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Senate Study Bill 1037

Bill Text

PAG LIN
  1  1    Section 1.  Section 388.9, subsection 2, Code 2003, is
  1  2 amended to read as follows:
  1  3    2.  a.  Notwithstanding section 22.2, subsection 1, public
  1  4 records of a city utility or combined utility system, or a
  1  5 city enterprise or combined city enterprise as defined in
  1  6 section 384.80, which shall not be examined or copied as of
  1  7 right, include proprietary information, records of customer
  1  8 names and accounts, records associated with marketing or
  1  9 pricing strategies, preliminary working papers, and
  1 10 spreadsheet scenarios, and cost data, if the competitive
  1 11 position of the city utility, combined utility system, city
  1 12 enterprise, or combined city enterprise would be harmed by
  1 13 public disclosure not required of a potential or actual
  1 14 competitor, and if no public purpose would be served by such
  1 15 disclosure.  The city utility, combined utility system, city
  1 16 enterprise, or combined city enterprise shall have the burden
  1 17 of establishing that harm would result from public disclosure
  1 18 and that no public purpose would be served by disclosure in
  1 19 any court or administrative action regarding disclosure.
  1 20    b.  This subsection shall not apply to financial statements
  1 21 or records, whether audited or unaudited, showing or relating
  1 22 to the financial information as of any historical date or for
  1 23 any historical period which are public records available under
  1 24 the terms and conditions of chapter 22.
  1 25    c.  A public record not subject to examination or copying
  1 26 under this subsection shall be available for public
  1 27 examination and copying at that point in time when public
  1 28 disclosure would no longer harm the competitive position of
  1 29 the city utility, combined utility system, city enterprise, or
  1 30 combined city enterprise.
  1 31    Sec. 2.  Section 388.10, Code 2003, is amended to read as
  1 32 follows:
  1 33    388.10  CITY OR MUNICIPAL UTILITY PROVIDING LOCAL EXCHANGE
  1 34 TELECOMMUNICATIONS SERVICES.
  1 35    1.  a.  A city providing or that owns or operates a
  2  1 municipal utility providing local exchange services pursuant
  2  2 to chapter 476 any telecommunications service or the municipal
  2  3 utility shall not do, directly or indirectly, any of the
  2  4 following:
  2  5    (1)  Use general fund moneys for the ongoing support or
  2  6 subsidy or other moneys derived from tax revenues, directly or
  2  7 indirectly, to finance or in any way to otherwise support
  2  8 either of the following:
  2  9    (a)  The establishment, construction, reconstruction,
  2 10 upgrade, maintenance, or operation of a telecommunications
  2 11 system.
  2 12    (b)  The provision of any telecommunications service.
  2 13    (2)  Provide any city or utility facilities, equipment, or
  2 14 services to provide a telecommunications systems system or
  2 15 services any telecommunications service at a cost for such
  2 16 facilities, equipment, or services which that is less than the
  2 17 reasonable cost of providing such city facilities, equipment,
  2 18 or services.
  2 19    (3)  Provide any other city service, other than a
  2 20 communications service, to a telecommunications customer at a
  2 21 cost which is less than would be paid by the same person
  2 22 receiving such other city service if the person was not a
  2 23 telecommunications customer.
  2 24    (4)  Use funds or revenue generated from electric, gas,
  2 25 water, sewage, or garbage services provided by the city for
  2 26 the ongoing support of that portion of a system or service
  2 27 used to provide local exchange services or the utility,
  2 28 directly or indirectly, to finance or in any way to otherwise
  2 29 support either of the following:
  2 30    (a)  The establishment, construction, reconstruction,
  2 31 upgrade, maintenance, or operation of any telecommunications
  2 32 system.
  2 33    (b)  The provision of any telecommunications service.
  2 34    b.  For purposes of this section, "telecommunications
  2 35 unless the context otherwise requires:
  3  1    (1)  "Cost" of any facilities, equipment, services, or
  3  2 other goods or services shall include all attributable cost
  3  3 and expenses, whether direct or indirect, fixed or variable,
  3  4 including without limitation, a fair and equitable allocation
  3  5 of all of the following:
  3  6    (a)  Taxes.
  3  7    (b)  The costs of any necessary capital for the
  3  8 construction or acquisition of the item or the facilities by
  3  9 which the service is provided.
  3 10    (c)  Amortization of any capital that is required to be
  3 11 repaid.
  3 12    (d)  Depreciation.
  3 13    (e)  Amortization of capitalized costs.
  3 14    (2)  "Support" means to provide financial support in any
  3 15 form, whether temporary or permanent, including but not
  3 16 limited to transfers of money or other assets, purchases of
  3 17 securities, capital contributions or other investments, loans
  3 18 or other extensions of credit, leases, payment of money,
  3 19 guarantees, pledges, or hypothecations or property or
  3 20 indemnities or other arrangements by which there is recourse
  3 21 to the revenues or other assets of the city or municipal
  3 22 utility other than any revenues derived solely from the
  3 23 operations of a telecommunications service or assets of the
  3 24 related telecommunications system.
  3 25    (3)  "Telecommunications system" means only that portion of
  3 26 a system or facilities which is used to provide local exchange
  3 27 services a system that provides any telecommunications
  3 28 service.
  3 29    (4)  "Telecommunications service" means the provision of
  3 30 any of the following services:
  3 31    (a)  Cable television service.
  3 32    (b)  Internet service.
  3 33    (c)  Local exchange telephone service.
  3 34    (d)  Long distance telephone service.
