Senate
Study
Bill
1174
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
COMMERCE/UTILITIES
DIVISION
BILL)
A
BILL
FOR
An
Act
relating
to
matters
under
the
purview
of
the
utilities
1
division
of
the
department
of
commerce,
and
making
penalties
2
applicable.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1268XD
(9)
88
gh/rn
S.F.
_____
H.F.
_____
Section
1.
Section
34A.2,
subsections
8
and
14,
Code
2019,
1
are
amended
to
read
as
follows:
2
8.
“Competitive
local
exchange
service
provider”
means
the
3
same
as
defined
in
section
476.96
any
person,
including
a
4
municipal
utility,
that
provides
local
exchange
services,
other
5
than
a
local
exchange
carrier
or
a
non-rate-regulated
wireline
6
provider
of
local
exchange
services
.
7
14.
“Local
exchange
carrier”
means
the
same
as
defined
in
8
section
476.96
any
person
that
was
the
incumbent
and
historical
9
rate-regulated
wireline
provider
of
local
exchange
services
10
or
any
successor
to
such
person
that
provides
local
exchange
11
services
.
12
Sec.
2.
Section
423.3,
subsection
47A,
Code
2019,
is
amended
13
to
read
as
follows:
14
47A.
a.
The
sales
price
from
the
sale
or
rental
of
central
15
office
equipment
or
transmission
equipment
primarily
used
by
16
local
exchange
carriers
and
competitive
local
exchange
service
17
providers
as
defined
in
section
476.96
;
by
franchised
cable
18
television
operators,
mutual
companies,
municipal
utilities,
19
cooperatives,
and
companies
furnishing
communications
services
20
that
are
not
subject
to
rate
regulation
as
provided
in
chapter
21
476
;
by
long
distance
companies
as
defined
in
section
477.10
;
22
or
for
a
commercial
mobile
radio
service
as
defined
in
47
23
C.F.R.
§20.3
in
the
furnishing
of
telecommunications
services
24
on
a
commercial
basis.
25
b.
For
the
purposes
of
this
subsection
,
26
(1)
“central
office
equipment”
means
equipment
utilized
27
in
the
initiating,
processing,
amplifying,
switching,
or
28
monitoring
of
telecommunications
services.
“Central
office
29
equipment”
also
includes
ancillary
equipment
and
apparatus
30
which
support,
regulate,
control,
repair,
test,
or
enable
such
31
equipment
to
accomplish
its
function.
32
(2)
“Competitive
local
exchange
service
provider”
means
33
any
person,
including
a
municipal
utility,
that
provides
34
local
exchange
services,
other
than
a
local
exchange
carrier
35
-1-
LSB
1268XD
(9)
88
gh/rn
1/
6
S.F.
_____
H.F.
_____
or
a
non-rate-regulated
wireline
provider
of
local
exchange
1
services.
2
(3)
“Local
exchange
carrier”
means
any
person
that
was
the
3
incumbent
and
historical
rate-regulated
wireline
provider
of
4
local
exchange
services
or
any
successor
to
such
person
that
5
provides
local
exchange
services.
6
(4)
“Transmission
equipment”
means
equipment
utilized
7
in
the
process
of
sending
information
from
one
location
to
8
another
location.
“Central
office
equipment”
and
“transmission
9
“Transmission
equipment”
also
include
includes
ancillary
10
equipment
and
apparatus
which
support,
regulate,
control,
11
repair,
test,
or
enable
such
equipment
to
accomplish
its
12
function.
13
Sec.
3.
Section
476.2,
Code
2019,
is
amended
by
adding
the
14
following
new
subsection:
15
NEW
SUBSECTION
.
4A.
The
board
shall
have
the
authority
16
to
employ
or
appoint
an
independent
administrative
law
judge
17
to
preside
over
any
hearing
or
proceeding
before
the
board.
18
Sections
10A.801
and
17A.11
do
not
apply
to
the
employment
or
19
appointment
of
an
administrative
law
judge
pursuant
to
this
20
subsection.
21
Sec.
4.
Section
476.10,
subsection
1,
paragraph
b,
Code
22
2019,
is
amended
to
read
as
follows:
23
b.
The
board
shall
ascertain
the
total
of
the
division’s
24
expenses
incurred
during
each
fiscal
year
in
the
performance
25
of
its
duties
under
law.
The
board
shall
add
to
the
total
of
26
the
division’s
expenses
the
certified
expenses
of
the
consumer
27
advocate
as
provided
under
section
475A.6
.
The
board
shall
28
deduct
all
amounts
charged
directly
to
any
person
from
the
29
total
expenses
of
the
board
and
the
consumer
advocate.
