{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-265.4_4.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-265.4_4.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-265.4_4.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-265.4_4.html"}],"law_id":55350,"edition_id":1,"section_id":55350,"structure_id":14176,"section_number":"56-265.4:4","catch_line":"Certificate to operate as a telephone utility","history":"1984, c. 382; 1995, cc. 22, 35, 187; 2001, c. 75; 2002, cc. 479, 489; 2003, cc. 677, 711, 720; 2005, c. 258; 2006, cc. 73, 76; 2009, c. 330; 2016, cc. 724, 725.","full_text":"A\n\nThe Commission may grant certificates to competing telephone companies, or any county, city or town that operates an electric distribution system, for interexchange service where it finds that such action is justified by public interest, and is in accordance with such terms, conditions, limitations, and restrictions as may be prescribed by the Commission for competitive telecommunications services. A certificate to provide interexchange services shall not authorize the holder to provide local exchange services. The Commission may grant a certificate to a carrier, or any county, city or town that operates an electric distribution system, to furnish local exchange services as provided in subsection B.B\n\n1. After notice to all local exchange carriers certificated in the Commonwealth and other interested parties and following an opportunity for hearing, the Commission may grant certificates to any telephone company, or any county, city or town that operates an electric distribution system, proposing to furnish local exchange telephone service in the Commonwealth. In determining whether to grant a certificate under this subsection, the Commission may require that the applicant show that it possesses sufficient technical, financial, and managerial resources. Before granting any such certificate, the Commission shall: (i) consider whether such action reasonably protects the affordability of basic local exchange telephone service, as such service is defined by the Commission, and reasonably assures the continuation of quality local exchange telephone service; and (ii) find that such action will not unreasonably prejudice or disadvantage any class of telephone company customers or telephone service providers, including the new entrant and any incumbent local exchange telephone company, and is in the public interest. Except as provided in subsection A of \u00a7 15.2-2160, all local exchange certificates granted by the Commission after July 1, 2002, shall be to provide service in any territory in the Commonwealth unless the applicant specifically requests a different certificated service territory. The Commission shall amend the certificated service territory of each local exchange carrier that was previously certificated to provide service in only part of the Commonwealth to permit such carrier&#8217;s provision of local exchange service throughout the Commonwealth beginning on September 1, 2002, unless that local exchange carrier notifies the Commission prior to September 1, 2002, that it elects to retain its existing certificated service territory. A local exchange carrier shall only be considered an incumbent in any certificated service territory in which it was considered an incumbent prior to July 1, 2002, except that the Commission may make changes to a local exchange carrier&#8217;s incumbent certificated service territory at the request of those incumbent local exchange carriers that are directly involved in a proposed change in the certificated service territory.2\n\nA Commission order, including appropriate findings of fact and conclusions of law, denying or approving, with or without modification, an application for certification of a new entrant shall be entered no more than 180 days from the filing of the application, except that the Commission, upon notice to all parties in interest, may extend that period in additional 30-day increments not to exceed an additional 90 days in all.3\n\nThe Commission shall (i) promote and seek to assure the provision of competitive services to all classes of customers throughout all geographic areas of the Commonwealth by a variety of service providers; (ii) require equity in the treatment of the certificated local exchange telephone companies so as to encourage competition based on service, quality, and price differences between alternative providers; (iii) consider the impact on competition of any government-imposed restrictions limiting the markets to be served or the services offered by any provider; (iv) determine the form of rate regulation, if any, for the local exchange services to be provided by the applicant and, upon application, the form of rate regulation for the comparable services of the incumbent local exchange telephone company provided in the geographical area to be served by the applicant; and (v) promulgate standards to assure that there is no cross-subsidization of the applicant&#8217;s competitive local exchange telephone services by any other of its services over which it has a monopoly, whether or not those services are telephone services. The Commission shall also adopt safeguards to ensure that the prices charged and the revenue received by a county, city or town for providing telecommunications services shall not be cross-subsidized from other revenues of the county, city or town or affiliated entities, except (i) in areas where no offers exist from for-profit providers of such telecommunications services, or (ii) as authorized pursuant to subdivision 5.4\n\nThe Commission shall discharge the responsibilities of state commissions as set forth in the federal Telecommunications Act of 1996 (P.L. 104-104) (the Act) and applicable law and regulations, including, but not limited to, the arbitration of interconnection agreements between local exchange carriers; however, the Commission may exercise its discretion to defer selected issues under the Act. If the Commission incurs additional costs in arbitrating such agreements or resolving related legal actions or disputes that cannot be recovered through the maximum levy authorized pursuant to &#xA7; 58.1-2660, that levy shall be increased above the levy authorized by that section to the extent necessary to recover such additional costs.5\n\nUpon the Commission&#8217;s granting of a certificate to a county, city or town under this section, such county, city, or town (i) shall be subject to regulation by the Commission for intrastate telecommunications services, (ii) shall have the same duties and obligations as other certificated providers of telecommunications services, (iii) shall separately account for the revenues, expenses, property, and source of investment dollars associated with the provision of such services, and (iv) to ensure that there is no unreasonable advantage gained from a government agency&#8217;s taxing authority and control of government-owned land, shall charge an amount for such services that (a) does not include any subsidies, unless approved by the Commission, and (b) takes into account, by imputation or allocation, equivalent charges for all taxes, pole rentals, rights of way, licenses, and similar costs incurred by for-profit providers. Each certificated county, city, or town that provides telecommunications services regulated by the Commission shall file an annual report with the Commission demonstrating that the requirements of clauses (iii) and (iv) have been met. The Commission may approve a subsidy under this section if deemed to be in the public interest and provided that such subsidy does not result in a price for the service lower than the price for the same service charged by the incumbent provider in the area.6\n\nA locality that has obtained a certificate pursuant to this section shall (i) comply with all applicable laws and regulations for the provision of telecommunications services; (ii) make a reasonable estimate of the amount of all federal, state, and local taxes (including income taxes and consumer utility taxes) that would be required to be paid or collected for each fiscal year if the locality were a for-profit provider of telecommunications