S.F. 2317 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 5328SV (3) 87 gh/rn 1/ 14

S.F. 2317 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 5328SV (3) 87 gh/rn 2/ 14

S.F. 2317 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 476.11, unnumbered paragraph 2, Code 2018, 31 is amended to read as follows: 32 The board may resolve complaints, upon notice and 33 hearing, that a utility, operating under section 476.29 , 34 telecommunications provider has failed to provide just, 35 -3- LSB 5328SV (3) 87 gh/rn 3/ 14

S.F. 2317 reasonable, and nondiscriminatory arrangements for 1 interconnection of its telecommunications services with another 2 telecommunications provider. 3 Sec. 10. Section 476.51, subsection 5, Code 2018, is amended 4 to read as follows: 5 5. Civil penalties collected pursuant to this section from 6 utilities providing water, electric, or gas service shall be 7 forwarded by the executive secretary chief operating officer 8 of the board to the treasurer of state to be credited to the 9 general fund of the state and to be used only for the low 10 income home energy assistance program and the weatherization 11 assistance program administered by the division of community 12 action agencies of the department of human rights. Civil 13 penalties collected pursuant to this section from utilities 14 providing telecommunications service shall be forwarded to 15 the treasurer of state to be credited to the department of 16 commerce revolving fund created in section 546.12 to be used 17 only for consumer education programs administered by the board. 18 Penalties paid by a rate-regulated public utility pursuant to 19 this section shall be excluded from the utility’s costs when 20 determining the utility’s revenue requirement, and shall not be 21 included either directly or indirectly in the utility’s rates 22 or charges to customers. 23 Sec. 11. Section 476.53, subsection 3, paragraph c, 24 subparagraph (2), Code 2018, is amended to read as follows: 25 (2) The rate-regulated public utility has demonstrated to 26 the board that the public utility has considered other sources 27 for long-term electric supply and that the facility or lease is 28 reasonable when compared to other feasible alternative sources 29 of supply. The rate-regulated public utility may satisfy the 30 requirements of this subparagraph through a competitive bidding 31 process, under rules adopted by the board, that demonstrate 32 the facility or lease is a reasonable alternative to meet its 33 electric supply needs. 34 Sec. 12. NEW SECTION . 476.95A Annual registration for 35 -4- LSB 5328SV (3) 87 gh/rn 4/ 14

S.F. 2317 telecommunications service providers. 1 1. A telecommunications service provider offering 2 communications service telephone numbers to retail customers in 3 this state shall register annually with the board. 4 2. An applicant shall complete an application for 5 registration on a form provided by the board. The form shall 6 include contact information, the approximate number of service 7 lines provided in the state, and any other information deemed 8 necessary by the board. 9 3. Within five business days of the receipt of a completed 10 application for registration, the board shall issue a 11 nonexclusive acknowledgment of compliance with this section. 12 The acknowledgment shall authorize the registrant to obtain 13 telephone numbers, interconnect with other telecommunications 14 services providers, cross railroad rights-of-way pursuant to 15 section 476.27, and provide telecommunications services in this 16 state. An acknowledgment may be transferred by filing a new 17 or updated registration form. 18 4. A registrant shall submit to the board corrections 19 to the information supplied in the registration form 20 within a reasonable time after a change in circumstances, 21 which circumstances would be required to be reported in an 22 application for registration form. 23 5. Failure to file and maintain an annual registration 24 pursuant to this section is a violation of this chapter and 25 shall subject a telecommunications services provider to a civil 26 penalty pursuant to section 476.51. 27 Sec. 13. Section 476.101, subsections 1, 4, and 7, Code 28 2018, are amended to read as follows: 29 1. A certificate of public convenience and necessity to 30 provide local telephone service shall not be interpreted as 31 conveying a monopoly, exclusive privilege, or franchise. A 32 competitive local exchange service provider shall not be 33 subject to the requirements of this chapter , except that a 34 competitive local exchange service provider shall obtain a 35 -5- LSB 5328SV (3) 87 gh/rn 5/ 14

