SSB 1174 (LSB 1268XD (9) 88)

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 division of the department of commerce, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

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