H.F. 2279 DIVISION I 1 ENERGY PRODUCTION 2 Section 1. Section 476.42, subsection 1, paragraph a, 3 subparagraph (1), Code 2024, is amended to read as follows: 4 (1) A solar, wind turbine, electric storage unit, nuclear, 5 waste management, resource recovery, refuse-derived fuel, 6 agricultural crops or residues, or woodburning facility. For 7 purposes of this definition only, “waste management” includes a 8 facility using plasma gasification to produce synthetic gas, 9 either as a stand-alone fuel or for blending with natural gas, 10 the output of which is used to generate electricity or steam. 11 For purposes of this definition only, “plasma gasification” 12 means the thermal dissociation of carbonaceous material into 13 fragments of compounds in an oxygen-starved environment. 14 Sec. 2. Section 476.48, subsection 6, Code 2024, is amended 15 by striking the subsection. 16 Sec. 3. Section 476A.1, subsection 5, Code 2024, is amended 17 to read as follows: 18 5. “Facility” means any electric power generating plant , 19 electric storage unit, or a combination of plants or units at 20 a single site, owned by any person, with a total capacity of 21 twenty-five megawatts of electricity for plants or twenty-five 22 or more megawatt hours of electricity for electric storage 23 units, and those associated transmission lines connecting the 24 generating plant or electric storage unit to either a power 25 transmission system or an interconnected primary transmission 26 system or both. Transmission lines subject to the provisions 27 of this subchapter shall not require a franchise under chapter 28 478 . 29 DIVISION II 30 PUBLIC UTILITY AFFILIATES 31 Sec. 4. Section 476.74, subsection 5, Code 2024, is amended 32 to read as follows: 33 5. Exemption. The provisions of this section requiring 34 filing of contracts or agreements with the board shall not 35 -1- LSB 5445HV (1) 90 lh/js 1/ 16

H.F. 2279 apply to transactions with an affiliate where the amount of 1 consideration involved is not in excess of fifty thousand 2 dollars or five percent of the capital equity of the utility, 3 whichever is smaller two hundred fifty thousand dollars . 4 However, regularly recurring payments under a general or 5 continuing arrangement which that aggregate a greater annual 6 amount shall not be broken down into a series of transactions 7 to come within this exemption. In any proceeding involving 8 the rates, charges , or practices of the public utility, the 9 board may exclude from the accounts of the public utility any 10 unreasonable payment or compensation made pursuant to any 11 contract or arrangement which that is not required to be filed 12 under this subsection . 13 DIVISION III 14 CABLE OR VIDEO SERVICE 15 Sec. 5. Section 474.1, subsection 4, Code 2024, is amended 16 to read as follows: 17 4. As used in this chapter and chapters 475A , 476 , 476A , 18 477A, 477C , 478 , 479 , 479A , and 479B , “board” and “utilities 19 board” mean the Iowa utilities board. 20 Sec. 6. Section 477A.1, Code 2024, is amended by adding the 21 following new subsections: 22 NEW SUBSECTION . 2A. “Cable or video service” includes the 23 terms “cable service” , “cable system” , and “video service” . 24 NEW SUBSECTION . 4A. “Competitive cable or video service 25 provider” includes the terms “competitive cable service provider” 26 and “competitive video service providers” . 27 Sec. 7. Section 477A.1, subsection 7, Code 2024, is amended 28 to read as follows: 29 7. “Franchise” means an initial authorization, or renewal 30 of an authorization, issued by the board or a municipality, 31 regardless of whether the authorization is designated as a 32 franchise, permit, license, resolution, contract, certificate, 33 agreement, or otherwise, that authorizes the construction and 34 operation of a cable system person to erect, maintain, and 35 -2- LSB 5445HV (1) 90 lh/js 2/ 16

