H.F. 2446 Section 1. Section 474.1, subsection 2, Code 2018, is 1 amended to read as follows: 2 2. a. The utilities board shall organize by appointing 3 an executive secretary, who shall take the same oath as the 4 members. The board shall set the salary of the executive 5 secretary within the limits of the pay plan for exempt 6 positions provided for in section 8A.413, subsection 3 , unless 7 otherwise provided by the general assembly. The board may 8 employ additional personnel as it finds necessary. Subject to 9 confirmation by the senate, the governor shall appoint a member 10 as the chairperson of the board. The chairperson shall be the 11 administrator of the utilities division. The appointment as 12 chairperson shall be for a two-year term which begins and ends 13 as provided in section 69.19 . 14 b. The board shall appoint a chief operating officer to 15 manage the operations of the utilities division as directed 16 by the board. The board shall set the salary of the chief 17 operating officer within the limits of the pay plan for exempt 18 positions provided for in section 8A.413, subsection 3, unless 19 otherwise provided by the general assembly. The board may 20 employ additional personnel as it finds necessary. 21 Sec. 2. Section 474.2, Code 2018, is amended to read as 22 follows: 23 474.2 Certain persons barred from office. 24 No person in the employ of any common carrier or other public 25 utility, or owning any bonds, stock or property in any railroad 26 company or other public utility shall be eligible to the office 27 of utilities board member or secretary chief operating officer 28 of the utilities board; and the entering into the employ of any 29 common carrier or other public utility or the acquiring of any 30 stock or other interest in any common carrier or other public 31 utility by such member or secretary chief operating officer 32 after appointment shall disqualify the member or secretary 33 chief operating officer to hold the office or perform the 34 duties thereof. 35 -1- LSB 5328HV (2) 87 gh/rn 1/ 10

H.F. 2446 Sec. 3. Section 474.8, Code 2018, is amended to read as 1 follows: 2 474.8 Office —— time employed —— expenses. 3 The utilities board shall have an office at the seat 4 of government and each member shall devote the member’s 5 whole time to the duties of the office, and the members and 6 secretary , chief operating officer, and other employees shall 7 receive their actual necessary traveling expenses while in 8 the discharge of their official duties away from the general 9 offices. 10 Sec. 4. Section 476.1B, subsection 3, Code 2018, is amended 11 to read as follows: 12 3. Unless otherwise specifically provided by statute, a 13 municipally owned utility providing local exchange services 14 is not subject to regulation by the board under this chapter 15 except for regulatory action pertaining to the enforcement of 16 sections 476.11 , 476.29 , 476.95 , 476.95A, 476.96 , 476.100 , 17 476.101 , and 476.102 . 18 Sec. 5. Section 476.1D, subsection 10, paragraph b, Code 19 2018, is amended to read as follows: 20 b. The board shall promptly notify the director of revenue 21 that a long distance telephone company has been classified 22 as a competitive long distance telephone company. Upon such 23 notification by the board, the director of revenue shall assess 24 the property of such competitive long distance telephone 25 company, which property is first assessed for taxation in this 26 state on or after January 1, 1996, in the same manner as all 27 other property assessed as commercial property by the local 28 assessor under chapters 427 , 427A , 427B , 428 , and 441 . As used 29 in this section , “long distance telephone company” means an 30 entity that provides telephone service and facilities between 31 local exchanges, but does not include a cellular service 32 provider or a local exchange utility holding a certificate 33 issued under section 476.29, subsection 12 . 34 Sec. 6. Section 476.2, subsection 6, Code 2018, is amended 35 -2- LSB 5328HV (2) 87 gh/rn 2/ 10

