Article 4. Duties And Liabilities Of Grantee of California Public Utilities Code >> Division 3. >> Chapter 2. >> Article 4.
If the grantee of any franchise granted under this chapter
fails, neglects or refuses to comply with any of the provisions or
conditions prescribed in this chapter, and does not within ten (10)
days after written demand for compliance begin the work of
compliance, or after such beginning does not prosecute the work with
due diligence to completion, the municipality, by its legislative
body, may declare the franchise forfeited.
Any municipality may sue in its own name for the forfeiture
of any franchise granted pursuant to this chapter, in the event of
noncompliance with any of the conditions thereof by the grantee, its
successors, or assigns.
The grantee shall pay to the municipality a sum of money
sufficient to reimburse it for all publication expenses incurred by
it in connection with the granting of the franchise. Such payment
shall be made within thirty (30) days after the municipality
furnishes the grantee with a written statement of the expenses.
The grantee of a franchise under this chapter shall
construct, install, and maintain all pipes, conduits, poles, wires,
and appurtenances in accordance and in conformity with all of the
ordinances and rules adopted by the legislative body of the
municipality in the exercise of its police powers and not in conflict
with the paramount authority of the State, and, as to state
highways, subject to the laws relating to the location and
maintenance of such facilities therein.
The grantee shall pay to the municipality on demand the cost
of all repairs to public property made necessary by any of the
operations of the grantee under the franchise.
The grantee shall indemnify and hold harmless the
municipality and its officers from all liability for damages
proximately resulting from any operations under the franchise.
The grantee shall remove or relocate without expense to the
municipality any facilities installed, used, and maintained under the
franchise if and when made necessary by any lawful change of grade,
alignment, or width of any public street, way, alley, or place,
including the construction of any subway or viaduct, by the
The grantee shall file with the legislative body of the
municipality within thirty (30) days after any sale, transfer,
assignment, or lease of the franchise or any part thereof, or any of
the rights or privileges granted thereby, written evidence of the
transaction certified to by the grantee or its duly authorized
The grantee shall file with the clerk of the municipality,
within three (3) months after the expiration of the calendar year, or
fractional calendar year, following the date of the granting of the
franchise and within three (3) months after the expiration of each
calendar year thereafter, a verified statement showing in detail the
total gross receipts of the grantee, its successors, or assigns
during the preceding calendar year or fractional calendar year from
the sale of the utility service for which the franchise was granted.
The grantee shall pay to the municipality within fifteen (15)
days after the time for filing its statement of gross receipts, in
lawful money of the United States, the specified percentage of its
gross receipts for the calendar year or fractional calendar year
covered by the statement. Any neglect, omission, or refusal by the
grantee to file the verified statement, or to pay the percentage at
the times or in the manner provided constitutes grounds for the
declaration of a forfeiture of the franchise and of all rights
(a) The grantee of a franchise under this chapter may be
required to file a bond running to the municipality approved by the
legislative body, in a penal sum prescribed by the legislative body
and set forth in the resolution of intention to grant the franchise,
conditioned that the grantee shall well and truly observe, fulfill,
and perform each term and condition of the franchise, and that in
case of any breach of condition of the bond the amount of the penal
sum therein named shall be recoverable.
(b) The bond, if required by the legislative body, shall be filed
with the legislative body within five days after the date of the
granting of the franchise. If the bond is not so filed, or does not
receive the approval of the legislative body, the franchise may be
refused or forfeited and any money paid to the municipality in
connection therewith shall be retained by the municipality.
The grantee of a franchise under this chapter shall be liable
to the granting municipality for all damages proximately resulting
from the failure of the grantee well and faithfully to observe and
perform any provision of the franchise and any provision of this