H.F. 2279 operate plants and systems for the provision of a cable or 1 video service provider’s network in a public right-of-way. 2 Sec. 8. Section 477A.1, subsection 9, paragraph a, Code 3 2024, is amended to read as follows: 4 a. “Gross revenues” means all consideration of any kind or 5 nature, including but not limited to cash, credits, property, 6 and in-kind contributions , received from subscribers for the 7 provision of cable service over a cable system by a competitive 8 cable service provider or for the provision of or video service 9 by a competitive cable or video service provider within a 10 municipality’s jurisdiction. Gross revenues are limited to the 11 following: 12 (1) Recurring charges for cable service or video service. 13 (2) Event-based charges for cable service or video service, 14 including but not limited to pay-per-view and video-on-demand 15 charges. 16 (3) Rental of set-top boxes and other cable service or video 17 service equipment. 18 (4) Service charges related to the provision of cable 19 service or video service, including but not limited to 20 activation, installation, and repair charges. 21 (5) Administrative charges related to the provision of 22 cable service or video service, including but not limited to 23 service order and service termination charges. 24 (6) A pro rata portion of all revenue derived, less refunds, 25 rebates, or discounts, by a cable service provider or a video 26 service provider for advertising over the cable service or 27 video service network to subscribers within the franchise area 28 where the numerator is the number of subscribers within the 29 franchise area, and the denominator is the total number of 30 subscribers reached by such advertising. This subparagraph 31 applies only to municipalities that include this provision in 32 their franchise agreements as of January 1, 2007. 33 Sec. 9. Section 477A.1, subsection 9, paragraph b, 34 subparagraphs (2), (4), (5), (6), (7), (8), (9), and (11), Code 35 -3- LSB 5445HV (1) 90 lh/js 3/ 16

H.F. 2279 2024, are amended to read as follows: 1 (2) Revenues received by any affiliate or any other person 2 in exchange for supplying goods or services used by the person 3 providing cable service or video service. 4 (4) Regardless of whether the services are bundled, 5 packaged, or functionally integrated with cable service 6 or video service, any revenues derived by the holder of 7 a certificate of franchise authority from services not 8 classified as cable service or video service, including, 9 without limitation, revenue received from telecommunications 10 services, revenue received from information services, revenue 11 received in connection with home-shopping services, or any 12 other revenues attributed by the competitive cable service 13 provider or competitive video service provider to noncable 14 service or nonvideo service in accordance with the holder’s 15 books and records kept in the regular course of business and 16 any applicable rules, regulations, standards, or orders. 17 (5) Revenues paid by subscribers to home-shopping 18 programmers directly from the sale of merchandise through any 19 home-shopping channel offered as part of the cable services or 20 video services. 21 (6) Revenues from the sale of cable services or video 22 services for resale in which the purchaser is required to 23 collect the franchise fee from the purchaser’s customer. 24 (7) Revenues from any tax of general applicability imposed 25 upon the competitive cable service provider or competitive 26 video service provider or upon subscribers by a city, state, 27 federal, or any other governmental entity and required to 28 be collected by the competitive cable service provider or 29 competitive video service provider and remitted to the taxing 30 entity, including but not limited to sales or use tax, gross 31 receipts tax, excise tax, utility users tax, public service 32 tax, and communication taxes, and including the franchise fee 33 imposed under section 477A.7 . 34 (8) Revenues forgone from the provision of cable services 35 -4- LSB 5445HV (1) 90 lh/js 4/ 16

