may suspend, amend or revoke any franchise granted by the Board if it finds that the franchisee has demonstrated an inability to properly perform the franchised activity, failed to comply with one (1) or more of the terms or conditions of the franchise agreement, failed to comply with any material Federal, State or local laws, ordinances, rules or regulations pertaining to the franchised activity, or when the franchised activity has become a nuisance or is detrimental to the public health, safety or welfare. If franchisee does not perform franchise services for a period in excess of ninety (90) days, the franchise may be revoked by the County.

Prior to suspending, amending or revoking a franchise granted by the Board, the County shall provide the franchisee with written notice of the proposed action and the reasons for it. The notice shall state that prior to the suspension, amendment or revocation, the franchisee is entitled to a hearing before the County if the franchisee requests such a hearing in writing and the request is received by the County not more than ten (10) days after notice of the proposed action has been mailed to the franchisee.

If the County does not receive a written request for a hearing within the time period prescribed above, the franchisee is deemed to have waived the right to a hearing and the County may immediately suspend, amend or revoke the franchise on the terms specified in the notice.

In the event of a serious violation, as determined by the County, or in the event of repeated violations of this chapter, a franchise shall be revoked by the Board.

(c) Disclosure Statement. A responsible party who currently holds or applies for a franchise from the County shall file a disclosure statement which contains the following information:

(1) A listing of all responsible parties to the franchise agreement (if a responsible party is a natural person, the disclosure statement shall include the name, address, and social security or tax identification number (optional) of the responsible party);

(2) A listing of all felony convictions or pleas of nolo contendere of the responsible party by final judgement in any State or Federal court within the preceding three (3) years;

(3) A listing of any instances in which a permit or contract held by the responsible party was revoked by a final judgement in any State or Federal court within the preceding three (3) years;

(4) A listing of all final adjudications finding any responsible party in contempt of any State or Federal court order enforcing any State and Federal law within the preceding three (3) years;

(5) A listing of all final convictions or pleas of nolo contendere of the responsible party, under State or local laws governing safety of operations, compliance with environmental and other franchise requirements in the County, whether misdemeanors or infractions.

If a responsible party is a chartered lending institution or a publicly held company or a wholly owned subsidiary of such a company required to file annual or quarterly reports under the Securities Exchange Act of 1934 or the chartering body, as may be the case, an applicant/grantee may provide the above required information by submitting quarterly or annual reports for the preceding three (3) years. If these reports are incomplete or if they fail to contain the information requested in subsections (c)(1) through (5) of this section, the applicant/grantee shall make such information available to the County. The County may also require, at applicant’s/grantee’s expense, preparation and submittal of a Dun and Bradstreet report.

A responsible party who holds a current franchise from the County for which a disclosure statement was submitted, shall file a supplemental disclosure statement only to the extent that the responsible parties or the status or events differ from those covered by the original disclosure statement.

(1) The Board may refuse to issue or renew a franchise, or refuse to approve the transfer of such a franchise, if the Board finds by a preponderance of evidence that the responsible party has:

(A) Intentionally misrepresented or concealed any material fact in the disclosure statement;

(B) Obtained a license, permit, contract or franchise from the County by intentional misrepresentation or concealment of a material fact;

(C) Been convicted of a felony or pleaded guilty or nolo contendere to a felony involving the laws of any State or the Federal government within the three (3) years preceding the issuance of the license or permit, or execution of the contract or franchise agreement;

(D) Been adjudicated in contempt of an order of any court enforcing laws of this State or the Federal government within three (3) years preceding the issuance of the license or permit, or execution of the contract or franchise agreement; or

(E) Disregarded the public safety, as evidenced by convictions or pleas of nolo contendere to the violation of State and local law governing safety of operations, compliance with environmental and other franchise requirements within the County.

(2) In deciding whether to issue, renew or allow transfer of a franchise, the Board shall consider the facts and mitigating factors surrounding the foregoing including:

(A) The relevance of the offense to the business for which the license, permit, contract or franchise is issued;

(B) The nature and seriousness of the offense;

(D) The date of the offense; and

(E) The ownership and management structure in place at the time of the offense.

The Department shall recommend to the Board whether the responsible party is fit to obtain the franchise from the County within sixty (60) days following the responsible party’s submittal of the disclosure form; in the case of transfer or renewal of a franchise, thirty (30) days prior to the expiration of an existing franchise agreement, whichever is earlier. Failure by the Department to make a recommendation regarding responsible party’s fitness for renewal or transfer, within the time frame indicated above, shall in no case result in the revocation of the franchise, an order to cease operations, or a termination of the franchise agreement.

(e) Opportunity to Demonstrate Rehabilitation. In determining whether to recommend approval to the Board of a franchise or allow a renewal or transfer of a franchise agreement, the County shall first allow the responsible party to submit evidence of rehabilitation and shall consider the responsible party’s efforts to prevent recurrence of unlawful activity. Items to be considered by the County shall include:

(1) The responsible party’s record and history of implementing successful corrective actions undertaken to prevent or minimize the likelihood of recurrence of the offense;

(2) Whether the offense was an isolated incident or a series of related incidents;

(3) Whether the responsible party cooperated with government bodies during investigations;

(4) The number and types of permits, contracts or franchises held by the responsible party;

(5) Implementation by the responsible party of formal policies, training programs and management controls to substantially minimize or prevent the occurrence of future violations or unlawful activities;

(6) Implementation by the responsible party of an environmental compliance auditing program to assess and monitor the adequacy of the internal systems to ensure compliance with environmental laws, regulations and conditions set forth in the franchise agreement;

(7) The responsible party’s discharge of individuals, or severance of the interest of or affiliation with responsible parties, which would otherwise cause the County to deny the renewal, transfer or refuse to enter into the franchise agreement; and

(8) Consideration of the need for the franchise agreement in advancing the County’s welfare, health and prosperity.

Where the Department determines that, pursuant to the above, mitigating factors exist, or, pursuant to this section, that the responsible party has demonstrated rehabilitation, the Department shall recommend to the Board issuance, renewal or transfer of the franchise agreement. (Repealed and reenacted by Ord. 2696, § 2, 6/14/2022)