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Senate File 2368

Partial Bill History

Bill Text

PAG LIN
  1  1                                          SENATE FILE 2368
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO THE MANAGEMENT OF PUBLIC RIGHTS-OF-WAY BY 
  1  5    LOCAL GOVERNMENT UNITS, ELIMINATING THE POWER OF CITIES
  1  6    TO GRANT FRANCHISES TO ERECT, MAINTAIN, AND OPERATE 
  1  7    PLANTS AND SYSTEMS FOR TELECOMMUNICATIONS SERVICES WITHIN
  1  8    THE CITY, AND PROVIDING AN EFFECTIVE DATE.
  1  9 
  1 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 
  1 11 
  1 12    Section 1.  Section 364.2, subsection 4, paragraph a, Code
  1 13 1997, is amended to read as follows:
  1 14    a.  A city may grant to any person a franchise to erect,
  1 15 maintain, and operate plants and systems for electric light
  1 16 and power, heating, telephone, telegraph, cable television,
  1 17 district telegraph and alarm, motor bus, trolley bus, street
  1 18 railway or other public transit, waterworks, or gasworks,
  1 19 within the city for a term of not more than twenty-five years.
  1 20 The franchise may be granted, amended, extended, or renewed
  1 21 only by an ordinance, but no exclusive franchise shall be
  1 22 granted, amended, extended, or renewed.
  1 23    Sec. 2.  Section 476.6, Code 1997, is amended by adding the
  1 24 following new subsection:
  1 25    NEW SUBSECTION.  22.  A public utility which is assessed
  1 26 management costs by a local government pursuant to chapter
  1 27 480A is entitled to recover those costs.  If the public
  1 28 utility serves customers within the boundaries of the local
  1 29 government imposing the management costs, such costs shall be
  1 30 recovered exclusively from those customers.
  1 31    Sec. 3.  NEW SECTION.  480A.1  PURPOSE.
  1 32    The general assembly finds that it is in the public
  1 33 interest to define the right of local governments to charge
  1 34 public utilities for the location and operation of public
  1 35 utility facilities in local government rights-of-way.
  2  1    Sec. 4.  NEW SECTION.  480A.2  DEFINITIONS.
  2  2    As used in this chapter, unless the context otherwise
  2  3 requires:
  2  4    1.  "Local government" means a county, city, township,
  2  5 school district, or any special-purpose district or authority.
  2  6    2.  "Management costs" means the reasonable costs a local
  2  7 government actually incurs in managing public rights-of-way.
  2  8    3.  "Public right-of-way" means the area on, below, or
  2  9 above a public roadway, highway, street, bridge, cartway,
  2 10 bicycle lane, or public sidewalk in which the local government
  2 11 has an interest, including other dedicated rights-of-way for
  2 12 travel purposes and utility easements.  A public right-of-way
  2 13 does not include the airwaves above a public right-of-way with
  2 14 regard to cellular or other nonwire telecommunications or
  2 15 broadcasts service or utility poles owned by a local
  2 16 government or a municipal utility.
  2 17    4.  "Public utility" means a person owning or operating a
  2 18 facility used for furnishing natural gas by piped distribution
  2 19 system, electricity, communications services not including
  2 20 cable television systems, or water by piped distribution
  2 21 system, to the public for compensation.
  2 22    Sec. 5.  NEW SECTION.  480A.3  FEES.
  2 23    A local government shall not recover any fee from a public
  2 24 utility for the use of its right-of-way, other than a fee for
  2 25 its management costs.  A local government may recover from a
  2 26 public utility only those management costs caused by the
  2 27 public utility's activity in the public right-of-way.  A fee
  2 28 or other obligation under this section shall be imposed on a
  2 29 competitively neutral basis.  When a local government's
  2 30 management costs cannot be attributed to only one entity,
  2 31 those costs shall be allocated among all users of the public
  2 32 rights-of-way, including the local government itself.  The
  2 33 allocation shall reflect proportionately the costs incurred by
  2 34 the local government as a result of the various types of uses
  2 35 of the public rights-of-way.
  3  1    This section does not prohibit the collection of a
