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House Journal: Monday, April 2, 2001

JOURNAL OF THE HOUSE

Eighty-fifth Calendar Day - Fifty-eighth Session Day

Hall of the House of Representatives
Des Moines, Iowa, Monday, April 2, 2001

The House met pursuant to adjournment at 10:07 a.m., Speaker
Siegrist in the chair.

Prayer was offered by the Honorable Ralph Klemme, state
representative from Plymouth County.

The Journal of Friday, March 30, 2001 was approved.

PLEDGE OF ALLEGIANCE

The Pledge of Allegiance was led by five Eagle Scouts from Troop
55 in Denison, including Chris Skoog, Justin Scherff, Jeremy Kippley,
Chris Nelson and Brad Brockman. They were accompanied by their
leaders, Mr. Eric Skoog and Mr. Jeff Nelson. They were the guests of
the Honorable Clarence Hoffman, state representative from Crawford
County. Following the Pledge of Allegiance Mary Jane Buzbee from
Denison and a student at Simpson College, sang God Bless America.

LEAVE OF ABSENCE

Leave of absence was granted as follows:

Drake of Pottawattamie, until his arrival, on request of Carroll of Poweshiek; Gipp
of Winneshiek on request of Barry of Harrison; D. Taylor of Linn and Petersen of Polk
on request of Myers of Johnson.

HOUSE FILE 435 WITHDRAWN

Metcalf of Polk asked and received unanimous consent to
withdraw House File 435 from further consideration by the House.

SPECIAL PRESENTATION

Houser of Pottawattamie introduced to the House Francis Lajba,
President and CEO of SCOLA (Satellite Communications For
Learning); Wayne Bryant, Retired Pottawattamie County Supervisor

and Chen Lixia, Associate Professor of the Education Ministry of the
Peoples Republic of China who addressed the House briefly.

The House rose and expressed its welcome.

CONSIDERATION OF BILL
Regular Calendar

House File 670, a bill for an act relating to nontraditional
practitioner preparation instruction programs, including the
licensure of individuals who are participating in or have successfully
completed a program, was taken up for consideration.

Lensing of Johnson offered amendment H-1382 filed by her as
follows:

H-1382

1 Amend House File 670 as follows:
2 1. By striking everything after the enacting
3 clause and inserting the following:
4 "Section 1. NONTRADITIONAL PRACTITIONER
5 PREPARATION INTERIM STUDY. The legislative council is
6 requested to authorize a nontraditional practitioner
7 preparation interim study committee to review
8 alternative or nontraditional practitioner preparation
9 of teachers and administrators used in other states
10 and to submit recommendations for changes or revisions
11 to the current statutory practitioner preparation
12 program requirements that address practitioner
13 shortage areas while maintaining high levels of
14 student achievement. The study committee shall submit
15 a report of its findings and recommendations to the
16 senate and house of representatives standing
17 committees on education on or before December 15,
18 2001."

The House stood at ease at 10:26 a.m., until the fall of the gavel.
(Amendment H-1382 pending)

The House resumed session and consideration of House File 670
and amendment H-1382 (pending) at 11:40 a.m., Hansen of
Pottawattamie in the chair.

Lensing of Johnson moved the adoption of amendment H-1382.


Roll call was requested by Richardson of Warren and Dotzler of
Black Hawk.

On the question "Shall amendment H-1382 be adopted?" (H.F. 670)

The ayes were, 43:
Atteberry Bell Bukta Chiodo
Cohoon Connors Dotzler Falck
Fallon Foege Ford Frevert
Garman Greimann Hatch Huser
Jochum Kreiman Kuhn Larkin
Lensing Mascher May Mertz
Murphy Myers O'Brien Osterhaus
Quirk Reynolds Richardson Scherrman
Schrader Seng Shoultz Smith
Stevens Taylor, T. Tremmel Warnstadt
Winckler Wise Witt

 


The nays were, 53:
Alons Arnold Barry Baudler
Boal Boddicker Boggess Bradley
Brauns Broers Brunkhorst Carroll
Cormack De Boef Dix Dolecheck
Drake Eddie Eichhorn Elgin
Grundberg Hahn Heaton Hoffman
Horbach Houser Hoversten Huseman
Jacobs Jenkins Johnson Kettering
Klemme Larson Manternach Metcalf
Millage Raecker Rants Rayhons
Rekow Roberts Shey Siegrist, Spkr.
Sievers Sukup Teig Tymeson
Tyrrell Van Engelenhoven Van Fossen Weidman
Hansen,
Presiding

 


Absent or not voting, 4:
Finch Gipp Petersen Taylor, D.

 


Amendment H-1382 lost.

Mascher of Johnson offered the following amendment H-1391 filed
by Petersen of Polk and moved its adoption:

H-1391

1 Amend House File 670 as follows:
2 1. Page 1, by striking lines 12 through 16 and
3 inserting the following: "the standards established
4 pursuant to section 256.7, subsection 25.
5 The nontraditional teacher preparation program
6 shall include forty-eight credit hours in coursework
7 provided by a traditionally approved practitioner
8 preparation program and a twelve-week student teaching
9 field experience that includes both observation and
10 participation in teaching activities in a variety of
11 school settings.
12 The nontraditional administrator preparation
13 program shall consist of, at a minimum, two".
14 2. Page 1, by striking lines 19 through 21, and
15 inserting the following: "license pursuant to section
16 272.2, subsection 13, paragraph "a". Prior to
17 licensure as an administrator, a student shall
18 successfully complete the".
19 3. Page 1, by striking line 23 and inserting the
20 following: "272.2, subsection 13.
21 The institution that delivers the".
22 4. Page 2, by striking lines 19 through 21 and
23 inserting the following: "training program, and a
24 nontraditional practitioner preparation instruction
25 program in accordance with section 256.16, subsection
26 3. An individual may be".
27 5. Page 2, line 25, by striking the word "twelve-
28 week".
29 6. Page 3, line 4, by striking the word "twelve-
30 week,".
31 7. Page 3, by striking lines 11 through 13 and
32 inserting the following: "completes one year of
33 teaching under a conditional license. a person issued
34 a".

A non-record roll call was requested.

The ayes were 35, nays 50.

Amendment H-1391 lost.

Stevens of Dickinson offered the following amendment H-1383
filed by him and moved its adoption:

H-1383

1 Amend House File 670 as follows:
2 1. Page 1, by striking lines 15 through 17 and
3 inserting the following: "education theory,

4 instructional methods, and classroom management. The
5 program for students who wish to be licensed as
6 conditional or provisional teachers shall, in addition
7 to the coursework requirements, include a twelve-week
8 student teaching field experience that includes both
9 observation and participation in teaching activities
10 in a variety of school settings. The program
11 coursework shall consist of two eighteen-semester-
12 hour, or the trimester or quarter equivalent, courses
13 of study, the first of which a student".
14 2. Page 1, line 22, by striking the word "twelve-
15 week" and inserting the following: "eighteen-
16 semester-hour, or the trimester or quarter
17 equivalent,".
18 3. Page 2, by striking lines 19 through 21 and
19 inserting the following: "training program, and a
20 nontraditional practitioner preparation instruction
21 program in accordance with section 256.16, subsection
22 3. An individual may be".
23 4. Page 2, line 25, by striking the word "twelve-
24 week".
25 5. Page 3, line 4, by striking the word "twelve-
26 week,".
27 6. Page 3, line 12, by striking the word "twelve-
28 week".

Amendment H-1383 lost.

Bukta of Clinton offered the following amendment H-1386 filed by
her and moved its adoption:

H-1386

1 Amend House File 670 as follows:
2 1. Page 1, by striking lines 15 and 16 and
3 inserting the following: "education theory,
4 instructional methods, and classroom management. The
5 program for students who wish to be licensed as
6 conditional or provisional teachers shall, in addition
7 to the coursework requirements, include a twelve-week
8 student teaching field experience that includes both
9 observation and participation in teaching activities
10 in a variety of school settings. The program
11 coursework shall consist of two".

Amendment H-1386 lost.

Mascher of Johnson offered the following amendment H-1389 filed
by her and moved its adoption:
H-1389

1 Amend House File 670 as follows:
2 1. Page 1, by striking lines 15 and 16 and
3 inserting the following: "education theory,
4 instructional methods, and classroom management. The
5 program for students who wish to be licensed as
6 conditional or provisional teachers shall, in addition
7 to the coursework requirements, include a twelve-week
8 student teaching field experience that includes both
9 observation and participation in teaching activities
10 in a variety of school settings. The program course
11 work shall consist of two".
12 2. Page 1, lines 19 and 20, by striking the words
13 "paragraphs "a" and "b"" and inserting the following:
14 "paragraph "a"".
15 3. Page 1, line 21, by striking the word
16 "provisional" and inserting the following:
17 "conditional".
18 4. Page 2, by striking lines 19 through 21 and
19 inserting the following: "training program, and a
20 nontraditional practitioner preparation instruction
21 program in accordance with section 256.16, subsection
22 3. An individual may be".
23 5. Page 2, line 25, by striking the word "twelve-
24 week".
25 6. Page 3, line 4, by striking the word "twelve-
26 week,".
27 7. Page 3, by striking lines 11 through 13, and
28 inserting the following: "completes one year of
29 teaching under a conditional license. a person issued
30 a".

Amendment H-1389 lost.

Winckler of Scott offered the following amendment H-1388 filed by
her and moved its adoption:

H-1388

1 Amend House File 670 as follows:
2 1. Page 1, line 16, by striking the word "and
3 practice teaching." and inserting the following:
4 "brain-based research, lesson design, learning styles
5 of students, best teaching practices, human relations,
6 technology integration, conflict resolution, and shall
7 meet the requirements of section 272.25, subsection 3.
8 The program for students who wish to be licensed as
9 conditional teachers shall, in addition to the
10 coursework requirements, include a twelve-week student
11 teaching field experience that includes both
12 observation and participation in teaching activities

13 in a variety of school settings."
14 2. Page 1, line 16, by inserting before the words
15 "shall consist" the following: "coursework".

Amendment H-1388 lost.

Grundberg of Polk offered amendment H-1384 filed by her as
follows:

H-1384

1 Amend House File 670 as follows:
2 1. Page 1, line 17, by striking the word "twelve-
3 week" and inserting the following: "twelve-semester-
4 hour, or the trimester or quarter equivalent,".
5 2. Page 1, line 22, by striking the word "twelve-
6 week" and inserting the following: "twelve-semester-
7 hour, or the trimester or quarter equivalent,".
8 3. Page 1, line 24, by inserting after the word
9 "subsection" the following: "shall include as a
10 component of its program supervision of a practitioner
11 during the practitioner year of employment under a
12 conditional license, and".
13 4. Page 2, by striking lines 18 through 21 and
14 inserting the following: "license if the individual
15 successfully completes a nontraditional practitioner
16 preparation instruction program in accordance with
17 section 256.16, subsection 3. An individual may be".
18 5. Page 2, line 25, by striking the word "twelve-
19 week".
20 6. Page 3, by striking lines 1 through 3 and
21 inserting the following: "in grades nine through
22 twelve if the individual".
23 7. Page 3, line 4, by striking the word "twelve-
24 week,".
25 8. Page 3, by striking lines 8 through 10 and
26 inserting the following: "through twelve if the
27 individual successfully".
28 9. Page 3, line 12, by striking the word "twelve-
29 week".
30 10. Page 3, by inserting after line 16 the
31 following:
32 "Sec. . DEPARTMENTAL STUDIES. The department
33 of education shall do the following:
34 1. Conduct a study of the transfer of credits
35 between practitioner preparation institutions, both
36 in-state and out-of-state. The study shall determine
37 whether the transfer of credits by practitioner
38 preparation institutions is fair and consistent, and
39 shall identify actions that may be taken to improve
40 the ability of a student to transfer credits earned in

41 one practitioner preparation institution to another.
42 2. Analyze and compare, in consultation with the
43 board of educational examiners, the requirements for
44 practitioner licensure or endorsement that require a
45 master's degree and the master's degree requirements
46 established by approved practitioner preparation
47 graduate programs.
48 The department shall submit its findings and
49 recommendations in a report to the senate and house of
50 representatives standing committees on education by

Page 2

1 December 1, 2001."
2 11. Title page, by striking lines 1 through 4 and
3 inserting the following: "An Act relating to
4 practitioner preparation programs by providing for the
5 establishment of nontraditional practitioner
6 preparation and licensure and by providing for a study
7 of practitioner preparation programs."

Foege of Linn offered the following amendment H-1405, to
amendment H-1384, filed by him from the floor and moved its
adoption:

H-1405

1 Amend the amendment, H-1384, to House File 670 as
2 follows:
3 1. Page 1, by inserting after line 4 the
4 following:
5 " . Page 1, by striking lines 19 and 20 and
6 inserting the following: "license pursuant to section
7 272.2, subsection 13, paragraph "b". Prior to
8 licensure as a conditional administrator or a"."
9 2. Page 1, by striking lines 18 and 19 and
10 inserting the following:
11 " . Page 2, by striking lines 24 through 26 and
12 inserting the following: "administrator under a
13 conditional license. However, an individual
14 licensed"."
15 3. By renumbering as necessary.

Amendment H-1405 lost.

On motion by Grundberg of Polk, amendment H-1384 was adopted,
placing amendment H-1387 out of order.


Stevens of Dickinson offered amendment H-1381 filed by him as
follows:

H-1381

1 Amend House File 670 as follows:
2 1. Page 3, by inserting after line 16 the
3 following:
4 "Sec. . Section 272.2, Code 2001, is amended by
5 adding the following new subsection:
6 NEW SUBSECTION. 16. a. Administer the Praxis II
7 examination for knowledge of pedagogies and for not
8 more than one content area in which the applicant
9 intends to teach, to each individual who is applying
10 for a conditional license in accordance with
11 subsection 13, paragraph "b". Fees for the
12 examination required under this subsection shall be
13 paid from moneys appropriated to the board for this
14 purpose. Costs incurred for additional content area
15 examinations shall be paid by the applicant.
16 b. This subsection is repealed effective June 30,
17 2003."

Stevens of Dickinson offered the following amendment H-1402, to
amendment H-1381, filed by him from the floor and moved its
adoption:

H-1402

1 Amend the amendment, H-1381, to House File 670, as
2 follows:
3 1. Page 1, by inserting after line 15 the
4 following:
5 " . If for any reason the state board
6 administers Praxis examinations to students
7 traditionally prepared in accordance with section
8 272.25, the results of the examinations administered
9 pursuant to this subsection shall be separately
10 maintained from the results of examinations
11 administered to traditionally prepared students."
12 2. By relettering as necessary.

Amendment H-1402 was adopted.

On motion by Stevens of Dickinson amendment H-1381, as
amended, was adopted.


Grundberg of Polk moved that the bill be read a last time now and
placed upon its passage which motion prevailed and the bill was read
a last time.

