                                 CODE OF VIRGINIA

PROVISION OF TELECOMMUNICATIONS SERVICES (§ 15.2-2160)

A. Any locality that operates an electric distribution system may provide
telecommunications services, including local exchange telephone service as
defined in &#xA7; 56-1, within or outside its boundaries if the locality obtains
a certificate pursuant to &#xA7; 56-265.4:4. Such locality may provide
telecommunications services within any locality in which it has electric
distribution system facilities as of March 1, 2002. Any locality providing
telecommunications services on March 1, 2002, may provide telecommunications,
Internet access, broadband, information, and data transmission services within
any locality within 75 miles of the geographic boundaries of its electric
distribution system as such system existed on March 1, 2002. The BVU Authority
may provide telecommunications, Internet access, broadband, information, and
data transmission services as provided in the BVU Authority Act (&#xA7;
15.2-7200 et seq.).

B. A locality that has obtained a certificate pursuant to &#xA7; 56-265.4:4
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.).

C. Each locality that has obtained a certificate pursuant to &#xA7; 56-265.4:4
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.

D. 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 B 5 of &#xA7; 56-265.4:4. The
provisions of this subsection shall not apply to Internet access, broadband,
information, and data transmission services provided by any locality providing
telecommunications services on March 1, 2002.

E. No locality providing such services shall acquire by eminent domain the
facilities or other property of any telecommunications service provider to offer
cable, telephone, data transmission or other information or online programming
services.

F. Public records of a locality that has obtained a certificate pursuant to
&#xA7; 56-265.4:4, 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 subsection, 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 subsection
shall not apply to any authority created pursuant to the BVU Authority Act
(&#xA7; 15.2-7200 et seq.).

G. As used in this section, &#8220;locality&#8221; shall mean any county, city,
town, authority, or other governmental entity which provides or seeks to provide
telecommunications services. Every locality shall comply with the requirements
of &#xA7; 56-265.4:4 or 56-484.7:1 unless otherwise specifically exempt. Any
locality that has obtained a certificate pursuant to &#xA7; 56-265.4:4, and
which surrenders or transfers such certificate shall continue to remain subject
to subsections C, D, and E if any substantial part of its telecommunications
assets or operations are transferred to an entity in which the locality has the
right to appoint board members, directors, or managers.

HISTORY: 2002, cc. 479, 489; 2003, c. 720; 2005, c. 258; 2006, cc. 73, 76; 2010,
cc. 117, 210; 2016, cc. 724, 725.