S.F. 2317 certificate of public convenience and necessity pursuant to 1 section 476.29 register annually with the board pursuant to 2 section 476.95A , notify affected customers prior to any rate 3 increase, file reports, information, and pay assessments 4 pursuant to section 476.2, subsection 4 , and sections 476.9 , 5 476.10 , 476.16 , 476.102 , and 477C.7 , and shall be subject to 6 the board’s authority with respect to adequacy of service, 7 interconnection, discontinuation of service, civil penalties, 8 and complaints. If, after notice and opportunity for hearing, 9 the board determines that a competitive local exchange service 10 provider possesses market power in its local exchange market 11 or markets, the board may apply such other provisions of this 12 chapter to a competitive local exchange service provider as it 13 deems appropriate. 14 4. Except as provided under section 476.29, subsection 2 , 15 and in this section , the board shall not impose or allow a 16 local exchange carrier to impose restrictions on the resale 17 of local exchange services, functions, or capabilities. The 18 board may prohibit residential service from being resold as a 19 different class of service. 20 7. In a proceeding associated with the granting of 21 a certificate under section 476.29 , approving maps for 22 competitive local exchange providers provided for in this 23 section , or in resolving a complaint filed pursuant to 24 subsection 5 and proceedings under 47 U.S.C. §251 – 254, 25 the board shall allocate the costs and expenses of the 26 proceedings to persons identified as parties in the proceeding 27 who are engaged in or who seek to engage in providing 28 telecommunications services or other persons identified as 29 participants in the proceeding. The funds received for the 30 costs and the expenses shall be remitted to the treasurer of 31 state for deposit in the department of commerce revolving fund 32 created in section 546.12 as provided in section 476.10 . 33 Sec. 14. Section 476.103, subsection 4, paragraph c, Code 34 2018, is amended to read as follows: 35 -6- LSB 5328SV (3) 87 gh/rn 6/ 14

S.F. 2317 c. A civil penalty collected pursuant to this subsection 1 shall be forwarded by the executive secretary chief operating 2 officer of the board to the treasurer of state to be credited 3 to the department of commerce revolving fund created in section 4 546.12 and to be used only for consumer education programs 5 administered by the board. 6 Sec. 15. Section 477A.3, subsection 1, paragraph f, Code 7 2018, is amended to read as follows: 8 f. Documentation that the applicant possesses sufficient 9 managerial, technical, and financial capability to provide 10 the cable service or video service proposed in the service 11 area. An applicant or its subsidiary which has been issued 12 a certificate of public convenience and necessity to provide 13 telephone service pursuant to section 476.29 shall be exempt 14 from the provisions of this paragraph. 15 Sec. 16. Section 477C.7, Code 2018, is amended to read as 16 follows: 17 477C.7 Funding. 18 1. The board shall impose an annual assessment to fund the 19 programs described in this chapter upon all telecommunications 20 carriers providing service in the state , including but not 21 limited to wireless, wireline, and alternative operator 22 service providers, at a rate of three cents per month for each 23 communications service telephone number provided in this state . 24 2. The total assessment shall be allocated as follows: 25 a. Wireless communications service providers shall be 26 assessed three cents per month for each wireless communications 27 service number provided in this state. 28 b. (1) The remainder of the assessment shall be allocated 29 one-half to local exchange telephone utilities and one-half to 30 the following: 31 (a) Interexchange carriers. 32 (b) Centralized equal access providers. 33 (c) Alternative operator services companies. 34 (2) The assessment shall be allocated proportionally based 35 -7- LSB 5328SV (3) 87 gh/rn 7/ 14

S.F. 2317 upon revenues from all intrastate regulated, deregulated, and 1 exempt telephone services under sections 476.1 and 476.1D . 2 3. 2. The telecommunications carriers shall remit the 3 assessed amounts quarterly to a special fund, as defined 4 under section 8.2, subsection 9 . The moneys in the fund are 5 appropriated solely to plan, establish, administer, and promote 6 the relay service and equipment distribution programs. 7 4. 3. The telecommunications carriers subject to 8 assessment shall provide the information requested by the board 9 necessary for implementation of the assessment. 10 5. The local exchange telephone utilities shall not recover 11 from intrastate access charges any portion of such utilities 12 assessment imposed under this section . 13 Sec. 17. Section 478.29, subsection 1, Code 2018, is amended 14 to read as follows: 15 1. A person who violates a provision of this chapter is 16 subject to a civil penalty, which may be levied by the board, 17 of not more than one hundred dollars per violation or one 18 thousand dollars per day of a continuing violation, whichever 19 is greater. Civil penalties collected pursuant to this 20 section shall be forwarded by the executive secretary chief 21 operating officer of the board to the treasurer of state to be 22 credited to the general fund of the state and appropriated to 23 the division of community action agencies of the department 24 of human rights for purposes of the low income home energy 25 assistance program and the weatherization assistance program. 26 Sec. 18. Section 479.14, Code 2018, is amended to read as 27 follows: 28 479.14 Inspection fee. 29 A pipeline company shall pay an annual inspection fee of 30 fifty cents per mile of pipeline or fraction thereof for 31 each inch of diameter of the pipeline located in the state, 32 the inspection fee to be paid to the board for the calendar 33 year in advance between January 1 and February 1 of each year 34 The board may, in accordance with section 476.10, charge a 35 -8- LSB 5328SV (3) 87 gh/rn 8/ 14