services, (iii) prepare reasonable estimates of the amount of any franchise fees and other state and local fees (including permit fees and pole rental fees), and right-of-way charges that would be incurred in each fiscal year if the locality were a for-profit provider of telecommunications services, (iv) prepare and publish annually financial statements in accordance with generally accepted accounting principles showing the results of operations of its provision of telecommunications services, and (v) maintain records demonstrating compliance with the provisions of this section that shall be made available for inspection and copying pursuant to the Virginia Freedom of Information Act (&#xA7; 2.2-3700 et seq.).7\n\nEach locality that has obtained a certificate pursuant to this section shall provide nondiscriminatory access to for-profit providers of telecommunications services on a first-come, first-served basis to rights-of-way, poles, conduits or other permanent distribution facilities owned, leased or operated by the locality unless the facilities have insufficient capacity for such access and additional capacity cannot reasonably be added to the facilities.8\n\nThe prices charged and the revenue received by a locality for providing telecommunications services shall not be cross-subsidized by other revenues of the locality or affiliated entities, except (i) in areas where no offers exist from for-profit providers of such telecommunications services, or (ii) as permitted by the provisions of subdivision 5. The provisions of this subdivision shall not apply to Internet access, broadband, information, and data transmission services provided by any locality providing telecommunications services on March 1, 2002, except for an authority created pursuant to the BVU Authority Act (&#xA7; 15.2-7200 et seq.).9\n\nThe Commission shall promulgate rules necessary to implement this section. In no event, however, shall the rules necessary to implement clauses (iii) and (iv) of subdivision 5, clauses (ii) through (v) of subdivision 6, and subdivision 8 impose any obligations on a locality that has obtained a certificate pursuant to this section, but is not yet providing telecommunications services regulated by the Commission.10\n\nPublic records of a locality that has obtained a certificate pursuant to this section, which records contain confidential proprietary information or trade secrets pertaining to the provision of telecommunications service, shall be exempt from disclosure under the Freedom of Information Act (&#xA7; 2.2-3700 et seq.). As used in this subdivision, a public record contains confidential proprietary information or trade secrets if its acquisition by a competing provider of telecommunications services would provide the competing provider with a competitive benefit. However, the exemption provided by this subdivision shall not apply to any authority created pursuant to the BVU Authority Act (&#xA7; 15.2-7200 et seq.).C\n\nArticle 5.1 (&#xA7; 56-484.7:1 et seq.) of Chapter 15 shall not apply to a county, city, or town that has obtained a certificate pursuant to this section.D\n\nAny county, city, or town that has obtained a certificate pursuant to this section may construct, own, maintain, and operate a fiber optic or communications infrastructure to provide consumers with Internet services, data transmission services, and any other communications service that its infrastructure is capable of delivering; provided, however, nothing in this subsection shall authorize the provision of cable television services or other multi-channel video programming service. Furthermore, nothing in this subsection shall alter the authority of the Commission.E\n\nAny county, city, or town that has obtained a certificate pursuant to this section and that had installed a cable television headend prior to December 31, 2002, is authorized to own and operate a cable television system or other multi-channel video programming service and shall be exempt from the provisions of &#xA7;&#xA7; 15.2-2108.4 through 15.2-2108.8. Nothing in this subsection shall authorize the Commission to regulate cable television service.","order_by":null,"text":{"0":{"id":202952,"text":"The Commission may grant certificates to competing telephone companies, or any county, city or town that operates an electric distribution system, for interexchange service where it finds that such action is justified by public interest, and is in accordance with such terms, conditions, limitations, and restrictions as may be prescribed by the Commission for competitive telecommunications services. A certificate to provide interexchange services shall not authorize the holder to provide local exchange services. The Commission may grant a certificate to a carrier, or any county, city or town that operates an electric distribution system, to furnish local exchange services as provided in subsection B.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":202953,"text":"1. After notice to all local exchange carriers certificated in the Commonwealth and other interested parties and following an opportunity for hearing, the Commission may grant certificates to any telephone company, or any county, city or town that operates an electric distribution system, proposing to furnish local exchange telephone service in the Commonwealth. In determining whether to grant a certificate under this subsection, the Commission may require that the applicant show that it possesses sufficient technical, financial, and managerial resources. Before granting any such certificate, the Commission shall: (i) consider whether such action reasonably protects the affordability of basic local exchange telephone service, as such service is defined by the Commission, and reasonably assures the continuation of quality local exchange telephone service; and (ii) find that such action will not unreasonably prejudice or disadvantage any class of telephone company customers or telephone service providers, including the new entrant and any incumbent local exchange telephone company, and is in the public interest. Except as provided in subsection A of \u00a7 15.2-2160, all local exchange certificates granted by the Commission after July 1, 2002, shall be to provide service in any territory in the Commonwealth unless the applicant specifically requests a different certificated service territory. The Commission shall amend the certificated service territory of each local exchange carrier that was previously certificated to provide service in only part of the Commonwealth to permit such carrier&#8217;s provision of local exchange service throughout the Commonwealth beginning on September 1, 2002, unless that local exchange carrier notifies the Commission prior to September 1, 2002, that it elects to retain its existing certificated service territory. A local exchange carrier shall only be considered an incumbent in any certificated service territory in which it was considered an incumbent prior to July 1, 2002, except that the Commission may make changes to a local exchange carrier&#8217;s incumbent certificated service territory at the request of those incumbent local exchange carriers that are directly involved in a proposed change in the certificated service territory.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B2"},"2":{"id":202954,"text":"A Commission order, including appropriate findings of fact and conclusions of law, denying or approving, with or without modification, an application for certification of a new entrant shall be entered no more than 180 days from the filing of the application, except that the Commission, upon notice to all parties in interest, may extend that period in additional 30-day increments not to exceed an additional 90 days in all.