{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/15.2-2108.1_1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/15.2-2108.1_1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/15.2-2108.1_1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/15.2-2108.1_1.html"}],"law_id":55412,"edition_id":1,"section_id":55412,"structure_id":14214,"section_number":"15.2-2108.1:1","catch_line":"Franchise fees and public rights-of-way fees on cable operators","history":"2006, c. 780.","full_text":"A\n\nAs used in this section:\n\t\t\t“Cable operator” means any person or group of persons that (i) provides cable service over a cable system and directly or through one or more affiliates owns a significant interest in such cable system or (ii) otherwise controls or is responsible for, through any arrangement, the management and operation of a cable system, whether or not the operator has entered into a franchise agreement with a locality. Cable operator does not include a provider of wireless or direct-to-home satellite transmission service.\n\t\t\t“Cable service” means the one-way transmission to subscribers of (i) video programming as defined in 47 U.S.C. § 522 (20) or (ii) other programming service, and subscriber interaction, if any, which is required for the selection of such video programming or other programming service. Cable service does not include any video programming provided by a commercial mobile service provider as defined in 47 U.S.C. § 332 (d) and any direct-to-home satellite service as defined in 47 U.S.C. § 303 (v).\n\t\t\t“Cable system” or “cable television system” means any facility consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service that includes video programming and that is provided to multiple subscribers within a community, except that such definition shall not include (i) a system that serves fewer than 20 subscribers; (ii) a facility that serves only to retransmit the television signals of one or more television broadcast stations; (iii) a facility that serves only subscribers without using any public right-of-way; (iv) a facility of a common carrier that is subject, in whole or in part, to the provisions of Title II of the Communications Act of 1934, 47 U.S.C. § 201 et seq., except that such facility shall be considered a cable system to the extent such facility is used in the transmission of video programming directly to subscribers, unless the extent of such use is solely to provide interactive on-demand services; (v) any facilities of any electric utility used solely for operating its electric systems; (vi) any portion of a system that serves fewer than 50 subscribers in any locality, where such portion is a part of a larger system franchised in an adjacent locality; or (vii) an open video system that complies with § 653 of Title VI of the Communications Act of 1934, as amended, 47 U.S.C. § 573.\n\t\t\t“Franchise” means an initial authorization, or renewal thereof, issued by a franchising authority, including a locality or the Commonwealth Transportation Board, whether such authorization is designated as a franchise, permit, license, resolution, contract, certificate, agreement, or otherwise, that authorizes the construction or operation of a cable system, a telecommunications system, or other facility in the public rights-of-way, including either a negotiated cable franchise or an ordinance cable franchise.B\n\nNotwithstanding any other provision of law, if a cable operator uses the public rights-of-way the cable operator shall be subject to the Public Rights-of-Way Use Fee as provided in § 56-468.1. Any limitation as to fees charged for the use of the public rights-of-way shall not be applicable to pole attachments and conduit occupancy agreements between a cable operator and a locality or its authority or commission, which permits such operator to use the public poles or conduits.C\n\nNotwithstanding any other provision of law, no new or renewed cable franchise entered into on or after January 1, 2007, shall include a franchise fee as long as cable services are subject to the Virginia Communications Sales and Use Tax (\u00a7 58.1-645 et seq.). Franchise fee as used in this subsection shall have the same meaning as that term is defined in 47 U.S.C. \u00a7 542 (g).1\n\nAll cable franchises in effect as of January 1, 2007, shall remain in full force and effect, and nothing in this section shall impair any obligation of any such agreement; provided, however, that any requirement in such an existing franchise for payment of a monetary franchise fee based on the gross revenues of the franchisee shall be fulfilled in the manner specified in subdivision 2.2\n\nEach cable operator owing monetary payments for franchise fees, until the expiration of one or more such existing franchises, shall include with its monthly remittance of the Communications Sales and Use Tax a report, by