H.F. 2279 or video services to public institutions, public schools, or 1 governmental entities at no charge. 2 (9) Revenues forgone from the competitive cable service 3 provider’s or competitive video service provider’s provision of 4 free or reduced-cost video service to any person, including, 5 without limitation, any municipality and other public 6 institutions or other institutions. 7 (11) Revenues from reimbursements by programmers of 8 marketing costs incurred by the competitive cable service 9 provider or competitive video service provider for the 10 introduction or promotion of new programming. 11 Sec. 10. Section 477A.2, Code 2024, is amended to read as 12 follows: 13 477A.2 Certificate of franchise authority requirement. 14 1. After July 1, 2007, a person providing cable service 15 or video service in this state shall not provide such service 16 without a franchise. The franchise may be issued by either the 17 board pursuant to section 477A.3 or by a municipality pursuant 18 to section 364.2 . 19 2. a. A person providing cable service or video service 20 under a franchise agreement with a municipality prior to July 21 1, 2007, is not subject to this section with respect to such 22 municipality until the franchise agreement expires or is 23 converted pursuant to subsection 6 . 24 b. Upon expiration of a franchise, a person may choose to 25 renegotiate a franchise agreement with a municipality or may 26 choose to obtain a certificate of franchise authority under 27 this chapter . An application for a certificate of franchise 28 authority pursuant to this subsection may be filed within 29 sixty days prior to the expiration of a municipal franchise 30 agreement. A certificate of franchise authority obtained 31 pursuant to an application filed prior to the expiration of 32 a municipal franchise agreement shall take effect upon the 33 expiration date of the municipal franchise agreement. 34 c. A municipal utility that provides cable service or 35 -5- LSB 5445HV (1) 90 lh/js 5/ 16

H.F. 2279 video service in this state is not subject to this section and 1 shall not be required to obtain a certificate of franchise 2 authority pursuant to this chapter in the municipality in 3 which the provision of cable service or video service by that 4 municipality was originally approved. 5 3. For purposes of this section , a person providing 6 cable service or video service is deemed to have executed a 7 franchise agreement to provide cable service or video service 8 with a specific municipality if an affiliate or predecessor 9 of the person providing cable service or video service has 10 or had executed an unexpired franchise agreement with that 11 municipality as of May 29, 2007. 12 4. A competitive cable service provider or competitive 13 video service provider shall provide at least thirty days’ 14 notice to each municipality with authority to grant a franchise 15 in the service area, and to the incumbent cable or video 16 provider, in which the competitive cable service provider or 17 competitive video service provider is granted authority to 18 provide service under a certificate of franchise authority that 19 the competitive cable service provider or competitive video 20 service provider will offer cable services or video services 21 within the jurisdiction of the municipality, and shall not 22 provide service without having provided such thirty days’ 23 notice. A copy of the notice shall be filed with the board on 24 the date that the notice is provided. All notices required by 25 this subsection shall be sent by certified mail. 26 5. As used in this section , “affiliate” includes but is 27 not limited to a person that directly, or indirectly through 28 one or more intermediaries, controls, is controlled by, or is 29 under common control with a person receiving, obtaining, or 30 operating under a franchise agreement with a municipality to 31 provide cable service or video service through merger, sale, 32 assignment, restructuring, or any other type of transaction. 33 6. If a competitive cable service provider or a competitive 34 video service provider applies for a certificate of franchise 35 -6- LSB 5445HV (1) 90 lh/js 6/ 16

H.F. 2279 authority to operate within a municipality, the incumbent 1 cable provider may, at its discretion, apply for a certificate 2 of franchise authority for that same municipality. Such 3 application shall be automatically granted on the same day 4 as a competitive cable service provider or competitive video 5 service provider files a thirty days’ notice of offering 6 service as required pursuant to subsection 4 . The franchise 7 agreement with the municipality is terminated on the date the 8 board issues the certificate of franchise authority to an 9 incumbent cable provider. The terms and conditions of the 10 certificate of franchise authority shall be the same as the 11 terms and conditions of a competitive cable service provider or 12 a competitive video service provider pursuant to this chapter 13 and shall replace the terms and conditions of the franchise 14 agreement previously granted by the municipality. 15 Sec. 11. Section 477A.3, subsection 1, paragraphs a, c, d, 16 and f, Code 2024, are amended to read as follows: 17 a. That the applicant has filed or will timely file with 18 the federal communications commission all forms required by 19 the commission in advance of offering cable service or video 20 service in this state. 21 c. That the applicant agrees to comply with all applicable 22 state laws and nondiscriminatory municipal ordinances and 23 regulations regarding the use and occupation of a public 24 right-of-way in the delivery of the cable service or video 25 service, to the extent consistent with this chapter , including 26 the police powers of the municipalities in which the service 27 is delivered. 28 d. A description of the service area to be served and the 29 municipalities to be served by the applicant , which may include 30 certain designations of unincorporated areas. This description 31 shall be updated by the applicant prior to the expansion of 32 cable service or video service to a previously undesignated 33 service area and, upon such expansion, notice shall be given to 34 the board of the service area to be served by the applicant. 35 -7- LSB 5445HV (1) 90 lh/js 7/ 16

