SR424: SR424 Senate Study Committee on Franchise Fees; create

Cities lease their rights of way to electric utility companies through franchise agreements and collect fees in return, even from customers living in unincorporated county areas who never signed such agreements. This resolution creates the Senate Study Committee on Franchise Fees to look at whether that arrangement still makes sense, especially as large electricity users (like data centers or industrial facilities) grow in unincorporated areas. The committee will have five state senators appointed by the President of the Senate, who will also name a chairperson. It can hold meetings, study the issue, and recommend legislation. Members get standard legislative allowances for up to five meeting days, paid from Senate funds. The committee must file any report and recommendations before it is abolished on December 1, 2025.

• Creates the Senate Study Committee on Franchise Fees, made up of five senators appointed by the President of the Senate.
• Directs the committee to study how municipal franchise fees on electric utilities are assessed and allocated in unincorporated county areas.
• Authorizes the committee to hold meetings and recommend legislation or other action based on its findings.
• Provides legislative members standard daily allowances under O.C.G.A. § 28-1-8 for up to five meeting days, funded through Senate appropriations.
• Sets December 1, 2025 as the date the committee is abolished, by which time it must file any approved report.

State senators appointed to the committee, electric utility companies that hold franchise agreements with cities, municipalities that collect franchise fees, and residents and large electricity customers in unincorporated county areas whose bills include those fees.

If the committee's work leads to new legislation, it could change who collects franchise fees from electricity users in unincorporated areas and how those fees are calculated, particularly as large industrial power users expand in those areas.

• Paragraph 1 creates the Senate Study Committee on Franchise Fees.
• Paragraph 2 sets committee membership at five senators appointed by the President of the Senate, who also names the chairperson.
• Paragraph 3 charges the committee with studying franchise fee assessment and allocation issues and recommending legislation.
• Paragraph 5 sets member allowances under O.C.G.A. § 28-1-8, capped at five days unless additional days are authorized, funded from Senate appropriations.
• Paragraph 6 requires any adopted report or recommendations to be filed with the Secretary of the Senate before abolishment.
• Paragraph 7 abolishes the committee on December 1, 2025.

1. 2025-04-02Senate Passed/Adopted (Senate)
2. 2025-03-28Senate Read Second Time (Senate)
3. 2025-03-28Senate Committee Favorably Reported (Senate)
4. 2025-03-21Senate Read and Referred (Senate)
5. 2025-03-20Senate Hopper (Senate)

• Chuck Hufstetler (R, SD-052)Primary sponsor
• John Albers (R, SD-056)
• Blake Tillery (R, SD-019)
• Bill Cowsert (R, SD-046)
• Ben Watson (R, SD-001)
• Carden Summers (R, SD-013)
• Max Burns (R, SD-023)

1. PassedSenate voteApril 2, 2025

   52 yea, 0 nay (3 not voting, 1 absent)

   Consent Calendar For Senate Study Committees: Senate Vote #380

• franchise fees
• electric utilities
• unincorporated areas
• state senate study committees
• utility regulation