                                 CODE OF VIRGINIA

(CONTINGENT EXPIRATION &#8212; SEE EDITOR&#8217;S NOTE) PUBLIC RIGHTS-OF-WAY USE
FEE (§ 56-468.1)

A. As used in this article:
			&#8220;Access lines&#8221; are defined to include residence and business
telephone lines and other switched (packet or circuit) lines connecting the
customer premises to the public switched telephone network for the transmission
of outgoing voice-grade telecommunications services. Centrex, PBX, or other
multistation telecommunications services will incur a Public Rights-of-Way Use
Fee on every line or trunk (Network Access Registrar or PBX trunk) that allows
simultaneous unrestricted outward dialing to the public switched network. ISDN
Primary Rate Interface services will be charged five Public Rights-of-Way Use
Fees for every ISDN Primary Rate Interface network facility established by the
customer. Other channelized services in which each voice-grade channel is
controlled by the telecommunications service provider shall be charged one fee
for each line that allows simultaneous unrestricted outward dialing to the
public switched telephone network. Access lines do not include local, state, and
federal government lines; access lines used to provide service to users as part
of the Virginia Universal Service Plan; interstate and intrastate dedicated WATS
lines; special access lines; off-premises extensions; official lines internally
provided and used by providers of telecommunications service for administrative,
testing, intercept, and verification purposes; and commercial mobile radio
service.
			&#8220;Cable operator&#8221; and &#8220;cable system&#8221; have the same
meanings as contained in subsection A of &#xA7; 15.2-2108.1:1.
			&#8220;Centrex&#8221; means a business telephone service offered by a local
exchange company from a local central office; a normal single line telephone
service with added custom calling features including but not limited to
intercom, call forwarding, and call transfer.
			&#8220;ISDN Primary Rate Interface&#8221; means digital communications
service containing 24 bearer channels, each of which is a full 64,000
bits-per-second.
			&#8220;Locality&#8221; has the same meaning as contained in &#xA7; 15.2-102.
			&#8220;Network Access Register&#8221; means a central office register
associated with Centrex service that is required in order to complete a call
involving access to the public switched telephone network outside the confines
of that Centrex company. Network Access Register may be incoming, outgoing, or
two-way.
			&#8220;New installation of telecommunications facilities&#8221; or &#8220;new
installation&#8221; includes the construction of new pole lines and new conduit
systems, and the burying of new cables in existing public rights-of-way. New
installation does not include adding new cables to existing pole lines and
conduit systems.
			&#8220;PBX&#8221; means public branch exchange and is telephone switching
equipment owned by the customer and located on the customer&#8217;s premises.
			&#8220;PBX trunk&#8221; means a connection of the customer&#8217;s PBX switch
to the central office.
			&#8220;Provider of local telecommunications service&#8221; means a public
service corporation or locality holding a certificate issued by the State
Corporation Commission to provide local exchange telephone service and any other
person who provides local telephone services to the public for a fee, other than
a CMRS provider as that term is defined in &#xA7; 56-484.12.
			&#8220;Provider of telecommunications service&#8221; means a public service
corporation or locality holding a certificate issued by the State Corporation
Commission to provide local exchange or interexchange telephone service to the
public for a fee and any other person who provides local or long distance
telephone services to the public for a fee, other than a CMRS provider as that
term is defined in &#xA7; 56-484.12.
			&#8220;Public highway&#8221; means, for purposes of computing the Public
Rights-of-Way Use Fee, the centerline mileage of highways and streets which are
part of the primary state highway system as defined in &#xA7; 33.2-100, the
secondary state highway system as defined in &#xA7;&#xA7; 33.2-100 and 33.2-324,
the highways of those cities and certain towns defined in &#xA7; 33.2-319 and
the highways and streets maintained and operated by counties which have
withdrawn or elect to withdraw from the secondary system of state highways under
the provisions of &#xA7; 11 of Chapter 415 of the Acts of Assembly of 1932 and
which have not elected to return.
			&#8220;Subscriber&#8221; means a person who receives video programming, as
defined in 47 U.S.C. &#xA7; 522(20), distributed by a cable operator, as defined
in subsection A of &#xA7; 15.2-2108.1:1, and does not further distribute it.

B. 1. Notwithstanding any other provisions of law, there is hereby established a
Public Rights-of-Way Use Fee to replace any and all fees of general application
(except for zoning, subdivision, site plan and comprehensive plan fees of
general application) otherwise chargeable to a provider of telecommunications
service by the Commonwealth Transportation Board or a locality in connection
with a permit for such occupation and use granted in accordance with § 56-458
or § 56-462. Cities and towns whose public streets and roads are not maintained
by the Virginia Department of Transportation, and any county that has withdrawn
or elects to withdraw from the secondary system of state highways under the
provisions of § 11 of Chapter 415 of the Acts of Assembly of 1932, may impose
the Public Rights-of-Way Use Fee on the ultimate end-users of local
telecommunications service only by local ordinance. Localities, their
authorities or commissions, and the Commonwealth Transportation Board may allow
providers of telecommunications services and cable operators to use their
electric poles or electric conduits in exchange for payment of a fee.

   2. The Public Rights-of-Way Use Fee established by this section is hereby
   imposed on all cable operators that use the public rights-of-way.

C. The amount of the Public Rights-of-Way Use Fee shall be calculated annually
by the Department of Transportation (VDOT), based on the calculations described
in subsection D of this section. In no year shall the amount of the fee be less
than $0.50 per access line per month.