H.F. 2279 f. Documentation that the applicant possesses sufficient 1 managerial, technical, and financial capability to provide the 2 cable service or video service proposed in the service area. 3 Sec. 12. Section 477A.3, subsection 1, paragraph g, Code 4 2024, is amended by striking the paragraph. 5 Sec. 13. Section 477A.3, subsections 5 and 9, Code 2024, are 6 amended to read as follows: 7 5. The certificate of franchise authority issued by the 8 board shall contain all of the following: 9 a. A grant of authority to provide cable service or video 10 service in the service area designated in the application. 11 b. A grant of authority to use and occupy the public 12 right-of-way in the delivery for the purpose of erecting, 13 maintaining, and operating plants and systems for the provision 14 of cable service or video service, subject to the laws of this 15 state, including the police powers of the municipalities in 16 which the service is delivered. 17 c. A statement that the grant of authority provided by the 18 certificate is subject to the lawful operation of the cable 19 service or video service by the applicant or the applicant’s 20 successor. 21 d. A statement that the franchise is for a term of ten 22 twenty-five years, is renewable under the terms of this 23 section , and is nonexclusive. 24 9. The certificate of franchise authority issued by the 25 board may be terminated by a person providing cable service or 26 video service by submitting written notice to the board and 27 any affected municipality. Neither the board nor an affected 28 municipality shall have authority to review or require approval 29 of such termination. 30 Sec. 14. Section 477A.3, subsection 6, paragraph a, Code 31 2024, is amended to read as follows: 32 a. If the holder of a certificate of franchise authority 33 fails to commence operation of a cable system or video service 34 network within twelve months from the date the application is 35 -8- LSB 5445HV (1) 90 lh/js 8/ 16

H.F. 2279 granted, the board may determine that the applicant is not in 1 compliance with the certificate of franchise authority and may 2 revoke the certificate. 3 Sec. 15. Section 477A.3, subsection 7, paragraph a, Code 4 2024, is amended to read as follows: 5 a. In the event that an applicant granted a certificate 6 of franchise authority subsequently ceases to engage in 7 construction or operation of a cable system or video service 8 network and is no longer providing service, the applicant 9 shall notify the municipality, the board, and the incumbent 10 cable provider on the date that construction or service is 11 terminated. 12 Sec. 16. Section 477A.4, Code 2024, is amended to read as 13 follows: 14 477A.4 Applicability to federal law. 15 To the extent required by applicable law, a certificate of 16 franchise authority issued under this chapter shall constitute 17 a “franchise” for the purposes of 47 U.S.C. §541(b)(1). To 18 the extent required for the purposes of 47 U.S.C. §521 – 19 561, only the state of Iowa shall constitute the exclusive 20 franchising authority for competitive cable service providers 21 and competitive video service providers in this state. 22 Sec. 17. Section 477A.6, subsections 1 and 2, Code 2024, are 23 amended to read as follows: 24 1. Not later than one hundred eighty days after a request by 25 a municipality in which a competitive cable service provider or 26 a competitive video service provider is providing cable service 27 or video service, the holder of the certificate of authority 28 for that municipality shall designate a sufficient amount of 29 capacity on the certificate holder’s communications network 30 to allow the provision of a comparable number of public, 31 educational, and governmental channels that the incumbent cable 32 provider in the municipality has activated and provided in the 33 municipality under the terms of a franchise agreement with a 34 municipality prior to July 1, 2007. If no such channels are 35 -9- LSB 5445HV (1) 90 lh/js 9/ 16