locality, of the amounts due for franchise fees accruing during that month. The Department of Taxation shall, on behalf of the cable operator in the relevant locality, then distribute to each county, city, or town the amount reported by each locality’s franchisee(s). Such payments shall reduce the cable operator’s franchise fee liability. The monthly distributions shall be paid from the Communications Sales and Use Tax Trust Fund before making the other calculations and distributions required by § 58.1-662. Until distributed to the individual localities, such amounts shall be deemed to be held in trust for their respective accounts.3\n\nA locality’s acceptance of any payment under subdivision 2 shall not prejudice any rights of the locality under the applicable cable franchises (i) to audit or demand adjustment of the amounts reported by its franchisee, or (ii) to enforce the provisions of the franchise by any lawful administrative or judicial means.","order_by":null,"text":{"0":{"id":203157,"text":"As used in this section:\n\t\t\t“Cable operator” means any person or group of persons that (i) provides cable service over a cable system and directly or through one or more affiliates owns a significant interest in such cable system or (ii) otherwise controls or is responsible for, through any arrangement, the management and operation of a cable system, whether or not the operator has entered into a franchise agreement with a locality. Cable operator does not include a provider of wireless or direct-to-home satellite transmission service.\n\t\t\t“Cable service” means the one-way transmission to subscribers of (i) video programming as defined in 47 U.S.C. § 522 (20) or (ii) other programming service, and subscriber interaction, if any, which is required for the selection of such video programming or other programming service. Cable service does not include any video programming provided by a commercial mobile service provider as defined in 47 U.S.C. § 332 (d) and any direct-to-home satellite service as defined in 47 U.S.C. § 303 (v).\n\t\t\t“Cable system” or “cable television system” means any facility consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service that includes video programming and that is provided to multiple subscribers within a community, except that such definition shall not include (i) a system that serves fewer than 20 subscribers; (ii) a facility that serves only to retransmit the television signals of one or more television broadcast stations; (iii) a facility that serves only subscribers without using any public right-of-way; (iv) a facility of a common carrier that is subject, in whole or in part, to the provisions of Title II of the Communications Act of 1934, 47 U.S.C. § 201 et seq., except that such facility shall be considered a cable system to the extent such facility is used in the transmission of video programming directly to subscribers, unless the extent of such use is solely to provide interactive on-demand services; (v) any facilities of any electric utility used solely for operating its electric systems; (vi) any portion of a system that serves fewer than 50 subscribers in any locality, where such portion is a part of a larger system franchised in an adjacent locality; or (vii) an open video system that complies with § 653 of Title VI of the Communications Act of 1934, as amended, 47 U.S.C. § 573.\n\t\t\t“Franchise” means an initial authorization, or renewal thereof, issued by a franchising authority, including a locality or the Commonwealth Transportation Board, whether such authorization is designated as a franchise, permit, license, resolution, contract, certificate, agreement, or otherwise, that authorizes the construction or operation of a cable system, a telecommunications system, or other facility in the public rights-of-way, including either a negotiated cable franchise or an ordinance cable franchise.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":203158,"text":"Notwithstanding any other provision of law, if a cable operator uses the public rights-of-way the cable operator shall be subject to the Public Rights-of-Way Use Fee as provided in § 56-468.1. Any limitation as to fees charged for the use of the public rights-of-way shall not be applicable to pole attachments and conduit occupancy agreements between a cable operator and a locality or its authority or commission, which permits such operator to use the public poles or conduits.