09 LC 18
7789
House
Bill 48
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 revise and change provisions regarding franchise fees; to
provide that such fees shall be deemed to be taxes; to provide for conditions,
requirements, and limitations regarding the imposition and collection of a
franchise tax; 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 by revising 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.
Between July 1, 2009, and September 30, 2009, a municipality that is assessing a
franchise tax as of June 30, 2009, shall conduct at least two public hearings
held at least two weeks apart. Notice of the time, place, and date of each
hearing shall be published in a newspaper of general circulation within the
jurisdiction of the municipality once a week for the two weeks preceding the
week in which each hearing is to be held. Further, prior to imposing a new
franchise tax or increasing a franchise tax on and after July 1, 2009, a
municipality shall conduct at least two public hearings in accordance with the
provisions of this paragraph.
(B)(i)
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
(ii)
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.
(iii)
Any franchise tax authorized pursuant to this paragraph shall not be levied on
or computed based on any revenues from customers of an electric light or power
company if such customers are engaged in the manufacture or processing of
tangible personal property primarily for resale, nor shall such customers be
charged a franchise tax or portion thereof.
(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.