H.F. 2446 by striking the subsection. 1 Sec. 7. Section 476.6, subsection 21, Code 2018, is amended 2 by striking the subsection. 3 Sec. 8. Section 476.10, subsection 1, paragraph a, Code 4 2018, is amended to read as follows: 5 a. In order to carry out the duties imposed upon it by law, 6 the board may, at its discretion, allocate and charge directly 7 the expenses attributable to its duties to the person bringing 8 a proceeding before the board , or to persons participating in 9 matters before the board , or to persons subject to inspection 10 by the board . The board shall ascertain the certified expenses 11 incurred and directly chargeable by the consumer advocate 12 division of the department of justice in the performance of 13 its duties. The board and the consumer advocate separately 14 may decide not to charge expenses to persons who, without 15 expanding the scope of the proceeding or matter, intervene in 16 good faith in a board proceeding initiated by a person subject 17 to the board’s jurisdiction, the consumer advocate, or the 18 board on its own motion. For assessments in any proceedings or 19 matters before the board, the board and the consumer advocate 20 separately may consider the financial resources of the person, 21 the impact of assessment on participation by intervenors, the 22 nature of the proceeding or matter, and the contribution of 23 a person’s participation to the public interest. The board 24 may present a bill for expenses under this subsection to the 25 person, either at the conclusion of a proceeding or matter, 26 or from time to time during its progress. Presentation of a 27 bill for expenses under this subsection constitutes notice of 28 direct assessment and request for payment in accordance with 29 this section . 30 Sec. 9. Section 476.51, subsection 5, Code 2018, is amended 31 to read as follows: 32 5. Civil penalties collected pursuant to this section from 33 utilities providing water, electric, or gas service shall be 34 forwarded by the executive secretary chief operating officer 35 -3- LSB 5328HV (2) 87 gh/rn 3/ 10

H.F. 2446 of the board to the treasurer of state to be credited to the 1 general fund of the state and to be used only for the low 2 income home energy assistance program and the weatherization 3 assistance program administered by the division of community 4 action agencies of the department of human rights. Civil 5 penalties collected pursuant to this section from utilities 6 providing telecommunications service shall be forwarded to 7 the treasurer of state to be credited to the department of 8 commerce revolving fund created in section 546.12 to be used 9 only for consumer education programs administered by the board. 10 Penalties paid by a rate-regulated public utility pursuant to 11 this section shall be excluded from the utility’s costs when 12 determining the utility’s revenue requirement, and shall not be 13 included either directly or indirectly in the utility’s rates 14 or charges to customers. 15 Sec. 10. Section 476.53, subsection 3, paragraph c, 16 subparagraph (2), Code 2018, is amended to read as follows: 17 (2) The rate-regulated public utility has demonstrated to 18 the board that the public utility has considered other sources 19 for long-term electric supply and that the facility or lease is 20 reasonable when compared to other feasible alternative sources 21 of supply. The rate-regulated public utility may satisfy the 22 requirements of this subparagraph through a competitive bidding 23 process, under rules adopted by the board, that demonstrate 24 the facility or lease is a reasonable alternative to meet its 25 electric supply needs. 26 Sec. 11. Section 476.103, subsection 4, paragraph c, Code 27 2018, is amended to read as follows: 28 c. A civil penalty collected pursuant to this subsection 29 shall be forwarded by the executive secretary chief operating 30 officer of the board to the treasurer of state to be credited 31 to the department of commerce revolving fund created in section 32 546.12 and to be used only for consumer education programs 33 administered by the board. 34 Sec. 12. Section 478.29, subsection 1, Code 2018, is amended 35 -4- LSB 5328HV (2) 87 gh/rn 4/ 10

