Text: SF02243 Text: SF02245 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 SENATE FILE 2244 1 2 1 3 AN ACT 1 4 RELATING TO MUNICIPAL UTILITIES THAT PROVIDE TELE- 1 5 COMMUNICATIONS SERVICES, INCLUDING THE EXAMINATION 1 6 AND CONFIDENTIALITY OF CERTAIN ACCOUNTING RECORDS. 1 7 1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 9 1 10 Section 1. Section 11.6, subsection 1, paragraph a, 1 11 unnumbered paragraph 1, Code 2003, is amended to read as 1 12 follows: 1 13 The financial condition and transactions of all cities and 1 14 city offices, counties, county hospitals organized under 1 15 chapters 347 and 347A, memorial hospitals organized under 1 16 chapter 37, entities organized under chapter 28E having gross 1 17 receipts in excess of one hundred thousand dollars in a fiscal 1 18 year, merged areas, area education agencies, and all school 1 19 offices in school districts, shall be examined at least once 1 20 each year, except that cities having a population of seven 1 21 hundred or more but less than two thousand shall be examined 1 22 at least once every four years, and cities having a population 1 23 of less than seven hundred may be examined as otherwise 1 24 provided in this section. The examination shall cover the 1 25 fiscal year next preceding the year in which the audit is 1 26 conducted. The examination of school offices shall include an 1 27 audit of all school funds, the certified annual financial 1 28 report, and the certified enrollment as provided in section 1 29 257.6. Differences in certified enrollment shall be reported 1 30 to the department of management. The examination of a city 1 31 that owns or operates a municipal utility providing 1 32 telecommunications services pursuant to section 388.10 shall 1 33 include an audit of the city's compliance with section 388.10. 1 34 Sec. 2. Section 388.10, Code 2003, is amended to read as 1 35 follows: 2 1 388.10 MUNICIPAL UTILITY PROVIDINGLOCAL EXCHANGE2 2 TELECOMMUNICATIONS SERVICES. 2 3 1. a. A city that owns or operates a municipal utility 2 4 providinglocal exchangetelecommunications servicespursuant2 5to chapter 476orthesuch a municipal utility shall not do, 2 6 directly or indirectly, any of the following: 2 7 (1) Use general fund moneys for the ongoing support or 2 8 subsidy of a telecommunications system. 2 9 (2) Provide any city facilities, equipment, or services to 2 10 provide telecommunications systems or services at a cost for 2 11 such facilities, equipment, or services which is less than the 2 12 reasonable cost of providing such city facilities, equipment, 2 13 or services. 2 14 (3) Provide any other city service, other than a 2 15 communications service, to a telecommunications customer at a 2 16 cost which is less than would be paid by the same person 2 17 receiving such other city service if the person was not a 2 18 telecommunications customer. 2 19 (4) Use funds or revenue generated from electric, gas, 2 20 water, sewage, or garbage services provided by the city for 2 21 the ongoing support ofthat portion of a system or service2 22used to provide local exchange servicesany city 2 23 telecommunications system. 2 24 b. For purposes of this section, "telecommunications: 2 25 (1) "Telecommunications system" meansonly that portion of2 26 a systemor facilities which is used to provide local exchange2 27 that provides telecommunications services. 2 28 (2) "Telecommunications services" means the retail 2 29 provision of any of the following services: 2 30 (a) Local exchange telephone services. 2 31 (b) Long distance telephone services. 2 32 (c) Internet access services. 2 33 (d) Cable television services. 2 34 2. A city that owns or operates a municipal utility 2 35 providinglocal exchangetelecommunications servicespursuant3 1to chapter 476orthesuch a municipal utility shall do the 3 2 following: 3 3 a. Prepare and maintain records which record the full cost 3 4 accounting of providinglocal exchange service3 5 telecommunications services. The records shall show the 3 6 amount and source of capital for initial construction or 3 7 acquisition of thelocal exchangetelecommunications system or 3 8 facilities. The records shall be public records subject to 3 9 the requirements of chapter 22. Information in the records 3 10 that is not subject to examination or copying as provided in 3 11 section 388.9, subsection 2, may be expunged from the records 3 12 prior to public disclosure. This section shall not prohibit a 3 13 municipal utility from utilizing capital from any lawful 3 14 source, provided that the reasonable cost of such capital is 3 15 accounted for as a cost of providing the service. In 3 16 accounting for the cost of use of any city employees, 3 17 facilities, equipment, or services, a city or municipal 3 18 utility may make a reasonable allocation of the cost of use of 3 19 any city employees, facilities, equipment, or services used by 3 20 the municipal utility based upon reasonable criteria for the 3 21 distribution of the cost of use in any manner which is not 3 22 inconsistent with generally accepted accounting principles. 3 23 b. Adopt rates for the provision oflocal exchange3 24 telecommunications services that reflect the actual cost of 3 25 providing thelocal exchange servicetelecommunications 3 26 services. However, this paragraph shall not prohibit the 3 27 municipal utility from establishing market-based prices for 3 28 competitivelocal exchangetelecommunications services. 3 29 c. Be subject to all requirements of the city which would 3 30 apply to any other provider oflocal exchange3 31 telecommunications services in the same manner as such 3 32 requirements would apply to such other provider. For purposes 3 33 of cable television services, a city that is in compliance 3 34 with section 364.3, subsection 7, shall be considered in 3 35 compliance with this paragraph. 4 1 d. Make an annual certification of compliance with this 4 2 section. For any year in which the city or municipal utility 4 3 is not audited in accordance with section 11.6, the city or 4 4 municipal utility shall contract with or employ the auditor of 4 5 state or a certified public accountant certified in the state 4 6 of Iowa to attest to the certification. The attestation 4 7 report shall be a public record for purposes of chapter 22. 4 8 3. This section shall not prohibit the marketing or 4 9 bundling of other products or services, in addition tolocal4 10exchangetelecommunications services. However, a city shall 4 11 include on a billing statement sent to a person receiving 4 12 services from the city, a separate charge for each service 4 13 provided to the person. This subsection does not prohibit the 4 14 city from also including on the billing statement a total 4 15 amount to be paid by the person. 4 16 4. This section shall not apply to telecommunications 4 17 services provided directly by a municipal airport. 4 18 Sec. 3. VALIDITY OF ACTIONS. Except for an action that 4 19 violates section 364.3, subsection 7, actions taken prior to 4 20 July 1, 2004, by a city or municipal utility regarding the 4 21 provision of cable, internet, or long distance service 4 22 including financing are deemed valid. 4 23 4 24 4 25 4 26 JEFFREY M. LAMBERTI 4 27 President of the Senate 4 28 4 29 4 30 4 31 CHRISTOPHER C. RANTS 4 32 Speaker of the House 4 33 4 34 I hereby certify that this bill originated in the Senate and 4 35 is known as Senate File 2244, Eightieth General Assembly. 5 1 5 2 5 3 5 4 MICHAEL E. MARSHALL 5 5 Secretary of the Senate 5 6 Approved , 2004 5 7 5 8 5 9 5 10 THOMAS J. VILSACK 5 11 Governor
Text: SF02243 Text: SF02245 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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