The
30
board
may
assess
an
estimate
of
the
amount
remaining
after
31
the
estimated
deduction
for
direct
charges
to
some
or
all
32
persons
providing
service
over
which
the
board
has
jurisdiction
33
in
proportion
to
the
respective
gross
operating
revenues
34
of
such
persons
from
intrastate
operations
during
the
last
35
-2-
LSB
1268XD
(9)
88
gh/rn
2/
6
S.F.
_____
H.F.
_____
calendar
year
over
which
the
board
has
jurisdiction.
For
1
purposes
of
determining
gross
operating
revenues
under
this
2
section
,
the
board
shall
not
include
gross
receipts
received
3
by
a
cooperative
corporation
or
association
for
wholesale
4
transactions
with
members
of
the
cooperative
corporation
5
or
association,
provided
that
the
members
are
subject
to
6
assessment
by
the
board
based
upon
the
members’
gross
operating
7
revenues,
or
provided
that
such
a
member
is
an
association
8
whose
members
are
subject
to
assessment
by
the
board
based
upon
9
the
members’
gross
operating
revenues.
If
any
portion
of
the
10
remainder
can
be
identified
with
a
specific
type
of
utility
11
service,
the
board
shall
assess
an
estimate
of
those
expenses
12
only
to
the
entities
providing
that
type
of
service
over
which
13
the
board
has
jurisdiction.
The
board
may
make
the
remainder
14
assessments
under
this
paragraph
on
a
quarterly
basis,
based
15
upon
estimates
of
the
expenditures
for
the
fiscal
year
for
16
the
utilities
division
and
the
consumer
advocate.
Not
more
17
than
ninety
days
following
the
close
of
the
fiscal
year,
the
18
utilities
division
shall
conform
the
amount
of
the
prior
fiscal
19
year’s
assessments
to
the
requirements
of
this
paragraph.
For
20
gas
and
electric
public
utilities
exempted
from
rate
regulation
21
pursuant
to
this
chapter
,
the
remainder
assessments
under
22
this
paragraph
shall
be
computed
at
one-half
the
rate
used
in
23
computing
the
assessment
for
other
persons.
24
Sec.
5.
Section
476.55,
subsection
2,
paragraph
a,
25
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
26
follows:
27
Notwithstanding
section
476.1D
,
the
board
may
receive
28
a
complaint
from
a
local
exchange
carrier
that
another
29
local
exchange
carrier
has
engaged
in
an
activity
that
is
30
inconsistent
with
antitrust
laws
and
the
policies
which
31
underlie
them.
For
purposes
of
this
subsection
,
“local
exchange
32
carrier”
means
the
same
as
defined
in
section
476.96
any
person
33
that
was
the
incumbent
and
historical
rate-regulated
wireline
34
provider
of
local
exchange
services
or
any
successor
to
such
35
-3-
LSB
1268XD
(9)
88
gh/rn
3/
6
S.F.
_____
H.F.
_____
person
that
provides
local
exchange
services,
and
includes
a
1
city
utility
authorized
pursuant
to
section
388.2
to
provide
2
local
exchange
services.
If,
after
notice
and
opportunity
for
3
hearing,
the
board
finds
that
a
local
exchange
carrier
has
4
engaged
in
an
activity
that
is
inconsistent
with
antitrust
laws
5
and
the
policies
which
underlie
them,
the
board
may
order
any
6
of
the
following:
7
Sec.
6.
Section
477C.7,
subsection
2,
Code
2019,
is
amended
8
to
read
as
follows:
9
2.
The
entities
subject
to
assessment
shall
remit
the
10
assessed
amounts
quarterly
to
a
special
fund,
as
defined
under
11
section
8.2,
subsection
9
,
at
intervals
as
directed
by
the
12
board
.
The
moneys
in
the
fund
are
appropriated
solely
to
13
plan,
establish,
administer,
and
promote
the
relay
service
and
14
equipment
distribution
programs.
15
Sec.
7.
Section
479.31,
subsection
1,
Code
2019,
is
amended
16
to
read
as
follows:
17
1.
A
person
who
violates
this
chapter
or
any
rule
or
18
order
issued
pursuant
to
this
chapter
shall
be
subject
to
a
19
civil
penalty
levied
by
the
board
not
to
exceed
one
hundred
20
thousand
dollars
for
each
violation
in
accordance
with
49
21
C.F.R.
§190.223
.
Each
day
that
the
violation
continues
shall
22
constitute
a
separate
offense.
However,
the
maximum
civil
23
penalty
shall
not
exceed
one
million
dollars
for
any
related
24
series
of
violations.
Civil
penalties
collected
pursuant
to
25
this
section
shall
be
forwarded
by
the
chief
operating
officer
26
of
the
board
to
the
treasurer
of
state
to
be
credited
to
the
27
general
fund
of
the
state
and
appropriated
to
the
division
of
28
community
action
agencies
of
the
department
of
human
rights
for
29
purposes
of
the
low
income
home
energy
assistance
program
and
30
the
weatherization
assistance
program.