  3  2 franchise fee as permitted in section 480A.6.
  3  3    Sec. 6.  NEW SECTION.  480A.4  IN-KIND SERVICES.
  3  4    A local government, in lieu of a fee imposed under this
  3  5 chapter, shall not require in-kind services by a public
  3  6 utility right-of-way user, or require in-kind services as a
  3  7 condition of the use of the local government's public right-
  3  8 of-way.
  3  9    Sec. 7.  NEW SECTION.  480A.5  ARBITRATION.
  3 10    1.  A public utility that is denied registration, denied a
  3 11 right-of-way permit, that has its right-of-way permit revoked,
  3 12 or that believes that the fees imposed on such user by the
  3 13 local government do not conform to the requirements of this
  3 14 chapter may request in writing that such denial, revocation,
  3 15 or fee imposition be reviewed by the governing body of the
  3 16 local government.  The governing body of the local government
  3 17 shall act within sixty days on a timely written request.  A
  3 18 decision by the governing body affirming the denial,
  3 19 revocation, or fee imposition must be in writing and supported
  3 20 by written findings establishing the reasonableness of the
  3 21 decision.
  3 22    2.  Upon affirmation by the governing body of the denial,
  3 23 revocation, or fee imposition, the public utility may do
  3 24 either of the following:
  3 25    a.  With the consent of the governing body, have the matter
  3 26 finally resolved by binding arbitration.  Binding arbitration
  3 27 must be before an arbitrator agreed to by both the local
  3 28 government and the public utility.  If the parties are unable
  3 29 to agree on an arbitrator, the matter shall be resolved by a
  3 30 three-person arbitration panel made up of one arbitrator
  3 31 selected by the local government, one arbitrator selected by
  3 32 the public utility, and one arbitrator selected by the other
  3 33 two arbitrators.  The cost and expense of a single arbitrator
  3 34 shall be borne equally by the local government and the public
  3 35 utility.  If a three-person arbitration panel is selected,
  4  1 each party shall bear the expense of its own arbitrator and
  4  2 the parties shall jointly and equally bear the cost and
  4  3 expense of the third arbitrator, and of the arbitration.  Each
  4  4 party to the arbitration shall pay its own costs,
  4  5 disbursements, and attorney fees.
  4  6    b.  Bring an action in district court to review a decision
  4  7 of the governing body made under this section.
  4  8    Sec. 8.  NEW SECTION.  480A.6  FRANCHISE ORDINANCE NOT
  4  9 SUPERSEDED.
  4 10    This chapter does not modify or supersede the rights and
  4 11 obligations of a local government and the public utility
  4 12 established by the terms of any existing or future franchise
  4 13 granted, approved, and accepted pursuant to section 364.2,
  4 14 subsection 4.  A city which collects a city franchise fee from
  4 15 an entity pursuant to section 364.2, subsection 4, under an
  4 16 existing or future franchise, shall not also collect a fee
  4 17 from that entity under section 480A.3.
  4 18    Sec. 9.  EFFECTIVE DATE.  This Act applies retroactively to
  4 19 January 1, 1998, and supersedes the provisions of any
  4 20 ordinances contrary to this Act in effect on or after that
  4 21 date.  
  4 22 
  4 23 
  4 24                                                             
  4 25                               MARY E. KRAMER
  4 26                               President of the Senate
  4 27 
  4 28 
  4 29                                                             
  4 30                               RON J. CORBETT
  4 31                               Speaker of the House
  4 32 
  4 33    I hereby certify that this bill originated in the Senate and
  4 34 is known as Senate File 2368, Seventy-seventh General Assembly.
  4 35 
  5  1 
  5  2                                                             
  5  3                               MARY PAT GUNDERSON
  5  4                               Secretary of the Senate
  5  5 Approved                , 1998
  5  6 
  5  7 
  5  8                         
  5  9 TERRY E. BRANSTAD
  5 10 Governor
     

Text: SF02367                           Text: SF02369
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