On the question "Shall the bill pass?" (H.F. 670)

The ayes were, 51:
Alons Barry Baudler Boal
Boddicker Boggess Bradley Brauns
Broers Brunkhorst Carroll Cormack
De Boef Dix Dolecheck Drake
Eddie Eichhorn Elgin Finch
Grundberg Hahn Heaton Hoffman
Horbach Houser Hoversten Huseman
Jacobs Jenkins Kettering Klemme
Larson Manternach Metcalf Millage
Raecker Rants Rayhons Rekow
Shey Siegrist, Spkr. Sievers Sukup
Teig Tymeson Tyrrell Van Engelenhoven
Van Fossen Weidman Hansen,
Presiding

 


The nays were, 46:
Arnold Atteberry Bell Bukta
Chiodo Cohoon Connors Dotzler
Falck Foege Ford Frevert
Garman Greimann Hatch Huser
Jochum Johnson Kreiman Kuhn
Larkin Lensing Mascher May
Mertz Murphy Myers O'Brien
Osterhaus Quirk Reynolds Richardson
Roberts Scherrman Schrader Seng
Shoultz Smith Stevens Taylor, D.
Taylor, T. Tremmel Warnstadt Winckler
Wise Witt

 


Absent or not voting, 3:
Fallon Gipp Petersen

 


The bill having received a constitutional majority was declared to
have passed the House and the title, as amended, was agreed to.

MESSAGES FROM THE SENATE

The following messages were received from the Senate:


Mr. Speaker: I am directed to inform your honorable body that the Senate has on
April 2, 2001, adopted the following resolution in which the concurrence of the House is
asked:

Senate Joint Resolution 3, a joint resolution authorizing the sixth judicial district
department of correctional services to extend a lease-purchase agreement and
providing an effective date.

Also: That the Senate has on April 2, 2001, passed the following bill in which the
concurrence of the House is asked:

Senate File 289, a bill for an act relating to open burn notifications and providing a
penalty.

MICHAEL E. MARSHALL, Secretary

ADOPTION OF HOUSE RESOLUTION 24

Sukup of Franklin called up for consideration House Resolution 24,
a resolution recognizing and congratulating Quakerdale on 150 years
of service, and moved its adoption.

The motion prevailed and the resolution was adopted.

Speaker Siegrist in the chair at 3:28 p.m.

On motion by Rants of Woodbury, the House was recessed at 3:29
p.m., until 5:00 p.m.

The House resumed session at 5:03 p.m., Speaker Siegrist in the
chair.

SENATE MESSAGE CONSIDERED

Senate File 374, by committee on state government, a bill for an
act relating to the qualifications and authorization of therapeutically
certified optometrists engaged in the practice of optometry.

Read first time and referred to committee on human resources.

QUORUM CALL

A non-record roll call was requested to determine that a quorum
was present. The vote revealed seventy members present, thirty
absent.

CONSIDERATION OF BILL
Regular Calendar

House File 577, a bill for an act relating to electric power
generation and transmission, by addressing the criteria for
construction of an electric generating facility; waivers; approval of
power purchase contracts; management of regulated emissions from
facilities fueled by coal; providing for the development of a state
electric energy policy; providing for joint agreements for acquisition of
ownership of a joint facility for electric power generation and
transmission, and for the planning, financing, operation, and
maintenance of the joint facility; providing for the bonding authority
of electric power agencies; and making certain other changes and
requirements related to electric generation and transmission, was
taken up for consideration.

The House stood at ease at 5:20 p.m., until the fall of the gavel.

The House resumed session and consideration of House File 577 at
6:25 p.m., Speaker pro tempore Sukup in the chair.

QUORUM CALL

A non-record roll call was requested to determine that a quorum
was present. The vote revealed seventy members present, thirty
absent.

LEAVE OF ABSENCE

Leave of absence was granted as follows:

Huser of Polk, until her arrival, on request of Myers of Johnson.

Schrader of Marion offered amendment H-1358 filed by him as
follows:

H-1358

1 Amend House File 577 as follows:
2 1. By striking everything after the enacting
3 clause, and inserting the following:
4 "Section 1. NEW SECTION. 476B.1 DEFINITIONS.
5 As used in this chapter, unless the context

6 otherwise requires:
7 1. "ADAD equipment" means automatic dialing-
8 announcing device equipment, which is a device or
9 system of devices used, either alone or in conjunction
10 with other equipment, for the purpose of automatically
11 selecting or dialing telephone numbers, for
12 disseminating prerecorded messages to the numbers
13 selected or dialed without the use of a live operator.
14 2. "Autodialer" means an automatic telephone
15 dialing system or equipment that has both the capacity
16 to store or produce telephone numbers to be called
17 using a random or sequential number generator, and to
18 dial such numbers.
19 3. "Board" means the utilities board created in
20 section 474.1.
21 4. "Caller identification" means the display, on
22 the call recipient's telephone or related equipment,
23 of the caller's telephone number or identity to the
24 recipient of the call.
25 5. "Consumer" means an actual or prospective
26 purchaser, lessee, or recipient of a consumer good or
27 service.
28 6. "Consumer good or service" means any real
29 property or any tangible or intangible personal
30 property that is normally used for personal, family,
31 or household purposes, including, without limitation,
32 any such property intended to be attached to or
33 installed in any real property without regard to
34 whether it is so attached or installed, as well as
35 cemetery lots and timeshare estates, and any service
36 related to such property.
37 7. "Conversation time" is the time when two-way
38 telecommunications is possible during a telephone
39 call.
40 8. "Doing business in this state" means a business
41 that conducts telephone solicitations from a location
42 in this state or from other states or nations to
43 consumers located in this state.
44 9. "Existing business relationship" means an
45 established pattern of activity between a consumer and
46 a merchant, involving an inquiry, application,
47 purchase, or transaction initiated by a consumer
48 regarding products or services offered by a merchant.
49 10. "Merchant" means a person who, directly or
50 indirectly, offers or makes available to a consumer

Page 2

1 any consumer good or service.
2 11. "Predictive dialing technology" means an
3 automated dialing system or computer software that
4 utilizes a formula or similar mechanism to initiate a

5 certain greater number of telephone calls than the
6 number of telephone solicitors available to speak to
7 prospective customers, with a goal of keeping the
8 available telephone solicitors continually speaking to
9 one prospective customer after another.
10 12. "Prepaid calling card" means an object
11 containing an access number and authorization code
12 that enables an end user to use prepaid calling
13 services.
14 13. "Prepaid calling card company" means any
15 person providing prepaid calling services to the
16 public using its own or resold telecommunications
17 network.
18 14. "Prepaid calling services" means any prepaid
19 telecommunications service that allows end users to
20 originate calls through an access number and
21 authorization code, whether manually or electronically
22 dialed.
23 15. "Telephone solicitation" means any voice
24 communication, wherever originated, transmitted over a
25 telephone for the purpose of encouraging action on the
26 part of the consumer, including but not limited to any
27 of the following actions:
28 a. The purchase or rental of property, goods, or
29 services.
30 b. Investment in property, goods, or services.
31 c. Soliciting a sale of a consumer good or
32 service.
33 d. Offering an extension of credit for a consumer
34 good or service.
35 e. Obtaining information that will or may be used
36 for the direct solicitation of a sale of a consumer
37 good or service or an offer of extension of credit for
38 such purpose.
39 f. Soliciting a donation for any group,
40 organization, or purpose.
41 16. "Telephone solicitor" means a person doing
42 business in this state, who makes or causes to be made
43 a telephone solicitation, including, but not limited
44 to, calls made by use of automatic dialing-announcing
45 device equipment, predictive dialing technology, or an
46 autodialer.
47 17. "Unsolicited telephone solicitation" means a
48 telephone solicitation other than a call made as
49 follows:
50 a. In response to an express request of the person

Page 3

1 called.
2 b. Primarily in connection with an existing debt
3 or contract, payment, or performance of which has not

4 been completed at the time of such call.
5 c. To a person with whom the telephone solicitor
6 has an existing business relationship.
7 d. To a residential subscriber if the telephone
8 solicitation is made on behalf of a not-for-profit
9 organization exempt from paying taxes under section
10 501(c) of the Internal Revenue Code, and if a bona
11 fide member of the exempt organization directly makes
12 such communication, and does not contract with a
13 telemarketing firm or other third party to make the
14 calls.
15 e. By a person licensed pursuant to chapter 543B
16 who calls an actual or prospective seller or lessor of
17 real property if the call is made in response to a
18 yard sign or other form of real estate sales
19 advertisement placed by the seller or lessor.
20 Sec. 2. NEW SECTION. 476B.2 RESTRICTIONS ON THE
21 USE OF CERTAIN TELEMARKETING EQUIPMENT.
22 1. A person shall not do any of the following:
23 a. Utilize any ADAD equipment, predictive dialing
24 technology, or autodialer to call any person
25 registered on the do-not-call list maintained pursuant
26 to section 476B.3.
27 b. Call any person registered on the do-not call
28 list maintained pursuant to section 476B.3 while the
29 person is performing paid telephone solicitation
30 services pursuant to contract, including payment by
31 acceptance of a percentage of any charitable donations
32 collected by the person while performing telephone
33 solicitation services.
34 c. Operate any ADAD equipment, predictive dialing
35 technology, or autodialers in a manner that
36 intentionally impedes or prevents the function of a
37 recipient's caller identification if the caller's
38 existing equipment is capable of allowing the display
39 of the caller's telephone number or identity.
40 2. a. Except as provided in paragraph "b", a
41 person shall not use, employ, or direct another person
42 to use, or contract for the use of, ADAD equipment.
43 b. Except for ADAD equipment that randomly or
44 sequentially selects the telephone numbers for
45 calling, the prohibition in paragraph "a" does not
46 apply to any of the following, provided that the
47 telephone numbers selected for automatic dialing have
48 been screened to exclude any consumer who is included
49 on the do-not-call list pursuant to section 476B.3 or
50 who has an unlisted telephone number, unless the calls

Page 4

1 made concern a good or service that has been
2 previously ordered or purchased:

3 (1) Calls made with ADAD equipment by a nonprofit
4 organization or by an individual using the calls other
5 than for commercial profit-making purposes or fund-
6 raising, if the calls do not involve the advertisement
7 or offering for sale, lease, or rental of goods,
8 services, or property.
9 (2) Calls made with ADAD equipment relating to
10 payment for, service of, or warranty coverage of
11 previously ordered or purchased goods or services or
12 to persons or organizations with an existing business
13 relationship with the persons or organizations using
14 the calls.
15 (3) Calls made with ADAD equipment relating to the
16 collection of lawful debts.
17 (4) Calls made with ADAD equipment to members or
18 employees of the organization making the calls.
19 (5) Calls made with ADAD equipment that use an
20 initial prerecorded message of a duration no greater
21 than seven seconds prior to a live operator intercept,
22 or calls that involve an initial message from a live
23 operator.
24 3. Calls made with ADAD equipment must terminate
25 the connection with any call within ten seconds after
26 the person receiving the call acts to disconnect the
27 call.
28 4. Calls made with predictive dialing technology
29 must meet a standard that allows a live telephone
30 solicitor to engage in conversation with a call
31 recipient within two seconds after the call is
32 answered by the call recipient.
33 Sec. 3. NEW SECTION. 476B.3 DO-NOT-CALL LISTING.
34 1. The secretary of state shall contract with a
35 service that maintains a national do-not-call list, so
36 that Iowa telephone subscribers who do not wish to
37 receive unsolicited telephone solicitation utilizing
38 any ADAD equipment, predictive dialing technology, or
39 autodialers may register to be included on the list.
40 The contract shall be made in consultation with the
41 consumer protection division of the department of
42 justice, so that all evidentiary issues and other
43 issues related to enforcement are considered.
44 2. A residential, mobile, or telephonic paging
45 device telephone subscriber who does not wish to
46 receive unsolicited telephone solicitations may
47 register to be included on the do-not-call list
48 contracted for by the secretary of state pursuant to
49 subsection 1.
50 3. A telephone solicitor doing business in Iowa

Page 5

1 shall pay a fee to be determined pursuant to

2 subsection 5, and shall obtain a subscription to
3 receive the quarterly updated subscription listings of
4 consumers in Iowa who have registered to be included
5 on the do-not-call list referred to in this section.
6 4. A telephone solicitor shall not make a call
7 with any ADAD equipment, predictive dialing
8 technology, or autodialer to any consumer in Iowa
9 whose name is on the do-not-call list referred to in
10 this section.
11 5. The secretary of state and consumer protection
12 division of the department of justice shall adopt
13 rules pursuant to chapter 17a to administer this
14 section, including appropriate notices to consumers of
15 the types of calls toward which such registration is
16 directed, and the charging of a fee for subscriptions
17 to the list so that the list income supports the cost
18 of maintaining the list.
19 Sec. 4. NEW SECTION. 476B.4 TELEPHONE
20 SOLICITATION RESTRICTIONS.
21 A telephone solicitor who makes a telephone
22 solicitation to a residential, mobile, or telephonic
23 paging device telephone number shall disclose the
24 identity of the telephone solicitor and the business
25 on whose behalf the telephone solicitor is making the
26 telephone solicitation, immediately upon making
27 contact by telephone with the person who is the object
28 of the telephone solicitation. The telephone
29 solicitor shall also comply with the provisions of 16
30 C.F.R. 310.4 in regard to required disclosures and
31 other actions of the telephone solicitor. The
32 business employing the telephone solicitor shall also
33 comply with the provisions of 16 C.F.R. 310.5,
34 particularly with regard to the use of fictitious
35 names by employees and recordkeeping by the business
36 regarding such names.
37 Sec. 5. NEW SECTION. 476B.5 REQUIREMENTS FOR
38 CONTRACTS MADE PURSUANT TO TELEPHONE SOLICITATION.
39 1. a contract made pursuant to a telephone
40 solicitation is not valid and enforceable against a
41 consumer unless made in compliance with this section.
42 2. a contract made pursuant to a telephone
43 solicitation must satisfy all of the following:
44 a. The contract must be reduced to writing and
45 signed by the consumer.
46 b. The contract must comply with all other
47 applicable laws and rules.
48 c. The contract must match the description of
49 goods or services as principally communicated in the
50 telephone solicitation.


