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words in boldface type and underscored are additions.
Regular Session, 2012
SENATE BILL NO. 273
BY SENATOR PEACOCK
TAX/LOCAL. Authorizes the Louisiana Public Service Commission to require a public
utility to include a separate line item for franchise fees collected from the utility's customers.
(gov sig)
AN ACT1
To amend and reenact R.S.33:4401 and to enact R.S. 33:4361(C) and R.S. 45:853, relative2
to franchise fees and similar charges of political subdivisions on certain public3
utilities; to provide for proper notice and explanation of such fees on billing4
statements sent to ratepayers within the political subdivision; and to provide for5
related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 33:4401 is hereby amended and reenacted and R.S. 33:4361(C) is8
hereby enacted to read as follows:9
§4361. Police jury may grant franchise for use of streets, roads and alleys outside10
municipalities 11
* * *12
C. Notwithstanding any law, rule, regulation, or order to the contrary,13
on or after January 1, 2013, the Louisiana Public Service Commission may14
require that whenever a parish governing authority imposes a franchise fee15
upon a public utility which the utility collects or recovers from the utility's16
consumers, the utility's monthly billing statement shall specifically and clearly17 SB NO. 273
SLS 12RS-529 ENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
include a separate line item for the applicable franchise fee, with the name of1
the parish imposing the fee, the total amount or rate of the franchise fee, and2
the total amount of the billing attributable to the fee.3
* * *4
§4401. Granting franchise to use streets for telephone, telegraph, electric light, water5
and gas system 6
A. The governing authorities of all municipalities may grant a franchise to7
any person to use and occupy the streets, alleys, and public places therein, and to8
obstruct the same or any part thereof, by constructing, maintaining, and operating (1)9
poles, wires, and appurtenances for telephone, telegraph, and electric transmission10
and distribution systems and (2) pipelines, mains for a water or gas transportation11
and distribution system. These franchises shall not be exclusive, nor be for a longer12
period than sixty years and shall be subject to any terms, conditions and stipulations13
prescribed by the governing authorities of the municipalities. This section shall not14
apply to municipalities which are required under the provisions of their charter to15
hold referendum elections to grant or lease franchises.16
B. Notwithstanding any law, rule, regulation, or order to the contrary,17
on or after January 1, 2013, the Louisiana Public Service Commission may18
require that whenever a municipality imposes a franchise fee upon a public19
utility which the utility collects or recovers from the utility's consumers, the20
utility's monthly billing statement shall specifically and clearly include a21
separate line item for the applicable franchise fee, with the name of the22
municipality imposing the fee, the total amount or rate of the franchise fee, and23
the total amount of the billing attributable to the fee.24
Section 2. R.S. 45:853 is hereby enacted to read as follows:25
§853. Proper notice and explanation of franchise fees26
Notwithstanding any law, rule, regulation, or order to the contrary, on27
or after January 1, 2013, the Louisiana Public Service Commission may require28
that whenever a political subdivision imposes a franchise fee upon a public29 SB NO. 273
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
utility which the utility collects or recovers from the utility's consumers, the1
utility's monthly billing statement shall specifically and clearly include a2
separate line item for the applicable franchise fee, with the name of the political3
subdivision imposing the fee, the total amount or rate of the franchise fee, and4
the total amount of the billing attributable to the fee.5
Section 3. The Louisiana Public Service is hereby urged and requested to study,6
including holding public hearings as deemed necessary, requiring public utilities to7
specifically and clearly include in the monthly billing statements issued to its consumers a8
separate line item for any applicable franchise fee, containing the name of the political9
subdivision imposing the fee, the total amount or rate of the franchise fee, and the total10
amount of the billing attributable to the fee. The commission shall report its findings to the11
legislature on or before February 1, 2013.12
Section 4. This Act shall become effective upon signature by the governor or, if not13
signed by the governor, upon expiration of the time for bills to become law without signature14
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If15
vetoed by the governor and subsequently approved by the legislature, this Act shall become16
effective on the day following such approval.17
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Peacock (SB 273)
Proposed law authorizes the Louisiana Public Service Commission, notwithstanding any
law, rule, regulation, or order to the contrary, on or after January 1, 2013, to require that,
whenever a parish governing authority imposes a franchise fee upon a public utility which
the utility collects or recovers from the utility's consumers, the utility's monthly billing
statement shall specifically and clearly include a separate line item for the applicable
franchise fee, with the name of the parish imposing the fee, the total amount or rate of the
franchise fee, and the total amount of the billing attributable to the fee.
Proposed law requests the Louisiana Public Service Commission to study requiring public
utilities to include such a line item, including holding public hearings as deemed necessary
and to report its findings to the legislature on or before February 1, 2013.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 33:4510(D)) SB NO. 273
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Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill
1. Completely changes the proposed law from one which prohibits any
payments of a franchise fee by an electric, gas, or water public utility to a
political subdivision in excess of 2% from being added to the utility's bill to
one which authorizes the PSC to require a line item on a customer's bill from
a public utility reflecting such fees as set forth above.