S.F. 2317 pipeline company with an annual inspection fee that is directly 1 attributable to the costs of conducting annual inspections 2 pursuant to this chapter . 3 Sec. 19. Section 479.31, subsection 1, Code 2018, is amended 4 to read as follows: 5 1. A person who violates this chapter or any rule or order 6 issued pursuant to this chapter shall be subject to a civil 7 penalty levied by the board not to exceed one hundred thousand 8 dollars for each violation. Each day that the violation 9 continues shall constitute a separate offense. However, the 10 maximum civil penalty shall not exceed one million dollars for 11 any related series of violations. Civil penalties collected 12 pursuant to this section shall be forwarded by the executive 13 secretary chief operating officer of the board to the treasurer 14 of state to be credited to the general fund of the state and 15 appropriated to the division of community action agencies 16 of the department of human rights for purposes of the low 17 income home energy assistance program and the weatherization 18 assistance program. 19 Sec. 20. Section 479.46, subsection 6, Code 2018, is amended 20 to read as follows: 21 6. The pipeline company shall pay all costs of the 22 assessment made by the commissioners and reasonable attorney 23 fees and costs incurred by the landowner as determined by the 24 commissioners if the award of the commissioners exceeds one 25 hundred ten percent of the final offer of the pipeline company 26 prior to the determination of damages ; if the award does not 27 exceed one hundred ten percent, the landowners shall pay the 28 fees and costs incurred by the pipeline company . The pipeline 29 company shall file with the sheriff an affidavit setting forth 30 the most recent offer made to the landowner. Commissioners 31 shall receive a per diem of fifty dollars and actual and 32 necessary expenses incurred in the performance of their 33 official duties. The pipeline company shall also pay all costs 34 occasioned by the appeal, including reasonable attorney fees 35 -9- LSB 5328SV (3) 87 gh/rn 9/ 14

S.F. 2317 to be taxed by the court, unless on the trial of the appeal the 1 same or a lesser amount of damages is awarded than was allowed 2 by the commission from which the appeal was taken. 3 Sec. 21. Section 479B.4, unnumbered paragraph 5, Code 2018, 4 is amended to read as follows: 5 The notice shall set forth the following: the name of the 6 applicant, the applicant’s principal place of business, the 7 general description and purpose of the proposed project, the 8 general nature of the right-of-way desired, a map showing the 9 route or location of the proposed project, that the landowner 10 has a right to be present at the meeting and to file objections 11 with the board, and a designation of the time and place of the 12 meeting. The notice shall be sent by restricted certified 13 mail and shall be published once in a newspaper of general 14 circulation in the county not less than thirty days before 15 the date set for the meeting served by certified mail with 16 return receipt requested not less than thirty days previous 17 to the time set for the meeting, and shall be published once 18 in a newspaper of general circulation in the county . The 19 publication shall be considered notice to landowners whose 20 residence is not known and to each person in possession of or 21 residing on the property provided a good faith effort to notify 22 can be demonstrated by the pipeline company. 23 Sec. 22. Section 479B.21, subsection 1, Code 2018, is 24 amended to read as follows: 25 1. A person who violates this chapter or any rule or 26 order issued pursuant to this chapter shall be subject to a 27 civil penalty levied by the board in an amount not to exceed 28 one thousand dollars for each violation. Each day that the 29 violation continues shall constitute a separate offense. 30 However, the maximum civil penalty shall not exceed two hundred 31 thousand dollars for any related series of violations. Civil 32 penalties collected pursuant to this section shall be forwarded 33 by the executive secretary chief operating officer of the board 34 to the treasurer of state to be credited to the general fund 35 -10- LSB 5328SV (3) 87 gh/rn 10/ 14

S.F. 2317 of the state and appropriated to the division of community 1 action agencies of the department of human rights for purposes 2 of the low income home energy assistance program and the 3 weatherization assistance program. 4 Sec. 23. Section 479B.30, subsection 6, Code 2018, is 5 amended to read as follows: 6 6. The pipeline company shall pay all costs of the 7 assessment made by the commissioners and reasonable attorney 8 fees and costs incurred by the landowner as determined by the 9 commissioners if the award of the commissioners exceeds one 10 hundred ten percent of the final offer of the pipeline company 11 prior to the determination of damages ; if the award does not 12 exceed one hundred ten percent, the landowners shall pay the 13 fees and costs incurred by the pipeline company . The pipeline 14 company shall file with the sheriff an affidavit setting forth 15 the most recent offer made to the landowner. Commissioners 16 shall receive a per diem of fifty dollars and actual and 17 necessary expenses incurred in the performance of their 18 official duties. The pipeline company shall also pay all costs 19 occasioned by the appeal, including reasonable attorney fees 20 to be taxed by the court, unless on the trial of the appeal the 21 same or a lesser amount of damages is awarded than was allowed 22 by the commission from which the appeal was taken. 23 Sec. 24. Section 714H.4, subsection 1, paragraph d, Code 24 2018, is amended to read as follows: 25 d. The provision of local exchange carrier telephone service 26 pursuant to a certificate issued under section 476.29 . 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill modifies various provisions relating to the 31 utilities division of the department of commerce. 32 Current law requires the Iowa utilities board to appoint an 33 executive secretary, whose salary is set by the board and who 34 takes the same oath as board members. The bill requires the 35 -11- LSB 5328SV (3) 87 gh/rn 11/ 14

