H. B. 4625


(By Delegates Leach, Higgins, Michael and Huntwork)
[Introduced February 28, 1994; referred to the
Committee on the Judiciary.]




A BILL to amend and reenact section eleven, article eighteen, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to cable television systems generally; providing that franchising authorities conduct annual reviews of cable franchise; allowing franchising authorities to amend, change, suspend and revoke franchise agreements; and providing an appeal process for any operator adversely affected by a decision of a franchising authority.

Be it enacted by the Legislature of West Virginia:

That section eleven, article eighteen, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 18. WEST VIRGINIA CABLE TELEVISION SYSTEMS ACT.

§ 5-18-11. Issuance of cable franchise authority; criteria; content; review; appeals.

(a) A franchising authority is empowered to issue a cable franchise to construct or operate facilities for a cable system upon the terms and conditions provided in this article.

(b) The franchising authority, after a public hearing as provided in this article, shall issue a cable franchise to the applicant when the franchising authority is convinced that it is in the public interest to do so. In determining whether a cable franchise shall be issued, the franchising authority shall take into consideration, among other things, any objections arising from the public hearing, the content of the application or proposal, the public need for the proposed service, the ability of the applicant to offer safe, adequate and reliable service at a reasonable cost to the subscribers, the suitability of the applicant, the financial responsibility of the applicant, the technical and operational ability of the applicant to perform efficiently the service for which authority is requested, and any other matters as the franchising authority considers appropriate in the circumstances.
(c) In determining the area which is to be serviced by the applicant, the franchising authority shall take into account the geography and topography of the proposed service area, and the present, planned and potential expansion in facilities or cable services of the applicant's proposed cable system and any of the applicant's existing cable systems.
(d) In issuing a cable franchise under this article, the franchising authority is not restricted to approving or disapproving the application or proposal, but may issue it for only partial exercise of the privilege sought or may attach to the exercise of the right granted by the cable franchise terms, limitations which the franchising authority considers the public interest may require. The cable franchise shall be nonexclusive, shall include a description of the service area in which the cable system is to be constructed, extended or operated and the approximate date on which the service is to commence and shall authorize the cable operator to provide service for a term of fifteen years contingent upon satisfactory performance as determined by the franchising authority after an annual review of the service by the franchising authority.
(e) When deemed necessary and not less than once each year, the franchising authority shall undertake a review of the services provided by cable operators operating under a franchise agreement with the franchising authority. The review shall include, insofar as is permissible under federal law: (1) The reasonableness and appropriateness of cable rates; (2) the quality and quantity of channel selections; (3) the quality of service provided; and (4) the commitment of the operator to providing a quality service to the community including reducing rates to consumers who are aged, disabled, homebound or poor.
(f) Following the annual review, the franchising authority may amend, change, suspend or revoke a franchise agreement with any cable operator found to be providing substandard services as determined by the authority. A cable operator adversely affected by a decision of a franchising authority to amend, change, suspend or revoke a franchise agreement may file an appeal with the cable television advisory board. Within thirty days of receipt of the appeal, the full membership of the cable television advisory board shall hold a hearing on the matter. Following the hearing, the cable television advisory board shall issue a decision on the appeal which shall be by majority vote of the members and shall be binding on both parties. The decision may uphold, amend or reverse the decision of the franchising authority and shall be issued within thirty days after the hearing on the matter.



NOTE: The purpose of this bill is to provide that franchising authorities conduct annual reviews of cable franchises and to allow franchising authorities to amend, change, suspend or revoke franchise agreements following the review. The bill also provides an appeal process for use by cable operators adversely affected by a decision of the franchising authority.

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