                                 CODE OF VIRGINIA

FRANCHISE FEES AND PUBLIC RIGHTS-OF-WAY FEES ON CABLE OPERATORS (§
15.2-2108.1:1)

A. As used in this section:
			&#8220;Cable operator&#8221; 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.
			&#8220;Cable service&#8221; means the one-way transmission to subscribers of
(i) video programming as defined in 47 U.S.C. &#xA7; 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. &#xA7; 332 (d) and any direct-to-home
satellite service as defined in 47 U.S.C. &#xA7; 303 (v).
			&#8220;Cable system&#8221; or &#8220;cable television system&#8221; 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. &#xA7; 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 &#xA7; 653 of Title VI of the
Communications Act of 1934, as amended, 47 U.S.C. &#xA7; 573.
			&#8220;Franchise&#8221; 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. 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 &#xA7; 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. 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
(§ 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. § 542 (g).

   1. 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.

   2. 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&#8217;s franchisee(s). Such payments shall reduce
   the cable operator&#8217;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 &#xA7; 58.1-662.
   Until distributed to the individual localities, such amounts shall be deemed
   to be held in trust for their respective accounts.

   3. A locality&#8217;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.

HISTORY: 2006, c. 780.