GMA's Cable and Telecommunications Management Services program provides full-service consulting assistance on all aspects of cable and telecommunications franchising that helps Georgia local government keep pace with changes in federal and state law and Federal Communications Commission (FCC) rule changes.
New Law Strengthen Local Role in Street Occupancy by Telephone Companies
Effective July 1, 2008 telephone companies are required by an amended Georgia law to pay “due compensation” to municipalities and to obtain local government approval to maintain and operate lines and facilities occupying municipal streets.
The amended law, found in Chapter 5 of Title 46 of the Georgia Code, preempts and replaces the local franchising process. Existing franchise fee and occupational license tax payments greater than 3% of local recurring revenues are grandfathered until the expiration of the franchise or December 31, 2012, whichever is earlier. Payments thereafter will be at the statutory rate.
Telephone companies currently operating in the municipal right of way without valid local agreements or permits are required to file an application with the municipality prior to October 1, 2008. Such telephone companies are then required to pay “due compensation.”
The law allows each municipal authority to annually audit the business records of a telephone company to the extent necessary to ensure payment in accordance with the amended Code section. Records provided by the company during such audit are exempt from public inspection under Code Section 50-18-70. This exemption also applies to the application information.
The amended telephone legislation allows local governments to adopt and enforce reasonable local ROW ordinances that are generally applicable to all users of the right of way. It is important to consider whether modifications to local ROW ordinances are necessary to address protection of the ROW and important restoration provisions normally found in a local franchise agreement.
Changes in Georgia Law
In 2007 the Georgia legislature adopted the Georgia Consumer Choice for Television Act, which establishes an alternative statewide regulatory scheme for the provision of cable/video service in Georgia (i.e., a state franchise).
The new law affects any community that has a cable operator, regardless of whether the franchise agreement is in effect or has expired. Beginning January 1, 2008, cable operators can apply for a cable or video service authorization from the Georgia Secretary of State and "opt out" of their current local agreements. Some communities also may see new providers entering the market under a state franchise.
Local franchising remains an option under the new state law, but local negotiations will be affected by comparison with the terms and 45-day application period for the issuance of a state franchise and by a recent FCC policy change that requires local governments to process franchise applications from new providers in less than six months.
Cost of Program Membership
Members of the GMA program receive all services for an annual membership fee. No additional fees or costs for attorneys or travel related expenses are required.