H.F. 693 DIVISION I 1 ADMINISTRATION 2 Section 1. Section 476.2, Code 2021, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 4A. The board shall have the authority 5 to employ or appoint an independent administrative law judge 6 to preside over any hearing or proceeding before the board. 7 Sections 10A.801 and 17A.11 do not apply to the employment or 8 appointment of an administrative law judge pursuant to this 9 subsection. 10 Sec. 2. Section 476.10, subsection 1, paragraph b, Code 11 2021, is amended to read as follows: 12 b. The board shall ascertain the total of the division’s 13 expenses incurred during each fiscal year in the performance 14 of its duties under law. The board shall add to the total of 15 the division’s expenses the certified expenses of the consumer 16 advocate as provided under section 475A.6 . The board shall 17 deduct all amounts charged directly to any person from the 18 total expenses of the board and the consumer advocate. The 19 board may assess the amount remaining after the deduction 20 to all persons providing service over which the board has 21 jurisdiction in proportion to the respective gross operating 22 revenues of such persons from intrastate operations during the 23 last calendar year over which the board has jurisdiction. For 24 purposes of determining gross operating revenues under this 25 section , the board shall not include gross receipts received 26 by a cooperative corporation or association for wholesale 27 transactions with members of the cooperative corporation 28 or association, provided that the members are subject to 29 assessment by the board based upon the members’ gross operating 30 revenues, or provided that such a member is an association 31 whose members are subject to assessment by the board based 32 upon the members’ gross operating revenues. If any portion 33 of the remainder can be identified with a specific type of 34 utility service, the board shall assess those expenses only 35 -1- LSB 1351HZ (2) 89 jda/rn 1/ 7

H.F. 693 to the entities providing that type of service over which the 1 board has jurisdiction. The board may make the remainder 2 assessments under this paragraph on a quarterly basis to some 3 or all persons providing service over which the board has 4 jurisdiction , based upon estimates of the expenditures for 5 the fiscal year for the utilities division and the consumer 6 advocate. Not more than ninety days following the close of the 7 fiscal year, the utilities division shall conform the amount of 8 the prior fiscal year’s assessments to the requirements of this 9 paragraph. For gas and electric public utilities exempted from 10 rate regulation pursuant to this chapter , and for providers 11 of telecommunications service required to register with the 12 board pursuant to section 476.95A that are exempted from rate 13 regulation pursuant to this chapter, the remainder assessments 14 under this paragraph shall be computed at one-half the rate 15 used in computing the assessment for other persons. 16 DIVISION II 17 PIPELINE 18 Sec. 3. Section 479.31, subsection 1, Code 2021, is amended 19 to read as follows: 20 1. A person who violates this chapter or any rule or 21 order issued pursuant to this chapter shall be subject to a 22 civil penalty levied by the board not to exceed one hundred 23 thousand dollars for each violation in accordance with 49 24 C.F.R. §190.223 . Each day that the violation continues shall 25 constitute a separate offense. However, the maximum civil 26 penalty shall not exceed one million dollars for any related 27 series of violations. Civil penalties collected pursuant to 28 this section shall be forwarded by the chief operating officer 29 of the board to the treasurer of state to be credited to the 30 general fund of the state and appropriated to the division of 31 community action agencies of the department of human rights for 32 purposes of the low income home energy assistance program and 33 the weatherization assistance program. 34 Sec. 4. Section 479A.7, Code 2021, is amended to read as 35 -2- LSB 1351HZ (2) 89 jda/rn 2/ 7

