H. B. 2791

(By Delegate Seacrist)

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[Introduced March 27, 1997; referred to the Committee
Government Organization.]
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A BILL to repeal sections six and seven, article eighteen, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to amend and reenact sections three, eight and twenty-eight, article eighteen of said chapter; and to amend and reenact section one, article two, chapter twenty-four of said code, all relating to abolishing the West Virginia cable television advisory board and transferring jurisdiction of cable television services to the West Virginia public service commission.

Be it enacted by the Legislature of West Virginia:
That sections six and seven, article eighteen, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be repealed; that sections three, eight and twenty-eight, article eighteen of said chapter be amended and reenacted; and that section one, article two, chapter twenty- four of said code be amended and reenacted, all to read as follows:
CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR,

SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD

OF PUBLIC WORKS; MISCELLANEOUS AGENCIES, COMMISSIONS,

OFFICES, PROGRAMS, ETC.

ARTICLE 18. WEST VIRGINIA CABLE TELEVISION SYSTEMS ACT.

§5-18-3. Definitions.

As used in this article:
(1) "Applicant" means a person who initiates an application or proposal.
(2) "Application" means an unsolicited filing for a cable franchise.
(3) "Basic cable service" means any service tier which includes the retransmission of local television broadcast signals.
(4) "Board" means the West Virginia cable television advisory board created under the provisions of this article West Virginia public service commission.
(5) "Cable franchise" means a nonexclusive initial authorization or renewal thereof issued pursuant to this article, whether the authorization is designated as a franchise, permit, order, contract, agreement or otherwise, which authorizes the construction or operation of a cable system.
(6) "Cable operator" means any person or group of persons: (A) Who provides cable service over a cable system and directly or through one or more affiliates owns a significant interest in the cable system; or (B) who otherwise controls or is responsible for, through any arrangement, the management and operation of a cable system.
(7) "Cable service" means: (A) The one-way transmission to subscribers of video programming or other programming service; and (B) subscriber interaction, if any, which is required for the selection of video programming or other programming service.
(8) "Cable system" means any facility within this state consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within a community, but does not include: (A) A facility that serves only to retransmit the television signals of one or more television broadcast stations; (B) a facility that serves only subscribers in one or more multiple unit dwellings under common ownership, control or management, unless that facility or facilities uses any public right-of-way; or (C) a facility of a public utility subject, in whole or in part, to the provisions of chapter twenty-four of this code, except to the extent that those facilities provide video programming directly to subscribers.
(9) "County commission" means the commissioners composing the county commission in pursuance of section nine, article IX of the constitution of this state within whose jurisdiction there exists a cable system or where such cable system is hereafter constructed, operated, acquired or extended.
(10) "Facility" includes all real property, antennas, poles, supporting structures, wires, cables, conduits, amplifiers, instruments, appliances, fixtures and other personal property used by a cable operator in providing service to its subscribers.
(11) "Franchising authority" means a municipality, a county commission or the West Virginia cable television advisory board public service commission.
(12) "Institution of higher education" means an academic college or university accredited by the North Central Association of Colleges and Schools.
(13) "Municipality" means any municipal corporation duly chartered in the state of West Virginia within whose jurisdiction there exists a cable system or where such the cable system is hereafter constructed, operated, acquired or extended.
(14) "Other programming service" means information that a cable operator makes available to all subscribers generally.
(15) "Person" means an individual, partnership, association, joint stock company, trust, corporation or governmental agency.
(16) "Proposal" means a filing solicited by the franchising authority for a cable franchise.
(17) "Public, educational or governmental access facilities" means: (A) Channel capacity designated for public, educational or governmental uses; and (B) facilities and equipment for the use of that channel capacity.
(18) "Public place" includes any property, building, structure or water to which the public has a right of access and use.
(19) "School" means an academic and noncollege type regular or special education institution of learning established and maintained by the department of education and the arts or licensed and supervised by that department.
(20) "Service area" means the geographic area for which a cable operator has been issued a cable franchise.
(21) "Video programming" means programming provided by, or generally considered comparable to programming provided by, a television broadcast station.
§5-18-8. Duties of the public service commission.