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"B3"},"3":{"id":202955,"text":"The Commission shall (i) promote and seek to assure the provision of competitive services to all classes of customers throughout all geographic areas of the Commonwealth by a variety of service providers; (ii) require equity in the treatment of the certificated local exchange telephone companies so as to encourage competition based on service, quality, and price differences between alternative providers; (iii) consider the impact on competition of any government-imposed restrictions limiting the markets to be served or the services offered by any provider; (iv) determine the form of rate regulation, if any, for the local exchange services to be provided by the applicant and, upon application, the form of rate regulation for the comparable services of the incumbent local exchange telephone company provided in the geographical area to be served by the applicant; and (v) promulgate standards to assure that there is no cross-subsidization of the applicant&#8217;s competitive local exchange telephone services by any other of its services over which it has a monopoly, whether or not those services are telephone services. The Commission shall also adopt safeguards to ensure that the prices charged and the revenue received by a county, city or town for providing telecommunications services shall not be cross-subsidized from other revenues of the county, city or town or affiliated entities, except (i) in areas where no offers exist from for-profit providers of such telecommunications services, or (ii) as authorized pursuant to subdivision 5.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"4":{"id":202956,"text":"The Commission shall discharge the responsibilities of state commissions as set forth in the federal Telecommunications Act of 1996 (P.L. 104-104) (the Act) and applicable law and regulations, including, but not limited to, the arbitration of interconnection agreements between local exchange carriers; however, the Commission may exercise its discretion to defer selected issues under the Act. If the Commission incurs additional costs in arbitrating such agreements or resolving related legal actions or disputes that cannot be recovered through the maximum levy authorized pursuant to &#xA7; 58.1-2660, that levy shall be increased above the levy authorized by that section to the extent necessary to recover such additional costs.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"5":{"id":202957,"text":"Upon the Commission&#8217;s granting of a certificate to a county, city or town under this section, such county, city, or town (i) shall be subject to regulation by the Commission for intrastate telecommunications services, (ii) shall have the same duties and obligations as other certificated providers of telecommunications services, (iii) shall separately account for the revenues, expenses, property, and source of investment dollars associated with the provision of such services, and (iv) to ensure that there is no unreasonable advantage gained from a government agency&#8217;s taxing authority and control of government-owned land, shall charge an amount for such services that (a) does not include any subsidies, unless approved by the Commission, and (b) takes into account, by imputation or allocation, equivalent charges for all taxes, pole rentals, rights of way, licenses, and similar costs incurred by for-profit providers. Each certificated county, city, or town that provides telecommunications services regulated by the Commission shall file an annual report with the Commission demonstrating that the requirements of clauses (iii) and (iv) have been met. The Commission may approve a subsidy under this section if deemed to be in the public interest and provided that such subsidy does not result in a price for the service lower than the price for the same service charged by the incumbent provider in the area.","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"6":{"id":202958,"text":"A locality that has obtained a certificate pursuant to this section shall (i) comply with all applicable laws and regulations for the provision of telecommunications services; (ii) make a reasonable estimate of the amount of all federal, state, and local taxes (including income taxes and consumer utility taxes) that would be required to be paid or collected for each fiscal year if the locality were a for-profit provider of telecommunications services, (iii) prepare reasonable estimates of the amount of any franchise fees and other state and local fees (including permit fees and pole rental fees), and right-of-way charges that would be incurred in each fiscal year if the locality were a for-profit provider of telecommunications services, (iv) prepare and publish annually financial statements in accordance with generally accepted accounting principles showing the results of operations of its provision of telecommunications services, and (v) maintain records demonstrating compliance with the provisions of this section that shall be made available for inspection and copying pursuant to the Virginia Freedom of Information Act (&#xA7; 2.2-3700 et seq.).","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"B7"},"7":{"id":202959,"text":"Each locality that has obtained a certificate pursuant to this section shall provide nondiscriminatory access to for-profit providers of telecommunications services on a first-come, first-served basis to rights-of-way, poles, conduits or other permanent distribution facilities owned, leased or operated by the locality unless the facilities have insufficient capacity for such access and additional capacity cannot reasonably be added to the facilities.","type":"section","prefixes":["B","7"],"prefix":"7","entire_prefix":"B7","prefix_anchor":"B7","level":2,"prior_prefix":"B6","next_prefix":"B8"},"8":{"id":202960,"text":"The prices charged and the revenue received by a locality for providing telecommunications services shall not be cross-subsidized by other revenues of the locality or affiliated entities, except (i) in areas where no offers exist from for-profit providers of such telecommunications services, or (ii) as permitted by the provisions of subdivision 5. The provisions of this subdivision shall not apply to Internet access, broadband, information, and data transmission services provided by any locality providing telecommunications services on March 1, 2002, except for an authority created pursuant to the BVU Authority Act (&#xA7; 15.2-7200 et seq.).","type":"section","prefixes":["B","8"],"prefix":"8","entire_prefix":"B8","prefix_anchor":"B8","level":2,"prior_prefix":"B7","next_prefix":"B9"},"9":{"id":202961,"text":"The Commission shall promulgate rules necessary to implement this section. In no event, however, shall the rules necessary to implement clauses (iii) and (iv) of subdivision 5, clauses (ii) through (v) of subdivision 6, and subdivision 8 impose any obligations on a locality that has obtained a certificate pursuant to this section, but is not yet providing telecommunications services regulated by the Commission.","type":"section","prefixes":["B","9"],"prefix":"9","entire_prefix":"B9","prefix_anchor":"B9","level":2,"prior_prefix":"B8","next_prefix":"B10"},"10":{"id":202962,"text":"Public records of a locality that has obtained a certificate pursuant to this section, which records contain confidential proprietary information or trade secrets pertaining to the provision of telecommunications service, shall be exempt from disclosure under the Freedom of Information Act (&#xA7; 2.2-3700 et seq.). As used in this subdivision, a public record contains confidential proprietary information or trade secrets if its acquisition by a competing provider of telecommunications services would provide the competing provider with a competitive benefit. However, the exemption provided by this subdivision shall not apply to any authority created pursuant to the BVU Authority Act (&#xA7; 15.2-7200 et seq.).","type":"section","prefixes":["B","10"],"prefix":"10","entire_prefix":"B10","prefix_anchor":"B10","level":2,"prior_prefix":"B9","next_prefix":"C"},"11":{"id":202963,"text":"Article 5.1 (&#xA7; 56-484.7:1 et seq.) of Chapter 15 shall not apply to a county, city, or town that has obtained a certificate pursuant to this section.