H.F. 2446 to read as follows: 1 1. A person who violates a provision of this chapter is 2 subject to a civil penalty, which may be levied by the board, 3 of not more than one hundred dollars per violation or one 4 thousand dollars per day of a continuing violation, whichever 5 is greater. Civil penalties collected pursuant to this 6 section shall be forwarded by the executive secretary chief 7 operating officer of the board to the treasurer of state to be 8 credited to the general fund of the state and appropriated to 9 the division of community action agencies of the department 10 of human rights for purposes of the low income home energy 11 assistance program and the weatherization assistance program. 12 Sec. 13. Section 479.14, Code 2018, is amended to read as 13 follows: 14 479.14 Inspection fee. 15 A pipeline company shall pay an annual inspection fee of 16 fifty cents per mile of pipeline or fraction thereof for 17 each inch of diameter of the pipeline located in the state, 18 the inspection fee to be paid to the board for the calendar 19 year in advance between January 1 and February 1 of each year 20 The board may, in accordance with section 476.10, charge a 21 pipeline company with an annual inspection fee that is directly 22 attributable to the costs of conducting annual inspections 23 pursuant to this chapter . 24 Sec. 14. Section 479.31, subsection 1, Code 2018, is amended 25 to read as follows: 26 1. A person who violates this chapter or any rule or order 27 issued pursuant to this chapter shall be subject to a civil 28 penalty levied by the board not to exceed one hundred thousand 29 dollars for each violation. Each day that the violation 30 continues shall constitute a separate offense. However, the 31 maximum civil penalty shall not exceed one million dollars for 32 any related series of violations. Civil penalties collected 33 pursuant to this section shall be forwarded by the executive 34 secretary chief operating officer of the board to the treasurer 35 -5- LSB 5328HV (2) 87 gh/rn 5/ 10

H.F. 2446 of state to be credited to the general fund of the state and 1 appropriated to the division of community action agencies 2 of the department of human rights for purposes of the low 3 income home energy assistance program and the weatherization 4 assistance program. 5 Sec. 15. Section 479.46, subsection 6, Code 2018, is amended 6 to read as follows: 7 6. The pipeline company shall pay all costs of the 8 assessment made by the commissioners and reasonable attorney 9 fees and costs incurred by the landowner as determined by the 10 commissioners if the award of the commissioners exceeds one 11 hundred ten percent of the final offer of the pipeline company 12 prior to the determination of damages ; if the award does not 13 exceed one hundred ten percent, the landowners shall pay the 14 fees and costs incurred by the pipeline company . The pipeline 15 company shall file with the sheriff an affidavit setting forth 16 the most recent offer made to the landowner. Commissioners 17 shall receive a per diem of fifty dollars and actual and 18 necessary expenses incurred in the performance of their 19 official duties. The pipeline company shall also pay all costs 20 occasioned by the appeal, including reasonable attorney fees 21 to be taxed by the court, unless on the trial of the appeal the 22 same or a lesser amount of damages is awarded than was allowed 23 by the commission from which the appeal was taken. 24 Sec. 16. Section 479B.4, unnumbered paragraph 5, Code 2018, 25 is amended to read as follows: 26 The notice shall set forth the following: the name of the 27 applicant, the applicant’s principal place of business, the 28 general description and purpose of the proposed project, the 29 general nature of the right-of-way desired, a map showing the 30 route or location of the proposed project, that the landowner 31 has a right to be present at the meeting and to file objections 32 with the board, and a designation of the time and place of the 33 meeting. The notice shall be sent by restricted certified 34 mail and shall be published once in a newspaper of general 35 -6- LSB 5328HV (2) 87 gh/rn 6/ 10

H.F. 2446 circulation in the county not less than thirty days before 1 the date set for the meeting served by certified mail with 2 return receipt requested not less than thirty days previous 3 to the time set for the meeting, and shall be published once 4 in a newspaper of general circulation in the county . The 5 publication shall be considered notice to landowners whose 6 residence is not known and to each person in possession of or 7 residing on the property provided a good faith effort to notify 8 can be demonstrated by the pipeline company. 9 Sec. 17. Section 479B.21, subsection 1, Code 2018, is 10 amended to read as follows: 11 1. A person who violates this chapter or any rule or 12 order issued pursuant to this chapter shall be subject to a 13 civil penalty levied by the board in an amount not to exceed 14 one thousand dollars for each violation. Each day that the 15 violation continues shall constitute a separate offense. 16 However, the maximum civil penalty shall not exceed two hundred 17 thousand dollars for any related series of violations. Civil 18 penalties collected pursuant to this section shall be forwarded 19 by the executive secretary chief operating officer of the board 20 to the treasurer of state to be credited to the general fund 21 of the state and appropriated to the division of community 22 action agencies of the department of human rights for purposes 23 of the low income home energy assistance program and the 24 weatherization assistance program. 25 Sec. 18. Section 479B.30, subsection 6, Code 2018, is 26 amended to read as follows: 27 6. The pipeline company shall pay all costs of the 28 assessment made by the commissioners and reasonable attorney 29 fees and costs incurred by the landowner as determined by the 30 commissioners if the award of the commissioners exceeds one 31 hundred ten percent of the final offer of the pipeline company 32 prior to the determination of damages ; if the award does not 33 exceed one hundred ten percent, the landowners shall pay the 34 fees and costs incurred by the pipeline company . The pipeline 35 -7- LSB 5328HV (2) 87 gh/rn 7/ 10