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":203159,"text":"Notwithstanding any other provision of law, no new or renewed cable franchise entered into on or after January 1, 2007, shall include a franchise fee as long as cable services are subject to the Virginia Communications Sales and Use Tax (\u00a7 58.1-645 et seq.). Franchise fee as used in this subsection shall have the same meaning as that term is defined in 47 U.S.C. \u00a7 542 (g).","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":203160,"text":"All cable franchises in effect as of January 1, 2007, shall remain in full force and effect, and nothing in this section shall impair any obligation of any such agreement; provided, however, that any requirement in such an existing franchise for payment of a monetary franchise fee based on the gross revenues of the franchisee shall be fulfilled in the manner specified in subdivision 2.","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":203161,"text":"Each cable operator owing monetary payments for franchise fees, until the expiration of one or more such existing franchises, shall include with its monthly remittance of the Communications Sales and Use Tax a report, by locality, of the amounts due for franchise fees accruing during that month. The Department of Taxation shall, on behalf of the cable operator in the relevant locality, then distribute to each county, city, or town the amount reported by each locality’s franchisee(s). Such payments shall reduce the cable operator’s franchise fee liability. The monthly distributions shall be paid from the Communications Sales and Use Tax Trust Fund before making the other calculations and distributions required by § 58.1-662. Until distributed to the individual localities, such amounts shall be deemed to be held in trust for their respective accounts.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"5":{"id":203162,"text":"A locality’s acceptance of any payment under subdivision 2 shall not prejudice any rights of the locality under the applicable cable franchises (i) to audit or demand adjustment of the amounts reported by its franchisee, or (ii) to enforce the provisions of the franchise by any lawful administrative or judicial means.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2"}},"ancestry":[{"id":14214,"edition_id":1,"name":"Franchises; Sale and Lease of Certain Public Property","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":13192,"metadata":{},"date_created":"2026-06-26 03:47:18","date_modified":"2026-06-26 03:47:18","permalink":{"id":154335,"object_type":"structure","relational_id":14214,"identifier":"1","token":"15.2\/II\/21\/1","url":"\/15.2\/II\/21\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13192,"edition_id":1,"name":"Franchises; Sale and Lease of Certain Municipal Public Property; Public Utilities","identifier":"21","label":"chapter","depth":3,"order_by":1,"parent_id":12733,"metadata":{},"date_created":"2026-06-26 03:44:25","date_modified":"2026-06-26 03:44:25","permalink":{"id":154333,"object_type":"structure","relational_id":13192,"identifier":"21","token":"15.2\/II\/21","url":"\/15.2\/II\/21\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12733,"edition_id":1,"name":"Powers of Local Government","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12720,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":152369,"object_type":"structure","relational_id":12733,"identifier":"II","token":"15.2\/II","url":"\/15.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12720,"edition_id":1,"name":"Counties, Cities and Towns","identifier":"15.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":151279,"object_type":"structure","relational_id":12720,"identifier":"15.2","token":"15.2","url":"\/15.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":71724,"structure_id":14214,"section_number":"15.2-2100","catch_line":"Restrictions on selling certain municipal public property and granting franchises","url":"\/15.2-2100\/","token":"15.2\/II\/21\/1\/15.2-2100","metadata":false},{"id":68887,"structure_id":14214,"section_number":"15.2-2101","catch_line":"Ordinance proposing grant of franchise, etc., to be advertised","url":"\/15.2-2101\/","token":"15.2\/II\/21\/1\/15.2-2101","metadata":false},{"id":86585,"structure_id":14214,"section_number":"15.2-2102","catch_line":"How bids received and to whom franchise awarded","url":"\/15.2-2102\/","token":"15.2\/II\/21\/1\/15.2-2102","metadata":false},{"id":59673,"structure_id":14214,"section_number":"15.2-2103","catch_line":"Award when no satisfactory bid received","url":"\/15.2-2103\/","token":"15.2\/II\/21\/1\/15.2-2103","metadata":false},{"id":73557,"structure_id":14214,"section_number":"15.2-2103.1","catch_line":"Solar services agreements; nondisclosure of proprietary information","url":"\/15.2-2103.1\/","token":"15.2\/II\/21\/1\/15.2-2103.1","metadata":false},{"id":56639,"structure_id":14214,"section_number":"15.2-2104","catch_line":"Bond of person awarded franchise, etc","url":"\/15.2-2104\/","token":"15.2\/II\/21\/1\/15.2-2104","metadata":false},{"id":70043,"structure_id":14214,"section_number":"15.2-2105","catch_line":"How amendments made to franchise, etc.; notice required","url":"\/15.2-2105\/","token":"15.2\/II\/21\/1\/15.2-2105","metadata":false},{"id":69573,"structure_id":14214,"section_number":"15.2-2105.1","catch_line":"Granting