S.F. 2317 board to appoint a chief operating officer (COO) instead of 1 an executive secretary. The bill specifies that the role of 2 the COO is to manage the operations of the utilities division 3 as directed by the board. The bill provides that the board 4 shall set the salary of the COO within the limits of the 5 law and authorizes the board to employ additional personnel 6 as necessary. The bill replaces references to “executive 7 secretary” with “COO” in the Code. 8 Current law disqualifies a person owning any bonds, stock, 9 or property in any railroad company from holding office in the 10 utilities board. The bill removes this disqualification. 11 The bill removes or replaces references in the Code to 12 repealed Code section 476.29, which required telecommunications 13 service providers to obtain certification from the board. 14 The bill removes the requirement for the board to provide 15 the general assembly with a report on certain energy efficiency 16 planning efforts to be completed by January 1, 1998. 17 The bill strikes Code section 476.6(21), which provides 18 cost recovery for certain rate-regulated public utilities for 19 undertaking analyses of and preparations for the possible 20 construction of nuclear generating facilities in the state. 21 Current law allows the board to allocate and charge expenses 22 attributable to its duties to a person bringing a proceeding 23 before the board or participating in matters before the board. 24 The bill allows the board to also allocate and charge expenses 25 attributable to its duties to a person subject to inspection 26 by the board. 27 Current law requires the board to specify certain ratemaking 28 principles that will apply to certain electric generating and 29 transmission facilities. In doing so the board must find 30 that a public utility has demonstrated to the board, through 31 a competitive bidding process under rules adopted by the 32 board, that its facility or lease is reasonable. The bill 33 removes the requirement that a public utility demonstrate the 34 reasonableness of its facility or lease through a competitive 35 -12- LSB 5328SV (3) 87 gh/rn 12/ 14

S.F. 2317 bidding process under rules adopted by the board. 1 The bill requires telecommunications services providers 2 offering communications service telephone numbers to retail 3 customers in the state to register annually with the board. 4 An applicant must complete an application for registration 5 on a form provided by the board, which shall include contact 6 information, the approximate number of service lines provided 7 in the state, and any other information deemed necessary by 8 the board. The board must issue a nonexclusive acknowledgment 9 of compliance within five business days of the receipt of a 10 completed application of registration. Such acknowledgment 11 shall authorize the registrant to obtain telephone numbers, 12 interconnect with other telecommunications providers, cross 13 railroad rights-of-way, and provide telecommunications services 14 in the state. An acknowledgment is transferrable by filing a 15 new or updated registration board. A registrant shall submit 16 corrections to the registration form within a reasonable time 17 after a change in circumstances if such information would be 18 required to be reported in an application. Failure to file and 19 maintain an annual registration subjects a telecommunications 20 services provider to a civil penalty under Code section 476.51. 21 Current law requires the board to impose an annual 22 assessment upon all telecommunications carriers in the state 23 to fund dual party relay service programs, with the assessment 24 rate depending on the type of telecommunications carrier. The 25 bill applies the same assessment rate to all telecommunications 26 carriers providing service in the state, including but not 27 limited to wireless, wireline, and alternative operator service 28 providers, at a rate of three cents for each communications 29 service telephone number provided in the state. 30 Current law requires pipeline companies doing business in 31 the state to pay the board an annual inspection fee of 50 32 cents for each mile of pipeline located in the state. The 33 bill removes this set fee and instead allows the board to 34 charge pipeline companies with annual inspection fees that are 35 -13- LSB 5328SV (3) 87 gh/rn 13/ 14

S.F. 2317 directly attributable to the costs of conducting inspections. 1 Current law allows a landowner to petition the county 2 board of supervisors to appoint a compensation commission to 3 determine damages arising from the construction of certain 4 pipelines if the landowner and pipeline company are unable to 5 agree on damages. If the compensation commission’s assessment 6 of damages exceeds 110 percent of the pipeline company’s final 7 offer prior to the assessment, the pipeline company must pay 8 all costs of the assessment, including costs incurred by the 9 landowner; if the assessment does not exceed 110 percent of 10 the pipeline company’s final offer prior to the assessment, 11 the landowner must pay the costs incurred by the pipeline 12 company. The bill removes provisions requiring a landowner to 13 pay the costs incurred by a pipeline company if a compensation 14 commission’s assessment of damages does not exceed 110 percent 15 of the pipeline company’s final offer prior to such assessment. 16 -14- LSB 5328SV (3) 87 gh/rn 14/ 14