SR 424: Senate Study Committee on Franchise Fees; create

Cities in Georgia collect franchise fees from electric utility companies for the right to use city rights of way, and those fees get passed on to customers, including people who live in unincorporated county areas outside any city. This resolution creates the Senate Study Committee on Franchise Fees to look at whether that arrangement still makes sense, particularly as large electricity users (sometimes called large load customers, such as big industrial facilities or data centers) grow rapidly in unincorporated areas. The committee will have five state senators appointed by the President of the Senate, one serving as chairperson. It can hold meetings, study the issue, and recommend legislation. Members get standard legislative daily allowances for up to five meeting days, paid from Senate funds. The committee must file any report and recommendations before it is automatically dissolved 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 for electric service are assessed and allocated in unincorporated county areas.
• Authorizes the committee to hold meetings, gather information, and recommend legislation on the topic.
• Allows legislative members to receive standard daily allowances (under O.C.G.A. § 28-1-8) for up to five meeting days, funded by the Senate.
• Requires any approved findings or recommendations to be filed as a report with the Secretary of the Senate before the committee ends.
• Sets the committee to automatically dissolve on December 1, 2025.

State senators appointed to the committee, county governments and residents of unincorporated areas who currently help pay municipal franchise fees through their electric bills, municipalities that collect those fees, and electric utility providers operating in county rights of way.

The committee's work could lead to legislation changing who pays franchise fees for electric utility use of county roads and rights of way, particularly affecting unincorporated area residents and large industrial electricity users, though this resolution itself only creates a study process rather than changing any fee.

• Paragraph (1) creates the Senate Study Committee on Franchise Fees.
• Paragraph (2) sets the committee 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 if appropriate.
• Paragraph (5) sets member allowances under O.C.G.A. § 28-1-8, capped at five days unless extended, funded from Senate appropriations.
• Paragraph (6) requires any approved 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-52)Primary sponsor
• John Albers (R, SD-56)
• Blake Tillery (R, SD-19)
• Bill Cowsert (R, SD-46)
• Ben Watson (R, SD-1)
• Carden Summers (R, SD-13)
• Max Burns (R, SD-23)

1. PassedSenate voteApril 2, 2025

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

   CONSENT CALENDAR FOR SENATE STUDY COMMITTEES: Senate Vote #380

• franchise fees
• electric utilities
• unincorporated counties
• legislative study committees
• large load electricity customers