HB1384: HB1384 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 utility companies, like electric providers, letting those companies use city streets in exchange for fees paid to the city. Currently cities keep that franchise revenue. This bill amends Georgia's local government code (O.C.G.A. § 36-34-2) to require cities to send 25 percent of the total revenue they collect from franchise agreements or contracts with electric light or power companies to the county in which the city sits. For cities that span more than one county, the money owed to counties would be split based on each county's unincorporated population, using the most recent U.S. Census figures. The bill also keeps an existing requirement that utility fees tied to franchise agreements be itemized on customer bills, unless those fees are baked into system-wide rates. The bill repeals any conflicting laws but does not state a specific effective date beyond the standard process.

• Requires every Georgia municipality to remit 25 percent of total revenue from electric light or power company franchise agreements to its home county.
• Splits that required payment pro rata among multiple counties, based on each county's unincorporated population, for cities that cross county lines.
• Keeps the existing rule that utility franchise fees charged to customers must be itemized on bills, unless folded into base rates.
• Repeals any existing state laws that conflict with this new revenue-sharing requirement.

Georgia municipalities that hold franchise agreements with electric or power companies, the counties that would receive a share of that revenue, electric utility customers whose bills show itemized franchise fees, and city governments that currently keep all franchise revenue.

Cities would lose a quarter of a specific revenue stream, electric franchise fees, that currently funds municipal budgets, while counties, especially those with land inside multi-county cities, would gain a new funding source tied to population.

• Section 1 revises paragraph (7) of O.C.G.A. § 36-34-2, which governs municipal power to grant utility franchises for use of city streets.
• Subparagraph (B) requires franchise-related fees charged to utility customers to be itemized on bills, except when included in system-wide rates.
• Subparagraph (C) creates the new requirement: municipalities must remit 25 percent of total revenue from electric or power company franchise agreements to their county.
• For municipalities spanning multiple counties, the remitted revenue is divided pro rata by each county's unincorporated population per the latest decennial census.
• Section 2 repeals any conflicting laws.

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
• county and city revenue sharing
• utility franchise fees
• electric utility bills