Louisiana Senate Bill SB269

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12

Caption

Prohibits a police jury, municipality, or other local governing authority from charging any franchise fee or similar charge to an electric, gas, or water public utility which is in excess of 2% of annual gross receipts. (gov sig) (OR DECREASE LF RV See Note)

Impact

The implications of this bill are significant for municipal and parish governments, as it restricts their revenue-generating capabilities from public utilities. The cap on franchise fees may lead to a decrease in funding for local governments, which often depend on these charges to maintain public services and infrastructure. Furthermore, the bill responds to concerns from utility providers about financial constraints imposed by varying fees set by different local entities, thereby promoting a more uniform regulatory framework across jurisdictions.

Summary

Senate Bill 269 aims to place a cap on franchise fees imposed by local governing authorities on public utilities, specifically electric, gas, and water services. The bill stipulates that these entities cannot charge utility companies more than 2% of annual gross receipts derived from their customers. This legislation is intended to ensure that public utilities are not overburdened by excessive local fees, which can impact their financial viability and service delivery to residents.

Sentiment

General sentiment towards SB 269 is mixed. Proponents see it as a necessary measure to support public utilities and protect consumers from costs that could arise from local governments overcharging. Conversely, some local officials argue that the bill undermines their authority and ability to raise funds crucial for community services. As such, the debate has highlighted the tension between state-level regulation and local governance, with arguments on both sides regarding the importance of balancing utility support with local autonomy.

Contention

Key points of contention in the discussions around SB 269 include the potential financial impacts on local governments and their ability to fund various services and projects. Opponents of the bill argue that limiting franchise fees would restrict local governments from addressing community needs through adequate funding. Advocates, however, counter that the legislation will ultimately benefit consumers and ensure the sustainability of public utilities in the long run, by providing them with clarity and stability in operating costs.