H.F. 2279 active, the municipality may request a maximum of three public, 1 educational, and governmental channels for a municipality 2 with a population of at least fifty thousand, and a maximum 3 of two public, educational, and governmental channels for a 4 municipality with a population of less than fifty thousand. 5 a. The public, educational, and governmental content to 6 be provided pursuant to this section and the operation of 7 the public, educational, and governmental channels shall be 8 the responsibility of the municipality receiving the benefit 9 of such capacity. The holder of a certificate of franchise 10 authority shall be responsible only for the transmission of 11 such content, subject to technological restraints. 12 b. The municipality receiving capacity under this section 13 shall ensure that all transmissions, content, or programming to 14 be transmitted by the holder of the certificate of franchise 15 authority are provided or submitted to the competitive 16 cable service provider or competitive video service provider 17 in a manner or form that is capable of being accepted and 18 transmitted by the competitive cable service provider or 19 competitive video service provider, without requirement for 20 additional alteration or change in the content, over the 21 particular network of the competitive cable service provider 22 or competitive video service provider, which is compatible 23 with the technology or protocol utilized by the competitive 24 cable service provider or competitive video service provider 25 to deliver services. At its election the municipality may 26 reasonably request any cable service provider or video service 27 provider to make any necessary change to the form of any 28 programming, furnished for transmission, which shall be charged 29 to the municipality, not to exceed the provider’s incremental 30 costs. The municipality shall have up to twelve months to 31 reimburse the cable service provider or video service provider. 32 The provision of such transmissions, content, or programming 33 to the competitive cable service provider or competitive video 34 service provider shall constitute authorization for such 35 -10- LSB 5445HV (1) 90 lh/js 10/ 16

H.F. 2279 holder to carry such transmissions, content, or programming, 1 at the holder’s option, beyond the jurisdictional boundaries 2 stipulated in any franchise agreement. 3 2. Where technically feasible, a competitive cable service 4 provider or competitive video service provider that is a holder 5 of a certificate of franchise authority and an incumbent 6 cable provider shall use reasonable efforts to interconnect 7 the cable or video communications network systems of the 8 certificate holder and incumbent cable provider for the purpose 9 of providing public, educational, and governmental programming. 10 Interconnection may be accomplished by direct cable, microwave 11 link, satellite, or other reasonable method of connection. A 12 holder of a certificate of franchise authority and an incumbent 13 cable provider shall negotiate in good faith and an incumbent 14 cable provider shall not withhold interconnection of public, 15 educational, or governmental channels. 16 Sec. 18. Section 477A.7, subsections 1 and 3, Code 2024, are 17 amended to read as follows: 18 1. a. In any service area in which a competitive cable 19 service provider or a competitive video service provider 20 holding a certificate of franchise authority offers or provides 21 cable service or video service, the competitive cable service 22 provider or competitive video service provider shall calculate 23 and pay a franchise fee to the municipality with authority to 24 grant a certificate of franchise authority in that service area 25 upon the municipality’s written request. If the municipality 26 makes such a request, the franchise fee shall be due and paid 27 to the municipality on a quarterly basis, not later than 28 forty-five days after the close of the quarter, and shall be 29 calculated as a percentage of gross revenues. The municipality 30 shall not demand any additional franchise fees from the 31 competitive cable service provider or competitive video service 32 provider, and shall not demand the use of any other calculation 33 method for the franchise fee. 34 b. All cable service providers and video service providers 35 -11- LSB 5445HV (1) 90 lh/js 11/ 16