D. The annual rate of the Public Rights-of-Way Use Fee shall be calculated by
multiplying the number of public highway miles in the Commonwealth by a highway
mileage rate (as defined in subsection E of this section), and by adding the
number of feet of new installations in the Commonwealth (multiplied by $1 per
foot), and dividing this sum by the total number of access lines in the
Commonwealth. The monthly rate shall be this annual rate divided by 12.

E. The annual multiplier per mile is $425 per mile beginning July 1, 2001 and
thereafter.

F. The data used for the calculation in subsection D shall be based on the
following information and schedule: (i) all providers of telecommunications
services shall remit to VDOT by December 1 of each year data indicating the
number of feet of new installations made during the one-year period ending
September 30 of that year, which shall be auditable by affected localities, and
the number of access lines as of September 30 of that year, which shall be
auditable by affected localities; and (ii) the public highway mileage from the
most recently published VDOT report. By the following January 15, VDOT shall
calculate the Public Rights-of-Way Use Fee to be used in the fiscal year
beginning the next ensuing July 1 and report it to all affected localities and
providers of local telecommunications services.

G. A provider of local telecommunications service shall collect the Public
Rights-of-Way Use Fee on a per access line basis and the cable operator shall
collect the Public Rights-of-Way Use Fee on a per subscriber basis by adding the
fee to each ultimate end user&#8217;s monthly bill for local telecommunications
service or cable service. A company providing both local telecommunications
service and cable service to the same ultimate end user may collect only one
Public Rights-of-Way Use Fee from that ultimate end user based on (i) the local
telecommunications service if the locality in which the ultimate end user
resides has imposed a Public Rights-of-Way Use Fee on local telecommunications
service or (ii) cable service if the locality in which the subscriber resides
has not imposed a Public Rights-of-Way Use Fee on local telecommunications
service. The Public Rights-of-Way Use Fee shall, when billed, be stated as a
distinct item separate and apart from the monthly charge for local
telecommunications service and cable service. Until the ultimate end user pays
the Public Rights-of-Way Use Fee to the local telecommunications service
provider or cable operator, the Public Rights-of-Way Use Fee shall constitute a
debt of the consumer to the locality, VDOT, or the Department of Taxation, as
may be applicable. If any ultimate end user or subscriber refuses to pay the
Public Rights-of-Way Use Fee, the local telecommunications service provider or
cable operator shall notify the locality, VDOT, or the Department of Taxation,
as appropriate. All fees collected in accordance with the provisions of this
section shall be deemed to be held in trust by the local telecommunications
service provider and the cable operator until remitted to the locality, VDOT, or
the Department of Taxation, as applicable.

H. Within two months after the end of each calendar quarter, each provider of
local telecommunications service shall remit the amount of Public Rights-of-Way
Use Fees it has billed to ultimate end users during such preceding quarter, as
follows:

   1. The provider of local telecommunications service shall remit directly to
   the applicable locality all Public Rights-of-Way Use Fees billed in (i)
   cities; (ii) towns whose public streets and roads are not maintained by VDOT;
   and (iii) any county that has withdrawn or elects to withdraw from the
   secondary system of state highways under the provisions of &#xA7; 11 of
   Chapter 415 of the Acts of Assembly of 1932 and that has elected not to
   return, provided, however, that such counties shall use a minimum of 10% of
   the Public Rights-of-Way Use Fees they receive for transportation construction
   or maintenance purposes. Any city currently subject to &#xA7; 15.2-3530 shall
   use a minimum of 90% of the Public Rights-of-Way Use Fees it receives for
   transportation construction or maintenance purposes.

   2. The Public Rights-of-Way Use Fees billed in all other counties shall be
   remitted by each provider of local telecommunications service to VDOT. VDOT
   shall allocate the total amount received from providers to the construction
   improvement program of the secondary system of state highways. Within such
   allocation to the secondary system, VDOT shall apportion the amounts so
   received among the several counties, other than those described in clause
   (iii) of subdivision 1, on the basis of population, with each county being
   credited a share of the total equal to the proportion that its population
   bears to the total population of all such counties. For purposes of this
   section the term &#8220;population&#8221; shall mean either population
   according to the latest United States census or the latest population estimate
   of the Weldon Cooper Center for Public Service of the University of Virginia,
   whichever is more recent. Such allocation and apportionment of Public
   Rights-of-Way Use Fees shall be in addition to, and not in lieu of, any other
   allocation of funds to such secondary system and apportionment to counties
   thereof provided by law.

I. The Public Rights-of-Way Use Fee billed by a cable operator shall be remitted
to the Department of Taxation for deposit into the Communication Sales and Use
Tax Trust Fund by the twentieth day of the month following the billing of the
fee.

J. Any locality with a franchise agreement, ordinance implementing a franchise
agreement or other form of consent allowing the use of the public rights-of-way
by a provider of local telecommunications service, existing prior to July 1,
1998, or any city or town with an ordinance or code section imposing a franchise
fee or charge on a provider of local telecommunications service in effect as of
February 1, 1997, may elect to continue enforcing such existing franchise,
ordinance or code section or other form of consent in lieu of receiving the
Public Rights-of-Way Use Fee; provided, however, that such city or town does not
(i) discriminate among telecommunications service providers and (ii) adopt any
additional rights-of-way management practices that do not comply with
&#xA7;&#xA7; 56-458 C and 56-462 C. The Public Rights-of-Way Use Fee shall not
be imposed in any such locality.
			Any locality electing to adopt the Public Rights-of-Way Use Fee by ordinance
shall notify all affected providers of local telecommunications service no later
than March 15 preceding the fiscal year. Such notice shall be in writing and
sent by certified mail from such locality to the registered agent of the
affected provider or providers of local telecommunications service.

HISTORY: 1998, cc. 742, 758; 2002, cc. 479, 489; 2006, c. 780.