(1) Except as authorized in Subsection (2), Section 59-12-203, or Section 10-1-304, a municipality may not:

1. (a) impose on, charge, or collect a franchise tax or contractual a franchise fee from an energy supplier; or
2. (b) collect a franchise tax or contractual franchise fee pursuant to a franchise agreement in effect on July 1, 1997.

(3)

1. (a) Subject to the requirements of Subsection (3)(b), a franchise agreement as defined in Subsection 10-1-303(6) between a municipality and an energy supplier may contain a provision that:

   1. (i) requires the energy supplier by agreement to pay a contractual franchise fee that is otherwise prohibited under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act; and

   2. (ii) imposes the contractual franchise fee on or after the day on which Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act is:

      1. (A) repealed, invalidated, or the maximum allowable rate provided in Section 10-1-304 is reduced; and
      2. (B) is not superseded by a law imposing a substantially equivalent tax.
2. (b) A municipality may not charge a contractual franchise fee under the provisions permitted by Subsection (3)(a) unless the municipality charges an equal contractual franchise fee or a tax on all energy suppliers.