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B10","next_prefix":"D"},"12":{"id":202964,"text":"Any county, city, or town that has obtained a certificate pursuant to this section may construct, own, maintain, and operate a fiber optic or communications infrastructure to provide consumers with Internet services, data transmission services, and any other communications service that its infrastructure is capable of delivering; provided, however, nothing in this subsection shall authorize the provision of cable television services or other multi-channel video programming service. Furthermore, nothing in this subsection shall alter the authority of the Commission.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"13":{"id":202965,"text":"Any county, city, or town that has obtained a certificate pursuant to this section and that had installed a cable television headend prior to December 31, 2002, is authorized to own and operate a cable television system or other multi-channel video programming service and shall be exempt from the provisions of &#xA7;&#xA7; 15.2-2108.4 through 15.2-2108.8. Nothing in this subsection shall authorize the Commission to regulate cable television service.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":14176,"edition_id":1,"name":"Utility Facilities Act","identifier":"10.1","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 03:47:08","date_modified":"2026-06-26 03:47:08","permalink":{"id":249127,"object_type":"structure","relational_id":14176,"identifier":"10.1","token":"56\/10.1","url":"\/56\/10.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12881,"edition_id":1,"name":"Public Service Companies","identifier":"56","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:58","date_modified":"2026-06-26 03:43:58","permalink":{"id":248473,"object_type":"structure","relational_id":12881,"identifier":"56","token":"56","url":"\/56\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":85772,"structure_id":14176,"section_number":"56-265.1","catch_line":"Definitions","url":"\/56-265.1\/","token":"56\/10.1\/56-265.1","metadata":false},{"id":75556,"structure_id":14176,"section_number":"56-265.2","catch_line":"Certificate of convenience and necessity required for acquisition, etc., of new facilities","url":"\/56-265.2\/","token":"56\/10.1\/56-265.2","metadata":false},{"id":78990,"structure_id":14176,"section_number":"56-265.2:1","catch_line":"Approval by Commission required for construction of certain gas pipelines and related facilities; notice and hearing","url":"\/56-265.2_1\/","token":"56\/10.1\/56-265.2_1","metadata":false},{"id":60647,"structure_id":14176,"section_number":"56-265.3","catch_line":"Certificate to furnish public utility service; allotment of territory transfers, leases or amendments","url":"\/56-265.3\/","token":"56\/10.1\/56-265.3","metadata":false},{"id":78937,"structure_id":14176,"section_number":"56-265.3:1","catch_line":"Certificates to furnish water and sewer service","url":"\/56-265.3_1\/","token":"56\/10.1\/56-265.3_1","metadata":false},{"id":64018,"structure_id":14176,"section_number":"56-265.4","catch_line":"Certificate to operate in territory of another certificate holder","url":"\/56-265.4\/","token":"56\/10.1\/56-265.4","metadata":false},{"id":59749,"structure_id":14176,"section_number":"56-265.4:1","catch_line":"Furnishing of electric public utility service or provision of facilities therefor by municipal corporations and other governmental bodies","url":"\/56-265.4_1\/","token":"56\/10.1\/56-265.4_1","metadata":false},{"id":82310,"structure_id":14176,"section_number":"56-265.4:2","catch_line":"Extension of service by cities and towns into annexed areas","url":"\/56-265.4_2\/","token":"56\/10.1\/56-265.4_2","metadata":false},{"id":55913,"structure_id":14176,"section_number":"56-265.4:3","catch_line":"Repealed","url":"\/56-265.4_3\/","token":"56\/10.1\/56-265.4_3","metadata":false},{"id":55350,"structure_id":14176,"section_number":"56-265.4:4","catch_line":"Certificate to operate as a telephone utility","url":"\/56-265.4_4\/","token":"56\/10.1\/56-265.4_4","metadata":false},{"id":59368,"structure_id":14176,"section_number":"56-265.4:5","catch_line":"Furnishing gas service to commercial and industrial customers in an area not certificated for public utility gas service","url":"\/56-265.4_5\/","token":"56\/10.1\/56-265.4_5","metadata":false},{"id":57183,"structure_id":14176,"section_number":"56-265.4:6","catch_line":"Furnishing non-utility gas service","url":"\/56-265.4_6\/","token":"56\/10.1\/56-265.4_6","metadata":false},{"id":64154,"structure_id":14176,"section_number":"56-265.4:7","catch_line":"Discontinuing natural gas service; municipal corporation","url":"\/56-265.4_7\/","token":"56\/10.1\/56-265.4_7","metadata":false},{"id":70671,"structure_id":14176,"section_number":"56-265.5","catch_line":"Effective date of certificates","url":"\/56-265.5\/","token":"56\/10.1\/56-265.5","metadata":false},{"id":75195,"structure_id":14176,"section_number":"56-265.6","catch_line":"Penalties for misrepresentations, violations of law, regulations or terms of certificates","url":"\/56-265.6\/","token":"56\/10.1\/56-265.6","metadata":false},{"id":65727,"structure_id":14176,"section_number":"56-265.7","catch_line":"Appeal from order of revocations, etc","url":"\/56-265.7\/","token":"56\/10.1\/56-265.7","metadata":false},{"id":85864,"structure_id":14176,"section_number":"56-265.8","catch_line":"Proceedings before Commission on or before July 1, 1950","url":"\/56-265.8\/","token":"56\/10.1\/56-265.8","metadata":false},{"id":59710,"structure_id":14176,"section_number":"56-265.8:1","catch_line":"Inspection and approval of certain installations not regulated pursuant to this chapter","url":"\/56-265.8_1\/","token":"56\/10.1\/56-265.8_1","metadata":false},{"id":56468,"structure_id":14176,"section_number":"56-265.9","catch_line":"Title of chapter","url":"\/56-265.9\/","token":"56\/10.1\/56-265.9","metadata":false}],"previous_section":{"id":55913,"structure_id":14176,"section_number":"56-265.4:3","catch_line":"Repealed","url":"\/56-265.4_3\/","token":"56\/10.1\/56-265.4_3","metadata":false},"next_section":{"id":59368,"structure_id":14176,"section_number":"56-265.4:5","catch_line":"Furnishing gas service to commercial and industrial customers in an area not certificated for public utility gas service","url":"\/56-265.4_5\/","token":"56\/10.1\/56-265.4_5","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-265.4:4\/","history_text":"<p>This law was first created in 1984. The record of its establishment is cataloged in chapter 382 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. Unfortunately, the 1984 \u201cActs\u201d aren\u2019t available online. It has been modified 8 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1995, chapters <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?951+ful+CHAP0022\">22<\/a>, <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?951+ful+CHAP0035\">35<\/a>, and <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?951+ful+CHAP0187\">187<\/a>; in 2001, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?011+ful+CHAP0075\">75<\/a>; in 2002, chapters <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?021+ful+CHAP0479\">479<\/a> and <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?021+ful+CHAP0489\">489<\/a>; in 2003, chapters <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?031+ful+CHAP0677\">677<\/a>, <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?031+ful+CHAP0711\">711<\/a>, and <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?031+ful+CHAP0720\">720<\/a>; in 2005, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?051+ful+CHAP0258\">258<\/a>; in 2006, chapters <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?061+ful+CHAP0073\">73<\/a> and <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?061+ful+CHAP0076\">76<\/a>; in 2009, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?091+ful+CHAP0330\">330<\/a>; in 2016, chapters <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?161+ful+CHAP0724\">724<\/a> and <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?161+ful+CHAP0725\">725<\/a>.