                                 CODE OF VIRGINIA

GENERAL OPERATING LIMITATIONS (§ 15.2-2108.11)

A. A municipality that provides a cable television service shall comply with all
terms and provisions of the Cable Communications Policy Act of 1984 (47 U.S.C.
&#xA7; 521 et seq.) and the regulations issued by the Federal Communications
Commission under such Act that would be applicable to a similarly situated
private provider of cable television services.

B. A municipality may not cross subsidize its cable television services with:

   1. Tax dollars;

   2. Income from other municipal or utility services;

   3. Below-market rate loans from the municipality; or

   4. Any other means.

C. A municipality shall not make or grant any undue or unreasonable preference
or advantage to itself or to any private provider of cable television services.

D. A municipality shall apply, without discrimination as to itself and to any
private provider, the municipality&#8217;s ordinances, rules, and policies,
including those relating to (i) obligation to serve; (ii) access to public
rights of way and municipal utility poles and conduits; (iii) permitting; (iv)
performance bonding; (v) reporting; and (vi) quality of service.

E. In calculating the rates charged by a municipality for a cable television
service:

   1. The municipality shall include within its rates an amount equal to all
   taxes, fees, and other assessments that would be applicable to a similarly
   situated private provider of the same services, including federal, state, and
   local taxes; franchise fees; permit fees; pole attachment fees; and any
   similar fees; and

   2. The municipality shall not price any cable television service at a level
   that is less than the sum of: (i) the actual direct costs of providing the
   service; (ii) the actual indirect costs of providing the service; and (iii)
   the amount determined under subdivision E 1.

F. A municipality that provides cable television services shall comply with the
provisions of Title 47 of the Code of Federal Regulations regarding rate and
service changes.

G. A municipality shall offer to provide or provide cable television services to
only those subscriber locations within either (i) the municipality&#8217;s
electric utility service area as it existed on January 1, 2003, or (ii) the
area, as of January 1, 2003, in which the municipality was providing local
exchange service or Internet service over telecommunications facilities owned by
the municipality, provided that a cable television franchise from any
jurisdiction other than the municipality authorized herein shall be required for
any service outside the municipality&#8217;s boundaries.

H. A municipality shall keep accurate books and records of the
municipality&#8217;s cable television services. A municipality shall conduct an
annual audit of its books and records associated with the municipality&#8217;s
cable television services, such audit to be performed by an independent auditor
approved by the Auditor of Public Accounts. Such audit shall include such
criteria as the Auditor of Public Accounts deems appropriate and be filed with
him, with copies to be submitted to each private provider that holds a franchise
to offer service within the municipality. If, after review of such audit, the
Commonwealth&#8217;s Auditor of Public Accounts determines that there are
violations of this article, he shall provide public notice of same.

I. Notwithstanding any other provision of law, the Auditor of Public Accounts
shall not disclose those portions of any comprehensive business plan that reveal
marketing strategies of a municipal cable television service except as necessary
to perform his duties and such information shall be otherwise exempt from public
disclosure and not subject to the provisions of the Virginia Freedom of
Information Act (&#xA7; 2.2-3700 et seq.).

HISTORY: 2003, c. 677; 2004, c. 586.