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SR 424

Senate Study Committee on Franchise Fees; create

2025-2026 Regular Session Introduced by John Albers and 6 co-sponsors

Senate Resolution 424 creates a committee to evaluate franchise fees for electric utilities, ensuring fair compensation for unincorporated areas and protecting residents from unfair costs.

Senate Passed/Adopted
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Bill Summary · SR 424

Summary of Senate Resolution 424: Senate Study Committee on Franchise Fees

Bill Information:
- Bill Number: SR 424
- Title: Senate Study Committee on Franchise Fees; create
- Status: Senate Passed/Adopted
- Introduced: March 20, 2025
- Classification: Resolution

Purpose and Intent

Senate Resolution 424 establishes the Senate Study Committee on Franchise Fees to address the growing impact of large load electricity customers on unincorporated areas of the state. The resolution aims to evaluate the current assessment and allocation of municipal franchise fees, particularly in relation to electric utility providers operating in these areas.

Key Provisions

  1. Creation of the Committee:

    • A Senate Study Committee on Franchise Fees is created to investigate issues related to franchise fees and their implications for unincorporated areas.

  2. Membership:

    • The committee will consist of five members of the Senate, appointed by the President of the Senate, who will also designate a chairperson.

  3. Powers and Duties:

    • The committee is tasked with studying the conditions, needs, and issues surrounding franchise fees and making recommendations for any necessary legislative actions.

  4. Meetings:

    • The chairperson will call meetings at times and locations deemed necessary for the committee to fulfill its objectives.

  5. Allowances and Funding:

    • Members will receive allowances as specified in Georgia law, but no member can receive allowances for more than five days unless additional days are authorized. Funding for the committee will come from the Senate's appropriated funds.

  6. Reporting:

    • The committee must file a report with findings and recommendations before its abolishment date. Reports must be approved by a majority vote of the committee members.

  7. Abolishment:

    • The committee is set to be abolished on December 1, 2025.

Impact

The resolution addresses several key issues:
- Economic Value Recognition: It seeks to ensure that the economic value of electric utility providers' use of county rights of way is recognized and compensated appropriately.
- Franchise Fee Assessment: It aims to reconsider how franchise fees are assessed for large load electricity customers, ensuring that residents of unincorporated areas are not unfairly burdened by fees for services they do not directly receive.
- Stakeholder Engagement: The committee's findings could lead to legislative changes that impact municipalities, electric utility providers, and residents in unincorporated areas.

Legislative Timeline

  • March 20, 2025: Bill introduced and placed in the Senate hopper.
  • March 21, 2025: Read and referred to committee.
  • March 28, 2025: Favorably reported by the Senate Committee and read a second time.
  • April 2, 2025: Senate passed/adopted the resolution.

This resolution represents a proactive approach to addressing the complexities of franchise fees in the context of evolving electricity demands and the needs of unincorporated communities in the state.

Compiled from official sources — confirm details with the bill’s official record.

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