  3 35    (e)  Retail data transmission..
  4  1    2.  A city providing or that owns or operates a municipal
  4  2 utility providing local exchange services pursuant to chapter
  4  3 476 telecommunications service, whether or not pursuant to
  4  4 chapter 476, or the municipal utility shall do the following:
  4  5    a.  Prepare and maintain records which record the full cost
  4  6 accounting of providing local exchange telecommunications
  4  7 service.  The records shall show the amount, and source, and
  4  8 cost of capital for initial construction or acquisition of the
  4  9 local exchange telecommunications system or facilities.  This
  4 10 section shall not prohibit a municipal utility from utilizing
  4 11 capital from any lawful source, provided that the reasonable
  4 12 cost of such capital is accounted for as a cost of providing
  4 13 the service and no violation of subsection 1, paragraph "a",
  4 14 subparagraph (1) or (4), would result.
  4 15    b.  Adopt rates for the provision of local exchange
  4 16 services telecommunications service that reflect the actual
  4 17 cost of providing the local exchange telecommunications
  4 18 service.  However, this paragraph shall not prohibit the
  4 19 municipal utility from establishing market-based prices for
  4 20 competitive local exchange services telecommunications
  4 21 services, provided that no violation of subsection 1,
  4 22 paragraph "a", subparagraph (1) or (4), would result.
  4 23    c.  Be subject to all requirements of the city which that
  4 24 would apply to any other provider of local exchange
  4 25 telecommunications services in the same manner as such
  4 26 requirements would apply to such other provider.
  4 27    3.  This section shall not prohibit the marketing or
  4 28 bundling of other products or services, in addition to local
  4 29 exchange by the municipal utility as well as any
  4 30 telecommunications services.  However, a city shall include on
  4 31 a billing statement sent to a person receiving services from
  4 32 the city, a separate charge for each individual service
  4 33 provided to the person, such as electricity, local exchange,
  4 34 or internet access.  This subsection does not prohibit the
  4 35 city from also including on the billing statement a total
  5  1 amount to be paid by the person.
  5  2    Sec. 3.  Section 427.1, subsection 2, Code 2003, is amended
  5  3 to read as follows:
  5  4    2.  MUNICIPAL AND MILITARY PROPERTY.  The property of a
  5  5 county, township, city, school corporation, levee district,
  5  6 drainage district, or the Iowa national guard, when devoted to
  5  7 public use and not held for pecuniary profit, except property
  5  8 of a municipally owned electric utility held under joint
  5  9 ownership and property of an electric power facility financed
  5 10 under chapter 28F or 476A that shall be subject to taxation
  5 11 under chapter 437A and facilities of a municipal utility or a
  5 12 city that are used for the provision of local exchange
  5 13 services pursuant to chapter 476, but only to the extent such
  5 14 facilities are used to provide such services,
  5 15 telecommunications services as defined in section 388.10 which
  5 16 shall be subject to taxation under chapter 433, except that
  5 17 section 433.11 shall not apply, and subject to taxation under
  5 18 chapter 441, as applicable.  The exemption for property owned
  5 19 by a city or county also applies to property which is operated
  5 20 by a city or county as a library, art gallery or museum,
  5 21 conservatory, botanical garden or display, observatory or
  5 22 science museum, or as a location for holding athletic
  5 23 contests, sports or entertainment events, expositions,
  5 24 meetings or conventions, or leased from the city or county for
  5 25 any such purposes, or leased from the city or county by the
  5 26 Iowa national guard or by a federal agency for the benefit of
  5 27 the Iowa national guard when devoted for public use and not
  5 28 for pecuniary profit.  Food and beverages may be served at the
  5 29 events or locations without affecting the exemptions, provided
  5 30 the city has approved the serving of food and beverages on the
  5 31 property if the property is owned by the city or the county
  5 32 has approved the serving of food and beverages on the property
  5 33 if the property is owned by the county.  
  5 34                           EXPLANATION
  5 35    This bill pertains to municipal utility systems, primarily
  6  1 under Code chapter 388.
  6  2    The bill amends Code section 388.9 to provide that certain
  6  3 competitive business information of a city utility or city
  6  4 enterprise may be withheld from public disclosure only after
  6  5 the city utility or enterprise establishes the burden that
  6  6 harm would result from public disclosure of the information,
  6  7 and that no public purpose would be served by the disclosure.
  6  8 Currently under the Code, no party bears the burden of proof.
  6  9    The bill also amends Code section 388.10 to provide that a
  6 10 city utility is prohibited from using general fund tax
  6 11 revenues to maintain or operate telecommunications systems or
  6 12 services, and from using revenues generated from a utility
  6 13 service such as electric, gas, or water to pay for the
  6 14 maintenance or operation of telecommunications service.  The
  6 15 bill also defines "cost", "support", "telecommunications
  6 16 service", and "telecommunications system".
  6 17    The bill also changes language that requires a city that
  6 18 owns a municipal utility providing telecommunications services
  6 19 to perform certain activities, consistent with other changes
  6 20 in the bill.
  6 21    The bill also amends Code section 427.1 to make similar
  6 22 language changes, and adds a reference to assessment and
  6 23 valuation of property pursuant to Code chapter 441.  
  6 24 LSB 1757SC 80
  6 25 jj/sh/8
     

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