Proposed law could cost municipalities money and control

If BellSouth and other cable providers had their way, state lawmakers would pass legislation that establishes a statewide franchise for companies who provide cable television service.

Currently, local governments negotiate their own franchise fee with the cable provider based on the gross revenues of the company.

BellSouth and the cable providers insist the legislation which has been introduced in both the House and Senate will allow more competition and lower costs to the consumer.

But the Municipal Association of South Carolina (MASC) doesn’t agree.

The MASC claims the current franchise fees are non-exclusive, opening the door for other companies to obtain the cable franchise.

The MASC believes the legislation is at odds with the state constitution since Article 81 charges city councils with the responsibility of managing public rights-of-way.

If the legislation is passed, it could impact local government’s revenues. According to the MASC, the bills change the formula used to calculate how much cable companies pay cities under the franchise agreements. Payments are currently based on gross revenues.

The MASC maintain that revenues to local governments would be reduced.

The City of Gaffney currently receives an annual franchise fee of $91,000 from BellSouth and another $80,000 from Charter Communication.

“Revenues are part of it but we would lose our ability to control some of the things the (cable providers) can do on the rights-of-way. This (legislation) would take control from the local government,” Gaffney Administrator James Taylor said.