Section 15-1739. Revocation of license

1.  The department may by resolution terminate and revoke any license,
  issued pursuant to the provisions of title 17 of this  article  for  the
  following reasons:
    a.   Failure   of  the  licensee  to  commence,  advance  or  complete
  construction of the project works within the time fixed therefor, unless
  the time be extended by the department; or
    b. Failure of the licensee to pay, at the time or  times  provided  in
  the  license,  the charge or rental provided for in the license or fixed
  pursuant to law; or
    c. Failure of the licensee promptly to comply with any of  the  terms,
  conditions  or provisions of title 17 of this article or of the license,
  or with any direction, order, rule or regulation given or  made  by  the
  department or otherwise, pursuant to the license or provisions of law.
    2.  No  action  terminating or revoking a license shall be taken until
  the licensee is afforded an opportunity to appear before the  department
  and  be  heard  with  respect  thereto. Ten days' notice of the time and
  place of the meeting of the department  at  which  the  action  will  be
  considered shall be given to the licensee.
    3. In case the department revokes a license as herein provided because
  of  the  failure  of  the  licensee  in  good  faith  to commence actual
  construction of the project works or any specified part  thereof  within
  the  required  time,  the  licensee  shall  not  recover  any damages or
  compensation from the state because of such revocation.
    4. If the license is terminated or revoked, the  state  may  elect  to
  take  any  and  all  interest  of  the licensee in and to state property
  covered by the license including all works and structures thereon.
    5. In such event the department may, subject to the making of adequate
  appropriation therefor, provide by written agreement for the payment  to
  the  licensee  of the amount of the enhancement in value, if any, of the
  state property which is  covered  by  the  license  resulting  from  any
  improvements  of  the  same  made  or  effected  by  the  licensee,  not
  exceeding, however, the reconstruction cost, which recovery in the  case
  of  termination  and revocation pursuant to paragraph a of subdivision 1
  of this section shall not include or be affected by any organization  or
  other  expenditures  preliminary to actual construction work, and in the
  case of termination and revocation pursuant to paragraphs  b  and  c  of
  subdivision  1  of  this section shall be less a deduction equal to that
  portion, if any, of the aggregate income from the project over and above
  actual and reasonable expenses of operation,  including  repairs,  which
  shall  exceed an amount equal to eight per centum per annum, to the time
  that the state property is taken over by the state, of  the  actual  and
  reasonable cost to the licensee of the lands and interests in lands, the
  actual  and reasonable cost to the licensee of the ways, means and works
  and the allowance made for organization and development expenses. If the
  amount involved does not exceed the indebtedness which may  be  lawfully
  incurred  for such purposes without an appropriation, such agreement may
  provide for the payment thereof before an appropriation is made.
    6. In the event that the licensee and the  department  are  unable  to
  agree  upon  the  amount  of  damages  payable  to the licensee as above
  provided, and the same does not exceed the  indebtedness  which  may  be
  lawfully  incurred, for such purpose without an appropriation being made
  therefor, the licensee may recover from the state in the Court of Claims
  the amount of enhanced value, if any, of the licensed property owned  by
  the  state, resulting from any and all existing improvements of the same
  made  or  effected  by  the  licensee,  not  exceeding,   however,   the
  reconstruction  cost,  less  depreciation  thereof  as  limited above to
  proceedings pursuant to the provisions of paragraph a of subdivision  1,

  or less deduction as stated above for proceedings pursuant to paragraphs
  b  and  c  of  subdivision  1. If the amount of damages shall exceed the
  amount of such lawful indebtedness, the revocation shall not take effect
  until  an adequate appropriation has been made therefor and in such case
  damages may be in like manner recovered in the Court of Claims.
    7. The Attorney General at the request of the department may institute
  appropriate actions or proceedings in the Supreme Court in any  judicial
  district of the state or in any court of competent jurisdiction to carry
  into effect the resolution of the department revoking any license and to
  remove  from  state  property covered by the license, any licensee whose
  license has been revoked.