Page 6

1 d. The contract must contain the name, address,
2 and telephone number of the seller, the total price of
3 the contract, and a detailed description of the goods
4 or services being sold.
5 e. The contract must contain, in bold, conspicuous
6 type, immediately preceding the signature, the
7 following statement:
8 "You are not obligated to pay any money unless you
9 sign this contract and return it to the seller."
10 f. The contract must not exclude from its terms
11 any oral or written representations made by the
12 telephone solicitor to the consumer in connection with
13 the transaction.
14 This section does not apply to contractual sales
15 specifically regulated by other law, or to the sale of
16 financial services, security sales, or sales
17 transacted by insurance companies or their wholly
18 owned subsidiaries or agents, or to the sale of cable
19 television services to a franchised cable television
20 operator's existing subscribers within that cable
21 television operator's franchise area, or to any sales
22 where no prior payment is made to the merchant and an
23 invoice accompanies the goods or services allowing the
24 consumer no less than seven days to cancel or return
25 the goods or services without obligation for any
26 payment.
27 Sec. 6. NEW SECTION. 476B.6 RESTRICTIONS ON
28 CHARGES TO CREDIT CARD ACCOUNTS AND ELECTRONIC
29 TRANSFERS OF FUNDS.
30 1. A merchant who engages a telephone solicitor to
31 make or cause to be made a telephone solicitation
32 shall not make or submit any charge to a consumer's
33 credit card account or make or cause to be made any
34 electronic transfer of funds until after the merchant
35 receives from the consumer a copy of the contract,
36 signed by the consumer, that complies with section
37 476B.5.
38 2. This section does not apply to any of the
39 following:
40 a. A transaction made pursuant to prior
41 negotiations in the course of a visit by the consumer
42 to a merchant operating a retail business
43 establishment which has a fixed permanent location and
44 where consumer goods are displayed or offered for sale
45 on a continuing basis.
46 b. A transaction in which the consumer may obtain
47 a full refund for the return of undamaged and unused
48 goods or a cancellation of services by notice to the
49 seller within seven days after receipt by the
50 consumer, and the seller will process the refund

Page 7

1 within thirty days after receipt of the returned
2 merchandise by the consumer.
3 c. A transaction in which the consumer purchases
4 goods or services pursuant to an examination of a
5 television, radio, or print advertisement or a sample,
6 brochure, or catalog of the merchant that contains all
7 of the following:
8 (1) The name, address, and telephone number of the
9 merchant.
10 (2) A description of the goods or services being
11 sold.
12 (3) Any limitations or restrictions that apply to
13 the offer.
14 d. A transaction in which the merchant is a bona
15 fide charitable organization or a newspaper.
16 Sec. 7. NEW SECTION. 476B.7 PREPAID CALLING
17 CARDS - DISCLOSURES - REQUIREMENTS.
18 1. A prepaid calling card company shall provide
19 all of the following information about the prepaid
20 calling services in a prominent area at the point of
21 sale of the prepaid calling services, legibly and
22 visibly printed on the card, packaging, or display in
23 such a manner that the consumer may make an informed
24 decision about the prepaid calling services prior to
25 purchase:
26 a. The maximum charge per minute for the prepaid
27 calling services.
28 b. All applicable surcharges.
29 c. The expiration policy for the prepaid calling
30 services, if applicable.
31 The company shall insure by contract with its
32 retailers or distributors that the information is
33 provided to the consumer.
34 2. A prepaid calling card company shall legibly
35 print all of the following information on the prepaid
36 calling card:
37 a. The name of the prepaid calling card company,
38 as registered with the secretary of state.
39 b. A toll-free customer service number.
40 c. A toll-free network access number.
41 d. The authorization code, if such a code is
42 required to access telecommunications service.
43 3. A prepaid calling card company shall provide
44 all of the following information and services through
45 its customer service number:
46 a. Rates and surcharges.
47 b. Balance of use in account.
48 c. Expiration date or period, if applicable.
49 d. A live operator to answer incoming calls
50 twenty-four hours a day, seven days a week, or

Page 8

1 electronic voice recording of consumer messages. A
2 combination of live operators or recorders may be
3 used. If a recorder is used, the company shall
4 attempt to contact each consumer no later than the
5 next business day following the date of the recording.
6 4. A prepaid calling card company shall use the
7 following billing standards:
8 a. A prepaid calling card company shall only
9 charge a consumer for conversation time used plus
10 applicable surcharges.
11 b. The billing increment used by a prepaid calling
12 card company shall not exceed one minute.
13 c. Conversation time of less than a full minute
14 shall not be rounded up beyond the next full minute.
15 5. Cards that do not have a specific expiration
16 period printed on the card, and that have a balance of
17 service remaining, shall be considered active for a
18 minimum of one year from the date of first use, or if
19 recharged, from the date of the last recharge.
20 6. A prepaid calling card company shall have a
21 refund policy that meets all of the following minimum
22 requirements:
23 a. For prepaid calling services that are rendered
24 unusable for reasons beyond the consumer's control,
25 and have not exceeded the expiration period, a prepaid
26 calling card company shall provide a refund equal to
27 the value remaining in the account.
28 b. Each company may, but shall not be required to,
29 provide a refund when a card has been lost or stolen.
30 c. Refunds may be cash or replacement service, at
31 the prepaid calling card company's option, but must be
32 made to the consumer within sixty days of the request
33 for a refund by the consumer.
34 7. All cards sold by a prepaid calling card
35 company in Iowa after July 1, 2001, shall comply with
36 this section.
37 Sec. 8. NEW SECTION. 476B.8 INVESTIGATIONS -
38 CIVIL ACTIONS - CIVIL PENALTY - OTHER REMEDIES.
39 1. A violation of this chapter is a violation of
40 section 714.16, subsection 2, paragraph "a". All the
41 powers conferred upon the attorney general to
42 accomplish the objectives and carry out the duties
43 prescribed pursuant to section 714.16 are also
44 conferred upon the attorney general to enforce this
45 chapter, including, but not limited to, the power to
46 issue subpoenas, adopt rules pursuant to chapter 17A
47 which shall have the force of law, and seek injunctive
48 relief and civil penalties.
49 2. In seeking reimbursement pursuant to section
50 714.16, subsection 7, from a person who has committed

Page 9

1 a violation of this chapter, the attorney general may
2 seek an order from the court that the person pay to
3 the attorney general on behalf of consumers the
4 amounts for which the person would be liable under
5 section 476B.8, subsection 2, for each consumer who
6 has a cause of action pursuant to section 476B.8,
7 subsection 2. Section 714.16, as it relates to
8 consumer reimbursement, shall apply to consumer
9 reimbursement pursuant to this section.
10 Sec. 9. NEW SECTION. 476B.9 PRIVATE CAUSE OF
11 ACTION - DAMAGES AND INJUNCTIVE RELIEF.
12 In addition to any other remedies, a consumer who
13 receives more than one telephone solicitation within
14 any twelve-month period by or on behalf of the same
15 person in violation of any provision of this chapter
16 may bring an action against the person to recover all
17 of the following:
18 1. Preliminary and permanent injunctive relief
19 necessary to protect the public against further
20 violations.
21 2. The greater of actual monetary damages or a sum
22 not less than one hundred dollars but not more than
23 two thousand dollars for each telephone call made in
24 violation of this chapter.
25 3. Costs and reasonable attorney fees.
26 Reimbursement awarded to the attorney general
27 pursuant to section 714.16, subsection 7, on behalf of
28 a plaintiff who has filed an action pursuant to this
29 section concerning the same set of facts shall be
30 deducted from any damages awarded to the plaintiff in
31 an action filed under this section.
32 Sec. 10. NEW SECTION. 476B.10 NOTIFICATION OF
33 RIGHTS.
34 The board shall by rule ensure that
35 telecommunications providers inform their customers of
36 the customers' rights under this chapter. The
37 notification shall be made by at least both of the
38 following:
39 1. Annual inserts in the billing statements mailed
40 to customers.
41 2. Conspicuous publication of the notice in the
42 consumer information pages of the local telephone
43 directories.
44 Sec. 11. Section 476.57, Code 2001, is repealed."
45 2. Title page, by striking lines 1 through 12 and
46 inserting the following: "An Act relating to
47 telemarketing."
48 3. By renumbering as necessary.


Schrader of Marion requested a ruling if amendment H-1358 was
germane.

The Speaker ruled amendment H-1358 not germane.

Schrader of Marion moved to suspend the rules to consider
amendment H-1358.

Roll call was requested by Schrader of Marion and Connors of
Polk.

On the question "Shall the rules be suspended to consider
amendment H-1358?" (H.F. 577)

The ayes were, 39:
Atteberry Bell Bukta Chiodo
Cohoon Connors Dotzler Falck
Fallon Foege Ford Frevert
Greimann Hatch Jochum Kreiman
Kuhn Larkin Lensing Mascher
May Mertz Murphy Myers
O'Brien Osterhaus Quirk Reynolds
Richardson Scherrman Schrader Seng
Smith Stevens Taylor, T. Tremmel
Warnstadt Winckler Witt

 


The nays were, 56:
Alons Arnold Barry Baudler
Boal Boddicker Boggess Bradley
Brauns Broers Brunkhorst Cormack
De Boef Dix Dolecheck Drake
Eddie Eichhorn Elgin Finch
Garman Gipp Grundberg Hahn
Hansen Heaton Hoffman Horbach
Houser Hoversten Huseman Jacobs
Jenkins Johnson Kettering Klemme
Larson Manternach Metcalf Millage
Raecker Rants Rayhons Rekow
Roberts Shey Shoultz Siegrist, Spkr.
Sievers Teig Tymeson Tyrrell
Van Engelenhoven Van Fossen Weidman Sukup,
Presiding

 


Absent or not voting, 5:
Carroll Huser Petersen Taylor, D.
Wise
The motion to suspend the rules lost.

 


Hatch of Polk offered the following amendment H-1274 filed by
him and moved its adoption:

H-1274

1 Amend House File 577 as follows:
2 1. Page 1, by inserting before line 1 the
3 following:
4 "Section 1. Section 455A.1, Code 2001, is amended
5 by adding the following new subsection:
6 NEW SUBSECTION. 2A. "Energy commission" means the
7 energy commission created in section 455A.5A.
8 Sec. . NEW SECTION. 455A.5A IOWA ENERGY
9 COMMISSION - APPOINTMENT AND DUTIES.
10 1. An energy commission is created within the
11 department of natural resources.
12 2. The energy commission shall consist of seven
13 members, appointed by the governor.
14 a. The members shall serve staggered terms of four
15 years, beginning and ending as provided in section
16 69.19, except for the initial appointments. The
17 governor shall indicate, when making the initial
18 appointments, the two persons that shall serve four-
19 year terms, the two persons that shall serve three-
20 year terms, the two persons that shall serve two-year
21 terms, and the one person that shall serve a one-year
22 term, in order to initiate the system of four-year
23 staggered terms. Commission appointees are subject to
24 senate confirmation.
25 b. The members shall be electors of the state, and
26 shall have substantial knowledge of the subjects
27 embraced in chapter 473. The appointments shall be
28 based upon the training, experience, and capacity of
29 the appointees, and not based upon political
30 considerations, other than as provided in section
31 69.16.
32 c. A member of the energy commission shall not
33 hold any other state or federal office.
34 d. The energy commission shall be subject to the
35 provisions of section 69.16 regarding political
36 affiliation and section 69.16A regarding gender
37 balance.
38 e. A member of the energy commission may be
39 reappointed, subject to the provisions of chapter 69.
40 f. A vacancy on the energy commission shall be
41 filled for the unexpired term according to the
42 provisions of chapter 69.
43 3. The energy commission shall hold an
44 organizational meeting within thirty days of the

45 beginning of a new regular term for one or more of its
46 members. The energy commission shall organize by
47 electing a chairperson, vice chairperson, secretary,
48 and any other officers deemed necessary or desirable.
49 The energy commission shall meet at least quarterly
50 throughout the year, or upon the call of the

Page 2

1 chairperson.
2 4. A majority of the members of the energy
3 commission is a quorum, and a majority of a quorum may
4 act in any matter within the jurisdiction of the
5 commission, unless a more restrictive rule is adopted
6 by the commission.
7 5. The energy commission shall investigate and
8 annually report to the general assembly on at least
9 the following topics:
10 a. The latest technologies of energy efficiency
11 and renewable resources.
12 b. Formulation of a statewide education policy to
13 inform media and citizens of energy issues.
14 c. The short-term and long-term feasibility of
15 implementing various alternative energy sources.
16 d. The regulation of utilities in Iowa.
17 e. Recommendations regarding responsible standards
18 for improving the efficiency of projects that utilize
19 state funds.
20 6. The energy commission is charged with the
21 following responsibilities and duties, except as
22 otherwise established by law:
23 a. Establish policy for the department and adopt
24 rules, pursuant to chapter 17A, necessary to provide
25 for the effective administration of chapter 473.
26 b. Hear appeals in contested cases pursuant to
27 chapter 17a on matters relating to actions taken by
28 the director under chapter 473 and approve the budget
29 request prepared by the director for the programs
30 authorized by chapter 473.
31 c. Increase, decrease, or strike any item within
32 the department budget request for the programs
33 authorized by chapter 473 before granting approval.
34 7. The energy commission shall also advise the
35 governor in developing energy policy in Iowa.
36 8. Members of the energy commission are eligible
37 for reimbursement of actual and necessary expenses
38 incurred in the performance of their official duties.
39 Each member of the energy commission may also be
40 eligible to receive compensation as provided in
41 section 7E.6.
42 Sec. . Section 455A.6, subsection 6, paragraph
43 b, Code 2001, is amended to read as follows:

44 b. Hear appeals in contested cases pursuant to
45 chapter 17a on matters relating to actions taken by
46 the director under chapter 455C, 458A, or 464B, or
47 473.
48 Sec. . Section 473.1, subsection 1, Code 2001,
49 is amended to read as follows:
50 1. "Commission" means the environmental protection

Page 3

1 energy commission of the department.
2 Sec. . Section 473.3, Code 2001, is amended to
3 read as follows:
4 473.3 LEGISLATIVE INTENT - ENERGY EFFICIENCY
5 GOAL.
6 1. Iowa imports over ninety-eight percent of its
7 energy, and energy resources in relation to consumer
8 demand are soon projected to reach a critical point in
9 Iowa. Increasing energy efficiency is one method for
10 conserving energy resources.
11 2. The goal policy of this state is to more
12 efficiently utilize energy resources more efficiently,
13 especially those that are nonrenewable or that have
14 negative environmental impacts, in order to enhance
15 the economy of the state and to decrease the state's
16 dependence on energy resources from outside the state
17 by reducing the amount of energy used.
18 3. The long-term goal of this state is to increase
19 energy efficiency by twenty percent, over a time
20 period and by specific measures to be determined by
21 the commission.
22 4. This goal is to The energy efficiency policy
23 shall be implemented through all of the following
24 policies and programs:
25 a. Through the development of programs that
26 promote energy efficiency and energy conservation by
27 all Iowans, through including through increased
28 weatherization of homes.
29 b. Through the development and enhancement of an
30 energy efficiency industry, through.
31 c. Through the development of indigenous energy
32 resources that are economically and environmentally
33 viable, and through.
34 d. Through the development and implementation of
35 effective public information and education programs.
36 5. State government shall be a model and testing
37 ground for the use of energy efficiency systems.
38 Sec. . Section 473.7, Code 2001, is amended to
39 read as follows:
40 473.7 DUTIES OF THE DEPARTMENT ENERGY COMMISSION.
41 The department commission shall:
42 1. Deliver to the general assembly by January 15,

43 1990 February 1, 2003, a plan for the development,
44 management, and efficient utilization of all energy
45 resources in the state. The plan shall evaluate
46 existing energy utilization with regard to energy
47 efficiency and shall evaluate the future energy needs
48 of the state. The plan shall include but is not
49 limited to the following elements:
50 a. The historical use and distribution of energy

Page 4

1 in Iowa.
2 b. The growth rate of energy consumption in Iowa.
3 c. A projection of Iowa's energy needs at a
4 minimum of ten, twenty, and thirty years into the
5 future.
6 d. The impact of meeting Iowa's energy needs on
7 the economy of the state.
8 e. The impact of meeting Iowa's energy needs on
9 the environment of the state.
10 f. An evaluation of alternative sources and uses
11 of energy.
12 g. Legislative recommendations that may be
13 necessary as a basis for the development of a state
14 policy for the development and efficient utilization
15 of on energy resources.
16 h. An evaluation of the ability of existing laws
17 and regulations surrounding the utilization of to
18 address future needs regarding energy resources.
19 The department commission shall develop the plan
20 with the assistance of, and in consultation with, the
21 utilities board within the department of commerce,
22 representatives of the energy industry, economic
23 interests, the public, and other interested parties.
24 The department commission shall submit a report to the
25 general assembly concerning the status and
26 implementation of the plan on a biennial basis. The
27 biennial update shall contain an evaluation of all
28 state energy programs including expected versus actual
29 benefits and forecasts of future energy demand in
30 Iowa.
31 2. Identify a state facility in the state to be
32 used as a marketing tool to promote energy
33 conservation by providing a showcase for the
34 department commission to demonstrate energy
35 efficiency.
36 3. The department commission shall exchange
37 information with other states on energy and especially
38 on the allocation of fuel and shall request all
39 information necessary to determine the reasonableness
40 of any reduction of Iowa's fuel allocation, or the
41 reasonableness of any increase in prices of any type

42 of fuel, including the possibility of price-fixing or
43 other manipulation of the market.
44 4. Establish a central depository within the state
45 for energy data.
46 a. The central depository shall be located at or
47 accessible through a library which that is a member of
48 an interlibrary loan program to facilitate access to
49 the data and information contained in the central
50 depository.