<\/p>","references":[{"id":54573,"section_number":"15.2-2108.10","catch_line":"Bonding authority","order_by":null,"url":"\/15.2-2108.10\/"},{"id":85820,"section_number":"15.2-2108.9","catch_line":"Enterprise funds for cable television services","order_by":null,"url":"\/15.2-2108.9\/"},{"id":56562,"section_number":"15.2-2160","catch_line":"Provision of telecommunications services","order_by":null,"url":"\/15.2-2160\/"},{"id":61515,"section_number":"15.2-7202","catch_line":"Definitions","order_by":null,"url":"\/15.2-7202\/"},{"id":59772,"section_number":"2.2-3705.6","catch_line":"Exclusions to application of chapter; proprietary records and trade secrets","order_by":null,"url":"\/2.2-3705.6\/"},{"id":64250,"section_number":"56-1","catch_line":"Definitions","order_by":null,"url":"\/56-1\/"},{"id":55844,"section_number":"56-235.5","catch_line":"Telephone regulatory alternatives","order_by":null,"url":"\/56-235.5\/"},{"id":64018,"section_number":"56-265.4","catch_line":"Certificate to operate in territory of another certificate holder","order_by":null,"url":"\/56-265.4\/"},{"id":84023,"section_number":"56-458","catch_line":"Right to erect lines parallel to railroads; occupation of roads, streets, etc.; location of same","order_by":null,"url":"\/56-458\/"},{"id":59741,"section_number":"56-462","catch_line":"Franchise to occupy parks, streets, etc.; imposition of terms, conditions, etc., as to use of streets, etc., and construction thereon","order_by":null,"url":"\/56-462\/"},{"id":75146,"section_number":"56-479.4","catch_line":"Designation of eligible telecommunications carrier for purposes of providing Lifeline service","order_by":null,"url":"\/56-479.4\/"},{"id":58465,"section_number":"56-481.2","catch_line":"Rates, charges and regulations for local exchange telephone services provided by new entrants","order_by":null,"url":"\/56-481.2\/"},{"id":78043,"section_number":"56-54.2","catch_line":"Definitions","order_by":null,"url":"\/56-54.2\/"},{"id":59757,"section_number":"56-54.3","catch_line":"Election to be regulated as a competitive telephone company","order_by":null,"url":"\/56-54.3\/"},{"id":79433,"section_number":"58.1-2660","catch_line":"Special revenue tax; levy","order_by":null,"url":"\/58.1-2660\/"}],"refers_to":[{"id":73868,"section_number":"15.2-2108.4","catch_line":"Limitations on providing cable television services","order_by":null,"url":"\/15.2-2108.4\/"},{"id":82767,"section_number":"15.2-2108.8","catch_line":"Referendum","order_by":null,"url":"\/15.2-2108.8\/"},{"id":56562,"section_number":"15.2-2160","catch_line":"Provision of telecommunications services","order_by":null,"url":"\/15.2-2160\/"},{"id":70201,"section_number":"15.2-7200","catch_line":"Short title","order_by":null,"url":"\/15.2-7200\/"},{"id":55569,"section_number":"2.2-3700","catch_line":"Short title; policy","order_by":null,"url":"\/2.2-3700\/"},{"id":60584,"section_number":"56-484.7:1","catch_line":"Offering of communications services","order_by":null,"url":"\/56-484.7_1\/"},{"id":79433,"section_number":"58.1-2660","catch_line":"Special revenue tax; levy","order_by":null,"url":"\/58.1-2660\/"}],"permalink":{"id":249165,"object_type":"law","relational_id":55350,"identifier":"56-265.4:4","token":"56\/10.1\/56-265.4_4","url":"\/56-265.4_4\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-265.4_4\/","token":"56\/10.1\/56-265.4_4","dublin_core":{"Title":"Certificate to operate as a telephone utility","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-265.4:4","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section id=\"A\"><p><span class=\"prefix-number\">A.<\/span> The <span class=\"dictionary\">Commission<\/span> may grant certificates to competing telephone companies, or any county, city or town that operates an electric distribution system, for interexchange service where it finds that such action is justified by public interest, and is in accordance with such terms, conditions, limitations, and restrictions as may be prescribed by the <span class=\"dictionary\">Commission<\/span> for competitive telecommunications services. A certificate to provide interexchange services shall not authorize the holder to provide local exchange services. The <span class=\"dictionary\">Commission<\/span> may grant a certificate to a carrier, or any county, city or town that operates an electric distribution system, to furnish local exchange services as provided in subsection B. <a id=\"paragraph-202952\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-265.4_4\/#A\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B\"><p><span class=\"prefix-number\">B.<\/span> 1. After notice to all local exchange carriers certificated in the Commonwealth and other interested parties and following an opportunity for <span class=\"dictionary\">hearing<\/span>, the <span class=\"dictionary\">Commission<\/span> may grant certificates to any telephone <span class=\"dictionary\">company<\/span>, or any county, city or town that operates an electric distribution system, proposing to furnish <span class=\"dictionary\">local exchange telephone service<\/span> in the Commonwealth. In determining whether to grant a certificate under this subsection, the <span class=\"dictionary\">Commission<\/span> may require that the applicant show that it possesses sufficient technical, financial, and managerial resources. Before granting any such certificate, the <span class=\"dictionary\">Commission<\/span> shall: (i) consider whether such action reasonably protects the affordability of basic <span class=\"dictionary\">local exchange telephone service<\/span>, as such service is defined by the <span class=\"dictionary\">Commission<\/span>, and reasonably assures the continuation of quality <span class=\"dictionary\">local exchange telephone service<\/span>; and (ii) find that such action will not unreasonably prejudice or disadvantage any class of telephone <span class=\"dictionary\">company<\/span> customers or telephone service providers, including the new entrant and any incumbent local exchange telephone <span class=\"dictionary\">company<\/span>, and is in the public interest. Except as provided in subsection A of \u00a7&nbsp;<a class=\"law\" title=\"Provision of telecommunications services\" href=\"\/15.2-2160\/\">15.2-2160<\/a>, all local exchange certificates granted by the <span class=\"dictionary\">Commission<\/span> after July 1, 2002, shall be to provide service in any territory in the Commonwealth unless the applicant specifically requests a different certificated service territory. The <span class=\"dictionary\">Commission<\/span> shall <span class=\"dictionary\">amend<\/span> the certificated service territory of each local exchange carrier that was previously certificated to provide service in only part of the Commonwealth to permit such carrier&#8217;s provision of local exchange service throughout the Commonwealth beginning on September 1, 2002, unless that local exchange carrier notifies the <span class=\"dictionary\">Commission<\/span> prior to September 1, 2002, that it elects to retain its existing certificated service territory. A local exchange carrier shall only be considered an incumbent in any certificated service territory in which it was considered an incumbent prior to July 1, 2002, except that the <span class=\"dictionary\">Commission<\/span> may make changes to a local exchange carrier&#8217;s incumbent certificated service territory at the request of those incumbent local exchange carriers that are directly involved in a proposed change in the certificated service territory. <a id=\"paragraph-202953\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-265.4_4\/#B\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B2\" class=\"indent-1\"><p><span class=\"prefix-number\">2.<\/span> A <span class=\"dictionary\">Commission<\/span> <span class=\"dictionary\">order<\/span>, including appropriate <span class=\"dictionary\">findings<\/span> of <span class=\"dictionary\">fact<\/span> and conclusions of <span class=\"dictionary\">law<\/span>, denying or approving, with or without modification, an application for certification of a new entrant shall be entered no more than 180 days from the filing of the application, except that the <span class=\"dictionary\">Commission<\/span>, upon notice to all parties in interest, may extend that period in additional 30-day increments not to exceed an additional 90 days in all. <a id=\"paragraph-202954\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-265.4_4\/#B2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B3\" class=\"indent-1\"><p><span class=\"prefix-number\">3.