franchises for operation of a vehicular ferry transportation system","url":"\/15.2-2105.1\/","token":"15.2\/II\/21\/1\/15.2-2105.1","metadata":false},{"id":76839,"structure_id":14214,"section_number":"15.2-2106","catch_line":"Powers of court to enforce obedience by mandamus, etc","url":"\/15.2-2106\/","token":"15.2\/II\/21\/1\/15.2-2106","metadata":false},{"id":62360,"structure_id":14214,"section_number":"15.2-2107","catch_line":"Persons occupying or using streets, etc., contrary to law","url":"\/15.2-2107\/","token":"15.2\/II\/21\/1\/15.2-2107","metadata":false},{"id":58214,"structure_id":14214,"section_number":"15.2-2108","catch_line":"Repealed","url":"\/15.2-2108\/","token":"15.2\/II\/21\/1\/15.2-2108","metadata":false},{"id":74917,"structure_id":14214,"section_number":"15.2-2108.1","catch_line":"Regulation of open video systems","url":"\/15.2-2108.1\/","token":"15.2\/II\/21\/1\/15.2-2108.1","metadata":false},{"id":55412,"structure_id":14214,"section_number":"15.2-2108.1:1","catch_line":"Franchise fees and public rights-of-way fees on cable operators","url":"\/15.2-2108.1_1\/","token":"15.2\/II\/21\/1\/15.2-2108.1_1","metadata":false}],"previous_section":{"id":74917,"structure_id":14214,"section_number":"15.2-2108.1","catch_line":"Regulation of open video systems","url":"\/15.2-2108.1\/","token":"15.2\/II\/21\/1\/15.2-2108.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/15.2-2108.1:1\/","history_text":"

This law was first created in 2006. The record of its establishment is cataloged in chapter 780<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":82086,"section_number":"55.1-306.1","catch_line":"Utility easements; expansion of broadband","order_by":null,"url":"\/55.1-306.1\/"},{"id":75664,"section_number":"56-468.1","catch_line":"(Contingent expiration -- see Editor's note) Public Rights-of-Way Use Fee","order_by":null,"url":"\/56-468.1\/"}],"refers_to":[{"id":75664,"section_number":"56-468.1","catch_line":"(Contingent expiration -- see Editor's note) Public Rights-of-Way Use Fee","order_by":null,"url":"\/56-468.1\/"},{"id":69283,"section_number":"58.1-645","catch_line":"Short title","order_by":null,"url":"\/58.1-645\/"},{"id":72514,"section_number":"58.1-662","catch_line":"Disposition of communications sales and use tax revenue; Communications Sales and Use Tax Trust Fund; localities' share","order_by":null,"url":"\/58.1-662\/"}],"permalink":{"id":154385,"object_type":"law","relational_id":55412,"identifier":"15.2-2108.1:1","token":"15.2\/II\/21\/1\/15.2-2108.1_1","url":"\/15.2-2108.1_1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/15.2-2108.1_1\/","token":"15.2\/II\/21\/1\/15.2-2108.1_1","dublin_core":{"Title":"Franchise fees and public rights-of-way fees on cable operators","Type":"Text","Format":"text\/html","Identifier":"\u00a7 15.2-2108.1:1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Cable operator<\/span>” means any person or group of persons that (i) provides cable service<\/span> over a cable system<\/span> and directly or through one or more affiliates owns a significant interest in such cable system<\/span> or (ii) otherwise controls or is responsible for, through any arrangement, the management and operation of a cable system<\/span>, whether or not the operator has entered into a franchise<\/span> agreement with a locality<\/span>. Cable operator<\/span> does not include a provider of wireless or direct-to-home satellite transmission service.\n\t\t\t“Cable service<\/span>” means the one-way transmission to subscribers of (i) video programming as defined in 47 U.S.C. § 522 (20) or (ii) other programming service, and subscriber interaction, if any, which is required for the selection of such video programming or other programming service. Cable service<\/span> does not include any video programming provided by a commercial mobile service provider as defined in 47 U.S.C. § 332 (d) and any direct-to-home satellite service as defined in 47 U.S.C. § 303 (v).\n\t\t\t“Cable system<\/span>” or “cable television system<\/span>” means any facility consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service<\/span> that includes video programming and that is provided to multiple subscribers within a community, except that such definition shall not include (i) a system that serves fewer than 20 subscribers; (ii) a facility that serves only to retransmit the television signals of one or more television broadcast stations; (iii) a facility that serves only subscribers without using any public right-of-way; (iv) a facility of a common carrier that is subject, in whole or in part, to the provisions of Title II of the Communications Act of 1934, 47 U.S.C. § 201 et seq., except that such facility shall be considered a cable system<\/span> to the extent such facility is used in the transmission of video programming directly to subscribers, unless the extent of such use is solely to provide interactive on-demand services; (v) any facilities of any electric utility used solely for operating its electric systems; (vi) any portion of a system that serves fewer than 50 subscribers in any locality<\/span>, where such portion is a part of a larger system franchised in an adjacent locality<\/span>; or (vii) an open video system that complies with § 653 of Title VI of the Communications Act of 1934, as amended, 47 U.S.C. § 573.