Page 5

1 b. The department commission shall collect data
2 necessary to forecast future energy demands in the
3 state.
4 c. The department commission may require a
5 supplier to provide information pertaining to the
6 supply, storage, distribution and sale of energy
7 sources in this state.
8 d. The information shall be furnished on a
9 periodic basis, shall be of a nature which that
10 directly relates to the supply, storage, distribution
11 and sale of energy sources, and shall not include any
12 records, documents, books, or other data which that
13 relate to the financial position of the supplier.
14 Provided, provided that the department commission,
15 prior to requiring any supplier to furnish it the
16 commission with such information, shall make every
17 reasonable effort to determine if the same such
18 information is available from any other governmental
19 source. If it the commission finds such information
20 is available, the department commission shall not
21 require submission of the same such information from a
22 supplier.
23 e. Notwithstanding the provisions of chapter 22,
24 information and reports obtained under this section
25 subsection shall be confidential except when used for
26 statistical purposes without identifying a specific
27 supplier and when release of the information will not
28 give an advantage to competitors and serves a public
29 purpose. The department commission shall use this
30 data to conduct energy forecasts which that shall be
31 included in the biennial update required by this
32 section.
33 f. The department commission may subpoena
34 witnesses, administer oaths, and require the
35 production of records, books, and documents for
36 examination in order to obtain information required to
37 be submitted under this section. In case of failure
38 or refusal on the part of any person to comply with a
39 subpoena issued by the department commission, or in
40 case of the refusal of any witness to testify as to

41 any matter regarding which the witness may be
42 interrogated under this chapter, the district court,
43 upon the application of the department commission, may
44 order the person to show cause why the person should
45 not be held in contempt for failure to testify or
46 comply with a subpoena, and may order the person to
47 produce the records, books, and documents for
48 examination, and to give testimony. The courts may
49 punish for contempt as in the case of disobedience to
50 a like subpoena issued by the court, or for refusal to

Page 6

1 testify.
2 5. Develop, recommend, and implement with
3 appropriate agencies public and professional education
4 and communication programs in energy efficiency,
5 energy conservation, and conversion to alternative
6 sources of energy.
7 6. When necessary to carry out its duties under
8 this chapter, enter into contracts with state agencies
9 and other qualified contractors.
10 7. Receive and accept grants made available for
11 programs relating to duties of the department
12 commission under this chapter.
13 8. Promulgate Adopt rules pursuant to chapter 17A
14 necessary to carry out the provisions of this chapter,
15 subject to review in accordance with chapter 17A.
16 Rules promulgated by the governor pursuant to a
17 proclamation issued under the provisions of section
18 473.8 shall not be subject to review or a public
19 hearing as required in chapter 17A; however, agency
20 rules for implementation of the governor's
21 proclamation are subject to the requirements of
22 chapter 17A.
23 9. Examine and determine whether additional state
24 regulatory authority is necessary to protect the
25 public interest and to promote the effective
26 development, utilization and conservation of energy
27 resources. If the department commission finds that
28 additional regulatory authority is necessary, the
29 department commission shall submit recommendations to
30 the general assembly concerning the nature and extent
31 of such regulatory authority and which state agency
32 should be assigned such regulatory responsibilities.
33 10. Develop and assist in the implementation of
34 public education and communications programs in energy
35 development, use and conservation, in co-operation
36 cooperation with the department of education, the
37 state university extension services and other public
38 or private agencies and organizations as deemed
39 appropriate by the department commission.

40 11. Develop a program to annually give annual
41 public recognition to innovative methods of energy
42 conservation.
43 12. Administer and coordinate federal funds for
44 energy conservation programs including, but not
45 limited to, the institutional conservation program,
46 state energy conservation program, and energy
47 extension service program, and related programs which
48 that provide energy management and conservation
49 assistance to schools, hospitals, health-care health
50 care facilities, communities, and the general public.

Page 7

1 13. Administer and coordinate the state building
2 energy management program including projects funded
3 through private financing.
4 14. Perform monthly fuel surveys which that
5 establish a statistical average of motor fuel prices
6 for various motor fuels provided throughout the state.
7 Additionally, the department commission shall perform
8 monthly fuel surveys in cities with populations of
9 over fifty thousand which that establish a statistical
10 average of motor fuel prices for various motor fuels
11 provided in those individual cities. The survey
12 results shall be publicized in a monthly press release
13 issued by the department commission.
14 15. Conduct a study on Study activities related to
15 energy production and use which that contribute to
16 global climate change and the depletion of the
17 stratospheric ozone layer. The study shall identify
18 the types and relative contributions of these
19 activities in Iowa. The department commission shall
20 develop a strategy to reduce emissions from activities
21 identified as having an adverse impact on the global
22 climate and the stratospheric ozone layer. The
23 department shall submit a report containing its
24 findings and recommendations to the governor and
25 general assembly by January 1, 1992.
26 Sec. . Section 473.17, Code 2001, is amended to
27 read as follows:
28 473.17 REVIEW.
29 The first session of the Seventy-second Eighty-
30 first General Assembly meeting in the year 1987 2005
31 shall review the activities and performance of the
32 department commission and shall not later than July 1,
33 1987 make a determination concerning the status and
34 duties of the department commission, which review
35 shall be performed every ten years thereafter."
36 2. Page 1, by inserting after line 8 the
37 following:
38 "Sec. . Section 476.2, Code 2001, is amended by

39 adding the following new subsection:
40 NEW SUBSECTION. 5A. The board shall emphasize the
41 maintenance of a safe, reliable, and adequate power
42 system, through application of standards for customer
43 response times, outage frequency and duration,
44 strategic staffing, prevention of injury and loss of
45 life, and facilitation of construction of adequate
46 generation and transmission facilities, including
47 maintenance of the existing power grid.
48 Sec. . Section 476.2, subsection 6, Code 2001,
49 is amended to read as follows:
50 6. The board shall provide the general assembly

Page 8

1 energy commission with a report on the energy
2 efficiency planning efforts undertaken by utilities
3 required to offer energy efficiency plans pursuant to
4 section 476.6, subsection 17. The report shall be
5 completed by January 1, 1998. following subjects:
6 a. An analysis of the level of investment and
7 incentives required to increase the energy generated
8 from alternative or renewable sources by ten, twenty,
9 and thirty percent.
10 b. Recommendations for promoting investment in
11 integrated small-scale renewable energy systems.
12 c. An analysis of the costs and benefits of
13 generating and transmitting electricity from renewable
14 sources, and a proposal for a formula for establishing
15 a fair cost for transmitting electricity from
16 renewable sources.
17 d. Recommendations regarding establishment of a
18 standard system for net metering and connecting
19 renewable electricity generators to the electric
20 transmission grid."
21 3. By renumbering as necessary.

Roll call was requested by Myers of Johnson and Hatch of Polk.

On the question "Shall amendment H-1274 be adopted?" (H.F. 577)

The ayes were, 42:
Atteberry Bell Bukta Chiodo
Cohoon Connors Dotzler Falck
Fallon Foege Ford Frevert
Greimann Hatch Jochum Kreiman
Kuhn Larkin Lensing Mascher
May Mertz Murphy Myers
O'Brien Osterhaus Quirk Reynolds
Richardson Scherrman Schrader Seng
Shoultz Smith Stevens Taylor, D.
Taylor, T. Tremmel Warnstadt Winckler
Wise Witt

 


The nays were, 54:
Alons Arnold Barry Baudler
Boal Boddicker Boggess Bradley
Brauns Broers Brunkhorst Carroll
Cormack De Boef Dix Dolecheck
Drake Eddie Eichhorn Elgin
Finch Garman Gipp Grundberg
Hahn Hansen Hoffman Horbach
Hoversten Huseman Jacobs Jenkins
Johnson Kettering Klemme Larson
Manternach Metcalf Millage Raecker
Rants Rayhons Rekow Roberts
Shey Siegrist, Spkr. Sievers Teig
Tymeson Tyrrell Van Engelenhoven Van Fossen
Weidman Sukup,
Presiding

 


Absent or not voting, 4:
Heaton Houser Huser Petersen

 


Amendment H-1274 lost.

Witt of Black Hawk offered amendment H-1284 filed by Witt, et
al., as follows:

H-1284

1 Amend House File 577 as follows:
2 1. Page 1, by inserting before line 1 the
3 following:
4 "Section 1. NEW SECTION. 473.14 IMPLEMENTATION
5 OF ENERGY CONSERVATION MEASURES - SCHOOL
6 CORPORATIONS.
7 1. Any energy efficiency projects approved by the
8 commission that are completed by a school corporation
9 subject to section 298.18 shall be exempt from the
10 bonded debt levy limits in section 298.18.
11 2. The commission shall adopt rules pursuant to
12 chapter 17A to administer this section, including
13 requirements for an energy management plan, an energy
14 audit, and an engineering analysis of the energy
15 conservation measures.
16 3. a participating school corporation shall
17 annually report to the commission on August 1 the
18 status of all energy conservation measures identified

19 in their engineering analysis, whether or not the
20 measures have been acquired or implemented, and the
21 results of energy usage analyses of the board's
22 facilities. The report shall also be made available
23 to the residents of the election district for the
24 school corporation."
25 2. Page 1, by inserting after line 8 the
26 following:
27 Sec. . Section 476.2, subsection 6, Code 2001,
28 is amended to read as follows:
29 6. The board shall provide the general assembly
30 with a report on the energy efficiency planning
31 efforts undertaken by utilities required to offer
32 energy efficiency plans pursuant to section 476.6,
33 subsection 17. The report shall be completed by
34 January 1, 1998. following subjects:
35 a. An analysis of the level of investment and
36 incentives required to increase the energy generated
37 from alternative or renewable sources by ten, twenty,
38 and thirty percent.
39 b. Recommendations for promoting investment in
40 integrated small-scale renewable energy systems.
41 c. An analysis of the costs and benefits of
42 generating and transmitting electricity from renewable
43 sources, and a proposal for a formula for establishing
44 a fair cost for transmitting electricity from
45 renewable sources.
46 d. Recommendations regarding establishment of a
47 standard system for net metering and connecting
48 renewable electricity generators to the electric
49 transmission grid."
50 3. Page 5, by inserting before line 1 the

Page 2

1 following:
2 "Sec. . Section 476.6, subsection 19, Code
3 2001, is amended to read as follows:
4 19. ENERGY EFFICIENCY IMPLEMENTATION, COST REVIEW,
5 AND COST RECOVERY.
6 It is the intent of the general assembly that the
7 board reinitiate the filing and evaluation of energy
8 efficiency plans by gas and electric utilities,
9 effective upon the effective date of this Act:
10 a. Gas and electric utilities required to be rate-
11 regulated under this chapter shall file energy
12 efficiency plans with the board. An energy efficiency
13 plan and budget shall include a range of programs,
14 tailored to the needs of all customer classes,
15 including residential, commercial, and industrial
16 customers, for energy efficiency opportunities. The
17 plans shall include rebates for the purchase and use

18 of energy efficient appliances. The plans shall
19 include programs for qualified low-income persons
20 including a cooperative program with any community
21 action agency within the utility's service area to
22 implement countywide or communitywide energy
23 efficiency programs for qualified low-income persons,
24 and shall also include a small business energy
25 assistance program to be developed by the energy
26 commission. Rate-regulated gas and electric utilities
27 shall utilize Iowa agencies and Iowa contractors to
28 the maximum extent cost-effective in their energy
29 efficiency plans filed with the board.
30 b. A gas and electric utility required to be rate-
31 regulated under this chapter shall assess potential
32 energy and capacity savings available from actual and
33 projected customer usage by applying commercially
34 available technology and improved operating practices
35 to energy-using equipment and buildings. The utility
36 shall submit the assessment to the board. Upon
37 receipt of the assessment, the board shall consult
38 with the energy bureau of the division of energy and
39 geological resources of the department of natural
40 resources to develop specific capacity and energy
41 savings performance standards for each utility. The
42 utility shall submit an energy efficiency plan which
43 that shall include economically achievable programs
44 designed to attain these energy and capacity
45 performance standards.
46 The utilities shall make energy audits available to
47 all customers. Priority may be given to customers
48 with greater energy use, but the service shall not be
49 denied on the basis that the consumer purchases only a
50 selected product or products from the utility.

Page 3

1 c. The board shall conduct contested case
2 proceedings for review of energy efficiency plans and
3 budgets filed by gas and electric utilities required
4 to be rate-regulated under this chapter. The board
5 may approve, reject, or modify the plans and budgets.
6 Notwithstanding the provisions of section 17A.19,
7 subsection 5, in an application for judicial review of
8 the board's decision concerning a utility's energy
9 efficiency plan or budget, the reviewing court shall
10 not order a stay. Whenever a request to modify an
11 approved plan or budget is filed subsequently by the
12 office of consumer advocate or a gas or electric
13 utility required to be rate-regulated under this
14 chapter, the board shall promptly initiate a formal
15 proceeding if the board determines that any reasonable
16 ground exists for investigating the request. The

17 formal proceeding may be initiated at any time by the
18 board on its own motion. Implementation of board-
19 approved plans or budgets shall be considered
20 continuous in nature and shall be subject to
21 investigation at any time by the board or the office
22 of the consumer advocate.
23 d. Notice to customers of a contested case
24 proceeding for review of energy efficiency plans and
25 budgets shall be in a manner prescribed by the board.
26 e. A gas or electric utility required to be rate-
27 regulated under this chapter may recover, through an
28 automatic adjustment mechanism filed pursuant to
29 subsection 11, over a period not to exceed the term of
30 the plan, the costs of an energy efficiency plan
31 approved by the board, including amounts for a plan
32 approved prior to July 1, 1996, in a contested case
33 proceeding conducted pursuant to paragraph "c". The
34 board shall periodically conduct a contested case
35 proceeding to evaluate the reasonableness and prudence
36 of the utility's implementation of an approved energy
37 efficiency plan and budget. If a utility is not
38 taking all reasonable actions to cost-effectively
39 implement an approved energy efficiency plan, the
40 board shall not allow the utility to recover from
41 customers costs in excess of those costs that would be
42 incurred under reasonable and prudent implementation
43 and shall not allow the utility to recover future
44 costs at a level other than what the board determines
45 to be reasonable and prudent. If the result of a
46 contested case proceeding is a judgment against a
47 utility, that utility's future level of cost recovery
48 shall be reduced by the amount by which the programs
49 were found to be imprudently conducted. The utility
50 shall not represent energy efficiency in customer

Page 4

1 billings as a separate cost or expense unless the
2 board otherwise approves.
3 f. A rate-regulated utility required to submit an
4 energy efficiency plan under this subsection shall,
5 upon the request of the energy commission, or upon the
6 direct request of a state agency or political
7 subdivision to which it the utility provides service,
8 provide advice and assistance to a state agency or
9 political subdivision regarding measures which that
10 the state agency or political subdivision might take
11 in achieving improved energy efficiency results. The
12 cooperation shall include assistance in accessing
13 financial assistance for energy efficiency measures.
14 Sec. . Section 476.44, subsection 2, Code 2001,
15 is amended to read as follows:

16 2. a. An electric utility subject to this
17 division, except a utility which that elects rate
18 regulation pursuant to section 476.1A, shall not be
19 required to purchase, at any one time, more than its
20 scheduled percentage share of one hundred five
21 megawatts of power its Iowa retail load from
22 alternative energy production facilities or small
23 hydro facilities at the rates established pursuant to
24 section 476.43. The board shall allocate the one
25 hundred five megawatts make the allocations based upon
26 each utility's percentage of the total Iowa retail
27 peak demand, for the each year, beginning January 1,
28 1990, of all utilities subject to this section, based
29 on the following schedule:
30 (1) Until January 1, 2006, two percent.
31 (2) Beginning January 1, 2006, four percent.
32 (3) Beginning January 1, 2009, six percent.
33 (4) Beginning January 1, 2011, eight percent.
34 (5) Beginning January 1, 2013, ten percent.
35 (6) Beginning January 1, 2015, twelve percent.
36 (7) Beginning January 1, 2017, fourteen percent.
37 (8) Beginning January 1, 2019, sixteen percent.
38 (9) Beginning January 1, 2021, twenty percent.
39 b. If a utility undergoes reorganization as
40 defined in section 476.76, the board shall combine the
41 allocated purchases of power for each utility involved
42 in the reorganization.
43 c. Notwithstanding the one hundred five megawatt
44 current applicable maximum, the board may increase the
45 amount of power that a utility is required to purchase
46 at the rates established pursuant to section 476.43 if
47 the board finds that a utility, including a
48 reorganized utility, exceeds its 1990 previous Iowa
49 retail peak demand level by twenty percent, and the
50 additional power the utility is required to purchase

Page 5

1 will encourage the development of alternate energy
2 production facilities and small hydro facilities. The
3 increase shall not exceed the utility's increase in
4 peak demand multiplied by the ratio of the utility's
5 share of the one hundred five megawatt current
6 scheduled maximum to its 1990 Iowa retail peak
7 demand."
8 4. Title page, line 1 by striking the word
9 "power" and inserting the following: "power,
10 including".
11 5. Title page, line 11, by inserting after the
12 word "agencies;" the following: "addressing energy
13 conservation and energy efficiency programs;
14 addressing the alternative energy production

15 standard;"
16 6. By renumbering as necessary.

Speaker Siegrist in the chair at 7:16 p.m.

Jenkins of Black Hawk rose on a point of order that amendment H-
1284 was not germane.

The Speaker ruled the point well taken and amendment H-1284
not germane.

Witt of Black Hawk offered amendment H-1285 filed by Witt, et
al., as follows:

H-1285

1 Amend House File 577 as follows:
2 1. Page 1, by inserting before line 1 the
3 following:
4 "Sec. . Section 15.354, Code 2001, is amended
5 by adding the following new subsection:
6 NEW SUBSECTION. 4. New housing constructed, or
7 existing housing rehabilitated, with moneys from the
8 fund shall meet the minimum energy efficiency
9 standards of the state building code as adopted
10 pursuant to section 103A.8A.
11 Sec. . Section 16.100, Code 2001, is amended by
12 adding the following new subsection:
13 NEW SUBSECTION. 9. New housing constructed, or
14 existing housing rehabilitated, with moneys from the
15 fund shall meet the minimum energy efficiency
16 standards of the state building code as adopted
17 pursuant to section 103A.8A.
18 Sec. . Section 103A.10, subsection 2, Code
19 2001, is amended by adding the following new
20 paragraph:
21 NEW PARAGRAPH. c. To all new housing constructed
22 or existing housing rehabilitated with moneys from the
23 funds established under sections 15.354 or 16.100."
24 2. Title page, line 1, by inserting after the
25 words "relating to" the following: "energy,
26 including".
27 3. Title page, line 11, by inserting after the
28 word "agencies;" the following: "addressing energy
29 efficiency standards in housing;".
30 4. By renumbering as necessary.

Jenkins of Black Hawk rose on a point of order that amendment H-

1285 was not germane.

The Speaker ruled the point well taken and amendment H-1285
not germane.

Witt of Black Hawk asked for unanimous consent to suspend the
rules to consider amendment H-1285.

Objection was raised.

Witt of Black Hawk moved to suspend the rules to consider
amendment H-1285.

A non-record roll call was requested.

The ayes were 39, nays 49.

The motion to suspend the rules lost.

Schrader of Marion offered the following amendment H-1278 filed
by him and moved its adoption:

H-1278

1 Amend House File 577 as follows:
2 1. Page 1, line 10, by striking the word
3 "subsections," and inserting the following:
4 "subsection".
5 2. By striking page 1, line 11, through page 2,
6 line 30.
7 3. Page 2, line 31, by striking the figure "16B",
8 and inserting the following: "16A".
9 4. By renumbering as necessary.

Roll call was requested by Schrader of Marion and Connors of
Polk.

On the question "Shall amendment H-1278 be adopted?" (H.F. 577)

The ayes were, 45:
Atteberry Bell Bukta Chiodo
Cohoon Connors Cormack Dotzler
Falck Fallon Foege Ford
Frevert Garman Greimann Hatch
Huser Jochum Kreiman Kuhn
Larkin Lensing Mascher May
Mertz Murphy Myers O'Brien
Osterhaus Quirk Reynolds Richardson
Scherrman Schrader Seng Shoultz
Smith Stevens Taylor, D. Taylor, T.
Tremmel Warnstadt Winckler Wise
Witt

 


The nays were, 54:
Alons Arnold Barry Baudler
Boal Boddicker Boggess Bradley
Brauns Broers Brunkhorst Carroll
De Boef Dix Dolecheck Drake
Eddie Eichhorn Elgin Finch
Gipp Grundberg Hahn Hansen
Heaton Hoffman Horbach Houser
Hoversten Huseman Jacobs Jenkins
Johnson Kettering Klemme Larson
Manternach Metcalf Millage Raecker
Rants Rayhons Rekow Roberts
Shey Sievers Sukup Teig
Tymeson Tyrrell Van Engelenhoven Van Fossen
Weidman Mr. Speaker
Siegrist

 


Absent or not voting, 1:
Petersen

 


Amendment H-1278 lost.

Gipp of Winneshiek in the chair at 8:02 p.m.

Jenkins of Black Hawk offered the following amendment H-1312
filed by him and moved its adoption:

H-1312

1 Amend House File 577 as follows:
2 1. Page 1, line 10, by striking the word
3 "subsections" and inserting the following:
4 "subsection".
5 2. By striking page 2, line 31, through page 4,
6 line 35.
7 3. Title page, lines 4 and 5, by striking the
8 words "management of regulated emissions from
9 facilities fueled by coal;".
10 4. By renumbering, redesignating, and correcting

11 internal references as necessary.

Amendment H-1312 was adopted, placing amendment H-1231 filed
by Osterhaus of Jackson and amendment H-1318 filed by Witt of
Black Hawk out of order.

Chiodo of Polk asked and received unanimous consent to withdraw
amendment H-1254 filed by him on March 20, 2001.

Schrader of Marion offered the following amendment H-1277 filed
by him and moved its adoption:

H-1277

1 Amend House File 577 as follows:
2 1. Page 1, by inserting after line 22 the
3 following:
4 "(4) The contract provides the least-cost, long-
5 term benefit available to the consumer."
6 2. Page 2, by striking lines 13 through 16 and
7 inserting the following:
8 "f. The contract costs or the portion of the
9 contract costs that are required to provide service to
10 the public utility's Iowa retail customers shall be
11 included in the public utility's regulated retail
12 electric rates if the board finds all of the following
13 after a contested case proceeding:
14 (1) The power purchase contract is the least-cost
15 alternative.
16 (2) The contract costs or the portion of the
17 contract costs that are required to provide service to
18 the public utility's Iowa retail customers are not
19 offset by other cost decreases or revenue increases.
20 (3) The resulting return on common equity will not
21 exceed the public utility's actual cost of common
22 equity as determined by the board.
23 The public utility may propose to recover the costs
24 through an automatic adjustment of rates as provided
25 in subsection 11."

Roll call was requested by Schrader of Marion and T. Taylor of
Linn.

On the question "Shall amendment H-1277 be adopted?" (H.F. 577)
The ayes were, 44:
Atteberry Bell Bukta Chiodo
Cohoon Connors Cormack Dotzler
Falck Foege Ford Frevert
Garman Greimann Hatch Huser
Jochum Kreiman Kuhn Larkin
Lensing Mascher May Mertz
Murphy Myers O'Brien Osterhaus
Quirk Reynolds Richardson Scherrman
Schrader Seng Shoultz Smith
Stevens Taylor, D. Taylor, T. Tremmel
Warnstadt Winckler Wise Witt

 


The nays were, 53:
Alons Arnold Barry Boal
Boddicker Boggess Bradley Brauns
Broers Brunkhorst Carroll De Boef
Dix Dolecheck Drake Eddie
Eichhorn Elgin Finch Grundberg
Hahn Hansen Heaton Hoffman
Horbach Houser Hoversten Huseman
Jacobs Jenkins Johnson Kettering
Klemme Larson Manternach Metcalf
Millage Raecker Rants Rayhons
Rekow Roberts Shey Siegrist, Spkr.
Sievers Sukup Teig Tymeson
Tyrrell Van Engelenhoven Van Fossen Weidman
Gipp,
Presiding

 


Absent or not voting, 3:
Baudler Fallon Petersen

 


Amendment H-1277 lost.

Jenkins of Black Hawk asked and received unanimous consent to
withdraw amendment H-1297 filed by him on March 21, 2001 placing
out of order amendment H-1403 filed by Chiodo of Polk from the floor.

Jenkins of Black Hawk offered amendment H-1398 filed by him as
follows:

H-1398

1 Amend House File 577 as follows:
2 1. Page 1, line 24, by striking the word "from"
3 and inserting the following: "from, or for the lease
4 of,".
5 2. Page 1, line 26, by inserting after the word
6 "purchased" the following: "or nameplate capacity of
7 the facility leased".

8 3. Page 6, by inserting after line 21 the
9 following:
10 "4. a. If a rate-regulated public utility files
11 an application to construct an electric power
12 generating facility pursuant to section 476A.3, the
13 board shall specify in advance, by order issued after
14 a contested case proceeding, the ratemaking principles
15 that will apply when the costs of the facility are
16 included in regulated electric rates.
17 b. In determining the applicable ratemaking
18 principles, the board shall not be limited to
19 traditional ratemaking principles or traditional cost
20 recovery mechanisms.
21 c. The applicable ratemaking principles shall be
22 determined in a contested case proceeding, which
23 proceeding may be combined with the proceeding for
24 issuance of a certificate conducted pursuant to
25 chapter 476A.
26 d. The order setting forth the applicable
27 ratemaking principles shall be issued prior to the
28 commencement of construction of the facility.
29 e. Following issuance of the order, the rate-
30 regulated public utility shall have the option of
31 proceeding with construction of the facility, or
32 withdrawing its application for a certificate under
33 chapter 476A.
34 f. Notwithstanding any provision of this chapter
35 to the contrary, the ratemaking principles established
36 by the order issued pursuant to paragraph "d" shall be
37 binding with regard to the specific electric power
38 generating facility in any subsequent rate proceeding.
39 Sec. . Section 476A.4, Code 2001, is amended by
40 adding the following new subsection:
41 NEW SUBSECTION. 5. a proceeding for the issuance
42 of a certificate under section 476A.5 may be
43 consolidated with a contested case proceeding for
44 determination of applicable ratemaking principles
45 under section 476.53."
46 4. Page 8, by inserting after line 4 the
47 following:
48 "Sec. . Section 476A.7, Code 2001, is amended
49 by adding the following new subsection:
50 NEW SUBSECTION. 3. Pursuant to the provisions of

Page 2

1 section 476.53, a rate-regulated public utility shall
2 have the option of withdrawing its application for
3 issuance of a certificate at any time prior to the
4 issuance of the certificate, or after the certificate
5 has been issued."

6 5. By renumbering as necessary.

Jenkins of Black Hawk offered the following amendment H-1400,
to amendment H-1398, filed by him from the floor and moved its
adoption:

H-1400

1 Amend the amendment, H-1398, to House File 577, as
2 follows:
3 1. Page 1, line 12, by inserting after the word
4 "facility" the following: "in Iowa".
5 2. Page 1, line 31, by inserting after the word
6 "facility" the following: "in Iowa".

Amendment H-1400 was adopted.

Chiodo of Polk offered the following amendment H-1415, to
amendment H-1398, filed by him from the floor and moved its
adoption:

H-1415

1 Amend the amendment, H-1398, to House File 577, as
2 follows:
3 1. By striking page 1, line 1, through page 2,
4 line 6, and inserting the following:
5 "Amend House File 577 as follows:
6 . Page 1, line 10, by striking the word
7 "subsections" and inserting the following:
8 "subsection".
9 . By striking page 1, line 11, through page 2,
10 line 30.
11 . Page 4, by inserting after line 35, the
12 following:
13 "Sec. . Section 476.8, Code 2001, is amended to
14 read as follows:
15 476.8 UTILITY CHARGES AND SERVICE.
16 1. Every public utility is required to furnish
17 reasonably adequate service and facilities.
18 a. "Reasonably adequate service and facilities"
19 for public utilities furnishing gas or electricity
20 includes programs for customers to encourage the use
21 of energy efficiency and renewable energy sources.
22 b. The charge made by any public utility for any
23 heat, light, gas, energy efficiency and renewable
24 energy programs, water or power produced, transmitted,
25 delivered or furnished, or communications services, or
26 for any service rendered or to be rendered in
27 connection therewith with such service shall be
28 reasonable and just, and every unjust or unreasonable

29 charge for such service is prohibited and declared
30 unlawful. In determining reasonable and just rates,
31 the board shall consider all factors relating to value
32 and shall not be bound by rate base decisions or
33 rulings made prior to the adoption of this chapter.
34 2. The board shall have the authority to order a
35 rate-regulated public utility to construct an electric
36 generating facility, transmission facility, or both,
37 as necessary to ensure continued electric reliability,
38 and to maintain reasonably adequate, reliable, safe,
39 and cost-efficient electric service to Iowa consumers.
40 The prudent and reasonable costs incurred to construct
41 and operate such generating facility or transmission
42 facility shall be included in the determination of the
43 rates of the rate-regulated public utility.
44 3. The board, in determining the value of
45 materials or services to be included in valuations or
46 costs of operations for rate-making purposes, may
47 disallow any unreasonable profit made in the sale of
48 materials to or services supplied for any public
49 utility by any firm or corporation owned or controlled
50 directly or indirectly by such utility or any

Page 2

1 affiliate, subsidiary, parent company, associate or
2 any corporation whose controlling stockholders are
3 also controlling stockholders of such utility. The
4 burden of proof shall be on the public utility to
5 prove that no unreasonable profit is made.
6 4. The continued availability of reliable and
7 affordable electricity is critical to sustaining
8 existing levels of economic activity, providing for
9 future economic growth, and ensuring the education,
10 health, safety, and quality of life of individual
11 Iowans. Therefore, the general assembly finds and
12 declares that the public interest requires that the
13 board take such action as is necessary to cause the
14 construction of additional baseload electricity
15 generating capacity and necessary transmission
16 facilities in Iowa.
17 a. Each rate-regulated public utility shall submit
18 a plan to the board by April 1, 2002, to construct one
19 or more large baseload electricity generating
20 facilities in Iowa, as quickly as is practicable.
21 b. The board shall, after a contested case
22 proceeding, either approve the plan as submitted, or
23 approve the plan with such modifications as the board
24 deems necessary to carry out the purposes of this
25 subsection."
26 . By striking page 5, line 4 through page 6,
27 line 21 and inserting the following:

28 "1. a rate-regulated electric public utility shall
29 have installed electric generating capacity, adjusted
30 for purchases and sales, not less than its maximum
31 integrated hour demand for the year plus a reserve of
32 not less than fifteen percent of such demand. The
33 installed electric generating capacity shall include
34 not more than ten percent firm power purchased from
35 fossil-fueled or nuclear generation sources pursuant
36 to contracts executed, amended, or extended after
37 January 1, 2001, unless otherwise approved by the
38 board as necessary to assure adequate electric
39 generating capacity. The prudent and reasonable costs
40 incurred to construct, operate, and maintain electric
41 generating and transmission facilities shall be
42 included in the determination of the rates of the
43 rate-regulated electric public utility.
44 2. The board may approve a surcharge to retail
45 customers for the cost of capital being invested in
46 the electric power generating facility during the
47 period of construction, if the board finds that it is
48 in the public interest to provide an incentive to
49 ensure the construction of a new electric power
50 generating facility in Iowa.

