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Senate File 392

Partial Bill History

Bill Text

PAG LIN
  1  1                                           SENATE FILE 392
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO TELECOMMUNICATIONS SYSTEMS OR SERVICES WHICH MAY
  1  5    BE PROVIDED BY A CITY UTILITY, ESTABLISHING CERTAIN
  1  6    REQUIREMENTS ON SUCH CITY, AND INCLUDING EFFECTIVE DATE
  1  7    AND RETROACTIVE APPLICABILITY PROVISIONS.
  1  8  
  1  9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 10  
  1 11    Section 1.  LEGISLATIVE INTENT.  It is the intent of the
  1 12 general assembly to specifically provide that cities of Iowa
  1 13 which create city utilities in the manner provided by law are
  1 14 authorized to provide on a competitively neutral basis with
  1 15 existing local exchange carriers separate or combined cable
  1 16 communications or television, telephone, telecommunications
  1 17 systems or services, including wireless systems or services,
  1 18 through the ownership of systems or offering of the services.
  1 19    Sec. 2.  Section 362.2, subsection 6, Code 1999, is amended
  1 20 to read as follows:
  1 21    6.  "City utility" means all or part of a waterworks,
  1 22 gasworks, sanitary sewage system, storm water drainage system,
  1 23 electric light and power plant and system, heating plant,
  1 24 cable communication or television system, telephone or
  1 25 telecommunications systems or services offered separately or
  1 26 combined with any system or service specified in this
  1 27 subsection or authorized by other law, any of which are owned
  1 28 by a city, including all land, easements, rights of way,
  1 29 fixtures, equipment, accessories, improvements, appurtenances,
  1 30 and other property necessary or useful for the operation of
  1 31 the utility.
  1 32    Sec. 3.  NEW SECTION.  388.9  COMPETITIVE INFORMATION.
  1 33    1.  Notwithstanding section 21.5, subsection 1, the
  1 34 governing body of a city utility or combined utility system,
  1 35 or a city enterprise or combined city enterprise as defined in
  2  1 section 384.80, by a vote of two-thirds of the members of the
  2  2 body or all of the members present at the meeting, may hold a
  2  3 closed session to discuss marketing and pricing strategies or
  2  4 proprietary information if its competitive position would be
  2  5 harmed by public disclosure not required of potential or
  2  6 actual competitors, and if no public purpose would be served
  2  7 by such disclosure.  The minutes and a tape recording of a
  2  8 session closed under this subsection shall be available for
  2  9 public examination at that point in time when the public
  2 10 disclosure would no longer harm the utility's competitive
  2 11 position.
  2 12    2.  Notwithstanding section 22.2, subsection 1, public
  2 13 records of a city utility or combined utility system, or a
  2 14 city enterprise or combined city enterprise as defined in
  2 15 section 384.80, which shall not be examined or copied as of
  2 16 right, include proprietary information, records of customer
  2 17 names and accounts, records associated with marketing or
  2 18 pricing strategies, preliminary working papers, spreadsheet
  2 19 scenarios, and cost data, if the competitive position of the
  2 20 city utility, combined utility system, city enterprise, or
  2 21 combined city enterprise would be harmed by public disclosure
  2 22 not required of a potential or actual competitor, and if no
  2 23 public purpose would be served by such disclosure.  A public
  2 24 record not subject to examination or copying under this
  2 25 subsection shall be available for public examination and
  2 26 copying at that point in time when public disclosure would no
  2 27 longer harm the competitive position of the city utility,
  2 28 combined utility system, city enterprise, or combined city
  2 29 enterprise.
  2 30    Sec. 4.  NEW SECTION.  388.10  MUNICIPAL UTILITY PROVIDING
  2 31 LOCAL EXCHANGE SERVICES.
  2 32    1.  a.  A city that owns or operates a municipal utility
  2 33 providing local exchange services pursuant to chapter 476 or
  2 34 the municipal utility shall not do, directly or indirectly,
  2 35 any of the following:
  3  1    (1)  Use general fund moneys for the ongoing support or
  3  2 subsidy of a telecommunications system.
  3  3    (2)  Provide any city facilities, equipment, or services to
  3  4 provide telecommunications systems or services at a cost for
  3  5 such facilities, equipment, or services which is less than the
  3  6 reasonable cost of providing such city facilities, equipment,
  3  7 or services.
  3  8    (3)  Provide any other city service, other than a
  3  9 communications service, to a telecommunications customer at a
  3 10 cost which is less than would be paid by the same person
  3 11 receiving such other city service if the person was not a
  3 12 telecommunications customer.
  3 13    (4)  Use funds or revenue generated from electric, gas,
  3 14 water, sewage, or garbage services provided by the city for
  3 15 the ongoing support of that portion of a system or service
  3 16 used to provide local exchange services.
  3 17    b.  For purposes of this section, "telecommunications
  3 18 system" means only that portion of a system or facilities
  3 19 which is used to provide local exchange services.
  3 20    2.  A city that owns or operates a municipal utility
  3 21 providing local exchange services pursuant to chapter 476 or
  3 22 the municipal utility shall do the following:
  3 23    a.  Prepare and maintain records which record the full cost
  3 24 accounting of providing local exchange service.  The records
  3 25 shall show the amount and source of capital for initial
  3 26 construction or acquisition of the local exchange system or
  3 27 facilities.  This section shall not prohibit a municipal
  3 28 utility from utilizing capital from any lawful source,
