HB 1384: Local government; require municipalities to remit a portion of revenue generated through certain franchise agreements to the county in which they are located

Georgia cities can grant franchises to public utilities, like electric companies, to use city streets, and collect fees in return. Under current law, cities keep that revenue. This bill amends Georgia's local government code (O.C.G.A. § 36-34-2) so that municipalities must remit 25 percent of the total revenue they collect from franchise agreements or contracts with electric light or power companies to the county where the municipality sits. For a municipality that spans more than one county, the 25 percent share would be divided among those counties based on each county's population, counting only the unincorporated population (people living outside any city) according to the most recent U.S. Census. The bill keeps existing rules requiring franchise fees to be itemized on customer utility bills. It repeals any conflicting laws but does not include a specific effective date beyond standard enactment.

• Requires every Georgia municipality to remit 25 percent of total revenue from electric light or power company franchise agreements to its home county.
• Directs that for municipalities located in more than one county, the 25 percent payment be split among the counties based on population.
• Specifies that the population split uses only each county's unincorporated population from the latest U.S. decennial census.
• Leaves in place the existing requirement that franchise fees charged to customers be itemized on utility bills or invoices.

City governments that collect franchise fees from electric utilities, county governments that would newly receive a share of that revenue, and residents of unincorporated areas whose population counts determine how payments are divided among multiple counties.

Cities would lose a quarter of their electric franchise fee revenue to county governments, shifting money that currently funds municipal budgets. Counties, especially those with large unincorporated populations, would gain a new, ongoing revenue stream tied to utility franchise activity within their borders.

• Section 1 amends paragraph (7) of O.C.G.A. § 36-34-2, which governs municipal power to grant utility franchises within city streets.
• Adds new subparagraph (C) requiring municipalities to remit 25 percent of total revenue from electric light or power company franchise agreements to the county they are located in.
• For municipalities spanning multiple counties, the remitted amount is divided pro rata using each county's unincorporated population from the most recent census.
• Section 2 repeals any laws that conflict with the new requirement.

1. 2026-02-24House Second Readers (House)
2. 2026-02-20House First Readers (House)
3. 2026-02-19House Hopper (House)

• Mitchell Scoggins (R, HD-014)Primary sponsor
• Chuck Efstration (R, HD-104)
• James Burchett (R, HD-176)
• Trey Kelley (R, HD-016)
• Charles Cannon (R, HD-172)
• Victor Anderson (R, HD-010)

• local government funding
• franchise fees
• county revenue
• electric utilities
• municipal law