BILL WOULD PUT CAPITOL ON CABLE TV IN '94.(CAPITAL REGION)

Byline: TOM PRECIOUS Capitol bureau

A statewide, commercial-free television channel showing the internal workings of state government could be on the air by the beginning of next year -- just in time for the 1994 elections -- under a proposal by Gov. Mario M. Cuomo.

The plan, debated for months among the Cuomo administration, the Legislature and the cable industry, would create a network based on the model of C-SPAN, which televises federal government proceedings and other public affairs programs.

Whether the New York government cable channel will be as widely praised as C-SPAN for its balanced coverage of politics and controversial issues will …