House Study Bill 513 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED UTILITIES COMMISSION BILL) A BILL FOR An Act relating to the administration of the utilities 1 commission, including the creation of the position of 2 executive director and modification of the duties and titles 3 of the chairperson and executive staff. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5529DP (3) 91 sb/js

S.F. _____ H.F. _____ Section 1. Section 474.1, subsection 2, Code 2026, is 1 amended to read as follows: 2 2. a. Subject to confirmation by the senate, the governor 3 shall appoint a member as the chairperson of the commission. 4 The chairperson shall be the administrator of the utilities 5 commission. The chairperson or designated presiding officer 6 shall preside over contested cases, as defined by section 7 17A.2, meetings, as defined by section 21.2, or other 8 proceedings. The appointment as chairperson shall be for a 9 two-year term , which begins and ends as provided in section 10 69.19 . 11 b. The commission , by majority vote of the members, shall 12 appoint a chief operating officer an executive director to 13 manage the operations of the utilities commission and its staff 14 under the direction of the commission. The executive director 15 shall not serve as a member of the commission and shall serve 16 at the pleasure of the commission . The commission shall set 17 the salary of the chief operating officer executive director 18 within the limits of the pay plan for exempt positions provided 19 for in section 8A.413, subsection 3 , unless otherwise provided 20 by the general assembly. The initial appointment of the first 21 executive director after the effective date of this Act shall 22 be exempt from the requirements of section 8A.412 and all 23 provisions of chapter 8A relating to competitive recruitment, 24 examination, and selection processes for classified employees. 25 Following the termination of the service of the first executive 26 director appointed pursuant to this paragraph, the executive 27 director shall be subject to section 8A.412 and all provisions 28 of chapter 8A governing competitive recruitment, examination, 29 and selection processes for classified employees. The 30 commission shall oversee, evaluate, and provide direction 31 to the executive director concerning the operations of the 32 commission. The executive director shall be selected primarily 33 for administrative ability and knowledge in the field, without 34 regard to political affiliation. The commission may shall 35 -1- LSB 5529DP (3) 91 sb/js 1/ 4

S.F. _____ H.F. _____ employ additional personnel to fulfill its responsibilities as 1 an independent agency and carry out duties of the commission 2 as it finds necessary. 3 Sec. 2. Section 474.2, Code 2026, is amended to read as 4 follows: 5 474.2 Certain persons barred from office. 6 A person who is employed by any common carrier or other 7 public utility or who owns any bonds, stock, or property in 8 any public utility shall not be eligible to hold the office of 9 utilities commission member or chief operating officer of the 10 utilities commission executive director . A member or chief 11 operating officer executive director who enters into employment 12 with any common carrier or other public utility or who acquires 13 any stock or other interest in any common carrier or other 14 public utility after appointment as a member or chief operating 15 officer executive director shall be disqualified from holding 16 or performing the duties of the office. 17 Sec. 3. Section 474.8, Code 2026, is amended to read as 18 follows: 19 474.8 Office —— time employed —— expenses. 20 The utilities commission shall have an office at the seat 21 of government. Each member shall devote the member’s whole 22 time to the duties of the office, and the members, chief 23 operating officer executive director , and other employees shall 24 receive their actual necessary traveling expenses while in 25 the discharge of their official duties away from the general 26 offices. 27 Sec. 4. Section 476.51, subsection 5, Code 2026, is amended 28 to read as follows: 29 5. Civil penalties collected pursuant to this section from 30 utilities providing water, electric, or gas service shall be 31 forwarded by the chief operating officer executive director 32 of the commission to the treasurer of state to be credited to 33 the general fund of the state and to be used only for the low 34 income home energy assistance program and the weatherization 35 -2- LSB 5529DP (3) 91 sb/js 2/ 4

S.F. _____ H.F. _____ assistance program administered by the department of health and 1 human services. Civil penalties collected pursuant to this 2 section from utilities providing telecommunications service 3 shall be forwarded to the treasurer of state to be credited to 4 the commerce revolving fund created in section 546.12 to be 5 used only for consumer education programs administered by the 6 commission. Penalties paid by a rate-regulated public utility 7 pursuant to this section shall be excluded from the utility’s 8 costs when determining the utility’s revenue requirement, and 9 shall not be included either directly or indirectly in the 10 utility’s rates or charges to customers. 11 Sec. 5. Section 476.103, subsection 4, paragraph c, Code 12 2026, is amended to read as follows: 13 c. A civil penalty collected pursuant to this subsection 14 shall be forwarded by the chief operating officer executive 15 director of the commission to the treasurer of state to be 16 credited to the commerce revolving fund created in section 17 546.12 and to be used only for consumer education programs 18 administered by the commission. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill relates to the administration of the utilities 23 commission by creating the position of executive director 24 and modifying the duties and titles of the chairperson and 25 executive staff. 26 The bill specifies the chairperson’s duties regarding 27 presiding over meetings and proceedings. 28 The bill replaces the position of chief operating officer 29 with executive director, and makes conforming changes by 30 replacing references of a chief operating officer with 31 executive director. The bill states that the commission 32 shall appoint the executive director by a majority vote, 33 the executive director will serve at the pleasure of the 34 commission, and the executive director will be overseen and 35 -3- LSB 5529DP (3) 91 sb/js 3/ 4

S.F. _____ H.F. _____ evaluated by the commission. The bill also explains the 1 appointment procedure and criteria for the new position. 2 -4- LSB 5529DP (3) 91 sb/js 4/ 4