<\/span> The <span class=\"dictionary\">Commission<\/span> shall (i) promote and seek to assure the provision of competitive services to all classes of customers throughout all geographic areas of the Commonwealth by a variety of service providers; (ii) require <span class=\"dictionary\">equity<\/span> in the treatment of the certificated local exchange telephone companies so as to encourage competition based on service, quality, and price differences between alternative providers; (iii) consider the impact on competition of any government-imposed restrictions limiting the markets to be served or the services offered by any provider; (iv) determine the form of <span class=\"dictionary\">rate<\/span> regulation, if any, for the local exchange services to be provided by the applicant and, upon application, the form of <span class=\"dictionary\">rate<\/span> regulation for the comparable services of the incumbent local exchange telephone <span class=\"dictionary\">company<\/span> provided in the geographical area to be served by the applicant; and (v) promulgate standards to assure that there is no cross-subsidization of the applicant&#8217;s competitive <span class=\"dictionary\">local exchange telephone services<\/span> by any other of its services over which it has a monopoly, whether or not those services are telephone services. The <span class=\"dictionary\">Commission<\/span> shall also adopt safeguards to ensure that the prices charged and the revenue received by a county, city or town for providing telecommunications services shall not be cross-subsidized from other revenues of the county, city or town or affiliated entities, except (i) in areas where no offers exist from for-profit providers of such telecommunications services, or (ii) as authorized pursuant to subdivision 5. <a id=\"paragraph-202955\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-265.4_4\/#B3\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B4\" class=\"indent-1\"><p><span class=\"prefix-number\">4.<\/span> The <span class=\"dictionary\">Commission<\/span> shall discharge the responsibilities of state <span class=\"dictionary\">commissions<\/span> as set forth in the federal Telecommunications Act of 1996 (P.L. 104-104) (the Act) and applicable <span class=\"dictionary\">law<\/span> and regulations, including, but not limited to, the arbitration of interconnection agreements between local exchange carriers; however, the <span class=\"dictionary\">Commission<\/span> may exercise its discretion to defer selected <span class=\"dictionary\">issues<\/span> under the Act. If the <span class=\"dictionary\">Commission<\/span> incurs additional costs in arbitrating such agreements or resolving related legal actions or disputes that cannot be recovered through the maximum <span class=\"dictionary\">levy<\/span> authorized pursuant to &#xA7; <a class=\"law\" title=\"Special revenue tax; levy\" href=\"\/58.1-2660\/\">58.1-2660<\/a>, that <span class=\"dictionary\">levy<\/span> shall be increased above the <span class=\"dictionary\">levy<\/span> authorized by that section to the extent necessary to recover such additional costs. <a id=\"paragraph-202956\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-265.4_4\/#B4\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B5\" class=\"indent-1\"><p><span class=\"prefix-number\">5.<\/span> Upon the <span class=\"dictionary\">Commission<\/span>&#8217;s granting of a certificate to a county, city or town under this section, such county, city, or town (i) shall be subject to regulation by the <span class=\"dictionary\">Commission<\/span> for intrastate telecommunications services, (ii) shall have the same duties and obligations as other certificated providers of telecommunications services, (iii) shall separately account for the revenues, expenses, property, and source of investment dollars associated with the provision of such services, and (iv) to ensure that there is no unreasonable advantage gained from a government agency&#8217;s taxing authority and control of government-owned land, shall charge an amount for such services that (a) does not include any subsidies, unless approved by the <span class=\"dictionary\">Commission<\/span>, and (b) takes into account, by imputation or allocation, equivalent charges for all taxes, pole rentals, rights of way, licenses, and similar costs incurred by for-profit providers. Each certificated county, city, or town that provides telecommunications services regulated by the <span class=\"dictionary\">Commission<\/span> shall file an annual report with the <span class=\"dictionary\">Commission<\/span> demonstrating that the requirements of clauses (iii) and (iv) have been met. The <span class=\"dictionary\">Commission<\/span> may approve a subsidy under this section if deemed to be in the public interest and provided that such subsidy does not result in a price for the service lower than the price for the same service charged by the incumbent provider in the area. <a id=\"paragraph-202957\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-265.4_4\/#B5\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B6\" class=\"indent-1\"><p><span class=\"prefix-number\">6.<\/span> A locality that has obtained a certificate pursuant to this section shall (i) comply with all applicable <span class=\"dictionary\">laws<\/span> and regulations for the provision of telecommunications services; (ii) make a reasonable estimate of the amount of all federal, state, and local taxes (including income taxes and consumer utility taxes) that would be required to be paid or collected for each fiscal year if the locality were a for-profit provider of telecommunications services, (iii) prepare reasonable estimates of the amount of any franchise fees and other state and local fees (including permit fees and pole rental fees), and right-of-way charges that would be incurred in each fiscal year if the locality were a for-profit provider of telecommunications services, (iv) prepare and publish annually financial statements in accordance with generally accepted accounting principles showing the results of operations of its provision of telecommunications services, and (v) maintain records demonstrating compliance with the provisions of this section that shall be made available for inspection and copying pursuant to the Virginia Freedom of Information Act (&#xA7; <a class=\"law\" title=\"Short title; policy\" href=\"\/2.2-3700\/\">2.2-3700<\/a> et seq.). <a id=\"paragraph-202958\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-265.4_4\/#B6\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B7\" class=\"indent-1\"><p><span class=\"prefix-number\">7.<\/span> Each locality that has obtained a certificate pursuant to this section shall provide nondiscriminatory access to for-profit providers of telecommunications services on a first-come, first-served basis to rights-of-way, poles, conduits or other permanent distribution facilities owned, leased or operated by the locality unless the facilities have insufficient capacity for such access and additional capacity cannot reasonably be added to the facilities. <a id=\"paragraph-202959\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-265.4_4\/#B7\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B8\" class=\"indent-1\"><p><span class=\"prefix-number\">8.<\/span> The prices charged and the revenue received by a locality for providing telecommunications services shall not be cross-subsidized by other revenues of the locality or affiliated entities, except (i) in areas where no offers exist from for-profit providers of such telecommunications services, or (ii) as permitted by the provisions of subdivision 5. The provisions of this subdivision shall not apply to Internet access, broadband, information, and data transmission services provided by any locality providing telecommunications services on March 1, 2002, except for an authority created pursuant to the BVU Authority Act (&#xA7; <a class=\"law\" title=\"Short title\" href=\"\/15.2-7200\/\">15.2-7200<\/a> et seq.). <a id=\"paragraph-202960\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-265.4_4\/#B8\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B9\" class=\"indent-1\"><p><span class=\"prefix-number\">9.