Senate approves amendment letting private buyers inherit public utility franchise rights

Senators adopted an amendment and then passed Senate Bill 717 on third and final consideration, a bill that transfers franchise rights when a public utility is sold to a private entity.

Senator Briggs, explaining Amendment No. 1 from the State and Local Government Committee, said the amendment clarifies that when a public utility is sold to a private buyer, the private entity would retain the same franchise rights the public utility previously held. "Very simply, what this bill does is transfers the franchise rights," Briggs said, describing it as a straightforward change that preserves existing rights after a sale.

Senator Kowal asked whether the measure would affect Memphis Light, Gas and Water (MLGW) and Briggs confirmed the amendment applies only to private investor‑owned utilities, not to public utilities such as MLGW in Shelby County.

After adoption of the amendment by voice vote, the bill as amended was passed on final consideration by a recorded vote of 32 ayes and no nays. The motion to reconsider was tabled without objection. The bill will proceed through enrolment and the normal legislative transmission process.