31
Sec.
8.
Section
479A.7,
Code
2019,
is
amended
to
read
as
32
follows:
33
479A.7
Annual
inspection
fee.
34
A
The
board
may,
in
accordance
with
section
476.10,
charge
35
-4-
LSB
1268XD
(9)
88
gh/rn
4/
6
S.F.
_____
H.F.
_____
a
pipeline
company
shall
pay
with
an
annual
inspection
fee
of
1
fifty
cents
per
mile
of
pipeline
or
fraction
thereof
for
each
2
inch
of
diameter
of
the
pipeline
located
in
this
state.
The
3
annual
inspection
fee
shall
be
paid
for
the
calendar
year
in
4
advance
between
January
1
and
February
1
of
each
year
that
5
is
directly
attributable
to
the
costs
of
conducting
annual
6
inspections
pursuant
to
this
chapter
.
7
EXPLANATION
8
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
9
the
explanation’s
substance
by
the
members
of
the
general
assembly.
10
This
bill
modifies
provisions
relating
to
the
utilities
11
division
of
the
department
of
commerce.
12
The
bill
removes
cross
references
throughout
the
Code
to
13
repealed
Code
section
476.96,
which
included
definitions
for
14
“competitive
local
exchange
service
provider”
and
“local
15
exchange
carrier”,
and
provides
new
definitions
for
such
terms
16
in
those
Code
sections.
“Competitive
local
exchange
service
17
provider”
is
defined
as
any
person,
including
a
municipal
18
utility,
that
provides
local
exchange
services,
other
than
19
a
local
exchange
carrier
or
a
non-rate-regulated
wireline
20
provider
of
local
exchange
services.
“Local
exchange
carrier”
21
is
defined
as
any
person
that
was
the
incumbent
and
historical
22
rate-regulated
wireline
provider
of
local
exchange
services
23
or
any
successor
to
such
person
that
provides
local
exchange
24
services.
25
The
bill
provides
the
Iowa
utilities
board
with
authority
26
to
employ
or
appoint
an
independent
administrative
law
judge
27
to
preside
over
any
hearing
or
proceeding
before
the
board.
28
Certain
provisions
applicable
to
the
employment
or
appointment
29
of
administrative
law
judges
by
state
agencies
do
not
apply
to
30
appointments
by
the
board.
31
Current
law
requires
the
board
to
deduct
all
amounts
charged
32
directly
to
any
person
subject
to
the
jurisdiction
of
the
33
board
for
providing
utility
services
from
the
total
annual
34
expenses
of
the
board
and
the
consumer
advocate.
The
board
may
35
-5-
LSB
1268XD
(9)
88
gh/rn
5/
6
S.F.
_____
H.F.
_____
assess
the
remaining
amount
to
all
persons
providing
service
1
over
which
the
board
has
jurisdiction
in
proportion
to
their
2
respective
gross
operating
revenues.
The
bill
allows
the
board
3
to
charge
such
assessments
based
on
estimated
amounts,
and
to
4
be
assessed
to
some
or
all
persons
providing
service
over
which
5
the
board
has
jurisdiction.
6
Current
law
requires
telecommunications
carriers
subject
to
7
assessments
under
Code
chapter
477C
to
remit
the
assessments
8
to
a
special
fund
quarterly.
The
bill
removes
the
requirement
9
that
assessments
under
Code
chapter
477C
be
remitted
quarterly
10
and
instead
allows
the
board
to
direct
the
intervals
of
when
11
such
assessments
are
to
be
remitted.
12
Current
law
allows
the
board
to
impose
a
civil
penalty
of
up
13
to
$100,000
for
each
violation
of
Code
chapter
479,
relating
14
to
pipelines
and
underground
gas
storage,
or
any
rule
or
order
15
issued
pursuant
to
the
Code
chapter,
provided
that
the
maximum
16
penalty
does
not
exceed
$1
million
for
any
related
series
of
17
violations.
The
bill
removes
these
maximum
amounts
and
instead
18
provides
that
a
civil
penalty
levied
by
the
board
shall
be
in
19
accordance
with
specified
federal
law.
20
Current
law
requires
pipeline
companies
operating
pipelines
21
or
underground
storage
under
Code
chapter
479A
to
pay
the
board
22
an
annual
inspection
fee
of
50
cents
for
each
mile
of
pipeline
23
located
in
Iowa.
The
bill
removes
this
set
fee
and
instead
24
allows
the
board
to
charge
pipeline
companies
with
annual
25
inspection
fees
that
are
directly
attributable
to
the
costs
of
26
conducting
inspections.
27
-6-
LSB
1268XD
(9)
88
gh/rn
6/
6