Senate File 324 - Introduced



                                       SENATE FILE       
                                       BY  DANIELSON


    Passed Senate, Date               Passed House, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act declaring certain city franchise fees legal, providing a
  2    basis for calculation and use of city franchise fees, and
  3    providing an effective date.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2480SS 82
  6 eg/gg/14

PAG LIN



  1  1    Section 1.  Section 364.2, subsection 4, paragraph f, Code
  1  2 2007, is amended to read as follows:
  1  3    f.  A franchise fee assessed by a city may be based upon a
  1  4 percentage of gross revenues generated from sales of the
  1  5 franchisee within the city not to exceed five percent, and the
  1  6 fees collected may be credited to the city general fund and
  1  7 used for city general fund purposes.  If a city franchise fee
  1  8 is assessed to customers of a franchise, the fee shall not be
  1  9 assessed to the city as a customer.
  1 10    Sec. 2.  CERTAIN FRANCHISE FEES DECLARED LEGAL.  To the
  1 11 extent that any amount of franchise fees assessed by and paid
  1 12 to a city prior to the effective date of this Act, pursuant to
  1 13 a franchise agreement between a city and any person to erect,
  1 14 maintain, and operate plants and systems for electric light
  1 15 and power, heating, telegraph, cable television, district
  1 16 telegraph and alarm, motor bus, trolley bus, street railway or
  1 17 other public transit, waterworks, or gasworks, exceeds the
  1 18 city's reasonable costs of inspecting, supervising, and
  1 19 otherwise regulating the franchise, such amount is deemed and
  1 20 declared to be authorized and legally assessed by and paid to
  1 21 the city.
  1 22    Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of
  1 23 immediate importance, takes effect upon enactment.
  1 24                           EXPLANATION
  1 25    This bill provides that the amount of a city franchise fee
  1 26 may be based upon a percentage of gross revenues generated
  1 27 from sales of the franchisee within the city not to exceed 5
  1 28 percent, and the fees collected may be credited to the city
  1 29 general fund and used for city general fund purposes.
  1 30    The bill declares that franchise fees assessed by and paid
  1 31 to a city prior to the effective date of the bill, that may
  1 32 exceed the city's reasonable costs of inspecting, supervising,
  1 33 and otherwise regulating the franchise are authorized and
  1 34 legal.
  1 35    The bill takes effect upon enactment.
  2  1 LSB 2480SS 82
  2  2 eg:sc/gg/14