<\/span> The <span class=\"dictionary\">Commission<\/span> shall promulgate rules necessary to implement this section. In no event, however, shall the rules necessary to implement clauses (iii) and (iv) of subdivision 5, clauses (ii) through (v) of subdivision 6, and subdivision 8 impose any obligations on a locality that has obtained a certificate pursuant to this section, but is not yet providing telecommunications services regulated by the <span class=\"dictionary\">Commission<\/span>. <a id=\"paragraph-202961\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-265.4_4\/#B9\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B10\" class=\"indent-1\"><p><span class=\"prefix-number\">10.<\/span> Public records of a locality that has obtained a certificate pursuant to this section, which records contain confidential proprietary information or trade secrets pertaining to the provision of telecommunications service, shall be exempt from disclosure under the Freedom of Information Act (&#xA7; <a class=\"law\" title=\"Short title; policy\" href=\"\/2.2-3700\/\">2.2-3700<\/a> et seq.). As used in this subdivision, a public record contains confidential proprietary information or trade secrets if its acquisition by a competing provider of telecommunications services would provide the competing provider with a competitive benefit. However, the exemption provided by this subdivision shall not apply to any authority created pursuant to the BVU Authority Act (&#xA7; <a class=\"law\" title=\"Short title\" href=\"\/15.2-7200\/\">15.2-7200<\/a> et seq.). <a id=\"paragraph-202962\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-265.4_4\/#B10\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C\"><p><span class=\"prefix-number\">C.<\/span> Article 5.1 (&#xA7; <a class=\"law\" title=\"Offering of communications services\" href=\"\/56-484.7_1\/\">56-484.7:1<\/a> et seq.) of Chapter 15 shall not apply to a county, city, or town that has obtained a certificate pursuant to this section. <a id=\"paragraph-202963\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-265.4_4\/#C\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"D\"><p><span class=\"prefix-number\">D.<\/span> Any county, city, or town that has obtained a certificate pursuant to this section may construct, own, maintain, and operate a fiber optic or communications infrastructure to provide consumers with Internet services, data transmission services, and any other communications service that its infrastructure is capable of delivering; provided, however, nothing in this subsection shall authorize the provision of cable television services or other multi-channel video programming service. Furthermore, nothing in this subsection shall alter the authority of the <span class=\"dictionary\">Commission<\/span>. <a id=\"paragraph-202964\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-265.4_4\/#D\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"E\"><p><span class=\"prefix-number\">E.<\/span> Any county, city, or town that has obtained a certificate pursuant to this section and that had installed a cable television headend prior to December 31, 2002, is authorized to own and operate a cable television system or other multi-channel video programming service and shall be exempt from the provisions of &#xA7;&#xA7; <a class=\"law\" title=\"Limitations on providing cable television services\" href=\"\/15.2-2108.4\/\">15.2-2108.4<\/a> through <a class=\"law\" title=\"Referendum\" href=\"\/15.2-2108.8\/\">15.2-2108.8<\/a>. Nothing in this subsection shall authorize the <span class=\"dictionary\">Commission<\/span> to regulate cable television service. <a id=\"paragraph-202965\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-265.4_4\/#E\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nCERTIFICATE TO OPERATE AS A TELEPHONE UTILITY (\u00a7 56-265.4:4)\n\nA. The Commission may grant certificates to competing telephone companies, or\nany county, city or town that operates an electric distribution system, for\ninterexchange service where it finds that such action is justified by public\ninterest, and is in accordance with such terms, conditions, limitations, and\nrestrictions as may be prescribed by the Commission for competitive\ntelecommunications services. A certificate to provide interexchange services\nshall not authorize the holder to provide local exchange services. The\nCommission may grant a certificate to a carrier, or any county, city or town\nthat operates an electric distribution system, to furnish local exchange\nservices as provided in subsection B.\n\nB. 1. After notice to all local exchange carriers certificated in the\nCommonwealth and other interested parties and following an opportunity for\nhearing, the Commission may grant certificates to any telephone company, or any\ncounty, city or town that operates an electric distribution system, proposing to\nfurnish local exchange telephone service in the Commonwealth. In determining\nwhether to grant a certificate under this subsection, the Commission may require\nthat the applicant show that it possesses sufficient technical, financial, and\nmanagerial resources. Before granting any such certificate, the Commission\nshall: (i) consider whether such action reasonably protects the affordability of\nbasic local exchange telephone service, as such service is defined by the\nCommission, and reasonably assures the continuation of quality local exchange\ntelephone service; and (ii) find that such action will not unreasonably\nprejudice or disadvantage any class of telephone company customers or telephone\nservice providers, including the new entrant and any incumbent local exchange\ntelephone company, and is in the public interest. Except as provided in\nsubsection A of \u00a7 15.2-2160, all local exchange certificates granted by the\nCommission after July 1, 2002, shall be to provide service in any territory in\nthe Commonwealth unless the applicant specifically requests a different\ncertificated service territory. The Commission shall amend the certificated\nservice territory of each local exchange carrier that was previously\ncertificated to provide service in only part of the Commonwealth to permit such\ncarrier&#8217;s provision of local exchange service throughout the Commonwealth\nbeginning on September 1, 2002, unless that local exchange carrier notifies the\nCommission prior to September 1, 2002, that it elects to retain its existing\ncertificated service territory. A local exchange carrier shall only be\nconsidered an incumbent in any certificated service territory in which it was\nconsidered an incumbent prior to July 1, 2002, except that the Commission may\nmake changes to a local exchange carrier&#8217;s incumbent certificated service\nterritory at the request of those incumbent local exchange carriers that are\ndirectly involved in a proposed change in the certificated service territory.\n\n   2. A Commission order, including appropriate findings of fact and conclusions\n   of law, denying or approving, with or without modification, an application for\n   certification of a new entrant shall be entered no more than 180 days from the\n   filing of the application, except that the Commission, upon notice to all\n   parties in interest, may extend that period in additional 30-day increments\n   not to exceed an additional 90 days in all.