Georgia CommonsHouse · Introduced · 2025-2026 Regular Session
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
Last action February 24, 2026 · House Second Readers
House Bill 1384 would require Georgia cities to send counties 25 percent of the revenue they collect from electric utility franchise agreements, splitting payments among counties for cities that span more than one county line.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Introduced version, the latest the General Assembly's website lists.
In plain language
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.
What the bill does
- 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.
Who it affects
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.
Why it matters
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.
Key provisions
- 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.
From the bill
“Each municipality shall remit 25 percent of the total revenue generated from franchise agreements or contracts with electric light or power companies authorized by this paragraph to the county in which such municipality is located.”
“the total amount remitted to the counties shall be divided pro rata based on each county's population according to the most recent United States decennial census with each county's population including only the unincorporated population of the county.”
Discussed in meetings (2)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Governmental Affairs Committee, March 2, 2026
From 0:48:21 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor presented a substitute requiring municipalities to remit 25% of certain utility franchise revenue to counties. The sponsor argued that unincorporated residents pay charges without receiving city services and said the bill would redistribute revenue without raising utility bills. An ACCG witness supported aligning revenue with counties’ road responsibilities. Asked about exceptions, the sponsor said the substitute excluded counties with at least 75% incorporated land and addressed cities crossing county lines. Asked for the statewide transfer amount, the sponsor provided none. A Georgia Municipal Association witness opposed the bill, describing franchise payments as rent for city rights of way. The witness said utilities separately decide how to recover that expense from customers, with Georgia Power’s approach differing from some electric cooperatives. The witness cited $257 million in statewide franchise revenue in 2024 and said the substitute’s county exception appeared to cover only Fulton County. Members questioned the revenue loss to cities, possible replacement taxes and alternatives for addressing charges to unincorporated residents. The witness suggested separate authority for county franchise fees. The sponsor maintained that county residents deserved a local benefit. The chair designated the discussion a hearing only, and no vote occurred.
Status timeline
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Mitchell Scoggins (R, HD-14)
- Chuck Efstration (R, HD-104)
- James Burchett (R, HD-176)
- Trey Kelley (R, HD-16)
- Chas Cannon (R, HD-172)
- Victor Anderson (R, HD-10)
Topics
- local government funding
- franchise fees
- county revenue
- electric utilities
- municipal law