H.F. 2279 shall pay a franchise fee at the same percent of gross revenues 1 as had been assessed on the incumbent cable provider by the 2 municipality as of January 1, 2007, and such percentage shall 3 continue to apply for the period of the remaining term of the 4 existing franchise agreement with the municipality. Upon 5 expiration of the period of the remaining term of the agreement 6 with the incumbent cable service provider, a municipality may 7 request an increase in the franchise fee up to five percent of 8 gross revenues. 9 c. A provider who is both a competitive cable service 10 provider and a competitive video service provider shall be 11 subject to and only be required to pay one franchise fee to a 12 municipality under this subsection regardless of whether the 13 provider provides both cable service and video service. 14 d. At the request of a municipality and not more than once 15 per year, an independent auditor may perform reasonable audits 16 of the competitive cable service provider’s or competitive 17 video service provider’s calculation of the franchise fee under 18 this subsection . The municipality shall bear the costs of 19 any audit requested pursuant to this subsection , unless the 20 audit discloses that the competitive cable service provider or 21 competitive video service provider has underpaid franchise fees 22 by more than five percent, in which case the competitive cable 23 service provider or competitive video service provider shall 24 pay all of the reasonable and actual costs of the audit. 25 e. A competitive cable service provider or competitive video 26 service provider may identify and collect the amount of the 27 franchise fee as a separate line item on the regular bill of 28 each subscriber. 29 3. a. If an incumbent cable provider is required by 30 a franchise agreement as of January 1, 2007, to provide 31 institutional network capacity to a municipality for use by 32 the municipality for noncommercial purposes, the incumbent 33 cable provider and any subsequent holder of a certificate of 34 franchise authority shall provide support only for the existing 35 -12- LSB 5445HV (1) 90 lh/js 12/ 16

H.F. 2279 institutional network on a pro rata basis per customer. Any 1 financial support provided for an institutional network shall 2 be limited to ongoing maintenance and support of the existing 3 institutional network. This subsection shall be applicable 4 only to a cable service provider’s or video service provider’s 5 first certificate of franchise authority issued under this 6 chapter , and shall not apply to any subsequent renewals. For 7 the purposes of this subsection , maintenance and support shall 8 only include the reasonable incremental cost of moves, changes, 9 and restoring connectivity of the fiber or coaxial cable lines 10 up to a demarcation point at the building. 11 b. For purposes of this subsection , the number of customers 12 of a cable service provider or video service provider shall 13 be determined based on the relative number of subscribers in 14 that municipality at the end of the prior calendar year as 15 reported to the municipality by all incumbent cable providers 16 and holders of a certificate of franchise authority. Any 17 records showing the number of subscribers shall be considered 18 confidential records pursuant to section 22.7 . The incumbent 19 cable provider shall provide to the municipality, on an annual 20 basis, the maintenance and support costs of the institutional 21 network, subject to an independent audit. A municipality 22 acting under this subsection shall notify and present a bill 23 to competitive cable service providers or competitive video 24 service providers for the amount of such support on an annual 25 basis, beginning one year after issuance of the certificate of 26 franchise authority. The annual institutional network support 27 shall be due and paid by the providers to the municipality in 28 four quarterly payments, not later than forty-five days after 29 the close of each quarter. The municipality shall reimburse 30 the incumbent cable provider for the amounts received from 31 competitive cable service providers or competitive video 32 service providers. 33 c. This subsection shall not apply if the incumbent 34 cable service provider is a municipal utility providing 35 -13- LSB 5445HV (1) 90 lh/js 13/ 16

H.F. 2279 telecommunications services under section 388.10 . 1 Sec. 19. Section 477A.10, subsection 2, Code 2024, is 2 amended to read as follows: 3 2. A competitive cable service provider or competitive 4 video service provider holding a certificate of franchise 5 authority shall not deny access to any group of potential 6 residential subscribers because of the income of residents in 7 the local area in which such group resides. 8 Sec. 20. Section 477A.10, subsection 3, paragraph a, 9 subparagraph (3), Code 2024, is amended to read as follows: 10 (3) These dwelling units do not have cable or video service 11 available from another cable service provider or video service 12 provider. 13 Sec. 21. Section 477A.10, subsection 3, paragraph b, Code 14 2024, is amended to read as follows: 15 b. This subsection shall be applicable only after the first 16 date on which the video service provider operating under a 17 certificate of franchise authority is providing cable service 18 or video service to more than fifty percent of all cable and 19 video subscribers receiving cable or video service from the 20 holders of certificates of franchise authority and any other 21 providers of cable or video services operating under franchise 22 agreements with a municipality. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill relates to public utilities, including energy 27 production, public utility affiliates, and cable and video 28 service. 29 DIVISION I. Division I of the bill relates to energy 30 production. Current law defines an “alternate energy 31 production facility” as a solar, wind turbine, waste 32 management, resource recovery, refuse-derived fuel, 33 agricultural crops or residues, or woodburning facility. The 34 bill adds an electric storage unit facility and a nuclear 35 -14- LSB 5445HV (1) 90 lh/js 14/ 16