H.F. 693 follows: 1 479A.7 Annual inspection fee. 2 A The board may, in accordance with section 476.10, charge 3 a pipeline company shall pay with an annual inspection fee of 4 fifty cents per mile of pipeline or fraction thereof for each 5 inch of diameter of the pipeline located in this state that 6 is directly attributable to the costs of conducting annual 7 inspections pursuant to this chapter . The annual inspection 8 fee shall be paid for the calendar year in advance between 9 January 1 and February 1 of each year. 10 DIVISION III 11 TELECOMMUNICATIONS SERVICES 12 Sec. 5. Section 34A.2, subsections 8 and 14, Code 2021, are 13 amended to read as follows: 14 8. “Competitive local exchange service provider” means the 15 same as defined in section 476.96 any person, including a 16 municipal utility, that provides local exchange services, other 17 than a local exchange carrier or a non-rate-regulated wireline 18 provider of local exchange services under an authorized 19 certificate of public convenience and necessity within a 20 specific geographic area described in maps filed with and 21 approved by the board as of September 30, 1992 . 22 14. “Local exchange carrier” means the same as defined in 23 section 476.96 any person that was the incumbent and historical 24 rate-regulated wireline provider of local exchange services 25 or any successor to such person that provides local exchange 26 services under an authorized certificate of public convenience 27 and necessity within a specific geographic area described in 28 maps filed with and approved by the board as of September 30, 29 1992 . 30 Sec. 6. Section 423.3, subsection 47A, Code 2021, is amended 31 to read as follows: 32 47A. a. The sales price from the sale or rental of central 33 office equipment or transmission equipment primarily used 34 by local exchange carriers and competitive local exchange 35 -3- LSB 1351HZ (2) 89 jda/rn 3/ 7

H.F. 693 service providers as defined in section 476.96 , Code 2017 ; 1 by franchised cable television operators, mutual companies, 2 municipal utilities, cooperatives, and companies furnishing 3 communications services that are not subject to rate regulation 4 as provided in chapter 476 ; by long distance companies as 5 defined in section 477.10 ; or for a commercial mobile radio 6 service as defined in 47 C.F.R. §20.3 in the furnishing of 7 telecommunications services on a commercial basis. 8 b. For the purposes of this subsection , “central : 9 (1) “Central office equipment” means equipment utilized 10 in the initiating, processing, amplifying, switching, or 11 monitoring of telecommunications services. “Central office 12 equipment” also includes ancillary equipment and apparatus 13 which support, regulate, control, repair, test, or enable such 14 equipment to accomplish its function. 15 (2) “Competitive local exchange service provider” means any 16 person, including a municipal utility, that provides local 17 exchange services, other than a local exchange carrier or a 18 non-rate-regulated wireline provider of local exchange services 19 under an authorized certificate of public convenience and 20 necessity within a specific geographic area described in maps 21 filed with and approved by the board as of September 30, 1992. 22 (3) “Local exchange carrier” means any person that was 23 the incumbent and historical rate-regulated wireline provider 24 of local exchange services or any successor to such person 25 that provides local exchange services under an authorized 26 certificate of public convenience and necessity within a 27 specific geographic area described in maps filed with and 28 approved by the board as of September 30, 1992. 29 (4) “Transmission equipment” means equipment utilized 30 in the process of sending information from one location to 31 another location. “Central office equipment” and “transmission 32 “Transmission equipment” also include includes ancillary 33 equipment and apparatus which support, regulate, control, 34 repair, test, or enable such equipment to accomplish its 35 -4- LSB 1351HZ (2) 89 jda/rn 4/ 7

H.F. 693 function. 1 Sec. 7. Section 477C.7, subsection 2, Code 2021, is amended 2 to read as follows: 3 2. The entities subject to assessment shall remit the 4 assessed amounts quarterly , as determined by the board, to a 5 special fund, as defined under section 8.2, subsection 9 . The 6 moneys in the fund are appropriated solely to plan, establish, 7 administer, and promote the relay service and equipment 8 distribution programs. 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 relates to matters under the purview of the 13 utilities division of the department of commerce. 14 The bill provides the Iowa utilities board with authority 15 to employ or appoint an independent administrative law judge 16 to preside over any hearing or proceeding before the board. 17 Certain provisions applicable to the employment or appointment 18 of administrative law judges by state agencies do not apply to 19 appointments by the board. 20 Current law requires the board to deduct all amounts charged 21 directly to any person subject to the jurisdiction of the 22 board for providing utility services from the total annual 23 expenses of the board and the consumer advocate. The board may 24 assess the remaining amount on a quarterly basis to all persons 25 providing service over which the board has jurisdiction in 26 proportion to their respective gross operating revenues. The 27 bill strikes the requirement that these assessments be made on 28 a quarterly basis and allows the board to make the assessments 29 to some or all persons providing service over which the board 30 has jurisdiction. The bill establishes that, for providers 31 of telecommunications service required to register with the 32 board that are exempted from rate regulation, the remainder of 33 the assessments shall be computed at one-half the rate used in 34 computing assessments for other persons. 35 -5- LSB 1351HZ (2) 89 jda/rn 5/ 7