The West Virginia cable television advisory board public service commission shall:
(1) Develop and maintain a statewide plan for the provision of cable services, setting forth the objectives which the commission deems determines to be in the best interest of the citizens of this state;
(2) To the extent permitted by, and not contrary to applicable federal law, rules: and regulations:
(A) Prescribe standards for procedures and practices which franchising authorities shall follow in considering the issuance of cable franchises, which standards shall provide for the forms of applications and proposals, the filing of all franchise applications, proposals and related documents as public records, with reasonable notice to the public that such the records are open to inspection and examination during reasonable business hours; the holding of a public hearing, upon reasonable notice to the public, at which the applications or proposals shall be examined and members of the public and interested parties are afforded a reasonable opportunity to express their views thereon; the rendition of a written report by the franchising authority made to the public, setting forth the reasons for its decision in awarding or not awarding the franchise; and such any other procedural standards governing the issuance of cable franchises mandated by the provisions of this article or as the board may otherwise deem determine necessary or appropriate to assure maximum public participation and competition and to protect the public interest;
(B) Prescribe minimum standards for inclusion in franchises, including maximum initial and renewal terms; minimum channel capacity; provisions regarding public, educational or governmental access facilities; a requirement that no such franchise may be exclusive; standards necessary or appropriate to protect the interests of viewers of free broadcast television and the public generally, which prohibit or limit cable operators from prohibiting or entering into agreements prohibiting the sale or other transfer of rights for the simultaneous or subsequent transmission over free broadcast television; and such any other standards for inclusion in franchises as the board shall deem determine necessary or appropriate to protect the public interest, including any provision regulating the rates for cable services to the extent that the same is not in conflict with federal law, rules or regulations;
(C) Prescribe standards by which a franchising authority shall determine whether an applicant possesses: (i) The technical ability; (ii) the financial ability; (iii) the good character; and (iv) other qualifications necessary to operate a cable system in the public interest;
(D) Prescribe standards for the construction and operation of cable systems, which standards shall be designed to promote: (i) Safe, adequate and reliable service to subscribers; (ii) the construction and operation of systems consistent with the most advanced state of the art; (iii) a construction schedule providing for maximum penetration as rapidly as possible within the limitations of economic feasibility; (iv) the construction of systems with the maximum practicable channel capacity, facilities for local program origination, facilities to provide service in areas conforming to various community interests, facilities with the technical capacity for interconnection with other systems within regions as established in the board's statewide plan and facilities capable of transmitting signals from subscribers to the cable system or to other points; and (v) the prompt handling of inquiries, complaints and requests for repairs;
(E) Prescribe such standards for the prohibition or limitation of concentration of control over mass media and communication companies and facilities and methods of enforcing such any standards, as the board may determine to be necessary or appropriate to protect the public interest: Provided, That nothing contained herein shall be construed to authorize the impairment of any existing rights of any mass media and communication company or any subsidiary thereof;
(3) Provide advice and technical assistance to other franchising authorities and community organizations in matters relating to cable franchises and services;
(4) Establish minimum specifications for equipment, service and safety of cable;
(5) Represent the interests of citizens of this state before the federal communication commission and make available information to the public on communications developments at the federal level;
(6) Stimulate and encourage cooperative arrangements among organizations, institutions, counties and municipalities in the development of public, educational or governmental access facilities;
(7) Maintain liaison with the communications industry and other parties, both public and private, having an interest therein, other states and political subdivisions of this state to promote the rapid and harmonious development of cable services as set forth in the legislative findings and intent of this article;
(8) Undertake such studies as may be necessary to meet the responsibilities and objectives of this article; and
(9) Implement the provisions of this article in a manner which is cognizant of the differing financial and administrative
capabilities of cable systems of different sizes.
§5-18-28. Annual fees; effect of application and filing fees on franchise fees.
(a) Each cable operator shall pay to the board an annual fee in an amount not less than twenty cents per subscriber or such greater annual fee as may be determined by the board. Such The funds and all other funds to be paid to the board under the provisions of this article shall be deposited into a special fund designated the "cable advisory board fund". Such fund shall be used for purposes of administering the provisions of this article. To the extent permitted by federal law, the board may prohibit cable operators from assessing subscribers for any contribution toward the annual fee to be paid hereunder.
(b) Any filing fee required under the provisions of this article and the annual fee to be paid to the board under the provisions of this section, together with any franchise fee paid to any franchising authority, may not exceed the maximum amount for any franchise fee as set forth in 47 U.S.C. §542 as the same is in effect on the effective date of this article.
CHAPTER 24. PUBLIC SERVICE COMMISSION.
ARTICLE 2. POWERS AND DUTIES OF PUBLIC SERVICE COMMISSION.

