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HomePublic Utilities CodeDiv. 3Ch. 2Art. 2§ 6231 Franchise Application Requirements

§ 6231 Franchise Application Requirements

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 6231 Franchise Application Requirements

Key Takeaways

  • •If you want to run a utility service (like electricity, gas, or water) in a city, you must ask the city for permission by filling out an application.
  • •You have to pay the city every year: usually 2% of the money you make from the service, but at least 1% if you're selling things like water or gas in the city.
  • •If you're applying for an electric service, you must pay at least 0.5% of the money you make from selling electricity in the city.
  • •For special pipelines (like for oil or gas used by factories), you can either pay a percentage of what you make or a fixed fee based on the size and length of the pipe.

Example

A company wants to sell electricity in a town.

The company must ask the town for permission and agree to pay at least 0.5% of the money it makes from selling electricity in that town every year.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 6231 Franchise Application Requirements

An applicant for a franchise shall file with the legislative body of the municipality in which the franchise is desired an application stating all of the following: (a) The name of the applicant. (b) The purpose and term, whether definite or indeterminate, for which the franchise is desired. (c) That the applicant if granted the franchise will pay to the municipality during the life of the franchise 2 percent of the applicant’s gross annual receipts arising from the use, operation, or possession of the franchise, except that this payment shall be not less than 1 percent of the applicant’s gross annual receipts derived from the sale within the limits of the municipality of the utility service for which the franchise is awarded. If the application is for a franchise complementary to a franchise derived under Section 19 of Article XI of the California Constitution as that section existed prior to its amendment on October 10, 1911, then the applicant shall pay annually, if the application is for an electric franchise, 2 percent of the applicant’s gross annual receipts arising from the use, operation, or possession of the franchise, except that this payment shall be not less than one-half of 1 percent of the applicant’s gross annual receipts from the sale of electricity within the limits of the municipality under both the electric franchises; or, if the application is for a gas, oil pipeline, or water franchise, 2 percent of the applicant’s gross annual receipts arising from the use, operation, or possession of the franchise, except that this payment shall be not less than 1 percent of the gross annual receipts from the sale of gas or water within the limits of the municipality under both the gas franchises or both the water franchises. Notwithstanding any other provision of this section, if the application is for a franchise for a nonpublic utility pipeline for industrial gas or oil or products thereof, the application shall state that the applicant, if granted the franchise, will pay to the municipality during the life of the franchise either a specified percentage agreed to by the applicant and the municipality of the gross annual receipts of the applicant arising from the use, operation, or possession of the franchise or an annual franchise fee in an amount agreed to by the applicant and the municipality or an annual franchise fee computed by multiplying the sum of one-half cent ($0.005) times the nominal internal diameter of the pipe, expressed in inches, times the number of lineal feet of the pipe within the public streets, ways, alleys, or other public places within the municipality. (Amended by Stats. 1984, Ch. 197, Sec. 3.)

Last verified: January 23, 2026

Key Terms

applicationmunicipalitypossessiontrialoperationutilitycalifornia constitutionamendment

Related Statutes

  • § 3255 Natural Gas Property Rights
  • § 6231.5 Pipeline Franchise Application Fees
  • § 6235 Franchise Acceptance And Annexation
  • § 11582 Utility District Formation Boundaries
  • § 6202 Municipal Utility Franchise Authority

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 6231.
View Official Source