Page 3

1 3. If retail rates for electric generation service
2 provided by rate-regulated electric utilities are
3 deregulated pursuant to Iowa or federal law, the board
4 shall determine the difference, if any, between the
5 market value and the book value of all of the
6 generation assets owned by a rate-regulated electric
7 utility. The board shall approve a charge to be paid
8 by the utility's retail customers over a reasonable
9 period to permit the utility to collect from such
10 customers the excess, if any, of the book value over
11 the market value of those generation assets. The
12 board shall approve a credit to be paid by the utility
13 to its retail customers over a reasonable period to
14 permit such customers to recover the excess, if any,
15 of the market value over the book value of those
16 generations assets.
17 4. The board shall report to the general assembly
18 by January 21, 2002, and biennially thereafter, on the
19 adequacy, reliability, and development of electric
20 generating and transmission facilities in the state.
21 The report may include recommendations for actions by
22 the general assembly to assure the adequacy and
23 reliability of electric generating and transmission
24 facilities throughout the state."
25 . Title page, lines 3 and 4, by striking the
26 words "approval of power purchase contracts" and

27 inserting the following: "providing authority for the
28 utilities board to order the construction of a
29 generating or transmission facility".
30 . By renumbering, redesignating, and
31 correcting internal references as necessary."

Roll call was requested by Myers of Johnson and Huser of Polk.

On the question "Shall amendment H-1415 be adopted?" (H.F. 577)

The ayes were, 44:
Atteberry Bell Bukta Chiodo
Cohoon Connors Cormack Dotzler
Falck Foege Ford Frevert
Garman Greimann Hatch Huser
Jochum Kreiman Kuhn Larkin
Lensing Mascher May Mertz
Murphy Myers O'Brien Osterhaus
Quirk Reynolds Richardson Scherrman
Schrader Seng Shoultz Smith
Stevens Taylor, D. Taylor, T. Tremmel
Warnstadt Winckler Wise Witt

 


The nays were, 53:
Alons Arnold Barry Baudler
Boal Boddicker Boggess Bradley
Brauns Broers Brunkhorst Carroll
De Boef Dix Dolecheck Drake
Eddie Eichhorn Elgin Finch
Grundberg Hahn Hansen Heaton
Hoffman Horbach Hoversten Huseman
Jacobs Jenkins Johnson Kettering
Klemme Larson Manternach Metcalf
Millage Raecker Rants Rayhons
Rekow Roberts Shey Siegrist, Spkr.
Sievers Sukup Teig Tymeson
Tyrrell Van Engelenhoven Van Fossen Weidman
Gipp,
Presiding

 



Absent or not voting, 3:
Fallon Houser Petersen

 


Amendment H-1415 lost.


Chiodo of Polk asked and received unanimous consent to withdraw
amendment H-1406 and amendment H-1410 to amendment H-1398
filed by him from the floor.

On motion by Jenkins of Black Hawk amendment H-1398, as
amended, was adopted.

Jenkins of Black Hawk asked and received unanimous consent to
withdraw amendment H-1399 filed by him on March 30, 2001.

Chiodo of Polk offered the following amendment H-1241 filed by
him and moved its adoption:

H-1241

1 Amend House File 577 as follows:
2 1. Page 1, line 27, by striking the word "ninety"
3 and inserting the following: "one hundred eighty".
4 2. Page 1, line 35, through page 2, line 1, by
5 striking the word "ninety-day" and inserting the
6 following: "one-hundred-eighty-day".

Roll call was requested by Murphy of Dubuque and Chiodo of Polk.

On the question "Shall amendment H-1241 be adopted?" (H.F. 577)

The ayes were, 43:
Atteberry Bell Bukta Chiodo
Cohoon Connors Cormack Dotzler
Falck Foege Ford Frevert
Garman Greimann Hatch Huser
Jochum Kreiman Kuhn Larkin
Lensing Mascher May Mertz
Murphy Myers O'Brien Osterhaus
Reynolds Richardson Scherrman Schrader
Seng Shoultz Smith Stevens
Taylor, D. Taylor, T. Tremmel Warnstadt
Winckler Wise Witt

 


The nays were, 53:
Alons Arnold Barry Baudler
Boal Boddicker Boggess Bradley
Brauns Broers Brunkhorst Carroll
De Boef Dix Drake Eddie
Eichhorn Elgin Finch Grundberg
Hahn Hansen Heaton Hoffman
Horbach Hoversten Huseman Jacobs
Jenkins Johnson Kettering Klemme
Larson Manternach Metcalf Millage
Quirk Raecker Rants Rayhons
Rekow Roberts Shey Siegrist, Spkr.
Sievers Sukup Teig Tymeson
Tyrrell Van Engelenhoven Van Fossen Weidman
Gipp,
Presiding

 


Absent or not voting, 4:
Dolecheck Fallon Houser Petersen

 


Amendment H-1241 lost.

Hatch of Polk offered the following amendment H-1270 filed by
him and moved its adoption:

H-1270

1 Amend House File 577 as follows:
2 1. Page 2, by striking lines 8 through 12 and
3 inserting the following:
4 "e. The board shall review the reasonableness and
5 prudence of the costs of a power purchase contract
6 approved under this subsection at least every twenty-
7 four months.
8 (1) If, after a contested case proceeding, the
9 board finds by a preponderance of the evidence that
10 fuel procurement costs or other contract costs are
11 imprudent, unreasonable, or excessive, the board shall
12 order a refund to affected retail customers.
13 (2) In the period between contested case
14 proceedings, the board may require a rate-regulated
15 public utility to file certain information as it deems
16 necessary to monitor power purchase contract costs.
17 The board shall adopt rules pursuant to chapter 17a to
18 administer this subparagraph."

Roll call was requested by Hatch of Polk and Myers of Johnson.

On the question "Shall amendment H-1270 be adopted?" (H.F. 577)

The ayes were, 47:
Atteberry Bell Bukta Chiodo
Cohoon Connors Cormack Dotzler
Eichhorn Falck Finch Foege
Ford Frevert Garman Greimann
Hatch Huser Jochum Kreiman
Kuhn Larkin Lensing Mascher
May Mertz Murphy Myers
O'Brien Osterhaus Quirk Reynolds
Richardson Roberts Scherrman Schrader
Seng Shoultz Smith Stevens
Taylor, D. Taylor, T. Tremmel Warnstadt
Winckler Wise Witt

 


The nays were, 50:
Alons Arnold Barry Baudler
Boal Boddicker Boggess Bradley
Brauns Broers Brunkhorst Carroll
De Boef Dix Dolecheck Drake
Eddie Elgin Grundberg Hahn
Hansen Heaton Hoffman Horbach
Hoversten Huseman Jacobs Jenkins
Johnson Kettering Klemme Larson
Manternach Metcalf Millage Raecker
Rants Rayhons Rekow Shey
Siegrist, Spkr. Sievers Sukup Teig
Tymeson Tyrrell Van Engelenhoven Van Fossen
Weidman Gipp,
Presiding

 


Absent or not voting, 3:
Fallon Houser Petersen

 


Amendment H-1270 lost.

Witt of Black Hawk offered the following amendment H-1320 filed
by him and moved its adoption:

H-1320

1 Amend House File 577 as follows:
2 1. Page 2, by striking lines 8 through 10 and
3 inserting the following:
4 "e. The board, subsequent to".
5 2. By renumbering or relettering as necessary.
Roll call was requested by Witt of Black Hawk and Schrader of
Marion.

On the question "Shall amendment H-1320 be adopted?" (H.F. 577)

The ayes were, 44:
Atteberry Bell Bukta Chiodo
Cohoon Cormack Dotzler Eichhorn
Falck Foege Ford Frevert
Garman Greimann Hatch Huser
Jochum Kreiman Kuhn Larkin
Lensing Mascher May Mertz
Murphy Myers O'Brien Osterhaus
Quirk Reynolds Richardson Scherrman
Schrader Seng Shoultz Smith
Stevens Taylor, D. Taylor, T. Tremmel
Warnstadt Winckler Wise Witt

 


The nays were, 50:
Alons Arnold Barry Baudler
Boal Boddicker Boggess Brauns
Broers Carroll De Boef Dix
Dolecheck Drake Eddie Elgin
Grundberg Hahn Hansen Heaton
Hoffman Horbach Houser Hoversten
Huseman Jacobs Jenkins Johnson
Kettering Klemme Larson Manternach
Metcalf Millage Raecker Rants
Rayhons Rekow Roberts Shey
Siegrist, Spkr. Sievers Sukup Teig
Tymeson Tyrrell Van Engelenhoven Van Fossen
Weidman Gipp,
Presiding

 


Absent or not voting, 6:
Bradley Brunkhorst Connors Fallon
Finch Petersen

 


Amendment H-1320 lost.

Chiodo of Polk asked and received unanimous consent to withdraw
amendment H-1240 filed by him on March 15, 2001.

Osterhaus of Jackson offered the following amendment H-1236
filed by him and moved its adoption:
H-1236

1 Amend House File 577 as follows:
2 1. Page 2, line 21, by inserting after the word
3 "board" the following: "and the office of the
4 consumer advocate".
5 2. Page 2, line 23, by inserting after the word
6 "board" the following: "or the consumer advocate".
7 3. Page 2, line 27, by inserting after the word
8 "board" the following: "or the consumer advocate".

Amendment H-1236 was adopted.

Osterhaus of Jackson asked and received unanimous consent to
withdraw amendment H-1237 filed by him on March 14, 2001.

Huser of Polk asked and received unanimous consent to withdraw
amendment H-1306 filed by Chiodo of Polk on March 22, 2001.

Jenkins of Black Hawk offered the following amendment H-1286
filed by him and moved its adoption:

H-1286

1 Amend House File 577 as follows:
2 1. Page 2, by striking lines 21 through 30.
3 2. Page 6, by striking lines 12 through 21.

Amendment H-1286 was adopted, placing amendment H-1234 filed
by Osterhaus of Jackson out of order.

Osterhaus of Jackson offered the following amendment H-1232
filed by him and moved its adoption:

H-1232

1 Amend House File 577 as follows:
2 1. Page 2, by inserting after line 30 the
3 following:
4 "i. This subsection does not exempt a power
5 purchase contract that is not required to be filed
6 with the board pursuant to the requirements of this
7 subsection from review and approval by the board
8 pursuant to any other applicable provision of this
9 chapter."

Roll call was requested by Osterhaus of Jackson and Myers of
Johnson.

On the question "Shall amendment H-1232 be adopted?" (H.F. 577)

The ayes were, 41:
Atteberry Bell Bukta Chiodo
Cohoon Dotzler Falck Foege
Ford Frevert Garman Greimann
Hatch Huser Jochum Kreiman
Kuhn Larkin Lensing Mascher
May Mertz Murphy O'Brien
Osterhaus Quirk Reynolds Richardson
Scherrman Schrader Seng Shoultz
Smith Stevens Taylor, D. Taylor, T.
Tremmel Warnstadt Winckler Wise
Witt

 


The nays were, 55:
Alons Arnold Barry Baudler
Boal Boddicker Boggess Bradley
Brauns Broers Brunkhorst Carroll
Cormack De Boef Dix Dolecheck
Drake Eddie Eichhorn Elgin
Finch Grundberg Hahn Hansen
Heaton Hoffman Horbach Houser
Hoversten Huseman Jacobs Jenkins
Johnson Kettering Klemme Larson
Manternach Metcalf Millage Raecker
Rants Rayhons Rekow Roberts
Shey Siegrist, Spkr. Sievers Sukup
Teig Tymeson Tyrrell Van Engelenhoven
Van Fossen Weidman Gipp,
Presiding

 


Absent or not voting, 4:
Connors Fallon Myers Petersen

 


Amendment H-1232 lost.

Jenkins of Black Hawk offered amendment H-1317 filed by him
and requested division as follows:

H-1317

1 Amend House File 577 as follows:

H-1317A

2 1. Page 4, line 21, by striking the letter "g."
3 and inserting the following: "f."

H-1317B


4 2. Page 5, line 29, by striking the word "issue"
5 and inserting the following: "issues of fuel
6 diversity, and".

H-1317A

7 3. Page 6, by inserting after line 3 the
8 following:
9 "k. Demand-side management, including energy
10 efficiency and load."

H-1317B

11 4. Page 9, line 14, by striking the words "in
12 subchapter" and inserting the following: "in this
13 subchapter".

Amendment H-1317A was placed out of order.

Jenkins of Black Hawk offered the following amendment H-1330,
to amendment H-1317B, filed by him and moved its adoption:

H-1330

1 Amend the amendment, H-1317, to House File 577 as
2 follows:
3 1. Page 1, by inserting after line 3 the
4 following:
5 " . Page 5, line 27, by inserting after the
6 word "contracts" the following: "and leases"."
7 2. By renumbering and correcting internal
8 references as necessary.

Amendment H-1330 was adopted.

Jenkins of Black Hawk offered the following amendment H-1351,
to amendment H-1317B, filed by him and moved its adoption:

H-1351

1 Amend the amendment, H-1317, to House File 577, as
2 follows:
3 1. Page 1, line 10, by inserting after the word
4 "load" the following: "management".

Amendment H-1351 was adopted.

On motion by Jenkins of Black Hawk amendment H-1317B, as

amended, was adopted.

Hatch of Polk asked and received unanimous consent to withdraw
amendment H-1271 filed by him on March 20, 2001.

