(A) Should the State of California or any agency thereof, the United States or any federal agency or any state or federal court require either the Agency, county, municipalities or a franchisee to act in a manner which is inconsistent with any provisions of the franchise documents relating to any franchise or withdraw or otherwise impair the authority of the Agency to act in respect to the provisions of the franchise documents relating to any franchise, the Board of Directors of the Agency shall be authorized to determine whether a material provision of the franchise documents is affected in relation to the rights and benefits conferred by the franchise documents upon the Agency, county, municipalities or the public.
(B) Upon the determination, the franchise documents shall be subject to modification or amendment to the extent as may be reasonably necessary to carry out the full intent and purposes thereof in relation to the rights and benefits of the Agency, county, municipalities or the public and in relation to the state, federal or judicial requirement. The Board of Directors of the Agency may terminate a franchise issued pursuant to the provisions of this chapter if it determines after consultation with the franchisee that substantial and material compliance with the franchise documents in relation to the rights or benefits of the Agency, county, municipalities or the public has been frustrated by such a state, federal or judicial requirement.
