SR 424: Senate Study Committee on Franchise Fees; create

Senate Resolution 424

By: Senators Hufstetler of the 52nd, Albers of the 56th, Tillery of the 19th, Cowsert of the 46th, Watson of the 1st and others

ADOPTED SENATE

A RESOLUTION

Creating the Senate Study Committee on Franchise Fees; and for other purposes.

WHEREAS, the substantial growth of large load electricity customers is impacting many unincorporated areas of this state; and

WHEREAS, municipalities lease their rights of way under franchise agreements to electric utility providers and receive significant compensation in return, including from within many unincorporated areas of this state; and

WHEREAS, the right for an electric utility provider to utilize county rights of way to reach its customers has economic value that is not currently being recognized for the benefit of the county and its unincorporated area residents; and

WHEREAS, for decades, residents of unincorporated areas have paid municipal franchise fees to cities in which they do not reside through a charge included in the base rate of their electricity bills; and

WHEREAS, the unprecedented growth of large load electricity customers necessitates a reconsideration of the assessment and allocation of municipal franchise fees for electric services within unincorporated areas of this state; and

WHEREAS, this state has a compelling government interest to ensure that large load electricity customers, which are particularly situated, are assessed franchise fees or tariffs as a condition of conducting their operations in the unincorporated areas of the county.

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE:

(1) Creation of Senate study committee. There is created the Senate Study Committee on Franchise Fees.

(2) Members and officers. The committee shall be composed of five members of the Senate to be appointed by the President of the Senate. The President of the Senate shall designate a member of the committee as chairperson of the committee.

(3) Powers and duties. The committee shall undertake a study of the conditions, needs, issues, and problems mentioned above or related thereto and recommend any action or legislation which the committee deems necessary or appropriate.

(4) Meetings. The chairperson shall call all meetings of the committee. The committee may conduct such meetings at such places and at such times as it may deem necessary or convenient to enable it to exercise fully and effectively its powers, perform its duties, and accomplish the objectives and purposes of this resolution.

(5) Allowances and funding.

(A) The legislative members of the committee shall receive the allowances provided for in Code Section 28-1-8 of the Official Code of Georgia Annotated.

(B) The allowances authorized by this resolution shall not be received by any member of the committee for more than five days unless additional days are authorized. Funds necessary to carry out the provisions of this resolution shall come from funds appropriated to the Senate.

(6) Report.

(A) In the event the committee adopts any specific findings or recommendations that include suggestions for proposed legislation, the chairperson shall file a report of the same prior to the date of abolishment specified in this resolution, subject to subparagraph (C) of this paragraph.

(B) In the event the committee adopts a report that does not include suggestions for proposed legislation, the chairperson shall file the report, subject to subparagraph (C) of this paragraph.

(C) No report shall be filed unless the same has been approved prior to the date of abolishment specified in this resolution by majority vote of a quorum of the committee. A report so approved shall be signed by the chairperson of the committee and filed with the Secretary of the Senate.

(D) In the absence of an approved report, the chairperson may file with the Secretary of the Senate a copy of the minutes of the meetings of the committee in lieu thereof.

(7) Abolishment. The committee shall stand abolished on December 1, 2025.