Hatch of Polk offered amendment H-1275 filed by him as follows:

H-1275

1 Amend House File 577 as follows:
2 1. Page 4, by inserting after line 35 the
3 following:
4 "Sec. . Section 476.20, Code 2001, is amended
5 to read as follows:
6 476.20 DISCONNECTION LIMITED - NOTICE -
7 MORATORIUM - DEPOSITS.
8 1. a utility shall not, except in cases of
9 emergency, discontinue, reduce, or impair service to a
10 community, or a part of a community, except for
11 nonpayment of account or violation of rules and
12 regulations, unless and until permission to do so is
13 obtained from the board.
14 2. a. The board shall establish rules requiring a
15 regulated public utility furnishing gas or electricity
16 to include in the utility's notice of pending
17 disconnection of service a written statement advising
18 the customer that the customer may be eligible to
19 participate in the low income home energy assistance
20 program or weatherization assistance program
21 administered by the division of community action
22 agencies of the department of human rights.
23 b. The written statement shall list include the
24 following information:
25 (1) The address and telephone number of the local
26 agency which that is administering the customer's low
27 income home energy assistance program and the
28 weatherization assistance program. The written
29 statement shall also state
30 (2) a statement that the customer is advised to
31 contact the public utility to settle any of the
32 customer's complaints with the public utility, but if
33 a complaint is not settled to the customer's
34 satisfaction, the customer may file the do either of
35 the following:
36 (a) Pursue arbitration with the public utility
37 regarding a deposit or a disconnection from service,
38 as described in subsection 6.
39 (b) File a complaint with the board. The written
40 statement shall include the
41 (3) The address and phone number of the board.

42 (4) If the notice of pending disconnection of
43 service applies to a residence, the written statement
44 shall advise that the disconnection does not apply
45 from November 1 through April June 1 for a resident
46 who is a "head of household", as defined by law, and
47 who has been certified to the public utility by the
48 local agency which is administering the low income
49 home energy assistance program and weatherization
50 assistance program as being eligible for either the

Page 2

1 low income home energy assistance program or
2 weatherization assistance program, and that if such a
3 resident resides within the serviced residence, the
4 customer should promptly have the qualifying resident
5 notify the local agency which is administering the low
6 income home energy assistance program and
7 weatherization assistance program if the customer
8 meets the conditions described in subsection 3,
9 paragraph "a", subparagraph (1) or (2).
10 c. The board shall establish rules requiring that
11 the written notice contain additional information as
12 it deems necessary and appropriate.
13 3. The board shall establish rules which shall be
14 uniform with respect to all public utilities
15 furnishing gas or electricity relating to
16 disconnection of service.
17 PARAGRAPH DIVIDED. This subsection section applies
18 both to regulated utilities and to municipally owned
19 utilities and unincorporated villages which that own
20 their own distribution systems, and violations of this
21 subsection subject the utilities to civil penalties
22 under section 476.51.
23 a qualified applicant for the low income home
24 energy assistance program or the weatherization
25 assistance program who is also a "head of household",
26 as defined in section 422.4, subsection 7, shall be
27 promptly certified by the local agency administering
28 the applicant's program to the applicant's public
29 utility that the resident is a "head of household" as
30 defined in section 422.4, subsection 7, and is
31 qualified for the low income home energy assistance
32 program or weatherization assistance program.
33 Notwithstanding subsection 1, a
34 a. a public utility furnishing gas or electricity
35 shall not disconnect service from November 1 through
36 April June 1 to a residence which has a resident that
37 has been certified under this paragraph., provided
38 that one of the following conditions is satisfied:
39 (1) The customer currently is, or has been, a
40 participant in any state or federal assistance program

41 at any time during the previous twelve months, or
42 whose projected adjusted gross income due to a
43 demonstrated change in economic circumstances would
44 make the customer eligible for state or federal
45 assistance.
46 (2) The customer pays the lesser of a minimum of
47 fifty percent of the current monthly payment, or three
48 hundred dollars, for service during the months of
49 November through May, provided that the board finds
50 that public utility bills have or are likely to

Page 3

1 substantially increase due to causes other than
2 increased consumption due to weather conditions.
3 b. a public utility furnishing gas or electricity
4 from November 1 through June 1 to a residential
5 customer meeting the conditions under either
6 subparagraph (1) or (2) of paragraph "a" shall also
7 waive any late charge or penalty on gas or electric
8 utility bills covering service provided during the
9 period from November 1 through June 1.
10 c. a customer with a disability or medical need
11 requiring environmental control or assistive medical
12 devices shall be eligible for exemption from
13 disconnection, provided that all of the following
14 conditions are satisfied:
15 (1) (a) The customer applies to the board on an
16 application form furnished by the board providing the
17 applicant's name, address, date of birth, and social
18 security number and shall also provide a statement
19 from a physician licensed under chapter 148, 149, 150,
20 or 150A, a physician assistant licensed under chapter
21 148C, an advanced registered nurse practitioner
22 licensed under chapter 152, or a chiropractor licensed
23 under chapter 151, or a physician, physician
24 assistant, nurse practitioner, or chiropractor
25 licensed to practice in a contiguous state, written on
26 the physician's, physician assistant's, nurse
27 practitioner's, or chiropractor's stationery, stating
28 the nature of the applicant's disability or medical
29 need and such additional information as required by
30 rules adopted by the utilities board. The
31 physician's, physician assistant's, nurse
32 practitioner's, or chiropractor's statement shall
33 state the period of time during which the person is
34 expected to be disabled or the medical need is
35 expected to exist.
36 (b) Any person providing false information with
37 the intent to defraud on the application for an
38 exemption under this paragraph "c" is subject to a
39 civil penalty of one thousand dollars that may be

40 imposed by the utilities board, for deposit in the
41 energy assistance fund created in section 476.20a and
42 used for arbitration services pursuant to subsection
43 6.
44 (c) a physician, physician assistant, nurse
45 practitioner, or chiropractor who provides false
46 information with the intent to defraud on the
47 physician's, physician assistant's, nurse
48 practitioner's, or chiropractor's statement used in
49 establishing proof is subject to a civil penalty of
50 one thousand dollars that may be imposed by the

Page 4

1 utilities board, for deposit in the energy assistance
2 fund created in section 476.20a and used for
3 arbitration services pursuant to subsection 6. In
4 addition to the civil penalty, the department shall
5 revoke the exemption issued pursuant to this
6 subsection, and allow the public utility to impose all
7 applicable late fees and charges.
8 (2) During the time that the disability or medical
9 need requiring the environmental control or assistive
10 medical device is in existence, the customer makes a
11 good faith effort to pay the customer's utility bill
12 and any outstanding balance, according to the
13 standards for payments reflecting income guidelines
14 established by rule by the utilities board. If the
15 customer does not meet the payment guidelines for two
16 consecutive months, either the public utility or the
17 customer may request that a new individual payment be
18 established, subject to arbitration if necessary.
19 3A. a. It is the intent of the general assembly
20 that the board review the metering and billing
21 practices of the utilities, and the related rules, on
22 a regular basis. Meter reading should be performed
23 frequently for more accurate customer billing.
24 b. If a utility estimates a meter reading, the
25 next monthly bill must accurately reflect the actual
26 dates and changes in fuel prices and temperatures
27 during the estimated month. The utility shall not
28 apply its highest cost, or an average cost, of fuel
29 for the estimated month.
30 4. a public utility which that violates a
31 provision of this section relating to the
32 disconnection of service or which that violates a rule
33 of the board relating to disconnection of service is
34 subject to civil penalties imposed by the board under
35 section 476.51.
36 5. The board shall establish rules which shall be
37 uniform with respect to all public utilities
38 furnishing gas or electricity relating to deposits

39 which that may be required by the public utility for
40 the initiation or reinstatement of service.
41 a. The deposit for a residential or commercial
42 customer for a place which has previously received
43 service shall not be greater than the highest billing
44 of service for one month for the place in the previous
45 twelve-month period two hundred dollars.
46 b. The deposit for a residential or a commercial
47 customer for a place which has not previously received
48 service or for an industrial customer shall be one-
49 half of the customer's projected one month's usage for
50 the place to be serviced as determined by the public

Page 5

1 utility according to rules established by the board.
2 c. This subsection does not prohibit a public
3 utility from requiring payment of a customer's past
4 due account with the utility prior to reinstatement of
5 service; however, a customer can appeal this decision
6 and require arbitration pursuant to subsection 6.
7 d. The rules shall allow a person other than the
8 customer to pay the customer's deposit. Upon
9 termination of service to such a customer, the deposit
10 plus accumulated interest less any unpaid utility bill
11 of the customer, shall be reimbursed to the person who
12 made the deposit.
13 6. Arbitration services shall be available for
14 customers who cannot meet the payment guidelines
15 established by rule under subsection 3, or who appeal
16 a determination of a public utility under subsection
17 5.
18 a. The arbitration services shall be provided to
19 the fullest extent possible by nonprofit organizations
20 providing such services, and shall be supplemented as
21 necessary by services provided with funds from the
22 energy assistance fund created in section 476.20A.
23 b. Public utilities shall notify customers that
24 they have the right to proceed to binding arbitration
25 with the public utility, if direct negotiation in
26 resolving payment or deposit disputes with the public
27 utility is unsuccessful.
28 c. The parties shall accept an arbitrator's
29 decision as binding. The customer shall make the
30 payment according to the terms of the decision, and
31 the public utility shall accept the payment as payment
32 in full from the customer.
33 d. The board shall adopt rules pursuant to chapter
34 17a to implement the arbitration process.
35 Sec. . NEW SECTION. 476.20a ENERGY ASSISTANCE
36 FUND.
37 1. An energy assistance fund is created in the

38 state treasury. Moneys deposited in the fund shall be
39 used as follows:
40 a. For arbitration services under section 476.20.
41 b. To increase energy efficiency and
42 weatherization.
43 c. To support research for and the use of emerging
44 energy technology.
45 2. The energy assistance fund may receive moneys
46 including, but not limited to, the following:
47 a. Moneys appropriated by the general assembly for
48 the fund.
49 b. Moneys credited to the fund under section
50 476.20.

Page 6

1 c. Contributions from customer utility bills under
2 subsection 3.
3 d. Any other moneys available to, obtained, or
4 accepted by the board for placement in the fund.
5 3. Each utility shall periodically notify its
6 customers of the availability and purpose of the fund
7 and provide them with forms on which they can
8 authorize the utility to bill a contribution to the
9 fund on a monthly basis. The board shall adopt rules
10 pursuant to chapter 17a regarding such contributions.
11 4. Notwithstanding section 12C.7, subsection 2,
12 interest or earnings on moneys deposited in the energy
13 assistance fund shall be credited to the fund.
14 Notwithstanding section 8.33, moneys remaining in the
15 energy assistance fund at the end of a fiscal year
16 shall not revert to the general fund of the state."
17 2. By renumbering as necessary.

Jenkins of Black Hawk rose on a point of order that amendment H-
1275 was not germane.

The Speaker ruled the point well taken and amendment H-1275
not germane.
Hatch of Polk asked for unanimous consent to suspend the rules to
consider amendment H-1275.

Objection was raised.

Hatch of Polk moved to suspend the rules to consider amendment
H-1275.

A non-record roll call was requested.

The ayes were 41, nays 53.

The motion to suspend the rules lost.

Witt of Black Hawk offered the following amendment H-1322 filed
by him and moved its adoption:

H-1322

1 Amend House File 577 as follows:
2 1. Page 4, by inserting after line 35 the
3 following:
4 "Sec. . Section 476.8, Code 2001, is amended to
5 read as follows:
6 476.8 UTILITY CHARGES AND SERVICE.
7 1. Every public utility is required to furnish
8 reasonably adequate service and facilities.
9 a. "Reasonably adequate service and facilities"
10 for public utilities furnishing gas or electricity
11 includes programs for customers to encourage the use
12 of energy efficiency and renewable energy sources.
13 b. The charge made by any public utility for any
14 heat, light, gas, energy efficiency and renewable
15 energy programs, water or power produced, transmitted,
16 delivered or furnished, or communications services, or
17 for any service rendered or to be rendered in
18 connection therewith with such service shall be
19 reasonable and just, and every unjust or unreasonable
20 charge for such service is prohibited and declared
21 unlawful. In determining reasonable and just rates,
22 the board shall consider all factors relating to value
23 and shall not be bound by rate base decisions or
24 rulings made prior to the adoption of this chapter.
25 2. The board shall have the authority to order a
26 rate-regulated public utility to construct an electric
27 generating facility, transmission facility, or both,
28 as necessary to ensure continued electric reliability,
29 and to maintain reasonably adequate, reliable, safe,
30 and cost-efficient electric service to Iowa consumers.
31 The prudent and reasonable costs incurred to construct
32 and operate such generating facility or transmission
33 facility shall be included in the determination of the
34 rates of the rate-regulated public utility.
35 3. The board, in determining the value of
36 materials or services to be included in valuations or
37 costs of operations for rate-making purposes, may
38 disallow any unreasonable profit made in the sale of
39 materials to or services supplied for any public
40 utility by any firm or corporation owned or controlled

41 directly or indirectly by such utility or any
42 affiliate, subsidiary, parent company, associate or
43 any corporation whose controlling stockholders are
44 also controlling stockholders of such utility. The
45 burden of proof shall be on the public utility to
46 prove that no unreasonable profit is made."
47 2. Title page, line 3, by inserting after the
48 word "facility;" the following: "providing authority
49 for the utilities board to order the construction of a
50 generation or transmission facility;".

Page 2

1 3. By renumbering as necessary.

Amendment H-1322 lost.

Osterhaus of Jackson offered the following amendment H-1233
filed by him and moved its adoption:

H-1233

1 Amend House File 577 as follows:
2 1. Page 5, line 32, by inserting after the word
3 "grid" the following: ", including the need for
4 transmission facilities to ensure Iowans' access to
5 power generated in other states".

Amendment H-1233 was adopted.

Jenkins of Black Hawk asked and received unanimous consent to
withdraw amendment H-1397 filed by him on March 30, 2001,
placing amendment H-1401 filed by Jenkins of Black Hawk from the
floor, amendments H-1407 and H-1411 filed by Chiodo of Polk from
the floor, out of order.

Schrader of Marion offered the following amendment H-1243 filed
by him and moved its adoption:

H-1243

1 Amend House File 577 as follows:
2 1. Page 6, by striking lines 29 and 30 and
3 inserting the following: "construction of the
4 facility are required by the present or future public
5 convenience, use and necessity and are compatible
6 with".

Dix of Butler in the chair at 10:11 p.m.

Roll call was requested by Schrader of Marion and Osterhaus of
Jackson.

On the question "Shall amendment H-1243 be adopted?" (H.F. 577)

The ayes were, 44:
Atteberry Bell Bukta Chiodo
Cohoon Cormack Dotzler Falck
Fallon Foege Ford Frevert
Garman Greimann Hatch Huser
Jochum Kreiman Kuhn Larkin
Lensing Mascher May Mertz
Murphy Myers O'Brien Osterhaus
Quirk Reynolds Richardson Scherrman
Schrader Seng Shoultz Smith
Stevens Taylor, D. Taylor, T. Tremmel
Warnstadt Winckler Wise Witt

 


The nays were, 54:
Alons Arnold Barry Baudler
Boal Boddicker Boggess Bradley
Brauns Broers Brunkhorst Carroll
De Boef Dolecheck Drake Eddie
Eichhorn Elgin Finch Gipp
Grundberg Hahn Hansen Heaton
Hoffman Horbach Houser Hoversten
Huseman Jacobs Jenkins Johnson
Kettering Klemme Larson Manternach
Metcalf Millage Raecker Rants
Rayhons Rekow Roberts Shey
Siegrist, Spkr. Sievers Sukup Teig

 


Tymeson Tyrrell Van Engelenhoven Van Fossen
Weidman Dix,
Presiding

Absent or not voting, 2:
Connors Petersen

 


Amendment H-1243 lost.

Warnstadt of Woodbury asked and received unanimous consent to
withdraw amendment H-1321 filed by Witt of Black Hawk on March

22, 2001.