\n\t\t\t“Franchise<\/span>” means an initial authorization, or renewal thereof, issued by a franchising authority, including a locality<\/span> or the Commonwealth Transportation Board, whether such authorization is designated as a franchise<\/span>, permit, license, resolution, contract<\/span>, certificate, agreement, or otherwise, that authorizes the construction or operation of a cable system<\/span>, a telecommunications system, or other facility in the public rights-of-way, including either a negotiated cable franchise<\/span> or an ordinance<\/span> cable franchise<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Notwithstanding any other provision of law<\/span>, if a cable operator<\/span> uses the public rights-of-way the cable operator<\/span> shall be subject to the Public Rights-of-Way Use Fee as provided in § 56-468.1<\/a>. Any limitation as to fees charged for the use of the public rights-of-way shall not be applicable to pole attachments<\/span> and conduit occupancy agreements between a cable operator<\/span> and a locality<\/span> or its authority or commission, which permits such operator to use the public poles or conduits. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Notwithstanding any other provision of law<\/span>, no new or renewed cable franchise<\/span> entered into on or after January 1, 2007, shall include a franchise<\/span> fee as long as cable services<\/span> are subject to the Virginia Communications Sales and Use Tax (\u00a7 58.1-645<\/a> et seq.). Franchise<\/span> fee as used in this subsection shall have the same meaning as that term is defined in 47 U.S.C. \u00a7 542 (g). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> All cable franchises<\/span> in effect as of January 1, 2007, shall remain in full force and effect, and nothing in this section shall impair any obligation of any such agreement; provided, however, that any requirement in such an existing franchise<\/span> for payment of a monetary franchise<\/span> fee based on the gross revenues of the franchisee shall be fulfilled in the manner specified in subdivision 2. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Each cable operator<\/span> owing monetary payments for franchise<\/span> fees, until the expiration of one or more such existing franchises<\/span>, shall include with its monthly remittance of the Communications Sales and Use Tax a report, by locality<\/span>, of the amounts due for franchise<\/span> fees accruing during that month. The Department of Taxation shall, on behalf of the cable operator<\/span> in the relevant locality<\/span>, then distribute to each county<\/span>, city<\/span>, or town<\/span> the amount reported by each locality<\/span>’s franchisee(s). Such payments shall reduce the cable operator<\/span>’s franchise<\/span> fee liability. The monthly distributions shall be paid from the Communications Sales and Use Tax Trust Fund before making the other calculations and distributions required by § 58.1-662<\/a>. Until distributed to the individual localities, such amounts shall be deemed to be held in trust for their respective accounts. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A locality<\/span>’s acceptance of any payment under subdivision 2 shall not prejudice any rights of the locality<\/span> under the applicable cable franchises<\/span> (i) to audit or demand adjustment of the amounts reported by its franchisee, or (ii) to enforce the provisions of the franchise<\/span> by any lawful administrative or judicial means. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFRANCHISE FEES AND PUBLIC RIGHTS-OF-WAY FEES ON CABLE OPERATORS (\u00a7\n15.2-2108.1:1)\n\nA. As used in this section:\n\t\t\t“Cable operator” means any person or group of persons that (i)\nprovides cable service over a cable system and directly or through one or more\naffiliates owns a significant interest in such cable system or (ii) otherwise\ncontrols or is responsible for, through any arrangement, the management and\noperation of a cable system, whether or not the operator has entered into a\nfranchise agreement with a locality. Cable operator does not include a provider\nof wireless or direct-to-home satellite transmission service.