HSB 32 (LSB 1784YC (2) 88)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON CARLSON)

A BILL FOR

An Act relating to the imposition of certain fees on public utilities for the use of public rights-of-way.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 480A.2, subsection 2, Code 2019, is amended to read as follows:
   2.  “Management costs” means the reasonable, direct, and fully documented costs a local government actually incurs in managing to manage public rights-of-way.
    Sec. 2.  Section 480A.3, Code 2019, is amended to read as follows:
   480A.3  Fees.
   1.  A local government shall not recover any fee from a public utility for the use of its available right-of-way, other than a permit fee for its management costs attributable to the public utility’s requested use of the local government’s right-of-way. A local government may recover from a public utility only those management costs caused by the public utility’s activity in the public right-of-way. A fee or other obligation under this section shall be imposed on a competitively neutral basis. When a local government’s management costs cannot be attributed to only one entity, those costs shall be allocated among all users of the public rights-of-way, including the local government itself. The allocation shall reflect proportionately the costs incurred by the local government as a result of the various types of uses of the public rights-of-way.
   2.  This section does not prohibit:
   a.  Prohibit the collection of a franchise fee as permitted in section 480A.6.
   b.  Prohibit voluntary agreements between a public utility and local government to share services for the purpose of reducing costs and preserving public rights-of-way for future public safety purposes.
    Sec. 3.  Section 480A.4, Code 2019, is amended to read as follows:
   480A.4  In-kind services.
   A local government, in lieu of a fee imposed under this chapter, shall not require in-kind services by a public utility right-of-way user, or require in-kind services as a condition of the use of the local government’s public right-of-way, unless pursuant to a voluntary agreement between a public utility and local government to share services for the purpose of reducing costs and preserving public rights-of-way for future public safety purposes.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to certain fees imposed on public utilities for the use of public rights-of-way. Code chapter 480A allows local governments to impose certain fees on public utilities for operating public utility facilities in public rights-of-way. A local government may only impose a fee for management costs, as defined, that are caused by the public utility’s activity in the right-of-way, and cannot require in-kind services in lieu of a fee. 
   The bill modifies the definition of “management costs” in Code chapter 480A to provide that such costs must be direct and fully documented. The bill specifies that a local government may only recover a permit fee for management costs attributable to the public utility’s requested use of an available public right-of-way, instead of management costs caused by the public utility’s activity in the right-of-way. The bill provides that Code section 480A.3, relating to permissible fees imposed on public utilities, shall not prohibit voluntary agreements between a public utility and local government to share services for the purpose of reducing costs and preserving public rights-of-way for future public safety purposes, and allows in-kind services in lieu of a fee if pursuant to such a voluntary agreement.