Section 6231 Of Article 2. Manner Of Granting From California Public Utilities Code >> Division 3. >> Chapter 2. >> Article 2.
6231
. 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.