H.F. 2446 company shall file with the sheriff an affidavit setting forth 1 the most recent offer made to the landowner. Commissioners 2 shall receive a per diem of fifty dollars and actual and 3 necessary expenses incurred in the performance of their 4 official duties. The pipeline company shall also pay all costs 5 occasioned by the appeal, including reasonable attorney fees 6 to be taxed by the court, unless on the trial of the appeal the 7 same or a lesser amount of damages is awarded than was allowed 8 by the commission from which the appeal was taken. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill modifies various provisions relating to the 13 utilities division of the department of commerce. 14 Current law requires the Iowa utilities board to appoint an 15 executive secretary, whose salary is set by the board and who 16 takes the same oath as board members. The bill requires the 17 board to appoint a chief operating officer (COO) instead of 18 an executive secretary. The bill specifies that the role of 19 the COO is to manage the operations of the utilities division 20 as directed by the board. The bill provides that the board 21 shall set the salary of the COO within the limits of the 22 law and authorizes the board to employ additional personnel 23 as necessary. The bill replaces references to “executive 24 secretary” with “COO” in the Code. 25 Current law disqualifies a person owning any bonds, stock, 26 or property in any railroad company from holding office in the 27 utilities board. The bill removes this disqualification. 28 The bill removes the requirement for the board to provide 29 the general assembly with a report on certain energy efficiency 30 planning efforts to be completed by January 1, 1998. 31 The bill strikes Code section 476.6(21), which provides 32 cost recovery for certain rate-regulated public utilities for 33 undertaking analyses of and preparations for the possible 34 construction of nuclear generating facilities in the state. 35 -8- LSB 5328HV (2) 87 gh/rn 8/ 10

H.F. 2446 Current law allows the board to allocate and charge expenses 1 attributable to its duties to a person bringing a proceeding 2 before the board or participating in matters before the board. 3 The bill allows the board to also allocate and charge expenses 4 attributable to its duties to a person subject to inspection 5 by the board. 6 Current law requires the board to specify certain ratemaking 7 principles that will apply to certain electric generating and 8 transmission facilities. In doing so the board must find 9 that a public utility has demonstrated to the board, through 10 a competitive bidding process under rules adopted by the 11 board, that its facility or lease is reasonable. The bill 12 removes the requirement that a public utility demonstrate the 13 reasonableness of its facility or lease through a competitive 14 bidding process under rules adopted by the board. 15 Current law requires pipeline companies doing business in 16 the state to pay the board an annual inspection fee of 50 17 cents for each mile of pipeline located in the state. The 18 bill removes this set fee and instead allows the board to 19 charge pipeline companies with annual inspection fees that are 20 directly attributable to the costs of conducting inspections. 21 Current law allows a landowner to petition the county 22 board of supervisors to appoint a compensation commission to 23 determine damages arising from the construction of certain 24 pipelines if the landowner and pipeline company are unable to 25 agree on damages. If the compensation commission’s assessment 26 of damages exceeds 110 percent of the pipeline company’s final 27 offer prior to the assessment, the pipeline company must pay 28 all costs of the assessment, including costs incurred by the 29 landowner; if the assessment does not exceed 110 percent of 30 the pipeline company’s final offer prior to the assessment, 31 the landowner must pay the costs incurred by the pipeline 32 company. The bill removes provisions requiring a landowner to 33 pay the costs incurred by a pipeline company if a compensation 34 commission’s assessment of damages does not exceed 110 percent 35 -9- LSB 5328HV (2) 87 gh/rn 9/ 10