08
LC 33 2260
House
Bill 938
By:
Representative Ehrhart of the
36th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 36 of the Official Code of Georgia Annotated, relating to local
government, so as to provide that a franchise fee shall be deemed to be a
franchise tax; to provide that a municipality shall not collect a franchise tax
for the operation of cable television systems from residents in unincorporated
areas; to provide that franchise taxes shall be approved by referendum of a
majority of voters prior to imposition, increase, or extension; to provide that
municipalities must provide access to public utilities regardless of the result
of any referendum; to provide for certain information on itemized bills; to
provide that franchise taxes may not be included in the base rates of a public
utility; to provide that a municipality shall not collect a franchise tax from
public utilities from residents in unincorporated areas; to provide for related
matters; to provide for an effective date; to repeal conflicting laws; and for
other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
36 of the Official Code of Georgia Annotated, relating to local government, is
amended in Code Section 36-18-3, relating to restriction on authority of
counties and municipalities to regulate cable television systems, as
follows:
"36-18-3.
A
county shall neither grant a franchise nor collect a franchise
fee
tax
for the operation of cable television systems within the corporate limits of any
municipality except by agreement with the municipality. A municipality shall
neither grant a franchise nor collect a franchise
fee
tax
for the operation of cable television systems within the unincorporated area of
a county
except by
agreement with the
county."
SECTION
2.
Said
title is further amended by revising paragraph (7) of Code Section 36-34-2,
relating to general powers regarding administration of municipal government, as
follows:
"(7)(A)
The power to grant franchises to or make contracts with railroads, street
railways, or urban transportation companies, electric light or power companies,
gas companies, steam-heat companies, telephone and telegraph companies, water
companies, and other public utilities for the use and occupancy of the streets
of the city, for the purpose of rendering utility services, upon such conditions
and for such time as the governing authority of the municipal corporation may
deem wise and subject to the Constitution and the general laws of this state.
Any fee,
franchise fee, or other similar monetary consideration of any name collected
from or passed on to customers of public utilities or companies as a result of
franchise agreements or contracts shall be deemed to be a franchise tax. On and
after July 1, 2008, no franchise tax shall be imposed, increased, or extended by
a municipality on a public utility through a franchise agreement or contract
unless such tax has been approved by a majority of the qualified voters in the
municipality by referendum conducted at the next regularly scheduled municipal
election. In the event that any such referendum is not approved, the municipal
corporation shall nevertheless be required to provide access to a public utility
for the use and occupancy of the streets of the city for the purpose of
rendering utility services. Nothing in this paragraph shall be construed to
impair any franchise agreement or contract in effect on the effective date of
this Act; provided, however, that if a referendum conducted pursuant to this
paragraph is not approved which results in a potential contract impairment issue
relating to a franchise agreement or contract, the municipality shall be
required to enter into good faith negotiations to revise the terms of such
franchise agreement or contract to attempt to eliminate the impairment issue.
In the event that renegotiations are unsuccessful, the municipality shall be
required to rebate any franchise taxes paid after the date of the referendum
back to the customers.
(B)
The amount of
fees
taxes
collected from
municipal
customers of public utilities or companies as a result of franchise agreements
or contracts authorized by this paragraph shall be itemized on bills or invoices
transmitted to
such
municipal customers for utility
services,
shall include a statement that the charge is a tax, and shall clearly indicate
the municipality which will receive the
tax.
The
requirements of this subparagraph shall not apply to fees that are included in
the system-wide charges or
No franchise
tax or portion thereof shall be included in
the base rates of a public utility or
company subject to a franchise agreement or contract.
(C)
A municipality shall neither grant a franchise nor collect a franchise tax for
the operation of public utilities within the unincorporated area of a
county."
SECTION
3.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.