  3 29 provided that the reasonable cost of such capital is accounted
  3 30 for as a cost of providing the service.
  3 31    b.  Adopt rates for the provision of local exchange
  3 32 services that reflect the actual cost of providing the local
  3 33 exchange service.  However, this paragraph shall not prohibit
  3 34 the municipal utility from establishing market-based prices
  3 35 for competitive local exchange services.
  4  1    c.  Be subject to all requirements of the city which would
  4  2 apply to any other provider of local exchange services in the
  4  3 same manner as such requirements would apply to such other
  4  4 provider.
  4  5    3.  This section shall not prohibit the marketing or
  4  6 bundling of other products or services, in addition to local
  4  7 exchange services.  However, a city shall include on a billing
  4  8 statement sent to a person receiving services from the city, a
  4  9 separate charge for each service provided to the person.  This
  4 10 subsection does not prohibit the city from also including on
  4 11 the billing statement a total amount to be paid by the person.
  4 12    Sec. 5.  Section 427.1, subsection 2, Code 1999, is amended
  4 13 to read as follows:
  4 14    2.  MUNICIPAL AND MILITARY PROPERTY.  The property of a
  4 15 county, township, city, school corporation, levee district,
  4 16 drainage district or military company of the state of Iowa,
  4 17 when devoted to public use and not held for pecuniary profit,
  4 18 except property of a municipally owned electric utility held
  4 19 under joint ownership and property of an electric power
  4 20 facility financed under chapter 28F which shall be subject to
  4 21 taxation under chapter 437A and facilities of a municipal
  4 22 utility that are used for the provision of local exchange
  4 23 services pursuant to chapter 476, but only to the extent such
  4 24 facilities are used to provide such services, which shall be
  4 25 subject to taxation under chapter 433, except that section
  4 26 433.11 shall not apply.  The exemption for property owned by a
  4 27 city or county also applies to property which is operated by a
  4 28 city or county as a library, art gallery or museum,
  4 29 conservatory, botanical garden or display, observatory or
  4 30 science museum, or as a location for holding athletic
  4 31 contests, sports or entertainment events, expositions,
  4 32 meetings or conventions, or leased from the city or county for
  4 33 any such purposes.  Food and beverages may be served at the
  4 34 events or locations without affecting the exemptions, provided
  4 35 the city has approved the serving of food and beverages on the
  5  1 property if the property is owned by the city or the county
  5  2 has approved the serving of food and beverages on the property
  5  3 if the property is owned by the county.
  5  4    Sec. 6.  Section 433.12, Code 1999, is amended to read as
  5  5 follows:
  5  6    433.12  "COMPANY" DEFINED.
  5  7    "Company" as used in this chapter means any person,
  5  8 copartnership, association, corporation, or syndicate that
  5  9 owns or operates, or is engaged in operating, any telegraph or
  5 10 telephone line, whether formed or organized under the laws of
  5 11 this state or elsewhere.  "Company" includes a city that owns
  5 12 or operates a municipal utility providing local exchange
  5 13 services pursuant to chapter 476.
  5 14    Sec. 7.  Section 476.1B, subsection 3, Code 1999, is
  5 15 amended to read as follows:
  5 16    3.  Unless otherwise specifically provided by statute, a
  5 17 municipally owned utility providing local exchange services is
  5 18 not subject to regulation by the board under this chapter
  5 19 except for regulatory action pertaining to the enforcement of
  5 20 sections 476.11, 476.29, 476.95, 476.96, 476.100, 476.101, and
  5 21 476.102.
  5 22    Sec. 8.  EFFECTIVE DATE AND RETROACTIVE APPLICABILITY.
  5 23 This Act, being deemed of immediate importance, takes effect
  5 24 upon enactment, and applies retroactively to July 1, 1993.
  5 25 City elections held after June 30, 1993, for the purpose of
  5 26 voting on the question of offering communications or
  5 27 telecommunications systems or services offered separately or
  5 28 combined with any system or service specified under section
  5 29 362.2, subsection 6, are deemed to have been held in
  5 30 accordance with this Act and are valid for the purpose of
  5 31 offering such systems or services.  Actions of the utilities
  5 32 board taken in reliance on the results of the city elections
  5 33 held as specified in this section are deemed to have been
  5 34 taken in accordance with this Act and are valid.  Financing
  5 35 measures taken by a city prior to January 1, 1999, are not a
  6  1 violation of this Act.
  6  2  
  6  3 
  6  4 
  6  5                                                             
  6  6                               MARY E. KRAMER
  6  7                               President of the Senate
  6  8 
  6  9 
  6 10                                                             
  6 11                               RON J. CORBETT
  6 12                               Speaker of the House
  6 13 
  6 14    I hereby certify that this bill originated in the Senate and
  6 15 is known as Senate File 392, Seventy-eighth General Assembly.
  6 16 
  6 17 
  6 18                                                             
  6 19                               MICHAEL E. MARSHALL
  6 20                               Secretary of the Senate
  6 21 Approved                , 1999
  6 22 
  6 23 
  6 24                               
  6 25 THOMAS J. VILSACK
  6 26 Governor
     

Text: SF00391                           Text: SF00393
Text: SF00300 - SF00399                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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