\n\n   3. The Commission shall (i) promote and seek to assure the provision of\n   competitive services to all classes of customers throughout all geographic\n   areas of the Commonwealth by a variety of service providers; (ii) require\n   equity in the treatment of the certificated local exchange telephone companies\n   so as to encourage competition based on service, quality, and price\n   differences between alternative providers; (iii) consider the impact on\n   competition of any government-imposed restrictions limiting the markets to be\n   served or the services offered by any provider; (iv) determine the form of\n   rate regulation, if any, for the local exchange services to be provided by the\n   applicant and, upon application, the form of rate regulation for the\n   comparable services of the incumbent local exchange telephone company provided\n   in the geographical area to be served by the applicant; and (v) promulgate\n   standards to assure that there is no cross-subsidization of the\n   applicant&#8217;s competitive local exchange telephone services by any other\n   of its services over which it has a monopoly, whether or not those services\n   are telephone services. The Commission shall also adopt safeguards to ensure\n   that the prices charged and the revenue received by a county, city or town for\n   providing telecommunications services shall not be cross-subsidized from other\n   revenues of the county, city or town or affiliated entities, except (i) in\n   areas where no offers exist from for-profit providers of such\n   telecommunications services, or (ii) as authorized pursuant to subdivision 5.\n\n   4. The Commission shall discharge the responsibilities of state commissions as\n   set forth in the federal Telecommunications Act of 1996 (P.L. 104-104) (the\n   Act) and applicable law and regulations, including, but not limited to, the\n   arbitration of interconnection agreements between local exchange carriers;\n   however, the Commission may exercise its discretion to defer selected issues\n   under the Act. If the Commission incurs additional costs in arbitrating such\n   agreements or resolving related legal actions or disputes that cannot be\n   recovered through the maximum levy authorized pursuant to &#xA7; 58.1-2660,\n   that levy shall be increased above the levy authorized by that section to the\n   extent necessary to recover such additional costs.\n\n   5. Upon the Commission&#8217;s granting of a certificate to a county, city or\n   town under this section, such county, city, or town (i) shall be subject to\n   regulation by the Commission for intrastate telecommunications services, (ii)\n   shall have the same duties and obligations as other certificated providers of\n   telecommunications services, (iii) shall separately account for the revenues,\n   expenses, property, and source of investment dollars associated with the\n   provision of such services, and (iv) to ensure that there is no unreasonable\n   advantage gained from a government agency&#8217;s taxing authority and control\n   of government-owned land, shall charge an amount for such services that (a)\n   does not include any subsidies, unless approved by the Commission, and (b)\n   takes into account, by imputation or allocation, equivalent charges for all\n   taxes, pole rentals, rights of way, licenses, and similar costs incurred by\n   for-profit providers. Each certificated county, city, or town that provides\n   telecommunications services regulated by the Commission shall file an annual\n   report with the Commission demonstrating that the requirements of clauses\n   (iii) and (iv) have been met. The Commission may approve a subsidy under this\n   section if deemed to be in the public interest and provided that such subsidy\n   does not result in a price for the service lower than the price for the same\n   service charged by the incumbent provider in the area.\n\n   6. A locality that has obtained a certificate pursuant to this section shall\n   (i) comply with all applicable laws and regulations for the provision of\n   telecommunications services; (ii) make a reasonable estimate of the amount of\n   all federal, state, and local taxes (including income taxes and consumer\n   utility taxes) that would be required to be paid or collected for each fiscal\n   year if the locality were a for-profit provider of telecommunications\n   services, (iii) prepare reasonable estimates of the amount of any franchise\n   fees and other state and local fees (including permit fees and pole rental\n   fees), and right-of-way charges that would be incurred in each fiscal year if\n   the locality were a for-profit provider of telecommunications services, (iv)\n   prepare and publish annually financial statements in accordance with generally\n   accepted accounting principles showing the results of operations of its\n   provision of telecommunications services, and (v) maintain records\n   demonstrating compliance with the provisions of this section that shall be\n   made available for inspection and copying pursuant to the Virginia Freedom of\n   Information Act (&#xA7; 2.2-3700 et seq.).\n\n   7. Each locality that has obtained a certificate pursuant to this section\n   shall provide nondiscriminatory access to for-profit providers of\n   telecommunications services on a first-come, first-served basis to\n   rights-of-way, poles, conduits or other permanent distribution facilities\n   owned, leased or operated by the locality unless the facilities have\n   insufficient capacity for such access and additional capacity cannot\n   reasonably be added to the facilities.\n\n   8. The prices charged and the revenue received by a locality for providing\n   telecommunications services shall not be cross-subsidized by other revenues of\n   the locality or affiliated entities, except (i) in areas where no offers exist\n   from for-profit providers of such telecommunications services, or (ii) as\n   permitted by the provisions of subdivision 5. The provisions of this\n   subdivision shall not apply to Internet access, broadband, information, and\n   data transmission services provided by any locality providing\n   telecommunications services on March 1, 2002, except for an authority created\n   pursuant to the BVU Authority Act (&#xA7; 15.2-7200 et seq.).\n\n   9. The Commission shall promulgate rules necessary to implement this section.\n   In no event, however, shall the rules necessary to implement clauses (iii) and\n   (iv) of subdivision 5, clauses (ii) through (v) of subdivision 6, and\n   subdivision 8 impose any obligations on a locality that has obtained a\n   certificate pursuant to this section, but is not yet providing\n   telecommunications services regulated by the Commission.\n\n   10. Public records of a locality that has obtained a certificate pursuant to\n   this section, which records contain confidential proprietary information or\n   trade secrets pertaining to the provision of telecommunications service, shall\n   be exempt from disclosure under the Freedom of Information Act (&#xA7;\n   2.2-3700 et seq.). As used in this subdivision, a public record contains\n   confidential proprietary information or trade secrets if its acquisition by a\n   competing provider of telecommunications services would provide the competing\n   provider with a competitive benefit. However, the exemption provided by this\n   subdivision shall not apply to any authority created pursuant to the BVU\n   Authority Act (&#xA7; 15.2-7200 et seq.).\n\nC. Article 5.1 (&#xA7; 56-484.7:1 et seq.) of Chapter 15 shall not apply to a\ncounty, city, or town that has obtained a certificate pursuant to this section.\n\nD. Any county, city, or town that has obtained a certificate pursuant to this\nsection may construct, own, maintain, and operate a fiber optic or\ncommunications infrastructure to provide consumers with Internet services, data\ntransmission services, and any other communications service that its\ninfrastructure is capable of delivering; provided, however, nothing in this\nsubsection shall authorize the provision of cable television services or other\nmulti-channel video programming service. Furthermore, nothing in this subsection\nshall alter the authority of the Commission.\n\nE. Any county, city, or town that has obtained a certificate pursuant to this\nsection and that had installed a cable television headend prior to December 31,\n2002, is authorized to own and operate a cable television system or other\nmulti-channel video programming service and shall be exempt from the provisions\nof &#xA7;&#xA7; 15.2-2108.4 through 15.2-2108.8. Nothing in this subsection\nshall authorize the Commission to regulate cable television service.\n\nHISTORY: 1984, c. 382; 1995, cc. 22, 35, 187; 2001, c. 75; 2002, cc. 479, 489;\n2003, cc. 677, 711, 720; 2005, c. 258; 2006, cc. 73, 76; 2009, c. 330; 2016, cc.\n724, 725.","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}}