§24-2-1. Jurisdiction of commission; waiver of jurisdiction.

The jurisdiction of the commission shall extend to all public utilities in this state, and shall include any utility engaged in any of the following public services:
Common carriage of passengers or goods, whether by air, railroad, street railroad, motor or otherwise, by express or otherwise, by land, water or air, whether wholly or partly by land, water or air; transportation of oil, gas or water by pipeline; transportation of coal and its derivatives and all mixtures and combinations thereof with other substances by pipeline; sleeping car or parlor car services; transmission of messages by telephone, telegraph or radio; generation and transmission of electrical energy by hydroelectric or other utilities for service to the public, whether directly or through a distributing utility; supplying water, gas or electricity, by municipalities or others; sewer systems servicing twenty-five or more persons or firms other than the owner of the sewer systems; any public service district created under the provisions of article thirteen-a, chapter sixteen of this code; toll bridges, wharves, ferries; solid waste facilities; and any other public service: Provided, That natural gas producers who provide natural gas service to not more than twenty-five residential customers are exempt from the jurisdiction of the commission with regard to the provisions of such the residential service: Provided, however, That upon request of any of the customers of such natural gas producers, the commission may, upon good cause being shown, exercise such authority as the commission may deem determine appropriate over the operation, rates and charges of such the producer and for such a length of time as the commission may consider to be proper: Provided further, That the jurisdiction the commission may exercise over the rates and charges of municipally operated public utilities is limited to that authority granted the commission in section four-b of this article: And provided further, That the decision-making authority granted to the commission in sections four and four-a of this article shall, in respect to an application filed by a public service district, be delegated to a single hearing examiner appointed from the commission staff, which hearing examiner shall be authorized to carry out all decision-making duties assigned to the commission by said sections, and to issue orders having the full force and effect of orders of the commission.
Jurisdiction of the West Virginia cable television systems act is hereby transferred to the West Virginia public service commission which shall administer the provisions of article eighteen, chapter five of the code, in the place and stead of what was formerly the West Virginia cable television advisory board.
The commission may, upon application, waive its jurisdiction and allow a utility operating in an adjoining state to provide service in West Virginia when:
(1) An area of West Virginia cannot be practicably and economically served by a utility licensed to operate within the state of West Virginia;
(2) Said area can be provided with utility service by a utility which operates in a state adjoining West Virginia;
(3) The utility operating in the adjoining state is regulated by a regulatory agency or commission of the adjoining state; and
(4) The number of customers to be served is not substantial.
The rates the out-of-state utility charges West Virginia customers shall be the same as the rate the utility is duly authorized to charge in the adjoining jurisdiction.
The commission, in the case of any such utility, may revoke its waiver of jurisdiction for good cause.


NOTE: The purpose of this bill is to transfer jurisdiction of the West Virginia cable television advisory board to the West Virginia public service commission.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.