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Oklahoma Association of Municipal Attorneys

Fiber Franchise Fees

Brad Carter

Thu, Dec 30, 2021 8:12 PM

My municipality is interested in having a third-party provide fiber optic network services to our citizens. This would include granting a non-exclusive franchise for the installation of fiber utilizing municipal-owned right-of-ways. In our research, it appears that certain municipalities charge a percentage equivalent to what appears to be a “franchise fee.” I am uncertain if a “franchise fee” is authorized, but it certainly has not deterred the imposition of a fee. Some contracts I have reviewed have identified the fee as a ROW “policing fee”.

Can anyone point me in the right direction? Are franchise fees impermissible? Can any other type of fee be imposed?

Any contracts or material I could review would be most appreciated.

Respectfully,

Brad

M. Bradley Carter

Attorney at Law

P.O. Box 1508

306 N. Second

Seminole, OK 74818-1508

405-380-9990

405-380-9991 facsimile

Mark Ramsey

Fri, Dec 31, 2021 12:10 AM

Good Luck!

Mark H. Ramsey
For the Firm
Taylor, Foster, Mallett,
Downs, Ramsey & Russell, P.C.
P.O. Box 309
Claremore, OK 74018
918-343-4100
918-343-4900 fax
mramsey@soonerlaw.com mailto:apixley@soonerlaw.com
The information contained in this electronic mail transmission (including any accompanying attachments) is intended solely for its authorized recipient(s), and may be confidential and/or legally privileged. If you are not an intended recipient, or responsible for delivering some or all of this transmission to an intended recipient, you have received this transmission in error and are hereby notified that you are strictly prohibited from reading, copying, printing, distributing or disclosing any of the information contained in it. In that event, please contact us immediately by telephone (918) 343-4100 or by electronic mail at postmaster@soonerlaw.com mailto:postmaster@soonerlaw.com and delete the original and all copies of this transmission (including any attachments) without reading or saving in any manner. Thank you.

From: Brad Carter bradcarterlawoffice@gmail.com
Sent: Thursday, December 30, 2021 2:12 PM
To: oama@lists.imla.org
Subject: [Oama] Fiber Franchise Fees

Notice: This email is from an external source. Do not open attachments or click on links from unknown senders or unexpected e-mail.

My municipality is interested in having a third-party provide fiber optic network services to our citizens. This would include granting a non-exclusive franchise for the installation of fiber utilizing municipal-owned right-of-ways. In our research, it appears that certain municipalities charge a percentage equivalent to what appears to be a “franchise fee.” I am uncertain if a “franchise fee” is authorized, but it certainly has not deterred the imposition of a fee. Some contracts I have reviewed have identified the fee as a ROW “policing fee”.

Can anyone point me in the right direction? Are franchise fees impermissible? Can any other type of fee be imposed?

Any contracts or material I could review would be most appreciated.

Respectfully,

Brad

M. Bradley Carter
Attorney at Law
P.O. Box 1508
306 N. Second
Seminole, OK 74818-1508
405-380-9990
405-380-9991 facsimile

I haven’t looked at this in a while. My recollection is that Federal law preempts franchises and franchise fees. My municipalities have contracts with each provider which include a fee equivalent to a franchise fee. The contract authorizes use of ROWs, etc. As I recall, the purpose of the preemption is to prevent misuse in favor of traditional telecommunications companies (like AT&T). Good Luck! Mark H. Ramsey For the Firm Taylor, Foster, Mallett, Downs, Ramsey & Russell, P.C. P.O. Box 309 Claremore, OK 74018 918-343-4100 918-343-4900 fax mramsey@soonerlaw.com<mailto:apixley@soonerlaw.com> The information contained in this electronic mail transmission (including any accompanying attachments) is intended solely for its authorized recipient(s), and may be confidential and/or legally privileged. If you are not an intended recipient, or responsible for delivering some or all of this transmission to an intended recipient, you have received this transmission in error and are hereby notified that you are strictly prohibited from reading, copying, printing, distributing or disclosing any of the information contained in it. In that event, please contact us immediately by telephone (918) 343-4100 or by electronic mail at postmaster@soonerlaw.com<mailto:postmaster@soonerlaw.com> and delete the original and all copies of this transmission (including any attachments) without reading or saving in any manner. Thank you. From: Brad Carter <bradcarterlawoffice@gmail.com> Sent: Thursday, December 30, 2021 2:12 PM To: oama@lists.imla.org Subject: [Oama] Fiber Franchise Fees Notice: This email is from an external source. Do not open attachments or click on links from unknown senders or unexpected e-mail. ________________________________ My municipality is interested in having a third-party provide fiber optic network services to our citizens. This would include granting a non-exclusive franchise for the installation of fiber utilizing municipal-owned right-of-ways. In our research, it appears that certain municipalities charge a percentage equivalent to what appears to be a “franchise fee.” I am uncertain if a “franchise fee” is authorized, but it certainly has not deterred the imposition of a fee. Some contracts I have reviewed have identified the fee as a ROW “policing fee”. Can anyone point me in the right direction? Are franchise fees impermissible? Can any other type of fee be imposed? Any contracts or material I could review would be most appreciated. Respectfully, Brad M. Bradley Carter Attorney at Law P.O. Box 1508 306 N. Second Seminole, OK 74818-1508 405-380-9990 405-380-9991 facsimile