Text: SSB03036 Text: SSB03038 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 11.6, subsection 1, paragraph a, 1 2 unnumbered paragraph 1, Code 2003, is amended to read as 1 3 follows: 1 4 The financial condition and transactions of all cities and 1 5 city offices, counties, county hospitals organized under 1 6 chapters 347 and 347A, memorial hospitals organized under 1 7 chapter 37, entities organized under chapter 28E having gross 1 8 receipts in excess of one hundred thousand dollars in a fiscal 1 9 year, merged areas, area education agencies, and all school 1 10 offices in school districts, shall be examined at least once 1 11 each year, except that cities having a population of seven 1 12 hundred or more but less than two thousand shall be examined 1 13 at least once every four years, and cities having a population 1 14 of less than seven hundred may be examined as otherwise 1 15 provided in this section. The examination shall cover the 1 16 fiscal year next preceding the year in which the audit is 1 17 conducted. The examination of school offices shall include an 1 18 audit of all school funds, the certified annual financial 1 19 report, and the certified enrollment as provided in section 1 20 257.6. Differences in certified enrollment shall be reported 1 21 to the department of management. The examination of a city 1 22 utility shall include a report of the utility's compliance 1 23 with section 388.10. 1 24 Sec. 2. Section 388.9, Code 2003, is amended by adding the 1 25 following new subsection: 1 26 NEW SUBSECTION. 3. Notwithstanding subsections 1 and 2, 1 27 if, pursuant to section 11.6, subsection 1, paragraph "a", the 1 28 auditor of state or a certified public accountant reports that 1 29 the city utility is not in compliance with section 388.10, all 1 30 records submitted to the auditor of state or certified public 1 31 accountant or required to be submitted pursuant to section 1 32 388.10, subsection 2, paragraph "a", relating to compliance, 1 33 shall be public records subject to chapter 22. 1 34 Sec. 3. 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 provided for any 3 9 examinations or audits performed pursuant to section 11.6, 3 10 subsection 1, paragraph "a". This section shall not prohibit 3 11 a municipal utility from utilizing capital from any lawful 3 12 source, provided that the reasonable cost of such capital is 3 13 accounted for as a cost of providing the service. 3 14 b. Adopt rates for the provision oflocal exchange3 15 telecommunications services that reflect the actual cost of 3 16 providing thelocal exchange servicetelecommunications 3 17 services. However, this paragraph shall not prohibit the 3 18 municipal utility from establishing market-based prices for 3 19 competitivelocal exchangetelecommunications services. 3 20 c. Be subject to all requirements of the city which would 3 21 apply to any other provider oflocal exchange3 22 telecommunications services in the same manner as such 3 23 requirements would apply to such other provider. 3 24 3. This section shall not prohibit the marketing or 3 25 bundling of other products or services, in addition tolocal3 26exchangetelecommunications services. However, a city shall 3 27 include on a billing statement sent to a person receiving 3 28 services from the city, a separate charge for each service 3 29 provided to the person. This subsection does not prohibit the 3 30 city from also including on the billing statement a total 3 31 amount to be paid by the person. 3 32 4. This section shall not apply to telecommunications 3 33 services provided directly by a municipal airport. 3 34 Sec. 4. Section 427.1, subsection 2, Code Supplement 2003, 3 35 is amended to read as follows: 4 1 2. MUNICIPAL AND MILITARY PROPERTY. The property of a 4 2 county, township, city, school corporation, levee district, 4 3 drainage district, or the Iowa national guard, when devoted to 4 4 public use and not held for pecuniary profit, except property 4 5 of a municipally owned electric utility held under joint 4 6 ownership and property of an electric power facility financed 4 7 under chapter 28F or 476A that shall be subject to taxation 4 8 under chapter 437A and facilities of a city or of a municipal 4 9 utility that are used for the provision oflocal exchange4 10 telecommunications servicespursuant to chapter 476, but only4 11to the extent such facilities are used to provide such4 12services,as defined in section 388.10, subsection 1, which 4 13 shall be subject to taxation under chapter 433 and chapter 4 14 441, exceptthatwhere otherwise provided, and section 433.11 4 15 shall not apply. The exemption for property owned by a city 4 16 or county also applies to property which is operated by a city 4 17 or county as a library, art gallery or museum, conservatory, 4 18 botanical garden or display, observatory or science museum, or 4 19 as a location for holding athletic contests, sports or 4 20 entertainment events, expositions, meetings or conventions, or 4 21 leased from the city or county for any such purposes, or 4 22 leased from the city or county by the Iowa national guard or 4 23 by a federal agency for the benefit of the Iowa national guard 4 24 when devoted for public use and not for pecuniary profit. 4 25 Food and beverages may be served at the events or locations 4 26 without affecting the exemptions, provided the city has 4 27 approved the serving of food and beverages on the property if 4 28 the property is owned by the city or the county has approved 4 29 the serving of food and beverages on the property if the 4 30 property is owned by the county. 4 31 EXPLANATION 4 32 This bill relates to the regulation of municipal utilities 4 33 and cities owning or operating municipal utilities that 4 34 provide telecommunications services. 4 35 The bill replaces the term "local exchange services" with 5 1 "telecommunications services" where it appears in Code 5 2 sections 388.10 and 427.1 and provides a definition for what 5 3 services constitute "telecommunications services". Municipal 5 4 airports providing telecommunications services are exempted by 5 5 the bill from compliance with Code section 388.10. 5 6 The bill requires the examination of a city utility by the 5 7 auditor of state or certified public accountant to include a 5 8 report of whether the utility is in compliance with Code 5 9 section 388.10. In preparation for the examination, the 5 10 utility must provide all accounting records to the auditor of 5 11 state or certified public accountant. If it is reported that 5 12 the utility is not in compliance with Code section 388.10, all 5 13 accounting records provided or which were required to have 5 14 been provided become public records under Code chapter 22. 5 15 The bill specifies that property of a city or municipal 5 16 utility used to provide telecommunications services is not 5 17 exempt from taxation under Code chapters 433 and 441. 5 18 LSB 5605SC 80 5 19 kk/sh/8
Text: SSB03036 Text: SSB03038 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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