Kettering of Sac offered the following amendment H-1256 filed by
Kettering, et al., and moved its adoption:

H-1256

1 Amend House File 577 as follows:
2 1. Page 9, line 29, by inserting after the word
3 "project" the following: ", including the
4 acquisition, construction, or acquisition of any
5 interest in an electric power generating plant to be
6 constructed in this state, or the acquisition,
7 construction, or acquisition of any interest in a
8 transmission line or system".
9 2. Page 10, line 7, by striking the word
10 "transmission".
11 3. Page 10, by striking lines 23 through 26.
12 4. By renumbering as necessary.

Amendment H-1256 was adopted.

Wise of Lee asked and received unanimous consent to withdraw
amendment H-1239 filed by Wise, et al., on March 15, 2001.

Osterhaus of Jackson offered the following amendment H-1235
filed by him and moved its adoption:

H-1235

1 Amend House File 577 as follows:
2 1. Page 10, by striking lines 6 through 33 and
3 inserting the following:
4 "2. Notwithstanding anything in this subchapter or
5 chapter 28F to the contrary, an electric power
6 facility shall not be financed with the proceeds of
7 public bonds or obligations, the interest on which is
8 exempt from federal income tax, unless the public
9 issuer shall comply with the requirements or
10 limitations imposed by the Internal Revenue Code or
11 other applicable federal law to preserve the tax
12 exemption of interest payable on the bonds or
13 obligations."

Amendment H-1235 lost.

Hansen of Pottawattamie asked and received unanimous consent
to withdraw amendments H-1257 and H-1272 filed by him and

Jenkins of Black Hawk on March 20, 2001.

Witt of Black Hawk offered the following amendment H-1319 filed
by him and moved its adoption:

H-1319

1 Amend House File 577 as follows:
2 1. Page 17, by striking lines 19 through 23.

Amendment H-1319 lost.

Jenkins of Black Hawk moved that the bill be read a last time now
and placed upon its passage which motion prevailed and the bill was
read a last time.

On the question "Shall the bill pass?" (H.F. 577)

The ayes were, 54:
Alons Barry Baudler Boal
Boddicker Boggess Bradley Brauns
Broers Brunkhorst Carroll De Boef
Dolecheck Drake Eddie Eichhorn
Elgin Finch Gipp Grundberg
Hahn Hansen Heaton Hoffman
Horbach Houser Hoversten Huseman
Jacobs Jenkins Johnson Kettering
Klemme Larson Manternach Mertz
Metcalf Millage Raecker Rants
Rayhons Rekow Roberts Shey
Siegrist, Spkr. Sievers Sukup Teig
Tymeson Tyrrell Van Engelenhoven Van Fossen
Weidman Dix,
Presiding

 


The nays were, 44:
Arnold Atteberry Bell Bukta
Chiodo Cohoon Cormack Dotzler
Falck Fallon Foege Ford
Frevert Garman Greimann Hatch
Huser Jochum Kreiman Kuhn
Larkin Lensing Mascher May
Murphy Myers O'Brien Osterhaus
Quirk Reynolds Richardson Scherrman
Schrader Seng Shoultz Smith
Stevens Taylor, D. Taylor, T. Tremmel
Warnstadt Winckler Wise Witt

 


Absent or not voting, 2:
Connors Petersen

 


The bill having received a constitutional majority was declared to
have passed the House and the title, as amended, was agreed to.

IMMEDIATE MESSAGE

Rants of Woodbury asked and received unanimous consent that
House File 577 be immediately messaged to the Senate.

MESSAGES FROM THE SENATE

The following messages were received from the Senate:

Mr. Speaker: I am directed to inform your honorable body that the Senate has on
April 2, 2001, adopted the following resolution in which the concurrence of the Senate
was asked:

House Joint Resolution 5, a joint resolution to nullify an administrative rule of the
department of revenue and finance relating to the collection of a fee to recover direct
costs in the administration of a local option sales and services tax and providing an
effective date.

Also: That the Senate has on April 2, 2001, adopted the following resolution in
which the concurrence of the Senate was asked:

House Concurrent Resolution 8, a concurrent resolution honoring Herb Plambeck.

Also: That the Senate has on April 2, 2001, adopted the following resolution in
which the concurrence of the Senate was asked:

House Concurrent Resolution 9, a concurrent resolution to request that the
Congress of the United States maintain its commitment to clean air and the ethanol
industry, by maintaining the oxygenate requirement in the federal Clean Air Act that
promotes the use of ethanol in reformulated gasoline, and urging the United States
Environmental Protection Agency to resist California's attempt to waive the oxygenate
requirement in that state.

Also: That the Senate has on April 2, 2001, adopted the following resolution in
which the concurrence of the Senate was asked:

House Concurrent Resolution 13, a concurrent resolution relating to a biennial
memorial session.

Also: That the Senate has on April 2, 2001, adopted the following resolution in
which the concurrence of the Senate was asked:

House Concurrent Resolution 14, a concurrent resolution relating to Pioneer
Lawmakers.

Also: That the Senate has on April 2, 2001, passed the following bill in which the
concurrence of the House is asked:

Senate File 336, a bill for an act relating to the authority of the state board of
educational examiners to develop a code of professional rights and responsibilities,
practices, and ethics for practitioners.

Also: That the Senate has on April 2, 2001, passed the following bill in which the
concurrence of the House is asked:

Senate File 429, a bill for an act relating to price regulation for local exchange
carriers, by changing certain definitions related to price regulation, permitting certain
rate increases, requiring certain network infrastructure investments, and making
related changes.

Also: That the Senate has on April 2, 2001, passed the following bill in which the
concurrence of the House is asked:

Senate File 494, a bill for an act relating to disputes in mediation involving
agricultural operations.

Also: That the Senate has on April 2, 2001, passed the following bill in which the
concurrence of the House is asked:

Senate File 503, a bill for an act relating to the construction of facilities or
installation of practices related to open feedlot manure control, and providing an
effective date.

MICHAEL E. MARSHALL, Secretary

BILLS ENROLLED, SIGNED AND SENT TO GOVERNOR

The Chief Clerk of the House submitted the following report:

Mr. Speaker: The Chief Clerk of the House respectfully reports that the following
bills have been examined and found correctly enrolled, signed by the Speaker of the
House and the President of the Senate, and presented to the Governor for his approval
on this 2nd day of April, 2001: House Files 89, 194 and 549.

MARGARET A. THOMSON
Chief Clerk of the House

Report adopted.

BILLS SIGNED BY THE GOVERNOR

A communication was received from the Governor announcing that
on March 30, 2001, he approved and transmitted to the Secretary of
State the following bills:

House File 179, an act relating to excluding from confinement dogs used by police or
correctional officers.

House File 228, an act relating to the duties of the department of public safety.

House File 269, an act relating to balloon payments on consumer loans secured by a
certificate of title in a motor vehicle.

House File 470, an act providing for the protection of proprietary rights and
collection of fees for software, network designs, and technology applications of the Iowa
communications network.

House File 597, an act relating to the disposition of unclaimed deer venison
processed by a meat and poultry processing establishment.

Senate File 146, an act relating to the tobacco master settlement agreement and
providing an effective date.

Senate File 509, an act making a supplemental appropriation to the state
department of transportation from the primary road fund for the purchase of salt and
including an effective date.

GOVERNOR'S VETO MESSAGE

A copy of the following communication was received and placed on
file:

March 30, 2001

The Honorable Mary Kramer
President of the Senate

State Capitol Building
L O C A L

Dear President Kramer:

I hereby transmit Senate File 66, an Act relating to state general fund expenditure
limitation requirements for transmission of the state budget by the Governor and
passage of the state budget by the General Assembly.

I am unable to approve Senate File 66. This bill makes changes to the state
expenditure limitation even though the present limitation accomplishes the purposes

for which it was created. This is an unnecessary and, in some instances, unworkable
revision to Iowa's original budget reform legislation.

A key part of Iowa's 1992 budget reform law was creating a mechanism for filling
the state's two reserve funds. One of those reserve funds, the economic emergency
fund, pre-dated the 1992 changes, but it had never been adequately maintained. The
expenditure limitation, which provides that only 99% of estimated revenues may be
spent, created a mechanism for filling those reserve funds.

That original expenditure limitation has worked very well. Both of the state's
reserves are filled to their statutory maximum. Combined, they contain nearly half a
billion dollars. Given that the present law has worked so well, there is no reason for
change.

Senate File 66 would change that original expenditure limitation by stipulating
that reversions (which are appropriated but unspent funds) not be considered in
calculating the expenditure limitation. This is an unnecessary alteration of the
expenditure limitation.

Every year, there are appropriated but unspent funds that are returned to the state
general fund at the end of the fiscal year. The expenditure limitation is meant to limit
expenditures. Reversions are, by their very nature, not expenditures.

Reversions are a very real aspect of budgeting, and it makes little sense to not
recognize that fact. According to the legislative fiscal bureau, over the last twenty
years reversions have averaged over $26 million a year.

Senate File 66 flies in the face of the legislature's own practice. The $26 million in
average unspent funds each year would be higher but for the fact that the legislature
has often chosen to fund technology projects with reversions. The state's successful
Y2K effort was started with a legislative appropriation of $15 million of anticipated
reversions in FY 1997. It makes no sense to assume that reversions will not exist for
the purpose of calculating the expenditure limit but then assume that they will exist
for purposes of making technology appropriations.

Iowa's 1992 budget reform effort has been successful because it was a workable
approach to limiting spending. This new limitation would also remove needed
flexibility in the budgeting process.

I have, for example, recommended salary savings in the FY 2002 budget through
workforce attrition. It is not possible to determine at this point exactly where this $4.3
million savings will be achieved; that will depend on which employees leave state
government over the course of that fiscal year. As a consequence, that savings is shown
as a reversion. To not reflect that savings in the calculation of the expenditure limit
takes away many of the tools that are necessary to make enterprise wide decisions
about expenditures.

For the above reasons, I hereby respectfully disapprove Senate File 66.

Sincerely,
Thomas J. Vilsack
Governor

COMMUNICATIONS RECEIVED

The following communications were received and filed in the office
of the Chief Clerk:

IOWA DEPARTMENT OF PUBLIC HEALTH

A report concerning organized delivery systems in Iowa, pursuant to Chapter 158,
1993 Acts of the Seventy-fifth General Assembly.

Center for Health Statistics

A report concerning vital statistics of 1999, pursuant to Chapter 144.5(5), Code of
Iowa.

The 2000 Iowa Termination of Pregnancy Report, pursuant to Chapter 144.29A,
Code of Iowa.

CERTIFICATES OF RECOGNITION

MR. SPEAKER: The Chief Clerk of the House respectfully reports
that certificates of recognition have been issued as follows.

MARGARET A. THOMSON
Chief Clerk of the House

2001\748 Hazel Lapel, Denison - For celebrating her 90th birthday.

2001\749 Mabel Luth, Denison - For celebrating her 80th birthday.

2001\750 Ruth Ann Lynn, Mapleton - For celebrating her 80th birthday.

2001\751 Norma Neldeberg, Whiting - For celebrating her 80th birthday.

2001\752 Myrlin Hansman, Westside - For celebrating his 85th birthday.

2001\753 Violet Atwood, Whiting - For celebrating her 100th birthday.
2001\754 Mr. and Mrs. Ted Gollobit, Manilla - For celebrating their 50th wedding
anniversary.

2001\755 Richard and Shirley Swanson, Manilla - For celebrating their 50th
wedding anniversary.

2001\756 Wallace and Eileen Auen, Schleswig - For celebrating their 50th
wedding anniversary.

2001\757 John and Dorothy Zediker, Mapleton - For celebrating their 50th
wedding anniversary.

2001\758 Meryllis and Bud Demitroff, Lehigh - For celebrating their 56th
wedding anniversary.

2001\759 Ellen and James McMahon, Waterloo - For celebrating their 50th
wedding anniversary.

2001\760 Willard Dale, Evansdale - For celebrating his 85th birthday.

2001\761 Isadore Mary Phillips, Waterloo - For celebrating her 90th birthday.

2001\762 Elizabeth and Henry Vierkant, Mason City - For celebrating their 60th
wedding anniversary.

2001\763 Hazel King, Mason City - For celebrating her 80th birthday.

2001\764 Leola and Hart Johnson, Mason City - For celebrating their 50th
wedding anniversary.

2001\765 Mary Posey, Mason City - For celebrating her 90th birthday.

2001\766 Gerald Peterson, Mason City - For celebrating his 80th birthday.

2001\767 Edna and Corrie Ehlert, Woodbine - For celebrating their 60th wedding
anniversary.

2001\768 Georgianna Shannon, Missouri Valley - For celebrating her 80th
birthday.

2001\769 Ferna Vanderhayden, La Porte City - For celebrating her 90th
birthday.

2001\770 Pat and Bert Hansen, Vinton - For celebrating their 50th wedding
anniversary.

2001\771 Blanche Rebik, Traer - For celebrating her 90th birthday.

2001\772 Henrietta Michael, Vinton - For celebrating her 90th birthday.

2001\773 Adam Noelck, Boone - For attaining the rank of Eagle Scout, the
highest rank in the Boy Scouts of America.
2001\774 Justin Appenzeller, Boone - For attaining the rank of Eagle Scout, the
highest rank in the Boy Scouts of America.

2001\775 Elmer Spoo, Gruver - For celebrating his 90th birthday.

2001\776 Myron and Helen Guge, Estherville - For celebrating their 65th
wedding anniversary.

2001\777 Adeline and Marvin Dagel, Lake Park - For celebrating their 50th
wedding anniversary.


2001\778 Mildred Johnston, Waterloo - For celebrating her 80th birthday.

2001\779 John Jacobsen, Waterloo - For celebrating his 97th birthday.

2001\780 Lillian Phillips, Elk Run Heights - For celebrating her 80th birthday.

2001\781 Lorraine and Robert Reeves, Waterloo - For celebrating their 50th
wedding anniversary.

SUBCOMMITTEE ASSIGNMENTS

House File 704

Ways and Means: Teig, Chair; Frevert and Sievers.

House File 709

Appropriations: Brunkhorst, Chair; Jacobs and Murphy.

Senate File 392

Judiciary: Broers, Chair; Barry and Jochum.

Senate File 452

Commerce and Regulation: Metcalf, Chair; Hoffman and Osterhaus.

Senate File 473

Commerce and Regulation: Hoffman, Chair; Johnson and Wise.

AMENDMENTS FILED

H-1404 H.F. 582 Houser of Pottawattamie
H-1408 H.F. 646 Raecker of Polk
Grundberg of Polk
Kreiman of Davis
H-1409 S.F. 84 Baudler of Adair
Frevert of Palo Alto
H-1412 S.F. 355 Tremmel of Wapello
Barry of Harrison Atteberry of Delaware
Boal of Polk Reynolds of Van Buren
Tymeson of Madison Boddicker of Cedar
Smith of Marshall Broers of Cerro Gordo
Kreiman of Davis Hoversten of Woodbury
Roberts of Carroll
H-1413 H.F. 582 Houser of Pottawattamie
H-1414 H.F. 116 Atteberry of Delaware

H-1416 H.F. 593 Barry of Harrison
H-1417 H.F. 382 Reynolds of Van Buren
H-1418 H.F. 116 Tremmel of Wapello
H-1419 H.F. 116 Boddicker of Cedar
H-1420 H.F. 116 Foege of Linn

On motion by Rants of Woodbury the House adjourned at 11:30
p.m., until 8:45 a.m., Tuesday, April 3, 2001.


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Senate Journal: Index House Journal: Index
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