H.F. 2279 facility to the definition. 1 Under current law, the Iowa utilities board (IUB) 2 administers a small wind innovation zone program to optimize 3 local, regional, and state benefits from wind energy and to 4 facilitate and expedite interconnection of small wind energy 5 systems with electric utilities throughout Iowa. IUB is 6 required to submit to the general assembly an annual report 7 summarizing the number of applications received from political 8 subdivisions seeking to be designated a small wind innovation 9 zone, the number of applications granted, the number of small 10 wind energy systems generating electricity within each small 11 wind innovation zone, and the amount of wind energy produced. 12 The bill strikes the reporting requirement. 13 Current law defines “facility”, for purposes of electric 14 power generating and transmission, as any electric power 15 generating plant or a combination of plants at a single site, 16 owned by any person, with a total capacity of 25 megawatts of 17 electricity or more and those associated transmission lines 18 connecting the generating plant to either a power transmission 19 system or an interconnected primary transmission system or 20 both. The bill includes in the definition of “facility” an 21 electric storage unit with a capacity of 25 or more megawatt 22 hours of electricity. 23 DIVISION II. Division II of the bill relates to public 24 utility affiliates. A public utility affiliate is a party that 25 directly, or indirectly through one or more intermediaries, 26 controls, is controlled by, or is under common control with a 27 rate-regulated public utility. Under current law, a public 28 utility affiliate is required to file documents relating to 29 certain transactions with IUB on an annual basis unless, 30 subject to certain restrictions, the amount of consideration 31 involved is not in excess of $50,000 or 5 percent of the 32 capital equity of the utility, whichever is smaller. The bill 33 changes the threshold amount to $250,000 regardless of the 34 capital equity of the utility. 35 -15- LSB 5445HV (1) 90 lh/js 15/ 16

H.F. 2279 DIVISION III. Division III of the bill relates to the 1 provision of cable and video service. The bill defines the 2 phrases “cable or video service” and “competitive cable or 3 video service provider” to indicate the inclusion of terms 4 defined in current law. 5 Current law defines “franchise”, in relation to cable or 6 video service, as an initial authorization, or renewal of an 7 authorization, issued by IUB or a municipality, to construct 8 and operate a cable system or video service provider’s network 9 in a public right-of-way. The bill removes “construction 10 and operation” from the definition and instead refers to the 11 authorization of a person to erect, maintain, and operate 12 plants and systems for the provision of a cable or video 13 service provider’s network in a public right-of-way. 14 Current law requires an applicant for a certificate of 15 franchise authority to include in its application copies of 16 advertisements or news releases announcing the applicant’s 17 intent to provide cable service or video service in the service 18 area intended for release if the certificate of franchise 19 authority is granted. The bill strikes that requirement. 20 Current law requires a certificate of franchise authority 21 to include a grant of authority to use and occupy the public 22 right-of-way in the delivery of cable or video service, subject 23 to the laws of this state, including the police powers of the 24 municipalities in which the service is delivered. The bill 25 amends this requirement so the certificate instead grants 26 authority to use and occupy the public right-of-way for the 27 purpose of erecting, maintaining, and operating plants and 28 systems for the provision of cable or video service. Current 29 law also requires the certificate to include a statement that 30 the franchise is for a term of 10 years, is renewable under 31 the terms of this Code section, and is nonexclusive. The bill 32 lengthens the term of a franchise to 25 years. 33 -16- LSB 5445HV (1) 90 lh/js 16/ 16