\n\t\t\t“Cable service” means the one-way transmission to subscribers of\n(i) video programming as defined in 47 U.S.C. § 522 (20) or (ii) other\nprogramming service, and subscriber interaction, if any, which is required for\nthe selection of such video programming or other programming service. Cable\nservice does not include any video programming provided by a commercial mobile\nservice provider as defined in 47 U.S.C. § 332 (d) and any direct-to-home\nsatellite service as defined in 47 U.S.C. § 303 (v).\n\t\t\t“Cable system” or “cable television system” means any\nfacility consisting of a set of closed transmission paths and associated signal\ngeneration, reception, and control equipment that is designed to provide cable\nservice that includes video programming and that is provided to multiple\nsubscribers within a community, except that such definition shall not include\n(i) a system that serves fewer than 20 subscribers; (ii) a facility that serves\nonly to retransmit the television signals of one or more television broadcast\nstations; (iii) a facility that serves only subscribers without using any public\nright-of-way; (iv) a facility of a common carrier that is subject, in whole or\nin part, to the provisions of Title II of the Communications Act of 1934, 47\nU.S.C. § 201 et seq., except that such facility shall be considered a cable\nsystem to the extent such facility is used in the transmission of video\nprogramming directly to subscribers, unless the extent of such use is solely to\nprovide interactive on-demand services; (v) any facilities of any electric\nutility used solely for operating its electric systems; (vi) any portion of a\nsystem that serves fewer than 50 subscribers in any locality, where such portion\nis a part of a larger system franchised in an adjacent locality; or (vii) an\nopen video system that complies with § 653 of Title VI of the\nCommunications Act of 1934, as amended, 47 U.S.C. § 573.\n\t\t\t“Franchise” means an initial authorization, or renewal thereof,\nissued by a franchising authority, including a locality or the Commonwealth\nTransportation Board, whether such authorization is designated as a franchise,\npermit, license, resolution, contract, certificate, agreement, or otherwise,\nthat authorizes the construction or operation of a cable system, a\ntelecommunications system, or other facility in the public rights-of-way,\nincluding either a negotiated cable franchise or an ordinance cable franchise.\n\nB. Notwithstanding any other provision of law, if a cable operator uses the\npublic rights-of-way the cable operator shall be subject to the Public\nRights-of-Way Use Fee as provided in § 56-468.1. Any limitation as to fees\ncharged for the use of the public rights-of-way shall not be applicable to pole\nattachments and conduit occupancy agreements between a cable operator and a\nlocality or its authority or commission, which permits such operator to use the\npublic poles or conduits.\n\nC. Notwithstanding any other provision of law, no new or renewed cable franchise\nentered into on or after January 1, 2007, shall include a franchise fee as long\nas cable services are subject to the Virginia Communications Sales and Use Tax\n(\u00a7 58.1-645 et seq.). Franchise fee as used in this subsection shall have the\nsame meaning as that term is defined in 47 U.S.C. \u00a7 542 (g).\n\n 1. All cable franchises in effect as of January 1, 2007, shall remain in full\n force and effect, and nothing in this section shall impair any obligation of\n any such agreement; provided, however, that any requirement in such an\n existing franchise for payment of a monetary franchise fee based on the gross\n revenues of the franchisee shall be fulfilled in the manner specified in\n subdivision 2.\n\n 2. Each cable operator owing monetary payments for franchise fees, until the\n expiration of one or more such existing franchises, shall include with its\n monthly remittance of the Communications Sales and Use Tax a report, by\n locality, of the amounts due for franchise fees accruing during that month.\n The Department of Taxation shall, on behalf of the cable operator in the\n relevant locality, then distribute to each county, city, or town the amount\n reported by each locality’s franchisee(s). Such payments shall reduce\n the cable operator’s franchise fee liability. The monthly distributions\n shall be paid from the Communications Sales and Use Tax Trust Fund before\n making the other calculations and distributions required by § 58.1-662.\n Until distributed to the individual localities, such amounts shall be deemed\n to be held in trust for their respective accounts.\n\n 3. A locality’s acceptance of any payment under subdivision 2 shall not\n prejudice any rights of the locality under the applicable cable franchises (i)\n to audit or demand adjustment of the amounts reported by its franchisee, or\n (ii) to enforce the provisions of the franchise by any lawful administrative\n or judicial means.\n\nHISTORY: 2006, c. 780.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}