The Outdoor Advertising Permit — Type and Issuance
The placement of outdoor advertising is provided for in the catalogue of permit types of the licensing law as a distinct type, and its issuance rule is established within the same law: the outdoor advertising placement permit is issued by way of auction. The separation is principled — the use of property in the public sector for advertising is distributed through competitive selection in the market, not through a direct application.
The hierarchy of issuance is likewise written in the law itself: the decision on introducing the permit regulation is the discretionary power of the respective municipality’s representative organ — the sakrebulo; where the decision is taken, the permit is issued by the executive organ of the municipality, and in a self-governing city — by the executive organ of that self-governing city or a legal entity of public law founded by it.
The Auction Rule
The permit is issued on the basis of assuming the obligation to comply with the established norms and rules and submitting the highest price. In other words, the participant first assumes the duty to observe the norms and then bids — the winner is the one who offers the highest price on the established conditions. The seeker who wins the auction pays, to obtain the permit, only the issuance price according to the auction results — no other charge applies to this permit, and no fee exists.
The conditions and procedure of the auction are established by the respective municipality’s representative organ, with the general basic requirements of the law observed; that organ also determines the procedure for setting the starting price and the settlement. Therefore, when planning a concrete location, the local auction announcement and its conditions must be verified first.
Where the Permit Applies — and Where It Does Not
The law draws the boundary of this permit clearly: the outdoor advertising placement permit established by this law is issued only for the placement of outdoor advertising on a land plot or other property owned by the state or a municipality. The placement of outdoor advertising on a land plot or other property owned by a natural person or legal entity of private law, or another organized entity provided for by Georgian legislation, does not require this permit. This distinction is decisive for any business plan: on public property the road runs through an auction, on private property — through a direct agreement with the owner.
The Interim Legal Regulation
In the sphere of outdoor advertising, norms of an interim character also apply: under them, the introduction of the permit regulation of outdoor advertising contemplated by the law is admissible only on the territories of the capital of Georgia — Tbilisi — and of self-governing cities. In addition, the interim regulation preserves a transitional mechanism: the term of contracts formed before the auctions under the procedure established by legislation may, by agreement of the parties, be extended without a permit — up to the term of the permit issued as a result of the first auction conducted by the local self-government organ.
Because the frame rests on norms of an interim character, the rules change: the auction calendar, the details of the norms and the procedures live in the acts of the representative organs, and these acts differ between cities — so for each place and for each announcement the verification fits anew every time.
Frequently Asked Questions
Below we answer the questions most frequently asked about outdoor advertising permits.
How is the outdoor advertising permit issued?
By way of auction — on the basis of assuming the obligation to comply with established norms and submitting the highest price. The winner pays only the issuance price; no fee is charged.
Who conducts the auction?
The respective municipality’s representative organ establishes the conditions and the conduct procedure; the permit is issued by the executive organ or a legal entity of public law founded by it.
Where is permit regulation admissible?
Under the interim regulation — only on the territories of Tbilisi and self-governing cities.
Is a permit needed on private property?
No — placement on property owned by a natural person, a private-law legal entity or another organized entity does not require this permit; the permit is issued only for state- or municipality-owned objects.
What happens to old contracts?
Their term may, by agreement of the parties, be extended without a permit — up to the term of the permit issued at the first auction.
How We Help on Legal.ge
On Legal.ge we prepare participants for outdoor advertising auctions: we analyse the conditions announced by the municipality, fix the obligations that are the precondition of the price, and account for the issuance price according to the auction results; in the private-property case we structure the legal frame of the relationship with the owner. Contact us — the permit question must be built from the concrete announcement.