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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
© 1999 Cornell College and League of Women Voters of Iowa
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