H.F. 693 Current law allows the board to impose a civil penalty of up 1 to $100,000 for each violation of Code chapter 479, relating 2 to pipelines and underground gas storage, or any rule or order 3 issued pursuant to the Code chapter, provided that the maximum 4 penalty does not exceed $1 million for any related series of 5 violations. The bill removes these maximum amounts and instead 6 provides that a civil penalty levied by the board shall be in 7 accordance with specified federal law. 8 Current law requires pipeline companies operating pipelines 9 or underground gas storage under Code chapter 479A to pay the 10 board an annual inspection fee of 50 cents for each mile of 11 pipeline located in Iowa. The bill removes this set fee and 12 instead allows the board to charge pipeline companies with 13 annual inspection fees that are directly attributable to the 14 costs of conducting inspections. 15 The bill removes cross references in Code section 34A.2 16 to repealed Code section 476.96, which included definitions 17 for “competitive local exchange service provider” and “local 18 exchange carrier”, and provides new definitions for such terms. 19 “Competitive local exchange service provider” is defined as 20 any person, including a municipal utility, that provides local 21 exchange services, other than a local exchange carrier or a 22 non-rate-regulated wireline provider of local exchange services 23 under an authorized certificate of public convenience and 24 necessity within a specific geographic area described in maps 25 filed with the board as of September 30, 1992. “Local exchange 26 carrier” is defined as any person that was the incumbent and 27 historical rate-regulated wireline provider of local exchange 28 services or any successor to such person that provides local 29 exchange services under an authorized certificate of public 30 convenience and necessity within a specific geographic area 31 described in maps filed with the board as of September 30, 32 1992. 33 The bill amends Code section 423.3, subsection 47A, to 34 modify the definitions of “central office equipment” and 35 -6- LSB 1351HZ (2) 89 jda/rn 6/ 7

H.F. 693 “transmission equipment”. The bill provides “central office 1 equipment” includes ancillary equipment and apparatus which 2 enable central office equipment to accomplish its function. 3 Additionally, the bill provides “transmission equipment”, 4 including ancillary equipment and apparatus which enable 5 transmission equipment, to accomplish its function. 6 The bill defines “competitive local exchange service 7 provider”, for purposes of Code section 423.3, subsection 47A, 8 as any person, including a municipal utility, that provides 9 local exchange services, other than a local exchange carrier 10 or a non-rate-regulated wireline provider of local exchange 11 services under an authorized certificate of public convenience 12 and necessity within a specific geographic area described in 13 maps filed with the board as of September 30, 1992. The bill 14 defines “local exchange carrier”, for purposes of Code section 15 423.3, subsection 47A, as any person that was the incumbent and 16 historical rate-regulated wireline provider of local exchange 17 services or any successor to such person that provides local 18 exchange services under an authorized certificate of public 19 convenience and necessity within a specific geographic area 20 described in maps filed with the board as of September 30, 21 1992. 22 Current law requires wireless carriers and wireline local 23 exchange carriers providing telecommunications service in the 24 state to remit the amounts assessed to fund the dual party 25 relay service to a special fund on a quarterly basis. The bill 26 provides that these remittances will be made as determined by 27 the board. 28 -7- LSB 1351HZ (2) 89 jda/rn 7/ 7